All Forum Posts by: Jared Viernes

The “pro forma cap rate” for commercial properties will most often be created using what the potential rents could be rather than what they are. When purchasing you should never pay on what the rents could be but rather on what they are. You will need to do your own due diligence when figuring income and expenses and should get what is expected off of that. In Wichita we haven’t had a commercial information exchange (CIE - the commercial version of an MLS) so loopnet and broker to broker info exchange is how business has been done. Thankfully, the local realtors associate voted to create a CIE and we will be getting one next month. This will now make it much easier for agents and brokers to share and maintain information so cap rates in the area will become more transparent to realtors. As of right now your best bet on getting cap rates for particular property types is by contacting commercial brokers or commercial lenders.

Congrats on the new 16 unit!

One issue with online lenders is they are notorious for failing to do any up front work and financing often falls apart; therefore, if you submit an offer with such a loan it will often be seen as a less strong offer with an experienced realtor who may advise a seller to take another offer. Especially with a VA loan (also seen as less strong due to minimum property requirements required during VA appraisals). A strong local lender, while somewhat more costly in interest rate (sometimes); may help you present stronger offer. Important to note in a sellers market.

Amy Acuna if you are looking in Wichita, Maize and Goddard (west side) and Andover (east side) are the high end areas with better schools. You will pay for that with reduced cash flow however; long term though there is a lot of growth opportunities. Andover particularly has a lot of business growth going on right now.

Lea Lenz if you have signed an exclusive agency agreement with the realtor and brought the property to their attention then legally they are required to act in your best interest. Bringing a deal you brought to their attention to other buyers is a pretty clear violation of that fiduciary responsibility. If you haven’t signed an agreement then legally what they have done is perfectly fine; though, ethically I personally would not be comfortable with it.

Welcome, if you find yourself in Wichita or wanting to see what’s available on MLS here hit me up!

Wow this is an old thread. Congrats on getting a property under contract Bradley Hellman

Have you looked into trying to move your money into a self-directed 401k or IRA? That way you can invest in real estate without creating a taxable event.

One more thing there is a minimum time period requirement to live in a home. But PCS orders waives this requirement.

Sierra Eberle a few things about the VA loan. 1) You are correct in that you need to be an owner occupant to purchase a home with the VA loan. You do not however have to sell the home when you are given the orders to PCS. In fact, if you haven’t used up all the benefits you can use you “second tier” benefits on a different home in your next move. In places like California, Florida and Hawaii though you normally use up all your benefits. So I’m that case you would need to refinance conventional and apply to reinstate your benefits. 2) Most people don’t understand there is a funding fee requirement on the VA loan; this can be between 2-4% depending on how you earned it and how many times you have used it. This can be rolled into the loan, however instead of being paid for up front. 3) You can ask the seller to pay up to 4% towards closing and loan costs. Often actually paying nothing out of pocket except the initial earnest money and sometimes receiving that back! 4) You can purchase a “distressed home”; but they are notoriously hard to do so. There are certain Minimum Property Requirements the home must meet - the short is that it must be safe, structurally sound, and sanitary; ugly is fine. My suggestion is, if you are unable to find a good MFH to purchase. Buy a SFH that will work as a rental when you PCS.