Caleb Yamanaka's Discussions

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damn computer. I don't know how you regulate Agent's trying to push you into a purchase, trying to get "creative". 

Offer what you think it is worth.  The worst the bank can say is "no".  The nice thing about REO's is there is no emotion in the purchase (on the banks side) it is all numbers.  

9.5% cap.  Does that seem to be the prevailing rate on multi-density properties in New Jersey?  Have you seen a definite change in cap rate over the past year and a half? Gotta love those alternative revenue streams.

Deal that we have is that we are winding down on industrial subdivision sale.  Over the last year we have been able to maintain our asking price and even raised prices after we completed half the sales.  The reason we have been able to maintain asking price is because it is the only fee simple industrial land in our town.

In our market it is mostly businesses.  Hilo's main Industrial Area is primarily on Leasehold lands (with the State and other entitites).  Leases will begin coming due in 8 years, and per State law, go out to bid.  With no guarantee that businesses will get their land back, they are turning to our sudvisision. There have been a couple investors, but mostly businesses.

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We have not seen the increase in Cap Rates as yet, but suspect that it will be a necessary consequence of previous Commercial Buyers acquiring property at lower cap rates and having to refinance at higher interest rates.