All Forum Posts by: James W.

Sorry forgot to mention the 20,000 sq ft building is retail with 3 NNN tenants and collects $213000 in rent with $70000 expense at 9% cap rate. The location is not as great and it is in a poorer neighborhood.

The 9000 sq ft office building is in an upscale neighborhood and with 5 tenants on Month to month leases no triple net. The rent brings in $146000 with $44,000 expenses at 6% ca rate.

Both yield and location are important. Running a business myself, I know how important it is for visibility and signage.

I was hoping to manage the properties myself. I already mange my residential rental fine by myself but if I am just dealing with 3-5 commercial tenants with NNN, do you think I can manage it myself or is it better to just pay the 5-8% property management fee?

My bank Wells Fargo is willing to give me a loan at 4.5% that balloons after 5 years. But I feel pretty confident within 5 years I will have it paid in full so I am not too worried about the what happens after 5 years. I have always paid off all my loans within 5 years including my business loan, student loans, home mortgage (now a rental property), car loans.

My other option was to just pay off the remaining 950k at 6% interest of my home mortgage (2nd house) which I think I can do by next year. Then I would be 100% debt free at age 38 ( I am 37 right now). But from what I understand, I can write off the first $1m of my mortgage interest so it might be a better idea to invest it in commercial real estate instead. What do you think?

My long term goal is to buy commercial real esate, pay it off within 5 year, buy another, pay it off within 5 years. Each time my income will increase from the aquisitions. I want to have rental income for retirement. Running my business is VERY stressful and I dont know how much longer I can do it for. That is why I am looking at real estate.

Sorry getting a bit off topic. So how do I decide what is a fair price? I definitely want to get the best deal on the properties and not pay full asking price.

For the 20,000 sq ft building inland 9% cap rate, the bank is willing to give me a loan for $1.2m and I pay the rest.

For the 9000 sq foot building closer to the beach, the bank is only willing to give me 950k.

I dont think the down payment is an issue. But I think I should be paying full asking price.

Residential real estate seems to be so much easier to negotiate on because you just look at the comps. Commercial seems to be based on the NOI and CAP. But does that mean commercial properties usually sell at full asking price?

I am trying to break into the commercial real estate market. I have $600,000 down payment right now and already have been preapproved by my bank. But I really stink at negotiating.

I am in Southern California. One 20,000 sq ft property far inland with a 9% cap rate was asking for $1.6m, I offered $1.4 and all I was able to get the seller to come down is to $1.59.

Another 8500 sq ft property in a better area closer to the beach with a 6% cap rate was asking $1.69 and I offered $1.4m and he was only willing to go down to $1.65m.

I was hoping both properties would be willing to go down to $1.5m. Do you think that is too unreasonable?

Do commercial properties usually sell at their asking price? Is there a rule of thumb? This is really frustrating.

I am just starting to get into commercial real estate and have only used loopnet to find my listings. is there a better place to look for listings?

My tenant emailed this problem with my rental property. Has anyone experienced a problem like this before? Does it sound like a problem with the circuit breakers?

I was under contract to buy a MLS house in St. Louis, MO but the deal fell through because I was unable to obtain financing. There was a clause in the contract that stated if I was unable to get financing, the deal is scrapped and I will get my $1000 earnest money back.

I was preapproved for the loan but after further review, the loan company decided I took too many deductions in my 2004 taxes and used that against me. I faxed the denial letter from the mortgage broker before the deadline on the contract. The sellers agent claims that I should have known I would not qualify for the loan which is completely untrue.

But the sellers agent and sellers of the house still has not signed for the release of my earnest money. How do I get it back? Do I take him to small claims court?

Please help!

I was under contract but deal fell through because I was unable to obtain financing. There was a clause in the contract that stated if I was unable to get financing, the deal is scrapped and I will get my earnest money back.

But the seller of the house still has not signed for the release of my earnest money. How do I get it back? Do I take him to small claims court? Who do I have to sue?

you are calling them cheap because they do not want to give you $40,000 commission for selling their house??? You negotiate when you sell your car - why should you not negotiate when you sell your house? sounds more like you are greedy.

I found this house in a great neighborhood that needs rehab and is being sold for very cheap.

The problem is that there appears to be mold damage in the basement recreation room on the wood panels. It looks and smells awful! Is there a way to permanently fix this problem?

I heard you can clean the mold with bleach. I was also thinking of replacing the carpet with tile floors to prevent accumulation of mold. Also replace the rotten wooden walls with beadboard.

Would a sump pump prevent the mold from coming back? Any ideas?

I ended up buying the refrigerator, washer and dryer for $850. However I also wrote in the lease contract that the refrigerator, washer and dryer are there ONLY for the convenience of the tenant and will not be covered by maintenance.

They are :badwords: expensive to fix from what I understand.