Good commercial real estate bird dogs have a way of finding deals that brokers just don’t seem to come in contact with. They may bring you multiple deals that just don’t fit with your criteria, but that enthusiasm is what will bring you that gem. So give them a shot, all your investing is a little of your time – and that one deal may be worth a lot more than you think your time is valuable. Check out #7 on this list.
7 Tips for buying Commercial Real Estate
As the deleveraging of the US balance sheets continue, deals for sub-leasing office space have been increasing, and it makes sense for all parties involved. The current tenant is able to reduce his monthly cost by off loading unused space, while still maintaining control of that space if their fortunes should turn. Start up companies are able to find suitable areas to rent at better addresses, reducing their initial expenses and potentially putting them in an area that makes their business more visible. Brokers who arrange for these subleases think that may be losing out on a bigger commission – however my belief is that they are generating income where there may have been none, and if that start up takes off – guess who they will be calling to find more space for them. Succesful brokers have LONG standing customer relationships.
Sub Lease Office
By now we have all been hearing the news about the rebound in Florida Real Estate being generated from buying power in Latin and South America. Now comes news that the Canadians are stepping up to the plate as well. Doesn’t really feel like the Japanese invasion in the 1980′s on the US real estate market. However, international groups are clearly seeing value in the US market – maybe Americans need to dig a little deeper and quit being in a malaise that seems to be hovering over US business sentiment.
Canadian Hotel Owners
It seems that DC is finally realizing that they can’t support the US economy forever and they need the private sector’s help to make this apparent growth in our economy a reality. I believe this will open opportunities for property owners in multi family by giving them more choices to choose from.
Fannie & Freddie
RECENTLY I WAS HAVING A BAD DAY OF PROSPECTING FOR NEW BUSINESS WHEN MY 14 YEAR OLD SON MATT CAME HOME FROM SCHOOL AND ASKED ME WHAT WAS UP – I GRUMBLED SOMETHING ABOUT HOW SOMEDAYS MAKE YOU THINK IS THIS GONNA BE WORTH IT – HIS REPLY WAS A QUOTE FROM MICHAEL JORDAN – IT NOW HANGS NEXT TO MY DESK !!!
I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed.
I’ve failed over and over and over again in my life.
And that is why I succeed.
I have a pretty warped sense of humor – so you can understand why I can’t wait for Memorial Day Weekend !!!
If you are one of those real estate investors who feel they can pick the bottom in the market and still have not deployed your capital, you may want to start revisiting your top deals that you have a still a chance to buy . One of the greatest distressed cycles is heading for completion and to be honest with you, no one can pick the exact bottom, it just turns out to be luck when you look at in the rear view mirror.
Distressed Commercial Real Estate
Here is a great article that goes over the key characteristics that top multi family markets all reflect. Very interesting that it seems the top cities are mostly out west. Whatever market you are in, this is a tool to analyze your backyard and then concentrate on potential listings and showings there to maximize your sales efforts.
Multi Family Stats
The self storage industry is one of the most highly fragmented industries in the country with 85% of facilities being owned by operators who only have one or two locations. Below is a soundly written how to buy a self storage facility. It is very good information for those 85% who may be looking to enter the 15% territory. Remember, with debt available for solid borrowers right now at rates close to historic lows, now may be the time to get a solid cash flow investment into your portfolio.
How to Buy a Self Storage Facility
In one of the best signs yet that shows the lending market for commercial real estate via CMBS loans is growing was recently published by Trepp. The Mid Atlantic market led the growth with the largest dollar volumes of closed loans. Cap rates for the top 5 major sectors ranged from about 6.5 to 8. Loan to value on new issuance was in a range from 55 to 70. To me the most surprising statistic was that office building origination was the leading category in origination volume.