All Forum Posts by: Zheath Sanchez

@Rich Hupper Yes, I agree. It sounds like they are trying to get as much info from me so they can to tax as much as they can. I’ll have my attorney look it over.

Thanks for the responses. I plan on calling the assessor Monday. Hopefully they can give me more details. We did not use an agent in purchasing the property. I bought it directly from the owner. The previous owner was not is the sophisticated at all, so I'm sure I can figure it out.

In May of 2018, I purchased a commercial property in Stanislaus County California for $160,000. The building is zoned light industrial which consist of a 3000 soft. Building and a 4000 sqft. Fenced vacant lot that leads to an alley. My father had leased the building for the past 8 years running his bar business out of it. The owner decided to sell and I purchased the building using cash, a home equity line, and some seller financing. I just received a "Sales questionnaire" from the County Tax Assessor. The questionnaire states I have 15 days to reply so that the questionnaire can establish the market value of my property. I only have experience with residential income (duplex and triplex) purchases and don't have any experience with commercial. Are these questionnaires standard for establishing property tax price? The questionnaire asks standard questions such as how much I paid for the property and whether its an investment or owner occupied. But tit hen goes on to ask questions such as, terms of financing, interest rate, income and expense data,vacancy data, and many more details. I only purchased this property because if I didn't, who ever did, would raise the rent on my father and he would be out of business. I honesty don't know the answer to many of the questions such as, net leasable area, base rent per square foot, maintenance, reserves etc. How can I accurately answer the questionnaire as I am learning as I go. I don't see how the questions establish a tax rate, other than an annual percentage on the price paid. Does any one have any input on how the questionnaire will affect how much I pay in annual taxes on the property? Any input would be greatly appreciated.

 I would like to thank everyone who replied to my post. Lots of great advice! The building is located in Modesto California. My father has been running the bar out of the building for the last 8 to 10 years so as far as the license, and permits go, it’s already up and going. My father is not the most organized businessman in the world, so as far as getting a small business loan goes, I think getting the paperwork in order is going to be a bit of a challenge but totally doable. I will definitely look into getting a real estate lawyer to structure of the deal. Z

I wanted to see if anyone out there could point me in the right direction. I have some experience purchasing residential real estate, but none in the commercial space. My father has been in the bar business for 25  years. He has been running his current bar for about the past 8. The buidling's owner is in his 80s and wants to sell off his assests.  Per the lease agreement, we have rights to purchase the building. The sellers would like to close this deal as soon as possible. The bar is located in the Central Valley of California, so we are not talking about millions here.  Maybe around 200k or so plus closing cost. We are buying directly from the owner and not using agents. Who should I get to structure the purchase agreement? Should I use a Real Estate Attorney?  What other options do I have? As far as financing goes, what is the best way to go? The way I see it, my options are a hard money loan.  How much money down do Hard money lenders require? I can pull equity lines against my current properties, and then there is an SBA loan. Are there any other options? Any feed back would be greatly appreciated. 

Welcome to San Diego. You're going to hear a lot of different things about the market here. I've bought two muliti-family properties in SD in the last 18 months using FHA loans. The appreciation has been insane on my duplex property in the College area. I just purchased my second multifamily property. I purchased it for well below the appraisal value due to distressed sellers. Bottom line, there are ways to make it in the San Diego market. I actually do need a plumber for my property I just purchased. If you'd like, let's get in touch and I can tell you about what I've done in SD. Z

I see, I was just curious because I plan on exchanging my properties here for multi-units in the Midwest. I hear Kansas City MO is a good market.  I plan on taking a trip out there to access the market. I  definitely still have a lot to learn. Thanks for reaching out and good luck! Z

Hi Jennifer,  I am a newer investor in San Diego. I have a duplex near one of the universities and am currently in escrow on a four Plex. I am just curious what is it that attracts you to the San Diego market being that you are out of state?  My strategy is to owner occupy my units renovate them, live in one unit for a year or two and then move on to the next one. Z

Hello, I invest jn San Diego, I'd like to hear more about it. 

Hi Tim, I'm into the buy and hold stategty myself. I own a duplex in the SDSU area and am in the market for another multi-unit. I found Kevin Fox through BP. He has been great and very insightful! Explaining many factors to buying that I handy considered. He won't let me make an offer in anything that won't cash flow. You should look up Kevin in BP. Z