How to find a good commercial broker

[April Chim]

Hi BP Community! I am new to commercial investing and would love to hear how you found your trust worthy commercial real estate broker in your area and how you were able to establish win-win relationship. 

[Joel Owens]

Hi April,

I look at between 500 to 1,000 retail properties a week across the country in various states for clients. Different states are cycling at various times for cap rate but they also have different growth drivers.

If you do not have the experience rather than buying a 2 million apartment building that is overvalued you might want to invest with sponsor on larger projects. The larger projects vale add might have more long term equity upside and you get to see how they turn around a larger property. The larger properties when exiting you can usually resale for lower cap rates as loans are competitive for the buyers purchasing them. I am talking about 10 to 20 million or higher type properties.

Unless you are buying really high end apartments for say 12 brand new for 150k a door class A then not really passive. At 2 million there is just not enough doors to find something really high cap rate but more hands off. You need scale in MF for that. If you invest with sponsors then you are passive and they do the work etc.