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@dnasixenterprisellc84
Жыл бұрын
Are you able to take down an asset and refinance immediately
@blazeexpressdelivery1961
3 жыл бұрын
Mr. Harris, you are indeed One of a Kind!
@TRUCKYELLOW
6 жыл бұрын
Thank you for posting again brother, I needed this knowledge... Thank You...
@newenglandsweetwaterfarman7039
6 жыл бұрын
Your number one, so make more content please.
@dk-uj4yd
5 жыл бұрын
In the New York New Jersey area you simply can't increase rents by a $150. Every place has rent control which prohibits you from doing that.
@humblebee7979
2 жыл бұрын
Very informative!
@danarobinson6156
5 жыл бұрын
Great content Peter. I know I've overlooked many Commercial RE deals due to this. Probably walked away from $3 million or more. 😢
@cottondai
5 жыл бұрын
Wow what a great video and perspective.
@DrDianeThompson
4 жыл бұрын
Great information! Thank you.
@alisuleiman7334
3 жыл бұрын
For “bad deal #2” how is the mortgage payment lower when creative financing if your down payment is also lower?
@ronaldbrantley4984
3 жыл бұрын
Wow, I need this coach
@zehuazhou3390
3 жыл бұрын
i've been watching your free course on your website and starting from this section, the video no longer displays. Can you please have your programmer look into that?
@dwighty825
4 жыл бұрын
Peter, one question. With the creative financing master lease less money was used for down payment, so why was the annual mortgage less? I'm lost there.
@ashutoshkrishna
4 жыл бұрын
I also have the same question
@我从通化来
3 жыл бұрын
He really wants to help people to succeed.
@MiguelSanchez-yp5vs
6 жыл бұрын
Peter, what a video! You are an amazing person and mentor! Can you help me understand 2 things from your video? On case number 1, if you raise the rents, some people would leave. How would you calculate the percentage of abandonment? On case number 2, after paying the interest over 5 years, how would you pay the principal? Does it have to be a balloon payment or could it payed over a 15-30 year time lapse? Thank you so much for your help, Peter!
@CommercialPropertyAdvisors
6 жыл бұрын
To answer your first question, tenants will consider leaving if they feel that the rent they are paying you is more than the competition. Therefore, before raising rents, it’s recommended to perform a rent market study to ensure that you rents are within reason. And in answering your second question - the principal pay down would occur from paying the seller’s mortgage over 5 years, whatever that amount is. This particular creative deal (master lease) is structured to terminate in 5 years. That means that at the end of year 5, you must either get new financing or sell the property. If done well, a nice profit should occur.
@hsheynin
6 жыл бұрын
How would paying the seller's interest only mortgage pay down principle? In today's interest rate climate, there is a good chance that refinancing may not be a great option due to the greater cost of debt service. I imagine that as rates rise cap rates will compress further making it harder to sell at the price you need. How would you mitigate that risk?
@gustavoares170
4 жыл бұрын
So the bbank finance gives CoCR 5%, and the ML gives CoCR of 15%, However, the first option is paying the principal and the second is not. You didn't mention this detail on the exercise, which I guess both deals may be equal if you do a refinance the property (for an exit strategy). Could you elaborate on that part?
@Hcjfnzjc
Жыл бұрын
Agreed. Value at purchase (stated): $850k Purchase price: $900k Leftover from dp: $810k 75% of $810k for refinance: $1,080,000 You would have to bet that the market value increases 27% over 5 years, without being able to increase rents. Not sure what the exit would be.
@kampaninipot9458
3 жыл бұрын
What happens when the 5 year is up? Will the seller still pay for the capital gains on the remaining balance when execute the buy option? A big fan here. Thanks!
@CommercialPropertyAdvisors
3 жыл бұрын
Yes.
@kampaninipot9458
3 жыл бұрын
@@CommercialPropertyAdvisors Thanks Peter!
@leob5195
5 жыл бұрын
Peter, in 2nd example, how do you get $38,250 Mortgage???
@LovettEstateAgents
6 жыл бұрын
Great video! Thanks for sharing, when will your next one be out?
@ryanwhitley4627
4 жыл бұрын
If it is Interest Only then wouldn't the principle amount is not be reduced over the 5 year span? That means in 5 years you will still owe the amount of $810k. So I'm confused on how you can refinance in future and be able to pay off the principle amount of $810k. Also if Interest Only loan, then 5% of $810k would equate to a $40,500/annually. Peter could you please help clarify. I see tons of questions on this particular part. Thanks
@CommercialPropertyAdvisors
4 жыл бұрын
The value of the property increases and that's how you refinance in the future.
@HVAC_Jae
3 жыл бұрын
@@CommercialPropertyAdvisors if you can't raise the rent, how does the property value go up?
@mazi_mazi_mazi
6 жыл бұрын
About Bad deal #1,from ur previous lessons u said high cap rate equals bad neighborhood, 7% is a high cap rate,is it not best to avoid deals in bad neighbourhoods?
@CommercialPropertyAdvisors
6 жыл бұрын
Sometimes. It depends on whether or not it is an off market deal and the seller is highly motivated.
@londo23mike
6 жыл бұрын
7% is a high cap rate in Manhattan New York and other expensive markets... 7% is actually good in a average market
@dk-uj4yd
5 жыл бұрын
You can't make money on cash flow in New York City
@moizkharodawala5932
6 жыл бұрын
Hey How and from where can one find commercial real estate deals especialy good apartment buildings for sale ?? The answer would be very helpful
@moizkharodawala5932
6 жыл бұрын
Financial Freedom Thanks for your helpful response but I actually wanted to know how to find offline appartment building deals...those for sale by owners
@jakes5530
6 жыл бұрын
For bad deal 2, with creative financing, wouldnt a lesser down payment equate to a higher mortgage? Why is the mortgage on 810k $38,250 a year - when you put 10% down, but 41,064 on 688k - when you put 25% down?
@hsheynin
6 жыл бұрын
Because you are paying interest only on 90%, instead of paying principal and interest on 75%.
@mikeycashflow1697
6 жыл бұрын
why dont this work with residential?
@jakes5530
6 жыл бұрын
mikey jay to my understanding, those properties are not considered “commercial” and thus follow the market value of properties in the area. If you increase a single family home’s rent by 4%, but the market where the property is located actually drops 2%, then the value of the home follows the market not the NOI bc no family is going to pay that extra cost. Idk if that’s completely right, I’m sure Peter will respond as well.
@mikeycashflow1697
6 жыл бұрын
Jake Stoler thx a lot
@kennethrapose277
6 жыл бұрын
I am a little confused with bad deal number two. If you're paying the seller $38,250 a year for five years that's $191,250 plus the $90,000 down payment that's $281,250 total paid to the seller. They ask for $900,000. What am I missing here? Thank you
@bart.bielski3487
5 жыл бұрын
I’m new to investing too so my answer may be incorrect. But after those five years you would go to the bank and get a conventional loan to make up the difference 900,000 - (281250+90000) to the seller.
@ryanwhitley4627
4 жыл бұрын
@@bart.bielski3487 If it is Interest Only then the principle amount is not being reduced over the 5 year span. That means in 5 years you will still owe the amount of $810k. So I'm confused on how you can refinance in future and be able to pay off the principle amount of $810k. Also if Interest Only loan, then 5% of $810k would equate to a $40,500.
@lamontwalley3599
6 жыл бұрын
Peter, what is your email address? Great content as always.
@theassofsasquatchwaynewils7093
6 жыл бұрын
Great videos, makes sense to me now why Trump made you HUD Secretary
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