All Forum Posts by: Paolo Nascimbeni

Hi TG  or TJ

  I have a few properties in the area ( Not Laurel but MC and PG county but I am considering Laurel for future investments ) -  From what I heard of Laurel it is a good area for investment. At 75% of the value any property in this area is good since they do rent easy even without considering improvement in market.  What is the condition of the property however ?  If you save 25% but you need that money to fix it then it all depends on the returns - This site has a calculator that helps you evaluating investment and returns, even thought I prefer to use excel.  

I have / manage several rental properties in the Maryland area.  I insured them with my residential  home insurance provider.  The system is It is however cumbersome.

I would like to have one policy for all the properties if possible and pay it once or twice a year ( like Geico does for car insurance - You have one policy and you add / remove cars from it ) .  At the moment I keep on receiving bills at different times and they are all quite confusing.    Anyway the question is : Anybody knows a good insurance agent who specializes in landlord insurance for multiple properties? 

I agree with   Russel small deal are possible but large deal take knowledge of the subject.  I am a residential agent in Rockville MD and so far I did only one small commercial deal for myself.  I just looked at the numbers however, then a Commercial Real Estate attorney helped me out with the details of the contract.  It turned out to be quite rewarding compared to the small investment I made.

However to get started there are a lot of information that you can get : 

Many books on Amazon ( can come up with a few titles if you like or just look at the feedback from other readers) , Udemy also offers courses for rock bottom prices , there re many websites ( like this one ) were you could start getting some knowledge.   

Hi James

  Well... personally I would put all the numbers in excel and figure out the returns that way.  

However I could only get loans at 4.5% on a commercial deal. In that case if you only make 5 Net Cap rate the deal would make no sense. Also because even on NNN leases sometimes the owner is responsible for let say paving the parking lot or some other expenses. There are deals however with a higher Cap rate than 5 around.

In a NNN lease the tenant pays also for property taxes.

Also 750,000 * 0.04 = $30,000  if you consider  the interest only  cost of the loan

I was always wondering if I should go for it.  I am an investor and a residential realtor and I am personally interested in commercial deals.  However I understand that before you can get the designation you have to do something like 20 commercial  deals and that stopped me form further exploring the idea.  So far I only have done one commercial deal for myself.  My idea is just to keep studying on books and on the web but I was always wondered if the courses were worth taking.

I am not familiar with the BP analysis tool since I use excel.  However you show $2,800.28 in expenses each month.   That makes no sense from the data you have on the property s I think you might have entered some yearly expenses as monthly in the assumption table.  Take a look at the data you entered. Besides that you make $1750 a month on a property you only paid $127,000  -  I think, even deducted the expenses, it is an excellent return.  I too have properties in Maryland and I do not get this high return / cap rate.  

Here is a website where you should be able to get cap rates 

http://www.realtyrates.com/  

YOU should also be able to google for "Cap Rate retail Orlando" or something like that and you should be able to get some free stats. I did and found

http://annualreview.cushwake.com/downloads/04_cap_...

But it is from 2013

Paolo

I have seen several Excel Waterfall model that will calculate the distribution of cashflow on the web. I think the first step is to develop the excel model that will actually put together all this numbers considering sponsors / investors different need of cash return ( you should be able to find a few experienced people who can put together the excel model ).

Did you read about Starker exchanges ? Even though I think you have to plan for those.  However the best person who can answer you is your accountant.  By the way the duplex was an investment property ?  1031 does not work for your own property.