Personal Investment
If you guys were to personally go out and invest tomorrow in commercial real estate, what would be your bottom line cap for income producing? What type of properties would you want to invest in? Any interest in development? If so what would you want to develop?
[{"id": "cpf9tgi", "text": "Cap would be a function of the loan rate. Multifamily. No. N/A. ", "replies": [], "depth": 1}, {"id": "cpffrx8", "text": "Looking at getting into mf in what I would consider secondary/tertiary markets. Eventually 1031 into nicer products. I like retail and hotels, but mf is just so accessible.\n\nDevelopment is interesting but too risk for me at this point. ", "replies": [{"id": "cpfiipf", "text": "I agree. mf is hot with millennials being the way they are. I like self storage and i think eventually my market will see a need for self storage because there are over 1000 approved apartments in the works and nobody is building self storage.. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cpgc0rw", "text": "I'm a big MF guy and been working in that sector for a decade.  For a while now I've been watching caps fall and scratching my head.  Today I saw a well known developer that typically holds projects long term (talking 30+ year old company) liquidated several assets and said they had so much interest in their projects they wanted to change things up.  \n\nI think there is too much money going into MF right now and caps are too low.  Its safe, but I just think its beaten down too much.  \n\nI look at office sectors and I just have so many questions about what office looks like 10 or 20 years from now.  \n\nGood retail is driven into the ground too (though notably not as much as mf).  \n\nIf I have 100 million sitting around what do I do personally?  \n\nI start looking at a-/b area non anchored strips or vacant anchor'ed strip centers I can add value too.  \n\nI think people are too pessimestic on this.  People always need somewhere to shop.  I'm not saying go out and buy a regional mall, but the strip on a decent intersection that has 60% occupancy with no anchor, or one that is vacant and maybe I don't get a great tenant but I can put a furniture store in or something?  I want to know about that and look at it a lot closer.  I think the stability of that is understated in the market.  ", "replies": [{"id": "cpgy18s", "text": "Agreed - piggy backing on this I would consider any asset that you can add value is a good project. You go in at a lower price, put in the necessary and manageable improvements, and build equity. ", "replies": [], "depth": 2}, {"id": "cph0ay1", "text": "thats great idea.. we had a bad area of town get turned around by having a Chipotle open up in a struggling strip which in turn brought in a starbucks which in turn revamped the whole area. theres tons of potential in that class range ", "replies": [], "depth": 2}, {"id": "cphmox8", "text": "Not an owner, but my 2 cents...  \n\nPeople are always going to want to go out for food and drinks, but location and connections are key for bars/restaurants to be successful (in addition to service/quality). I'm not counting on people always wanting to go out and shop like we do currently. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cpi6e5a", "text": "10 cap &amp; multifamily.  Not buying anytime soon with the current market lol", "replies": [], "depth": 1}]