All Forum Posts by: Peter Xiao

Yeah this is a rough deal. It honestly sounds like it is for that wealthy lawyer or doctor who might be buying their first piece of retail property. 

I know for private companies it really is just the relationship. But maybe others can contribute as well.

Inflation has only dropped my .1% and Feds are ready to do whatever it takes to drop that. I have been hearing on the streets that interest rates could* go to 12%+. That would be pretty scary heading into a full on recession. I was wondering how everyone is feeling and what everyone is thinking?

Well I mean in 2022 we saw one of the sharpest decline. Q4 of 2022 volume compared to Q4 2021 volume was like 50-60% down across the board. I don't think we are at the bottom yet though because the latest inflation data is concerning. Cash will definitely be a good way to buy imo, prices are lower and interest rates are high. I am curious to how market will react because we are sitting with a lot of cash and yet not a lot of good properties are on the market.

Quote from @Ronald Rohde:

Quote from @Peter Xiao:

Quote from @Ronald Rohde:

Welcome to BP. what types of CRE?

I too love commercial real estate, all i post about on YouTube is my industrial properties in DFW.

Are you concerned about population or COL in those markets?

I primarily do retail and mixed use. Industrial is certainly interesting to me as I have never really did that product type. Not sure what you mean by COL or population but my biggest concern in SoCal is just the government. It is getting harder and harder to be a landlord here. Other than that the CRE market in general is pretty bad given how low transaction volume have gotten across the board.

 Cost of Living, population movements away from your markets. Eh, I care less about the broader market, I find ways to do deals!

Government is definitely tough. That 4% transfer tax in LA county!!!

 I'm not so worried about that because I do believe it is temporary. Big firms are still more active and faithful in CA real estate over many other states. We just have such beautiful weather and that us not to be taken lightly. I think COL and population moving away won't be an issue in the long run

Quote from @Ronald Rohde:

Welcome to BP. what types of CRE?

I too love commercial real estate, all i post about on YouTube is my industrial properties in DFW.

Are you concerned about population or COL in those markets?

I primarily do retail and mixed use. Industrial is certainly interesting to me as I have never really did that product type. Not sure what you mean by COL or population but my biggest concern in SoCal is just the government. It is getting harder and harder to be a landlord here. Other than that the CRE market in general is pretty bad given how low transaction volume have gotten across the board.

Hello, I am new to the site and I just wanted to introduce myself and what better way to do that than an AMA. 

I have been in CRE for a little over 6 years and my family has been in for 2 generations now. We develop, syndicate, and invest in CRE across LA county and OC, primarily in San Gabriel Valley and beach cities of OC. I always thought that residential has the bigger spotlight but I love commercial and I love talking about commercial real estate. Feel free to ask my anything commercial real estate related subjects, I will do my best to answer what I know.

One thing to consider the is speedy rise of interest rates. I am not sure what kind of loan you are getting but to other's point, you will not get 30 year but 25 amort and likely 10 year fixed. If you do have ton of equity you need to look at how hard that equity is working for you and what your current returns are at to make a sound decision. Also consider if the multifamily product type is what you want because those are always expensive to buy. There are many commercial options such as NNN retail that has zero management and you just get a check in the mail.