We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
January 17, 2022, 04:30:49 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
January 17, 2022, 04:30:49 pm
Home Help Search Calendar Login Register

Author Topic: My rentals are making me crazy  (Read 28900 times)

Offline John_in_NC

  • Member
  • ****
  • Posts: 772
Re: My rentals are making me crazy
« Reply #45 on: March 03, 2010, 10:04:44 am »
Mike,

Point taken, and a great one at that. The best way I know to gauge demand, is driving around the area trying to locate similar properties nearby that were vacant and/or for lease. I found maybe 9 or 10 of what I would consider similar, and no vacancies, you have to drive pretty far up that road, which is really a different area geographically speaking, then yes I found TONS of office space for lease, and some retail and a two restaurants, but this is an area of strip clubs and heavy industrial. It's well known that this area of raleigh is dead. I'm all ears on other ways to gauge demand.

That 400K dollar loan (actually 330) has been wiped out through foreclosure, how I was alerted. The now tenants bought it and didn't pay the owner financing. Now they are renters again, but there is still one loan on that is an old one. It's sorta complicated buy my attorney is good and has it figured out.

Offline fdjake

  • Member
  • *****
  • Posts: 1900
Re: My rentals are making me crazy
« Reply #46 on: March 03, 2010, 12:14:22 pm »
JOHN....

I'D BUY THIS THING IN A MINUTE!!!!

Think about it....You currently own NUMEROUS residential rentals that are a PAIN IN YOUR @SS.....Sell a few of them and PAY CASH for this property!!!  NO MORTGAGE!!!  A property like this selling for LAND VALUE????.....THAT's a freakin STEAL!!!   How much would it cost you to BUILD it????  Land + STRUCTURE....NO WAY are you building a 5 bay garage with lifts, office, and ONE ACRE of LAND on a BUSY Commercial Avenue for $200K.....NOT HAPPENING!   So you grab a $100K loan and DUMP a few more of your pain in the @ss rentals....Then PAY OFF the commercial property, which means NO MORE LOAN!!!  SHOW ME HOW YOU GET HURT HERE????

I'm not even gonna get into the OTHER uses for this ONE ACRE PARCEL!!!
Does the company CVS or WALGREENS ring a bell with you?....That is EXACTLY the size LOTS they BUY for their DRUG STORES.  Rent it out as a garage for a while.....10 years or so from now don't be surprised if that ONE ACRE is worth a LOT MORE than all your residential trailer rentals COMBINED.....How many ONE ACRE lots are on this road???  Is it a BIG LOT for the road or a small one??

Here's a PREDICTION from someone that actually DOES THIS....YOU'LL NEVER GO BACK!!!   You'll have EVERYONE of those houses you own on the market within a couple of YEARS!!!  And you'll wonder WHY you ever waited so long to do this!!  Again.....I've been doing this for 24 YEARS...I have a LOT more experience at this than Mike does....He has ZERO experience in commercial property.

John......If YOU can't close this deal.....CALL ME......I'll close it!!  CASH!!!

Here's a TIP.....

There's NO VACANCIES at your area REPAIR SHOPS because we're in a RECESSION!!!!   I rent to 5 of these businesses and their all BOOMING right now....When people CAN'T BUY a new car.....THEY FIX THEIR OLD ONE!!!!

If the owner of that building ain't getting paid....HE'S AN IDIOT!!!  Mike THRIVES on these situations in residential rentals...My guess is this guy has other commercial property that consists of RETAIL SPACE....If he has office space or RETAIL he would be hurting right now. That end of the market is DEAD.   But that's NOT what this space is!!

A 5 bay repair garage during THESE times ain't gonna last long when the FOR LEASE sign goes up in front....DO NOT be surprised if one of the other ESTABLISHED businesses MOVES to your location for better facilities, better traffic, better visibility (assuming your property HAS those features)
Another point......For a REPAIR GARAGE.....Having a ONE ACRE parcel is HUGE....These palces ALWAYS have customers cars sitting around waiting for repairs/parts, ect.....Having all that PARKING is a BIG plus for a repair shop!

Here's an interesting news clip from Raleigh N.C. on this very subject...

http://www.wral.com/news/local/video/4583155/


« Last Edit: March 03, 2010, 04:34:07 pm by fdjake »

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: My rentals are making me crazy
« Reply #47 on: March 03, 2010, 04:35:58 pm »
John,

If FDJake's right, this could be a very good deal.  If he doesn't understand your market and he's wrong, who will be taking the loss?  Again, I'm not saying it is or is not a good deal.  All I know is that FDJake is shoveling it pretty deep!  It's up to YOU to do the due diligence and determine the facts.
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline fdjake

  • Member
  • *****
  • Posts: 1900
Re: My rentals are making me crazy
« Reply #48 on: March 03, 2010, 04:39:17 pm »
Sort of like I SHOVELED IT when I told JOHN to buy FORD STOCK last January????

He LISTENED then.......Only THAT TIME he didn't use REAL MONEY....So he watched a $100,000+ PROFIT being SHOVELED OUT OF HIS ACCOUNT!!!!!

My feeling is JOHN is getting a little TIRED of following the.....

LET'S SIT ON THE SIDELINES ADVICE!

But Mikes right on some points here......You need to do your research...BUT honestly.....I've been IN this business....Repair shops do well in bad economic times.....UNLESS you run a shop that screws people....If you do that.....You're DONE.......Especially in a bad economy.

You've got 2 repairs shops named in this piece.....Do some DIGGING...Find out WHY one shops business is UP and the others is DOWN.....Is it LOCATION or REPUTATION????   If the second guy in that piece has a bad rep.....THAT'S why his business is down and the other shop is a better barometer of activity for these businesses....

I'll tell you RIGHT NOW where you can go and get COMPLETELY UNBIASED  opinions on whats happening to repair shops in your area.....

AUTO PARTS STORES!!!!!!!

They SELL to these guys.....ALL OF THEM.....Ask a few parts suppliers how BUSINESS is these days, and ask how the REPAIR shops are doing in the area.....THEY KNOW.....They BILL those repair shops for parts.....If everyone is LATE paying things aren't good....If the PARTS STORES are BUSY......So are the REPAIR SHOPS!!!

Now how come MIKE didn't give you THAT ADVICE?????

Answer:  Because he's got NO EXPERIENCE in this BUSINESS....

Tae advice from people who KNOW what they're talking about from EXPERIENCE.
« Last Edit: March 03, 2010, 04:58:29 pm by fdjake »

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: My rentals are making me crazy
« Reply #49 on: March 03, 2010, 04:55:53 pm »
I'm not giving anyone advice to sit on the sidelines, however I do think he should do his due diligence and not buy something due to peer pressure he's getting on the internet. I know that I'm not buying anything just because you or Rookie think that I should.  Also, just because you type something IN ALL CAPS doesn't make it right.

Furthermore, while you were right on the Ford stock, you were wrong on the QQQ Puts and if he followed that advice he would have LOST a bunch of money.  All I'm saying is that no-one, not you, not Rookie, and certainly not me, that are 100% right all the time.  My advice is to do due diligence and only play when you know you're going to win. 

I agree with your advice on quick flips.  I think that's very smart in this economy, especially if you don't want to do rentals.  In fact, flipping is probably less risky than rentals right now IF you have a job to fall back on if flipping falls apart with the economy.  If I am right about the economy collapsing in the next couple of years, then there will be significant risk with a rental property business.  Flipping one deal at a time offers very little risk if you buy right, provided you get out quick and provided you have a job or something else to fall back on if you can't live on flipping.

IF the garage is truly being sold at a big discount and IF there is demand for it and IF it doesn't have environmental issues - then it could be a good deal.  But John needs to do his due diligence since he's investing HIS MONEY.
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline fdjake

  • Member
  • *****
  • Posts: 1900
Re: My rentals are making me crazy
« Reply #50 on: March 03, 2010, 05:01:44 pm »
According to YOU....You're not buying ANYTHING.....PERIOD.

You're on the SIDELINES!!!!

I just gave him SPECIFIC ADVICE on EXACTLY how to due his research....

YOU GAVE HIM NOTHING!!!!!!

NOT A THING!!!!  Z E R O...  Not even a IDEA on HOW to research a COMMERCIAL PROPERTY.......But how could you?????   YOU don't have ANY experience doing that!!!

Oh and Mike my Profits on GOODYEAR alone.....CRUSHED the loss in those Q's.....Check the posts......THAT investment was ALSO laid out here in GREAT DETAIL....And you're the guy that sold ALL your Ford stock at what???  $3 change???  NICE!!!   And ONE LAST  POINT.....I NEVER told ANYONE to buy Q's....It was a trade "I" made and I simply posted it here because YOU asked people to POST their trades.....The ONLY stocks I have EVER recommended here SPECIFICALLY were FORD and GOODYEAR.....Get the story straight.

My current position in Ford is closing in on the 7 FIGURE MARK!!!!  So don't lose any sleep worrying for me about that Q loss.
« Last Edit: March 03, 2010, 05:49:41 pm by fdjake »

Offline REIER

  • Member
  • ***
  • Posts: 115
Re: My rentals are making me crazy
« Reply #51 on: March 03, 2010, 05:16:59 pm »
John,

How about just driving down the strip and asking the garage mechanics how is business and if they need more bays and room to park used cars for sale? That should give you a pretty good idea of demand. Also, why not see if any used car lots places need a new location? Or, maybe do a combo used car/ car mechanic location where you have one owner doing fix up work and another selling used cars. I'm just throwing out ideas here.

Also, how is the traffic flow during different times of the day? Keep an eye out for the other garages during various times of the day and see what they are getting for drive in business.

I'd also want to know why the current tenants aren't doing business. Is it a marketing problem or a reputation issue.  You can make a batter assesment after you start getting some answers.

« Last Edit: March 03, 2010, 05:30:05 pm by REIER »

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: My rentals are making me crazy
« Reply #52 on: March 03, 2010, 06:21:48 pm »
Quote
According to YOU....You're not buying ANYTHING.....PERIOD.

You're on the SIDELINES!!!!

I am not buying anything else.  I am NOT on the sidelines.  I have a rental property business that is doing quite well.

Quote
Oh and Mike my Profits on GOODYEAR alone.....CRUSHED the loss in those Q's...

Good, maybe from now on you could tell us which of your predictions will come true and which will crash and burn.

I honestly can't understand what you're arguing about?  Did you have a bad day?  I am agreeing with you about the flipping.  I am agreeing with you about the garage, if the due diligence pans out.  I am agreeing with you not to sit on the sidelines.  Maybe those commercial properties are getting to you after all!  Not quite as stress free as advertised?  For someone who claims to have made a big pile of money on stress free investments, you certainly seem unhappy.
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline fdjake

  • Member
  • *****
  • Posts: 1900
Re: My rentals are making me crazy
« Reply #53 on: March 03, 2010, 06:37:39 pm »
Or maybe it's just YOU!!!!

Maybe it's YOU telling people here I'm "SHOVELING IT ON" or "LAYING IT ON PRETTY THICK" and "HYPING an IVESTMENT"  When in REALITY...... YOU have ZERO EXPERIENCE doing this.......ZERO!!

I DO have a problem with a person that has NEVER OWNED a SINGLE PARCEL of commercial property telling others I'm "HYPING AN INVESTMENT" 

I have NEVER done that HERE or ANYWHERE ELSE.

I take my reputation very seriously...If you want to FLUSH  yours down the TOILET with your RIDICULUS RANTS about coming FOOD SHORTAGES, RIOTS and the COLLAPSE of OUR COUNTRY.....BE MY GUEST.....But when you start running your mouth about ME.....Yea...I have a BIG PROBLEM with that.

You were completely OUT OF LINE here.  Don't ever insinuate that I'm HYPING some investment. 

So in the END....You have NO IDEA what you're talking about....But why let that stop you from taking a few cheap shots at me?

Then you claim "I" have the problem.

INTERESTING
« Last Edit: March 03, 2010, 07:03:49 pm by fdjake »

Offline rookieNYC

  • Member
  • *****
  • Posts: 1000
Re: My rentals are making me crazy
« Reply #54 on: March 03, 2010, 07:11:50 pm »
Not that I expect John in NC to throw me under the bus, I advised him the other day to *not*  buy the said property..Not that my opinion  matters any because I have the *least* real estate experience here...I just know that cash is king right now and I hate being any kind of landlord and I want assets for *nothing*...And the price for the commercial property doesnt seem cheap enough for me *IF* John is making a cash offer...A cash offer on that property from me would be in the 120k-130k and let them negotiate it higher...Cash is king....But if someone lets me steal (not literally,but buying very cheap) from them I will gladly do it..



Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: My rentals are making me crazy
« Reply #55 on: March 03, 2010, 07:13:53 pm »
Isn't it interesting that YOU are the only one in the world that knows what they're talking about?  I guess there's no need for me to read what anyone else says, I'll just check REIClub for the latest news from FDJake!  LOL!

I think that you just like to argue.  It doesn't matter who you're arguing with or what you're arguing about - you just like to argue.

And just FYI, although I haven't owned an auto garage, I have owned some small commercial properties.  I owned a prime lot that I rented to a medical company and I simultaneously sold an easement to a phone company for a small corner of the property.  I later sold that property to a restaurant that needed the property for a parking lot.  In addition, I still own a small commercial building that was most recently rented to a company that did upholstery.  Commercial is not my business and I don't claim to have your experience in that area, but I don't have "ZERO" experience as you claimed.  Again, you are NOT the only one that knows anything.
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

Offline fdjake

  • Member
  • *****
  • Posts: 1900
Re: My rentals are making me crazy
« Reply #56 on: March 03, 2010, 08:49:48 pm »
Show me where I said "I" was the ONLY ONE that knows Commercial Real Estate??? 

We're talking about a COMMERCIAL PROPERTY that involves the CAR BUSINESS!!! 

What would I know about the CAR BUSINESS???? 

Well, I was just IN IT for over 15 YEARS, having OWNED a car dealership with a HEAVY REPAIR business for customers cars.  I STILL own that building and STILL hold the dealers license in my company name (I LEASE it to a tenant)  I ALSO own 4 other COMMERCIAL BUILDINGS that EACH have auto repair related businesses in them....I BUILT 2 of those 4 buildings from the GROUND UP....Purchased the land, developed it, obtained the permits, designed the lay outs, acted as GC for the construction...THEN found the TENANTS!!  I FOUND those TENANTS by GOING DIRECTLY to businesses in OTHER BUILDINGS and SHOWING THEM MY LOCATION and FACILITIES......That's how I found the FIRST tenant on my first spec building....The REST CAME in during the REHAB or CONSTRUCTION phases....You know, just like in the POST I WROTE on HOW TO SPRUCE UP THIS BUILDING to attract a TENANT!!

Want another one????  I put WASTE OIL heaters in EVERY BUILDING I lease to AUTOMOTIVE BUSINESSES.....That ALONE has brought in tenants...A waste oil heater runs on USED MOTOR OIL and transmission fluid....It can also run on regular heating oil, but for a CAR REPAIR BUSINESS that is constantly producing waste oil and having to PAY someone to take it off their hands, having a facility that installed these heaters is a DOUBLE savings for them....No cost to dispose it and it's also HEATING the building which drastically cut ultility bills!  It's a double win for me too...I don't have to worry about someone dumping motor somewhere it shouldn't be and the tenants LOVE the systems.....Believe me.....These guys learn REAL QUICK that every DROP they pour into that tank is MONEY NOT coming out of their POCKET!!  And If that auto business moves out...Those heaters LOVE running on regular CLEAN heating oil.  Everyone WINS!!!

I'm sure you could just dismiss these tid bits I've given away for free here as HYPE...But whatever....Want to know someone that WON'T DISMISS IT????

YOUR FUTURE TENANTS!!!!

Anyone that has been in the repair business knows a few important things..And if YOU know these things....THEY WILL LEASE YOUR BUILDING!!!

1)  A good location with a GOOD LOOKING BUILDING attracts ATTENTION!  ATTENTION attracts CUSTOMERS!!!
2) A well thought out building, designed with EXPENSE SAVING features, means MORE PROFIT for that tenant.
3) A buiding that is located on a busy Avenue will have many OPTIONS for that owner and tenants as time goes by.  That garage is just the beginning.

But what do I know????



« Last Edit: March 04, 2010, 03:13:07 pm by fdjake »

Offline John_in_NC

  • Member
  • ****
  • Posts: 772
Re: My rentals are making me crazy
« Reply #57 on: March 04, 2010, 06:08:32 pm »
First off, THANKS for the help from everyone! I enjoy the opposing views here. There are a million things running through my mind with this but I am pretty confident of this property. Tommorrow or monday, i'm going to try to buy this thing. There are two negatives i've discovered in my digging. 3500 of back taxes and it's in a flood zone. Neither are that big of a deal to me. Flood insurance is going to cost around 3K a year from what im being told. If anyone knows different on commercial please speak up! I'm wondering if my local bank will even know and make me buy it?

Well thanks again, and I'll report back on my progress with this property.


Offline John_in_NC

  • Member
  • ****
  • Posts: 772
Re: My rentals are making me crazy
« Reply #58 on: March 19, 2010, 07:32:51 pm »
Well I bought it! wish me luck! I've been told by more than one real estate professional this is a hell of a deal.

Offline propertymanager

  • Member
  • *****
  • Posts: 4854
Re: My rentals are making me crazy
« Reply #59 on: March 19, 2010, 08:29:16 pm »
Congratulations!  I hope you make a big pile of money!
www.1MinuteToRentalPropertyRichs.com 
This No-Hype, No-Nonsense Book is a step by step course in making money and building wealth with rental properties!  Everything from buying properties at a discount to dealing with terrible tenants.  Now In Paperback!

 




SMF 2.0.15 | SMF © 2017, Simple Machines