You choose, I buy??

Question

I am trying to break into the commercial market.  One local investor is trying to help me get started, but deals seem to be few and far between.

I am thinking of starting a "you choose, I buy" marketing campaign that basically advertises to companies, stating that I would buy a facility to their specifications, renovate if necessary and lease it to them.

What is the consensus, pros/cons of this?  Has anyone else tried something like this?  If so, what were the results?  What other commercial marketing techniques could be used in place if this is ineffective?

Champak Shah · Answer

What type Investor do you have ?  How much money he  has to Invest ? What type rturn he is expecting ? What type proeprty is he interetsed in ?  Is he going to give you a loan
or  be the owner and you will manage for him ?

Commercial Proeprty Owenrship and Management --is lot differnet than SFR --

Risks are greater and rewards are greater 
Need to ahev Long Term Busienss Plan and Strategy-  State or City - area of twon, type of 
property etc  -- then do feasibility study -- population, income, age group, traffic counts etc-   
In Atlanta --there are many retial Centers available  -- some vacant and some occupied-

For example --have a Bank REO -- 80% occupied  for $2.7 million -- 50% original 
mortgage --

Give some more thoughts and decide  which direction to go --  Retial, Office Buildings, 
Office Condos, Warehosue - Distribution,
Hotels  etc  --

Sean H. · Answer

Oz, I would feel like that would be a pretty reasonable fear regardless of the tenant.

Chris, thats definitely a great idea!  I'm guessing that this friend of yours has a commercial construction business as well?

Oz M. · Answer

The problem is when the doctor moves his practice breaking lease after the upfit

Chris Sweeney · Answer

This reminds of a builder who told me that he gets approached by doctors looking for a space to open their own practice.  He said he doesn't get paid to find the space but wants the building business so he does it.  He said that when the doctors work in a group their income is quite limited and once they establish a patient base they want to branch out on their own to make real money.  Perhaps you could market to doctors that work in these groups.

Chris Stutte · Answer

Build to suit can be for sale as well.  Not everyone is looking for a NNN lease.  Some will build what you want and sell the entire project.  Problem is $$$

Sean H. · Answer

I figured this had to be pretty common.  Short of doing a lot of commercial deals and owning a lot of property waiting for someone to rent it, there has to be a way to get people to approach you to be their landlord.  I figured this would be a good way.  What other ways have people used, specifically for commercial deals?

Jeffrey K. · Answer

Build to suit is not what you think it is.  It is when you have land and are willing to build a building for a tenant to their specs for a long NNN lease.

What you are talking about is very common in real estate.  You should have connections with companies or you can apply with your site to large companies or national franchises.  You can often get their required specs on their website or from their real estate department.

Sean H. · Answer

I agree Gilbert.  Each deal would have to be chosen on its own merits once the initial contact has been made.  I should have made that more clear.

Gilbert Ryan · Answer

It would depend on the area and what type of property involved!

Sean H. · Answer

Offering build to suit to potential tenants is great, if you already have a building.  I would be using this to try to get tenants who want a building, but for whatever reason don't want to/can't buy it for themselves.  I would buy it, build to suit, then lease it to them.