Unlike other property types, the extended period of strong rent growth has helped prevent industrial assets from selling at prices below cost.Here are several graphs illustrating the current commercial industrial market in Los Angeles county:Access the full Los Angeles county commercial industrial market report here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1170822/Los_Angeles_-_CA-Industrial-Capital_Market-2023-10-02_a_compressed.pdf Data includes: Sale price per unit distribution, cap rate distribution, cumulative sales volume by year, months to sale, recent significant sales, vacancy rates, market rent per square foot, construction deliveries/demolitions, economy, job growth. population growth, and Los Angeles county sub-market activity.

Increasing interest rates, an expected mild recession, and new legislation impacting Los Angeles hotel values have dampened high-priced transaction activity, excluding the Standard.Here are several graphs illustrating the current commercial industrial market in Los Angeles county:Access the full Los Angeles county commercial hospitality market report here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1170823/Los_Angeles_-_CA-Hospitality-Capital_Market-2023-10-02_a_compressed.pdf Data includes: Sale price per key distribution, cap rate distribution, cumulative sales volume by year, months to sale, recent significant sales, occupancy rates, ADR, RevPAR, construction deliveries/demolitions, economy, job growth. population growth, and Los Angeles county sub-market activity.

Since then, fewer properties have traded, reflecting the trends observed in the national retail market.Here are several graphs illustrating the current commercial retail market in Los Angeles county:Access the full Los Angeles county commercial retail market report here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1170820/Los_Angeles_-_CA-Retail-Capital_Market-2023-10-02_a_compressed.pdf Data includes: Sale price per unit distribution, cap rate distribution, cumulative sales volume by year, months to sale, recent significant sales, vacancy rates, market rent per square foot, construction deliveries/demolitions, economy, job growth. population growth, and Los Angeles county sub-market activity.

Ernst & Young Plaza went into receivership in May, and Gas Company Tower went into receivership in April.Here are several graphs illustrating the current commercial office market in Los Angeles county:Access the full Los Angeles county commercial office market report here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1170821/Los_Angeles_-_CA-Office-Capital_Market-2023-10-02_a_compressed.pdfData includes: Sale price per unit distribution, cap rate distribution, cumulative sales volume by year, months to sale, recent significant sales, vacancy rates, market rent per square foot, construction deliveries/demolitions, economy, job growth. population growth, and Los Angeles county sub-market activity.

If they will do a loan with less than 1, the pricing takes a hit.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

For illustrations sake, let’s say it’s 30% STOCK index funds/20% TIPS/30% Real Estate/10% Commodities/10% Metals. 

It illustrates the importance of meeting the debt service coverage criteria.My $0.02 ...

An example will illustrate this point.Suppose that every time you go to the grocery store, you buy the same basket of goods and today they cost $100.

He dedicated the rest of his life to illustrating and animating each and every story from the bible and spent his free time carrying around a big heavy cross while wearing a real crown of thorns and flagellating himself with branches, to emulate Christ's suffering.

I've included an example below to help illustrate this.