All Forum Posts by: Paul Sahota

I live in Vancouver, Canada.  My goals for 2025 would be to finish building my single family personal residence on acreage that I bought a few years back.

Second goal would be to renegotiate some of the debt that I have on my existing businesses and commercial buildings to help with the debt servicing.  

Lastly, looking to buy a commercial real estate deal either self storage or a mix use building in a secondary market with 6 cap and around $5m purchase range. 

Hello everyone,

I am based out of Vancouver BC Canada.  I have some business and commercial real estate in Vancouver area. Now I am looking to the US market as I believe my Province has priced me out.  

I am open to any US Marker.  I prefer a balance between cash flow and capital appreciation.  I am only 36 years old so I can afford to wait and hold.  

I prefer small Strip malls or self storage.

I need advice on how to find the deals, how to get lending on them and then how to set up the structure.

I have flexibility to fly out next month is there are peers who can meet and help me out in their local markets.

thanks,
Paul 

Mike I agree with what you are saying about Vancouver and all of the surrounding Cities.  In Vancouver if you are buying a retail building or an apartment building you aren't buying it for its cash flow as the cap rate is too low and the per door cost is too high.  The reason you would invest in those assets is for future land development potential.  Maybe the highest and best use of the property will be 2.0 FSR or mixed commercial and residential.  In that sense it may make sense for a foreign investor or local land developer.

In terms of strata I am referring to commercial buildings that are built out and instead of being leased are sold as individual strata units.  You can then purchase those strata units and lease them to doctors, franchises, yoga studios etc.  These types of investments tend to be more financially sound, have a high cap rate and tend to be newer.  Vancouver is a crazy market right now to the point business owners like my self are sitting on seven figures in cash waiting for a market correction in order to invest.  Whoever was able to purchase the investment pre-boom are the ones who will walk away with a significant return.  End of the day real estate is still the only way to build wealth regardless of the economic situation of the market.  Canada and Vancouver in general is going through lots of change and its a matter of time before determining what the end result will look like. 

I currently own a small retail building in Vancouver, BC that is generating modest returns with a 5% cap rate.  also own a high revenue liquor store in the Greater Vancouver, Area. 

In Vancouver typically cap rates on commecial properties range from 3-4% so its a far difference than what might be offered in the US.  I understand that you have to play a long term game so I tend to set goals in 5-10 year intrevals.  I'm currently only 29 years old so I'm thinking more about when I'm 40 than I am now. 

Do you guys think that strata investments are the right way to go especially since apartments and retail buildings in Vancouver has low returns and tend to be based on future land potential rather than cash flow?

Thanks!