The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Learn how to build wealth and win financial freedom the Fastlane way!

Say "NO" to mediocre living rife with jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence. Join more than 70,000 entrepreneurs who are making it happen.
Join for FREE Today
Get the books
Remove ads? Join Fastlane INSIDERS
(Registration removes this block)

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
Small Update:

The warehouse is coming along, layout is done and I think we will be under budget and I cant remember if I already said the SBA approved my loan at committee. It's going to be 41k sq ft, have a 5k sq ft gym, cafe, 30k sq ft of warehouse and glass offices with a creative lab and zoom rooms. My cost per square foot is going to be around $150 when its all said and done and the current market is going at around $200.

The storage facility is finally underway. Ill have to get some photos more and more as demo goes on. We value engineered the building and were able to add 400 units (~1300 total). It's now a 12M project with a 32% IRR. Ridiculous, they're doing another raise since the project cost increased (along with the return) and I am going increase my portion open to me which is about 1/3 of the total raise (1M).

Expected cash on cash return in 3 years is 130%+ and the cash flow for my portion post stabilization is going to be somewhere around 150-200k/yr.
 

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
Here's another update:

- The warehouse is going to take longer than expected, due to the cities requirements and the developer selling the land. I have to wait till May of next year to get the lot split and sold to me and then it will take another 16 months to build from start to finish.

In the mean time im going to get a lease, I was looking at buying but the selection in my market is not good - prices are insane and quality is low. As my income has increased I need to find large assets that I can cost segregate to lower my tax burden.

My tax bill is looking to be somewhere around $1M this year. How i am going to try and work through this is by buying more storage facilities and using bonus depreciation through cost seg studies to try and get my tax burden cut in half or as low as possible.

Brand 1: Will hit 1M/mo this month. We have 15 employees and we're just really crushing everything right now. It's probably the most fun and also most stressful time ive ever had.
Brand 2: Im listing with Quiet Light in the next week or two. Im just not paying attention to it and the structure of the partnership doesnt yield a good deal.
Real Estate: Im going to start hunting storage facilities that can be cost segged and hopefully get something going before the end of the year to save on taxes.
 

Genius01

Bronze Contributor
Read Fastlane!
Speedway Pass
Dec 18, 2017
219
268
Nigeria
Brand 1: Will hit 1M/mo this month. We have 15 employees and we're just really crushing everything right now. It's probably the most fun and also most stressful time ive ever had.
Amazing!
Seems like you're heading to the moon with this business.
Keep firing ahead, and please do keep the updates coming.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Antifragile

Platinum Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Mar 15, 2018
1,382
3,501
Metaworld
Here's another update:

- The warehouse is going to take longer than expected, due to the cities requirements and the developer selling the land. I have to wait till May of next year to get the lot split and sold to me and then it will take another 16 months to build from start to finish.

In the mean time im going to get a lease, I was looking at buying but the selection in my market is not good - prices are insane and quality is low. As my income has increased I need to find large assets that I can cost segregate to lower my tax burden.

My tax bill is looking to be somewhere around $1M this year. How i am going to try and work through this is by buying more storage facilities and using bonus depreciation through cost seg studies to try and get my tax burden cut in half or as low as possible.

Brand 1: Will hit 1M/mo this month. We have 15 employees and we're just really crushing everything right now. It's probably the most fun and also most stressful time ive ever had.
Brand 2: Im listing with Quiet Light in the next week or two. Im just not paying attention to it and the structure of the partnership doesnt yield a good deal.
Real Estate: Im going to start hunting storage facilities that can be cost segged and hopefully get something going before the end of the year to save on taxes.

First of all, great thread and to see your progress.

Curious. Why is warehouse taking 16 months to build? We usually get our industrial buildings up and done in 10 months flat (after permits, construction schedule only).
 

Balkins

Contributor
Jun 18, 2016
33
34
Here's another update:

- The warehouse is going to take longer than expected, due to the cities requirements and the developer selling the land. I have to wait till May of next year to get the lot split and sold to me and then it will take another 16 months to build from start to finish.

In the mean time im going to get a lease, I was looking at buying but the selection in my market is not good - prices are insane and quality is low. As my income has increased I need to find large assets that I can cost segregate to lower my tax burden.

My tax bill is looking to be somewhere around $1M this year. How i am going to try and work through this is by buying more storage facilities and using bonus depreciation through cost seg studies to try and get my tax burden cut in half or as low as possible.

Brand 1: Will hit 1M/mo this month. We have 15 employees and we're just really crushing everything right now. It's probably the most fun and also most stressful time ive ever had.
Brand 2: Im listing with Quiet Light in the next week or two. Im just not paying attention to it and the structure of the partnership doesnt yield a good deal.
Real Estate: Im going to start hunting storage facilities that can be cost segged and hopefully get something going before the end of the year to save on taxes.

Congrats on your hard work paying off.

1. In my area, self-storage is saturated but then we have other developers with deep pockets come in and put up yet 'ANOTHER STORAGE' facility. When will it end?

2. What kinda LTV financing are you getting these days from Banks...when i was a commercial appraiser, developers were begging banks for loans and they would hesitantly lend our 65-70%. What are you guys getting? What kinda LTV are you getting on Construction loans these days?

Thanks for your input...`
 

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
Congrats on your hard work paying off.

1. In my area, self-storage is saturated but then we have other developers with deep pockets come in and put up yet 'ANOTHER STORAGE' facility. When will it end?

2. What kinda LTV financing are you getting these days from Banks...when i was a commercial appraiser, developers were begging banks for loans and they would hesitantly lend our 65-70%. What are you guys getting? What kinda LTV are you getting on Construction loans these days?

Thanks for your input...`

Alot of people dont understand the economics of storage, so there is a lot of dumb money financing facilities and building them because they think its easy.

My conversion project is in the downtown area right on a freeway exit, 1200 units, in the fastest growing city in the country. Nobody can build next to me because the city doesnt allow storage there, the building was previously zoned in the same zoning code as storage when it was a newspaper facility.

I wouldn't necessarily build without doing research and getting a market analysis and having a competitive advantage.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
Just an update,

The cities are backed up and also have a lot of morons in them. On top of that construction where i live is booming so you need to get into schedule. Ive pulled back on that development.

Under contract on:

30k sq ft warehouse that the owner is seller financing to me for $4.2M
60k sq ft warehouse that im going to buy with an sba loan for $8M.

That happened in the past couple weeks, we will see.
 

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
On pace to do $2M this month and we are absolutely murdering this year.

My team will surpass 20 in the coming 2 weeks and Im stilling hiring like crazy, my biggest challenge is finding people with experience in ecommerce+ops+marketing that can add value at the scale we're at. I've been really gunning after people at the larger companies - Nike/UA/Puma to try and get them to join our team.

Real estate wise Im submitted to the SBA for the larger project and thats tracking to close in December and same with the other property.

Im finalizing a brand that I plan to launch under the umbrella of everything im doing and kind of consolidating the ecommerce and real estate under a holdings company that manages and operates everything.

Love this time of the year, so many move parts and challenges but all good things.
 

originalMJT

Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Speedway Pass
Jun 18, 2021
31
31
England
Hey man, those are some good questions and I think about the situation a lot. I think it comes down to free time and what you're filling it with. I don't have free time because I am always working on progressing in one of the categories you've mentioned but that doesn't mean one of those categories detracts from the other, i've worked it out into a way where they don't interfere with one another and in some cases benefit each other. For example,

-My job pays for half of my tuition, I am full time and get a full time salary, even though I can leave and go to class.

-When I need a contractor to work on one of my properties I use the same contractors that I use for the RE firm Im the VP in and I get priority treatment because of how much work I bring them.

My salary from the ecom business and VPO position look really good to banks when looking for financing for new properties.

As for the VPO position, I've essentially climbed to the top of the company already and any future growth would come in under me. When it comes to the Ecomm business, im too reliant on a couple of sales channels and I would rather reinvest back into the business than have to live off of the income I produce.

I'm in college just to get the peice of paper man but I'm also thinking long term about it as well, most of the stuff we discuss in class I've already taught myself or I'll literally never use in my life. Im fine with that, but I might even get my MBA because one day I will most likely create an investment firm myself and when I'm raising money or working with banks, or whatever the case may be I'll have the credentials but also the track record to get funding, investors, partners, etc. I also want to get it done now before prices get even more crazy (i only have one year left in my undergrad).

Just a side note on the college thing that I've observed - the stats are against the college argument, getting a degree IS PROVEN on average to make you more successful in life than not getting one. Everyone who speaks out against it actually has one - Tai lopez, Gary V, Grant Cardone, Peter Theil... They may say it's a waste of time and you shouldnt do it but then you have to ask yourself would they be where they are today without it? No doubt they'd all be successful, but would they be where they are today?

What I HATE about college is the racket that's been created to screw students with student loan debt. The government backs the loans essentially allowing schools to raise prices astronomically and they saddle the student with the burden in a stage where the student doesn't understand or care YET about what they're doing to their future.

I won't have that issue, I wont have any debt and Ill have the degree just a couple years later than my friends who have -60k and got their "college experience"
If the degree is costing you nothing then you might as well finish it ,atleast you will have something to put on the wall in your office. Banks only want to look at the ROI doubt they would ever want to see your degree
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
First of all, great thread and to see your progress.

Curious. Why is warehouse taking 16 months to build? We usually get our industrial buildings up and done in 10 months flat (after
We have insane demand for contractors here and the cities are backed up.

It has a little value, I mentioned it in my SBA application. But yeah, my banker called me two weeks ago and asked me if I had a degree and I told him yes. He didn't realize I had gotten it while building my company.

For my local bank, I'm their largest client - when you pass a certain number they know you, they don't care about your education. You've proved yourself.
 

biophase

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Unscripted!
Summit Attendee
Speedway Pass
Jul 25, 2007
7,988
37,487
Scottsdale, AZ
atleast you will have something to put on the wall in your office.

That would probably be the least impressive thing I would put on my office wall LOL.

My degree has been in a manilla folder in a file cabinet since the day I got it.
 

BD64

Silver Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Jul 26, 2017
343
767
25
Boulder, CO
That would probably be the least impressive thing I would put on my office wall LOL.

My degree has been in a manilla folder in a file cabinet since the day I got it.
At least you actually got your degree. My college wants me to pay to get mine mailed to me. NOPE.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
That would probably be the least impressive thing I would put on my office wall LOL.

My degree has been in a manilla folder in a file cabinet since the day I got it.

I have the original overhead blueprint of the facility that we're converting to self storage framed along with some other cool souvenirs from deals and accomplishments that go on the wall. I actually dont know where my degree is lol. Probably filed away somewhere
 

Envision

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
May 5, 2014
835
5,490
27
Well what a whirlwind of events.

On December 10th the SBA rejected my application for my $8M purchase of our 60k sq ft distribution center.

This was mainly due to the debenture company not providing enough detail to the SBA. I had to close before the end of the year and this really screwed me because I was 100k hard on the purchase and had spent 30k in due diligence.

Myself and my banker moved extremely quickly to resubmit the app and we actually rewrote the whole application to provide the detail and clarity needed to show the SBA why I need this size of a building. The issue was their reviewing time with the holiday. My 100k was going hard the 24th and the SBA takes about 2 weeks to provide feedback. We went 25k/100k hard immediately to extend from the 24th to the 27th...

On the 20-24th I was realizing the SBA wasnt going to get back to us in time so I started to reach out to capital groups to see who could potentially come in as the financing to not lose the deal. Tons of conversations and meetings but nothing was really working out. Tons of firms were interested, the property has instant equity but the terms to me sucked.

Come the 27th, I forfeited the deal because I didnt have the SBA approval despite having everything else in place I didnt want to risk any more money than I had already lost and risk getting another rejection.

Started looking at leases and the property was relisted on the market for 500k more than I was buying it for..

2 days later.. On the 29th, the SBA called my banker and told us we had approval. No questions, no concerns, a complete and total approval. But I was out of contract. We called everyone and turned everything back around and moved extremely quickly to get everything pulled back together.

I signed and closed yesterday on this building. It will allow my company to scale into the high 8 and soon to be 9 figures based on the sheer ability to hold and distribute product. The equity appreciation over the next 5-10 years will likely double and its a win win all around.

That was the most stressful and intense transaction Ive ever done with every emotion thats possible to feel being felt. Just glad it turned out and everything went according to plan.

Never give up.
 
Last edited:

biophase

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Unscripted!
Summit Attendee
Speedway Pass
Jul 25, 2007
7,988
37,487
Scottsdale, AZ
Well what a whirlwind of events.

On December 10th the SBA rejected my application for my $8M purchase of our 60k sq ft distribution center.

This was mainly due to the debenture company not providing enough detail to the SBA. I had to close before the end of the year and this really screwed me because I was 100k hard on the purchase and had spent 30k in due diligence.

Myself and my banker moved extremely quickly to resubmit the app and we actually rewrote the whole application to provide the detail and clarity needed to show the SBA why I need this size of a building. The issue was their reviewing time with the holiday. My 100k was going hard the 24th and the SBA takes about 2 weeks to provide feedback. We went 25k/100k hard immediately to extend from the 24th to the 27th...

On the 20-24th I was realizing the SBA wasnt going to get back to us in time so I started to reach out to capital groups to see who could potentially come in as the financing to not lose the deal. Tons of conversations and meetings but nothing was really working out. Tons of firms were interested, the property has instant equity but the terms to me sucked.

Come the 27th, I forfeited the deal because I didnt have the SBA approval despite having everything else in place I didnt want to risk any more money than I had already lost and risk getting another rejection.

Started looking at leases and the property was relisted on the market for 500k more than I was buying it for..

2 days later.. On the 29th, the SBA called my banker and told us we had approval. No questions, no concerns, a complete and total approval. But I was out of contract. We called everyone and turned everything back around and moved extremely quickly to get everything pulled back together.

I signed and closed yesterday on this building. It will allow my company to scale into the high 8 and soon to be 9 figures based on the sheer ability to hold and distribute product. The equity appreciation over the next 5-10 years will likely double and its a win win all around.

That was the most stressful and intense transaction Ive ever done with every emotion thats possible to feel being felt. Just glad it turned out and everything went according to plan.

Never give up.

View attachment 41376View attachment 41377View attachment 41378
That's awesome. Must have been super stressful for the past few months!
 

Fox

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Forum Sponsor
Aug 19, 2015
3,074
21,457
Europe
Well what a whirlwind of events.

On December 10th the SBA rejected my application for my $8M purchase of our 60k sq ft distribution center.

This was mainly due to the debenture company not providing enough detail to the SBA. I had to close before the end of the year and this really screwed me because I was 100k hard on the purchase and had spent 30k in due diligence.

Myself and my banker moved extremely quickly to resubmit the app and we actually rewrote the whole application to provide the detail and clarity needed to show the SBA why I need this size of a building. The issue was their reviewing time with the holiday. My 100k was going hard the 24th and the SBA takes about 2 weeks to provide feedback. We went 25k/100k hard immediately to extend from the 24th to the 27th...

On the 20-24th I was realizing the SBA wasnt going to get back to us in time so I started to reach out to capital groups to see who could potentially come in as the financing to not lose the deal. Tons of conversations and meetings but nothing was really working out. Tons of firms were interested, the property has instant equity but the terms to me sucked.

Come the 27th, I forfeited the deal because I didnt have the SBA approval despite having everything else in place I didnt want to risk any more money than I had already lost and risk getting another rejection.

Started looking at leases and the property was relisted on the market for 500k more than I was buying it for..

2 days later.. On the 29th, the SBA called my banker and told us we had approval. No questions, no concerns, a complete and total approval. But I was out of contract. We called everyone and turned everything back around and moved extremely quickly to get everything pulled back together.

I signed and closed yesterday on this building. It will allow my company to scale into the high 8 and soon to be 9 figures based on the sheer ability to hold and distribute product. The equity appreciation over the next 5-10 years will likely double and its a win win all around.

That was the most stressful and intense transaction Ive ever done with every emotion thats possible to feel being felt. Just glad it turned out and everything went according to plan.

Never give up.

View attachment 41376View attachment 41377View attachment 41378

Youre a machine!

Congrats man
 

WJK

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Oct 9, 2017
2,361
5,353
Alaska
That would probably be the least impressive thing I would put on my office wall LOL.

My degree has been in a manilla folder in a file cabinet since the day I got it.
I hung my Juris Doctor degree over my sewing machine in my art studio. You sound equally impressed with yours.
 
Don't like ads? Remove them while supporting the forum: Subscribe to Fastlane Insiders.

biophase

Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Unscripted!
Summit Attendee
Speedway Pass
Jul 25, 2007
7,988
37,487
Scottsdale, AZ
I hung my Juris Doctor degree over my sewing machine in my art studio. You sound equally impressed with yours.
I think most of us on this forum know that a degree is just the beginning of life. In fact, now that I'm 50, I would say that it was getting a degree (not including the paying for it) probably the easiest part of life.

I mean if we just look at Envision's last post about his $8M warehouse. What was harder and more stressful, passing a bunch of hour exams and finals or trying to get a loan and almost losing $100k. You can't just go to the professor during office hours and ask for help. LOL
 

Antifragile

Platinum Contributor
FASTLANE INSIDER
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Mar 15, 2018
1,382
3,501
Metaworld
Well what a whirlwind of events.

On December 10th the SBA rejected my application for my $8M purchase of our 60k sq ft distribution center.

This was mainly due to the debenture company not providing enough detail to the SBA. I had to close before the end of the year and this really screwed me because I was 100k hard on the purchase and had spent 30k in due diligence.

Myself and my banker moved extremely quickly to resubmit the app and we actually rewrote the whole application to provide the detail and clarity needed to show the SBA why I need this size of a building. The issue was their reviewing time with the holiday. My 100k was going hard the 24th and the SBA takes about 2 weeks to provide feedback. We went 25k/100k hard immediately to extend from the 24th to the 27th...

On the 20-24th I was realizing the SBA wasnt going to get back to us in time so I started to reach out to capital groups to see who could potentially come in as the financing to not lose the deal. Tons of conversations and meetings but nothing was really working out. Tons of firms were interested, the property has instant equity but the terms to me sucked.

Come the 27th, I forfeited the deal because I didnt have the SBA approval despite having everything else in place I didnt want to risk any more money than I had already lost and risk getting another rejection.

Started looking at leases and the property was relisted on the market for 500k more than I was buying it for..

2 days later.. On the 29th, the SBA called my banker and told us we had approval. No questions, no concerns, a complete and total approval. But I was out of contract. We called everyone and turned everything back around and moved extremely quickly to get everything pulled back together.

I signed and closed yesterday on this building. It will allow my company to scale into the high 8 and soon to be 9 figures based on the sheer ability to hold and distribute product. The equity appreciation over the next 5-10 years will likely double and its a win win all around.

That was the most stressful and intense transaction Ive ever done with every emotion thats possible to feel being felt. Just glad it turned out and everything went according to plan.

Never give up.

View attachment 41376View attachment 41377View attachment 41378
Massive congratulations!

I can’t believe you can buy at 60,000 sq ft warehouse for $8M! That’s like $133 per sq ft. Insane.

I sold our warehouse (~90,000 sq ft) space at well over $400 psf and it’s not in the city proper. Our real estate prices are insane. For now that’s good for me, but seeing your comp, I can’t help wonder “where?”.

Regardless, super happy for you. Love seeing such success stories here. True Fastlane. Happy New Year.

Edit: $133/sf correction
 
Last edited:

WJK

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
Oct 9, 2017
2,361
5,353
Alaska
I think most of us on this forum know that a degree is just the beginning of life. In fact, now that I'm 50, I would say that it was getting a degree (not including the paying for it) probably the easiest part of life.

I mean if we just look at Envision's last post about his $8M warehouse. What was harder and more stressful, passing a bunch of hour exams and finals or trying to get a loan and almost losing $100k. You can't just go to the professor during office hours and ask for help. LOL
I agree. Real-life can really be tough. And there are no "do-overs". You can't just re-do that situation like re-taking a test.

I went to law school when I was in my early 40s -- after my kids left home. During those years, I worked 50 to 60 hours a week in my career and I carried 9 grad units to get that degree. By the end of the first year, I knew I did NOT want to be an attorney. I finished the degree anyway. I use that education every day in my businesses.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Must Read Books...

Explore books recommended by MJ DeMarco and other members of the Fastlane entrepreneurial community.
Fastlane Bookstore
Top