Commercial Real Estate Investing From A-Z

Welcome back to Best Commercial Retail Real Estate Investing Advice Ever! Today we’re going to be learning the questions that I ask a seller’s real estate agent after I take a look at a property on Loopnet and think that this could be interesting. You don’t necessarily need to ask all these questions every single time, but it’s a good idea to go over most of them when you call the seller’s real estate agent. Here is the step-by-step guide for your homework in today's episode: https://montecarlorei.com/questions-you-should-be-asking-the-sellers-real-estate-agent-when-interested-in-a-property/ A brief breakdown of the questions you should be asking the seller's real estate agent is: 1. Introduce yourself 2. How long has the property been on the market? 3. What is the potential you see for this property from an investor's perspective? 4. Are you local? 5. How did you come up with the price? 6. Who is the seller and how long have they owned the property? 7. Is there any known contamination in the property? 8. Does anyone have the right of first refusal (aka ROFR)? 9. Are there any easement agreements? 10. Please send me the rent roll. 11. Is the building historical? 12. Has the building been retrofitted (if older building)? Do you have any estimates to retrofit the building if it hasn't been retrofitted yet? If you're finding this podcast useful, make sure to subscribe to continue learning about commercial real estate investing, and if you can please do me a favor and write a review since we are just getting started, that would be wonderful. You can contact me here: https://montecarlo.home.blog/contact/ --- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

Welcome back to Best Commercial Retail Real Estate Investing Advice Ever! Here is the step-by-step guide for your homework in today's episode: https://montecarlorei.com/what-is-a-cap-rate-and-what-should-you-be-looking-at-on-loopnet/ In this episode you will learn what is a cap rate, which is a variable rate that varies per property, and is determined when you are selling the property. As a buyer, you will be looking at various cap rates, and the very basic explanation is that it is the net income on the property divided by the price of the property. For example, there is a property for sale for $400,000 and the cap rate is 8% – this means that your income on the property is $32,000 per year. There are other intricacies about cap rates when you are selling the property, but what you need to know is that cap rates can vary greatly. It can vary by location (state, city, and even where within that city!), by tenant, by current interest rates, etc. A high cap rate is not always a good thing as you will see in this episode. Cap rates also vary based on where the property is located in a particular city. If the property is in an incredible location, the cap rates are going to be lower, if the property is leased to a national tenant (for example Starbucks, Burger King), the cap rate will still be even lower because your rent is going to be guaranteed and you can easily sell this property. However, when you have a local tenant, and the property is not in such a great location, or is the location isn’t very visible, then your cap rate can be higher because the seller is incentivizing you to buy the property. Cap rates are also determined by the interest rates on loans: when interest rates are low your are able to lend more money to buy property – meaning you qualify for a higher mortgage – however, when interest rates are higher, you can afford less property because you’re getting a smaller loan. You need to look at all of these things not only when you’re buying, but also when you’re selling a commercial property because when you’re selling that’s when it’s going to determine what the cap rate for the property is. To elaborate more on cap rates varying by location: for example here where I am in California you can find cap rates as low as 2.5% in Santa Monica which means that you’re making a 2.5% income per year based on the price of the property. You can also find 7% cap rates in some areas of Berkeley for instance. However, in Alabama, you can find cap rates at 10% and that’s because it’s harder to sell the properties there than in California, so the sellers typically want to make the rate pretty attractive to the buyer. You'll also learn how to evaluate a commercial property for sale at first glance. We are reviewing a property for sale on Loopnet.com and going over all the details you should be looking at such as: how to evaluate what they are describing the property as, understand price per square foot, parking ratio per 1,000 sf, location of the property and how to "walk through" the outside of the property with Google maps, walk score, what to ask for if you think the property could be contaminated, Phase I report, and much more. Make sure to subscribe to this podcast to continue learning about commercial real estate investing, and if you can please do me a favor and write a review since we are just getting started, that would be wonderful. You can contact me here: https://montecarlorei.com/contact-us/ --- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

The very first episode of Best Commercial Retail Real Estate Investing Advice Ever! Here is the step-by-step guide for your homework in today's episode: https://montecarlorei.com/the-journey-begins-retail-real-estate-investing-from-a-z-podcast/ In this episode you will learn a little bit about me: I have been living in Silicon Valley since 2000 and working in tech for the last few years. Being in the startup world, you definitely get enticed to become an angel investor in tech startups, and that is what I started doing – however –  when I spoke extensively with my friend who has been investing in commercial real estate properties for the last 20+ years, we came to the conclusion that real estate is the best form of investment, not only from a cashflow standpoint, but also from a tax perspective, and on top of it all, it’s a very secure investment: the worst thing that can happen is not making any money (versus losing tons of money as an angel investor). And if you are here, you already know all of that and need no convincing! You'll also learn how to setup your Loopnet alerts so that you can start watching your area and learn what is a good commercial property deal or not. Lastly, you'll also lean how to get started on biggerpockets.com which is a great resource to start meeting people in your community, and learning a lot about real estate investing. Make sure to subscribe to this podcast to continue learning about commercial real estate investing, and if you can please do me a favor and write a review since we are just getting started, that would be wonderful. You can contact me here: https://montecarlo.home.blog/contact/ See you soon! --- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support