All Forum Posts by: Andrew Kniffin

Hello-

I'm seeking input/recommendations for concrete demolition and hauling in Seattle.  I have a home with approximately 3,000 sq ft of 4" concrete.  I need to have it removed (and then ultimately have the yard hydro-seeded or sodded). 

Does anyone have a recommendation as to who is experienced, trustworthy, and economical for this type of job? 

Thanks!

Thanks @Account Closed , I think that's helpful information.  I look forward to being in the market for 60+ unit! 

I understand the metrics, math, and conventions used to value MF properties.  I've worked with a Buyer's agent before, and frankly did not find value in him.  If anything, communication became more difficult as I had to route comments through him.  In that instance, I did not see the value in Buyer's Agent.

So, off-the-bat Seller's Agent gets 6%.  Is it fair to assume that it's the same on commercial transactions?

@Steve Olafson 

Good thought.  Two responses: 1) there is still the Seller's agent in the middle and 2) many Seller's would rather talk straight with Buyer and avoid the game of "telephone" with agents (A says to B, who reports to C, who informs D).  From my experience, there's more potential for confusion there than there is aid to closing the deal. 

Nonetheless, there appears to be consensus from all 3 respondents that my idea is not as sound as I thought it was.  Other thoughts?

Hello all-

I am looking at 10-25 unit properties.  I plan to avoid having an agent, since I feel comfortable with understanding valuations, and want to be able to provide a better value proposition to the Seller by avoiding the Buyer's Agent's commission. 

I am assuming that the CRE market for Agent's fees is the same as residential RE: ~3% for Buyer's Agent, and ~3% for Seller's Agent, both paid out of the proceeds of the sale from Buyer.

If true, then on a $500,000 property, my bid is $15,000 more valuable to a Seller than another person's bid with the same purchase price.  (3% of $500k = $15k.)

Am I thinking about this right? Or, am I making a bad assumption in translating residential RE to CRE?

Thanks!

-Drew

Welcome, Tamar. I live in Seward Park, just across the water from you!  And...we also have twins but ours are 2 years old.  

Let me know if you'd ever like to grab coffee and talk RE.  I have 2 SFRs myself, and am bidding on an some smaller apartment buildings.  

Congratulations, Jonathan.  That is a great accomplishment!

Thanks, Joel.  That makes sense.  And I think that's doable!

Thanks so much @Joel Owens.  

The idea, then, is that after 7 years, you'd refi the primary debt and -- due to principal paydown and forced appreciation on the property -- be able to have the refi assume the remaining subdebt, while still maintaining conventional financing LTV ratios?

Hello BP Nation:

On MF transactions, Sellers often will carryback a subordinated note (junior to the bank note) in order to lessen the upfront capital requirements of the Buyer. 

Can someone tell me more about the nature of these notes?  A few specific questions...

1. Do these typically amortize, or are they interest only?  If amortizing, are they usually ~25 years?  More?  Less? 
2. What is the interest rates on these?  ~7%
3. Do they 'balloon' at 5/7 years?  I can't imagine a Seller wanted to hold my note for a full 30 years...

I'm looking for *typical* information; I understand that this will vary.  I'm seeking 'ballpark' info so that I can structure offers in a realistic way that maintains/builds credibility. 

I'd love @Joel Owens 's input, since I've always valued his input and experience-based market insight.  Thanks to all!