I Am A Commercial Real Estate Investor &amp; Developer With A Portfolio Of 50 Million+. Ask Me Anything.
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[{"id": "gnk9b51", "text": "as a developer, how do you start a project?", "replies": [{"id": "gnkddy0", "text": "For me, I keep it simple. If the numbers on the project don\u2019t work at first on the back of an envelope, it usually doesn\u2019t work.  \u201cNext\u201d becomes a very used word, as I value my time. If it passes that test, we move to due diligence and go from there.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gnk9p1a", "text": "This may be a very naive question.\n\nLet's say I have good personal credit, and I have a business with good credit (en existing LLC with several trade lines). However, I want to buy a real estate property to develop, and I want to create a new LLC to buy it with partners. I've heard that this is common, and I know that business credit worthiness is not evaluated the same as personal credit.\n\nMy question is, given the above, how does a brand new LLC that I create have credit worthiness to buy and develop land? How is this done, if it is as common as I understand it to be?\n\nEdit: What is the target market for Leverage? Property developers?", "replies": [{"id": "gnkea07", "text": "Good stuff! You are a business person, so my expectation is that lenders will evaluate you that way. Your development business LLC will likely get its own legitimate credit established once it has established a track record.  At the start, the lender will likely evaluate you and your credit. \n\nLeverage is for Property developers, property investors, business owners, any of us who are seeking commercial financing who want to know what we are likely to receive from the lender *before* we apply.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gnkabuy", "text": "Hi John! I'm a residential real estate guy, with an eye towards commercial. I'm not terribly far into the game...I've completed or am in the process of the completion of projects worth...I don't know, $700k? Peanuts compared to many.   \n\n\nI have 2 immediate questions when looking at commercial right now is. First, is it overbuilt? Where I'm at, central Arkansas, it seems like they haven't slowed on building more commercial despite the pandemic and the fact that there seems to be lots of vacant space. \n\nMy second question goes in the complete other direction...following the apparent pandemic-inspired movement of people to smaller towns and suburbs, are there opportunities to build more commercial in these outlying areas? Particularly shared or rentable office space. More and more are working from home, but everyone likes having an office to go to sometimes.", "replies": [{"id": "gnkfth0", "text": "Great questions! Transitioning from residential is a journey for sure!  I'm not familiar with your location, so you will need to analyze vacancies, projected demand, etc. to determine if the area is overbuilt.  \n\n\nRe: Commercial in outlying areas. Personally, I prefer the suburbs...and it appears growth may trend that way!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gnl6312", "text": "How will COVID impact your industry?", "replies": [], "depth": 1}]