All Forum Posts by: Paige Kelsey

Hi Ryan and Joel- yup so on that first one, I filled it up with leases and then sold the commercial. Or.................. get the loan 5 yrs  and build from there . You should be making quite a bit of capital back out so you should be fine to make these numbers work. IF ........HOWEVER, it is your first you can always do what I did, panic your way out and make a sizeable amount of cash on the first one.  Please note that this was my experience as an investor and is not what I am suggesting as a broker as I am not in your market and every deal is different.

You should be able to get a 10 yr am at 20-25 yrs  on the commercial at 5 + %. I was able to get that in Dayton Ohio on a portfolio of 13 doors from a local credit union. I actually ended up doing something else but.......10yrs  is a good amount of time   

Good luck in the C Springs market, it is on FIRE right now!!!  Be ready to go 15-20 k over asking and homes are going in a  day.  In fact just yesterday, my friend just got under contract . The home  had 18 showings 7 offers and her deal was paying for closing,  and going 20k over!!! The Denver market going soo hot has had a huge impact on the CSprings  market and many of us who have properties there are holding as we think this gonna continue for a while. Sure, if you are coming from California it will seem like a great market for sure but it is CRAZY competitive. My advise would be buy more than a 4 plex - go with 5 and over if you are going with multiples to cut out some of the competition.   Please do note though that if you do that,  Commercial is not like residential where you do not need a broker.  Only some properties are advertised by brokers on Loop Net but a ton more  are advertised just through Costar or never actually hit the market as the brokers just have these and advertise directly to a group of their own investors and sell right away.  Only brokers have access to COSTAR. Let me know if you want a great commercial broker. The best one in the Springs, taught me everything I KNOW and is the whole reason I got into commercial in the first place.

Best of luck!!

Paige  

Each week I go to Investor meet ups and I am shocked.! People are sooo desperate to make deals work in Portland are flooding into Vancouver trying to make the numbers work here. Don't get me wrong, I see why. Prices are through the roof in Portland. Vancouver on the other hand is just now building on the waterfront and is throwing in 1.5 Billion dollars to do so. As a commercial broker though, I wonder.............. What are people doing still hanging out in residential? 

2 thoughts........

BRRRRR of Commercial Real Estate-

How would you do this?  You could get a small business loan which would get you a loan of 90% loan to value. It would require that you owner occupy 51% of the building  but the other 49% lease it out and pay the payments with the proceeds.

Option 2- Two of my flips- I bought old homes that were zoned commercial- got residential loans on them, I MOVED in, fixed them into offices and one to a vacation rental and later flipped. We can't keep small office space on the market.

There are soo many older properties and possibilities just ten minutes from Portland, why AREN'T  more people trying to go commercial rather than just beating their heads against a rock on equity plays in Portland. Love to hear your thoughts        

HI Dawn - I am in Vancouver Washington and would be happy to help. I am a commercial broker and an investor. Yup self storage is amazing but is also difficult to find. I am however out there each day talking to owners and there are times when people do just decide to sell. I am looking to be there when they do. Let me know if you want to chat more.

All the best!

Paige 

Hi from Vancouver. Just wondering if you ever got an answer to the 7 unit insurance  question and if you made into investing here?   

It depends! What type of property is it and where in Vancouver.- Multifamily is very different than getting in business tenants. 

Hi Irina I am a commercial broker here in Vancouver and can certainly help at least get you more info. The market is exciting for sure in Vancouver with several things happening on the water front. There are opportunities for multi family here but they go super quick. There are also some good opportunities in commercial which it is nice as once you get it leased or buy it leased the leases are much longer and tend to be a nice stable investment.  Happy to chat with you more about the market here in Vancouver and about your goals. Let me know.

All the best!

Paige  

We have 6 vacation rentals in Manitou and the Colorado  Springs- There are over 1000 listings in the area now so we are definitely topping out. I can tell you from 8 years ago prices have fallen not gone up.  Yes you can do well in the summer, that is true but covering the mortgage will be a goal in January. Bottom line is it depends- it took us a while to get a cleaning crew that can do the turns at a level that is museum ready. You would be surprise and what can throw you off. No washer dryer would be a real problem - Getting a house licensed in Manitou - forget it! We have done that now 3 times and they now have super strict zoning that prohit any new rental not to mention the fact that they cant be within 500 feet of another property that is a vacation rental- measured by the distance from the furthest point of any property line. It is intense for sure. Don't get me wrong- the returns are good but.........  you earn your money for sure. If you are doing the work yourself then be ready every time a guest cant get in, propane has to be refilled, extra sheets were needed and cant be found, they had a dog that you didn't know about and there is hair everywhere and you have a guest checking in, they smoked weed or cigarettes in the home and you cant get the smell out, the sewer backs up, the dishwasher breaks................ good times friends!! Good times      

do any of the companies that you guys know of do section 8 or Miami Valley ?? Also, I am really in need of some repairs on one of my units.....nothing too major but yes touch up paint, clean out a new interior door, but the property management that I currently have wants a ridiculous amount. Anyone know of someone who could either do the work to get a unit back on the market or know of a better rental company?10$ to change out a light switch cover uhh no thanks but I live in Portland Oregon so I cant so much do it myself. Please help!!!