All Forum Posts by: Sam B.

@Christopher Brown. Seller financing an option? Perhaps try life insurance also. Life insurance you get cheap financing and no recourse usually but need ~30% down

@Jeff Schneider. It would just force flippers to do more brrrr and hold for 5 yrs. the 2% vacancy tax sounds populist and dumb. For most people when a unit is vacant you’re already struggling to pay the mortgage. Foreclosures would probably explode in that scenario.

@Jessica M. You just need a property manager! That’s the best way to do it, pay someone to be tough for you!

Hi guys, I was trying to figure out how to find bank owned commercial real estate properties that are for sale. Are there specific brokers or sites where you can find them?

Thanks

@Bill Plymouth we are talking about you asking for 500-1k more in commission. I’d just turn the property quick and build more relationships/network so you can do 500 more of these.

@Matt Kozlowski.

Ways to find owners with a lot of equity- use reonomy and prospect now to fund owners who have owned for a long time. That can narrow it down.

Ways to structure owner financing - you can ask owners to do a 2nd position note or full seller financing. I have found that sellers want you to put up at least 15% on cre deals. Sometimes they ask for shorter term and higher interest rates thank what you get at a bank.

Deals that are well marketed in a hot asset class (multifamily) are less likely to get seller financing. While deals in asset classes that are less popular (office, retail) will be easier

@Joel Owens. Thanks for the thorough response. Median income for the area is 53k vs 57k nationwide. Unemployment is 10.8% vs 3.8% nationwide.

My comment around “in good shape” was just a generalization as I haven’t put in an Loi yet or am I in due diligence to do a proper inspection.

You’re right in the CAM on the Family dollar is paid for by the landlord... the rest of the leases in the center are triple net. Family dollar is a lower quality tenant agreed, for what it’s worth they did a unit remodel in 2016.

Back to my question, I don’t know if lower income is not worth bidding on. Do you have to price in a higher cap for the area as a result? I have always been told buy in high income, with population density in a good location.

@Jim Chuong. Yes that's what I saying. Single tenant NNN with a corporate lease is generally almost fully passive. Multi tenant is more work but very manageable. Long term leases are good in low inflationary environments, which I believe we are in.

Hi Guys

I have a deal I am wrestling with, if I should put in an offer on or not. I have a 20k sq ft deal which is currently for sale in Philadelphia. The area is densely populated with 265k ppl in a 3 mile radius, and is lower income in demographic. The center was built in 1990, is in good shape, and is anchored by a Family Dollar. My only concern is that its been robbed I count 4 times in the past 6 yrs.. ie a rougher neighborhood. It’s fully stabilized, so not value add.

Should I stay away from low income/high density areas like this? How should I think about returns in lower class neighborhoods? What about pricing on an asset like this?

@Danielle Massey. Hey Danielle, after having owned 4 single family rentals, I am moving to commercial real estate.. why? It’s all about SCALE. You get scale in your purchase, like buying 20 units in one package instead of 1 by 1. You also get scale in expenses as you only need to landscape one lawn, plow one parking lot etc.