All Forum Posts by: William Kyle Walker

Hi Allen, 

We have had a few different structures. The noninformative answer is,  All the items you mentioned are negotiable and change for every deal.

We have done equity splits based on the capital that each group invested. Then we split the fees that the deal generated based on who was doing most of the work. The majority of the developer fees went to the group that was doing the project management. The bulk of the loan guarantee fees went to the partner with the larger balance sheet. We each split the deal pursuit costs and earnest money evenly, so we split the acquisition fee down the middle. 

Hi Bobby, Is the long-term rental loan program that you are referring to something your company does? what are the terms like / how is it structured? 

Has anyone found a way to get financing to expand their Airbnb business? If you have 2 or 3 locations that are cashflowing and you want to get your 4th location. How are you financing these?

Especially if you are doing rental arbitrage.

I came across a fund that is providing this growth capital but wanted to hear about other sources. 

@Josh F. Yes, I’ve closed over 100 commercial leases in Dallas, San Antonio, Houston and Atlanta.

How many spaces do you have for lease? If you have a bunch of spaces you will want to pay market rates to maintain broker relationships. But if it’s just the one space you can negotiate their commission harder. Usually the two brokers split the commission.

The important thing is finding a good tenant though. Especially with recession headwinds coming.

@Josh F. 6% and 1.5 the first months rent in total commissions is high. How big is the space? If it’s small they need to make sure it’s worth their time. If it’s large 10,000sf+ then make your agent negotiate the commission. Actually, either way make them negotiate

Are their many available vacant comps in the direct area? If the tenant loves the space and doesn’t want to go any ware else you have the negotiation leverage in your favor.

The only way I would just pay that high is if it’s a high quality credit tenant. Like someone that is publicly traded with a strong guarantee. You could consider it because it decreases your risk of them moving out early.

@Josh F. Is your property in Chamblee GA? You can expect to pay a commission to the Tenant rep of first month rent and 2% of the total lease term. You can also pay yourself 2% as the landlords representative.

Make sure to negotiate paying them out over the term of the contract. I have paid brokers 5 figure checks before just to have the tenant “blow out” (move out without notice) six months into a 5 year contract.

I've met the owner, and my friend has 2 padsplit properties. He said they are killing it compared to regular SFR rentals. You can hit the 2% rule if done right. I'm looking for a property now and plan to use them.

Awesome, Good to hear! 

I Haven't, But that is a good idea thanks. 

That can be negotiated, Its called a buy-sell agreement.  The investor just has to determine if their willing to give up the upside potential. 

How is it coming along, do you have a closing date set?