How I think I might be able to get in the game
Seeing a ton of listings in market especially tertiary markets in States where you have 5-15k sq. ft. flex / industrial / partial office class C selling at land value, low population cities
e.g. selling $300-$600k... but are completely vacant... and on market for long time, everyone ignores them
It seems that if you can lease them up at NNN rates even below market you get immediate pick up in value
BUT, it's a binary risk --> lease up = 30% IRR over 3 years ... don't lease up... basically worth nothing
1 option is to break them apart into smaller bays to reduce risk but that costs money and I'm not convinced the return is there
I wonder if there is a use case of getting under contract for these and dropping the deal after 90 days if can't get a tenant. strategy is spamming fb marketplace (
@mindofachaser special) or just get a cold calling group and just go ham until you get a tenant
becomes more of a finance / sales play than a RE play but you get a tenant in and you flip it at like a 9 cap at market rent... you have a large buffer for TI's
like i said it's either a homerun or you're cooked. so maybe you go under contract and get a 90 day shop around clause to find a tenant, or some seller finance buy back clause ....
I don't know what the answer is, but if you can flip $300k to $500k in a year, take on some leverage, and do like 5-10 of these a year you turn out pretty good, and you get a system, and get better every time...
the average person doesn't GAF about these shitty class C flex / overlooked buildings cuz old, bad lcoation deferred maintenance etc... but with a NNN tenant (income) in there it could be something...
This might be the easiest way for me to get in the game with only 100-200k in hard earned equity