"'m sure it is baby boomers who are calling FP an "arsehole" for talking smack about boomers"

No it's for all of the other vile sh!t that comes out of his mouth. Like being a slumlord who thinks it's charity to charge high rents to poor people he loaths. Whining about where the tax money goes yet he pays no taxes. And then there's the military service angle which isn't going to earn him any respect at all. A lot of talk with no skin in the game. Probably doesn't even vote.

Regarding the loans you are currently working on, they point a bit to what I see. Service industries are doing okay, HVAC, mechanics, plumbers, etc. Are these the sectors improving on your end of business loans?

I see some service businesses doing well, but so are some of my mfgs. I bank 175+ companies in GH, Thurston, Pacific and Lewis counties. Some are doing well, others okay, some are sucking wind.



I understand that you are actively looking to put the money to work, is there a point that the deposits get so high to force bank policy changes as to individual parameters for a loan?

There is never a point where a lender should set aside sound lending practices, although lawmakers with short memories will ask us to do so. I blew snot out of my nose during the State of the Union speech when Obama said that red tape (created under his watch) needed to be eliminated so that banks could lend money to home buyers. He blamed banks for tightening up lending criteria, when it really was the regulators driving the process, and the regulators work for .GOV, not the banks. Not trying to be partisan at all, but it is a recent valid example of my point.

We have gotten out of the market somewhat in some sectors that we had participated in in the past, like Spec construction, raw land, and a few other categories. As markets improve, we will re-enter those markets slowly. Spec is where we took our biggest hits, mainly up north in Whatcom County, but also in Clatsop County. We had no spec issue in my market, thankfully.


As to strip malls, a lot of them that I have dealt with personally have been owned by families and partnerships for a long period of time. Those who sold in 2004-2005 did well to get out as they likely sold at the top of the market. If they held their properties, many of these folks had minimal debt. Anybody who bought since 2005 or so and financed them highly, and is experiencing a lot of vacancies, are probably sucking wind about now. Someone who bought and held and made a substantial down payment, rather than just minimally investing in it with the intention of flipping, is probably doing just fine. It really depends on the area, and most importantly, occupancy. Blight breeds blight in strip malls.

I had one in Ocean Shores that I banked many years back at Seafirst. The stores sold the same crap that all the other stores sold, the guy had minimal debt, and he was printing money. This was back in 1998 or so, but I think he was grossing around $150,000/yr in rents, debt service was $25,000 annually, annual taxes were $25,000 annually, and insurance wasn't much more. Net cash flow was in the range of $70,000 in 1998 money for a property he paid $300,000 for a few years earlier. This was one of his buildings, and he had many. He also had a lot of toys. I remember numbers. Folks like him who held through this are doing well. Saddle a property like that with lots of debt, and low occupancy, and it will become a problem loan.

You can't lump all strip malls together though, just like you can't lump all in a generation together. Each one is an individual.

Owner occupied equals 51% of total building space, and I wouldn't want to live over or next to that just to meet a loan condition. Live/work buildings sound like a neat option, except when you try to find comps. If bought in a partnership, selling a minority share is a problem. Even selling a majority share is a problem. Not so bad if you are a sole owner, but then again, where are the comps to justify what you want to ask? (Plunder stage, aka exit strategy)

"All this coming from a guy who is so smart he can't even figure out how the quote function works. Funny how Stupidhead claims I'm a slumlord, that charges high rents, when slumlords by definition, charge low rents because they don't maintain their property. Seems like hes twisting words around again and making up his own definitions. Then straw manning yet again, by claiming I don't pay taxes, when I've made it abundantly clear in other threads that I do, I just pay as little as legally possible into SS by paying myself minimum wage and taking dividends. As for the revisionist history, check out who founded all them dot.com companies, it sure wasn't the boomers. Seems like he knows just as much about these topics as he does every other topic. Keep on trolling Stupidhead, I don't even care. You can't possibly really be this stupid?"

Can you guess the reason I don't like to quote the entire conversation? Come on...it's an easy one...even you can get it if you try. I suggest you do some homework and look at the rise and fall of the .coms. There's a few by Gen X'er's but not many. As far as the tech industry goes that led up to the .com explosion it was the baby boomers baby! In fact almost everything you do in every day life was invented or perfected by a boomer. Even stuff that's made in China now originated here and by a boomer. And I'm trying to think of a single software language invented by a Gen X'er...hmmm....nope. And yeah I feel "entitled" to all of that SS I've paid in.

Yeah I was talking more about the tenants. Every time I pass one of these places I feel there's no way an average intellect could think that's going to work as abusiness model and I wonder if a bank gave them a loan or are they just wasting their own money? I highly doubt a property owner would back them but maybe there's a nice little tax shelter going on there.

" think I know what kind of engineer you are, a sanitation engineer, because you're so FOS."

Actually c&P is quicker than your brain fires. Faster than that little spark to your mouse finger.

I'm not just an engineer I'm your pimp biotch. At least I'm not some slum lord telling everyone that business model is a slam dunk. Lot's of dead carcasses on that road.

Something we agree on. Which is why I take my investing seriously and feel right now isn't a time you want your money on the sidelines. Timing is everything. I do supposedly have two pensions and many decades into SS but true financial freedom is having enough that you can take job loss, loss of all of that pension/SS stuff, etc and stay comfortable. I like to call it the Dave Vedder plateau. But this rug could be pulled on either one of us at any time. I've been through too many cycles to take any of it for granted. The big expense for retirees right now is Health Care which you and I would not agree on. I was raised in an era where we took care of those whom worked their entire lives as if they provided a service to their country. We are moving away from that into an every man for himself mentality which I feel isn't good for this country or it's people.

As far as being a tenant, there are much lower start-up costs if you rent, and considering that your chances are 1 in 5 of making it 5 years, it is reasonable to not invest so heavily into a location for a start-up. Lots of businesses in strip malls do well. Depends on the business, the competition, and the local market conditions. There is no catch-all.

Famous Footwear has stores in strip malls almost exclusively strip malls. They have a reasonable business.

Well, I tried to keep it on topic.

Dude, we talked about this..............

Fish on...

Todd

P.S.

Low-hanging fruit.

FP---The boomers have been handed everything their whole lives on a silver platter and it ain't going to go on forever, so you better get used to that.


And here I thought I got all those callouses and weary bones from working, I guess I missed the gravy train while I was out earning a living paying for some snot nosed, selfish little punk that doesn't recognize that he was taken care of until he learned how to wipe his own [Bleeeeep!] and beyond!

Thanks for clearing that up, now wheres that gravy train again?

Fishy

So you do have a Mom and Dad that were a burden on society and on the gravy train, I hope you show them that drivel about being a drain on society and that they should just end it now so they don't burden you further!

We as a society helped build the infrastructure that you use to drive on, educated,healthy and entertained. No man is an island no matter the drivel that slops out of your mouth.

Tell your folks goodbye from me!

Fishy

Threadjack much?

If your going to be a dumbass expect to be called on it!

Fishy

My comment was directly related to your comment on this thread about "coffin dodgers" it helps to not be a dumbass on too many posts at once, try and keep up.

I know full well how to use this forum, just choose to do my own thing.

Not Stlhead or whomever you've taken a beating from in the past, and if your sensitive about insults or emotional then perhaps not choosing to use phrases like "coffin dodgers" might be in order. Or be prepared to be called out on being a dumbass!

I've had enough of this drivel for tonight, ta ta.

Fishy

I'd guess they're betting on people who can pay them back. It's radical thinking compared to the previous decade when homeless people could get a mortgage.

OH OUCH!!!!!!!!!!

I read this?........I have to go shoot myself now........

This thread followed the normal course for a Dark Side thread as expected and there is some good info to take out of it. It actually reinforced some of the marketing strategies we have been working on.

I hate marketing and whenever I have a marketing meeting with my people I try to steer clear of any action items.

Sales is much easier and more fun.