All Forum Posts by: Syed H.

Nothing wrong with a low ball offer. You never know. 

Also a lot of sellers or agents can think it’s a low ball, but many times the property is already overpriced. 

Example: I just offered $150k cash for a property that was listed for $269k. There has been not a single comp about $175k. They can think I lowballed them, but just Bc they overpriced their property doesn’t mean my offer is a lowball IMO. 

TK is fine sometimes and for certain buyers, it just depends on a person’s individual situation. TK is good for people with high income w2 jobs. You see a lot of high income earners (doctors, lawyers; etc) buying TK Bc it’s more passive and they can keep shoving money into the business and grow it that way. Also many just pay cash since many TK areas are dirt cheap. 

It’s not easy to buy value add RE and force appreciation at scale while having a full time job.

I’d move on. Try to negotiate for some costs.

I can almost guarantee it will be a waste of your time to go in front of a judge. Judge’s will be extremely lenient to a sympathetic case like this. I’d bet the daughter will have a doctor say the owner had Alzheimer’s and they didn’t catch it until after he signed this contract. That is a perfectly plausible scenario. 

For Conventional- 2.675-3.00% on a 30 yr. 

For commercial loans to an LLC- 3.75-4.75% on 5 year money, between 20-30 year amortization depending on the bank. 5+ unit rates are cheaper than 1-4 unit. Primary markets are even cheaper than these numbers depending on where.

 None of the listed deals will give you a 7+ cap. Half off them don’t tell you most of the expenses (trash is not included in taxes like some brokers will tell you).

Good deals on the MLS are usually in contract within a week. Most of the stuff that has been on market for longer is because they are priced too high. They are usually waiting for an idiot from NY/NJ to come buy it Bc we think it's relatively cheap. A good deal should be priced between 8.5-11 cap. Those are cap rates I've closed on within the last 12 months.

You really are a genius bud.

Don't expect people to do your work for you. No one is here trying to convince more people to compete with them. Many of people here fail to understand that cap rates don't just measure return but also risk. A 14 cap isn't "better" than a 4 cap. I've done deals all over and I can say the last 10-15 years had higher equity multiples & returns in primary markets. Only a handful of people on BP can afford to play in markets like SF/NYC/etc though.   

Exactly, this guy doesn't know what he's talking about. In my previous CRE career, I've was on the sale and buy side of middle market RE ($10m-$150m deals, probably $500m worth of deals) and we had many deals with no T12; etc etc. People forget that many people build in a lot of expenses that aren't really valid to use in an analysis of a building's earnings. Also this is market specific. Here in NYC you will get laughed at if you ask for a T12 on deals that go into hard deposit immediately.

A market that was under complete lockdown didn't have new leases sign!?!? SHOCKING NEWS!

Not really surprising. Certain commercial properties have lost a lot of value in the short term (especially retail). Many banks were underwriting retail rent as $0 or taking huge vacancy rates. You and everyone can say it'll get better, but that doesn't matter. That's just projections. Comps also mean very little because pre-covid comps aren't really comparable anymore

If your seller doesn't have to sell, I'd take it off there market, return their deposit, and re-list at a later date. 

Honestly, you should speak to someone who is an experienced local CRE broker. I used to be, I was trained by much more experienced brokers. They are much more complicated than what most resi brokers are trained to handle. Most people here aren't qualified to help you with this.