Thread 512085115

/pol/tards

Hear me out here, I've been here since /b/oxxy, which is early 2000s,

Invest in commercial real estate.
As I grow older and I begin to understand how Finance works, I understand why commercial real estate makes actual sense.

I know you're thinking McMansion and what not, don't, invest in Commercial Real estate.

If we started a fund just for /pol/tards, it could be great, not a REIT, but a literal portfolio which doesn't suck

Money comes and goes, but Commercial Real Estate is for ever,
Do you guys not see this evidence?
No gof courses, no bars, just Commercial Real Estate

It's the only way to beat the jews, Whites need to become majority owners of big Commercial Real Estate buildings

>>512085115 (OP)
Good idea. Start a GiveSendGo. I will donate if I am allowed a cut.

>>512085115 (OP)
>pandemic lockdowns blocks your path

sorry shit skin, nothing personal

>>512085115 (OP)
Pandemic destroyed commercial re. It's not coming back.
RV living will destroy residential housing.

Why

Are you suggesting we buy and hold capital? I dont think that builds wealth show proof.

>>512085115 (OP)
>here hold these bags

CRE is over the fucking cliff dude. I am not catching that falling knife. If any anons want to, good fucking luck to you. You should unironically just put your money in BTC and either swing trade or hodl.

>>512085115 (OP)
>Invest in commercial real-estate
>In this market
Are you fucking kidding? Commercial real-estate is going to pop like the 2008 housing market, fucking no one is buying office building spaces and shopping center stores are barren/empty

>>512086837
>>512086957
Crash when? The numbers were fucked up before covid and became worse when does it pop?

>>512085115 (OP)
>If we started a fund just for /pol/tards, it could be great, not a REIT, but a literal portfolio which doesn't suck
The main weak link I see in your plan is that 99.9% of the posters here are bots and unemployed broke shitskins.

>>512085115 (OP)
I’m sorry to burst your bubble but that’s retarded. I say this as someone who worked in commercial real estate. Crowd investment in commercial real estate is a scam of an investment.

>>512085115 (OP)
Lol. Multifamily is about to crater because all they build is highly leveraged premium condos, office is basically obsolete and almost every building is losing money, retail that isnt cookie cutter big box minimally profitable retail is incredibly risky to lease, while industrial is a solid investment, but over valued and has an incredibly high barrier of entry.
>t. Commercial real estate analyst

>>512085115 (OP)
oh ok AIscript send me 8 milly so I can buy a city block and sell mudmeat to white pipo

>>512085115 (OP)
Don't be fooled by OP's Jewish tricks. Office space vacancy's are high which brings down the value of this jews real estate. Post is an effort to buy his bag. I see you Rabbi.

>>512087215
>about to crater because all they build is highly leveraged premium condos
I fucking hate this shit, no one builds like upper lower class or lower middle class housing. Stupid height limits building restricting fucking zoning thats just made up. Why the fuck cant we just build more houses or high density tall apartments?
My only argument is i dont want someone importing the entire ghetto into the 10 story building next to my neighborhood but that wouldnt be a problem IF WE JUST HAD POLICE who arrested criminals

>>512085115 (OP)
>beat the jew
>the inflated realestate is coming from banks flooding the credit creation, and banks are owned by jews
you are only feeding the jews, idiot.
Abolishing realestate all together as an investment is the solution, there's a reason why there was coordinated attack against wfh, because they want people around urban areas to keep prices high and milk more taxes

>>512087500
>Abolishing realestate
the mongols did that, but they were crazy pyromaniacs

>>512086149
what is RV?

>>512086641
>Borrow money to buy strip mall
>Income from rent covers mortgage, plus a bit of operating profit on top
then
>Sell strip mall in 5-20 years after building equity essentially for free, while land/property value also increases
>Realize a healthy profit
OR
>leverage your existing strip mall tenants as security to get another loan to buy more/better property
>Rent from this covers the mortgage and gives a bit of profit, and provides more value that can be leveraged/used as security
>Repeat this process ad infinitum

>>512087409
Nah man it's way simplier. You finance a building relative to established rents vs projected rents and occupancy, or based on projected occupancy and profitability of the venture on a per unit basis. Cap rate. If people own a building they want to jack rents to the moon, because they know the infrastructure investments are less expensive than the per unit rent returns, and they can leverage the difference into a loan. On a new build you need to secure investor confidence, and it's easier to do that on premium space than an economy space because the security associated with the clientel in the premium space offsets the risk of default. Ideally the first group of people purchasing units immediately secure profitability on their initial purchase due to inflation, and they flip them to a third party. The developer loves this because they cruise in presale and have a fuckload of capital. But right now as interest rates are going up, it's harder for the third party to secure the loan necessary to purchase it from the second party, developer's capital cost is higher, and as the market flattens, since the space has a smaller return on investment, you have higher "vacancy", meaning people who invested in the space but dont live in it, which lowers the desirability of the space.

But economy units? You slum dog cutting corners and need high occupancy to turn a profit. Nothing lowish income on a new build would be desirable, or affordable, and if it was it would be snapped up instantly at lower margins.

>>512085115 (OP)
Yeah good idea, let me go put a bid on a dead mall since people are gonna get sick of this Amazon fad and retail is gonna come back strong.

Or maybe I could buy some offices that nobody needs anymore because people can work from home.

>>512088213
Fuck you making sense on my board.
Rent prices are too damn high.
Zoning rules are still bullshit though and raise the prices just to preserve others who dont own that land

>>512088058
Retail's dead, son. Strip malls in particular. Aint nobody moving in to an empty strip mall. A new build is super expensive. And a decent stripmall with upside in a reasonable location is in the 5-10 milly ball park. We dont have the scale. And even if we did, like I could manage the fund, but you're paying me $150-200k to do so, plus a property manager, plus three percent realtor fees, plus a tennant finder fee through colliers or whatever, plus taxes and improvements. Getting an initial loan with no collateral would be impossible.

>>512087921
>what is RV?
"Recreational Vehicle", essentially a gypsy trailer.

>>512085115 (OP)
Nah multi-family is where its at, there are some opportunities to convert commercial real estate to housing, that's definitely an opportunity.

>>512088600
The biggest bottleneck to affordable housing is actually speculation. Bank gives you a loan for a space, you pay it off plus interest. Everyone's cool. Bank gived you a loan for the space, you lease it to get your money back. Still cool. Now you have an asset. So you leverage your asset to purchase a second space contingent on the income from the first space producing enough profit to essentially pay for two mortgages. Now we're getting shady. When all rental properties do this, essentially half the space is paying for the mortgage, the other half is paying for the next one. And so they daisy chain together. Now rent is higher than a mortgage, like it is now, and predatory based on the idea renters have no assets they can leverage for a mortgage.

The solution? One property, basically zero tax. Second property? Jack the taxes up. Third property? You're paying 70ish percent tax. But the banks love the current situation, and so does the government, and so does the asset holders. Hence unaffordability.

>>512085115 (OP)
Good idea. I am in. I’ve worked in CRE for 20 years and am on the investment committee for the fund that I work for.

Let’s buy multifamily in 2nd tier cities with growing populations.

/pol/ Multifamily Fund I

>>512087500
This is ridiculous, the areas of the US that are best cash flow for investors are also the cheapest areas where the build lots of housing, middle America, the expensive coastal areas are the worst. True investors aren't the issue, they always want more housing created and they hate HOAs etc. The real issue are boomer house owners who view their own home as an investment vehicle in places like California and artificially restrict new housing to keep their own house worth as much as possible.

>>512089321
I am investor in multi family properties, I will join your fund

>>512089248
>predatory based on the idea renters have no assets they can leverage for a mortgage.
Why cant we loosen regulations and start a price war? Unless all the big companies are acting in unison as a monopoly or cartel why wouldnt one cut the rent to get more tenants to build or get more loans for more apartments? I guess the main issue is still funding if prices spiral down banks dont loan and no one has money to start building in the first place?
>The solution? One property, basically zero tax. Second property? Jack the taxes up.
You see my llc owns only one property but my holding corporation holds 20 llcs! but yours is still a reasonable solution I just wish i could buy land and build a house without the city shutting me down or forcing me to use certain builders or insurance or other dumb shit that force the price. Im fine the regular 'it cant catch fire easily or collapse easily' but so many others are just stupid.

>>512089248
>>512088759
Smart. What about industrial though?

>>512085115 (OP)
i would love to own some commercial real estate

>>512089781
Bc they all use the same app that sets a fair market rate for pricing in X zone and ensures everyone wins.

>>512089321
>>512089653
I mean if there are legitimately other people who know what they're doing I'm down to help in any way I can, but I remain skeptical.

I’ll start one. I’ll crowdfund it and pay dividends via crypto. Been wanting to do that for years.

I’ll see if I can get something going and I’ll post details for people that are interested.

>>512089881
>Bc they all use the same app that sets a fair market rate for pricing in X zone and ensures everyone wins.
Isnt that price fixing and has been illegal for a long time?

>>512089912
It’s not that difficult. Hardest part honestly is managing the properties.

I bet all the boards can come up with a couple mil worth of ETH without that much difficulty. I’ll find a property and see if an analyst can put together returns and a deck for us to review next week.

>>512089787
Industrial along transportation corridors? Gold. I'm not going to tell you the exact math I use, but in general if you see a place with an increasing population density, the surrounding towns will require fufillment. But that being said, an Amazon or Walmart or other 5 star industrial space is like in the 100s of millions to build to their specs. A smaller set of industrial condos in a similar area? Fairly profitable, assuming the infrastructure exists and aging hicks are less rigorous than I am relative to upgrade costs. But almost all of it is bought up, both the land and the space. This has been the big trend since wfh and covid so it's highly prized; buy a big chunk of land in between mid sized towns, and pray amazon decides to use it. But, assuming the capital, probably the best option for reasonable returns, even on 3 star properties.

>>512090042
There is an antitrust case on RENTmaximizer which is still ongoing. Basically company arguing that the algorithm recommending prices isn’t price fixing.

>>512088759
Tough about buying cheap stressed office space and converting them to lofts/coomer pods whattdaya think bud.

>>512090209
Fuck yeah. But beware, the people with the capital will be levered to the gills, I doubt it's dry powder, and those with dry powder are going to be... eccentric. Also the second anyone shows they know what they're doing scammers will be drawn to it like a moth to flame. We'd probably need a minimum buy in around $5k, and some sort of way to make sure they leave the money in the fund for a period of time, but that's not my expertise. Still though, I'm happy to help and I'm a hell of an analyst with some *ahem* social engineering skills if you catch my drift.

>>512085115 (OP)
>RE sales shilling on /pol/
Thank god FINALLY the market is crashing!

>>512085115 (OP)
>Commercial real estate
It could be good, but if you want to buy genuinely good commercial real estate you need to buy something in the multiple millions. Otherwise you'll be buying some shitty derelict shop front or a tiny warehouse in a block of 50 warehouses.

>>512088759
>Retail's dead, son. Strip malls in particular. Aint nobody moving in to an empty strip mall. A new build is super expensive. And a decent stripmall with upside in a reasonable location is in the 5-10 milly ball park. We dont have the scale. And even if we did, like I could manage the fund, but you're paying me $150-200k to do so, plus a property manager, plus three percent realtor fees, plus a tennant finder fee through colliers or whatever, plus taxes and improvements. Getting an initial loan with no collateral would be impossible.
Strip Malls are doing better than most regular malls in the USA.
The simple reason, is that a strip mall is an open area where the individual businesses can stay open 24 hours a day if necessary, while sharing parking with each other, and possibly other things like security and garbage pickup.
Strip malls also avoid the issue of businesses in residential areas were a business might easily piss of people living in houses next door, and strip malls avoid in city business district issue were one usually has to park in a garage, or find parking on the street.
And if local property prices get significantly higher, strip malls are usually easier to tear down for rebuilding.

>please buy my shitty commercial property that's losing money
>t. bag holder jew
once you announcing it here is a dogshit investment

>>512090535
Depends entirely on zoning. Big trend right now is mixed use resimercial zoning so that you have a retail component, layers of office above that, and residental to the top. This allows flexibility to convert part of a segment to a more profitable segment over time; I think Vancouver is even doing it with industrial buildings. But for conversions? Compliance and retrofitting designed officl buildings with the necessary ammenities will be a fucking headache. Like toilets and water on an individual basis per unit will be insanely expensive because you cant do communial outside of dorms or some weird shit, but depends on your laws. A rezoning app is prohibitively expensive and takes eternity as well. Plus there's the problem of having no revenue stream while you retrofit your space for another use. That being said, if the numbers work, the numbers work. I cant promise they will, we'd need a hell of a lot of money with additional to sit on, plus the DFC is going to eat it as some of our costs go up over time with political volitility, but hey, I dont make decisions, I just give information.

>>512090789
Yes, but doing better than regular malls is a low bar, because finding tenants is more difficult. Sure space in a mall costs a fuckload, but boutique retail in a nice space with boutique retail nearby will be profitable, and they sign 5 to 10 year plus leases because they have more leverage. Stripmalls? You need to evaluate the demographics, the throughput of traffic, and have a good property manager with strong negotiating skills. The parking is a negative because that's space that cant be monetized, and takes up the majority of your property. Sure you might get a reasonable psf in your retail space, but it's a poor way to leverage everything you own, especially in a smaller scale.

>>512085115 (OP)
>zoomers don’t go outside anymore
>AI taking over jobs
>WFH now popular
>increased crime means less people want to go out
Buy commercial real estate!

>>512085115 (OP)
Sort of. It depends when you buy it. Only buy to relieve a bank of bad debt and a company from going under. Otherwise next dip you will be that company.

>>512087272
This isn't a bad deal if he's forced to sell at less than half its value.

>>512090789
strip malls are thriving. There is a trick to revitalizing dead malls.

>>512085115 (OP)
> commercial real estate
All empty and worthless because no longer needed.

there are so many empty offices and strip malls and light industrial sites and small warehouses now

but prices aren't coming down

>>512085115 (OP)
> but Commercial Real Estate is for ever,
Kek