All Forum Posts by: Tanh Truong

Networking at your local REIA's and maybe trying facebook pages

@Henry Clark if you have them make this into a blog, I'm sure they'll get you a cap 🤣

In these forums is a great start. I always see @Ronald Rohde and @Henry Clark posting knowledge bombs and have learned a lot from them. 

Podcast: Best Ever. Focuses a lot on commercial. 

Aside from that, IMO the books out there really only touch the surface of commercial real estate. I'm sure you'll be able to find info via blogs and websites about commercial real estate. Another best way is to find a mentor who's doing it and/or find a mastermind. Disclosure: I'm a part of a commercial mastermind, and don't have any other affiliation with them. Happy to elaborate on my experience thus far. 

I agree with the BOV. You could also try going on Crexi for your area and looking for properties similar to the one you're leasing and see what the average cap rate and sale values are. 

YES you can! Here's how I did it from a high level:

1. Acquisition: found four pretty decent deals - all non-residential commercial deals. These all came from scouring listings (i.e. finding mis-marketed deals), relationships, and off-market direct mail.

2. Structure: structured the partnerships accordingly based on what everyone is bringing to the table. 

3. Value add: out-lot creation, lease-up, increasing rents to market, exterior renovations.

4. Result: forced appreciation! 

Disclaimer: properties are still held.

I am not familiar with the area, but first I would check the zoning to see if it allows for warehouses/flex base. If allowable, I think the next steps would be to communicate with the zoning jurisdiction, or city council for the next steps. If not allowable, you would most likely have to apply for a variance. I would imagine it would involve architects, attorneys, civil engineers and surveyors to get you a plat drawn. Keep in mind utilities as well. 

Thanks @Jack Mawer!

@Ronald Rohde we have a few banks that we've built relationships with along with brokers who help us secure financing. Generally, we're getting 80-85% LTV recourse debt. Hope that answers your question.

This is a great topic of discussion as I've been wondering the same thing myself. 

I definitely think it's an untapped area, but there's definitely challenges and different nuances in commercial versus residential. From a residential perspective, it's certainly a easier point of entry (ie. less EMD, simple marketing, less sophisticated, less time). With that being said, when we're looking at commercial properties there's a LOT more due diligence that goes on that many 'wholesalers' lack and a lot more moving pieces (ie. capital, lending, etc.).