All Forum Posts by: Zachary Curry

So many questions.

Is it manufacturing suits, office space, retail, etc.

There are many factors but mostly you look at sustainability.

How long are the leases, would you be able to cover all expenses and pay yourself?

If the leases are shorter and expiring could you structure a lower base rent attracting tenants with profit share in your favor that would cover your bills and allow you to capitalize on the type of risk you are investing.

What type of commercial property really dictates the answer to this question, email me or post clarification and I will try to provide a narrowed answer.

This is where your agent adds thier value.

Like in downtown Miami the DDA would be the contact agency to coordinate. There are agencies that work to attract business to particular areas I am sure West Palm is the same, locate the local agencies that already have a rolodex of potential buyers and see if you can structure a deal to intice these businesses. The agencies might have the authority to provide tax abatements for your potential buyer, bringing jobs to the community and ultimately selling your property.

So when reviewing strategies, we must first evaluate demographics which are the indicators of what the property potential could be.

Source: Washington-demogrphics dot com

Population is decreasing and the median income is slightly rising.

This is a market indicator that growth equity is not going to incur at such a rate to create increases in rent to offset the opportunity to sell. Since you have already lost 100% of the income to debt servicing then create a trade off in your calculations.

Charge a lower option fee and calculate your monthly costs into the purchase price plus a premium.

Otherwise you have invested in this property to break even, as there is not much difference between what you owe in conjuction with what you loose each month relative to the incurrance of equity.

Sale Price - (You loose x per month plus x amount owed) + Profit Premium = Was it worth it?

I created web sites for property managers for a while and they readily available.

Wix.com is an easy to use interface and or workpress through godaddy etc are very affordable, but not as easily customized. Then simply add an ACH interface which should you can find for $.55 per transaction. This way you can advertise have tenants submit work request, accept payments, and create a monthly schedule for rent rolls, etc.

Most software will charge you monthly fee, a fee for transactions, and a setup fee.

This will allow you to grow much faster and minimize overhead.

George,

I love this question!

You are evaluating national average which is the equivelent of identifying shale to deep sea drilling. Costs and ROI vary, same as New York to Kansas. Supply and Demand.

Additionally when evaluating stocks from a 50 day average over 200 day average and seeing buy markers in reference to the VAR, RE has a more predictable trend.

If you really would like to maximise profits then use RE as copper. Once you purchase a cash flow positive property (commerical or otherwise) leverage to purchase additional commodities, evaluating the growth in equity conversly to debt servicing costs to increase your overall portfolio with non-correlated risks.

I am working on a VBA to aggregrate this comparision and to draft strategies.

Short answer: find a blending of both, while RE is has less liquidity it is much easier to encumber for lines of credit, etc, while maintaining your ownership, tax benefits, and income potentials.

Most property managers come prepared with thier own agreement and they have become standard in thier favor.

I would recommend creating your own inclusive of the following:

Performance clause, meeting or exceeding set occupancy rates

Performance clause, meeting or exceeding market values for rent in the area based from comps

Costs & Fees, pay a fixed rate but have the property manager cover costs that should have been fixed, meaning if the water bill was higher increasingly over time and they didnt call a plumber before a major leak they or thier insurance should cover the costs, not you or your insurance.

For each clause incentivise increasing through monthly share of the collected rents, and ultimately you will have a top perfomance property well maintained and an active property manager. Adversely if they do not meet these targets the agreement is voided and you are able to pursue other managment. 

Someone who knows thier work ethic and ability will quickly agree to terms because ultimately if they believe in themselves they will make more money with you.

I would draft a proposal and float it around to various property managers and see the occupancy rates and asking for rent they recommend.

To achieve maximum results, you must exert maximum effort.

I love what I do, and working with clients over time developed my own tools and recently realized it would do a greater good by sharing these than just reserving them for my clients. My background is in consulting in various businesses but I Love Real Estate, just like everyone else here.

No books, no seminars, no expensive programs.

FREE Multifamily & Apartment Cash Flow Calculator

It is located on my personal website, and you can contact me with any questions.

Best Regards,

Zach

Yes you can. Tomorrow (Monday) contact a Title Agency in the are you are looking to work, they should give you an escrow account number. Once you begin a transaction you will be able to provide your account information and at closing you will be wired the money. If money leaves the country into another country, re-patronization taxes do occur. Meaning if you make money in Spain and send it to yourself in the US you loose money, its meant to ensure equity isn't leaving the country it was created it. This works both ways, US to Spain, etc. You would have to contact an accountant knowledgeable in this topic.

Short answer: Yes, you can have your profits deposited in your bank.

Well you could set up an S-Corp and keep most of the profits in the U.S. and pay yourself a salary or pay to have the money sent to you in full, either way taxes are as sure as death. Do you have a title company that you have a relationship? You will have to build trust, it is everything in this industry. You can also assign a legal representative under property management etc, but with all services comes costs. Be prepared to Skype and over produce documentation showing you are, who you are. Also technology is incredible, Skype is a great tool to utilize and acts as a face to face with service providers such as title. Technology like fax, email, docusign, etc made this world a lot smaller.

At the end of the day a property is what someone is willing to pay for it.

Do your research, active and sold comps with comparison of upgrades etc and provide an offer you are comfortable with understanding your risks. Take the time to understand the sellers situation, and work with them to provide a situation everyone is happy and you can make money. If the seller is unreasonable move on. Nothing ventured, nothing gained.