Behind every acquisition negotiation is a deal that makes sense FINANCIALLY 💯
Deals with big numbers may seem impressive…
But they don’t mean anything if the margins aren’t carefully thought out 💭
In this existing multifamily building, the temptation is to demo the current structures and rebuild self storage…
But due to the current zoning, lot size, set back requirements, and height restrictions we may not be able to build enough square footage to make it worth our while
That means the ENTIRE deal is going to hinge on whether or not we’ll be permitted to build at a particular height 🏢
Don’t let the $6,000,000 fool you: a deal has to be a DEAL, no matter the scale
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It’s easy to create millions when you solve million dollar problems 💰
This owner wanted to sell the property but pass down his business to his children and grandchildren.
The hassle of finding a new space to run the business post-sale would be a nightmare for him and his family…
So we struck a deal where he’d be able stay in the building, run his business, and also allow him to have a capital event that would fund a nice retirement. 🏖️
In the CRE world this is called a sale lease back. 💥
It’s important to note that when structuring a sale lease back you need to mindful that the more the seller pays in rent, the more you can pay for the property (and vice versa).
BUT you also don’t want to pay too much for the property and charge rents that the market won’t support in the event the business left. 🚫
In these types of transactions you need to build MASSIVE trust. You’re not just buying their property, you’re going to be entering into a 5-10 year relationship as landlord and tenant.
This is why I love real estate.
You solve problems, make life long friends, and make millions while doing it ! 🤝
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I’m neither a republican nor a democrat. I am an entrepreneur. Whatever politician says the entrepreneurs can keep more money is the politician I am listening to.
When meeting with clients, I often use a mind map that highlights 38 advantages of a well-structured, max-funded IUL. This mind map covers several key categories:
- Liquidity: Multiple options for accessing funds when needed.
- Safety: Strong protection features to safeguard ...
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