Commercial RE 101: Any suggestions

[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.

[Coronita]

[quote=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.[/quote]

Brian, I have to ask…Often, on this blog, you’ve berated folks who are buying a primary home right now in san diego, saying that people even in this day are going overpaying and in some cases you “can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…Yet, at the same time, you’re talking about investing in Philly, an area which you’re just acquainting yourself with as an investor (versus a tourist/visitor), for which you even say you even admit there’s a chance you might lose your ass, so to speak..

I don’t get it. Given the choices of potentially losing money to a speculation versus losing money to a primary home which you could still live in after the loss, wouldn’t it make more sense to put your money into the later category versus the former? I mean, if it doesn’t work out, do you have plans to move into that mixed use property to live in? It just strikes me odd, because I thought the entire point of renting was wait until home prices were more affordable, and in the meantime, save as much money is the lowest risk possible to be able to jump on that primary home when one has the chance.

It just seems contrarian that after spending that long on renting, and waiting for that long, one would at the same time speculate that saved money on something with considerable risk at this point, when the primary home purchase hasn’t completed.

What if things don’t work out, you loose a good deal of your money, you can’t sell the place, and need to walk? Even if home prices here reach the level you like, would your financial resources and/or your credit be shot? You make it sound really easy, that if you just do some research, you can’t make a mistake. But what if you aren’t correct? What if, crap does happen, and things don’t go as planned?

I’m just curious, because I’ve posed this question to this blog many times before….By waiting “for the bottom” in a primary home, how many people are really effectively saving during that wait and avoiding speculation that could eat away at their $$$$ while waiting for the bottom.

[Coronita]

[quote=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.[/quote]

Brian, I have to ask…Often, on this blog, you’ve berated folks who are buying a primary home right now in san diego, saying that people even in this day are going overpaying and in some cases you “can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…Yet, at the same time, you’re talking about investing in Philly, an area which you’re just acquainting yourself with as an investor (versus a tourist/visitor), for which you even say you even admit there’s a chance you might lose your ass, so to speak..

I don’t get it. Given the choices of potentially losing money to a speculation versus losing money to a primary home which you could still live in after the loss, wouldn’t it make more sense to put your money into the later category versus the former? I mean, if it doesn’t work out, do you have plans to move into that mixed use property to live in? It just strikes me odd, because I thought the entire point of renting was wait until home prices were more affordable, and in the meantime, save as much money is the lowest risk possible to be able to jump on that primary home when one has the chance.

It just seems contrarian that after spending that long on renting, and waiting for that long, one would at the same time speculate that saved money on something with considerable risk at this point, when the primary home purchase hasn’t completed.

What if things don’t work out, you loose a good deal of your money, you can’t sell the place, and need to walk? Even if home prices here reach the level you like, would your financial resources and/or your credit be shot? You make it sound really easy, that if you just do some research, you can’t make a mistake. But what if you aren’t correct? What if, crap does happen, and things don’t go as planned?

I’m just curious, because I’ve posed this question to this blog many times before….By waiting “for the bottom” in a primary home, how many people are really effectively saving during that wait and avoiding speculation that could eat away at their $$$$ while waiting for the bottom.

[Coronita]

[quote=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.[/quote]

Brian, I have to ask…Often, on this blog, you’ve berated folks who are buying a primary home right now in san diego, saying that people even in this day are going overpaying and in some cases you “can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…Yet, at the same time, you’re talking about investing in Philly, an area which you’re just acquainting yourself with as an investor (versus a tourist/visitor), for which you even say you even admit there’s a chance you might lose your ass, so to speak..

I don’t get it. Given the choices of potentially losing money to a speculation versus losing money to a primary home which you could still live in after the loss, wouldn’t it make more sense to put your money into the later category versus the former? I mean, if it doesn’t work out, do you have plans to move into that mixed use property to live in? It just strikes me odd, because I thought the entire point of renting was wait until home prices were more affordable, and in the meantime, save as much money is the lowest risk possible to be able to jump on that primary home when one has the chance.

It just seems contrarian that after spending that long on renting, and waiting for that long, one would at the same time speculate that saved money on something with considerable risk at this point, when the primary home purchase hasn’t completed.

What if things don’t work out, you loose a good deal of your money, you can’t sell the place, and need to walk? Even if home prices here reach the level you like, would your financial resources and/or your credit be shot? You make it sound really easy, that if you just do some research, you can’t make a mistake. But what if you aren’t correct? What if, crap does happen, and things don’t go as planned?

I’m just curious, because I’ve posed this question to this blog many times before….By waiting “for the bottom” in a primary home, how many people are really effectively saving during that wait and avoiding speculation that could eat away at their $$$$ while waiting for the bottom.

[Coronita]

[quote=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.[/quote]

Brian, I have to ask…Often, on this blog, you’ve berated folks who are buying a primary home right now in san diego, saying that people even in this day are going overpaying and in some cases you “can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…Yet, at the same time, you’re talking about investing in Philly, an area which you’re just acquainting yourself with as an investor (versus a tourist/visitor), for which you even say you even admit there’s a chance you might lose your ass, so to speak..

I don’t get it. Given the choices of potentially losing money to a speculation versus losing money to a primary home which you could still live in after the loss, wouldn’t it make more sense to put your money into the later category versus the former? I mean, if it doesn’t work out, do you have plans to move into that mixed use property to live in? It just strikes me odd, because I thought the entire point of renting was wait until home prices were more affordable, and in the meantime, save as much money is the lowest risk possible to be able to jump on that primary home when one has the chance.

It just seems contrarian that after spending that long on renting, and waiting for that long, one would at the same time speculate that saved money on something with considerable risk at this point, when the primary home purchase hasn’t completed.

What if things don’t work out, you loose a good deal of your money, you can’t sell the place, and need to walk? Even if home prices here reach the level you like, would your financial resources and/or your credit be shot? You make it sound really easy, that if you just do some research, you can’t make a mistake. But what if you aren’t correct? What if, crap does happen, and things don’t go as planned?

I’m just curious, because I’ve posed this question to this blog many times before….By waiting “for the bottom” in a primary home, how many people are really effectively saving during that wait and avoiding speculation that could eat away at their $$$$ while waiting for the bottom.

[Coronita]

[quote=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.[/quote]

Brian, I have to ask…Often, on this blog, you’ve berated folks who are buying a primary home right now in san diego, saying that people even in this day are going overpaying and in some cases you “can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…Yet, at the same time, you’re talking about investing in Philly, an area which you’re just acquainting yourself with as an investor (versus a tourist/visitor), for which you even say you even admit there’s a chance you might lose your ass, so to speak..

I don’t get it. Given the choices of potentially losing money to a speculation versus losing money to a primary home which you could still live in after the loss, wouldn’t it make more sense to put your money into the later category versus the former? I mean, if it doesn’t work out, do you have plans to move into that mixed use property to live in? It just strikes me odd, because I thought the entire point of renting was wait until home prices were more affordable, and in the meantime, save as much money is the lowest risk possible to be able to jump on that primary home when one has the chance.

It just seems contrarian that after spending that long on renting, and waiting for that long, one would at the same time speculate that saved money on something with considerable risk at this point, when the primary home purchase hasn’t completed.

What if things don’t work out, you loose a good deal of your money, you can’t sell the place, and need to walk? Even if home prices here reach the level you like, would your financial resources and/or your credit be shot? You make it sound really easy, that if you just do some research, you can’t make a mistake. But what if you aren’t correct? What if, crap does happen, and things don’t go as planned?

I’m just curious, because I’ve posed this question to this blog many times before….By waiting “for the bottom” in a primary home, how many people are really effectively saving during that wait and avoiding speculation that could eat away at their $$$$ while waiting for the bottom.

[briansd1]

[quote=flu]”can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…[/quote]

I never wrote anything like that. It’s your
interpretation.

I like to rent downtown because the landlord pays property taxes and HOA (typical HOA downtown is $500-$900/mo.). The difference hardly covers the debt service.

About mixed use, first, I wouldn’t buy anything that couldn’t cash flow. Single family houses sell based on comps, but mixed use sell more on cash-flow.

Second, the reason I like multi/mixed use buildings is that they are income producing for the occupant (renter or owner/resident) who can run a business.

In addition to socializing with established White people, I know new immigrants who operate small businesses from home. They could definitely benefit from living in a shophouse or a mixed use building with street frontage. Philadelphia is very immigrant friendly.

Third, mixed used buildings can easily be reconfigured. A 2-bedroom apartment can easily be turned to 2 studios for higher rents. Drywall are easy to put up and fit-and-finish don’t matter that much.

As we all noticed, low-end housing tend to cash flow much better than high-end. If I could buy a 3000sf mixed-use warehouse on University Ave for the same price as a 2000sf house in Carlsbad, I would.

I was just bringing up the opportunities of mixed use (which are rare in SD). I’m pointing out that in Philly, you can buy a mixed use building in the city for less than a typical house in the suburbs.

Philly in an old city and sometimes the family that owned a warehouse for decades just want to sell. The heirs moved to Florida and don’t even know the city. Several generation removed, they might even be afraid of the safety in the city. Safety is a relative thing. I personally don’t have a problem walking downtown at night, or driving to a restaurant in East San Diego at night (but I know people who won’t).

The city is not for everybody. I like it. I don’t even mind the traffic of having to pay for parking.

[briansd1]

[quote=flu]”can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…[/quote]

I never wrote anything like that. It’s your
interpretation.

I like to rent downtown because the landlord pays property taxes and HOA (typical HOA downtown is $500-$900/mo.). The difference hardly covers the debt service.

About mixed use, first, I wouldn’t buy anything that couldn’t cash flow. Single family houses sell based on comps, but mixed use sell more on cash-flow.

Second, the reason I like multi/mixed use buildings is that they are income producing for the occupant (renter or owner/resident) who can run a business.

In addition to socializing with established White people, I know new immigrants who operate small businesses from home. They could definitely benefit from living in a shophouse or a mixed use building with street frontage. Philadelphia is very immigrant friendly.

Third, mixed used buildings can easily be reconfigured. A 2-bedroom apartment can easily be turned to 2 studios for higher rents. Drywall are easy to put up and fit-and-finish don’t matter that much.

As we all noticed, low-end housing tend to cash flow much better than high-end. If I could buy a 3000sf mixed-use warehouse on University Ave for the same price as a 2000sf house in Carlsbad, I would.

I was just bringing up the opportunities of mixed use (which are rare in SD). I’m pointing out that in Philly, you can buy a mixed use building in the city for less than a typical house in the suburbs.

Philly in an old city and sometimes the family that owned a warehouse for decades just want to sell. The heirs moved to Florida and don’t even know the city. Several generation removed, they might even be afraid of the safety in the city. Safety is a relative thing. I personally don’t have a problem walking downtown at night, or driving to a restaurant in East San Diego at night (but I know people who won’t).

The city is not for everybody. I like it. I don’t even mind the traffic of having to pay for parking.

[briansd1]

[quote=flu]”can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…[/quote]

I never wrote anything like that. It’s your
interpretation.

I like to rent downtown because the landlord pays property taxes and HOA (typical HOA downtown is $500-$900/mo.). The difference hardly covers the debt service.

About mixed use, first, I wouldn’t buy anything that couldn’t cash flow. Single family houses sell based on comps, but mixed use sell more on cash-flow.

Second, the reason I like multi/mixed use buildings is that they are income producing for the occupant (renter or owner/resident) who can run a business.

In addition to socializing with established White people, I know new immigrants who operate small businesses from home. They could definitely benefit from living in a shophouse or a mixed use building with street frontage. Philadelphia is very immigrant friendly.

Third, mixed used buildings can easily be reconfigured. A 2-bedroom apartment can easily be turned to 2 studios for higher rents. Drywall are easy to put up and fit-and-finish don’t matter that much.

As we all noticed, low-end housing tend to cash flow much better than high-end. If I could buy a 3000sf mixed-use warehouse on University Ave for the same price as a 2000sf house in Carlsbad, I would.

I was just bringing up the opportunities of mixed use (which are rare in SD). I’m pointing out that in Philly, you can buy a mixed use building in the city for less than a typical house in the suburbs.

Philly in an old city and sometimes the family that owned a warehouse for decades just want to sell. The heirs moved to Florida and don’t even know the city. Several generation removed, they might even be afraid of the safety in the city. Safety is a relative thing. I personally don’t have a problem walking downtown at night, or driving to a restaurant in East San Diego at night (but I know people who won’t).

The city is not for everybody. I like it. I don’t even mind the traffic of having to pay for parking.

[briansd1]

[quote=flu]”can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…[/quote]

I never wrote anything like that. It’s your
interpretation.

I like to rent downtown because the landlord pays property taxes and HOA (typical HOA downtown is $500-$900/mo.). The difference hardly covers the debt service.

About mixed use, first, I wouldn’t buy anything that couldn’t cash flow. Single family houses sell based on comps, but mixed use sell more on cash-flow.

Second, the reason I like multi/mixed use buildings is that they are income producing for the occupant (renter or owner/resident) who can run a business.

In addition to socializing with established White people, I know new immigrants who operate small businesses from home. They could definitely benefit from living in a shophouse or a mixed use building with street frontage. Philadelphia is very immigrant friendly.

Third, mixed used buildings can easily be reconfigured. A 2-bedroom apartment can easily be turned to 2 studios for higher rents. Drywall are easy to put up and fit-and-finish don’t matter that much.

As we all noticed, low-end housing tend to cash flow much better than high-end. If I could buy a 3000sf mixed-use warehouse on University Ave for the same price as a 2000sf house in Carlsbad, I would.

I was just bringing up the opportunities of mixed use (which are rare in SD). I’m pointing out that in Philly, you can buy a mixed use building in the city for less than a typical house in the suburbs.

Philly in an old city and sometimes the family that owned a warehouse for decades just want to sell. The heirs moved to Florida and don’t even know the city. Several generation removed, they might even be afraid of the safety in the city. Safety is a relative thing. I personally don’t have a problem walking downtown at night, or driving to a restaurant in East San Diego at night (but I know people who won’t).

The city is not for everybody. I like it. I don’t even mind the traffic of having to pay for parking.

[briansd1]

[quote=flu]”can’t wait to wipe that smug smile off of some people’s face in Carmel Valley”, and use this as a reason for why you rent…[/quote]

I never wrote anything like that. It’s your
interpretation.

I like to rent downtown because the landlord pays property taxes and HOA (typical HOA downtown is $500-$900/mo.). The difference hardly covers the debt service.

About mixed use, first, I wouldn’t buy anything that couldn’t cash flow. Single family houses sell based on comps, but mixed use sell more on cash-flow.

Second, the reason I like multi/mixed use buildings is that they are income producing for the occupant (renter or owner/resident) who can run a business.

In addition to socializing with established White people, I know new immigrants who operate small businesses from home. They could definitely benefit from living in a shophouse or a mixed use building with street frontage. Philadelphia is very immigrant friendly.

Third, mixed used buildings can easily be reconfigured. A 2-bedroom apartment can easily be turned to 2 studios for higher rents. Drywall are easy to put up and fit-and-finish don’t matter that much.

As we all noticed, low-end housing tend to cash flow much better than high-end. If I could buy a 3000sf mixed-use warehouse on University Ave for the same price as a 2000sf house in Carlsbad, I would.

I was just bringing up the opportunities of mixed use (which are rare in SD). I’m pointing out that in Philly, you can buy a mixed use building in the city for less than a typical house in the suburbs.

Philly in an old city and sometimes the family that owned a warehouse for decades just want to sell. The heirs moved to Florida and don’t even know the city. Several generation removed, they might even be afraid of the safety in the city. Safety is a relative thing. I personally don’t have a problem walking downtown at night, or driving to a restaurant in East San Diego at night (but I know people who won’t).

The city is not for everybody. I like it. I don’t even mind the traffic of having to pay for parking.

[sdrealtor]

Brian
Did you actually say “Philadelphia is very immigrant friendly”. If you did you seriously have your head up your….

The primary reason I left Philly is because people there are very closed minded and EXTRAORDINARILY prejudiced. You may think it is otherwise but I lived there and grew up there. I know many of the old families with wealth many generations deep. I know far more people there than here and if there is one thing I know its Philly people. On the surface they may not seem so but I know the conversations that go on behind your back and they are horrific. I couldnt bear to live in a place like that anymore so I left. Calling them immigrant friendly is bizarre to say the least.

[sdrealtor]

Brian
Did you actually say “Philadelphia is very immigrant friendly”. If you did you seriously have your head up your….

The primary reason I left Philly is because people there are very closed minded and EXTRAORDINARILY prejudiced. You may think it is otherwise but I lived there and grew up there. I know many of the old families with wealth many generations deep. I know far more people there than here and if there is one thing I know its Philly people. On the surface they may not seem so but I know the conversations that go on behind your back and they are horrific. I couldnt bear to live in a place like that anymore so I left. Calling them immigrant friendly is bizarre to say the least.

[sdrealtor]

Brian
Did you actually say “Philadelphia is very immigrant friendly”. If you did you seriously have your head up your….

The primary reason I left Philly is because people there are very closed minded and EXTRAORDINARILY prejudiced. You may think it is otherwise but I lived there and grew up there. I know many of the old families with wealth many generations deep. I know far more people there than here and if there is one thing I know its Philly people. On the surface they may not seem so but I know the conversations that go on behind your back and they are horrific. I couldnt bear to live in a place like that anymore so I left. Calling them immigrant friendly is bizarre to say the least.

[sdrealtor]

Brian
Did you actually say “Philadelphia is very immigrant friendly”. If you did you seriously have your head up your….

The primary reason I left Philly is because people there are very closed minded and EXTRAORDINARILY prejudiced. You may think it is otherwise but I lived there and grew up there. I know many of the old families with wealth many generations deep. I know far more people there than here and if there is one thing I know its Philly people. On the surface they may not seem so but I know the conversations that go on behind your back and they are horrific. I couldnt bear to live in a place like that anymore so I left. Calling them immigrant friendly is bizarre to say the least.

[Author]

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