Don’t Assume Commercial Investing is Out of Your Reach

Don’t Assume Commercial Investing is Out of Your Reach

2 min read
Ken Corsini

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005.

Experience
With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.

Having been involved in thousands of transactions and having owned over 800 houses, multiple commercial and multifamily properties, and more, Ken brings a wealth of knowledge and experience to the BiggerPockets community. He has authored over 100 blogs and currently hosts the “Best Deal Ever Show” on the BiggerPockets YouTube channel. He is also the host of the popular Deal Farm Podcast.

Ken is currently writing a book in conjunction with BiggerPockets called “Profit Like the Pros,” scheduled for release in Fall 2020.

He and his wife also run Roc.Star Kids, a non-profit organization focused on the needs of children and families in the fight against childhood cancer. For more information on this very personal cause, check out their story here.

Press
In addition to HGTV and HGTV Magazine, Ken has been featured on The Today Show, People Magazine, The LA Times, Think Realty Magazine (cover), TV Insider, In Touch Weekly, Life and Style Magazine, The Wrap, The Atlanta Journal Constitution, UGA Today, US Chamber of Commerce, PopSugar, Entertainment Magazine, and a number of local periodicals.

Education
Ken has a Business Degree from the University of Georgia and a Masters Degree in Building Construction from Georgia Tech.

Accreditations
Ken is currently licensed as a general contractor (commercial) in the state of Georgia.

Follow
RedBarnHomes.com
Instagram @kencorsini
Twitter @kencorsini
Facebook

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I am in the business of buying, fixing, leasing and selling single family detached residential properties. I’ve been doing this for 8 years now and have the model down to a science. Many investors that we work with ask me if I would sell multi-family or commercial properties, and my standard response is that we stick to what works … and for my day to day business, that’s single family.

With that said, I have personally invested in two commercial properties this year. Granted, I didn’t have much experience with commercial before this time, but what I’ve found to be quite interesting is the ease with which I’ve been able to finance and purchase these deals.

Commercial Purchases

The first property I bought was a 10,000 square foot office/warehouse combination. This purchase was made in conjunction with one of my vendors who plans to lease a good portion of the building. Interestingly, the cash flow is stronger than an average single family deal and the financing was much easier to obtain than a conventional loan. For this particular property, I was able to work with a local bank on the financing side (with terms not too different than a conventional loan). One of the big differences, however, is the personal underwriting style of a local bank – in stark contrast to the rigid, in-the-box approach that conventional lenders take.

The second commercial property I just closed on is a large 8 acre storage facility. This property had been foreclosed a year ago and we were able to pick the property up for half of what it was financed for just a few years ago. Again, I was amazed at the kind of financing that was available for such a considerable purchase.

For this particular deal, we were able to obtain an SBA loan with terms and down payment requirements that were even more favorable than a conventional, non-owner occupied loan. To get the loan, we worked with our local bank again as well as an SBA representative that the bank brought into the financing process. While both the bank and SBA needed documentation, it was really no different than what would have been required on a conventional loan.

It’s Not as Difficult as you Might Assume

With the help of a good commercial broker, it was a very smooth process. There were a few additional inspections and considerations, but not nearly as daunting as one might think a multi-million dollar purchase would be. While the scale of the purchase is much larger, the fundamentals really aren’t any different than a single family investment.

Don’t get me wrong, I’ve never been a proponent of getting into commercial just because it seems like the natural progression from single-family. Some guys get caught up in the appeal of the larger deal, but end up crashing that much harder when things don’t pan out. However, if a commercial deal presents itself and the numbers pencil out very strong, it is good for investors to know that it’s not as difficult as you might assume to pull the deal together. Find yourself a good local banker, build a relationship and put yourself in a position to move quickly when that sweetheart commercial deal falls in your lap!