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“Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.” The Bible – Ecclesiastes 11:2 This is good advice as long as you don’t get so spread out that you are doing too many things but nothing with success. It’s important we understand the […]
Investing in commercial real estate is a great way for anybody to make money. The fact of the matter is that anybody can get started in this way of investing if they are willing to do the work that is involved. Of course, commercial real estate investing has a lot to do with being able […]
America’s latest economic data is not helping the already tottering property industry and with the high unemployment rate again turning away prospective buyers from the market, realty firms would have to go the extra mile in order to promote growth in an industry already plagued by numerous woes.
Property marketing experts are in consensus that amidst the difficulties, aggressive marketing and effective networking would mostly keep many realty firms from faltering, which incidentally is the core strength of CPR Commercial LLC.
For all the Mothers out there, Happy Mothers Day!
…ok, on with the story.
Some time ago, I owned a 30 unit apartment complex. On top of that I had about 43 other
rentals. Single family, duplexes, Tri-plexes…ect.
For what ever reason about 3 weeks into a month I found my-self with 16 empty apartments.
I said to my-self “What the $&#*$# I’m I going to do? I knew with 16 empties I would be in the
red and may have to borrow from my savings or …?
I believe things always happen for a reason and people will appear in your life when you are ready to
The next day I was at the apartments when one of the tenants introduced me to his uncle. We got talking
and I found out he was visiting from Savannah GA. for a week.
He starting asking about the apartments and he was wondering why there where so many empties. I said that I didn’t
know and that I had marketing very hard just not getting any calls.We talked for a while then said are good bye’s.
After dinner that night I got a call from that same tenant, he said that his uncle would like to meet me for coffee
the next morning. He wanted to see if he could help me get some of the apartments filled. I was very happy but kind
of suspicious at the same time. But, I agreed. Oh, he also said bring 10 blank leases with you.
The next morning I met with the man he bought breakfast for me which made me even more suspicious. I can be very blunt,
when I see that something is going in the wrong direction. So, to save us both time I just asked him why he was doing this?
Commercial Real Estate Syndication: Property Selection and Purchase, Part 1
So what is the best kind of investment real estate? In the process of putting together your groups, you’ll come to realize that not all types of real estate are “created equal” from an investment perspective. Here is a breakdown of property types and their attractiveness as syndication investments:
LAND: Including Remote (currently unusable), agricultural, and “pre-builder” land.
1. “Remote” land is held for a long period of time with the expectation that growth will increase its value. Unfortunately, it’s highly risky and provides no current income for investors. The biggest down side is that investors would have to make periodic contributions of capital to cover expenses for taxes, insurance, and possibly loan payments.
2. Agricultural land is used to create crops for sale. It is essentially unimproved land used in a business and its value is derived from the ongoing operations of that business.
3. “Pre-builder” land is subdivided and sold off to various builders who complete the end product, whether housing or commercial. The land is effectively inventory and its value is created in the subdivision process.
CONSTRUCTION: Including new commercial and sub-division projects, beyond the pre-builder stage.
EXISTING: Operating residential and commercial income producing property.
If we go by the list above, we’ll soon realize that as syndicators, we’ll want to focus our efforts on only one of the major categories. This would be income producing rental property.