I ask because when it comes time to sell, I like having the option to sell to both investors and the retail market.

If you are running a retail business, have employees and contractors, do payroll, track inventory, etc., etc., it seems to be a fine tool.But if you are a real estate investor with a few properties to track, it's really painful.

If the seller's asking price exceeds the retail value, we may still entertain their price if favorable terms are offered.

Hi Tom, I purchase retail centers as well. 1.

@Tanner MartilloI would go with a variation of option 2 but with a high LTV but only if your relationship with the partner is very solid (like for life solid).At high LTV, retail (MLS), rent ready purchases in San Diego will have negative initial cash flow.  

They are cheap, good networking, and they will tell you who the good "investor" contractors are, those that don't charge retail for repairs because they work exclusively with investor properties.

Also, 6 months reserves is a great rule of thumb, and some lenders require that as proof as well.We do have an arrangement with Helix Mattresses where I can +/- 50% off retail with free shipping on all mattresses. 

Our Midwest markets provide the opportunity to quickly recycle capital (even if a client can only afford to do 1 project at a time, they could still potentially do 3+ projects a year), and also allows our clients to benefit from multiple exit strategies (the house can be flipped as a turnkey, flipped to a retail buyer, or held as a personal rental for positive cash-flow).

Meanwhile, deals are to be had with existing retail homes.

I am trying to find off market retail commercial deals.