Commercial RE 101: Any suggestions

[clearfund]

“Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.

We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.

I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.

[briansd1]

[quote=clearfund]”Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

[/quote]

clearfund, that’s pretty admirable and very much in line with the rigorous approach I that normally follow.

You will be able to give your investors consistent, predictable returns.

If you’ve read my posts, you would know that I’ve taken issue with optimistic assessments, especially in light of arguments such as “the financial bailouts will result in disaster.”

In my Philadelphia purchase, I’m willing to take a little bit of a gamble at a price I can’t touch in San Diego. I will admit that I do like Philadelphia’s downtown, and always enjoy visiting there. So there are animal spirits at play here.

I have people lined up to rent… but of course they are far from Fortune 100 caliber.

[briansd1]

[quote=clearfund]”Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

[/quote]

clearfund, that’s pretty admirable and very much in line with the rigorous approach I that normally follow.

You will be able to give your investors consistent, predictable returns.

If you’ve read my posts, you would know that I’ve taken issue with optimistic assessments, especially in light of arguments such as “the financial bailouts will result in disaster.”

In my Philadelphia purchase, I’m willing to take a little bit of a gamble at a price I can’t touch in San Diego. I will admit that I do like Philadelphia’s downtown, and always enjoy visiting there. So there are animal spirits at play here.

I have people lined up to rent… but of course they are far from Fortune 100 caliber.

[briansd1]

[quote=clearfund]”Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

[/quote]

clearfund, that’s pretty admirable and very much in line with the rigorous approach I that normally follow.

You will be able to give your investors consistent, predictable returns.

If you’ve read my posts, you would know that I’ve taken issue with optimistic assessments, especially in light of arguments such as “the financial bailouts will result in disaster.”

In my Philadelphia purchase, I’m willing to take a little bit of a gamble at a price I can’t touch in San Diego. I will admit that I do like Philadelphia’s downtown, and always enjoy visiting there. So there are animal spirits at play here.

I have people lined up to rent… but of course they are far from Fortune 100 caliber.

[briansd1]

[quote=clearfund]”Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

[/quote]

clearfund, that’s pretty admirable and very much in line with the rigorous approach I that normally follow.

You will be able to give your investors consistent, predictable returns.

If you’ve read my posts, you would know that I’ve taken issue with optimistic assessments, especially in light of arguments such as “the financial bailouts will result in disaster.”

In my Philadelphia purchase, I’m willing to take a little bit of a gamble at a price I can’t touch in San Diego. I will admit that I do like Philadelphia’s downtown, and always enjoy visiting there. So there are animal spirits at play here.

I have people lined up to rent… but of course they are far from Fortune 100 caliber.

[briansd1]

[quote=clearfund]”Like they say, no risk, no reward”

Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.

[/quote]

clearfund, that’s pretty admirable and very much in line with the rigorous approach I that normally follow.

You will be able to give your investors consistent, predictable returns.

If you’ve read my posts, you would know that I’ve taken issue with optimistic assessments, especially in light of arguments such as “the financial bailouts will result in disaster.”

In my Philadelphia purchase, I’m willing to take a little bit of a gamble at a price I can’t touch in San Diego. I will admit that I do like Philadelphia’s downtown, and always enjoy visiting there. So there are animal spirits at play here.

I have people lined up to rent… but of course they are far from Fortune 100 caliber.

[sdrealtor]

comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.

[sdrealtor]

comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.

[sdrealtor]

comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.

[sdrealtor]

comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.

[sdrealtor]

comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.

[Coronita]

[quote=sdrealtor]comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.[/quote]

“Comparing that part of Philly with East Village is asinine (or assinine(sic)). They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass there. The area you are looking at ain‘t no South Street either.

Your appreciation potential is near zero and your management issues are huge. Wait ‘til you try to do anything with the property and have to deal with the pols and/or unions. Good luck with that and let me know how it works out for you.”

Sorry sdr, I just couldn’t resist.

[Coronita]

[quote=sdrealtor]comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.[/quote]

“Comparing that part of Philly with East Village is asinine (or assinine(sic)). They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass there. The area you are looking at ain‘t no South Street either.

Your appreciation potential is near zero and your management issues are huge. Wait ‘til you try to do anything with the property and have to deal with the pols and/or unions. Good luck with that and let me know how it works out for you.”

Sorry sdr, I just couldn’t resist.

[Coronita]

[quote=sdrealtor]comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.[/quote]

“Comparing that part of Philly with East Village is asinine (or assinine(sic)). They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass there. The area you are looking at ain‘t no South Street either.

Your appreciation potential is near zero and your management issues are huge. Wait ‘til you try to do anything with the property and have to deal with the pols and/or unions. Good luck with that and let me know how it works out for you.”

Sorry sdr, I just couldn’t resist.

[Coronita]

[quote=sdrealtor]comparing that part of philly with east village is assinine. They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass their as did many other deep pocketed individuals. The area you are looking at aint no south street either. Maybe in a couple centuries it will change.

your apppreciation potential is near zero and your management issues are huge. wait til you try to do anything with the property and have to deal with the pols and/or unions. good luck with that and let me know how it works out for you.[/quote]

“Comparing that part of Philly with East Village is asinine (or assinine(sic)). They’ve been trying to redevelop the south street area for decades. Will Smith lost his ass there. The area you are looking at ain‘t no South Street either.

Your appreciation potential is near zero and your management issues are huge. Wait ‘til you try to do anything with the property and have to deal with the pols and/or unions. Good luck with that and let me know how it works out for you.”

Sorry sdr, I just couldn’t resist.

[Author]

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