Edgar A., FL

(JV & Fund Manager)

1. When working with venture capitalists/hard money lenders who seek higher returns than the 6-8%, depending on the numbers, how would you structure Class C notes;
2. 8% for the first 5 years + an agreed return upon refi or sale of property within 5 years+?

2. Edgar emailed in a deal he would like a review on. I just resent it to you. He wants to make sure all details are CONFIDENTIAL.

I have shared the information in confidence between the both of you for guidance and yes, once the deal is complete by all means you can share. The variable to the success of the deal is in the easement which falls into government/private entity.

3. What buyer would be interested in purchasing a NNN land lease deal with a corporate guarantee, 40yr term and $24mm yearly lease? An at what cap rate would interest a buyer?

Don E., CA

CA Deal Review. I emailed it to you for review.

Danielle E., CN

How do you calculate net operating income in multifamily real estate?

Juan Manuel Ortiz., TX (JV)

I’m considering putting a high-traffic property under contract, with 50,000 cars/day, a drive-thru, and strong neighboring tenants. However, there’s an environmental issue the broker mentioned. The property is affected by an off-site Recognized Environmental Condition (REC) from a nearby site and is within a Ground Water Plume, listed in several environmental databases.

Despite this, the seller’s bank reviewed the Phase I Environmental Site Assessment (ESA) and approved the loan. The seller also claims this issue hasn’t impacted the daily operations of neighboring businesses like Taco Bell and Arby’s.

Could this environmental issue affect our ability to lease to a national tenant? Should I continue with this deal?

Ishon M., FL (JV)

1. How should a personal guarantee be written on anloi?

2. What is the right balance to follow up without coming across as needy or desperate? I also noticed some tenants don’t require as much follow up 

3. What is the proper or legal way to get paid outside of closing? Do you use a referral agreement?

4. Do you need to put each property into its own llc or not?

5. What are some good seller financing strategies and when to use them?

Ernie K., NJ

($97 Try Before You Buy)

1. Experts are saying that challenges could lie ahead in commercial. The higher the interest rate environment appears to be here to stay, and office vacancies continue to climb. Do you think that office conversions to apartments is something to look at? Would all markets work?
2. “The move toward smaller concept stores is a key part of retail’s evolution,” is a concept you have discussed. Can you expand on this?

Fred S., CA (JV)

I put in an offer on two Kentucky Fried Chicken properties. 

The broker tells me that both properties are under contract. I have tried to get him to tell me what price the properties are under contract for, and he tells me that’s that between the buyer and seller. 

Please advise. 

Max G., CO

1. Do you see a potential comeback in commercial real estate? The question for you is: Have cap rates risen enough, or is cash income high enough to justify the risk?
2. What are the questions I should ask myself before buying commercial or residential real estate in today’s market?

Tim S., NC

1. What key questions for a buyer of a hotel in a mixed-use project?

I’m looking in TN.

James B., MN

1. I think the industry shakeout is coming full force. It’ll be a completely different landscape in 2025. Those who tough it out will be the pros providing value and will have a much bigger piece of the pie. I think home prices will continue to rise, its supply and demand, not agent commissions. What are your feelings?

2. I have been hearing this phrase a lot lately. Will someone who feels like they have a firm grasp on all it entails please take a shot at unpacking it?

3. What insights on today’s market can you share? (CRE or residential)

Kier M., MI

Sorry I can’t make the call, I will be showing a home on Saturday. I’ll catch the recording.

It’s a popular headline in the realtor magazines that the drop (slight) in the rates in the coming weeks will impact or effect the sales across the US. What are your thoughts on this? I have 2 properties to flip in NJ and I took them off market because I was getting no offers. I even tried renting, but the rate I was getting traction with won’t cover my cost of rehab, mortgage and expenses. Should I put them back on market now or wait until the day the drops break on the news. I am very concerned that I will get stick with these multi familydeals and I can’t keep holding them. Please advise on any creative solutions before I run out of money. Which I will- very soon.

FINAL TOPIC IN CLOSING:

Explain how to make sound decisions in life and business.