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 RUclips 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
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
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.
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.
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.
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?
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!
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
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
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.
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.
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Want to make passive income for life from cashflowing commercial property? Apply to be my next Protege here: www.commercialpropertyadvisors.com/protege-program
Congratulations on being the top rated commercial real estate source on RUclips
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 RUclips from actual people making videos on commercial properties that they have purchased with your assistance program. That sold me!
miss your videos peter....youre a good teacher.
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?
PLUS THIS DOESN'T TAKE INTO ACCOUNT THE PHANTOM CASHFLOW, TAX BREAKS, AND DEPRECIATION.
I really like the HELOC portion in this example. As long as the NOI provides enough room I think this really is a viable option.
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!
Peter,I am learning so much for you, I would like to buy my first commercial property
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
Thank you Peter. This video makes me feel you could be my great teacher and mentor
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
Your case studies are excellent. Thank you.
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.
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.
I dont think the small office or 20-unit apartment would be class A anywhere! Lol
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.
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 $300 cheaper payment per month. What are your thoughts?
I appreciate your videos so much!!! You really are #1
Thanks for another great video Mr. Harris. Are you able to make a video on NNN Sale leasebacks and can these kind of properties be 100% financed without a down payment? thanks!
I love your videos, Thank you for giving your time to teach us about Real Estate investing. I have learned so much from you.
Always great content. Thank you.
Hi Peter. Ben Gabin here. You mentioned other lines of credit that you enjoy using. Could you share some of your favorites besides HELOC? Thank you.
Business lines of credit. They are against a business, not real property.
Amazing!! Thank you!
You’re the best.
I’m 22 trying to get started. It’s tough because the banks won’t give me a chance due to my age. Guess I’ll just have to be patient & keep stacking.
Three words...Master. Lease. Agreements.
Your age has nothing to do with it. One of my mentors started at 17.
Try Sub 2 deals. You can buy properties without going through banks.
Can you finance Commercial real estate using a credit line from a bank instead of a 20 year mortgage? Thanks much.
why not take into account cap ex as well?
Which county property that worth 1 mil$ can yield 156k rental per year
That is 15.6% gross rental yield
There are many markets that can do that.
In your first example. If the student refinanced and took money out he is no longer making the $1100 that he was making. His monthly income is now 2k.
Great teacher!!
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.
Love this channel . I will be investing soon
Great info, thanks Peter.
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
I laughed out loud when he said O.P.M! You down when O.P.M.? YEAH YOU KNOW ME! LOL
I love your channel and the books are awesome
Great info, love this channel!
Great job Chris*
Great stuff Peter I am going to put this to the test and will contact you with my results talk to you soon.
AZ need to get in contact doing a project in yuma AZ thank you
"Money flows to good deals." :)
How do you get the income ?
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
$50,000 per unit is a standard value per unit in many parts of the United States.
Thumbs up for working part-time to do ministry
Awesome
What state are you in, Peter?
California
Thank you.
What u think about buying dollar genral property
Low caps. Not ideal for individual investors like us. That's oftentimes what REITs and other institutional investors buy.
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!
I am silly about the idea that is simply impossible to buy a 20 unit apartment building for 1 million .....
I thought the 35% included vacancy.
Great video but how much is the property management cost going to be
Property management is often included in the expenses. Not sure if PM is part of the 35% in this video though.
It is.
Can I use roth ira to fund my down payment?
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.
How I can get your free book?
Here: www.commercialpropertyadvisors.com/book
Awesome!
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.
student example........ :thumb up: now, i just need to find one of these deals....
If the value of the property increases over time you should make more than 3000/m