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94: Commercial Sellers Get DESPERATE As Big Deals Die Off

94: Commercial Sellers Get DESPERATE As Big Deals Die Off

FromOn The Market


94: Commercial Sellers Get DESPERATE As Big Deals Die Off

FromOn The Market

ratings:
Length:
52 minutes
Released:
Apr 10, 2023
Format:
Podcast episode

Description

Commercial real estate has seen a severe drop in demand. From office buildings to multifamily and more, rising mortgage rates and unwavering cap rates are making commercial real estate a gamble more than a grounded investment. But, when buyers start exiting the market, sellers get desperate, and this chain reaction allows committed commercial real estate investors to scoop up deals worth millions more just a few years back. We have a couple of those deals coming up on this episode! 
We’re back with another audience deal show. This time, we’re walking through two commercial real estate deals with serious potential, but their prices don’t match reality. First, we talk to Ben Mashat, who recently went full-time into real estate investing after scaling a successful wholesaling operation. He’s got a MASSIVE deal opportunity—a five-story office building with seven-figure potential profits. The problem? A price tag that doesn’t match today’s commercial property market.
Next, we hear from Heidi De La Torre, who’s looking at a multi-unit beachside property with impressive price comps nearby. But, with zoning issues and a seller that can’t make up their mind, Heidi is struggling with which move to make as she debates taking on a project with this many pitfalls. As always, our panel of expert investors will give their suggestions on what our guests should do next and whether these deals are even worth chasing! 
In This Episode We Cover
The state of commercial real estate and why sellers are getting desperate as the buyer pool dries up
NOI (net operating income) explained and ENSURING yours is accurate before you get a deal under contract
The downside of office investing and why so many buyers are straying away from this property type
The cap rate debate and whether or not this metric is the most important factor when deciding on a deal
Property zoning, code violations, and how unpermitted builds could COST you
Wholesaling large deals and details you’ll NEED to find qualified buyers
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
BiggerPockets Forums
BiggerPockets Agent
BiggerPockets Bootcamps
Join BiggerPockets for FREE
On The Market
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
Dave’s BiggerPockets Profile
Dave’s Instagram
Henry's BiggerPockets Profile
Henry's Instagram
Jamil's BiggerPockets Profile
Jamil's Instagram
Kathy's BiggerPockets Profile
Kathy's Instagram
James' BiggerPockets Profile
James' Instagram
Listen to Our Residential Audience Deal Review Show
Commercial Real Estate Could Crash, But Are Everyday Investors Impacted?
Cap Rate: What Is It and How to Calculate It
Books Mentioned in the Show
Real Estate by the Numbers by Dave Meyer

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-94
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Released:
Apr 10, 2023
Format:
Podcast episode

Titles in the series (100)

The modern real estate investor doesn’t have time to research every headline and trend. That’s why BiggerPockets' Dave Meyer and his expert panel do it for you. Learn how to invest smarter in today’s economic environment.