All Forum Posts by: Mike B.

My sister and I are looking to JV in 2021 to purchase a value add CRE property. Originally, we were looking solely at MF, and while we're still pursuing that asset class we've been researching more about the other areas of CRE, such as self storage and light industrial. We'd like to stay within the commercial space, as we can see the power of the CRE valuation method coupled with a value add strategy, but would love to hear some feedback about non MF opportunities. As we know, the multi family space is intensely competitive and pretty crowded, so I was wondering if there are any other niches out there that folks have been able find success in

@Kai Van Leuven

Fantastic advice

@Kai Van Leuven

Kai, with cap rates in the MHP space as compressed as you describe remember that at a 5 cap every dollar you drive through NOI is worth 20x. Are you sure these guys aren't buying parks like this not for the immediate cash flow but for the value add?? That would be my suspicion

@Hamish Simcock

Can you provide any more details on the property, such as how you found it? Price paid?

@Hamish Simcock

Hamish where’s this at in Wisco?

@James C Clark Jr

In my former life I was a tree nerd, and spent loads of time building sawmills, reading about forestry, and milling lumber. As to value I’d trot out the old cliche: it all depends. In my area, even a few high grade walnut trees can be worth thousands of dollars. In fact there was a tree down the street from me behind a tavern in the heart of the city that was harvested for veneer. Looking at the predominant tree species in SC however, I’m not seeing too much of value, but one never knows. Old growth pine could still bring big dollars, so you’d have to see

@Philip Cook

Welcome from down here in Madison

Good thread. My experience of the Madison market is that it lends itself towards a "buy and hold" strategy, with steady appreciation over time. The rent to value ratio from the properties i have analyzed is typically .06-.08 with SFH on the lower end and 2/3 flats on the higher end. I have 2 sfh in that .06 range now but looking to diversify into some cash flowing units. Looking at Evansville/Janesville/Edgerton/Stoughton areas

Hi Stephanie,  did you ever pursue the idea of investing in Madison?  In general, the Madison market is a "buy and hold" type of market.  While it has many positive attributes, the Madison market is not favorable if you're looking for immediate cash flow in my experience