The Easiest Commercial Property for Beginners to Own 

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I think ANYONE who is interested in commercial real estate need to investigate getting financing before they jump in. I am a residential real estate investor, but when I bought my first commercial metal building in Industrial zoning I hit a brick wall with financing. I could only get a 5 year ballon mortgage. I was told this is how commercial real estate financing worked. I know not to do ballon mortgages since I don't have a crystal ball. How I got around this was a SBA loan on the building. I personally like residential over commercial for a bunch more reasons.

I love this space. Great video, I like how you break it down.

I am building a 85,000 sf flex space project right now. Getting the pro-forma to work in this high-interest rate and high construction costs environment is harder than it was portrayed here

Good video an so true. My first business was a coffee microroastery and getting flex space that is affordable and can be permitted for food production is hard. IN Tampa we had a surge inlocal craft food and these spaces became $. I found one across the bridge in St. Petersburg and I spent years in the space observing other businesses. I quickly realized, that this is the business I should have been in. 1500-2000 sq ft flex spaces are incubators for small business for everthing from food, services, light manuf., logistics, retail/wholesale. Construction is straightforward. If I have the capital in the future it would definitely be the commercial project of my choice-having been a tenant myself

That is certainly something to look at. Thanks for sharing.

love the channel bro, nothing but game

Nicely presented info

You are da man. Love this. Now I am going to pursue developing flex space

Hi, I just started watching your channel. Sounds like good stuff! thanks

I like this I like what he said about the tenants great information

Great content !

Thanks for the details and explanation..😊

This was great information for me. I'm new to real estate investing as a newbie and planning to provide rental properties for the VA or the military. This offered a better perspective on commercial investing.

Great video !

Dude is on point. This is the game I played. More money in your pocket if you develop, good deals are "rare", Commercial loans cost more short term with balloon payment, I could not get one had to non doc loan 2 houses and still did not have enough money to finish. Luckily I was able to sell my house at the time, made 100k in one year. Project was finished in 2007. Just sold at 100% profit. Just 1031 to a 9% cap rate with 5 year leases. Did alot of research. Get a rood inspection as this can numbers fast. Nothing is easy but this is doable but you need money to start and the land.

Building from the ground to completion, great video thanks for sharing

A great glamping space is relatively easy and depending on what you paid for the land could be very profitable.

My goal for this first quarter is to understand everything you talked about in this video.

Def attending his event to meet like minded individuals. Multifamily is saturated with gurus which more will come. Industrial all the way.

Thank you

Great video. I have been researching this area and want to do my own projects

thanks

I'm so curious about building a 10,000 sf building for indoor pickleball courts in Asheville, NC. I wonder what the cheapest structure is that's suitable for that use case.

Thanks for this insightful video. You have a calculation mistake in there though: 43,560 sqft * 5 USD = 217,800 USD (not 240,000 USD as you mentioned). In my own plot acquisition research, I am aiming at paying no more than roughly 100k for 1 acre.

Does anyone has real experience with building these flex spaces inTexas?

I wonder how its labeled in terms of zoning. Ill check with the county..

Now this is interesting. Interested in how to get situated to start from nothing. Then as i started typing this comment i saw the ending vid link for beginners 😊 awesome. Would like to have 3 buildings in 5 years, build the retirement fund.

I can attest to this video. My dad has bought over 100,000 sq ft of industrial flex space and tailored it to multiple small business tenants. He’s rolling over $800k per year now.

Just curious who do you recommend for building manufactures on the east coast?

what type of tenant fit out are you including? If a tenant want's more office than warehouse who pays for the fit out?

flex space depends on zoning, but if it is outside major urban areas alongside highways for easy access it is viable.

Here in Florida I’m looking at 300k per commercial acre and that’s on the low side

There is a HUGE demand right now... I walk past all those vacant warehouse lots... The good ones converted to garage storage systems, lmao. Unless your warehouse is middle of a city, you aren't gonna even be able stay afloat. All these vacant warehouse charging only $500/month and add free electricity lmao!

Did you address build-out costs for each tenant and I just missed it in the video? I would think those additional costs would quickly erode the gains on resale after being leased-up.

Buy land, hire construction company, get all paper...it is not the investment in commercial property, it is the development business.

Generally, commercial is non-residential buildings that don't contain warehouses. They mainly contain office space. Industrial property are also non-residential buildings that contain mainly warehouses. Knowing the difference between these are important because commercial are already in a recession and prices are about to get hit really hard. Couple that with remote working technology, office buildings may never come back to where they were before. Industrial are at their opposite. That's why these metal building fabricators are so busy.

If I do end up buying commercial land and there is a building, would I be able to knock it down and recreate the building? Because I have a certain way I would like my building to look (I’m 14 btw)

How can I learn more about this and what is a good amount of capital to start with?

Nice video, but...I think the major issue is on raw land you will need to own it 100% no financing, for most banks to finance the development part. As for the development funding, you will probably need to have a competent partner who has a track record or a very good contractor with a history of building these, for a bank to lend you the construction loan and possibly still have to personally guarantee the loan. Can't say it cannot be done but those are probably the major hurdles. I saw your comment on 1031 into the raw land, I would imagine that can be done as it's still an investment property, and total investment costs (with the development) would have to be higher than the building sold. But the thumbnail says "Best for Beginners"?

Does flex typically include AC?

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

When building a flex space. What is the recommended minimum and maximum sqft per unit?

Anybody have a link to the full podcast or know the other guys social media handles?

Oh wow 😮😮😮

I wonder how many of these metal buildings you put up your numbers seem to be highly optimistic. Have you factored in infrastructure cost you’re going to need on an acre of land. Most cities charge tens of thousands of dollars to hook up to the sewer and water or you’re gonna have to put it in your own septic system, and water-well. most urban areas are going to require you to put in sidewalks and street lighting that needs to be engineered. In fact you’re gonna have to submit engineered plans in most cases.have you factored in the cost of three phase power hook up being brought onto your property? That can be quite expensive and here in California PG&E has a one-year backlog on that and PG&E, won’t even except an application until you’ve got your building and planning permits issued by the county or city. also, if you’re going to use it for anything other than storage or industrial, you’re going to have to figure out some inside finish, which can be costly as well. Have you factored in handicap egress? I’m actually in the process of putting up 100,000 square-foot metal building in Santa Barbara county and I’ll tell you a few other things that I’ve had to contend with. Perk test, parking lots, soil, compaction and engineering, traffic, mitigation, plan, stormwater, mitigation plan, landscaping and vegetation plan, exterior lighting, electrical power offset agreement, biological resource plan and wildlife corridor‘s there’s more but that’s this is off the top of my head. I know Santa Barbara is probably more restrictive than most of the rest of the country but you’re gonna have to plan for this type of compliance. Lastly, in your video, when you’re speaking about pickle ball, you’re showing an image of a squash court?

What type of zoning does the land need to be?

I was intrigued so I watch the video but when he said 300k down I was like whoa. Think about it how many people have 300k to build a commercial building? I think this is why you said there are not enough being built. So for me it makes sense to start with residential real estate until you can build a nest egg to possibly try commercial. Big risk tough!

You mentioned pickle ball but the video showed racquetball lmao😅

Who makes the buildings? Anyone know ?

Rates are 8+? Why would 7% cap make $? Inflation makes it worse, not including food fuel

Yep,,

Will there also be more opportunities when the commercial loans blow up in the next 5 years? Or will it be more difficult?

how do you lease and break the space up .

Iam in warehousing for 25 years, just started a new projects good opportunity to invest. 😉

What beginner would be able to finance a $340,000 down payment for this theoretical flex-space deal? I guess for commercial real estate the bar for entry is much higher, but surely there are other commercial properties that can be purchased with less money down, that's more approachable for beginners.

This is great content man. Great surface level analysis but mannnn is developing risky right now

I would like to get into this. NNN :) instead of residential rentals

Are you factoring in soft cost?

Is it beneficial to pay cash?

Is this possible to do with $20k saved up?

Is this application to UK?

Which is hes channel?

Is it me or is $5 per sq.ft expensive for the land only?

$5 per sq ft for land is over $215k per acre. Seems really high, even for full developed business park land. Can you explain/confirm?

Are you currently developing these assets?

That wasn't pickleball

i need a home first

Do you need to employ the services of an architect for designing these? Can I just get fiverr sellers to develop drawings I can send for approval?

I remember build cost of $80 sqft costs for residential in NY. My god, I'm getting old!!

$5/SF is under $220k/acre

Your numbers don’t make any sense to me. You say $190k profit, but that doesn’t include commissions, closing costs, or taxes. If you sell this property in your example, your net is around $100k before taxes. Figure in 30% taxes, and your net is $70k. A $70k return after $300k+ invested and two years is not worth all that risk. Am I missing something?

boomers had residencial, we need to make comercial our thing, open a business, make profits and sell it.

Unfortunately, selling the property multiple times deems developer as an operator and avoids capital gains treatment on the sale of the asset versus refi and holding asset which is not a tax event. Need to go to after-tax Analysis to understand the negative in rapid sales.

If it’s a great asset with such a high cap rate why sell?

🤔 Hmm...

ohh boy. this is exactly what George Carlin was sayin: gas stations, dirty magazine's store, bodegas, malls and super malls, chain food and everything in between. a nation of consumers. soon it be warehouses everywhere.

So my question would be, how do I do this without using any of my own money.

Paint ball!

commercial real estate has tenants, along with all the problems that can come with tenants.

informative video , We have a commercial real estate mapping software , which can save lot of time of Real estate professionals.

Too bad this isnt about UK market

An acre ?…. Lmao. I need advice for Long Island .

said pickleball but show a clip of racquetball

House 🏠 $465,000 Actual value: $45,000 I have always felt the real estate market is erroneous as well as asinine. I haven't bought one in years, but I do remember the frustration of agents attempting to use status quo selling points that have no relevance on my buying decisions.

so its a new name for warehouse space.

pickle ball... so you show a video clip of guys playing squash in a court

The cap rate of 108800 did not include the 240k cost of land.

You all know it’s not cheap to build, finding renters is a whole other story. I would avoid this guys advice, but I’m old and not stupid.

There’s something about having walls between you and your business neighbors when they start a fire that would keep me away.

No thanks

Man...why does any "Real Estate for Beginners" involve $340k down payments. That 5 years income for me. Im sick of being poor but every real estate investment path involves 20% down or having enough personal income to buy a second home. Im trying ot learn this stuff to afford a 2nd home.

Years ago, I remember a guy buying buildings in industrial areas for internet porn spaces for individuals to rent for broadcasting. He made dozens of small rooms that people could rent. Before it became big time home based...

Land for $5/sq ft!!! If buying 1 acre, that's 43,560 x $5 = $217,800. Too much!!!

Eh. 43560 square feet at $5 a square foot is $217,800. Not $240,000.

This is in no way the easiest way. You would need at least $1.4 million to do what is described in this video

Not great numbers at all and a good amount of risk complicated zoning.

Well, I guess you guys didn’t know you missed the boat. Commercial real estate is about to go through extremely hard times. Try to sell something else.

Just call this a commercial. I am looking elsewhere as I do not do business with people that don't respect me.

This is an infomercial