Commercial RE 101: Any suggestions

[surveyor]

downs

In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.

[SK in CV]

[quote=flu]
So at the risk of sounding really dumb (so be it),
I was just curious as someone knowledgeable in any one of those categories could kinda give an overview of that categories investment model, financing,etc to a completely clueless person like me…
with the exception of hotels(or any time of residential short term rentals),

a)public storage
b)office space
c)you mention mixed use? Can you elaborate?

[/quote]

No, I can’t 🙂

But maybe I can add a few words that might lead you in the right direction.

PS properties. Long time favorites of investment real estate packagers. If properties are in the right market, very reliable cash flow, rarely are there sudden changes in the market. When residential is bad, homeowners downsize, need some place to store their shit. When economy is good, same thing, people need somewhere to store their shit. Lower cost of construction. Don’t require prime locations. Low management and maintenance headaches. Tend to be lower leveraged investments. I think its hard to borrow much more than 65%-70% max. My recent experience is through a local investment group that’s been in the business for awhile. When I google “san diego self storage properties cash flow”, they’re the first company to come up. (Your results may vary) Not a referral, but my experience has been good.

Office Space – Go pick the brain of someone at CB Richard Ellis. 15-20 years ago, people made gigantous money in a similar rental market when stuff was going for 10 to 20% of previous comps. 600 B st downtown sold for like $6 million. Last time i saw it move, it was something like $105 million.

Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.

[SK in CV]

[quote=flu]
So at the risk of sounding really dumb (so be it),
I was just curious as someone knowledgeable in any one of those categories could kinda give an overview of that categories investment model, financing,etc to a completely clueless person like me…
with the exception of hotels(or any time of residential short term rentals),

a)public storage
b)office space
c)you mention mixed use? Can you elaborate?

[/quote]

No, I can’t 🙂

But maybe I can add a few words that might lead you in the right direction.

PS properties. Long time favorites of investment real estate packagers. If properties are in the right market, very reliable cash flow, rarely are there sudden changes in the market. When residential is bad, homeowners downsize, need some place to store their shit. When economy is good, same thing, people need somewhere to store their shit. Lower cost of construction. Don’t require prime locations. Low management and maintenance headaches. Tend to be lower leveraged investments. I think its hard to borrow much more than 65%-70% max. My recent experience is through a local investment group that’s been in the business for awhile. When I google “san diego self storage properties cash flow”, they’re the first company to come up. (Your results may vary) Not a referral, but my experience has been good.

Office Space – Go pick the brain of someone at CB Richard Ellis. 15-20 years ago, people made gigantous money in a similar rental market when stuff was going for 10 to 20% of previous comps. 600 B st downtown sold for like $6 million. Last time i saw it move, it was something like $105 million.

Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.

[SK in CV]

[quote=flu]
So at the risk of sounding really dumb (so be it),
I was just curious as someone knowledgeable in any one of those categories could kinda give an overview of that categories investment model, financing,etc to a completely clueless person like me…
with the exception of hotels(or any time of residential short term rentals),

a)public storage
b)office space
c)you mention mixed use? Can you elaborate?

[/quote]

No, I can’t 🙂

But maybe I can add a few words that might lead you in the right direction.

PS properties. Long time favorites of investment real estate packagers. If properties are in the right market, very reliable cash flow, rarely are there sudden changes in the market. When residential is bad, homeowners downsize, need some place to store their shit. When economy is good, same thing, people need somewhere to store their shit. Lower cost of construction. Don’t require prime locations. Low management and maintenance headaches. Tend to be lower leveraged investments. I think its hard to borrow much more than 65%-70% max. My recent experience is through a local investment group that’s been in the business for awhile. When I google “san diego self storage properties cash flow”, they’re the first company to come up. (Your results may vary) Not a referral, but my experience has been good.

Office Space – Go pick the brain of someone at CB Richard Ellis. 15-20 years ago, people made gigantous money in a similar rental market when stuff was going for 10 to 20% of previous comps. 600 B st downtown sold for like $6 million. Last time i saw it move, it was something like $105 million.

Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.

[SK in CV]

[quote=flu]
So at the risk of sounding really dumb (so be it),
I was just curious as someone knowledgeable in any one of those categories could kinda give an overview of that categories investment model, financing,etc to a completely clueless person like me…
with the exception of hotels(or any time of residential short term rentals),

a)public storage
b)office space
c)you mention mixed use? Can you elaborate?

[/quote]

No, I can’t 🙂

But maybe I can add a few words that might lead you in the right direction.

PS properties. Long time favorites of investment real estate packagers. If properties are in the right market, very reliable cash flow, rarely are there sudden changes in the market. When residential is bad, homeowners downsize, need some place to store their shit. When economy is good, same thing, people need somewhere to store their shit. Lower cost of construction. Don’t require prime locations. Low management and maintenance headaches. Tend to be lower leveraged investments. I think its hard to borrow much more than 65%-70% max. My recent experience is through a local investment group that’s been in the business for awhile. When I google “san diego self storage properties cash flow”, they’re the first company to come up. (Your results may vary) Not a referral, but my experience has been good.

Office Space – Go pick the brain of someone at CB Richard Ellis. 15-20 years ago, people made gigantous money in a similar rental market when stuff was going for 10 to 20% of previous comps. 600 B st downtown sold for like $6 million. Last time i saw it move, it was something like $105 million.

Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.

[SK in CV]

[quote=flu]
So at the risk of sounding really dumb (so be it),
I was just curious as someone knowledgeable in any one of those categories could kinda give an overview of that categories investment model, financing,etc to a completely clueless person like me…
with the exception of hotels(or any time of residential short term rentals),

a)public storage
b)office space
c)you mention mixed use? Can you elaborate?

[/quote]

No, I can’t 🙂

But maybe I can add a few words that might lead you in the right direction.

PS properties. Long time favorites of investment real estate packagers. If properties are in the right market, very reliable cash flow, rarely are there sudden changes in the market. When residential is bad, homeowners downsize, need some place to store their shit. When economy is good, same thing, people need somewhere to store their shit. Lower cost of construction. Don’t require prime locations. Low management and maintenance headaches. Tend to be lower leveraged investments. I think its hard to borrow much more than 65%-70% max. My recent experience is through a local investment group that’s been in the business for awhile. When I google “san diego self storage properties cash flow”, they’re the first company to come up. (Your results may vary) Not a referral, but my experience has been good.

Office Space – Go pick the brain of someone at CB Richard Ellis. 15-20 years ago, people made gigantous money in a similar rental market when stuff was going for 10 to 20% of previous comps. 600 B st downtown sold for like $6 million. Last time i saw it move, it was something like $105 million.

Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.

[briansd1]

[quote=SK in CV]
Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.[/quote]

I think that your sister might be on to something. This can work well for the small investor, and if she lives there, she will cover a big part of her carrying costs already.

And I agree that it’s rare to find something like this in San Diego. I regret not buying a warehouse in the East Village when I was young, to live in and rent out to small businesses.

I’m buying a warehouse, in Philadelphia w/ lofts to rent out. My friend will occupy one space. Then I’ll rent out the rest to small businesses (bicycle shops, small distributor, etc..).

Something like these, but not. But they give an idea. Prices will vary depending on location.
http://philadelphia.craigslist.org/reb/1696516138.html
http://philadelphia.craigslist.org/reo/1760396290.html

Loft living can be very nice, if you don’t mind some urban grunge and have a good alarm system for safety.
http://philadelphia.craigslist.org/reb/1723036823.html

[briansd1]

[quote=SK in CV]
Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.[/quote]

I think that your sister might be on to something. This can work well for the small investor, and if she lives there, she will cover a big part of her carrying costs already.

And I agree that it’s rare to find something like this in San Diego. I regret not buying a warehouse in the East Village when I was young, to live in and rent out to small businesses.

I’m buying a warehouse, in Philadelphia w/ lofts to rent out. My friend will occupy one space. Then I’ll rent out the rest to small businesses (bicycle shops, small distributor, etc..).

Something like these, but not. But they give an idea. Prices will vary depending on location.
http://philadelphia.craigslist.org/reb/1696516138.html
http://philadelphia.craigslist.org/reo/1760396290.html

Loft living can be very nice, if you don’t mind some urban grunge and have a good alarm system for safety.
http://philadelphia.craigslist.org/reb/1723036823.html

[briansd1]

[quote=SK in CV]
Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.[/quote]

I think that your sister might be on to something. This can work well for the small investor, and if she lives there, she will cover a big part of her carrying costs already.

And I agree that it’s rare to find something like this in San Diego. I regret not buying a warehouse in the East Village when I was young, to live in and rent out to small businesses.

I’m buying a warehouse, in Philadelphia w/ lofts to rent out. My friend will occupy one space. Then I’ll rent out the rest to small businesses (bicycle shops, small distributor, etc..).

Something like these, but not. But they give an idea. Prices will vary depending on location.
http://philadelphia.craigslist.org/reb/1696516138.html
http://philadelphia.craigslist.org/reo/1760396290.html

Loft living can be very nice, if you don’t mind some urban grunge and have a good alarm system for safety.
http://philadelphia.craigslist.org/reb/1723036823.html

[briansd1]

[quote=SK in CV]
Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.[/quote]

I think that your sister might be on to something. This can work well for the small investor, and if she lives there, she will cover a big part of her carrying costs already.

And I agree that it’s rare to find something like this in San Diego. I regret not buying a warehouse in the East Village when I was young, to live in and rent out to small businesses.

I’m buying a warehouse, in Philadelphia w/ lofts to rent out. My friend will occupy one space. Then I’ll rent out the rest to small businesses (bicycle shops, small distributor, etc..).

Something like these, but not. But they give an idea. Prices will vary depending on location.
http://philadelphia.craigslist.org/reb/1696516138.html
http://philadelphia.craigslist.org/reo/1760396290.html

Loft living can be very nice, if you don’t mind some urban grunge and have a good alarm system for safety.
http://philadelphia.craigslist.org/reb/1723036823.html

[briansd1]

[quote=SK in CV]
Mixed Use – Forget i said anything. I was just throwing out examples of different types. It came to mind because my sister is in escrow on a building with 2 retail units downstairs and i think 4 apartments upstairs. She’s going to occupy one of the retail spaces, so it may make sense for her. I think its a pretty rare kind of property in SD, except for maybe older stuff in Hillcrest and Bankers Hill. May be some opportunities, I have no idea, but this particular building makes no sense at all except for the special circumstances.[/quote]

I think that your sister might be on to something. This can work well for the small investor, and if she lives there, she will cover a big part of her carrying costs already.

And I agree that it’s rare to find something like this in San Diego. I regret not buying a warehouse in the East Village when I was young, to live in and rent out to small businesses.

I’m buying a warehouse, in Philadelphia w/ lofts to rent out. My friend will occupy one space. Then I’ll rent out the rest to small businesses (bicycle shops, small distributor, etc..).

Something like these, but not. But they give an idea. Prices will vary depending on location.
http://philadelphia.craigslist.org/reb/1696516138.html
http://philadelphia.craigslist.org/reo/1760396290.html

Loft living can be very nice, if you don’t mind some urban grunge and have a good alarm system for safety.
http://philadelphia.craigslist.org/reb/1723036823.html

[sdrealtor]

Ahhh….Philly! My hometown. Hope you dont end up with too much of what we call an ejumication.

[sdrealtor]

Ahhh….Philly! My hometown. Hope you dont end up with too much of what we call an ejumication.

[sdrealtor]

Ahhh….Philly! My hometown. Hope you dont end up with too much of what we call an ejumication.

[sdrealtor]

Ahhh….Philly! My hometown. Hope you dont end up with too much of what we call an ejumication.

[Author]

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