All Forum Posts by: Jameson Sullivan

Hey Alexander, Welcome to BP and Tacoma! You'll find a lot of awesome people on the site and there are a handful of meetups in Tacoma that always have good networking opportunities to meet likeminded people in Tacoma. Best of luck with your ventures!

Lots of good ideas here. @Joel Owens consistently brings thoughtful and complete responses and hit it on the head. STNL assets are likely going to be more of someone looking to safely protect already generated wealth. Lots of people make money outside of real estate and then decide to bring it into real estate as a preservation technique. If you're looking at MF assets, the CAP rate is only a small part of the overall picture. I've seen things trade in my market at 4% CAPs on actuals going in but the Buyer knew that by pulling on a few levers they could increase the return to 8 or 9% because either the property was not being managed/operated at it's full capacity OR there was some other piece to the deal (ie adjoining raw land to develop).

If you're looking at STNL assets, then your thought on CAP vs Interest rates does have some teeth (at least for the individual looking to grow wealth through RE rather than preserve it). However, I would caution you not to look ONLY at CAP rates when evaluating a different type of asset such as MF or Storage as there are frequently underperforming parts of the property not quantified in the asking price.

Best of luck.

@Eden Rock Hard to say exactly why no one else has looked at this before. Are there other offices around?

How did you procure the contract? Is there a commission agreed upon in the contract (I'm assuming not)? Did you market to find the property or did you just snag it off the MLS? If the latter, his Realtor probably knows your contract is going to expire with the Seller and they can just go around you... Frankly, they could do that even if you marketed directly.

Looking forward to seeing everyone there tomorrow night!

@Michelle Verdugo

I can't speak for everyone in every state but literally the only information i use on a daily basis that i took from the RE licensing is how many feet are in an acre. Every thing else was useless.... if your goal is to earn a commission on your sales, get the license. If your goal is to learn, skip it.

Does anyone else wish they would do a second show with more advanced topics? Ive listened to every show and while its still something i listen to every week, it would be nice to have a show where they dove deeper into super advanced topics and didnt feel the need to stop to explain what FHA and Seller Financing mean. Anyone else?

I think the question @Jaysen Medhurst is asking is why you don't just sell the properties on the open market without seller financing? It seems like an unnecessary step

@Nick Rutkowski a couple people have posted really clear descriptions of what the mcdonalds model actually is, so i wont go over it again. I work in NNN Leasing and McDonalds, at this moment in our market, is ground leasing dirt or having the developer BTS. They make sure to have a first right of refisal in their leases and will later purchase the RE they are bullish on.

Alot of it is simple rent arbitrage. Master Lease and then sublease for more. You could argue that coworking space and airbnb arbitragers have taken on a short term version of this model.

What makes you think that any cash buyer you have in your pocket hasn't already seen and passed on this "deal"?