I’m a novice investor who live in the metro atlanta area and is out of work with bad credit. I have purchased some r.e. course over the years( carlton sheets, dave lindahl to name a couple) but have not done a deal yet. I have recent located this vacant deptartment store building that i would like to get a master lease option on and rent out space to people so that they can sell there products(like a flea market). I’m not sure how to approach the owner, how to determine if this is a good idea, how to proceed with the ouwner if they would go for the lease option etc. etc. etc. I was wandering if there is any person or resource available to assist me thru a deal or to to help me get the confidence and experience to become an investor . HELP!!! :help
What is making you want to start with commercial deals instead of residential? What makes you want to start REI while you’re out of work and have bad credit? Confidence should be gained thru knowledge. If you properly educate yourself, you should become more comfortable with the thought of doing your first deal. You’ll also feel more comfortable when you have money saved up. What are you doing to support yourself now? That should be your first priority. You can still learn along the way, but I think you should be an aspiring investor for now rather than becoming an active investor. Get your own finances under control before you start doing deals. If you don’t, the results could be disasterous.
Write up a business plan, submit a letter of intent, and make sure if you can’t go through with it, you can back out. I’d try and find the tenants to sell their goods before you start doughin out the cash for leased space you can’t do anything with.
Most flea markets I know of are outdoors, but I’ve seen a couple indoor ones too.
Really depends on the area too, most flea markets are either in the outskirts, or in lower income areas. I think this might be a bit too ambitious for starting out, you got the Dave Lindahl course, do his system and don’t try and reinvent the wheel for now, once you got stable cash flow, then you can afford to take a small leap of faith.
Good grief, does anyone join this forum that actually has a job and decent credit? I’m generally a positive person, but man alive Tony, do you have any idea what the current real estate climate is like? With no experience, or money, or credit, you want to get a master lease on a dark department store and try to sublease it to flea market renters?
In case you haven’t noticed, most of the fly-by-nighters are out of the real estate business. Those that got lucky on a few deals eventually ran out of luck and are back searching for employment.
IF you want to make it long term in this business, here’s my advice -
- Slow down
- Find a job that pays U.S. currency
- Fix your credit
- Network
- Do a small residential deal
- Repeat
- Move on to something bigger only when you feel confident to do so
If you want to be involved in commercial properties, I would recommend a different path than what I’ve listed above.
Hello,
I am John Revl from Mount Sinai, US.
Looking for buy a house in Mount Sinai any advise
Thanks,
John Revl
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Yeah man, slow down the truck here. I don’t think you need to start with residential (I didn’t) but you do want to start smaller and work up to this. What you are talking about is very tricky and could be very capital intensive (that means expensive to a banker) until you locate enough vendors. We have building like that in the neighborhood (not mine) and I agree with Keatonus that flea markets are generally in economically depressed areas or on the fringe. The reason of course is because they are not big money makers. Finally, I have had tenants that have tried to “upgrade” to a brick-and-mortar location after being on the flea market circuit and I have to tell you that these are not “quality” tenants. They are mostly nickel-and-dimers with no margins and no way to make their nut each month outside of selling junk.
The reason I say to start with residential is b/c many of the basics apply to both sectors, BUT with residential you can make money without spending several hundred thousand dollars. You usually have to spend at least $500,000 to get a decent commercial property (again generally speaking). It’s just not a good idea to try and force something to happen on the commercial side unless you know what you’re doing b/c it will most likely end in bankruptcy…
It’s one thing to rent a small residential unit. It’s another to try and get a long term lease on a 20,000 S.F. warehouse. Yeah, commercial and residential are similar in some ways, but they are far from the same…