All Forum Posts by: Sunitha Alli

@Joel Owens Thank you.  

Pardon me for my ignorance but does the 'agent' not get full commission if I sell the property after finding the tenant?  Trying to understand when you said you do not transact those for commissions as there is no money.

There are two agents involved:  1.  Agent used when I buy 2.  Agent used when I rent.  Are those 2 not paid in full if I sell in a year or two?

Thank you.

@ Jason Hirko Thank you, all good points. The 3 current tenants are nails, dry clean and t-mobile. Only t-mobile is NNN. I will find out the time left on these leases.

How can find out current comparable cap rates?  And current rents?  Is there a way to research the viability of leasing out 3 vacant units in this property?  The only site I know is 'costar' to figure out this information.

Thank you.

Hello

I am researching into 50% vacant retail center in a mall.  It is listed for 2.5 million and 9000 sqft.  However, it is 50% vacant with current rents around 150,000 paid by 3 tenants.   3 more spaces are vacant.

How can I arrive at a fair market value for this property?  What are the due diligence measures to take before buying this property.

I am novice investor but hoping to rent it fully in a year or so and sell it for profit.  Seeking for some advice with investment guru here.

Thank you.

@ Joel Owens Thank you. Excellent point about STNL and NNN leases and who they are meant for.

It appears the best way to make money is to find a vacant or almost vacant property in a good location for a cheaper price.  Find a tenant and hope to sell the property for a higher price (with higher rent).

@Brent Coombs , Thank you for the reply. This property is 15 year NNN lease with 7% increase every 5 years. So, even if real estate booms in 5 years, I will only be limited to 7% increase in rent as my profit? Due to long term lease?

What happens if interest rate go up in the next 5 years from current 4.25 to 5.25?  Then there is no profit at all!

Sorry, I am novice investor in commercial real estate and trying to understand.  

Thank you so much,

Sunitha

Hello,

How can I sell a property with 15 year lease for a profit after 5 years?  

For example: I buy a commercial property for 1 million, NNN with a cap rate of 5% and 15 year lease. Hypothetically, after 5 years there is a real estate boom and I want to sell the property for a profit. How can I sell the property for a profit that since the cap rate of the property is fixed at 5%? If I want to sell it for 1.2 million the cap rate will come down to 3 or 4%? Why would any investor buy it?

Does it mean that on a long term lease even if there is a real estate boom I cannot cash in?   

Thank you