All Forum Posts by: Asif Aman

Thanks @Daniel Gutierrez . Me and my partners have the 25% down-payment. We have made an offer and are starting the due diligence. If the cap rate turns out to be lower than what the seller told us, we will back out. We will use a management company to manage it and are taking that into account in our calculations.

I wanted to ask others if the higher cap rates (assuming they are correct) are reflecting a greater perceived risk with the commercial.  

When I look at loopnet, I see much better cap rates for commercial properties than for residential properties (analysis done on Zillow, rentometer, etc.) Are commercial properties a better investment in the Triange or NC in general currently?

@DuBeaux Dingle it's worth mentioning that most people at BP think of REI as BRRR or something creative, which is high risk and high reward. But regular REI ROI is pretty close to the stock market, based on a study done looking at the data from many countries going back decades. Someone had written an article on BP citing that study.

@Uriah D. Do you know someone who can help me look at these properties?

@Uriah D. What do you mean by .7 or .8?

Congratulations Josh! An inspirational story!

@Chris Martin you have to pick between cash flow and appreciation, generally. I know there’s some level of speculation with appreciation. I think going to the surrounding areas of the triangle would give you a good combination of both. Of course, no investment is completely risk free.

@Alifiya Patrawala you haven't mentioned what your broker told you about the expected ROI. I would try to estimate that first.

The hotel option seems a lot more passive, so I would take that into account.

I have seen some prices come down in the Triangle, so it’s worth waiting for a few months to see how that works out.

Thanks, @Dan Handford. It's a balancing act, in my opinion. There is an opportunity cost to sitting on your cash, too.

Thanks, both, for the replies. I agree that waiting for the perfect time to enter the market could take a long time and even then it's hard to know where the bottom is. 

I am still doing my homework. but in the meantime, I will continue to learn about the market here.