All Forum Posts by: Joey Budka

You can do whatever you like. The tax implications are subject to interpretation by the IRS come tax season. Like the other posts said, if your intent is apparent, the IRS will make an exception. If you can prove it undeniably, you stand a good chance of holding up on the exchange tax savings. From what I've heard, its tough to prove. The IRS more often than not rules against cases like this- at least, this is what I've witnessed and heard from investors and exchange facilitators. Generally, my exchange company and CPA recommend holding for at least a year, just to play it safe.

Would you partner with Donald Trump? The guy has been through multiple marriages (I'm sure had plenty of affairs) and he's wildly successful in real estate development. Seemingly, a flawed personal life doesn't necessarily carry over into business dealings.

Joe,

I'm originally form Monterey, grew up in and around the central coast, and still go back every chance I get. No place like it in the world. 

The in-sane appreciation fueled by employment growth you see in SF Bay Area and LA markets is not what you'll get in SM, SLO, Monterey, Salinas, Paso Robles, etc. Appreciation does occur, but a bit more modestly as rents do not increase as rapidly as the larger metro areas. Investor activity is lower too, which means you don't have as much competition securing good deals when they pop up, though there are some bigger active investor groups/family offices that have been running the show for generations. 

IMO, there are deals to be made if you actively look enough. The only one's that will cashflow will likely be value-add opportunities, where you'll need to get a significant discount, add value or raise rents, then hold for long term appreciation. 

Simply put, the central coast isn't the best for cashflow. Go further inland to Bakersfield, Sac or Fresno for cashflow. If you want stability and steady reliable appreciation and capital preservation, go to the coast, SF, LA, OC, or SD.

Dang! just noticed this event page. 

@Shane Pearlman could you keep me posted regarding future SC events? I love having excuses to drive over the hill, especially to meet with like minded investors lol 

Thanks for organizing! Let me know if you need help promoting it. 

I'm in. As always, thanks for putting this together @Johnson H.  Just curious, but how did that retail syndication turn out in Sacramento?

Underwriting is mainly based on the subject property, but lenders will also evaluate your personal financial situation too. Personal guarantee is common. Lenders will tell you their commercial loans are "non-recourse." When you read between the lines, you'll discover that the term non-recourse really is recourse. Banks are sly with their legal verbiage. So be weary of this.

I usually recommend to my clients that gas stations are not the best triple nets to purchase. Especially if there aren't many more years on the lease such as the five-year initial term you are looking at on this potential deal. I hypothetically the deal sounds great. the 18% return after 15 years sounds awesome but realistically and conservatively this investments may turn out to be a nightmare in the event the tenant vacates and goes dark. have you ever dealt with a vacant gas station property? The only way I would recommend acquiring a triple net gas station investment would be if there was a long term corporate guarantee, with a competitive cap Rate, located on a highly trafficked retail Corridor. If you are going to buy triple net I would recommend buying a corporate Burger King or McDonald's if you prefer something with less risk more stability.

By the way, I know a great multifamily mortgage broker. PM me to get his contact details. 

Detra,

Welcome! Come by and network with fellow BPers at Whispers Cafe tonight at 7 PM. @Johnson H. is hosting the event. Always a great turnout of BP attendees.

I read your profile and experience. We should definitely chat. I broker commercial property in the East and South Bay. I run across off-market MF deals from time to time, so let me know what you're looking for.

Hope you find this site helpful!

I would invest half into hard money/private funding deals. The other half I would invest in a solid triple net with a corporate lease, with at least 20 years remaining on the lease.