All Forum Posts by: James Hamling

No..... No, no, no. 

Look, were talking Commercial Real Estate now and that is a completely different universe from what 97% on BP know or ever speak of. Parts of it are similar to SFR, some aspects translate, but they are different worlds in different universes.

See, in SFR (1-4 unit) the primary driver to valuations is comp's, market sale comparable, what so-n-so sold there place for last week/month etc..

In Commercial, nobody gives a squirt what so-n-so sold at other then to laugh at, or with them. 

Values in Commercial are a RESULT of the factors that formulate it's financial performance. 

Have you noticed on BP thread after thread about assorted syndications suspending distributions, going belly up, taking measures to prevent going belly up? 

The existing performance of those properties may be a-ok. They may have same rents going, same maintenance, same vacancy, nothing changed there BUT change the financing and it changes EVERYTHING. 

Most Commercial is on terms up-to 7yrs. That's the general rule. And 5yr is rather common also. So, those who have been hit with there financing adjusting to triple and quadruple the money cost, slingshotted from life in the green to being deep in the red. And then add a sluggish market where they can't raise rents to compensate...... 

So if I had to pick just 1 thing as "the" biggest thing in Commercial space to monitor for determining biggest impactors to market prices for MFH, without doubt it's COST OF CAPITAL. 

You can literally change the market price of a property by millions with just a few percentage point change. 

SFR is very different in this regard. SFR is far less impacted by such, mainly because the debt being capitalized over 30yr terms vs, 3-5-7.

So unless the Fed is willing to start dropping hundreds of basis points at a time and without doubt unleashing a significant inflation "spring", or Fed's stepping in to convey some form of CRE finance relief something...... well the math is clear, Q1/Q2 '25' is gonna get real interesting real fast for Commercial Properties.

I know many who have been stacking capital, serious capital, for this exact reason. 

I think the "sweet spot" is going to be getting in early, right as the "pain" is first being released and as all the big $ starts doing acquisitions. 

But again, were talking full-out Commercial right now. If your patience is not measured in Quarters and years, your not cut out for CRE. It's a whole different timeline.

I am confused here @Julie Peak.

Not only are you presenting yourself as a real estate agent in-market, but a real estate Broker. Yet, the things your saying STRONGLY sound that you have absolutely no clue what your doing or talking about. 

There is so many "red-flags" here I am not sure where to start..... 

- you state it's an "executive" townhouse. Yet state $349,900 as a market REJECTED selling price. That is nowhere close to "executive" level pricing.     I most recently sold one nearby, a REAL executive townhome, 3br 3ba 2,800sqft in the $700's. 

Median home price is over $350k. I have no idea what makes you think it's an "executive" level residence but the price and market rejection clearly states it is NOT. 

- You not there is a GIANT supply glut of listed properties to this one, and then speak that your priced lowest, as if that's any kind of anything special. Anyone of experience we know that's called a falling-knife. 

- A 6 month renter is NOT something one gains on demand. And in this market everyone knows 12 months is the standard minimum for a standard tenant. Most anything less requires unit to be furnished. And even then most between 3 months and 1yr are corporate rentals and at that rare. Again, not an "at demand" a person can readily get, especially not in Victoria. Minnetonka, Excelsior is generally the western boundaries for such. 

- Waiting to next spring does not mean that which is solidly rejected now will later sell. You'd have to understand WHY it's not selling now, and that this reasoning would be alleviated at that time. Not just a change of seasons. 

- Your investor idea...... Are you kidding me? So you think an investor will pay what retail market has rejected? Seriously, do I need to explain this?     And no mention to the numbers which is the singular reason investors make a purchase and by which purchase price is formulated. 

- Then the mention of could you get a 10% down mortgage to buy it as an investment property.... You hoisted a giant "I have no idea what I am talking about/doing" banner right there. 

I can not comprehend how someone of such total inability and lack of knowledge is a real estate broker, or presenting themself as an agent in any capacity. You clearly don't know what your doing and should NOT, by the rules and codes of NAR, be a primary listing agent on anything right now. At this level of knowledge and experience you need to be a co-agent and learning the ropes of things under an experienced person who can guide things.

I'd generally say nothing but when see your a licensed BROKER.... You need to do the ethical thing and inform this person that your not of the correct knowledge or skill level to best represent this transaction. 

Ok, to cut through all the OPINIONS flying around with some FACTS. 

Actually, YES, not only MAY the act of simply showing a property factually create "procuring cause" and be inclusive of a protected list, BUT just the action of having sent an e-mail of the listing, client having opened and seen that listing, not ever setting foot on premises, YES, that alone CAN be "procuring cause" and LEGALLY include such property into a protected list. 

Now, that said, EVERYTHING is subject to the terms of the representation contract one signed. And those can range WILDLY. 

So, the ONLY accurate thing any of us can say to this is "read the terms of the contract of which you entered". 

This shouldn't even be a conversation. If you don't like the terms of agreement, don't enter them. Find another, or go it alone and suffer the price of arrogant ignorance. 

As the Judge said to the defendant representing himself "Sir, you have an idiot for a client". 

If you think a builders rep is going to be "fair", your a special kind of dumb. They work for the builder, that is there client, you are NOT there client, you are there customer, and as there customer you get the MINIMUM as is required by law, the absolute minimum. And it's just common sense, it really is. They work for the builder, of course they will hold the builders BEST interest in there actions, and you get the MINIMUM required. 

I recently closed a new build purchase for a client with builder, significantly sub $400k. The builder rep, the SAME builder rep we closed with, just sold one doors down with unrepresented buyers. Surprise-surprise they closed well over $400k. So, how much did they save? Oh, and yes, builder paid 90% of my fee's. 

Welcome to a little place I like to call REALITY. If your not a "Pro" get one, because you will all but certainly get screwed without one.

I hope EVERYONE sees this post of yours.... wow, just WOW.... 

And to call yourself a developer, LMAO! So apparently fantasy and insanity is just a general state of mind for you Robert. 

You have thoroughly earned the title: "Your Dead To ME".

Ok, so either this is a joke or was there like some meeting before hand, a "hey, heres how we really gas-light em" kinda thing???? 

Your supposedly in Detroit! Come on, COME ON!

Ok, how about giant swaths of coal and steal country? Ever hear of a little known person called Senator Fetterman? His entire platform to politics, becoming a Mayor, than Senator, was in representing DEAD towns, dead and near dead markets who lost there industry basis and have been eviscerated and NOT come back. 

Over 90% of the textile industry from US has been offshored. Steal Industry, auto manufacturing, the facilitating things to these like coal mining, the decapitation of these industries in the US has left a trail of devastated towns and collapsed markets who have NOT come back and have no prospects of ever coming back to there former glory as the "thing" that put them there, is gone. 

The Gold Rush, there is another one. Laundry list of boom towns that are now, at best, ghost towns, if not just a debris field. 

 See Isaura this is why pretending feelings can replace facts, will be the downfall of everything. It's literally the "Idiocracy" road map. 

There is a long LONG list of towns, neighborhoods, markets that have had a downfall and NEVER recovered. So yeah, not only can it happen, it DOES happen, and LOOOOOOONG has happened. Every time a technology shift happens, and evolution occurs, an efficiency breakthrough happens, a SHIFT occurs, things change. Markets built on the old wither, and new are built for the new. 

Look, marc, I am sorry it has to come out on you but for God's sake this situational Alzheimer's has gotta stop somewhere. 

In nearly every iteration of discussion of Real Estate and Inflation for the last, IDK 80-odd years plus it's been stated, restated, confirmed and reconfirmed over n over n over again that REAL ESTATE IS THE BEST HEDGE AGAINST INFLATION.     That line is been stated and promoted literally thousands upon millions of times.     And then, we go into an inflationary market and all of a sudden everyone is asking what to do..... if real estate is safe..... Seriously, you didn't get the hint the bazillion of times it was said before? 

And now, about all the volatility and chaos..... There's gotta be some law on the books that it's a-ok to slap a really stupid person, like at a certain level of idiocy it's a public service vs assault, right, I mean seriously, come on. 

You BUY when there is blood in the streets. 

What exactly did not come across in this the first hundred times you read/heard it? And the next hundred times+? 

This why I can so easily say NO, if it were '08' all over again NO, 99% of you would NOT be buying like you lament and promise if ya just had a chance. You'd be on here, howling how the worlds about to end so your just gonna sit back until it's all unicorn farts and rainbows again. And once it's all over howl how you missed out....... 

If you don't get it by now YOU NEVER WILL. Give your $ to someone who does or get cozy with your W2 and 401k. It may sound harsh but that's just the reality of it. 

If your brain isn't shooting sparks right now screaming "oooh OOoooh OOOHHH, where's the opportunity, oh i bet I could..." then this is NOT your thing. 

Yes, I hate seeing the suffering but I am a professional solution profiter, I make $ off solving problems so MORE problems is a giant blue light special. 

When everything is chill and "perfect" we call that a time to sell, FYI. 

Sold. 

You can send me the $ and I'll invest it, you just Netflix n chill.

Side bar to all this; 

I know one who has about 7,000 sec8 units in portfolio. Total portfolio is around 20,000 units. 

The sec8 units are a universe of difference from the others, operationally speaking. At 1 community there is a year round contract for 3 bed-bug extermination heating units, year round, and there at work 24-7.     It requires about 4x the labor staffing to operate the sec8 communities. 

Now, despite this it is profitable, but key aspect is the special annual grants they get for having that % of total portfolio as subsidized housing. It's well into the 7 figures, annually, 8 some times. And with that, get's to reno places, improve, and than reset rents higher. That's the real reason they do it. 

But like I mentioned, it's not for the timid, it's a whole program itself and some of the things I've seen in those units would blow your mind. Somebody is getting married so slaughter a goat as part of the feast, in your apartment, your 2nd floor apartment, and then wash the gut's and gore into hallway via a hose tapped to kitchen faucet to "clean up", the CARPETED hallway, carpeted apartment...... Yup, seen it. 

The upsides gotta be worth it for the brain damage of it all. 

Quote from @Robert Ellis:

Quote from @Kevin Sobilo:

Quote from @Robert Ellis:

Quote from @Kevin Sobilo:

This is the pertinent section of a NAR Exclusive Buyer Agency Agreement from PA. I suspect contracts in most states are similar. (Click on the image snippet above to enlarge it and see it more clearly)

 I doubt they signed an exclusive it's procuring cause 

@Robert Ellis, since the NAR settlement went into effect its required to sign a buyer agency agreement prior to showing a property now.

If it wasn't an exclusive buyer agency agreement there would be no contract to cancel because it would be by definition NON-exclusive.

In addition since the NAR settlement they have removed the NON-exclusive buyer agency agreement for buyers.

So, unless this was an OLD contract from prior to the NAR settlement it is very likely an exclusive buyer agency agreement.

 do you live in a special universe where realtors do what they say? you ever worked with an Indian buyer and asked them to sign something? you giving way to much benefit of the doubt to the realtor. especially new builds and salaried employees it's a whole other animal. thanks for the law brush up

Please Robert, "enlighten" us with exactly what you meant when you said "you ever worked with an Indian buyer and asked them to sign something?". 

I and my multitude of Indian clients would love to know.... 

The interest is NOT an expense, at least not yours, it's the tenants expense as there the ones paying for it......