All Forum Posts by: Jeffrey Mcintyre

@Juan Vargas thanks for the additional input. based on your response, I can I'd say that Due Diligence along with a well thought out proforma( using different senarios) is key--thanks!

@Omar Khan Based on your response...how typical is it for a CRE Investor to utilize Bridge loans for such a task?

Todd ,

Thanks for the thorough response, very-much appreciated!!

Hello BP members,

* tried searching BP for a definitive answer and couldn't find one*

* I need some help understanding the process of moving from Bridge-loan to Traditional-loans*  I'm practicing running proForma-charts and evaluating properties ( * using fake Examples to drill in the concepts*).

Can someone explain how exactly would one transition from a Bridge loan to a more Traditional loan?

For instance, If I acquire a property using Creative Financing ( Master-Lease etc..) and were to get a Bridge-loan based on the Asking price of a property, I would then use that money to increase value ( renovations, CapExpenditures etc...).

...Now when I've stabilized the property  and I'm ready to move to a traditional-loan, Can I use the money from the Bank's traditional loan to pay off the Bridge loan?...what can be done if the property isn't Cash-flowing enough to provide the bank with a down-payment for the traditional-loan?

In addition: I would assume that it would make sense to use the same lender for both the Bridge and Traditional loan, correct? 

Any assistance would be greatly appreciated.

@Basit Siddiqi Thanks for the information. I was unaware that there were many different methods used...can i assume that the methods used is dependent on the State? 

Stanley, Jonathan

Thanks for the input. much appreciated! I was so lost..

Thanks again!

Hello,

I was reading a book on Cash-flow and came across a topic on depreciation.

I understand what it is and how to calculate it for a commercial property.. however I'm unsure how locate the value of the land a building sits on so i can determine how much of the Building can actually be depreciated...as per the book I'm reading..the land is worth about 15% and the building is only worth about 85%......so for instance, I can only depreciate 85% of a $1,000,000  commercial property over 39 years...can anyone tell me where I would find such information to determine the value of the land so i can accurately calculate the depreciation?

I know this thread is old.. hope he finds you well.

Correct. The longer the length of years to depreciate, the less you can deduct from your taxable income (NOI)...for commercial ( 39 years). a shorter length would be favorable; it increases the amount you can deduct from the NOI which essentially means less taxes taken out.

David,

Quick question, whats you take on Real Estate investors jumping into the business, "Learning -As-They -Go", over spending some time educating themselves to THEN implement what they've learned?...I'm  afraid to end-up in a state of "Analysis  Paralysis" ... granted i've only been studying for about 4 months..and i don't know if thats a long time or not.

Since you're an experienced investor...in your opinion...whats a reasonable amount of time to be studying to be a real estate investor?

I only ask because I've searched the internet day and night, reading forums from people that have been investing and they don't understand some of the foundations of investing( key-terms)..I find that some of these individuals were the same ones who jumped in and made unnecessary mistakes that didn't have to happen if the spent a little more time studying. 

David,

I got the book a few days back and so far its been an Eye-opener.....I can definitely see how calculating NPV can save a company from wasting money on a project that would not earn them any money, or maybe even cause them to lose money...wow..if it wasn't for your post I would have never took that into consideration.. I'm quite certain that after I finish this book , that my confidence in Commercial RE investing will increase.--thanks again.

I also see that he has "Secrets to Financing Your Real Estate Investments" --what are your thoughts on that book?

this seems to be the case with gurus that promise to be "on-call"...how are new people itching to get into the business when there are so many Gurus' taking advantage of people...it almost seems like you have to be part of a special 'group' to finally get in...