Finding Commercial Investment Properties

[Ian Bollinger]

I currently own several long term rentals and the goal is to branch into commercial real estate in the next 1-3 years and I'm looking for recommendations on finding good properties with the potential to cash flow. I've used Loopnet in the past but I've found many listings are way outdated. I'm located in MD but open to something out of state as well if it's the right deal. 

It is my understanding commercial real estate hasn't been booming the past few years like residential has and this next year might be a good opportunity to find something at the right price. Hoping for some inputs and advice from those who have made the transition from residential to commercial. 

Thank you!

[Don Konipol]

Quote from @Ian Bollinger:

I currently own several long term rentals and the goal is to branch into commercial real estate in the next 1-3 years and I'm looking for recommendations on finding good properties with the potential to cash flow. I've used Loopnet in the past but I've found many listings are way outdated. I'm located in MD but open to something out of state as well if it's the right deal. 

It is my understanding commercial real estate hasn't been booming the past few years like residential has and this next year might be a good opportunity to find something at the right price. Hoping for some inputs and advice from those who have made the transition from residential to commercial. 

Thank you!

In my experience there’s ALMOST no instance where a broker brings a buyer a deal that’s all wrapped up and identified as a great deal.  To make a deal acceptable you have to make an offer usually well below the asking price.  99% of asking prices range from the high end of “reasonable” to fantasy land.  And the very few offered at or below “market” value are not easily recognized as such because on these comps are either not easily obtained or there are no good comps.  

Here’s a BIG difference between residential and commercial real property.  80% of residential SFR property that would be purchased for rental/investment is located in “cookie cutter” subdivisions, where homes in the development share common characteristics.  Makes it fairly easy for anyone to calculate probable market value fairly easily.  Not so with commercial property.  To purchase commercial property successfully the investor either needs lots of education/experience or must employ someone who has it.