Commercial Real Estate Investment Articles

The only reason to buy a single-family home as an investment is to make money with it. And you can’t make money if you don’t have a tight handle on your expenses. And too many buyers do not put sufficient padding to cover the costs of converting a home from resident-owned to a rental property. Here are some things that buyers miss.

Benjamin Franklin once said that “diligence is the mother of good luck”. This is as true today as it was in 1776. When you conduct proper due diligence, you remove the risk from your investment’s success or failure. So what are some of the overlooked aspects of doing outstanding due diligence on a single-family home investment?

Buying real estate at an unpaid property tax auction can be extremely lucrative – if you do it correctly. But many buyers make significant errors that erase any profitability and can even lead to losses. So what are the top four things that any buyer needs to avoid at these auctions?

Webster’s defines a duplex as “a house divided into two apartments, with a separate entrance for each”. That being the case, why not be able to convert those two apartments back into a single house? It’s an issue that many duplex owners think about.

Of all the real estate sectors, “triple net leases” stand unique in their structure. They were originally designed to allow large franchises to utilize and control property without having to invest significant capital, with the intent that they could use the money that would have been devoted to real estate to further expand their business. Today, triple net lease users range from private enterprise to even the U.S. post office. So what is a “triple net lease” and why is that an attractive real estate investment concept?

Should you consider investing in a Bed & Breakfast? This is a question that many people across America are asking themselves as they strive to find a higher quality of life with less stress in an uncertain world. The answer can be somewhat complicated, and is completely personal in nature. How can you decide if a B&B investment is right for you?

Triple net leases are a great way to lock in a safe, fixed return on a property. But they also have some unique risks that should always be considered before investing in this asset type. So what are the traps to watch out for that can damage your investment return or even return of principal?

There are many ways to approach people. Entire books have been written on the subject, and anybody in sales will be happy to give you their personal opinion. But in over 30 years of building up one of America’s largest real estate portfolios, we are firm believers that being direct is the correct path. Telling it like it is represents a refreshing change from a politically correct America, and sellers appreciate the honesty and time efficiency. So how does that work?

Real estate investing in built on leverage – the concept of obtaining debt at an average of 70% to 80% of value. While many real estate investors think about the property, other focus on investing in the debt side of the business. And the best of this debt is called “first-lien” which means that, if the debtor does not make the required payments, the note holder takes back the property. So how does this sector of real estate work?

How do you properly set the rates at a marina? It’s not just guesswork. Instead, there’s a methodology that yields the correct rent based on market levels. So how do you do it?

In many ways, the biggest casualty of the rise of the internet has been the retail sector. When a consumer buys a product on Amazon they are effectively electing not to buy that item from the local retail store and that lowers revenue for the merchant. While big malls are suffering mightily, the strip center is not nearly as impacted. Indeed, the internet has little avenue to harm the successful strip center property. Why is that?

It's a competitive world out there. There are many investment options. So why should you invest in real estate? Well, real estate has some unique qualities that have made it one of the top investment strategies in the U.S. for hundreds of years. Its benefits include:

If you’re new to the investment or house flipping space, and you haven’t closed a deal yet, you aren’t alone. You may be wondering how it’ll go. Will it be smooth and seamless, like it sounds when you listen to professionals talk about it? Will it be a nightmare? Will you be nervous, or excited? It would be nice to hear about the experience other first-timer’s had, so you could learn from them, or set your expectations a little better, right? Well, now you can. Here are the stories of a handful of investors, and a summary of what you can expect when closing your first deal…

One of the ways to earn huge profits in the real estate market is through flipping houses. Like any investment endeavor, however, it involves lots of work and risks. It is important to approach this carefully and with as much knowledge as possible. So how exactly do you make money from buying houses, renovating them, and then selling them down the road? Start by keeping these best practices firmly in mind.

Lots of people try to create successful real estate investment businesses. Few make it long term. Few see real success from their business. So what’s the difference between those who fail, and those who succeed? That’s what I’m exploring in this article, guided by the help of some established investors. I asked a few investors running their own companies what makes someone successful. And here’s what they said…

It’s no secret from people who know me that one of my biggest mentors for business is Seth Godin. And some time ago, I learned a very simple, but very important principal from him. That simple principal is this: As a business you only need two things: 1) for customers to know you exist, and 2) to have them trust you. Now, rolled up in those two things are a myriad of other details that we tend to spend most of our working life focused on: our offering, pricing, brand image, website, lead channels, etc. So I’m not saying that business owners shouldn’t think about those things. But what I am saying is that as business owners (or in your case, as investors); the tendency is to overcomplicate things and get flustered trying to think about how to increase sales and growth. Seth’s summary of those two things, to me, is a beautiful way of simplifying things. Instead of spending all your time searching for “2018 marketing hacks” or watching the latest guru show you what’s working this year, you’re zooming out and focusing on a principal that’s timeless. Think about it, you could be a blacksmith in colonial America, or a self-driving car company in 2025. What you need is customers to know that you exist (meaning, know you who are, and what you offer), and then you need them to trust you. So, in a future article I plan on doing a deeper dive into some of the specific marketing channels available to investors, thereby helping you figure out a plan for #1: getting motivated sellers to know you exist. That article will be a bit more practical and “current”, but if you don’t understand the foundations of this principal, you’re going to miss the point, and be someone who can’t figure this out on their own in the future.

As more and more real estate investors look to make the most of online marketing channels, one thing becomes clear: they all need a website. If you’re new to investing, and looking to start your business, but don’t yet have an online presence, there can be a lot to consider. Actually, it’s not just the “newbies”. You may have a successful business, but still no online presence, because you do things all through word of mouth and mailers at this point. If that’s you, and you don’t have a website yet, I hope this article will help you decide on the right platform for you. At this point in my career, I’ve had experience with most of the major platforms: WordPress, Squarespace, Wix, Investor Carrot, Lead Propeller, and even coding websites from scratch. My goal with this article is to talk about some of the things your website needs, some things it may not need (although offered), and some general best practices to getting up and running. In the end, launching a website for your real estate business is going to depend on your ambitions, brand, target market, and more.

My business partner and I are the 5th largest owners of mobile home parks in the U.S. But even today, with hundreds of properties bought and sold, our attraction to real estate remains unabated. Here are the reasons we got into real estate in the first place:

So, you’ve decided to take the plunge into investment real estate. Your next step is to find an investment property. This is sometimes easier said than done. During a seller’s market, investment property selections may below. If you’re looking for a duplex or another special consideration, finding exactly what you want is challenging. Good properties typically sell within 30 days of being listed. That means you should be open to different ways to locate that perfect investment property. Real estate auctions are one option that levels the playing field and allows you to compete against anyone wishing to buy the home. However, you should be aware of a few things before purchasing at a real estate auction — like these six tips

If you’re reading this, you are more than likely either an investor or considering building a rental portfolio of single-family houses. Owning a rental property – or a portfolio of properties – can be very lucrative. The market has exploded for rental properties all across the nation. Investors have thrown themselves into the industry and have dedicated themselves to learning vital lessons about buying properties, finding tenants, and managing the entire process. If you’re new to investing or merely trying to get a different perspective, we want to walk you through FIVE KEYS TO MASTERING RENTAL PROPERTY!

Just a few years ago, some financial experts made the claim that only 1% to 2% of all forms of money used in the United States was physical by way of dollar bills or coins.

If you’re an experienced real estate investor, you have to give some thought and effort, from time to time, as to what types of investing strategies you’ll likely use in your investing business in order to be most successful.

Interest rates just reached four-year highs in the first week of February – with the national average for 30-year fixed rates hitting 4.32%.

Have you ever had a tenant leave in the middle of the night – or the middle of an eviction? Did you ever wonder what to do when the tenant abandons the property?

Here’s a quick summary: This self-storage property was a Bank REO in Kern County, CA. I was familiar with the area and knew that this was a great value-add opportunity.The property consisted of 100 units on 3.5 acres and was built in 2006. It was under-performing at 65% occupancy prior to possession, and had an NOI of $35k.