OfflineI am sure everyone has watched Deans video of the month on his vacant land deal. Well I now come to pose a question.
Besides me I dont really see anyone else that post here talk about commercial properties. I have a passion for commercial more so than residential but good sense tells me to build me residential or SFR portfolio so I can fund my commercial ventures.
Is there anyone on here that does commercial or are interested in it?
Also vacant land. I see tons of vacant land out in the desert where I am..lol..but seriously some of it is going so cheap its crazy and the views from it on the mountains are spectacular. Another question.
Is there anyone on here working vacant land or interested in it? If so lets talk because I may not be near you but I have some great ideas on how to obtain it, market it and move it.
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I am interested in commercial, but there is one thing that stops me- fear. I know I will make the SFR's work, but the commerical is new to me for the most part so I'm leary. Commercial lots in this area aren't going very fast or at all in places so I don't want to lock my money up in that just yet, even though I can get what ever financing I want on them. I have ideas for the commercial lots in town that are vacant, but I'm scared that my ideas may not work. I'd like to eventually do some but I have to do more research. I've got my eyes on vacant ground but I haven't worked on locking them up yet.
One of the reasons I got into realestate is to buy land and develope it. I have been doing construction my whole adult life. I have many contacts and can build cheap(not meaning made cheap) and sell for huge profits. Just dont know where to start. I would love to email you so we may exchange ideas. Thank-You Anita for the interest in helping others. You are a special Lady.
Anita,
Thanks for posting this one. Believe it or not, I was just thinking this morning before getting on here that we needed to have a forum for this topic. I'd love to get into commercial in the near future. I've had the same thought: that I'll start with residential and move on to commercial. Has anyone ever played the board game by the well known guy with "two" dads. Is that ok to talk about? Anyway, I don't mean to promote that, but one lesson I learned from playing that game is that the "big deals" get you to your goals faster than the "small deals".
I haven't looked at vacant land, but that is something I'd like to learn as I go and eventually get into. I think I'd need to develop my network a little more also to make it the most beneficial for me. I'm not in your situation with that pittsteel. Look forward to more postings here.
Let's talk financing for a minute. Does anyone know what you have to have in place (business, credit, reserves, etc.) to be able to go after a large commercial property (40-50 unit apt complex)?
Not me really, especially in this market. In bad times, peeps can easily just fold up their biz and take it home. But people always need a place to live.
Commercial financing is harder to get (although seller financing is more common too).
Be careful with raw land. Does it have utilities on it? If not, then it can be basically useless especially if it's super expensive to get utilities run to it. Also, raw land brings in no income but property taxes ARE due on it.
Hi Pitt
you can email me at anitarny@****
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Jeff I ran into lots of areas of financing on the apartments I am trying to get email me so we can talk.
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Commercial financing is harder to get (although seller financing is more common too).
Be careful with raw land. Does it have utilities on it? If not, then it can be basically useless especially if it's super expensive to get utilities run to it. Also, raw land brings in no income but property taxes ARE due on it.
To be quit honest I am speaking in terms of multi family units and shopping centers like strip malls and vacant grocery stores that you can lease and divide into 20-30 or more individual units inside and creat your own mini mall. I have some great ideas just need others to listen and work with
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I agree with you that raw land doesn't make income, unless you "Think A Little Different" and come up with ways to make it profitable. Large enough-farm it; community garden, dog park, the possibilities are endless so get out there and do something with those vacant lots. Good luck everyone and keep up the great work!
Commercial financing is harder to get (although seller financing is more common too).
Be careful with raw land. Does it have utilities on it? If not, then it can be basically useless especially if it's super expensive to get utilities run to it. Also, raw land brings in no income but property taxes ARE due on it.
The Tar Sands investments in this area has boomed the economy. Last year alone(2007) the mortgages in the area exceeded 1billion dollars. The Athabasca Tar Sand mine is booming and so are the properties. I found this info through a free email I get called Daily Wealth. Its free and a great source of information. Hope you guys gind this as exilerating as I do. Good Luck Future RealEstate Millionaires. Sorry, I forgot to mention the mine is in Alberta.
Commercial financing is harder to get (although seller financing is more common too).
Commercial financing can be far easier than conventional financing because the restrictions are far different. Finding the right lender is important.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Pretty sure FHA is NOT doing commercial financing.
A 2br trailor on a small lot is going for 450K, if you could find the investors needed to buy raw land in or around this area, it is a money making machine. I myelf am not ready for this kind of deal, just got my book this morning(YEAH ME) but for someone with a broader scope of knowledge may be able to get something moving. Just some info I thought might help.
Baltimore Financial
Novato, Ca 94949
415-883-1593
Development Capital
702-255-4917
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Tenants in Common is a very useful way to purchase multi family and other properties.
Benefits:
- Little cost to set up
- Active voice in management
- Easy to transfure ownership
- You can buy more with your money
- No mortgage restrictions like LP, LLC, or Corp
- Tax advanages are shared tax benefits
By using a TIC you can group a lot of people together to create a down payment for large properties that can improve your buying power very heavily.
Using TIC's also helps you create a non-securities transaction that I explained a little about earlier in other posts.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I have bad credit and havent had a chance to build my LLC. My hands ae tied on this one'
Benefits:
- Little cost to set up
- Active voice in management
- Easy to transure ownership
- You can buy more with your money
- No mortgage restrictions like LP, LLC, or Corp
- Tax advanages are shared tax benefits
By using a TIC you can group a lot of people together to create a down payment for large properties that can improve you buying power very heavily.
Using TIC's also helps you create a non-securities transaction that I explained a little about earlier in other posts.
How are you going to handle the management disputes with this setup? What if 1 person wants to rent to Joe Six Pack and the other 5 do not. Or worse, what if it is 3 and 3?
I would think at the very least you would need some sort of attorney drafted "bylaws"... like a partnership agreement stating how this arrangement was going to work.
And why do you say that there are no mortgage restrictions? Are you pooling enough peoples' money to pay all cash? If someone's name is on the mortgage, you will eventually run into restrictions.
It seems like it would be much less hassle to go LP or just make them private lenders.
commercial Properties are far more profitable if done right if that is where your passion lies go for it!
If you put together a deal that is worth it don't dismiss angel investors they are on the internet if you get one of these people in your corner the sky is the limit.
nstreet,
Can you explain more about a TIC? I've heard the term before but don't really know anything about them. Or if you have already explained more in other posts can you direct me to what ones and I'll be happy to read what you've already posted.
Thanks,
Jeff
Benefits:
- Little cost to set up
- Active voice in management
- Easy to transure ownership
- You can buy more with your money
- No mortgage restrictions like LP, LLC, or Corp
- Tax advanages are shared tax benefits
By using a TIC you can group a lot of people together to create a down payment for large properties that can improve you buying power very heavily.
Using TIC's also helps you create a non-securities transaction that I explained a little about earlier in other posts.
Tenants in Common is generically a way of holding title. It can be an informal partnership among relatives or neighbors or co-workers, and each name is on the deed with the percent interest. All the legal hazards of partnerships exist, such as being sued and affecting the other partners.
The type of TIC currently being promoted by brokers is marketed as a security. You need to be an "accredited investor," meaning well off. You listen to a presentation and enjoy a free lunch or dinner. The broker handles all the arrangements, like locating the property (medical center, shopping mall, big apartment complex, etc.), and the investor can have a small percentage of ownership. The broker arranges the financing and management, and the investors receive a net amount after fees are paid. They may work out well, and many investors are satisfied with the results, but they are subject to being priced, managed, and churned to the broker's benefit. Also, the individual investor has little say in the decisions. I declined this type of investment, as I prefer to be able to make the decisions, including finding a good deal to start with, but that's just me.
Anita asked about this, and I have dealt in many vacant parcels, most of them before all the current concerns about pollution of the soil. Vacant land, as was pointed out, produces no income (unless you rent it out for a parking lot or something). And the taxes are payable every year. But there are definite advantages, some of them being no tenants, no repairs, and no kitchen fires.
If allowed by the area's general plan/zoning, and the topography, you may be able to divide the parcel, which usually makes it more valuable per acre or square foot. You may be able to fill in low areas and make it more usable. You may be able to develop better access and make it more valuable. But the most important aspect is the utilities. If electricity, water, sewer, and phone are available to the property, that is ideal. You may have to substitute an on-site septic disposal system for a sewer, and they are expensive, and sometimes they aren't allowed due to the soil type if they fail a percolation test. You may have to drill a well if district water isn't available, and you don't want to end up with a burial site for a long snake (dry hole). Nearby parcels with decent wells are a good sign, and you can find out how deep they had to drill.
The sales of vacant parcels are usually fewer than improved parcels, unless you're out in the desert or mountains. Market value is harder to pin down, so good deals may be had if the seller is motivated. But checking out all the limitations can be hard work, and you can't necessarily take the seller's word for the facts - check the answers with the city or county offices.
Seller financing is more common with vacant parcels, so you can be creative in the terms as well as the price. Vacant land may be assessed at a lower ratio for taxes than improved parcels are. There may even be property tax breaks if the parcel is in an agriculture, forest land, or open space designation. In some areas, bank loans may be available. You need to have some familiarity with the area in question, so you know the important features, but that can be obtained by phone or emails.
As you may have gathered, I like investing in vacant land.
For all the info. Most of it I am already on top of but I still learned something new..lol. I do live in the desrt and most of the land I am looking at is unimproved but there are huge areas of it right in the middle of the city with utilities running to the street right in front of it needing to only be hooked up or ran directly to said parcel. I am studying my investment into land parcels very diligently but there are some great deals here for both developed and undeveloped lots/acres. I will let you know how I come out. What do you do with commercial property
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I have been approached by an investor who is looking to purchase a strip mall that is currently active, tenant occupied, with about 10 retail stores or more. He is looking for a great deal. Rehabbing is not a problem, CASH isn't an issue, he just wants to find a great deal.
Does anyone have any suggestions on how i can located a strip mall owner and work directly with them, instead of commercial realtors or property management groups?
Does anyone know what factors i would need to take into account when determining if a property is a good deal? Do i try to pull comps, look at P&L, look at tenant rent roll and occupancy, assess any capital expenditures, look at expenses for operating business .... or should i just use the good'ol 40% below FMV theory? HA-HA
Suggestions and comments please!!!!!
P.S. I would like to assign the contract to the end buyer - in case that factors into your calculations.
Thanks to all,
Mati
Live life today, because you never know what tomorrow can bring!
Here is an interesting update on the commercial arena. While commercial typically balances the residential market in times of trouble - they too are seeing challenges with the residential market.
- - - - -
Commercial mortgage-backed securities (CMBS) are in trouble, and the Federal Reserve and the Treasury Department may not be able to bail them out.
In a study for The Wall Street Journal, credit-rater Realpoint LLC found that 281 CMBS loans valued at $6.3 billion weren't able to refinance when they matured in the past three months, even though 173 such loans worth $5.1 billion were throwing off more than enough cash to service their debt.
What landlords need in order to be able to refinance their debt is higher occupancy rates and the ability to raise rents. That requires more hiring and consumers who feel able to spend. So far, the government hasn’t been able to supply that.
Source: The Wall Street Journal, Lingling Wei and Peter Grant (08/31/2009)
just wanted to share this with you! I found a guy: Jason Gilbert...online. commercial investing is what he's about! he talks about 2 ways to work his investing. MLO Master Lease Option...and JVF Joint Venture Facilitation!
He talks about finding raw land and getting the owner and developer together.
He also talks about the use of the raw Land as ,
Senior Living
Mobile Home Parks
Storage Units
and more.you might find it of intrest.
I would join his program But like a lot of us right now ( no money).
He will even work Deals with his students!
So check it out and let me know what you think!
hope this helps you.
good luck
JayBob
I will take note of that. how are you doing on the commercial end yourself
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Hi Anita, How long have you been investing? I just started to read everything I can get my hands on about ( commerical real estate )! Have not done any deals as of yet! Had my eye on a 24 unit Townhouse complex. But before I could get all the info on this deal- it was sold!! But that will not stop me. I can see how commerical Real estate can be the deal of a life time--it only takes One great Deal!
I will keep looking for that deal!.
Have you seen anything in your area?
JayBob
I too am looking into buying a parcel of land in my hometown. My hopes is to buy low(of course) and then to build an assisted living facility. I would need several investors to make this happen, so if anyone is interested or know of someone that this would interest, just PM me. I live in a small town and there is only one ALF around here and four actual nursing homes.
Thanks,
Brian
I really want to buy tons of Apartment Complexes and make a living do it. I too am taking steps first in residential through lease options. I am wondering can you use the same no money down strategies for commercial properties as you use for residential like sandwich lease option and other no money down strategies.
I am interesting in ways of financing commercial & multi-family units. Any direct contacts would be greatly appreciated. Thanks!