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Updated over 6 years ago,
Commercial Real Estate Hacking?
Been doing a lot of reading about house hacking and using the BRRRR but I already like the house I live in and don't want to uproot my family (I wish I'd read more on it before we bought the house we're living in right now, oops....) and then it occurred to me that because I own a business I should do commercial real estate hacking.
The more I think about it the more it blows my mind about the probably half million of business revenue I've thrown at renting various commercial spaces over the last decade. Not to mention hundreds of thousands in building infrastructure upgrades into a commercial building that wasn't mine! Ouch... That could all be equity in my company instead of lost revenue.
Throw in the potential for buying extra space and leasing it out to other businesses to create extra cashflow. Seems like an obvious route to me. The possibility of using my businesses financials as well to help qualify for the loans... Etc. Add that to the fact that my business right now has outgrown my current space and our biggest limiting factor is lack of space. We could easily triple our gross revenue in a year if we had triple the space, and we would own the building. I could probably even raise some venture capital for the down-payment.
The biggest issue is I've never done any real estate deals before and I get the feeling its not going to be an easy path to start out on. But hey, the only way to eat an elephant is one bite at a time.
Basically my question is has anyone done this before? Anyone in commercial real estate have any pointers, books, ideas to send me in the right direction? You don't need to say I'm totally crazy to try and skip small multifamily properties and focus energy on commercial real estate... I already know that part.
There's no question I'm going to make this dream a reality. I just need to figure out the how.