All Forum Posts by: Patrick Murray

What does everyone think of this business card design that is attached? I want to change it but not sure what needs changed. Any help is appreciated.[/img]

Most buyer's agents do not charge their client any fees or commission as it is customary for the seller to pay these. Find an agent that will be able to "run the numbers" for you too. Ask if they will charge you anything should you decide not to purchase a property from them. A prudent agent is going to want to review your finances, business plan, etc to ensure that you are capable of purchasing the properties.

Is there anyone from Fayetteville, North Carolina here that is looking for commercial property?

Exodallas, the 2% rule does not seem very reliable to me. I had never heard of it until recently. You really need to do a more thorough financial analysis. For my clients, I first learn their goals and investment stratagies. Your overall yield is going to depend on how long you keep the property. After projecting your net income over the holding period and deducting debt service and reserves, you can from their calculate a before- and after-tax yield. This yield is a much more reliable indicator than the 2% rule or even cap rates. The problem with cap rates is that they only look at one years NOI and does not take into account the debt service, future cash flows, and the disposition at the end of the holding period.

I am from Fayetteville, NC which about an hour south of the state capitol of Raleigh. The city has had a bad reputation for a long time for many reasons. However, over the past five years it has drastically improved. Many areas (espcially downtown) have been cleaned up and revitalized. Some areas still are in need of more work, but overall it has become a much better place to live. The effects of BRAC are starting to show as more high end houses and retail centers are coming into the area. Recently, HH Gregg and Gander Mountain have opened stores; several other new players will be coming into the market soon. The residential market seems to move with the deployment cycles of the military. Lately it has been slow, but now begining to pick back up as many soldiers are returning home. Call me if you want to purchase any investment property here!

Terri, an APOD is an Annual Property Operating Data form that is usually used by a CCIM. It is easy to fill out and I alway use it. One of the best advantages in commercial real estate that will affect your cash flows is the ability to charge the tenants the expenses that your incure. You can do this through a triple net lease, or some other hybrid form. So you will earn the base rent every month plus each tenants pro rata share of common area expenses, taxes, and insurance. With residential propety you are stuck with the bill.

If you really need to know a property's market value, you should hire an agent to comprehensive market analysis (CMA). They should have access to the local MLS and the skills needed to thoroughly analyse the property.

I agree with Ryan regarding the reserves. I have seen several agents quickly end their careers because they did not plan for a slow start. When I started in real estate, I was actually still working another job at the same time until I was at the point financially where I was able to quit.

Have you considered investing in commercial real estate rather than residential? In my experience, the return on commercial (especially retail) has been better than the returns on residential properties. I would consider purchasing a small shopping center and hire a good property manager.

I know you did not want to read anything by Donald Trump, but his advisor, George Ross, did write a very good book called Trump Strategis for Real Estate. He is a very savy real estate attorney and presents some good points.