Inheriting warehouses and I'm just at the start of my learning journey. Looking for basic guidance.
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[{"id": "epwoobg", "text": "Step 1 is get yourself educated on industrial real estate ASAP.  You need to understand the differences between NNN, Base year, and gross leases.  You need to understand discounted cash flows, what return metrics to look at (cash on cash, IRR, cap rate, etc), and understand how they are different from one another.  You need to understand how debt affects your returns.  This all is extremely important so that you at least understand what your advisors are telling you and why they are telling you these things.  NAIOP, CCIM, Propertymetrics, Adventures in CRE, or even Udemy are good places to start looking at courses.    \n\n\nFirst and foremost you need an experienced ASSET manager (not property manager).  Someone who has run properties on both the management side AND the financial side.  You likely will be hiring out a property management team from one of the big brokerage firms to do all of the management and accounting of the bat.  \n\n&amp;#x200B;\n\nI'm honestly kind of surprised this is just being \"handed over\" to you.  In my experience, these portfolios are only really inherited after the relative has worked for the company for a number of years.  I don't mean this to sound snarky, I just want you to understand that you are probably going to feel overwhelmed and way over your head.  You can do it as long as you keep those trusted advisers by your side for as long as you need.", "replies": [], "depth": 1}, {"id": "epwotv9", "text": "It sounds like you have a good transition team in place.  You will have many of your questions and concerns taken care of throughout the process.  The things I would look at include :  Are all of the properties located within the same market;   Is there a reserve account and how robust is it;  are there many leases that terminate at or around the same time (will you have a rush of vacancy which can be expensive);  are all the leases structured the same;  do you have a team of contractors to do TI's;  what is the general condition of each building (roof; hvac; plumbing; is tenant use hard on the property; etc); do you have a good broker that has been adequately informing ownership of recent comps and market trends.  \n\n\nIf the properties are scattered throughout different markets then these issues can be a bit more complicated.  Good luck and congratulations.  I'd LOVE a portfolio of industrial properties.", "replies": [], "depth": 1}, {"id": "epwuhje", "text": "Where are you located?", "replies": [], "depth": 1}, {"id": "epx3hkn", "text": "Most importantly, don\u2019t go spending a ton of money right away. You are being given a generational wealth opportunity. You will literally change the lives of many, many generations of you do this right. \n\nEducate yourself, and be patient...as hard as it sounds.", "replies": [], "depth": 1}, {"id": "epxbtbc", "text": "Wow, what an exciting position to be in! The thing that jumped out at me is the 2 year seasoning/mentoring offer from the family member that is transferring ownership...That is HUGE. Take full advantage of this. Pick their brain on everything - leases/leasing, construction/build outs, asset valuation (cap rate, etc), how to evaluate tenants, how to read construction docs, property management, capital expenses. Just ask questions.", "replies": [], "depth": 1}]