Commercial Real Estate DealPRO Mastermind #4
July 9, 2022
Rising Interest Rates' Effect On Commercial Real Estate
* Discussion Topics And Questions:
* Peter M., NY
Hello. I have two questions for Cherif.
- Do you recommend always hiring an attorney to overlook & draft the Property LOI, Property PSA, Tenant LOI & Tenant Lease Contract before signing? If not, which one of these do you recommend bringing an attorney into?
- How much can we expect to calculate for major improvements to a vacant property? I am currently looking at an old Pizza Hut that does NOT have a drive-thru. I’m assuming any national tenant today is going to request one. What is the general scope of work that would need to be done to have that completed, and how much $$?
At 1:06 pm EST, Cherif talks about “the Nibble.”
* John P., TX
- I am considering doing a residential deal outside of San Antonio with a contractor. I will be doing a joint venture agreement with him. Can you give me a few pointers on terms & conditions I should include outside a normal, straightforward JV agreement with my state?
- Can you give me some challenges I MAY run into that will keep me and my partner on the up & up? You always say, “the deal is great until it’s not or money is involved…” Looking for guidance from the man!
1:09 pm EST Cherif gets into Responsibilities & Duties in a JV Agreement. Cherif explains to put all terms in an email, including how you expect to be answered, how quickly you expect an email back, etc.
1:14 pm EST How solid is the person you are working with?!? It all starts with people.
1:15 pm EST extreme of money
* Ralph D., Canada
- Is it a good idea to apply the ‘House Hacking’ strategy to CRE, and have you successfully applied it in your practice? Could you share some ideas or examples?
- What are the pros and cons when a business is owner-occupied with house hacking?
1:16 pm EST House hacking, (a) how to increase income and (b) pay yourself the highest rent possible… (1:20 pm EST)
1:18 pm EST African Proverb & lenders
1; 22 pm EST Are you going to sit and cry…
* Freddy M., NJ
1:23 pm EST DEAL REVIEW
Hello, I have this property: 193 N Washington Ave, Bergenfield, NJ 07621 ($350,000)
My question is, what do you think of this property, and how can I take it to its highest & best use?
1:29 pm EST What is a Deed?
1:35 pm EST Sense of urgency
* Margarita F., CA
Thank you for all your hard work and teaching. All the modules are mind-blowing. I have a question about building business credit.
- If I want to build business credit, do I have to use a credit card for invoicing my business on PayPal? Or can I use cash from my savings account to invoice and pay my business through PayPal?
- When is it best to build business credit? I currently do not have a business LLC now, so my question is should I open an LLC?
- With business credit, can I purchase my first home?
1:36 pm EST BUSINESS CREDIT SECTION- HUGE FOR SOCIAL MEDIA!!!!
1:37 pm EST Days beyond the term
1:45 pm EST Tipping point
1:46 pm EST The 1st Step is to raise capital for yourself
* Billy O., TX
(JV and CRE DealPRO)
- Can you comment on this rate increase from June 15th? I would like to understand the correlation of the fed rate increase to ‘market’ cap rates.
1:51 pm EST Billy QA regarding INTEREST RATES- very important to current events, will get views!
1:50pm EST Here is the game
Loraine H., NJ (2:03pm EST)
(CRE DealPRO. She owns 4 rentals and wants to scale her RE business)
- In some of your videos, you talk about “verifying that any inspections or title, etc.” is at the discretion of the Buyer.
- When putting a medical condo reposition under contract, should I ensure that the inspection is at my discretion? Do I let the seller order the title report? I’m not sure I know what “title etc.” means exactly.
- Should I get title insurance and let the seller order the title report? Please advise.
*Alan C., CO
A prospect of mine in which my close friend, former colleague, and protege is now moving rapidly through the management rank at an Environmental Service company. There may be much more opportunities long term.
We spoke recently about another property in OK, and he has been given permission to remodel it and move his group into it. We spoke about a sale leaseback on this property, but there is much more potential with his Company. (Name is confidential)
The Company grew rapidly by acquisition over the last 30 yrs. And in doing so, it has collected a massive
Inventory of assets which constantly overwhelms the management. The management is industrial operations people skilled at hazardous waste clean-up and disposal, not CRE.
Please advise of any thoughts or ideas you may have.
2:14 pm EST What entities can you get good deals from??
2:19 pm EST Sale-leaseback
* Jake B., AZ (2:24 pm EST, CUT THIS FOR KMAGB Content Piece!)
- Does your asset protection protect us from having to do a Prenup?
- And how many properties can go under one WY LLC?
- Do the assets have to be in one person’s name, or can they be in LLCs?
2:24 pm EST, CHERIFISM, “The more money you make, the more romance you will have…”
2:30 pm EST There are 3 types of liens in the USA
2:31 pm EST Understand the SYSTEM
*Duncan A., VA (2:34 pm EST)
– you can TIE THIS QA INTO JOHN P’s QA at 1:09 pm EST. It will give you a lot to work with for a Content Piece about drafting an Agreement for a joint venture deal. It can be a Cracking the Code on RE Funds content piece. Use the animated logo at the end and lead them to contact the office to set up a RE Fund and learn about raising capital for real estate….)
He defines syndication, securities, and RE Funds- and makes comparisons.
2:39 pm EST “All good contracts are good until they are not… CHERIFISM
2:40 pm EST What turned the economy around in 2008, RegD
- Do you like partners in a project? How is the best structure set up for 2-3 people? Most are just bringing money. I will be doing most of the work with a contractor. It’s a larger fix & flips in South FL.
* QUESTIONS FROM THE CHAT:
2:41 pm EST Philip’s QA about HELOCs and lenders
2:46 pm EST Todd’s QA about S-Corp clarification
2:54 St Germaine Act
2:56 pm EST Philip’s QA about nonperforming notes. Cherif recaps his note program. Good stuff! He covers the KEY THINGS when buying a NOTE. Talk to those who defaulted.
2:58 pm EST Cherif- I thought you could close with something we discussed today…
YOU NEED TO ACCESS
- Know yourself
- Know others
- And know the market & your background