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StorageAce
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Mobile Home Park Mastermind
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6 contributions to StorageAce
8d ā¢Ā
Rude broker
I asked three years of p&L and questioned why there wasnt any utilities, marketing, internet phone expenses, etc? However the broker didnt send me what I asked, instead he litterly told me, use number xx for income, use xx for expenses, and vacancy is xx. P&L was same for past three years. If i want to submit offer then contact him. I may do a back of the napkin underwriting, however how can I get a loan based on such a limit information?!
0 likes ā¢ 4d
Sometimes the brokers donāt actually have the info. 3 years of P&L is nice but you probably wonāt get that to make an offer. 1 year is generally sufficient. You will get 3 years in due diligence. If yoy can get the full unit mix and rent roll, you can generally recreate your own operating expenses to figure out the NOI based on how you would operate and base your offer on that. With the above said , broker does sound rude.
9d ā¢Ā
Environmental
For those who've acquired properties with prior auto body/gas station history ā did your lender require a current Phase I or Phase II, or did they accept older reports with a reliance letter? Has anyone successfully gotten an environmental firm to issue an updated reliance letter on a 13-year-old report rather than doing a full new Phase I or Phase II? What did that cost and how did it go over with the lender? What else should be considered before acquiring?
2 likes ā¢ 7d
@Caitlin Lombardo I would refresh it. If you can get a reliance letter that would be awesome but even so itās been 13 years. A phase I shouldnāt be too expensive - a few thousand dollars at most. Contamination can be incredible costly to deal with - assuming you can even fix the issue. There isnāt a national standard for fixing contamination issues either, so it makes it much harder. Iāve worked on one asset that had environmental issues and seen others that canāt sell or get a loan due to them. Getting a phase I (and phase II if needed) is a small price to pay for the prospect of what could have changed and making sure you have the appropriate insurance policies in case there is an issue. If you need to do a phase II; thatās when you can open it up with the seller and negotiate they pay or cost sharing. You can negotiate the seller pay on a phase I, but more then likely as noted above, your lender will require it anyway - so itāll be your cost. I suspect your lender wonāt want to depend on a 13 year old phase I either.
8d ā¢Ā
Lease Q
Anyone deal with a seller unable to find the leases for their tenants? If so - dealbreaker? We will be getting everyone on our own new lease so personally don't think its that big of a deal but curious others thoughts
3 likes ā¢ 7d
will the seller let you try to put tenants on leases before closing and during your DD period? If so, make it a condition of your diligence period ending be that you must have xx% of tenants on leases. This way, it protects your money from going hard. Iāve seen this done before.
Feb 12 ā¢Ā
How to qualify a lead in 20 mins?
A bottleneck for me is keeping up with too many leads to underwrite and make offers on. My VA is bringing lots of leads, but I can't keep up with them all. I spend too much time underwriting a deal, estimating expenses, doing a market rate analysis, figuring out what value add there is and where an offer would make sense for me and it doesn't allow me to keep up with all of the leads coming in. How can I spend 20 mins instead of 2 hours determining if a lead is worth diving deeper into? I use the range finder to quickly come up with a rough value of the biz based just on 35-40% expenses and applying a cap rate, but going one step deeper (but not as far as a full underwriting), what are others doing? I do some quick math using their revenue, applying a quick 35-40% expenses and then applying a 8-10 cap rate to give me a very rough value, but going one step deeper (but not as far as a full underwriting), what are others doing? Do you treat these all differently or qualify them differently? - on market vs off market deals - How do you determine if a deal looks like a deal you could wholesale - a 3-5 year optimize and sell - and a buy and hold?Ā
1 like ā¢ 23d
@Dan Wentzel correct. Up or flat. Down might mean a declining market or itās a market with sophisticated operators using ECRIs which I try to avoid.
0 likes ā¢ 20d
@Tommy Xaysongkham hard to answer without seeing the facility! I also donāt want to get too specific as I donāt own a facility yet. I work in real estate acquisitions at my W2 and use those skills. If youāre willing, and you DM me the address. Happy to take a look and tell you what I see. But generally speaking, if your on a main county road-I like that. The income is low but your trade area could be wider. So that is something to keep in mind. But main road is good because it means free advertising. My next question is - where are the renters from. Are they just in the local area or bc youāre on a main county road are you pulling from other areas? This will help you comp.
Sep '25 ā¢Ā
Case Study Video Series
Just discovered Dave's Case Study video series... this stuff is GOLD and likely the majority of your questions related to finding facilities, underwriting, operations, deal negotiation, follow up, etc. can be answered in these series. CHECK THEM OUT!!
0 likes ā¢ 25d
@Dave DeMink can you post the link to the case study series? I donāt see how to navigate to it. Thanks!
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