All Forum Posts by: Yuhanna Sherriff

Here is the skinny:

Just acquired 54 Unit Reo for $400,000.

In the process of inquiring on potential partners for renovation.. Approximately $180K to $200K

How should I structure this deal? As a limited partnership offering (equity) or mortgage (lender)

Here is the quick proforma if your curious. Estimated rents taken from HUD fair market value for the city and county.

Located on 2.9 acres, 37K sq. feet are rentable

25 1/1 - 532 sq feet @ $506
5 2/1/ - 615 sq feet @ $580
24 2/2/ - 888 sq feet @ $623

1st YR Proforma
Gross Revenue = $366,024
Vacancy Factor (15%) = $55,012
Operating Expenses (47% of Effective Gross Revenue) = $148,722
1st Yr Stabilized NOI prior to Reserves = $162,960

Estimated Value based on 10% CAP rate = $1,631,184

Primary exist strategy: Sell
Secondary exist strategy: Refinance to long term debt

As a side note, I have a loan commitment for $280K. i am putting 30% of the acquisition from my own pocket. interest rate is 7% for a 12 year term.

Thanks for your help

Gregory,

I did call him twice. The first time when he was away on a trip. the second time this week. He told me he apologize. He visited our company website and reveiw our hotels.

He sounded really excited. His wife is ill and he had to take her to the doctor. We have scheduled a meeting in two weeks because i will be out of town next week.

:)

thank you all for your encouragement. I will let you know what happens from here.

YS

Touche'. That went right to the heart of it. I can't grow my business from its current level without some backbone. I don't believe it is that I don't have any backbone, I just don't want to mess up the relationship.

You made a great point. Need to act like I bring value which I do. I currently own large projects.

Stop being a wuss (to put it bluntly) and go for it.

haha !!!

I will keep you posted and thanks for the upliftment. :D

I gave him a call. He was in a boat house in Minnesota. Won't back for two weeks. Told me to call him then.

this is exactly what i said:

"Robert, This is mr. sherriff, Sean's brother-in-law. Is this a good time to talk?

Yes. kinda of. I am on a boat house in Minneapolis. I won't be back until the week after next.

Okay. I will talk and see you then. Take care and enjoy yourself

Thanks"

And that was it. i will call him in two weeks. I was really nervous but the more I think about it. What do i have to lose?

Thanks for all the encouragement. I will let you know what happens in two weeks.

What about my introduction? Do you think it was okay? I don't want to sound too pushy.

I want to say thank you all for the encouragement. I am going to take the first step tomorrow and give him a call. He currently has approximately $3,000,000 to invest. Not only that, his neighbor also has a substantial amount to invest. This is why it is such a big deal to me. This could take my commercial real estate to the next level. My current commercial assets are worth more but first time having the opportunity to partner up. i guess i was scared of the potential responsibility with someone's else money.

I will let you all know what happened. i will pray tonight and move forward.

Thanks

thanks for the reply Greg. I am still anxious about the follow-up conversation. Should i send a letter or just make the call?

God, I do not know why i am so scared. I think it is the fear of rejection or not meeting their expection. I don't know.

Thanks a million greg

Need help. I have a potential private investor, my brother-in-law wife father. I was at his granddaughter's birthday party at his home and we talked. We talked for well over 40 minutes about investing.

He told me he has substantial amount of money coming online due to the sale of his ranch. I currently own some commercial investments, a sizeable amount.

i am basically scared. I have never approached or follow-up with anyone regarding private financing or equity ownership. I own all my investments 100%.

what should be my next step. he says he wants to talk to me further over a round of golf? Should i send a letter or just call him.

HELP

Thanks

Hello All,

Recent to the forum. This is not a solicitation but need of advice. Our firm was presented with two possible great acquisitions of a multifamily property in Texas. Purchase price are $2.2 million and $2.3 million respectively. The properties are both free and clear and the owner is willing to seller finance.

What are some of my options? I can give you specifics of the transactions if you wish. Our exit strategy is to refinance the loan within 2 years once our cash frees up from our earlier deals.

Should we go hard money, master lease, etc? I am not familiar with the different creative strategy. Also, we currently have $3 million in equity in our portfolio.

Thanks

Once again, I apologize if this is not the right forum.

Yuhanna
Garrison Capital Group

Jon,

To qualify. The value of the properties are $9.2 million with $6 million in debt. As condition of loan we were required to inject additional capital to secure the loan. We pledged $100K in CD's and $500K in Stocks. They will be release in one year per loan agreement.

i hope that clarifies it. We are looking to acquire additional commercial properties. I am not too familiar with different creative strategies because in the past we normally inject 35% equity into each deal and wait until we sell.

Now we are attempting to leverage our portfolio to grow our business. We are in the process of establishing equity partners but are somewhat resistant to have multiple partnerships. It is only myself and my cousin as owners.

If you have $3 million in equity on two properties and your trying to acquire another property, how do you best position yourself?

Our funds are tied up and will be available for full purchase in about a year and half. They are primarily in CD's and stocks that are pledged to the loan.

The properties are hospitality properties but we are trying to diversify to either apartments or self-storage.

The bank appraised aggregate value is $9 million less $6 million in debt.

Any help is appreciated. Also, where can I start looking for good acquisitions for the apartment or self storage opportunities. I know about hospitality but not too much about those.

Yuhanna
Garrison Capital Group
[EMAIL REMOVED]