All Forum Posts by: John Pestorich

First question for me is "What's the the deal?"

If the deal is good enough, the rest can be worked out.

Sara,

Depending on the location of your land I may be interested competing for the lease.

There have been quite a few good pointers already thrown out, but I can help answer any specific questions you may have and can give you some pro's and con's on some of the negotiable terms of a agri-development lease such as cash rent vs. gross percentage rents, landowner responsibilities, etc. If it is too far from me to be economically feasible to farm I can refer some reputable growers in the area as well, or make some calls to figure out any background info you may need.

Can anybody give a review of Psychology of the Deal?

I picked up a lunch tab for two Marines on Monday. They asked the waitress who payed and she pointed to me. They came over and thanked me with a nice firm handshake. Felt good.

Sorry I didn't see your question earlier. Some things have changed since then, but here you go. And not in Fresno. 2 bed 2 bath 1000+-sf, built in 1991. I have turned down an offer for 60k and have a sec 8 tenant wanting to move that currently lives across the street in the same floor plan paying $895/mo rent.

Purchase 54k
repairs 2k
seller credit 2k
50%rent 425
P&I 5.25% 290
cf/door/mo 135

That was my point, proforma = bs in my book.

Mathew Gil,

My earlier post cash flowed using the 50% rule which takes into consideration financing 100% of the purchase price.

If you were to buy this house cash, it would be returning about 21% annually without taking expenses, vacancy, etc. into consideration.

I have some clients of mine looking at a 2006 built retail center in the Central Valley of CA, fully leased with NNN tenants on 4-20 year leases with a cap at 6%. This thing would've sold at about 4.5 - 5% a couple of years ago. Everyone around here is still asking 7-8% on retail centers, pro-forma of course.

I believe so.

I found a sfr the other day that cash flows $97 a month using Mike's 50% rule in the Central Valley. I have looked at a lot of houses in my career and this is the first one that I have found. Plus it was built in 1991 and is in great shape, with a quick vaccuming and wipe down in the kitchen I could move into it. I would have never thought it would happen here, but I plan on getting as many as I can.