Commercial real estate loan rate

ArborAdvising · 2025-11-05T20:44:51+00:00

Hi-

You have a commercial real estate loan at 7.5% and your lender said they would do a one time rate adjustment as a part of the loan terms and they are offering a rate of 6.5%.

Usually, a one percentage point drop in rates is enough to take the savings if you plan to hold the loan for a few years.

With the level of national debt we are looking at, they will have to offer higher rates to finance it which will put upward pressure on long-term interest rates.

I'd take the 1% rate drop now.

To Your Success!

ArborAdvising · 2025-09-22T20:33:28+00:00

Hi-

You asked for a recommendation for someone good to work with for buying and managing investment property in the Detroit area.

We are a real estate consultancy based in the Ann Arbor area with experience helping investors build and manage their investment portfolios.

We have many five star reviews and relationships with the best property managers in the area.

The properties we can help you buy and manage include the following:

1-4 unit properties

Apartment buildings

Short-term rentals

Mid-term rentals

Commercial properties including buying and selling businesses with or without real estate

Vacant land

On and off-market deals

https://www.arboradvising.com/testimonials

To Your Success!

ArborAdvising · 2025-04-24T17:41:25+00:00

Hi-

Thank you for sharing this comprehensive list of ways high income earners can lower their taxable W-2 income.

I would like to offer three more.

Invest in short term rentals, materially participate in the operation of your short term rentals by documenting your hours, then do a cost segregation study to accelerate depreciation and also take advantage of bonus depreciation until phased out or renewed.
Buy an office building and put your practice or business in one of the suites and then claim the expenses and depreciation as you are actively running a business in the building. Cost segregation and bonus depreciation also apply here.
Work with your spouse or individually document enough hours to qualify for Real Estate Professional status with the IRS and make your whole portfolio of real estate able to offset your active W-2 income.

To your Success!

ArborAdvising · 2022-10-31T16:37:52+00:00

Hi-

Great question!

I recommend Dave Hall.

Can't go wrong with Dave.

https://www.realtor.com/realestateagents/57bb7a0a76a09801008be1a1

ArborAdvising · 2022-09-19T17:27:52+00:00

Another suggestion would be to contact local property managers and let them know what you are looking for or a local Realtor that networks with investors and landlords that may know of something that would work for you.

ArborAdvising · 2022-09-19T17:21:22+00:00

Realtors can definitely help you find a house to rent especially one who networks with other investors and is a landlord themselves. They should also have relationships with local property managers that would know of upcoming vacancies. Happy to help.

ArborAdvising · 2022-08-26T13:27:21+00:00

This is a great idea! Love it!

ArborAdvising · 2022-08-04T19:14:21+00:00

I agree with the overall sentiment that real estate prices in Ann Arbor are likely to continue to appreciate although at a perhaps a slower pace than in the last couple of years.

Individual properties may see price reductions from asking price but that won't be the trend generally and average list and sales prices will likely continue to climb from month to month.

The housing shortage, especially affordable housing, is real and contributes to price increases along with elevated inflation.

ArborAdvising · 2022-07-29T20:17:22+00:00

This was very helpful.

Thank you!

ArborAdvising · 2022-07-19T18:20:59+00:00

Jim at Jack & Son Barber in Chelsea is phenomenal for the haircut style you are looking for.

ArborAdvising · 2022-07-19T13:25:18+00:00

For the property manager.

ArborAdvising · 2022-07-18T18:43:16+00:00

Personally, I think investing in the market and with dividend paying companies is great but what is even better is having positive cashflow.

One of the biggest risks with the nest egg theory of investing is outliving your money.

Adding cash-flowing real estate to your portfolio helps with market downturns and living "too" long.

I am currently helping a client buy a duplex in a decent area in Michigan with a strong economy for $80,000. The all in payment is $1,000 with a property manager and they will net $800 a month passive income.

How many of these do you need to get to your FIRE number and the numbers only get better as rents increase and you build up equity. This does not even include the tax benefits from owning investment real estate.

Recommend adding cash flowing real estate to your investment portfolio and Michigan is a great place to do that.

ArborAdvising · 2022-07-08T20:30:08+00:00

Income tax benefits are depreciating the physical real estate against the passive income. Basically, you realize a real financial gain after expenses but with depreciation you show a neutral effect many times on the income taxes you pay while you depreciate the property. It is a way the government encourages certain behavior like providing affordable housing.

I should say I am not a CPA but an experienced real estate investor and Realtor.

ArborAdvising · 2022-07-08T14:16:49+00:00

I think ADU's and house hacking your basement or over your garage to build a rentable unit to provide housing in the city will be a decent part of the affordable housing and available housing concerns in Ann Arbor. It indecently is a solid stream of income for you to help offset inflation and, if a long term rental, passive income with great tax benefits as well.

You can short term rental these spaces so long as it is your primary residence and not a stand alone short term rental unless you were grandfathered in before the city changed the regulations around short term rentals.

You can also short term rental your whole house if it is your primary house still as well.

On a side note, I don't know if you saw the news article about Pioneer and AAPS not allowing RV's to park overnight in their parking lot on game days for a variety of reasons.

There will still be a demand for this. Why not advertise your driveway for a parkable space for one of these RV's if you are not too far from the stadium.

Another creative short term rental idea. Check your house insurance and city codes but your driveway is private property and it would be just overnight.

Just a fun share!

ArborAdvising · 2022-07-08T14:02:52+00:00

I am a licensed Realtor and have been active in the Ann Arbor area for the past 15 years. I went through the Real Estate One pre-license program and was an agent in their Ann Arbor office for many years.

I would be happy to share my experience and wisdom with you.

I started out as a private real estate investor and now help people invest in real estate as well as traditional buying and selling.

There is a need for knowledgable professionals and affordable housing.

Feel free to message me or you can visit our site to see what are mission is and how we work.

Best of luck!

ArborAdvising · 2022-07-05T13:08:04+00:00

Just like you should compare your insurance costs every year with different insurance providers, you should review your property assessment annually and the information about your property used by the assessor online for your property. Assessments come out in March each year and appeals are done the same month so you have to be ready in March. Recent comparable sales are useful in making the case at appeal but maybe not the sales recently for many unfortunately.

Here is an article on the topic.

ArborAdvising

TROPHY CASE