All Forum Posts by: Steve Mcdonald

 What I meant USA finance crisis. I know the world finance was effected. It did not create death around world. Exclude suicides. But Stores, offices air etc were not restricted as well other I mentioned.

9/11 was a big event but the effect was more on the NY metropolitan area.

2008 was a USA finance crisis.

As well as the others mentioned

1. The above situation stores and offices were not closed.

2. The whole USA did not face a fear of quantine. 

3. Airline were not effected this bad nor were hotels. 

4. Trump now says upto 4 trillian dollars stimulus. This will devalue the currency and just last year they had a government shutdown due to budget.

5. Majority of the people in the stock market have lost their money. The people who wanted to retire cannot. People who invested in the stock market and now wanted to buy house can't afford. Along with heavy margin calls.

5. The people getting the stimulus check will hoard cash under fear till things resolve.

5. Possible inflation could happen due to the dollars being printed but I think the market will bottom and then inflation will start. Whoever has liquid will invest just like the 2008 crises.

The current crisis is a global crisis. Everyone is effected. I also feel china is not reporting the true numbers. They keep saying no new case then all of sudden cases plus they are removing the media. They want to show they are economically safe. Italy is showing the realty.

@Joseph ODonovan - I agree it is small size only a takeout would work. Another agent told me to today that 1000 would be the rent for a year round tenant but would not be easy.

@Peter 

@Peter Tverdov - You are right to pull 10% cap it would not happen based on the purchase price and getting a year round tenant. It just does not make sense. I will not pursue this deal. Not worth the investment. My partner was really interested but i think hes also realize it not worth it.

@Kurt Kwart - That what I initially though of the busy season and the same stores each year but have come to realize a small percent of them are rentals most are self own properties running their businesses. Boardwalk on the other hand is where the commercial rent demand is most. One news report I read that businesses are suffering on the island due to the rain, which confirms what an agent mentioned to me that not all businesses are doing great and whenever it rains everyone indoor.

Thank you for your help. Appreciate it

@Joseph ODonovan I agree I am trying to find out if the 1500 rent is seasonal or year round. One of the agent said 1000 would be expected from year round tenant, but maybe a challenge to find one.

I am seeing a lot of commercial properties on the island now selling cheap or not selling at all. Which does concern me.

Originally posted by @Joseph ODonovan:

@Steve Mcdonald @Toby S. is right on about Ocean City. Great family resort, etc. My only concern would be finding a year round tenant in a seasonal town. Is there a commercial tenant already in place? If not, finding one may be a challenge.

After going through the deal I am looking at paying 150K for 631sqft commercial retail store condo.

The association fee is $84 a month which covers flood and fire and water and taxes 1100 a year. 

Its on the beachblock on 8th st. I think after going through all the analysis its a good deal.

Expecting rent of 1500 would be a 10% cap rate. Unless I am missing something.

The property was listed at 264k and getting it for 150k cash deal.

I didnt have much comparable except for nearby which sold at around 260K. Not much sold in the area.

Any thoughts

By the way anyone know of any inspection company. I am looking to have them inspect the property. Need one ASAP.

Thanks again for everyone help.

I am looking for an inspection company in Ocean City to check the property. Does any one know of any or recommend one?

Thanks

- Whiteman Law Group in Old Bridge NJ

My friend asked me about this firm. I have not heard of them and figured I ask here if anyone else heard or have any experience with them.

Thanks,

Thanks Toby,

This information really helps. First time for me looking into a seasonal investment.

 Thanks Darren, Currently I am getting the commercial condo for 150K in ocean city near the beach. I am not sure if that a great deal. What would be some of the place under 200k investment.

The commercial condo is located near the beach side in the hospitality sector.

HOA and taxes are 2k a year.