All Forum Posts by: Arun S.

Para #1 of your post: Doesn't this introduce volatility in terms of cash operations for you. How would you handle en-masse withdrawal requests or is there a preferential gating system in place?

Para #2 of your post: Can you help me understand your statement of a lower rate enhancing your current business model because wouldn't a increased yield in today's time drive more investment $$$ to your fund. 

I'm looking to making a initial investing with PPR Note fundbut I wanted to wanted to get few opinions from folks who are still invested with them.

What's your take on where the 'note investing' market is @ right now and especially is it good for a new investor to get in even though in my case I'm going to be investing with their fund and not the notes directly.

Their current return is 10%. In this thread - even though its couple of years ago - the interest was at 12%. Does this falling yield indicate that its better to wait for the next downturn to get into this space?

While I have seen only good things said about PPR, one thing of concern is that even though they started  during the great recession they do not have a track record of weathering one. As part of your DD,  how did you tide over this question?

Does the fund invest only in 1st lien positions?

What do you feel about their reporting when it comes to how the fund and/or the notes in the fund are performing?

Pls free to chime in with any additional takeaways from your DD.

Thanks for your time.

@Account Closed But, what does the market offer?

So, what's the cap that I should be looking for with healthcare properties?

Hi,

I've been looking at buying a investment property for a while now in the greater boston area. Been looking at SFH, multi-family and commerical properties. For commericial property, I'm in the hunt for <$500k w/tenant. I came across a medical condo that listed @ just under 200k with a cap of 8%. I will be taking a loan to fund the purchase. I started talking to the agent and so far have the following info:

Tenant is a diagnostics company that its run its collection center @ the property. Tenant rent is ~30k and pays portion of the condo fee and utilities. Owner is responsible for the remainder of the condo fee and RE taxes. NOI is listed @ ~15k.

Tenant has been @ this location from November 2008 (Owner also brought this property just before the tenant). Tenant has 3-yr lease term the last of which they extended in Feb '15 (till Jan '18). 

While matching the cap rate to the listed price makes sense, I see the following issues and I'm trying to understand how do I provide an allowance for those to arrive at a price that matches the risk-to-reward ratio (if you get what i mean)

1. Tenant does not have any more renewal options left.  Tenant previously had another location within the same town. So, I'm worried if they leave then I'll have no cash to pay for the mortgage. So, how should one adjust the purchase price to account for this risk?

2. Land is on a 50-year lease (~150k/yr) with the town with another 20 years left on it. While I don't know if I'll hold it till the end of the lease what are the kinda questions that should I be asking to understand the implications of it. If anybody could also point me to article or information that throws more light on this then I would really appreciate.

3. I saw the meeting minutes of year 2013 and 2014. Even though the condo has been in existence only for 20 years (previously it was a a school) I see that in these meeting minutes a recurrence of issues with the elevators. While the last 2 repairs were done with available funds, I see that their account is now going low. Could special assessments be levied for repair works like these? I'm trying to get a sense of whether the income will be eaten away by such costs.