200k liquid- multi family or commercial property
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7yWell 200k to 250k in commercial is SMALL. Figure say in STNL NNN properties at 1 million you need 30 to 35% down plus closing costs so about 350k to 400k to own directly. Most stuff in 1 million range is in weak suburban or rural locations.
The higher quality assets run minimum 1.5 million and up in price for most strong suburban locations nationally.
Options are you could either join up possibly with other family members or business colleagues to buy something larger or if an accredited investor you might could invest passively into a syndicate.
An example if someone contacts me with 200k and can't add anything to it then rural type locations. If accredited they might could invest with me as a sponsor on some of the retail value add deals and be part of a larger project with more upside potential. If money is 1031 exchange money then TIC or DST's and investor has to qualify.
You might could buy a commercial retail condo for 200k down on something and own yourself. Sub 1 million is just very limited in commercial.
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- Investor · Fishers, IN · Member since 2012 · 520 posts · 499 votes7y
@Deepti M. I'm glad to know that you're interested in changing some things and getting active in Real Estate investing. I agree with most of these posts here but, of course, want to add my two cents.
As far as I'm concerned, there's two type of investing active or passive. The former is where you learn the business & the latter is where you fund (or help fund) based on the deal meeting your criteria.
The first you usually pick a niche - though it could be a broad niche - like residential versus commercial, or you can drill down and only pursue SFH, or Multi-family, or mobile homes, etc.
I subscribe wholeheartedly to what @John Fortes says above, so if you try to do that in a variety of avenues you may find yourself spread thin. Please note that there is plenty of opportunity out there and if you try to do it all, you may very well end up scattered & eventually burned out.
There's an awesome book/philosophy out there called Essentialism: The disciplined pursuit of less (versus the undisciplined pursuit of more) by Greg McKeown.
I personally only invest in Self Storage. Not saying that's right or wrong for you or anyone else, that just happen to be my wheelhouse & my domain. And I love it!
So you do have the choice to perhaps pursue what you love, or maybe where your strengths & weaknesses align and therefore points the appropriate direction, or (if you're going to follow John's steps above) you'll see that some of his items (#3, #7, #8 for instance) are what others have done before you. Step back & look at your network and see what & where it's currently aligned. And perhaps that's the road you take, or at least get started in.
There's some romanticism in Robert Frost's path in the woods and taking the road less traveled, but then again if you're surrounding yourself with like-minded people, leaning on your network, enlisting the help of a coach or mentor, you're going to see a common theme which is where they are currently active
Please note that I'm not saying that that is the path you HAVE to take, but at a minimum speak with them about the investing they do & why, and perhaps even shadow them for a time.
There's a proverb we use in our Organization: If you want to go fast, go alone. If you want to go far, go together.
Best of luck to you! And if I can be of any help.
Scott
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