Commercial Investments

You have three votes, please tell me what interests you in commercial investing?

I always wanted to know if we all had the money to jump into commercial investing, what would we do?

Apartment Buildings - cashflow.

Same for me.

More specifically to add to your poll, Self Storage (not mini), Office Condos, Assisted Living.

Most right now would be apartment buildings.

I am also interested in Mobile home parks, self storage and flex warehouse space but by far the apartment buildings come first.

This.

small apartment buildings and then assist living.

Why do you invest apartments?

Multi-family units, storage, mobile home parks are my interest. I am a newbie and learning.

Apartments and Self Storage

Apartments number one.

Assisted living = big bucks but more complex business profile

Mobile home parks and mini storage

I am also interested in Mobile home parks, self storage and flex warehouse space but by far the apartment buildings come first.

With assisted living, are you managing them as well (doing the assisting?), or just buying buildings that could be used as assisted living?

Managing yourself; or by your staff. Completely different game than typical real estate. Very hands on but extremely profitable. + the government is deeply embedded in your A**

I have a friend who does these in large multifamily houses and he is doing very well but it is more along the lines of a regular business than real estate investing.

More specifically to add to your poll, Self Storage (not mini), Office Condos, Assisted Living.

Apartments: this is a management intensive investment as the turn over rate is high. The leases are short-termed often at one year of month to month. As tenants move in and out, you would need to spend money to get the unit ready for occupancy. Apartment tenants tend to have higher late payments history than other tenants as they are more often have a tighter budget. If you don’t like the headaches dealing with lots of tenants, you probably want to stay away from apartments.

I’m a fan of apartment buildings in desirable areas in the country, such as San Diego where vacancy rates stay extremely low.

Apartments/Multi-family

Apartments or multi-family buildings are usually the first choice for new commercial investors. Apartment management and financing is very similar to residential, and so new investors feel more comfortable with them. The main disadvantage with apartments, is that they are management intensive.

I’mjust in the process of working on my first NNN leaseback deal. A development company has a 7000sqft home (its SWEET) they built as a model home and now want to get it off their books but continue as one of their model homes, so they’re willing to let an investor assume the loan (at roughly 70%LTV) and then NNN lease it back so that they can continue to use the home. Best part is that they’re willing to pay a $25K preferred distribution to the investor at 12months for holding their debt! Almost a totally hands-off investment!

I’ve been doing more and more research on NNN leaseback deals and theres alot of them out there, usually with franchise companys, but can be VERY lucrative.

retail, office and industrial