Expert: Terrence Cullen - 3/4/2009

Question
i can't figure out how to make a profit on commercial prpty like multifamily or apt bldgs. how do i find the "below the market" priced properties in new york, or anywhere for that matter??? after putting down 30% down, where are the profits????? even interested in flipping properties, but again how and where do i find these below market properties so that i can make a profit. please advise

Answer
This isn't a viable economic climate for flipping unless you buy a property in foreclosure.
  The value that is attached at closing of the original loan is where most lender will base their evaluation of value for the second transaction with small adjustments for capital improvements and improving market conditions.   
   If you want to make money in this market you have to take the chance to be an equity lender or JV partner stretching the dollars from 70 to 80 or more. The risk is greater but the margin is better. Otherwise, your best bet is to find properties in sound markets not dependent on an employment base that may be in trouble, buy cheap and hold until the market rebounds which it will.

Good Luck, TC