" Nest egg " sitting earning next to nothing, What would you do ?

Where are you seeing 10% caps? I'm looking at Class C a hair north of 8% in the Denver metro, but I'm getting a little trigger shy after what we've seen since the new year. I'd love to put the money to work, but I may keep it on the sideline and play the wait and see game for another 6 months.

 

8% would be fine for me as well. 10% is on the higher end. This is in Texas where the larger metro cities are seeing a growth spurt...Houston, Dallas, Austin and San Antonio.

8% would be fine for me as well. 10% is on the higher end. This is in Texas where the larger metro cities are seeing a growth spurt...Houston, Dallas, Austin and San Antonio.

 

Be careful in Houston. I've spoken to some big names that won't even look at property there until the oil market starts showing signs of recovery. However, that may mean there are opportunities to be found there.

Be careful in Houston. I've spoken to some big names that won't even look at property there until the oil market starts showing signs of recovery. However, that may mean there are opportunities to be found there.

 

Exactly! It's all relative. Like you've mentioned, more buying opportunities. If we wait for the oil recovery, by then I'm sure the prices will reflect accordingly.

To those who like RE and want more than a bond - pick up a Walgreens or like other NNN property by a top rated credit tenant with a long term lease.

 

Owner receives a tax deduction on the property while making 4 5 6 7% with nice bumps / increases and pay the loan to mirror the lease at the end you own a property clear and free.

 

When the lease expires you have a nice piece of property. The tenant may ask for another long term lease or you find another tenant and do it all over again accept the second time you have no loan but for the improvements needed for the new tenant and the third time your kids grandkids will be forever grateful.

 

The other option are ground leases - tend to last 20 30 40 50 years.

 

At the end of the lease the building is all yours.

 

 

Single tenant net lease. It's been a very attractive product lately. Lots of news regarding the Rite Aid and Walgreens merger puts some owners in a bind however. Other big name lessees out there are opting for shorter term with 5-year options due to the current climate of the marketplace. Here in L.A. the multifamily market has heated up to a huge swell. I'm selling multiple land development deals with developers clamoring over inventory that they can have a better ROI and focus on IRR and yield on cost figures to make their acquisition/development decisions.

Real good NNN deals are not that easy to come by, so unless you have been following several owners nearing the end of their operating life, you will have a difficult time sourcing out a good buy. For most of us here, we tend to look out of state for a good opportunity.

Denver and Boulder look good. Other areas like San Antonio and Austin still seem okay. Nevada will be a great place to look now that Telsa is moving over there. Great time to dive into that marketplace. I am seeing price per foot numbers somewhat stabilizing in certain neighborhoods here in town, which is a good sign for buyers. Inglewood of course has been on my radar for that past 2 years and now everyone is calling me for deals.

It's all about what your risk tolerance (discount rate) really is. Guidance is key and building good relationships with key people in marketplaces you'd like to invest in will get you very far.

 

Good luck!

Single tenant net lease. It's been a very attractive product lately. Lots of news regarding the Rite Aid and Walgreens merger puts some owners in a bind however. Other big name lessees out there are opting for shorter term with 5-year options due to the current climate of the marketplace. Here in L.A. the multifamily market has heated up to a huge swell. I'm selling multiple land development deals with developers clamoring over inventory that they can have a better ROI and focus on IRR and yield on cost figures to make their acquisition/development decisions.

Real good NNN deals are not that easy to come by, so unless you have been following several owners nearing the end of their operating life, you will have a difficult time sourcing out a good buy. For most of us here, we tend to look out of state for a good opportunity.

 

 

Good luck!

 

Are you thinking cap rate compression - ya lost me.

 

M&A does not allow for a default - if the merger between Walgreens and Rite Aid takes place and the store goes dark the tenant still pays rent.

 

NNN properties for sale are voluminous - what's taken place is people are realizing the value of NNN leases making them even more profitable in todays market causing more availability than ever.

 

It appears you feel real estate is a relationship business - perhaps it is for you but that's the beauty of a NNN deal. The only thing the owner needs a relationship is with their mailbox.

Are you thinking cap rate compression - ya lost me.

 

M&A does not allow for a default - if the merger between Walgreens and Rite Aid takes place and the store goes dark the tenant still pays rent.

 

NNN properties for sale are voluminous - what's taken place is people are realizing the value of NNN leases making them even more profitable in todays market causing more availability than ever.

 

It appears you feel real estate is a relationship business - perhaps it is for you but that's the beauty of a NNN deal. The only thing the owner needs a relationship is with their mailbox.

 

The relationship aspect of the business definitely is key for me here as I deal on the buy and sell side for clients all day long.

 

NNN is great, but I don't know how many solid opportunities you're coming across, because here in L.A. they are just not vastly available as you may think. We are in a constant state of placing 1031 buyers into deals, and every single last one of them always prefer something NNN once they've come out of a certain asset class they've tired of operating in.

 

We recently sold a 6 CAP 7-11 in Denver a few months ago, and that owner had it for over 20 years. Certain NNN deals make sense, but most around here don't.

The relationship aspect of the business definitely is key for me here as I deal on the buy and sell side for clients all day long.

 

NNN is great, but I don't know how many solid opportunities you're coming across, because here in L.A. they are just not vastly available as you may think. We are in a constant state of placing 1031 buyers into deals, and every single last one of them always prefer something NNN once they've come out of a certain asset class they've tired of operating in.

 

We recently sold a 6 CAP 7-11 in Denver a few months ago, and that owner had it for over 20 years. Certain NNN deals make sense, but most around here don't.

 

Understand

 

I get e-mails daily from the large CRE brokerage offering NNN deals but they are located in the midwest.

Understand

 

I get e-mails daily from the large CRE brokerage offering NNN deals but they are located in the midwest.

 

Yeah things are a bit tough in bigger markets. What types of assets are you typically investing in, if you don't mind me asking?

 

 

Yeah things are a bit tough in bigger markets. What types of assets are you typically investing in, if you don't mind me asking?

 

Anything that makes sense Brokerage Manage Construction - all self serving.

 

Past years took advantage of L&R offerings on Auction.com

 

Years ago development - lucky timing tired of the politics.

 

Give you a lot of credit developing is no easy road.

In the last 5 days, I've heard from 4 or 5 big names that the RE market is about to take a breather.

My money is staying on the sidelines to see where the next 6-12 months take us.

In the last 5 days, I've heard from 4 or 5 big names that the RE market is about to take a breather.

My money is staying on the sidelines to see where the next 6-12 months take us.

 

Residential, Commercial, or both?

 

If you saw some of the developments going on in SoCal, you would be floored. One area I know of they are building essentially a new city, 40,000 home development.

Residential, Commercial, or both?

 

If you saw some of the developments going on in SoCal, you would be floored. One area I know of they are building essentially a new city, 40,000 home development.

 

Multifamily and commercial. All players in the institutional ballpark. Sounds like they're all looking to divest lower quality assets/markets, delever and focus on a core portfolio.

 

Wow, 40,000 homes is a monster! I just moved from Miami, but I saw plenty of crazy investment and development going on in the housing and retail sectors down there as well.

In the last 5 days, I've heard from 4 or 5 big names that the RE market is about to take a breather.

My money is staying on the sidelines to see where the next 6-12 months take us.

 

When you say real estate and or firms - that's a very general statement.

 

RE has many different segments - there is no way let alone four or five firms sit on the sidelines they simply focus on diversity.

 

Funds will always outperform funds sitting - short term investors are exactly that.

 

 

 

 

 

 

 

When you say real estate and or firms - that's a very general statement.

 

RE has many different segments - there is no way let alone four or five firms sit on the sidelines they simply focus on diversity.

 

Funds will always outperform funds sitting - short term investors are exactly that.

 

Could also be a good thing if it's going to slow down for awhile, just like the stock market.

 

 

When you say real estate and or firms - that's a very general statement.

 

RE has many different segments - there is no way let alone four or five firms sit on the sidelines they simply focus on diversity.

 

Funds will always outperform funds sitting - short term investors are exactly that.

 

This!

 

I don't understand what type of realestate investments some members are discussing here, follow the fundamentals and go in long term, 7 to 10 years brackets, it's really not that complicated.

 

BTW I wouldn't touch anything which I can't control 100% all this fractional ownership is asking for trouble, if you can't afford the entire asset you can't afford to be in it but that's just me, from that POV I am old school.

Could also be a good thing if it's going to slow down for awhile, just like the stock market.

 

The stock market - it's a phone call buy / sell keep in mind the broker loves that type of knee jerk reaction fees fees fees. Don't ever think the markets aren't manipulated they live for those "graphs".

 

RE - the cost of closing financing due diligence if you don't value your time - that will be reflected by ROI and anyone who thinks they can time a market is gambling better odds in Vegas and you can only lose what's in your pocket.

 

RE firms or funds have a burn rate - it's not like a guy who buys a 4 plex that works on the investment nights and weekends so they simply diverse look to other markets. When one slows another speeds up it's a very common cycle.

 

Slow downs - agree but there is a lot to be said when others are selling it's time to start buying.

 

Agree Fortis relying on others and short term is too much brain damage.