All Forum Posts by: John Acheson

How much commercial research have you done?

How passive? At the top there's triple net commercial real estate investing i.e. shopping centers. Think renting to StarBucks where they pay for maintenance, insurance and taxes and you just get paid then pay the loan. I suggest researching from the top down to the bottom which would be residential/apts that you manage yourself. Don't forget about server farms, warehouses, mixed use, office, retail, towers, parking lots, fuel stations, car washes, repair shops, etc. It's not just apartments and houses if you can drown out the internet guru noise.

But most people start at the bottom and never reach true passive commercial because they end up with so many doors to manage. Think 5-10-15 years to retirement and what you want to do with your life and what kind of real estate will make you happy.

I could die happy controling a LLC with a small shopping center and a few doors if it had triple net leases :) I won't be happy having controlled a few lower end apartment buildings... What did Bezos say? You'll regret the things that you didn't try most.

Thank you both for your detailed replies. How can a newbie with low net worth & low income get started in CRE? Does it help to have a seasoned LLC that already has business credit? Is partnering really the only way? Most of the advice I'm seeing online focuses on apartment buildings but I'm not attracted to raising rent as a strategy and managing tenants & toilets as a job. I would prefer to make a business plan to target a small grocery store property.

Business or Residential or CRE?

SCORE volunteers can help if

you're having trouble finding

a mentor, they respond :)

Have you thought of adding LLC credit to your tool kit

so that you can attack CRE if an opportunity arises?

740 will fly through any CRE deal if the target is good :)

According to Warren Buffet and many gurus the best return is education.

I think I read somewhere that Buffet reads 400 pages everyday!

I say the best price is FREE. Building business and personal credit is FREE.

Starting a LLC can be FREE with bank bonuses. Learning can be FREE.

I would take a little bit of that money and

1) start, grow, season a CRE favorable LLC to excellent credit

2) make as many contacts and spend a little learning CRE

3) grab cash/rewards bonuses on the way as you build two credit profiles to excellent

then in the 3rd year after you have tax returns

find your 1st CRE deal after this market cools...

This plan could be the most powerful $500 you spend in your life!

Mark, I would put the condo on the market, start, deposit the proceeds into & season a LLC to excellent credit while making contacts & researching CRE. Take the elevator past residential and go straight into the big leagues at your age and you have a chance at becoming a multi-millionaire. How did Kiyosaki, Trump, Cardone, Peter Harris, etc. all become multi-millionaires? Not by what they teach but what they did in CRE! Basically, apartments buildings but there's a whole another world BP doesn't talk about much like charging/gas stations, server farms, parking lots, office buildings, towers, motels/hotels, shopping centers, etc. My dream is to retire with a small shopping center and I may never get there because I'm starting out in my 50s. But with your capital, credit score and an entity, you could definitely go big. Research triple net leases as your holy grail goal, i.e. renting to a tenant like StarBucks or something! They pay the insurance, maintenance, taxes and you collect a check, pay the mortgage and earn true passive income. Again, triple net is the holy grail any investor would jump on!

I'm just getting started in CRE research and am focusing on understanding traditional financing. From what I understand so far, the asset matters more than the borrower's income BUT many lenders have a "net-worth" requirement. Curiously, if an investor has LLCs with business credit such as credit cards, LOCs, etc. when the lender pulls the borrower's credit do they also pull the LLC debts to calculate personal "net-worth" or do they just use FICO data, etc?

I would put it on the market, boost a 720+ FICO & build a LLC with A/B credit and get ready to use the town proceeds to put down on your 1st CRE deal you are comfortable with.

I've been investing in longs for 15 years

and as of 11/17/2018 I've just

completed 3 shorts for the

1st time in my career :)

Thinking about shorting DR Horton & Zillow.

Would you short Zillow or RedFin if you had to pick one?

ZE has almost a 60 P/E and RDFN doesn't make a dime...