All Forum Posts by: Sean Walton

Rahul since this site is mostly real estate investors I assumed you owned the space and were looking to rent it out. 

What are you trying to do. Rent a space and run a dispensary? Rent a space and grow cannabis or sublet to growers? Neither are legal on the federal level so you could go to jail.

You should probably talk to a lawyer and other who do what you want to do.

I don't have any direct experience with this but here are my 2 cents

1. I imagine very passive if you do a triple net lease although growers are barred by federal law from getting bank accounts so your rent will probably always be cash. Make sure you aren't paying the electric bill. 

2. I think California is working out the legal framework for legal recreational sales. Read up on current medical cannabis laws.

Jeff Sessions is rabidly anti pot and was going around capitol Hill to try and get more resources to go after growers in states where it is legal and most congress people on both sides of the aisle told him to shove it. With that said you do still hear about busts so you could lose your property if it is caught up in a sting.

@Phillip Chumley it is common for investors to take the building through entitlement meaning you get approval from the planning department for the size and look of your building then sell the entitled property off to a developer who takes on the task of getting the building permit and building it. Selling an entitled property depending on how difficult the planning department is can add a lot of value to the land. This can be much lower risk than managing the construction. 

Are you saying 5 stories above grade or 7 above grade? When you go more than 5 stories above grade you are probably looking at a steel or concrete building which can be a significant jump in construction cost. If it is more than 75 feet above street level that is considered high rise and there are some extra requirements that can add some cost. These are things your architect should be able to go through with you.

We are starting to use them in our architectural practice at in person client meetings and it is extremely helpful. 

There is also a high end condo development near me not from the office I work at that put them in their website. Not full VR but fun to move around with your phone acceleraometer http://thepacificheights.com/penthouse-collection/

@Nick Bleser read all the terms of the loan. The adjustable rate is not ideal for predictability but it will probably be lower right now than a 30yr fixed and a lot of times it is only allowed to go up by a certain amount per year but the other thing to look out for with commercial loans is they usually have a 5 or 10 year balloon payment where you will have to pay off or refinance the loan. A lot of 10 year balloons taken out near the peak in 07 are coming due so there may be more opportunities in your market.

Not sure what the configuration of the property you are looking at is but you might be able to subdivide the lots into 3 lots and get 3 separate conventional loans but it may not be worth the headache. 

Generally in a crash interest rates go down to try and juice the economy. It is more it a typical peak interest rates climb but our current market is not typical. 

What would you say it would take cost wise to get it to that ARV price? Is the owner willing to seller finance it? If so you can offer a little more. Most people as a rule of thumb say 70% of ARV minus repairs is what you can offer. But every market and price point allows you to vary that a little

I'm in the back far corner with some folks dark red polo shirt

Hi @Noor Gill

   unfortunately, I think it is a 21+ bar but they do serve food so they might be able to let you in. I just emailed the manager so hopefully we will hear back or if you have a chance you can call at (415) 543-3540

@Brad Turley and others hope to see you tonight!

Originally posted by @Sean Walton:

@Andy A., @Eduardo Zepeda, @Brite Zhou, @Ryder Meehan, @Johnson H., @Alok Jain, @Samir Pathak, @Alex Chau, @Adam London, @Ori Skloot,  @Andrew Muff, @Account Closed, @Saikat Bhadra, @Matt Sanford, @Ralph Forde, @Katrina Razavi

@Liz F., @Joshua Ferrey, @Michael Knudsen, @Hunter Snyder, @Haseeb Awan, @Mark Pedroza. @Jason Tanseco , @Alvin Sun, @Calvin Lee, @David Kanter, @Chris V.,

I'm organizing another event Monday June 19th at 6:30 at Louie's bar again in SF. I hope you can all make it. I will give my rough analysis of the market and get all of your feedback

https://www.biggerpockets.com/forums/521/topics/45...

Hope to see you all tonight at 6:30!