All Forum Posts by: Peter Mckernan

Thanks for all the responses, it helps out a lot to get a few different thoughts to confirm information! 

Hello everyone,

I have been looking into Commercial Real Estate somewhat in the recent weeks and I have been looking at the historical trends of certain areas that I live around. I currently invest in SFR; however I would eventually like to get into multifamily units.

I was recently looking at a site called loopnet.com and it showed commercial trends from 2006 to the present, and wanted to get a consensus on what websites are creditable for this type of information involving trends for commercial real estate. I want to see if anyone uses the site that I listed above, or if not, what site do you use. 

Thanks,

Peter 

Hello @Precious Thompson ,

I would say this is a big red flag. As soon as a tenant would ask me to do this the first thing that pops into my head is that they have poor money management skills, and you do not want to be stuck with a person that has poor money management skills living in a piece of property you own. 

This ultimately will fall on you if they cannot afford the rent and ask for extensions, which I believe will happen if the first payment that is coming from the perspective tenant is a credit card payment. I could talk about good debt and bad debt, but If the person is willing to take on debt in the first payment of the transaction, what else are they willing to do?

Just on the topic of credit cards, you should listen to Dave Ramsey's podcast whenever you get a chance. He covers debt and the bad things people have gotten themselves into involving debt (I have no affiliation with the podcast or Dave Ramsey).  

Good Luck,

Peter 

Hey Michael,

I am also always looking for good quotes to motivate me on top of the motivation I already hold within. These are all really good quotes and I would select the quote from John D. Rockefeller if I had to choose one quote that fits my life today. The person I have come to find that has very good quotes is Brian Tracy. Hope this finds you well! 

"Excellence/performance is not a destination; it is a journey that never ends."- Brian Tracy

Peter 

@Michael Morris 

I live in Souther California and I'm going to make it up there for this summit. Thank you @J. Martin for coordinating this and also for putting in keywords that would notify the BP community. I currently have to work that weekend, but I am already in the process of getting the weekend off and also booking a flight. This summit would be very beneficial to attend. 

Peter 

@Will F. 

@Steve Veen 

Even compared to last year the houses that I have been looking at in the Inland Empire right now has made me sit and think, and even back off of a "DEAL" that my business partner and I were about to buy. The numbers that I ran did not compute out to a stellar profit. We would have just been buying the property to get a few dollars extra a month, and that isn't a smart business decision. The numbers were also not based off the dips in rental prices.

Hello @Sovannary O. ,

I have a rental property in the Inland Empire and I do not believe you have to do anything different with your business license since the property is within another county. 

Peter 

We ended up declining the counter offer early this morning. 

@Michaela G. 

Hello, 

Those numbers are actually taking into account vacancy rate, maintenance, we would manage ourselves, taxes, and insurance. My business partner and I have another rental in the same area that we have a very good return on. It's in the Inland Empire and is only about an hour away from where I live. The management is very easy too. 

Peter

Hello everyone,

I have a question on a property that I am looking to buy with a partner and wanted help getting off the fence, and saying yes or no to the counter. We found a house in a good area, with good schools, no repair at all, new flooring, new carpets, new paint, good curb appeal, and an all around very nice house for a rental.

I ran the numbers with 20% down and the underwriter given us 5% for an investment property. The house had been on the market for over three months, went from $315,000 down to $299,000; and just yesterday we saw it drop to $279,900. The house was of course over priced, so we threw an offer in at $275,000 and they came back with a counter at $279,900 and said they can't go any lower. The cash on cash return would be 3% if we rented the house out in the mid range price for the area, and the cap rate is 6%. The cash flow is showing $160.00 a month. We are also keeping in mind that the rental prices can stay where they are, go down, or go up. This all in mind is it going to cash flow, or "Bleed Money."

I know these numbers are on the lower end and aren't the best; however, I also didn't plug in the highest amount we could get for the rental a month. I know that we should err on the side of caution; however, I need some help for the peace of mind that we made the right decision.

Thanks!

Peter