All Forum Posts by: Will Wu

So now that the $2T aid bill has been approved. What will be the help to the commercial real estate industry other than loans to small businesses? I own a retail plaza in Atlanta. Many tenants are asking us to waive rents or defer rents due to their loss of revenues. Some of them decided to close the business permanently. We are seeing all kinds of requests. We as landlords are willing to share some of the cost of the shutdown. However, up until now, our lenders have been really unwilling to even consider negotiations unless we default on the loan. I haven't seen any help to lenders/landlords from the government. What are you guys doing or telling your retails tenants? 

 6800 sq ft multi family fourplex. $40k shingle roof replacement 

Roof replacement. From $20K to $40K per roof. Just did 3 of them in the past 3 months and there it goes all my profits for the year...

Totally agree. Putting ourselves in the position of the seller an trying to understand what is that he needs the most and letting the seller know you are willing to help him solve his problem will be more helpful to get the deal done than criticizing the seller property or the way he manages his business. 

Can you shed more light on your take on mobile parks? I started buying multifamily 6 years ago and although being a pain to manage so many tenants it turned out to be the best investment in terms of the low LTV invested and valuation (up 50%) and probably 200% cash on cash. Can mobile parks qualify for low LTV on a loan or build wealth like multi family?

All Cash deal, no contingencies, and quick closing (like 14 days) is always the most effective way to get a deal at a deeply discounted price when dealing with a seller that is under pressure to sell. The catch is that you must be willing to take over all the problems of the buyer. 

Usually the best way to get a low price deal in a distressed property is to let the seller know that you are willing to inherit all their problems as long as they are willing to sell at a discounted price. If you are offering a low price and asking the seller to clean the house for you then your offer probably is not interesting for them. I once purchased 70 apartments in a D class neighborhood. It took me 2 years to get rid of 90% of the bad tenants. Had to get rid of several drug selling crews dealing in front of my properties and encountered any kind of nasty situation and crazy people and had my share of roomies tenants to deal with. But the rewards for willing to do the dirty work is that was able to make over $1.5M profit in 2 years on these properties alone with less than $350K of my own cash. Acquired these for $1.4M using a hard money lender. Sold them for $3M. I was able to get the deal because I was willing to buy all the good, the bad and the ugly. The $3M that sold was reinvested into a $10M commercial retail plaza thru 1031 and now I do not have to deal with these type of tenants anymore.