/biz/ - Business & Finance

STNL industrial or MOB

>>17162070
Would you leverage and how much?

>>17162166
of course, rates are near ATL - you should leverage as much as possible which is 80% for the right deal. If you want something in the US I can get you an institutional quality deal that I would otherwise sell to a REIT. 10-15 year lease term 1-3% annual rent bumps, NNN or absolute net lease for around a 6% cap rate.

>>17162212
That sounds like a good time

>>17162044
...Donald?

>>17162212
I'm not cash rich. Too hazardous to go into high vacancy property?

>>17162336
There is no vacancy, it's a single tenant with a good credit rating on the hook for at least 10 years. It's basically the safest real estate investment you can make and there are zero management responsibilities - you literally buy it and then collect a check every month. Most of our buyers never even see the property in person - you're buying the lease more than anything else. If you want to fuck around with multi-tenants and short lease terms you can probably get the cap rate up to around 8-10% but it's not worth the headache imo

>>17162388
What kinda cash flow on 1m down / 4m mortgaged?

Do you think it will be tough to exit or re-up a tenant?

https://www.loopnet.com/Listing/1108-Investment-Blvd-El-Dorado-Hills-CA/16619258/

>>17162428
>https://www.loopnet.com/Listing/1108-Investment-Blvd-El-Dorado-Hills-CA/16619258/

The cap rate is the cash flow if you paid all cash, so at a 6 cap you'd make $240K a year before debt service.
Calculate the cash on cash return by subtracting the annual debt service from the NOI and dividing that by $1M. That deal looks too good to be true for the Cali market, I bet it's a 12 year ORIGINAL lease term but there are probably less than five years remaining on it. Also, the aerial shows that that area is not built out yet so there could be competition from new development. Could be a red flag, could be no big deal I don't know the el dorado hills market that great

>>17162428
to answer your question about tough to exit - just do it when you get a fresh renewal option or negotiate a new longer term lease in exchange for a slight rent decrease to get the lowest cap rate for it when you sell. You would want to buy tenants/buildings that have significant buildout and investment by the tenant to deter them from going to another building. Most tenants (industrial & MOB) don't leave unless the landlord gives them a reason to or they outgrow the building

>>17162557
Thanks for the calcs.

https://www.bizjournals.com/sacramento/news/2019/07/17/investment-to-fuel-expansion-of-el-dorado-hills.html

Looks like a 12 year signed in mid 2019.

>>17162599
Good plan. I'm glad my instincts are in the right place here. But I'll look at other places too. Gotta spend it all or I pay boot on a 1032

>>17162657
1031 I mean. My cost basis on the million is $145000, so I'm looking at a capital gains tax bill of six figures

>>17162635
if it's a 12 year lease anywhere in cali at a 6 cap the credit must be non-existant or absolute shit. I'm not saying it's a bad deal but just be aware you are taking on a lot more risk

>>17162672
yeah 1031 is the way to go. also FYI you can get 1-2% more return per year buying an identical tenant in a state that's not California

>>17162736
Absolutely agree but I know this market very well and I'm seeing a lot of good things

>>17162704
Good call.

>>17162844
>>17162860
good luck anon

>>17162947
Thanks bro!

Holy fuck,
Finally a true biz thread.
Based anons doing God's work.

The diversity of digital assets will
attract users from the crypto world and the traditional world to the #FinNexus ecosystem

>>17162044

This thread