Your Financial Pharmacist YFP Real Estate Investing 42: How a Pharmacist Bought a Five Million Dollar Strip Mall
Jan 29, 2022
42:59
Tanh Truong discusses the differences and similarities between the residential and commercial real estate spaces and why he purchased a five million dollar strip mall. Key Points From This Episode
- An introduction to today’s guest, Tanh Truong, and his five million dollar investment.
- The building’s location, size, tenants, and price.
- How he discovered the deal on a poorly marketed website.
- The two anchor tenants: Dollar Tree and Loman’s Furniture.
- What led him to consider investing in commercial property over residential homes.
- How cap rates are used to measure how well a property is doing.
- Why a higher cap rate usually means that a property is operating well.
- Which cap rate you should look for and what you should base this on.
- The total expenses involved in the five million dollar deal and what this translates to.
- How bringing tenants into a space and getting the rents up increases the value of the property.
- How the deal flow differs between single and multi-family property and commercial property.
- How Tanh had to leverage his partners in order to qualify for the loan he needed.
- Why traffic count is important for your plaza to actually succeed.
- Navigating the due diligence phase in commercial investments.
- Why he sees his role as a landlord as helping his tenants to succeed.
- How Tanh feels about the future of cap rates.
- The typical division of ownership among partners.
- Why Tanh is choosing to focus his energy on the commercial realm.