All Forum Posts by: Chris Snere

If I can get out of my 5pm early enough I'll try to be there.  Thanks for putting it out.

North and East of 30th and Ames is pretty rough. 

not having MLS access I use zillow. Go off the actual sales price/date, not the "zestimates", those are generally WAY off in my experience.

my specific goal is to maximize cash flow with minimal risk in the most tax efficient manner possible. My goal is to maintain and grow inter-generational wealth outside of simply stocks and insurance policies.

Joel,

My guess you are absolutely correct that it is NOT a deal at 6.5 CAP, hence why it has not sold!

The property speaks to me because I do like the location and I like the idea of one extremely credit-worthy renter for a long period of time. But I can see your point asking "why this property?" when there are triple net properties with better returns out there!

Thanks again for you expertise.

@Joel Owens, thank you for the reply. The property is in an income tax state. Totally makes sense a lender would not count the second 10 year period (nor would I).

The property is considered "office". I do not have the full data yet to answer he rental increase question. I will definitely find that out.

The second ten year of the lease is a risk to be considered for sure, additionally I understand having one tenant is a single point of failure but part of me really likes the idea of dealing with one larger "customer" as opposed to a multitude of smaller.

There is an interesting opportunity available in my market, I'm curious to hear your thoughts.

- new building 2012/2013

- Full service with base year expense stop lease structure. (I understand that means the owner/landlord pays all utilities/maintenance)

- 20 year lease in place, ten firm

- $488K est NOI

- at a 6.5% CAP that puts approx value of $7.5M

Am I missing something? It is a brand spanking new building with a solid AAA credit long term tenant. It has been advertised for awhile now. I am a little surprised no one has scooped it up.

Curious to hear your opinion., thank you!

BS Finance - Thank you Navy/Taxpayer

MBA - Thanks again Navy/Taxpayer

Looking to get RE license so I don't have to go through an intermediary for buys..

Paul,

I'm pretty new myself, but I can speak somewhat intelligently on a few of your questions.

First, very smart on you for using your (I assume) Post 911 GI bill. It's the best deal in town I think you are pursuing a terrific major. I'm a few weeks from finishing my Masters and all six-ish years have been on Uncle Sam's dime.

ok..

1. Like previous posters have said, the VA doesn't actually make the loans, they guarantee them and the big kicker is the 20% down payment is waived (and PMI!!). I have not used the VA loan yet, but I intend to on my next property and roll the equity in my current house into a couple rentals. It's a powerful thing freeing up equity to use for investments. HELOCs are tough to get so the VA could be a good route to get a place to live, build SOME equity, and free up your cash for investment properties. If you plan to move around, though, I'd probably just rent.

2. I have to disagree with Andy in regards to USAA. I've been personally using their services for banking, mortgages, insurance, etc. and I have been nothing but thrilled with their customer service.

3. I wouldn't worry about owning in cities other than where you live, as long as the deal is good and can cash flow INCLUDING property management costs. I actually think it is a good strategy to own properties in places you like to visit or where family lives. Part of your trip can then be tax deductible (consult your tax person)

3. Hotels are probably a good long term goal. They tend to have low failure rates, at least the franchises do (check entrepreneur.com) Problem is you are playing with the big boys and NO franchise "gives you money" quite the opposite. You give them A LOT of money, and their net worth requirements tend to be prohibitive to the small guy (read MILLIONS).

Done rambling. Good luck!

Owen,

I just got started on BP and saw you are in the Omaha area. How has business been since '08?

Cheers,
Chris