All Forum Posts by: Bob Smith

Quote from @Bill B.:

If you’ve got someone offering $725k for a $4500/mo income you might want to jump on it. It’s way more than I would offer. Especially for a single tenant. If they moved out in the middle of the night because of the coming recession how much rehab and make ready would the building take and then how long would it sit empty?

 The only way I see $725k making sense would be if they plan to evict the tenant and move their business in or tear it down and build something else? Otherwise they’d get a better return buying houses. 

 Sorry. I failed to state an important fact. It is the tenant who has made the offer. The location is extremely important to their business.

This thread definitely gives me pause.  I wish there was more positive feedback from investors. :( 

Selling a single tenant commercial property to the tenant.  The property is rented for $4k a month (with tenant responsible for all repairs/maintenance but I pay taxes/insurance), on a long term month to month deal, and the tenant has offered $725k.    Could easily raise the rent to $4,500 as it would be a good deal for tenant compared to his options and haven't raised the rent in about 5 years.

In my mind it's worth about $850-950k (or worth that much to me) as it is a half a block past where current redevelopment efforts are. So it's just a matter of time before walking traffic will continue past this property. Plus, it has a large parcel next door that somebody could buy both and combine for a better use (like a small hotel).

The property is paid off.

One thought is to take his $725k since he can qualify for a loan at that amount but make the sale price $825k with a $100k low interest second.

Anybody have any other thoughts to try and bridge the gap?

Anything new to add here?  Would love to hear what syndicators people invest with and think highly of.

Quote from @Todd Dexheimer:

I personally have not invested with Ashcroft, so what I write below isn't a reflective upon them, but GP's in general: 

Make sure you're asking the right questions and looking at a sponsors underwriting carefully. Are they really able to achieve the projections or will they likely fall short? Right now, most cities are seeing a decline in rent prices and in occupancy and that trend is likely to continue. Is the sponsor reflecting that? 

I wrote and article on how to find good deals as an LP that may help: 

https://www.biggerpockets.com/... 

 This post caught my attention because it's so interesting what time does. A year ago, at least in your market, you could say rents were going down.  I have heard a lot of cities like Phoenix, Vegas, and Sacramento have had rents go up 25% just in the last year!  So, by that measure, their projections might have been off... but just they probably didn't assume a 25% increase. Lol!

Any updates on Ashcroft?  Anybody invest in their fund?  I was looking at their website and see they have a Fund2 I was thinking about.

Any updates on ODC?  Would love to hear how they are doing.

I was considering a property, that looked nice on paper, but their Yelp reviews are just horrible. Often I see PM companies that have bad reviews from tenants but they have bad reviews from tenants and many from investors. You never want to put too much into online reviews, good or bad but they have many bad ones. Not worth the risk to me.

Originally posted by @Ryan Swan:

@Bob Smith high 500's to mid 600's

Other features like a third bathroom or a heated pool allow slightly higher rates and/or contribute to higher occupancy as well. 

That's interesting Ryan. So let's say I spend $650k on a house in Scottsdale and gross $100k. Not holding you to this but roughly what's my net after Airbnb fees, utilities, taxes, etc.... About half!? I am putting cost of mortgage out of the equation for simple math purposes. I am just trying to compare, in my head, to buying 6 houses in Cleveland/KC/Memphis that would be gross rents of $75k a year +/-. You make a compelling case for a Scottsdale STR and that's way more fun than 6 homes in KC. What about management fees for managing the Airbnb since I am remote and not looking to give myself a job!?

Not sure it's clear but I mean long term rental not short term. I'd love to hear of sales opportunities and in the next month or two. Anywhere in US that numbers make sense.