All Forum Posts by: John Green

@Erica Larence thanks for the feedback. Do you think lenders will eventually come around to it? Or is there no real incentive for them to yet?

@Jaysen Medhurst thanks for the feedback. Those are great points. I’ve struggled with how to evaluate it... more like an apartment complex or as individual homes has been my hang up. Your points are clear on how the buyer should view this deal.

 Interesting. Thought there might be more than meets the eye. Thanks for the feedback.  

Anyone been doing these or been wanting to do one? Seems like a no brainer but not seeing many folks doing it. 

 

Fair question. Based on the offering package the asking price is simply a sum of the market value's of each individual property. The resulting cap rate is 6.3%. I should also mention that management fees aren't included in their NOI. I should include that in my numbers correct?

As for cap rates in my area..7.5%-8.5% depending on location. This particular portfolio covers a wide range of areas. 

Haha I agree! Thanks for the feedback. 

Asking price - $2,000,000

Gross Rental Income = $199,800 (92% occupied)

NOI = $126,000

I'm getting to a MAX of $1,500,000.

Let me know your price! 

I am looking for feedback on what title and closing companies can do better. What would make the process easier? What makes you choose one company over another? What do you wish they would STOP doing? Would you be interested in e-closings, where available? What about a flat-fee closing? 

Looking for any and all ideas to improve the process and experience for investors and buyers/sellers alike. Thanks in advance. Look forward to hearing some feedback!

Thanks all for your comments! I think I have better dialed in what a reasonable purchase price would be (which is quite a bit different than what I was thinking!) 

I am looking at doing my first commercial real estate deal and I'm wondering if it is common to put a risk factor, based on vacancies, when evaluating the purchase price. In other words, the shopping center I am looking at is currently 100% occupied but has dealt with some vacancies over the past couple of years. When figuring NOI and Cap rate do you assume the shopping center is 100% occupied or do you put a risk factor on it, say 15%, which is about equal to one spot being vacant. Does that make sense?