Commercial RE 101: Any suggestions

[briansd1]

[quote=sdrealtor]SD is full of long term upside. Philly….not so.
[/quote]

That’s a pretty broad statement. I wonder if people who buy real estate in Philadelphia are bound to lose money.

I may yet lose my ass, as you put it… Time will tell. But I’m willing to take my chances.

Still, being no bull, I, however, believe that one can make money in any market, if one does research. I’ve been researching Philadelphia for 1 year already.

On the topic of mixed use commercial properties, if you’re a small individual investor and want to own a building, in a major population center, for under $1 million, San Diego is not a friendly market. You may have to look elsewhere. I’m not recommending Philly in particular. Visiting friends caused to look at Philly.

In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped), and the like. And the prices won’t likely won’t cash flow.

I’d love to have some suggestions on mixed use commercial properties in Southern California or elsewhere, in walkable neighborhoods, for small investors.

[clearfund]

“In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.

[clearfund]

“In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.

[clearfund]

“In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.

[clearfund]

“In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.

[clearfund]

“In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.

[briansd1]

[quote=clearfund]”In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.[/quote]

I agree, one should not buy a property that won’t cash flow. That’s why San Diego is not good for mixed use in my opinion.

Grantville is slated for redevelopment.
http://www.sandiego.gov/redevelopment-agency/grantville.shtml

I’m not talking about buying strictly in hopes of appreciation. I’m interested in mixed use (live/work) building because, you can live in it, rent part of it out and operate a business, all at the same time (instead of living in a separate single family house or condo).

For example if you operate a small business, you may wish to buy a mixed-use building to locate your business, live in it and rent part of it out. The cash flow is covered to include a reasonable return. And appreciation thanks to potential redevelopment is the gravy, but you don’t count on it.

I believe that a mixed use building also is great for small entrepreneurs who have hobbies or like to moonlight. For example, you might have an idea that could generate a modest positive $2000/mo in cash flow (maybe something to do with friends and relatives). But you can’t start with it because you have to rent a suite/storage that will eat away all your profits. But if you can operate from your mixed use home/building, you have more options (such as working on your business after your day job hours or on weekends).

A mixed use building also allows the occupant to reduce the commute to zero. That’s a lot of productive time saved.

Mixed used building are generally in old areas because the urban planning of the past few decades didn’t allow them.

[briansd1]

[quote=clearfund]”In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.[/quote]

I agree, one should not buy a property that won’t cash flow. That’s why San Diego is not good for mixed use in my opinion.

Grantville is slated for redevelopment.
http://www.sandiego.gov/redevelopment-agency/grantville.shtml

I’m not talking about buying strictly in hopes of appreciation. I’m interested in mixed use (live/work) building because, you can live in it, rent part of it out and operate a business, all at the same time (instead of living in a separate single family house or condo).

For example if you operate a small business, you may wish to buy a mixed-use building to locate your business, live in it and rent part of it out. The cash flow is covered to include a reasonable return. And appreciation thanks to potential redevelopment is the gravy, but you don’t count on it.

I believe that a mixed use building also is great for small entrepreneurs who have hobbies or like to moonlight. For example, you might have an idea that could generate a modest positive $2000/mo in cash flow (maybe something to do with friends and relatives). But you can’t start with it because you have to rent a suite/storage that will eat away all your profits. But if you can operate from your mixed use home/building, you have more options (such as working on your business after your day job hours or on weekends).

A mixed use building also allows the occupant to reduce the commute to zero. That’s a lot of productive time saved.

Mixed used building are generally in old areas because the urban planning of the past few decades didn’t allow them.

[briansd1]

[quote=clearfund]”In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.[/quote]

I agree, one should not buy a property that won’t cash flow. That’s why San Diego is not good for mixed use in my opinion.

Grantville is slated for redevelopment.
http://www.sandiego.gov/redevelopment-agency/grantville.shtml

I’m not talking about buying strictly in hopes of appreciation. I’m interested in mixed use (live/work) building because, you can live in it, rent part of it out and operate a business, all at the same time (instead of living in a separate single family house or condo).

For example if you operate a small business, you may wish to buy a mixed-use building to locate your business, live in it and rent part of it out. The cash flow is covered to include a reasonable return. And appreciation thanks to potential redevelopment is the gravy, but you don’t count on it.

I believe that a mixed use building also is great for small entrepreneurs who have hobbies or like to moonlight. For example, you might have an idea that could generate a modest positive $2000/mo in cash flow (maybe something to do with friends and relatives). But you can’t start with it because you have to rent a suite/storage that will eat away all your profits. But if you can operate from your mixed use home/building, you have more options (such as working on your business after your day job hours or on weekends).

A mixed use building also allows the occupant to reduce the commute to zero. That’s a lot of productive time saved.

Mixed used building are generally in old areas because the urban planning of the past few decades didn’t allow them.

[briansd1]

[quote=clearfund]”In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.[/quote]

I agree, one should not buy a property that won’t cash flow. That’s why San Diego is not good for mixed use in my opinion.

Grantville is slated for redevelopment.
http://www.sandiego.gov/redevelopment-agency/grantville.shtml

I’m not talking about buying strictly in hopes of appreciation. I’m interested in mixed use (live/work) building because, you can live in it, rent part of it out and operate a business, all at the same time (instead of living in a separate single family house or condo).

For example if you operate a small business, you may wish to buy a mixed-use building to locate your business, live in it and rent part of it out. The cash flow is covered to include a reasonable return. And appreciation thanks to potential redevelopment is the gravy, but you don’t count on it.

I believe that a mixed use building also is great for small entrepreneurs who have hobbies or like to moonlight. For example, you might have an idea that could generate a modest positive $2000/mo in cash flow (maybe something to do with friends and relatives). But you can’t start with it because you have to rent a suite/storage that will eat away all your profits. But if you can operate from your mixed use home/building, you have more options (such as working on your business after your day job hours or on weekends).

A mixed use building also allows the occupant to reduce the commute to zero. That’s a lot of productive time saved.

Mixed used building are generally in old areas because the urban planning of the past few decades didn’t allow them.

[briansd1]

[quote=clearfund]”In SD, you’re limited to along University Ave, El Cajon Blvd, La Mesa, Grantville (which will get redeveloped).”

They will get redeveloped?? Really? When? How? That seems like an unneeded risk (hope/wish) to assume on property that won’t cash flow.

Might as well buy stock on the hopes of a takeover. Buying property like this requires inside info so you know what/when/how its going to happen then find a seller who knows nothing.

Otherwise its redevelopment potential is already priced in.

This isn’t risk, its betting/gambling. Best of luck.[/quote]

I agree, one should not buy a property that won’t cash flow. That’s why San Diego is not good for mixed use in my opinion.

Grantville is slated for redevelopment.
http://www.sandiego.gov/redevelopment-agency/grantville.shtml

I’m not talking about buying strictly in hopes of appreciation. I’m interested in mixed use (live/work) building because, you can live in it, rent part of it out and operate a business, all at the same time (instead of living in a separate single family house or condo).

For example if you operate a small business, you may wish to buy a mixed-use building to locate your business, live in it and rent part of it out. The cash flow is covered to include a reasonable return. And appreciation thanks to potential redevelopment is the gravy, but you don’t count on it.

I believe that a mixed use building also is great for small entrepreneurs who have hobbies or like to moonlight. For example, you might have an idea that could generate a modest positive $2000/mo in cash flow (maybe something to do with friends and relatives). But you can’t start with it because you have to rent a suite/storage that will eat away all your profits. But if you can operate from your mixed use home/building, you have more options (such as working on your business after your day job hours or on weekends).

A mixed use building also allows the occupant to reduce the commute to zero. That’s a lot of productive time saved.

Mixed used building are generally in old areas because the urban planning of the past few decades didn’t allow them.

[sdrealtor]

Never said all property owners in Philly lose money. They just dont make much money. The father of one of my best friends since birth made alot of money developing commercial property in the Philly area between 1960 and 1980 but basically nothing since. My friend has spent the last 30 years of his life trying to develop some of the vast land holdings his family has. It hasnt gone well to say the least.

[sdrealtor]

Never said all property owners in Philly lose money. They just dont make much money. The father of one of my best friends since birth made alot of money developing commercial property in the Philly area between 1960 and 1980 but basically nothing since. My friend has spent the last 30 years of his life trying to develop some of the vast land holdings his family has. It hasnt gone well to say the least.

[sdrealtor]

Never said all property owners in Philly lose money. They just dont make much money. The father of one of my best friends since birth made alot of money developing commercial property in the Philly area between 1960 and 1980 but basically nothing since. My friend has spent the last 30 years of his life trying to develop some of the vast land holdings his family has. It hasnt gone well to say the least.

[sdrealtor]

Never said all property owners in Philly lose money. They just dont make much money. The father of one of my best friends since birth made alot of money developing commercial property in the Philly area between 1960 and 1980 but basically nothing since. My friend has spent the last 30 years of his life trying to develop some of the vast land holdings his family has. It hasnt gone well to say the least.

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