All Forum Posts by: Vic Reddy

@Meena R. - Are u sure there was a 1031 involved? This would require tenancy in common which lenders typically won’t allow

Transferring ownership from personal names to LLC is straight forward with a deed transfer and re-assigning the tenant leases. Your lender needs to approve deed transfer

@Sudheer - few questions

1) What is NOI? NNN leases?

2) Are the lease renewals 5+ years?

3) When was the property built and remodeled?

4) National or local tenants? Corp or personal guarantees?

Commercial lenders look for 1.25 DCR, occupancy and 5+ year leases. Almost all local banks and Credit Unions offer loans on Commercial Retail properties

@Kiran - We saw similar to option-1 with local and national tenants after leases were amended during the pandemic.

I would suggest to review their last 3-5year financials, visit the place multiple times and check traffic, competition, customer service etc. Also use Placer.ai stats to compare both properties, local demographics, median income etc

Our experience on the lending side is that if gross sales are consistent over last 3-years, under writers will consider this income

I would definitely consider option-1 based on tenants sales, NOI and how stable the restaurant is running. I strongly believe risk and reward go hand in hand :) Good luck

@Sachin Sharma - Caddo Mills is a bit north on I-30. You should consider further South in Royse City/Fate/Rockwall. You will pay a bit more but the rents are higher and much easier to lease

I did several investment homes in I-30 corridor.

What interest rates are you seeing? It’s possible to get < 7% on investment properties

Feel free to reach out to me.

Hi

We need some advice on this strange situation. A friend owns a good cash flowing low income Multi family property in TX. This MFH property is 50+ years old and the City wants to enforce recent building codes on this property. My friend tried to comply but the age of the property makes it impossible to get the property up to code other than demolishing and rebuilding the whole property. The owners do not have capital to rebuild this property

My question is - can the owners negotiate with the lender on the recourse loan balance as the property will be demolished? Owners had on time loan payments. Did anyone else go through similar experience? Any advice is appreciated

@Ronald Rohde - Unfortunately Seller doesn’t offer Seller financing

We are exploring options to see if we can get lower rates with higher downpayment

Any other suggestions are welcome:)

@Gurjeet Singh - Your options to buy Commercial property with $200k will be very low and may limit to small office/medical condos

Do you plan to leverage and take a loan? This will increase your options

You should consider other options - Syndication deals or find more partners

Hello all

We are considering two Commercial retail and Medical office buildings to purchase in $4m to $6m range. What rates are you seeing in the market? Are there creative ways to find short term loans with lower rates?

Our Lenders are quoting 8-9% with 25% to 50% down even on properties with 7+ cap with stable long term leases

Thank you

@William Yeh

It’s hard to say if 6% cap works without knowing more details

1) how long are leases? Any rent escalations?

2) Are there corporate lease guarantees or personal?

3) NNN leases? What are landlord responsibilities?

4) How are comparable market rents? Any upside?

Lending expenses have gone up but Investors are still looking for decent deals in TX market.

We used to have Co-star membership in the past and sale, lease listing and comps were all add-ons. I am looking for single agent membership

Did anyone enroll in Co-star recently for Sale, Lease, Comps and property owners info? Co-star seems to offer all as part of the same membership instead of splitting them for different fees