All Forum Posts by: Terry Owens

BTW, I heard the term "medium term private hard money pool" on a podcast at "The Commercial Investor.com/podcast". Mark Gallagher Did I misunderstand the guys?

The deal is a stable, 11 unit commercial office space, asking price is $800,000, NOI is $76,000, Total ROI is 9.7%. It's fully occupied, tenants do most of their own maintenance. Off a very busy thoroughfare with lots of traffic. Seller will not finance. What else do you want to know, Mark Gallagher?

In the words of Salvatore Buscemi, I have a date to the Prom and now I need a prom dress. I have very little liquid capital to invest in this deal and would like advice on how to structure it. I want to hold it for a while, at least 5 years. What's the going rate of interest I should expect to pay to a medium term hard money lender? Do they expect equity at the end in addition to interest? Then the big question is where do I find them? Will they expect a fancy pitch book?

Is there a quick way to tell if a certain interest rate is not worth the trouble, like comparing it to the Total ROI.

Thanks!

Terry

In the words of Salvatore Buscemi, I have a date to the Prom and now I need a prom dress. I have very little liquid capital to invest in this deal and would like advice on how to structure it. I want to hold it for a while, at least 5 years. What's the going rate of interest I should expect to pay to a medium term hard money lender? Do they expect equity at the end in addition to interest? Then the big question is where do I find them? Will they expect a fancy pitch book?

Is there a quick way to tell if a certain interest rate is not worth the trouble, like comparing it to the Total ROI.

Thanks!

Terry

In the words of Salvatore Buscemi, I have a date to the Prom and now I need a prom dress.  I have very little liquid capital to invest in this deal and would like advice on how to structure it. I want to hold it for a while, at least 5 years.  What's the going rate of interest I should expect to pay to a medium term hard money lender?  Do they expect equity at the end in addition to interest?  Then the big question is where do I find them?  Will they expect a fancy pitch book?

Is there a quick way to tell if a certain interest rate is not worth the trouble, like comparing it to the Total ROI.

Thanks!

Terry

HiMichael Ketchen, there is an excellent article under in the Blogs on how to analyze a deal. There are many things you need to think about to calculate Net Operating Income. Subtract the debt service from the NOI to determine cash flow. Here's the link:

https://www.biggerpockets.com/renewsblog/2010/06/30/introduction-to-real-estate-analysis-investing/

Good luck,

Terry

Thanks for all your replies.  Greg S., the lease is a typical 1 year lease, 1500 Security Deposit...etc. It's zoned for commercial and is stabalized and several of the tenants have been there for years. My analysis shows I will get a total ROI of 9.3%. Lessee pays most of the "living" cost and plumbing and broken glass up to $200, Lessor pays water/sewer, waste removal and parking lights, plus structural cap ex...

Curtis Gabhart, there are two free standing buildings at this one address for a total of 11 units.  There are no association fees.  

I don't have a lot of cash to put in this investment and am looking for a creative way to raise $800,000.  I am open to partnerships.

In my search for a multi-family investment, I came across a commercial property (office space) that I want to analyze. Since I've been focused on MF, I haven't been sponging up knowledge about commercial RE, so I need some help please. At first glance the NOI is more than 10% of the asking price 90,000/800,000. But that only includes taxes, insurance, waste, parking lights and water/sewer. What other cap ex should I include and how much? Also, I would probably finance the due diligence...not sure what all I need to do for commercial office space or where to find out.

Also, I will probably need to raise hard money for this.  When I consider, say, 8% returns, how is that calculated?  Compounded annually? Also, what is typical equity spread with investors?

This could possibly be my first deal and expert advice would be appreciated.

Thanks, Terry

Can someone please explain this is laymen's terms? This is on an MLS listing for a duplex. The price is 96,000.

Thanks,
Terry

Thanks for the heads up!