DON'T READ THIS IF YOU HATE MONEY!

Ah, so you've managed to squirrel away a few shekels in your piggy bank, and the light bulb above your head has flickered on – commercial real estate is the golden ticket! But now you're faced with the daunting question: 

What's the next move? 

Fear not, there's a method to this madness, and we're here to sprinkle some wisdom on your investment journey.

Now, diving into the world of commercial real estate is like navigating a maze with hidden treasures and potential pitfalls at every turn. The holy grail is finding a property that spews out a steady, reliable income without burdening you with the daily management shenanigans. 

Picture this: apartment buildings, the drama queens of property management. These fall into the day-to-day management category; I suggest avoiding those when wanting to make a simple investment. On the flip side, mini-storages, the zen masters of low-maintenance, might be more for you. And somewhere in between the drama queens and the zen masters, you have small industrial or office buildings – like the Goldilocks of real estate.

But wait, there's a catch! This elusive gem, is not only hard to find but also a tad pricey. It's like hunting for a needle in a haystack made of dollar bills. However, in my not-so-humble opinion, it's the caviar of CRE investments – worth every penny if you can snag it.

Now, let's talk window shopping. 

What should you look for when you're out there scouring the market for your dream investment?

First off, peek at the condition of the building. You don't want to be stuck with a money pit that devours your profits because the previous owner thought maintenance was a myth. Professional inspections are your Sherlock Holmes in this game – non-negotiable! Decide beforehand how much you're willing to drop on renovations, get quotes from reliable contractors - don't forget to factor that into your grand plan.

Next up on the checklist is the length and strength of current leases. 

Unless you're a magician at pulling rabbits out of hats or have a penchant for heart-pounding risks, steer clear of buildings where tenants are on a month-to-month limbo dance (with one foot already out the door). You might pay less for such a place, but remember the golden rule: you get what you pay for. 

Ideally, you want your building at least 85% leased, with leases resembling long-term relationships rather than one-night stands. Look for trustworthy tenants who are in it for the long haul.

Oh, and a quick word about those multifamily apartment buildings we discussed earlier – they can indeed be excellent real estate investments. The catch? There has to be enough moolah rolling in to hire a top-notch management firm to deal with the day-to-day antics. It's like hiring a babysitter for your property – crucial to keep your sanity intact.

So, my friend, as you embark on this wild real estate escapade, remember: inspect, plan, and always keep an eye out for that elusive property. May your investments be bountiful and your headaches few!

All The Best To You,

Brad Neihouser

765-427-5052 | bneihouser@shook.com

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