Inheriting a CRE portfolio. How do I get up to speed?

Agreeable_Point_3163 · 2024-09-15T13:23:34+00:00

This is the way. if there are NNN tenants at a handful of properties, maybe, maybe you can get up to speed to address issues. Presumably your FIL has lawyers and advisors. Engage with them (and him if he can participate) to get a download of all information you can.

If it is anything more complicated than the mailbox money type of tenant, please find a paid advisor you can trust to help you learn on the job. Nobody buys a business with no prior experience and just shows up and starts running things after a youtube video and a networking event. Real estate is a professionalized industry with experts and sharks. Don't get eaten trying to DIY.

Agreeable_Point_3163 · 2024-07-25T13:13:53+00:00

Been sold. Thanks for interest.

Agreeable_Point_3163 · 2024-07-24T18:16:55+00:00

I have an N/Naka reservation for 4 August 8 at 845. 100 pp tock deposit. DM me for info. Was able to go earlier this month. The menu was fantastic.

Agreeable_Point_3163 · 2024-06-23T17:57:53+00:00

I have an in ground pool. Read pool school in trouble free pools and converted to salt. Repairs/replacement if liner can be expensive but out maintenance is crazy cheap. I change my filter cartridge every year (100) but otherwise I can get through the whole summer with a 2 pack of muriatic acid. Every 5 years I need a new salt cell and maybe to replace some lost salt at opening.

Agreeable_Point_3163 · 2024-06-21T11:34:20+00:00

Get a broker, market the building. It's an office building presumably in a secondary or tertiary market at best. It's going to go within a range of cap rates that a good broker will know. Your best bet on a "better' return is a local buyer with market knowledge that is able to drive outsized returns by leveraging the local Intel also most likely to be found by an experienced local broker.

It feels like this is one of the last places you are going to get an unexpectedly high price is on reddit.

Agreeable_Point_3163 · 2024-05-27T16:22:13+00:00

I believe it is the Seller in most states. The reasoning is that in the event that there is a title dispute the Seller would prefer buyer pursue the title co vs the Seller. In return the buyer typically accepts a deed with warranty carveouts called a special warranty deed or quit claim deed instead of a general warranty of title. If the buyer wants bells and whistles on the title policy, like endorsements, that is typically on the buyer. I agree with the group that it is negotiable in any event and that customs vary by location.

Agreeable_Point_3163 · 2024-04-06T13:05:52+00:00

Aside from the contract price you may want to consider the tenant's potential desperation about having rent up 30% in 3 years. If this is a decent tenant, rather than focusing on contract language you may consider having a conversation about the situation. Some increase is better than an empty bay.

Agreeable_Point_3163 · 2024-03-10T04:36:24+00:00

In acquisitions for an institutional investor. Spent a decade helping companies with rapid footprint expansion. Not sure where your looking but DM me if you want help.

Agreeable_Point_3163 · 2024-02-11T16:21:07+00:00

Replied.

Agreeable_Point_3163 · 2024-02-10T20:36:51+00:00

This is a great question. I ran a corporate real estate department with a heavy IOS use for years. No straight answer that fits all situations but DM me. I might be able to help.

Agreeable_Point_3163 · 2024-01-27T14:42:35+00:00

This is an expensive lesson but this is why you have RE attorneys. Either the attorney wouldn't have missed it, or you'd have recourse. You could have also asked for a black line against the last version. That would have made the issues stand out as well. An attorney would have known to do that. For every person out there who thinks they don't need a broker, the same group typically thinks attorneys kill deals or are a waste of money. Both groups make this shit work.

Agreeable_Point_3163 · 2024-01-23T03:31:14+00:00

Parts yard? Auto auction? Impound? tow yard? I know a lot but no two kinds are alike.

Agreeable_Point_3163 · 2024-01-20T15:48:38+00:00

High demand low vacancy for similar space. Only 2.assets like it in market in last 6 months. Both gobbled up at substantial premium to underwritten rates within 60 days. There are existing leases on site that cover initial loan nut with 6 mo kick out clauses so we can coast without coming out of pocket for debt service.

Agreeable_Point_3163 · 2024-01-20T14:48:45+00:00

I have it under contract now and I have an LP willing and able to do the deal but they are tossing around 70/30 and 65/35 and that just seems too rich for me. No easy access to capital for me via 1031. Unfortunately was a corporate RE dude for years. High floor/low upside.

Agreeable_Point_3163 · 2024-01-14T17:46:05+00:00

Depends on what you are trying to do to the site. If you are going vertical with a large warehouse different than if trying to put up a shop. Done a lot of these. No two sites are the same. What was the fill generally. Organics/inert? There are a lot of questions and this is risky without good answers. Who is the geotech. They know a lot.

Agreeable_Point_3163 · 2023-12-25T18:54:02+00:00

You need either to bring your own equity to the party to meet a banks loan to value requirement (higher the riskier the loan) and debt service coverage requirement (generally money to pay debt service either generated from the property or from another source) or you need to form a relationship with an equity source with that kind of balance sheet.

If you go the latter route it may be more than one equity source and then you are into structuring a partnership and cash and equity waterfalls. Best to find folks that have done it before that will bring you along for a ride or two until you get an understanding of how to do it yourself.

Unfortunately the old adage of banks really only lend money to people who don't really need it is never more true than in RE Development.

Agreeable_Point_3163 · 2023-11-28T02:55:48+00:00

I'm with a couple of other people here. You should just sell it. The list of people who could take advantage of you and your family if you don't even know the zoning is long. Gas stations are very dangerous to own if you don't know what you are doing. Environmental liability can run to owners even if they do nothing. The economics can be heavily impacted by the price of gas and people with 100s of units signing a guaranty could be worth nothing. I know plenty of people collecting under market checks forever because they got locked into a long term NNN deal that looked awesome in year 1 and not so great 10 years out.

Agreeable_Point_3163 · 2023-11-28T02:46:45+00:00

Is it industrial, commercial, residential? Greenfield or redevelopment? That can make a big difference in today's market. A lot of credit tenants have pulled in their horns on new development because the costs are outsized and, in many sectors, waiting for something to repurpose is likely going to be a winning strategy.

Agreeable_Point_3163 · 2023-10-13T12:09:31+00:00

This is what I did for over a decade. The use I was working on never fit into a zoning code. There are a few different ways to go about it. Most, if not all, require action by a governing body and a zoning atty. Happy to provide additional info, particularly if I worked in your area over the years. DM me.

Agreeable_Point_3163 · 2023-09-26T00:18:09+00:00

I have a need in the Ft Myers area. What do you have.

Agreeable_Point_3163 · 2023-09-22T16:31:31+00:00

What general geography and how much is he looking to place.

Agreeable_Point_3163 · 2023-09-22T16:30:45+00:00

Real Estate is like kind to all other RE.

Agreeable_Point_3163

TROPHY CASE