All Forum Posts by: Michael X.

I know that commercial buildings are generally rated A, B or C depending on a lot of factors. My question is can a "C" building ever become an "A" building? I'm not sure what is weighed most in the grading such as the location (can't change that), or the age of the building (can't change that), or if it needs renovation and a facade refresh (that I can change).

Has anyone purchased a "C" building and made it an "A" building. Or in the end does it really matter if you are cash flowing well (sales price based on cash flow)? I assume that a better class gets you more in rents.

Hypothetically speaking...

Say someone has enough down payment/credit score etc. to purchase a commercial property between 2-3 million dollars. Which scenario would be better: buy a single large property or 2-3 smaller ones? I would side with the larger one simply due to these management cost (would be professionally managed), more cash flow under one roof etc. But what I'm not sure of is to put a lot of eggs in one basket. By diversifying into several properties you can average out loses and maybe even undergo greater appreciation. What are your thoughts?

The properties that would fit his bill would be medical offices, multi-family and possibly a large hotel (not sure if this would be good though).

Insight is appreciated.

This is an interesting article about a guy that buys rundown properties in Dayton, Ohio and pays no taxes on them. Eventually he hopes that the banks will just give him the properties instead of dealing with all the issues. My guess is that he will lose them eventually. You can only game the system so long. Enjoy:

http://www.daytondailynews.com/news/dayton-news/owner-rarely-pays-taxes-on-54-properties-1398939.html

I've seen a steady supply of houses in my area and fully expect to see more this coming fall as Rich suggests from these numbers.

Rich Weese what have you seen in the value of multi units? In my experience I haven't seen many deals in multi's and if they are cash flowing they are at top market value (IMHO) of about 8-9%. I'd love to add one in this market but until I see a deal I'm holding off.

Accredited investor definition from Wiki as an FYI.

In the United States, for an individual to be considered an accredited investor, he or she must have a net worth of at least one million US dollars, not including the value of one's primary residence or have made at least $200,000 each year for the last two years (or $300,000 together with his or her spouse if married) and have the expectation to make the same amount this year."

All good words of wisdom. I'll be passing on the idea but you never know until you ask!

Thanks!

Thanks for the replies Don Konipol and Ibrahim S. You have both posed a lot of questions that I would need to address before heading into a partnership. Many of your points I had not considered since I know nothing about the broker side of real estate.

Right now I'm researching more of a generalized "what are the possibilities" and if it would be worth pursuing. I'm not convinced in anyway that this would be a good partnership but if any members have made something like this work I would be interested in what benefit it brought to their buy and hold or flip business.

I'm looking for input on growing my real estate business. I normally deal with the same realtor for all of my transactions. We have a great repore. He does a lot of business in general and has worked for the same brokerage house for many years. I'm encouraging him to open his own brokerage and I'm wondering how I can potentially make this a mutually beneficial partnership which would make more money for both of us. I'm not sure what the options would be since I don't know much about that end of the business. Is this something that I should even pursue?

Has anyone done something similar?

Am I the only one that still uses Blackberry? My old school 8330 Blackberry has lasted me forever. I've dropped in numerous times and she still goes strong. Battery life is excellent often lasting me over a day of use. I don't use the internet much on it but I write TONS of texts and emails everyday. Best part is you can get it used off Craigslist for $50 in very good condition and it doesn't require a costly data plan. What happened to phones being just ummmm phones?

I don't know how everyone can buy new phones all of the time. There are only two possessions that I have an emotional attachment to. My car and my phone.

<3 muh phone!

Are there big differences between companies that facilitate the self directed IRA used to invest in real estate? I assume that the fees are different. Is there a better company that most people use here on BP?