All Forum Posts by: Danny N.

sounds about right I don't know how high the government goes in paying. I have a lot of rentals but 1 is section 8. I paid $50,000 and get $530 from the government and $500 from the tenant so $1.030/mo. See how much you will get from government bc I've owned this for 8 months and 4 have gotten no money from the tenant,it's annoying but I don't put my foot down bc I have too much going on in other ventures. He is leaving next month and I rented the place already for $1250 so I don't mind it's over and done with now. 

Im putting my vacation home up for rent, we aren't going down to miami much anymore and id like to rent it out. The condo is 1 of 6 in the entire building of 200 with an ocean view, that is bc its on the top floor and all other floors are blocked by a building in front of ours. Other 800 sq ft units are renting for between $2800-3000. What would you charge for a top floor with an ocean view that the others dont have. I spoke with a realtor today and she said maybe $250/mo more but that makes no sense bc if I was to sell the condo I would get probably $200k minimum more than a non view unit, so why would the rent be nominally higher?

Just looking for advice.

Sure on average, but if you have an incredibly prime location its lower, there's a chick fil a here in houston brand new, in a very prime location asking 3.75%

Look your gas station for $2M no offense is a bad deal at best you're talking a 3% NNN cap rate. I own alot of gas stations, I have one where the tenant pays me $12,300/mo in rent and I have it listed for $2.75M and thats double the rent you have and in a high traffic area of 50,000 CPD. You're selling just the property right, not the business?

Either way even at a high 5% cap rate your stake is more like $630k and realistically being in that business myself I'd say your stake is worth more like $400-500k. I own some really big stores, the kind of store you're talking about isn't even a large store from the price you're mentioning.

Im assuming under 2 acres and under 5000 sq ft store? Business wise I assume the guy doesn't even sell 100k gallons a month at that price? Under $100k/mo grocery sales?

Sunoco isn't one of the brands people want when buying stores: shell,exxon,chevron are what the big buyers want, I own multiple shell myself and I wouldn't touch a sunoco,valero,7-11, etc

Best of luck but the cap rates your mentioning just dont work with a gas station. 3% is more like a walgreens in a super prime location, not a sunoco gas station

Why not just have the tenant arrange the financing since he knows what the business is worth, surely he would pay more than anyone else. I've owner financed to tenants in the past when sales weren't probably, you get a higher interest rate and they're willing to pay more + you have a history together. I think that may be your best option. You really can't value 20 years of rent the way you are bc in 20 years $2,650 will be peanuts, its already not much today, the time value of money has to be discounted drastically when doing future valuations.

Thanks franco, i was planning on contacting one tomorrow, I just saw this closed sale now on realtor.com. In your opinion what type of premium does a view add over a non view? Or increase per floor? Do flukes happen in real estate or is this now a legit comp to reprice the whole building?

So I wasn't thinking of selling but now due to a recent sale in the building Im interested. It is my condo in miami had never had an 820 sq ft unit sell for over $530,000 coming into last summer. Yesterday one closed for $635,000 on the lowest floor without a view at all, it had a modest 250 sq ft terrace that only the bottom floor units have. Anyways with that comp in mind now, being that its on the lowest floor and has no view, I have the same floor plan on the top floor with an ocean view, granted its 1 block away from the ocean but you still see the water clearly. Its just weird bc similar units sold for $490k-530k all last year then this guy lists his near $700k and got $635k bc nothing else was available. It blew me away and got me wondering it it was a fluke or if I should sell mine bc the comps have changed completely now

If I wanted to sell it, what would you price that unit at knowing its

1)top floor vs recently sold bottom floor, my balcony is only 40 sq ft, its small 

2)Amazing ocean and City view vs no view

3)otherwise its the same maintenance fees

4)I have 1 parking space, that one had 3 but parking spaces are readily available for $100/mo for whoever wants, none are for sale, rent only, but I dont know what they're worth

Thank you

The thing is he had proof of funds, it was cash in an italian bank but I think the guy just wanted my unit off the market while he looked at other units the way he was acting. It was annoying that he wasted an hour of my time the day after the contract was signed while I sat in the unit while he and his designer were measuring everything. Then I come up with a solution to his short term financing issue and he agrees to it, then his agent still acts immature and ignores us for another 24 hours before saying no. It really left a sour taste in my mouth, thats not how business is done, its fine to change your mind, but just say it

Long story short last friday, someone who lived in my vacation condo building signed a contract to buy my place, and my realtor suggested I fly down to miami to look at new places. I bought tickets for the next day to go over and find a new place, I spend saturday and sunday looking at new places and the buyers realtor tells us the deposit will be there first thing tuesday morning when banks open. The buyers realtor asks if his client can come by with an interior designer to measure our place to buy furniture bc he's headed back to italy and wants to make sure they have everything before he goes

Tuesday comes and the buyers realtor tells us his client cant close for 90 days bc the money is in italy and due to some investment rules or whatever the money needed 90 days. So later that day, I run into the buyer in the building since he has a smaller condo in the building and was just upgrading. We stop and talk for a second and I propose a deal where he would give me a nonrefundable deposit and in turn I would give him the 90 days he needed, and the buyer was ecstatic and said thank you and he would 100% do that and his realtor would begin the paperwork.

I call my realtor and she was thrilled we were able to hammer out a deal, then the next day, the realtor for the buyer ignored us all day long and then finally at 5 pm texted my realtor and said they would be cancelling the contract.

Was my realtor supposed to take a deposit when the contract was signed? Was it unprofessional of the buyer to give us all these stories about not being able to get the money, then agreeing to work with me if I took it off the market and gave him 90 days only to ignore us the next day and still say no? I just feel deflated bc it now makes me question when do I move forward on the next offer? If I wait for the 15 day inspection period to finish before beginning a condo search then I wont have much time to obtain financing and close within a 30 day window or whatever a buyer would want

How would you go about selling a vacation home in the future and making sure the buyer was serious, would you immediately require a deposit?

Im trying to see the difference between a $500k 4.5% 30 year and a 3.76% 7/1 ARM but cant seem to find a calculator online. Im trying to finance a property coming up and was quoted $2500 or so for the 30 year at 4.5% and was told 3.76% on the 7/1 ARM but no payment number. It's a vacation home thats why the slightly higher rate on the 30 year. Any idea where I can see a calculator for the 7/1 ARM? Curious how much I would save on the payments and if it was worth it.

Thanks wayne, condo i guess my big holdup on not diving in is the abundance of foreign money in the high end of the miami market. Russia,Venezuela,Brazil, etc are the majority of the buyers at the high end and I guess the worry with me is potential trump headaches for those guys and if their money goes away in the 3-4 years the building reno would take.

From an investment standpoint what do you think a 15-20M total reno of the pool,lobby,grounds would do to a condo trading currently at $750/sq ft in an area where $1200-2000/sq ft is the norm