Commercial real estate internship
Irvine, CA · Member since 2015 · 24 posts · 1 vote
Hello everyone,
I was inquisitive to know if there is anyone in the Orange county area that is part of or knows of a commercial investment firm that is hiring unpaid interns.
Thanks for your time,
Brandt H.
@Account Closed, GREAT! this seems like it will be a good discussion. we have to make some assumptions about the property for sake of this discussion. so lets assume that i have the chance to buy two family dollar property. one is in LA one is in detroit thats the only difference. lets assume that they have the same lease. NNN with the tenant paying 50k/yr. both leases have 15 years left. if some of those things are different at the two properties then the price that i would be willing to pay would be different, and therefore my cap would be different. these are teh properties that i had in mind when i started this discussion.
if i have a lease with family dollar to pay me 50k per year, i'm not taking a chance. that is guaranted. do you agree?
well i highly dought that the same investor would be willing to pay 625k in one market but 1.2 million in another to make 50k/yr. he would proabably pass on the one in cali. there might be an investor that would take both and get one at a cap of 8 and another at a cap of 4. perhaps they have 10 million and they want to buy NNN properties across teh country. who knows what they are thinking all investors think differently. i personally would be willing to pay a cap of 10 for both. that is why i don't buy NNN properties. the cap rates are toooo low for me.
@Brandt Heflin opps you said "seemed to be" a promising investment. my fault. well so analyse the property. seems like you like the property its a matter of how much is a good price for it, right? i pay no attention to how much people ask. most of the time i don't ask people how much they are asking. its very very rare that my offer is more then the person is asking. 99% of the time, my offer is less. some times people will ask 5 times more then what i'm willing to pay! that much of a difference is very rare, but it happens.
... brokers are great for explaining how to analyze a property. the ones that are "CCIM" know what they are talking about. if a broker is not CCIM, who knows if they know what they are talking about or not.
OK, no thinking til tomorrow. I'm on CA time.
Assumptions are that the MARKET is making a 4% cap rate spread. Off hand I'm not sure that is current reality on NNN properties.
Second a 3-5000 sf dollar store is going to rent $70 sf in CA and maybe $25=35 sf NNN in Detroit. So at 5000 sf the CA NOI is going to be $339,500 and the Detroit NOI is $169,750.
The big problem is to first determine what the actual cap rate spread is and then to explain why. Catch you in the morning.
@Felix Goldstein I would analyze it more if I could. I'm not sure what else to look for though, which is when, like you said, contacting a CCIM broker would be good. I don't have the money for the property nor the experience or time. Heck, I'm only 17, I at least want to wait until I'm 18 and can apply for a brokers license.
@Account Closed What is NNN? Also, when you say sf do you mean square feet? Sorry, I haven't learned a lot of the RE terms yet.
@Felix Goldstein I would analyze it more if I could. I'm not sure what else to look for though, which is when, like you said, contacting a CCIM broker would be good. I don't have the money for the property nor the experience or time. Heck, I'm only 17, I at least want to wait until I'm 18 and can apply for a brokers license.
of course u can anylize it. i would start by calling the listing broker and telling him that you want to buy it. most brokers will show you the proterty no matter who u are or wheather u are qualified to buy. they will kind of walk you through the rest of the process. im assuming u want to buy it for u not for someone else. if thats true no need for a brokers license. the whole being 17 years old is tricky. i recently heard that there was a 14 year old girl or something that was investing. it sometimes takes years to sell a commercial property. so u might get a call in a year when u are 18 asking if u still want it. i started investin with no job no money, no nothing. i was 29 (but looked like i was 12). also join a REIA group (Real Estate Investor Association). thats what i did, i called on properties and said i would like to buy them. also perhaps you can invest in both residential and commercial properties. residential is way more simpler, cheaper, and quicker. its like selling a ford pickup as opposed to a semi truck.
@Felix Goldstein I like that analogy! How did you Invest with no money? I want to start investing in residential properties before commercial. Did you use other people's money? FHA loan?
OK, no thinking til tomorrow. I'm on CA time.
Assumptions are that the MARKET is making a 4% cap rate spread. Off hand I'm not sure that is current reality on NNN properties.
Second a 3-5000 sf dollar store is going to rent $70 sf in CA and maybe $25=35 sf NNN in Detroit. So at 5000 sf the CA NOI is going to be $339,500 and the Detroit NOI is $169,750.
The big problem is to first determine what the actual cap rate spread is and then to explain why. Catch you in the morning.
NOI is Net operating income(income-expenses). cap rate=price/NOI. so if u are paying 100k for a property and the income-expenses =10k. your cap would be 10%. u assume you pay cash so there is no mortgage payment(even if u did get a mortgage). take a look at loopnet.com u can easily find a NNN property at a 4% cap. by the way triple net means that the teneant is paying for taxes, insurance, and all maintenance. so your expense is a mortgage payment if u borrow to buy the property. maybe a management fee if u hire someone for that.
you wholesale. or you borrow money(use other peoples money like u said). the main thing is action. like that property that u mentioneded. is it listed? if it is call the broker and make an offer. most brokers are happy to show you the inside. it sounds like so far you are looking at the land itself not the improvement. at first you will be just driving arnd looking at properties. at least that is what i did. i wasnt making offers since i had no clue how much to pay and i didnt know how i would find the money to buy it. after a while u will figure out what a good price is and therefore, will be able to make an offeer. one of the first property that i remember that i wanted to buy, i wrote a letter to the owner. i knew it was going through foreclosure. luckly the guy let his broker know and his broker called me. i analized the property and his broker gave me a purchase agreement to sign. it was never accepted but oh well. by the way that was in the spring of 2013 and the property was recently sold by the lender that took it back earlier this year. it took two years! that was a commercial property. a few apt upstairs and some retail space on the first floor.
you will definatly get people discriminating against u because of your age. you will find people that will work with u.
@Felix Goldstein I'm not just intrested in the land, but also in the improvements. From what I've seen, some commercial properties can be sold within months(depending on the market) and others within years. The thing about commercial is that, if you sell a commercial building after 2 years for 1.5 million after purchasing for 500,000 you are instantly a millionaire and have only had to put the work into one single property. In residential, it might take you 2 years just to have 500,000 in you're bank account(which is actually really good when it comes to residential.)
@Felix Goldstein I'm not just intrested in the land, but also in the improvements. From what I've seen, some commercial properties can be sold within months(depending on the market) and others within years. The thing about commercial is that, if you sell a commercial building after 2 years for 1.5 million after purchasing for 500,000 you are instantly a millionaire and have only had to put the work into one single property. In residential, it might take you 2 years just to have 500,000 in you're bank account(which is actually really good when it comes to residential.)
a commercial property can be sold in a few weeks. really it all depends on the price and how good the person that is selling the property is. with that property it took two years mostly because it just takes time for the foreclosure proccess to go through. in commercial properties you do less deals but u make more per deal. that is in general. it depends on what someone is doing. if im wholesaling a commercial properrty, im looking to make way more then a couple grand.
it would be pretty hard to buy a property for 500k and then sell it for 1.5 million. posssible depending on what you do with it but very difficult.
@Felix Goldstein Yeah more realistically might be buying for 1 million and selling more 2 million. Also, I hear the term "wholesale" a lot but I've never really understood what I meant, can you explain it?
@Brandt Heflin, sure i can explain wholesaling. there is a lot of stuff about that on here. you wholesale by getting a seller to sign an purcahse agreement or an option to purchase. make sure you ahve the right to assign your rights as teh buyer to someone else. then as soon as you have something under contract, you go and market the property just like any other owner. when you find someone that wants the property, you sell the property to them by having them sign an assignment contract. first you build a buyers list of 100 investors that want to buy properties where you want to buy (you don't have to be buying in cali. you can buy anywhere in the country). then i would send out one of those "we buy houses" postcards to find people that want to sell you properties. there is a lot of stuff on theinternet about wholesaling. call the dept of real estate and/or an attorney to make sure you don't get in trouble for broekring without a license.
@Felix Goldstein Okay, thanks!