BRRRR’ing Commercial Properties
So I grew up with a contractor as a father that built design metal buildings. He was and still is one of the only folks around that builds commercial spec buildings. This last one he did, I sold for him (I am a licensed broker) and did so fairly quickly. I have primarily worked in the residential space most of my real estate career. That sale however, showed me very quickly that commercial is where I want to be. It was the easiest transaction I’ve ever done as well as the largest single commission I’ve ever made. (I know I’m very blessed to have gotten that opportunity!)
I own a few residential rentals that I BRRRR'ed and I think it's just a brilliant means of wealth building. I like the money you make on paper as well as having a like new place with low maintenance in the short term.
I want to take this strategy into the commercial space. My question is, why are more people not doing this? Is costs just a barrier to entry? Obviously greater risk associated but why do we not see more spec commercial buildings or flips so to speak? Or do we and I’m just not privy to seeing this in my little rural area?