When did you decide to go commercial?

7 Replies

For those of you that started out with SFR or MULTI properties at what time/point did you decide to go commercial? Was there a certain time when you decided to jump into larger units? What made you make the change? What would you do differently?

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

Ryan,

I went commercial in 2009.  The reason was the last recession.  I have bought and flipped over 400+ properties in Chicago, Denver, Socal, Las Vegas and Phoenix.  I went into building single family houses of which I built about 20 in Socal.  When the recession hit, it was hard to continue building and the market for contracting services was tough, as most people went upside down on their houses.  I went into commercial lending as the deals are bigger and the borrowers are more professional.  You will know when your time comes.

Mark

Perfect answer Mark. Perfect.

@Mark Kemp:

Mark,

Thanks for the compliment.  How is the Las Vegas market doing?  I used to have a second home in Laughlin Nevada.

Mark

@Mark Creason   that is exactly what I was looking for. I want to get into apartment complexes eventually but am starting small to build up capital.

Ryan Dossey, Real Estate Agent in IN (#RB15001099)

Ryan D. to answer you question on a previous thread I am on the North Side, Portage Park, Albany Park and Lincoln Square) .  Once I hit 5 I cannot do a cash out refi on any of my properties except my primary so I felt I would be shooting myself down the road but taking that option off the table.  So the rest of my properties (in a cash flow only market) are financed commercial.  I have over 10 so I would have had to go commercial anyway

Having closed on my first commercial deal just 2 months ago - the process was much easier.  From the time we finally got the p&l from the seller and submitted the file it took 3 days to get the loan approved.  

Brie Schmidt, Real Estate Agent in Wisconsin (#57846-90) and Illinois (#471.018287)

We went into retail/office commercial after about 5 years in SFH rentals. I hated getting the complaints from SFH renters that they hate the paint color or the light fixture looks old, etc. By the way, this was after they signed the lease. I didn't comply with all the demands but it drained me. Luckily I bought a retail place kind of by chance and really loved the NN or NNN leases. Businesses tend to also be less emotional and more professional. They tend to understand that it takes more than an hour to fix the AC. In my experience just less demanding and more reliable. It just fit my personality better. Then after I realized forced appreciation, I switched for good.

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