All Forum Posts by: Sam B.

@Chase A.

Wholesale commercial property and get a few 100k from it. Then use your wholesale skill to acquire commercial properties mainly w seller financing.

@George T.

Looking to see what other more experienced investors say but my understanding is that the bank will want first lien and a dscr of >1.2x. They will count the seller financing as debt.

@Greg Dickerson

Great advice I will go to the local banks

Hi guys

I have a value add strip center I am looking to buy. Building is 8 years old and doesn't need repair. It's only 34% occupied and as a result NOI is basically 0 (current rents can only support property related expenses).

How do you finance something like this? I called a mortgage broker and she said they only lend on NOI, so I'm not sure if she isn't interested in doing business w me or maybe banks don't lend on properties like this. My feel is that there's gotta be a way, how do I go about this?

@Scott V.

This is a great car! I doubt it depreciates much if you take good care of it. I own a 997 GT3 which I don’t expect to lose much money on over time. I know it can be invested into a property, but I gotta enjoy at least a little!

@Shane Johnson. I struggle with the “buying late in the market cycle” issue as well. The problem with this is that there are no guarantees we are going into a recession or that lots of deals will magically appear if you wait a few years. I side towards buying something now, getting the experience but have cash and experience to double or triple down big when the market does decide to drop

@Javier D.

Reonomy is a decent comp, but not as good. Though it is over 50% cheaper

@Joe Callantine

Two components to think about.

- rent per square foot

- tenant improvements

The rent you can get will be on a per sq foot basis, so if you charge $20 per sq for a 2k space rent will be 40k. In some instances the lease will be NNN where the landlord does not pay maintenance

You will need to offer the tenant concessions, or TI to entice the tenant to build out their space.

Both rent and TI are market and location dependent

@Adam G.

If you are rich and ready to retire at 40, just suck up the cash flow and enjoy life, no need to releverage!

If you have a money growth mindset and want to multiply your money, then refinance and reinvest into other properties.

My advice is to maximize your position by pulling cash out and reinvesting only when you see a pullback in the CRE market, or a really good deal. We are in a sellers mkt as you know..

@Yaya Y.

About your loopnet question. I think it’s a good tool. It allows you to compare asking rent and asking prices for properties in the area. It also helps you figure out who are the player brokers in a given area. Most deals you will find through brokers off mkt. The deals on loopnet are usually the hairy ones, over priced ones, picked over.

But you can find deep value here. A property near my house was up for sale on loopnet for over a year. It needed a little work and was only 50% occupied. Ended up selling for <50% of the asking price. Another deal I am working on right now was on loopnet forever and recently fell out of contract, I am hoping to swoop in at a very much reduced price to asking.