Want to make passive income for life from cashflowing commercial property? Apply to be my next Protege here: www.commercialpropertyadvisors.com/protege-program
Just went to your site. I must say that it is very competitive with others I've seen. I like you as a teacher, so I'm interested in your educational services. I like how you even have videos on RU-vid from actual people making videos on commercial properties that they have purchased with your assistance program. That sold me!
I have also missed you and your videos!!!! You are such an inspiration to anyone wanting to learn about commercial real estate!! Thank you so very much for sharing...time...and valuable information! YOU'RE THE BEST PETER!!!!!
Hi Peter, Great Vid. I'm still a newbie so I have 2 questions...(1) Does the industry standard 35% expense include reserves and property management costs? (2) How would the creative financing look if a lender and/ or investors require points in addition to their interest and principle payment?
I didn't see the link to the video "analyzing commerial real estate quickly and easily". Please drop and pin it in the chat or put it in th description. Thank you. You give us such good info! I really appreciate it!
My friend, I believe you made a mistake on the 20 minute mark. You are talking about cash flow ($48,000/yr) but you used the N.O.I. figure of $96,000. If you use the Cash Flow amount of $48,000 and minus (the interest on $900,000), or $45,000, you will have a $3,000 per year profit. If I'm the one who is mistaken, or if I misheard you, please disregard this. Thanks for all your teachings on CRE. Grey
I love this Channel! Great stuff Peter. For the syndication though, if I was an investor in a deal like that, I'd want more than 6-8% on my money unless it was a class A building in a prime market in a prime location. I'd want 10% minimum.
Congratulations Chris. Great testimony of what Hardwork does for somebody along with following the plan. I hope to find success like you have found soon for myself.
Hi Peter, I’m new to your channel, but I’m already a fan. I have a question, is it common to finance with this type of situation with lenders with just 1 personal credit ? Thanks
Hello Peter. My wife and I may have stumbled on something. In this example you shared, the Heloc payment you calculated was done with a standard mortgage calculator. We entered the 250k example into a “Heloc” calculator instead. It was $300 cheaper payment per month. What are your thoughts?
Loved this! I have equity I'm trying to get out but was turned down for a HELOC due to not enough income; I'm going to call my credit union. What about the property management company's expense? I would want one so it could be 100% passive for me.
Thanks for another great video Mr. Harris. Are you able to make a video on NNN Sale leasebacks and can these kind of properties be 100% financed without a down payment? thanks!
Quick Question?? Where can you purchase a 20 unit building for $1 Million dollars? Here in NY where I live, we can't buy a 1 family house in a good school disctrict for $1 Million. Please explain. Thank you. Karl
Thank you for this video sir, it seems to be very well done. I have a question about something though, maybe it is covered elsewhere or I have missed it somehow. Around the 13-14 minute mark when you are talking about investors providing the 250k down @ 6%, you state the payment of 15,000 / 1,250. That appears to be simple interest only. When are the investors ever paid off? I understand they would want long-term income, hence the investment part, but is there a strategy in here somewhere to get their dead weight off my property, other than refinancing or selling in 5 - 7 years? Just curious, I expect there are some tax issues in here for us, and them as well, it was just something that came up while I was watching. Thanks again.
Hi Peter, for creative financing/master lease, if your mortgage is 900k and the interest is the same 5%, and length is same 30 years, how are the monthly payments less than that of a 750k mortgage? Wouldnt the higher 900k mortgage equal higher monthly payments? Best, Jake
In the creative financing section, you are calling it a master lease agreement but it's actually owner financing, in the way you structured it. A MLA is based on giving the seller their NOI and you finding ways to increase NOI, for your cash-flow.
What if in my case, i have the 250k, great. but then who is going to finance me for the remaining 750k 😅 i would hit the maximum dti by utilizing my heloc to fund the down payment. Who could finance me in this case
The PROPERTY is the reason for the loan; not your DTI. You're focused on how residential mortgages are underwritten; not some commercial real estate loans. It's a whole lot easier to get a $750,000 purchase loan on a well performing multi-family property than it is a $100,000 mortgage on a single family home rental. MUCH easier!
If you have a Solo 401K, you can borrow up to $50,000 from it (so long as you have at least $100,000 in it) and you can use that for a down payment. Or, you could attempt to buy the entire property in your Roth IRA, in which case, you could use its funds for a down payment.
