Commercial Real Estate DealPRO Mastermind #2
April 9, 2022
How To Negotiate A Storage Facility Deal
*Discussion Topics And Questions:
1:19 pm EST, he is referencing a deal he has pending and the NEGOTIATIONS of the deal with 3 owners who are involved… He talks about negotiating a storage facility deal. He highlights and explains TICs
1:22 pm EST, he talks about the strategy of “Drop & Swap.”
CHERIFISM: Effort, money, time
1:22 pm EST Theory, education, and single-minded
1:24 pm EST the importance of understanding the word and definition of
1:25 pm EST Matt Maggio asks about Traffic count importance and location…. IRREPLACABLE LOCATIONS
Tim’s Question: (1:27 pm EST to 1:33 pm EST) Formula on how to manage RE Projects from a distance
Time is your friend or your enemy
1:32 pm EST HOLY MOSES
1:33 pm EST Cherif covers the 3 most important questions in life
He talks about leading: Agreement & Vision
1:34 pm EST As a leader, your job is to clarify-assign-motivate-enforce
1:35 pm EST The end goal of a meeting…
1:35 pm est Tim’s Question on highspeed realtors
1:40 pm EST Execute ion Stages
1:41 pm EST Tim’s Question about screening tenants
1:44 pm est Focus on an area! Most people see price…
CASH FLOW or CASH OUT
1:45 pm est Want to know what the biggest problem is??? (He discusses the spike in home prices)
1:51 pm Tals about why he likes NNN
1:51 pm EST Katie’s Questions
Crowdfunding vs. Cherif’s Funds
1:53 pm EST “I could have had a baby….” J
1:57 pm est DYNAMIC REVENUE MANAGEMENT
“2023 will be an interesting year.”
The key question is, what am ai going to do in the next 12 months….
2:05 pm EST Do you know what depreciation is?
(Bill Odell Q)
2:11 pm EST Tenants and locations
2:11 pm est Transactional Funding
2:15 pm EST What is the purpose of the Estoppel letter
2:16 pm EST Learn where the mistakes are….
2:19 pm EST Don’t be uncomfortable about talking about money $$$
He helps Billy with a deal he’s putting together.
He goes through the Steps: people, property, price
Most importantly, how will you exit and end the relationship???
2:25 pm EST In business and life, you need 3 things
2:26 pm est How much cash reserves do you always have (Alex Question)
2:29 pm EST STORAGE FACILITY CASE STUDY AND TALKING POINTS
2:35 pm est Cherif goes into the most LUCRATIVE CRE Investments for the next QT.
2:36 pm EST Here’s a formula- look at the best practices of the competition….
* Victor S., CA
- My property manager does NOT recommend escalations on a lease contract of 2-3 years. She says, “What is the incentive for the tenant to sign a longer-term lease if the rent increases yearly?”. Cherif, you always talk about including escalations in the lease. What is a good argument for convincing her to include rent escalations in 2-3 year lease agreements? I’m only suggesting 3% per year.
FYI, I purchased a 10-unit strip mall in 2021 that currently has 3 vacancies. So the opportunity for 3 new lease agreements is on the table.
- I also own 2 single-family home rentals. Would your answer to #1 above be the same for these single-family home rental agreements? Should I include escalations in them as well?
*Matt M., South FL (New JV and CRE DealPRO)
I hope all is well with you. I have a question regarding cash flow. Once the deal is closed and assigned to the fund, how are the cash flow distributions split? I know we get a percentage, either 10% or 25%, of the increased value but wasn’t sure about the monthly cash flow. Maybe he covers it in a video that I haven’t seen yet. Can I just have him briefly explain?