200k liquid- multi family or commercial property

[Deepti Mandava]

Hi all, I am new to this space and although I have been passively exploring RE to improve my knowledge I haven’t invested yet and need some direction. I have 200-250k in liquid and I want to put that money to work. My goal is to go big but cautiously so I protect my capital and have a good cash flow. I am not sure if doing alone is a good idea so in need of some advise and opinions on the options and the best way to approach this so I set myself up for longer term. Thanks in advance.

Regards,

Deepti

[Joel Owens]

Well 200k to 250k in commercial is SMALL. Figure say in STNL NNN properties at 1 million you need 30 to 35% down plus closing costs so about 350k to 400k to own directly. Most stuff in 1 million range is in weak suburban or rural locations.

The higher quality assets run minimum 1.5 million and up in price for most strong suburban locations nationally.

Options are you could either join up possibly with other family members or business colleagues to buy something larger or if an accredited investor you might could invest passively into a syndicate.

An example if someone contacts me with 200k and can't add anything to it then rural type locations. If accredited they might could invest with me as a sponsor on some of the retail value add deals and be part of a larger project with more upside potential. If money is 1031 exchange money then TIC or DST's and investor has to qualify.

You might could buy a commercial retail condo for 200k down on something and own yourself. Sub 1 million is just very limited in commercial.