Forgot to deduct your taxes and insurance cost at the end, I think you said less 15%. All good still a great investment especially for land only. Signing in from ATX Austin Texas, Blessings
Yeah I used 15% back of the napkin, but my taxes and insurance are practically nothing because of the basis and premium. Is there IOS demand in Austin?
Thank you so much for helping yourself out and the surrounding neighborhood. I can speak on this because my office is a few buildings away. We have to pass this site 4 to 5 times a day. I have been working in this location for almost 19 years. It never was like this. Good luck dealing with these shady people piling up cars on the street to ship internationally. 👍
Wait can come one clarify this for me. 350k in, refinanced at 450 and then took all his cash out and was left with 100k. I’m just a bit confused on the exit part. Much appreciated
The exit plan is to refinance only 350k, I could essentially take out 450k but the debt payment would be more than I want. The refi money is tax free also because its not earned income its debt. This is the arbitrage of debt in real estate.
Why don't you just take the rent for 4 years that will give you back your initial investment. Now I have one question how do you determine the bank is going to give you that amount of money without an appraisal? Where I'm from when you get a commercial piece of property the bank goes by what the appraiser says not how much money you make on it. And I agree some appraisers will give a lot of value to the income but on raw land they generally are pretty conservative sometimes. In California where you live will a bank give you a loan based on the income of the property and I understand how the cap rate formula works and everything like that, Or do they go by the Go by the appraisal? Anyway you did a great job, but I have a question why did you put the retaining wall up and raise the elevation of the lot did you do that for security reasons so your fence would be better protection for the lot and the recycling center?
Great questions. 1. I have a lender that will base the value form income. I advise you build relationships with lenders that understand the vehicle your investing into. This can take time. 2. I explained in the video that I left the existing dirt on site so I had to grade it level which left it about 3.5 ft above grade.
@@CommercialAgentAcademy I understand now when I watch the beginning of your video I thought the property was at ground level with all the homeless encampment there I couldn't tell what the grade was. Yes I understand about making relationships with lenders I do that quite often The problem I have a lot of times is I'll have a good relationship with a bank and then some other bank will come in and buy them or merge and the new bank and I don't get along well, I lost out on a million dollar deal because of that one time. The banks where I live or so focused on the new rules and regulations in commercial lending since the 2008 real estate disaster. I try to deal with a smaller more community-based bank instead of a large corporate bank I seem to be able to get more done that way. I had this one bank that I could practically do anything I wanted and they got purchased by another bank and as I was told by the bank president there numbers are a little more sterile than the previous bank was, meaning they don't like to take a chance on anything. Well good luck with everything You sure hit it out of the ballpark with that lot no doubt about that You didn't have any major construction work to do You didn't have to get bogged now with building permits and engineering and all that stuff.
@@CommercialAgentAcademy at one time had several residential rental houses I built most of them brand new and then I rented them then sold them a few years later and would build another one. At one time I had seven houses but the residential rental was driving me nuts people tearing things up and not paying rent on time. So I sold all my residential rental property and built a self storage facility. I built the first one in 2013, purchase the adjoining property doubled the size of that facility, and in 2021 bought another piece of property and built the third facility. I will never own residential rental property again I only want to deal with commercial property. But the problem is with interest rates being so high by the time you buy a piece of property and put any money into it numbers are not adding up especially if your project is over 2 million. But when you start building commercial property the hoops you have to jump through and all the engineering you have to pay for and all the state regulations can really make the budget add up, but once you get it done it works good if the numbers are correct. Again that lot you did out there was perfect You had very low overhead You don't have anything to tear up and you're making excellent rent I commend you on that.
That’s awesome brother. How would I get started as a 45 year old father of 6? I’m striving to change my family’s lives by transitioning from an employee to an investor?
that was a good one , if your cap is 6 - 7 than the property would be worth less in terms of getting money out , but it is a banger. maybe you want to help me build a home we can spend 250k all in, and house would be worth 349, I can get them done in 3 -4 months. potential rent is 2,700 a month. but we can turn around and make 70k each O.o?
Thank you! I don't touch residential champ. Also ground up construction I stay away from just because the headache with city. Where is this deal at I can pitch it to another investor.
@CommercialAgentAcademy i got master plans already submitted, so it my permits are over the counter. I own a couple properties in a multiplex area, i just dont have funds to buils 4 plexs
@@realf1rme Its considered industrial outdoor storage. If you live in a metro area with a port nearby there will be a market for it. Less competition also.
Yes, he lost 1/3 of the usable land by not removing the unnecessary dirt (entrance hill) for an extra $25K upfront but would increase the monthly lease rate had the dirt been removed.
@Nova-m8d i bet you that you a fake professional who never done this in yo life but have all the shhhh to say. Let him win. If you could've done better, why didn't you do it. Stop hating
@@bpcinvest Its usually these type of folks that get all worked up, but never picked up a hammer and don't know 2 from 4 lol. Appreciate your support. Lets keep growing! People like you make this world a better place champ!
It is in vegas. My primary residence has 1.2 acres, I have a separate driveway on the side of my property that leads around to the very back and I have about half an acre of vacant dirt I rent to people to store rv’s, smaller trucks, etc. long term storage I bring in about $1800/mo and I have a few more spots I can fill. At capacity I can prob generate $2500ish and get messages daily on my fb marketplace ad from people wanting to utilize the space.
You should have went ahead and paid the extra $25K to remove the unnecessary dirt because 1/3 of the finished property (entrance hill) is completely unusable which means it's going to have a lower lease rate per sq/ft.
Approximate dirt removal was $100,000 not $25,000. The sloped entrance is actually usable for large trucks to park overnight as well. We got full price on this lease. If it was 25k to remove all dirt I would have done it but I was able to complete the entire project for the same price as just the dirt removal. All things considered, I am happy with the decision.
@@Nova-m8d There was more dirt than anticipated. Easily 100k to remove it all plus labor. But yes these are tough decisions one needs to make when going through the cap ex process. Tenant is happy with site and thats all I care about. PAY ME!!!
@@IntegraDIY champ, that’s more savings than the average American. You should be proud of yourself, simple solution is to find a deal where the seller can finance and needs/wants to sell. Make sure the property cashflows enough to cover the debt payment along with operating expenses. Your goal should be to still have income after those two expenses. If you believe you can do it, it’s coming your way. Receive it!
Turned out to be a 100k of dirt removal once it was all set and done, not including grading, paving, fencing, gate, ect. It would have essentially added $80-$100k. All things considered the value is in the eye of the beholder, tenant are happy with site and paying a premium. Tough decisions that need to be made when investing in RE. What types of deals are you investing into currently?
I thought so myself before going that direction but we left it with enough grade so that our tenants can leave their semi truck parked there to maximize space.
Nice job! I gotta say, this looks more lucrative than my residential rentals! Got me thinking on this now. Well done.
Commercial real estate poses less competition which create bigger returns form my experience.
Congratulations dude!! You deserve it, had a vision and followed it all the way through.
Without a vision we perish!
And yes this is the magic of real estate! Invest in more real estate.
Rinse and repeat!
Facts!
The raised lot with fence because of the extra dirt almost seems like a benefit. 👍
I thought so afterwards myself, gives it another level of security.
In case someone steals the rubbish??
You are Kick Ass! Keep going. Keep sharing
Thank you for the support!
Incredible. Very well executed. Thanks for the information, my guy!
@@Juan71597 thank you!
very nice deal. most people would have not given that plot of land a second thought.
Forgot to deduct your taxes and insurance cost at the end, I think you said less 15%. All good still a great investment especially for land only. Signing in from ATX Austin Texas, Blessings
Yeah I used 15% back of the napkin, but my taxes and insurance are practically nothing because of the basis and premium. Is there IOS demand in Austin?
You did great man ! Im happy for you that was a smart deal and way to use the dirt to your advantage..
Thank you! Yes, need to be able to improvise in this business for sure.
Thank you so much for helping yourself out and the surrounding neighborhood. I can speak on this because my office is a few buildings away. We have to pass this site 4 to 5 times a day. I have been working in this location for almost 19 years. It never was like this. Good luck dealing with these shady people piling up cars on the street to ship internationally. 👍
My pleasure! Someone has to do it.
Diamond in the rough keep up the hustle
Facts!
Wait can come one clarify this for me. 350k in, refinanced at 450 and then took all his cash out and was left with 100k. I’m just a bit confused on the exit part. Much appreciated
The exit plan is to refinance only 350k, I could essentially take out 450k but the debt payment would be more than I want. The refi money is tax free also because its not earned income its debt. This is the arbitrage of debt in real estate.
Great work brotha!!!
@@Spiff178 thank you! Let me know what deals you’re getting into in your market.
Amazing work brother! Very inspiring as well.
Thank you!
I appreciate the sharing! How did you find the renter??
I listed it on loopnet.com
Great work!!
Thank you!
Great execution!
Thank you!
I bet you were happy af when they took the 240K offer lol I would be jumping with joy
Real power here 🙌🏼
Thank you for the support, the model works for sure!
Why don't you just take the rent for 4 years that will give you back your initial investment. Now I have one question how do you determine the bank is going to give you that amount of money without an appraisal? Where I'm from when you get a commercial piece of property the bank goes by what the appraiser says not how much money you make on it. And I agree some appraisers will give a lot of value to the income but on raw land they generally are pretty conservative sometimes. In California where you live will a bank give you a loan based on the income of the property and I understand how the cap rate formula works and everything like that, Or do they go by the Go by the appraisal? Anyway you did a great job, but I have a question why did you put the retaining wall up and raise the elevation of the lot did you do that for security reasons so your fence would be better protection for the lot and the recycling center?
Great questions.
1. I have a lender that will base the value form income. I advise you build relationships with lenders that understand the vehicle your investing into. This can take time.
2. I explained in the video that I left the existing dirt on site so I had to grade it level which left it about 3.5 ft above grade.
@@CommercialAgentAcademy I understand now when I watch the beginning of your video I thought the property was at ground level with all the homeless encampment there I couldn't tell what the grade was. Yes I understand about making relationships with lenders I do that quite often The problem I have a lot of times is I'll have a good relationship with a bank and then some other bank will come in and buy them or merge and the new bank and I don't get along well, I lost out on a million dollar deal because of that one time. The banks where I live or so focused on the new rules and regulations in commercial lending since the 2008 real estate disaster. I try to deal with a smaller more community-based bank instead of a large corporate bank I seem to be able to get more done that way. I had this one bank that I could practically do anything I wanted and they got purchased by another bank and as I was told by the bank president there numbers are a little more sterile than the previous bank was, meaning they don't like to take a chance on anything. Well good luck with everything You sure hit it out of the ballpark with that lot no doubt about that You didn't have any major construction work to do You didn't have to get bogged now with building permits and engineering and all that stuff.
@@20truck What markets do you invest in?
@@CommercialAgentAcademy at one time had several residential rental houses I built most of them brand new and then I rented them then sold them a few years later and would build another one. At one time I had seven houses but the residential rental was driving me nuts people tearing things up and not paying rent on time. So I sold all my residential rental property and built a self storage facility. I built the first one in 2013, purchase the adjoining property doubled the size of that facility, and in 2021 bought another piece of property and built the third facility. I will never own residential rental property again I only want to deal with commercial property. But the problem is with interest rates being so high by the time you buy a piece of property and put any money into it numbers are not adding up especially if your project is over 2 million. But when you start building commercial property the hoops you have to jump through and all the engineering you have to pay for and all the state regulations can really make the budget add up, but once you get it done it works good if the numbers are correct. Again that lot you did out there was perfect You had very low overhead You don't have anything to tear up and you're making excellent rent I commend you on that.
@@20truck Good for you my friend. You got in at a great time. Keep your eyes pealed I expect a lot of opportunities in 2025.
That’s awesome brother. How would I get started as a 45 year old father of 6? I’m striving to change my family’s lives by transitioning from an employee to an investor?
that was a good one , if your cap is 6 - 7 than the property would be worth less in terms of getting money out , but it is a banger. maybe you want to help me build a home we can spend 250k all in, and house would be worth 349, I can get them done in 3 -4 months. potential rent is 2,700 a month. but we can turn around and make 70k each O.o?
Thank you! I don't touch residential champ. Also ground up construction I stay away from just because the headache with city. Where is this deal at I can pitch it to another investor.
@CommercialAgentAcademy i got master plans already submitted, so it my permits are over the counter. I own a couple properties in a multiplex area, i just dont have funds to buils 4 plexs
Good work bru
Thank you!
Who did your retaining wall? Would love to use them as well!
I have a good contact for you, send me an email.
good at explaining thanks
Hope you learned something! Keep investing!
Thanks for the vid., Watching from Kenya, brilliant work.
Thank you for the support! Cheers from California.
What about marketing expenses?
And Andmin expenses?
I am a real estate broker so I marketed to property myself to rent it out on loopnet.com
Good for you bro
Thank you champ!
What about property taxes and insurance?
Minimal prop expenses but I go over it in the returns.
@@CommercialAgentAcademyive always wondered how to get into this type of real estate . I want to learn more . Thanks
@@realf1rme Its considered industrial outdoor storage. If you live in a metro area with a port nearby there will be a market for it. Less competition also.
The magician!
Thank you!
Lol that retaining wall was a mistake
Yes, he lost 1/3 of the usable land by not removing the unnecessary dirt (entrance hill) for an extra $25K upfront but would increase the monthly lease rate had the dirt been removed.
Mr expert over here
@Nova-m8d i bet you that you a fake professional who never done this in yo life but have all the shhhh to say. Let him win. If you could've done better, why didn't you do it. Stop hating
@@bpcinvest Its usually these type of folks that get all worked up, but never picked up a hammer and don't know 2 from 4 lol.
Appreciate your support. Lets keep growing! People like you make this world a better place champ!
Awesome
@@anrod185 thank you for the support!
Great content but you need a professional mic my boy
Balling on a budget champ lol!!
Love seeing deals like this, keep crushing it brotha💪🏾
@@NazThaGod thank you for the support!! Let’s keep investing
Is parking lot storage in high demand?
It is in vegas. My primary residence has 1.2 acres, I have a separate driveway on the side of my property that leads around to the very back and I have about half an acre of vacant dirt I rent to people to store rv’s, smaller trucks, etc. long term storage I bring in about $1800/mo and I have a few more spots I can fill. At capacity I can prob generate $2500ish and get messages daily on my fb marketplace ad from people wanting to utilize the space.
@@thesnyderteam-lasvegas6614 Amazing way to turn your home into a cash flowing asset!
@@thesnyderteam-lasvegas6614 Nice play!
Could you not have sold the dirt? Or would that have taken too long ?
No one needed it, I tried. Lol
Sorry I guess I jumped the question too soon as you are now just answering it...OOOPS!
Yes, Indeed their are some operating expenses. Very minimal but always taking that into consideration to get real returns.
How did you find tenant
I am a RE broker so I listed it on loopnet.com and tenants started calling me.
I would of hual that dirt for free. I'm working on a hillside in Malibu expanding a property that was extra yardage I could of use.😢
Man lol I have another site where I can get you some dirt email me richard@commercialagentacademy.com
I wouldve got all that dirt and moved it throughout the city haha 😂
Big fines for that over here.
You should have went ahead and paid the extra $25K to remove the unnecessary dirt because 1/3 of the finished property (entrance hill) is completely unusable which means it's going to have a lower lease rate per sq/ft.
Approximate dirt removal was $100,000 not $25,000. The sloped entrance is actually usable for large trucks to park overnight as well. We got full price on this lease. If it was 25k to remove all dirt I would have done it but I was able to complete the entire project for the same price as just the dirt removal. All things considered, I am happy with the decision.
@@CommercialAgentAcademy You said $60K to remove dirt and $35K for a retaining wall. That's $25k
@@Nova-m8d There was more dirt than anticipated. Easily 100k to remove it all plus labor. But yes these are tough decisions one needs to make when going through the cap ex process. Tenant is happy with site and thats all I care about. PAY ME!!!
False lmao. Dumb old man out here acting like he knows what he’s talking about
This is awesome, and my ultimate goal. But impossible with only $20,000 in the bank of life savings
@@IntegraDIY champ, that’s more savings than the average American. You should be proud of yourself, simple solution is to find a deal where the seller can finance and needs/wants to sell.
Make sure the property cashflows enough to cover the debt payment along with operating expenses. Your goal should be to still have income after those two expenses.
If you believe you can do it, it’s coming your way. Receive it!
👍🏼
@@DWestside44 thank you for the support!
I feel the 60k saved in dirt was a loss of 1/3 of the square footage of the yard lost!
Crazy idea
Turned out to be a 100k of dirt removal once it was all set and done, not including grading, paving, fencing, gate, ect. It would have essentially added $80-$100k. All things considered the value is in the eye of the beholder, tenant are happy with site and paying a premium. Tough decisions that need to be made when investing in RE. What types of deals are you investing into currently?
How are you finding these deals
typical selling a course lol the game is sold not told just another "e-course" scammer
Just trying to inspire champ! Real Estate has been good to me and my family and I hope others experience the same.
Where the heck do you get 350000cash ahaha
SAVE, SAVE, SAVE! I work to earn, I earn to save, I save to invest!
Take the $350k buy another property and add a flex warehouse.
I think your cash flow is missing taxes and insurance.
Hopefully the lease was triple net lol
@txfiber yeah I didn't see where the water and electricity come in
NNN Lease so Tenant covers taxes, insurance, and utilities. Very common in CRE leases.
literaly haft the lots is useless with dumb slope cause bh your lazyness crazy you think you can teach people
Useless but bringing in atleast 4700$ a month for 5 years
I think he explained his reasoning well and even with the cash flow makes sense! No laziness to me 🤷🏽♀️
I say he is a smart man.
Blah blah
Wasted space with that dumbass ramp
I thought so myself before going that direction but we left it with enough grade so that our tenants can leave their semi truck parked there to maximize space.