Here’s today’s agenda:
- For Sale – 43 Real Estate Investor Deals
- $7 Million Dollar Offer Presented Same Day
- Podcast on Selecting the Best Airbnb Markets
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Doing a Deal with Diamond Equity
Another Shout out to Ken Grant for sending over a 125K sq. ft. industrial flex deal. The case study of our quick progress can be found below.
Also Shouting out Marc Mittman for sending over pre-auction details on a 200K sq. ft. industrial building. This latter deal is likely a pass for us because it is spread over 4 stories. Ideal industrial properties are single level so that tenants can drive trucks into their space. Plus, no elevators (crazy expensive to maintain/replace) & the street level rents are always higher.
For Sale 203 E Trigg Avenue, Memphis, TN 38106
- 30,658 Sq. Ft. on 8.94 Acre Industrial Lot
- Up to 40″ Ceiling Height
- Seller may Consider Seller Financing
- Railroad Spur (dormant)
- Offering Memorandum
- For details, contact Henry Webb at 901-526-3100
- Price $985,000
This deal is perfect for Industrial Outdoor Storage. Renovating this current warehouse, building out a secure, outdoor lot with fencing and then leasing to contractors needing indoor & outdoor space (think excavation companies) would bring unique product with sticky tenants. Capex would likely be $1.5M and the stabilized value might be in the $4M-$6M range. Details on the Industrial Outdoor Storage space can be researched on this Podcast I did with Chris Long.
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$7,000,000 Offer Made in less than 4 Hours of the Referral
Ken Grant has sent over maybe 4-5 referrals, most ok, but this latest one was perfect. All of these deals were represented by other brokers, but not publicly marketed. The majority of commercial real estate deals are done this way-by brokers and off market.
This current deal is perfect for us. Single story flex space with some warehouse/showrooms/offices on 4.5 Acre lot. Also 85% occupied, so the lift is light. Income on day 1, we can invest $300K-$500K in updates and fill the remainder to push our value by $2M or so.
My partner happened to already be in Ohio checking out other projects already owned. We received the lead from Ken at 8am, toured the property by noon and made a verbal offer, and had an official LOI submitted shortly thereafter.
If you refer a deal to me I’ll let you know immediately if it’s something I’ll pursue. If it is, you can expect my team to jump quickly and get our offer out immediately. If we win this deal and get to closing, we have a substantial referral for Ken: either a cash payout or a slice of equity. How much will depend on how the negotiation plays out with the broker/seller.
Worth noting, Ken is a broker, but rather than try to insert himself into every deal, he has simply forwarded me the marketing flyer and let us take the reins. This is best for two reasons:
- This allows us to speed things up. When coop brokers get involved in commercial deals, the listing broker often slows down the info because they’re trying to double side every deal.
- Then, as a follow up, the listing broker will be much more inclined to advocate for our offer when working directly and collecting their full commission. This is how the game works.
Thanks again, Ken! Keep them coming!
Here’s What I’m Buying:
- Retail Strip or Shopping Center 10,000-250,000 Sq. Ft.
- Industrial or Flex Warehouse 20,000 – 250,000 Sq. Ft.
If you find me a deal like this, I’m happy to include you in the General Partnership ownership stack with an equity stake.