All Forum Posts by: Ed S.

Thanks for the update.

This is becoming an issue and I think the newbies (maybe all of us) need to get educated on this issue.  

I was recently at the Dallas Airport, there was a 80 pound dog at the boarding gate. Everyone was petting it until we got ready to board and then a few passengers figured out he was going with us -- LOL!

It was funny to see all the shocked faces!  

Do they fly free -- does anyone know?????????????

I like to hear the "Rest of the Story" as well!!!!

How old is the building?

If the building is over 15 years old, you will have updates/repairs to deal with.  Normally with a commercial property your tenants expect quick turnaround on repairs (at least mine do).  Repairs (in general) are more costly.  Some of these repairs maybe covered under the lease -- your lease is a big deal in my opinion.  If the HVAC roof top unit gets hammered with hail, who repairs it?  If it dies, who replaces it.

How financially sound is the tenant?  If they go down, can you cash flow this deal?  You can rent house much, much faster than a commercial property (generally speaking).  

Commercial tenants (as a rule) don't call at 11:00 P.M. with an issue.  Depends on the business, they may occupy the facility for 8 - 10 hours/day.  That's one plus, in my opinion, than a rental house.  I own both commercial and SFH.  

Just thoughts to share -- commercial can be a good investment.

My major concern on this deal -- 30 year amortization.  If this building is 15 years old, hows the roof?  It is sloped  (4X12 pitch) or flat as an Iowa Farm.  Flat roofs tend to leak -- LOL!

Hopefully other Comm R/E investors will jump in and share their thoughts!

Great, Great discussion. It's ALL ABOUT relationships, be it a banker, realtor, carpenter, etc. I love reading all the postings. Remember to be gentle; we all learn from each other, and our experiences. Us old timers were newbies at one time too!

Missed a word:: one night stand

I agree with Greg and Bob. Build a long term relationship, (not a night stand)!!!!! Small bank, personal service -- wow! All I get from Wells is cross sales pressure! Not any more -- LOL! My community banker is great to work with. He answers his phone, takes time to hear me out. Gives great service! Build a relationship, this is a business we are in folks.

You mentioned something about a creek. Any chance this house is in a flood plain? Rules may have changed: years ago any portion of a property in flood plain the house required flood insurance. But the rules may have changed.

25 years seems like a long time to pay back a loan on investment property. Thoughts from the group?

I own several SF houses. Have been considering adding a few more >>>>>> but after reading this thread, I question if it's worth the risk! Several of you had some real deals. How did you screen them? Did you go back and do an autopsy? Meaning --- did you review your application, credit check, etc. Did you miss something -- now looking back? I'm curious!! Please educate me a tad. Having someone drill locks and re-enter is like crazy stupid. That would _iss me off, my temper might just get me into jail!!!!!

The quickest way to go broke in this business, is allowing free rent. BTW -- your tenant won an Oscar for best actor! Stop being nice!!!!!