All Forum Posts by: Brian Poirrier

@Edit B. I worked for investors indirectly and in house in Los Angeles with various different complicated rent control code books to keep up with. It is a pain as an owner but I’ll tell you what I discussed with our main principals. If this occurs and more likely when it does, a few things will be important to consider.

If you are a current owner and are currently at or near market rates and competent enough to keep up with the annual increases you are in great shape and your value and rents will only increase no matter what as supply plummets for both rentals and sales and cash flow will dictate value. So in those terms hang on to what you have and keep up with increases, don’t panic and sell or you will see the next owner realizing the insanely higher than average gains you could have experienced compared to other markets. The only exception is if you’ve already owned say 10 plus years, then maybe it’s time to 1031 exchange into a great secondary market out of state with great growth potential.

The second main topic is buying investments in California is going to shrink only to buyers that must buy and are stubborn enough to stay in markets that are such high demand and are ok with say a 3% cap rate. Essentially if you’re looking for brand new acquisitions without an exchange I would honestly look elsewhere because it will be extremely difficult to make money on a new deal that has below market rents and everything possible working against you in terms of realizing market rate rents. The only slim chance possibility here is if you have experience and are well versed in doing cash for keys and evictions properly, which I specialized in during my tenure there but it’s not for everyone.

In short best of luck, but enjoy the pros you have and will experience for any current investments and I would only caution with underwriting new deals at that point but not to the point of suggesting a full exit of the market if you are or have a great skilled operator.

@Account Closed Thanks for the quick feedback, that would really be great if it was incorporated!

@Dave Meyer Did you or @Karen Margrave figure out how alerts can be used with the Marketplace?  Going both ways if I have a listing which I do, and I've added keywords such as these but after looking at other recent listings it seems my "keyword alert" only works for the general forums and I have not ever been notified about anything in the marketplace.  It would be great to both be able to be notified of new listings as well as if there was more data available to those who list such as who is viewing them.

Everyone has made great points regarding a few specifics but I would say no matter how good a deal appears you can never discount the experience, skill sit and focus of the syndicator/ operator.

A great operator will make a half decent deal great no matter the struggles but a novice operator can make a great deal sink at the end of the day.

I worked directly with syndicator clients and for a top notch syndicator for four years and what I learned from him is the team and system he had created to cover all ends is what led to his unmatched success and sticking to doing only one thing better than anyone else which was medium size value add deals although everyone will have their own definition of value add.

@Michael Deuel I would suggest around Columbia.  In most areas you won't be required to hold flood insurance nor need it and it's a solid area between the capital, universities, Ft Jackson, well known hospitals and other major employers, the demand is not going to disappear.

I would suggest speaking with at least three mortgage brokers in your area to get a better idea of if you would qualify or not as you can also get FHA financing on 2-4 units if you will live in one unit which is fairly easy to qualify for. Otherwise you're looking at just renting or a rent to own situation which both don't get him his equity or remove his liability. You could reach out to hard money lenders via this site but you the terms will not be as enticing as a traditional lender especially not having any experience as an owner or manager but if you think you can qualify to refinance within a year or so due to increase in income/ credit it may be the better option to actually purchase instead of rent but I would still exhaust your traditional financing options including FHA if needed to get started with your first investment property.

Nick is correct here.  For 90% of commercial brokers they will do everything they can to double end the deal through their own network and efforts and if due to problems or usually being the seller stuck on too high of a price then they end up on Loopnet.

Not saying deals can't be made from Loopnet with some proper negotiating yourself or with an agent at that point and if you look at CoStar data, eventually most of those sellers will sell closer to 90% or less of list price if it even sells.