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SK in CV
Participant[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.
Participant[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.
Participant[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.
Participant[quote=surveyor]anecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
[/quote]All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
Participant[quote=surveyor]anecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
[/quote]All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
Participant[quote=surveyor]anecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
[/quote]All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
Participant[quote=surveyor]anecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
[/quote]All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
Participant[quote=surveyor]anecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
[/quote]All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
ParticipantNice comment surveyor. Mostly stuff that is consistent with my experience, though much of it only applies to a piece of the commercial real estate market.
But I’m totally confused by this.
[quote=surveyor]Never never never go into an owner financed loan. If you can’t get funding through a commercial lender, don’t buy the property in the first place.
[/quote]
Why not? if the terms are right, once a loan is made, contract signed and recorded, 100% of the leverage is on the side of the borrower. What do you see as the downside?
ParticipantNice comment surveyor. Mostly stuff that is consistent with my experience, though much of it only applies to a piece of the commercial real estate market.
But I’m totally confused by this.
[quote=surveyor]Never never never go into an owner financed loan. If you can’t get funding through a commercial lender, don’t buy the property in the first place.
[/quote]
Why not? if the terms are right, once a loan is made, contract signed and recorded, 100% of the leverage is on the side of the borrower. What do you see as the downside?
ParticipantNice comment surveyor. Mostly stuff that is consistent with my experience, though much of it only applies to a piece of the commercial real estate market.
But I’m totally confused by this.
[quote=surveyor]Never never never go into an owner financed loan. If you can’t get funding through a commercial lender, don’t buy the property in the first place.
[/quote]
Why not? if the terms are right, once a loan is made, contract signed and recorded, 100% of the leverage is on the side of the borrower. What do you see as the downside?
ParticipantNice comment surveyor. Mostly stuff that is consistent with my experience, though much of it only applies to a piece of the commercial real estate market.
But I’m totally confused by this.
[quote=surveyor]Never never never go into an owner financed loan. If you can’t get funding through a commercial lender, don’t buy the property in the first place.
[/quote]
Why not? if the terms are right, once a loan is made, contract signed and recorded, 100% of the leverage is on the side of the borrower. What do you see as the downside?
ParticipantNice comment surveyor. Mostly stuff that is consistent with my experience, though much of it only applies to a piece of the commercial real estate market.
But I’m totally confused by this.
[quote=surveyor]Never never never go into an owner financed loan. If you can’t get funding through a commercial lender, don’t buy the property in the first place.
[/quote]
Why not? if the terms are right, once a loan is made, contract signed and recorded, 100% of the leverage is on the side of the borrower. What do you see as the downside?
ParticipantKeep your eye on the ball.
[quote=investor][quote=SK in CV][quote=investor]
I do not trust any entity that has the money supply of the US and the reserve currency of the world in its hands and is not completly outright on where the money is. It’s clear that congress has no idea where the trillions are. Congress is stopped from finding out where by the fed and some people want to trust the fed that its doing the right thing? Where does working in secrecy lead to?[/quote]You’re looking in the wrong hole. No matter how long you look there, you won’t find it. It’s not where the money is, its not where the money went. It’s the policy. It’s the oversight (or more importantly, lack thereof). An audit, no matter how comprehensive will NEVER tell you why they lowered or raised interest rates. Why they loosened or tightened money supply. Why they allowed or prohibited member banks from conducting business the way they do. The great power of the fed is not in their actual dollars. It’s the influence they have over the economy.
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