All Forum Posts by: Roman Rytov

 Appreciate it!

Concur on the 8 CAP unlikelihood but with 6.5% interest not much below CAP 8 makes much sense.

Folks, with rates in mid 6% and CAP 7+ the "standard financing" (20-30% down, 25 amortization, 5 balloon) makes no sense. Cash-on-cash return is in mid 5 with these numbers. What creative options for financing can we consider? I'm asking my banks for longer amortization or an intro rate for 2 years (risky, I know, but with a hope that the rate will go down to the 5% zone), interest-only loan. What else to consider? I'd assume that the banks need to deploy their money as well and the numbers just don't make sense.

I realize that what we have on the market today (available through LoopNet, for example) are not good deals - all of them are in the 4.5-6.5CAP range which makes no sense with the current interest and explains why these deals are not closed. 

I also understand why a cash generating property is not sold unless for a very good price. But what do you guys do to a) find good deals and b) finance them?

Selling my property and looking for a target for 1031x transfer. $2-5M range; 8+ CAP, industrial single tenant. Anywhere but CA. Can not be vacant but sell-leaseback is ok.

I have a portfolio of a SFH in Atlanta which over the covid times has appreciated and I'm looking for ways to realize the profit. I have a business in the state of WI where I often travel and also have a team of the local agent, bankers and contractors who specialize in the industrial properties. Bought a few properties with them and if for my residential properties I have a PM company the commercial tenants don't require too much attention. I'm trying to convert my portfolio to such properties but don't want to have a high concentration in one area. Looking for other regions in the country for a similar outcome: industrial or flex buildings, ideally one tenant, purchase price 1-2M, CAP 8+.

Purchased my first commercial (Industrial) building and planning to segregate the cost to accelerate depreciation. Considering engaging a 3rd party company with their engineer visiting the place. Any disadvantages with this approach? Some believe it's a flag with IRS... I read that a lot of people do it and seems clear and legit. Any thoughts? 

What are the rules of converting a 1031 property to own use or to the primary residency? I'm in GA today and wonder what if I buy a property in FL under 1031 exchange and show some (marginal) income for it but in 4-5 years move there and make it the primary residency. Can it work at all?

I'm an agent and an investor doing it as professional hobby. My main business though is chemical manufacturing and we're looking to expand via purchasing a building. The challenge is with all the permits and approvals it's going to take 1.5 years from closing to the time when we can move and this is on the optimistic side. 

We decided to look for an existing chemical facility for sale pretty much anywhere in the nation (except for the three West coast states) although it is quite a niche market. How would you suggest approaching it? I don't believe there is a central place to go to and thinking to find a solid state-wide brokerage specializing in industrial spaces. 

1. Can you suggest alternative ways to find such properties?

2. If you're a industrial agent feel free to reach out.

thanks in advance

Roman

@Francis, this is pretty deep and looks like a DD process from a bank. I believe a god chunk of it can be adopted for assessing tenant candidates when the time is to lease.

I'm quite an experienced investor in the residential space (15+ SFR and duplexes) and going under contract with an industrial commercial space. My business rents itself and I'm quite familiar with the general terms and the contract. I know how to run the numbers and feel quite comfortable. What I'm trying to find is a check list to go through for inspection/assessment for a commercial property. I bet something like that exists already.

Your guidance is welcome.

thanks,

-Roman