All Forum Posts by: Chris Mason

 People that have "amazing deals" outnumber "people that actually have money to execute on them" by a ratio of 10:1 or 15:1. Usually b/c if the deal is so amazing, the money is rarely the issue, and b/c those people that do have the money thus get to cherry pick for the 1 in 10 or 1 in 15 that is the MOST amazing of "amazing deals." 

I obviously can't comment on yours specifically.

Go to the local REIA events, get in specifically with the folks doing the syndication thing.

 Question 1) 

You can absolutely get long term financing on good mobile home parks. My client had some things come up that prevented her from executing, but these were some of the options I had put together for her, a regional bank, a regional CU, and a national bank.

Reminder that NOI sizes CRE debt, and that's often what determines the down payment requirement, not anything to do with the client or particular lender, just the property itself.

If you have the ability to market and raise money, then you secure the down payment, and do the normal commercial mortgage process. LLCs are normal for CRE, so you divvy up the ownership interest how you and your capital partner(s) see fit.

What's your specific question? 

You might already be doing this, but you will want to reach out to dentists directly, particularly influential ones that know lots of other dentists. Like, oh I don't know, this list right here. :)

"Inflation expectations" is a purely rational and logical way to look at it, but let's consider that bond market buyers/sellers aren't 100% comprised of Vulcans, and that there are highly emotional and irrational individuals among them, as well. We actually CAN'T explain what we are seeing if we are operating on the "purely rational actor" hypothesis (as you implicitly observe), we MUST include highly irrational and emotional individuals to explain what we are seeing.

- Investor uncertainty. If I, as a bond investor, am uncertain about what the future will bring, I might just sit on the sidelines and not invest. In order to entice me to invest in spite of my hesitation, a better ROI must be offered to me. There's nothing that prompts inaction like uncertainty (in fact, hinting at demanding a stable 11 cap, one might argue, is a form of effective inaction, since we know how hard that is to find).

- Substitute goods. If I'm mentally and emotionally all-in on the incoming administration and think the economy is going to be amazing, best economy with the biggest hands ever, etc etc, then I can do better than gov't bonds, given the emotions I am experiencing. Maybe I'm no longer a low risk bond investor, maybe I'm parking my money in $VOO instead, CRE REITs, or perhaps higher risk higher return bonds.

Again, OP, if we're operating on the assumption that everything is about rationality and logic, then there is no explanation for what we are observing. The only way to explain it is to throw in emotion and irrationality. NOW it makes sense. 

You wrote commercial, but then talked about offices specifically. 

If you want some very broad strokes that are asset class specific, but not location specific.

Highest risk and return to lowest risk and return, offices is at the top. Extensively commented on, no need for me to add to it.

Warehouses is somewhere towards the bottom. If millenial homeowners can't even change their home's air filters, or snake a toilet, or change the oil in their car, that's guaranteed future business for HVAC companies, plumbers, mechanics, and those places all need a place to conduct business in.

The commercial mortgage pricing software I use has somewhere around 50 different asset classes in it. To say "CRE is X," but then only discuss offices, is overlooking a lot of stuff. Heck, even within offices, the small 1-tenant office buildings suitable for a dental practice or law practice, those are in a very different world. Apartment buildings, assisted living facilities, self storage, restaurants...

To be fair I'm not super up to date on the "uber of offices" concept that you are hinting at, except inasmuch as to say "um, didn't that idea kind of die off with COVID?"

My understanding is that the ballpark standard of "unless it would be outrageously tough" (something along those lines) is what applies if you're doing a rehab, seeking new permits, doing structural changes anyways, and things of that nature.

For existing pre-ADA structures, my understanding is that the standard is more along the lines of "if it can be easily/cheaply done, you have to do it." So the places we all encounter that don't even have a wheelchair ramp at the entrance (at the appropriate incline, etc), even though it would be relatively easy to put in, aren't compliant (envision a storefront set back 10 feet from the sidewalk). But the places we all encounter that could only have a wheelchair ramp put in that intrudes into the public sidewalk (which neither the landlord nor the tenant owns, and now the sidewalk may not be sufficiently wide or accessible for a wheelchair), or that would require tearing down the storefront's façade (envision a storefront right up against the sidewalk), are grandfathered in. 

Not an ADA expert, certainly not a lawyer.

The companies that market themselves as "garage door companies" (residential) also almost always do commercial stuff as well, such as what you are looking at. It's a fairly unregulated space (charging grandma $750 to puts around for 3 hours, after moving the old box from the horizontal sensor, which was the only problem with the garage door to begin with), so some combination of carefully reading reviews (you have to actually read them to make sure it's not 200 fake reviews), and maybe not giving them the full contract all at once, is in order. 

If you're more of a 'personal referral' person than a 'do research online' person, and this is local to you in Manhattan, KS, hit up one or two of the trades people in the "little apple all stars" BNI group. Click link, click "show members," pick whom you might think would have cause to need a good garage or overhead door person. https://strongchapters.com/ks-northeast-bni-little-apple-all...

GL.

 I'd say the logical paradigm in the question is a bit off.

CRE includes everything from airports to golf courses to hospitals to campgrounds.

So saying "residential versus commercial" is like saying "bacon versus plant life."

Are we comparing bacon to Christmas trees, to apples, to venus fly traps, to tomatoes, to grapes, to kelp? What does the question even mean? Bacon is more yummy than a Christmas tree, but I bet I'm going to have a whole lot less regulation growing Christmas trees... however, before we even get to that, it's necessary to know that the inquiry is even about bacon v Christmas trees, rather than Bacon v grapes. 

 In Godless California the listing agents on churches are always certain to point out the flexible potential uses of the property. Office, event space, wedding venue, warehouse, etc. They usually sell for a really attractive price because investment property financing is (obviously) difficult, somewhat limiting the buyer pool to owner-operator small business owners (who in turn are typically great clients, as well).