All Forum Posts by: Alex Olson

Hi Everyone - 

Thanks for all your valuable discussion and willingness to share advice.  Tapping into the wisdom and thinking of folks who have greater perspective/different perspective and experience is so very valuable. 

Here's my question:

Courtesy of an upcoming property sale and 1031 exchange, I have a sizable chunk of equity to invest. Figuring out what strategy to use and weighing either putting it all in an absolute NNN property or splitting into two properties that are commercial office and multi-family as a way to diversify. Planning to buy and hold for quite a while if I get it right - what with 1031 possibly being gone and also just the work to find and make transactions, want to put the money somewhere it can stay for a long while.

I know absolute NNN gets lower cap rates that the other types, and I'm not afraid of some hands on management (have managed SFR for more than 10 years) but what I am trying to figure out is if the somewhat better cash flow (cash on cash) from the commercial/multifamily actually balances out to about the same returns as the absolute NNN once you account for the maintenance, leasing agent fees, etc. that one will incur over a 10-20 year time frame OR if the total returns are better for the commercial/multifamily provided one is willing to put in the time to manage them.

In other words, NNN gets much lower cash flow, the others higher - so NNN seems like you make less money but is that really true over the long term? The others require more work, and possibly more investment along the way. What is the experience of those on these forums - after, say 20 years, are they all about even or will one of those investing strategies leave me with greater *wealth* (i.e. not just cash flow, but also appreciation). Realize that can vary by location so assume same location.

Thanks very much - look forward to the replies. 

hey everybody my name is Dominic Olguin, I am currently a buy & hold real estate investor. currently I own 16 units, 12 of those being in an commercial 12 unit. as I am in the acquisition period I am trying to get more info on net & triple net leases. I am interested in getting into commercial real estate. Any info or contacts would be greatly appreciated. thank you.

happy mother day ladies!

Hi there!An investor with experience in multiple properties advised me against using 1031 exchange because he stated that if the real estate agent knew that the buyer was using 1031 then real estate agent could use the time limitation against the buyer and not give the buyer a good deal.
The buyer is forced to buy at a higher proce because he has time working against him in a 1031 exchange. My question is this. Is this a valid point, and if so how does one use a 1031? Should one just avoid using 1031 and instead use equity of the property to move up to buy larger properties?

Thank you for your thoughts and wisdom. 

Why do you suggest the Midwest? 

@Alex Olson

@Dave Foster good idea as well. It’s a great property and going up in value every month it seems. It’s in Rex, nice neighborhood. Rockcreek community in case you’re familiar with the neighborhood. I have a great tenant, school teacher, pays on time, never has maintenance issues. Lease expires in August. The place has a new roof that’s about three years old, newer furnace & AC that are about 5 years old. Exterior paint done about 2 years ago. All new light fixtures, plumbing fixtures, new floors put in less than a year ago. Only negative is the front yard landscaping needs some attention/pine straw mulch. I have an offer from Opendoor for $225k. Interested? 

We are expanding our PM services from KC to St. Louis.  We are in need of a boots-on-the-ground agent or PM to help with walking vacant units, placing lockboxes, and doing post-construction walks.  This would be as needed, but our investor is planning on acquiring 30-50 doors/mo.  Any help or leads would be appreciated.  Thank you!