All Forum Posts by: Ben Bakhshi

I guess I'm really looking to find out if commercial landlords know...what businesses are making good money these days?

@J Scott , the bulk of my deals were from abroad, but I was fortunate to have family on the ground for ~20 deals. This year however we have all been "tele-commuting" for these deals.

The first deal that I did that was truly telecommuted, was a $2,500 investment. I think that @Brian Hart , should definitely get his feet wet before doing deals of major significance.

Yes, it can be done. I've bought and sold 8 houses this year, 100% online. I have 2 more in closing, 3 on the market, 2 under repair, and 4 that are currently rented or on the market to be rented.

I live in Israel and all of these transactions are in the states.

 We were put in touch with a manager in Charlotte. The prices were attractive at the time 2008, but unfortunately we tried to catch a falling knife and are just about at the same prices that we bought. That being said, rents have been steady and it has been a great investment. 

Well, many of those areas were very hard hit back to back in 2000 and 2008. Lots of jobs had left many of those areas (especially MI and OH).

A combination of above average foreclosure rates, and below average population growth have caused home prices to suffer, while rents on the other hand, have stayed close to flat. 

Thus, you can find extremely attractive cap rates in those markets. Try to find one with a growing population, and you probably won't be throwing your money away.

I create my own apps. I actually use Podio for managing my flips. I should start using it as a CRM for selling properties, but I let most of the up to my agents for now. 

What is their business model?

Commercial real estate buyers look at CAP rates.

If you are expecting the property to generate $3500 a month in rent, $42,000/year, let's take off 40% towards expenses, so it's netting about $25,000 a year.

CAP rates are a factor of tenant quality, contract terms, location, building, age, demographics, etc. The biggest factor at the end of the day are comps.

Hopkins MN seems to be a small town, more renters than owners, and median income slightly below the US average. I would mark the CAP rate at 10% (or higher (worse)), but you really need to see what CAP rates similar properties are selling for.

Assuming a 10 cap, rented, your property may not be able to sell for more than $250,000 ($25,000/10%).  Assuming you had net net income of $30,000 a year, the property may not sell for $300,000.

You said last month you listed it for sale & rent, what did you do with the property before a month ago?

Why don't you get a real estate license? If it makes it easier for your to complete deals...you might secure more income.

I was thinking more about places like Hubzu or Auction.com. Loopnet is more like Craigslist, it's not just point and click to buy.