All Forum Posts by: Tanh Truong

One of the best 'starter' properties to get into commercial is mixed-use buildings where they have commercial units on the bottom and apartments at the top. The reason is the underwriting is similar and you can get your bearings in place. Finding a mentor helps a lot. I'm a part of a non-residential commercial mastermind that has helped me tremendously. Happy to elaborate.  

1. Vacancy: Not familiar with your area so not sure what the typical vacancy is. Maybe best to consult with a commercial broker in the area. 

2. Fair price point: Depends on the area, cap rate, price per sqft, etc. May also be best to consult with a commercial broker. You could also play around on Crexi to see what similar buildings have sold for. 

3. Length of leases: typically in commercial you will see longer leases - 3-5 years and even 10 years. Since these are smaller units, I would say the lease terms are shorter - 1-3 years. It comes down to the business and the negotiations you have with them. You can get as creative as you want. 

4. Eviction: from my experience, it's similar to residential. I would consult an attorney in this matter. 

5. Advertise: utilize all your 'free' resources first - for lease sign/banner, FB marketplace, craigslist, cold-calling, door-knocking. 

Network, find a mentor, and provide value to others!

Personally, I'm a fan of value add retail and industrial. In retail if you have service based tenants they could be internet resistant. And for industrial, those big companies will need storage space. 

How did you find your PM company? 

As we near the end of another season, I can't help but express an incredible amount of gratitude for our mentor and colleagues. I'm surrounded by so much knowledge and week after week we're dissecting so many different non-residential commercial deals. In retrospect, seeing the growth of everyone is so motivating.

I've learned:

✅ how to find amazing deals

✅ how to find mis-marketed deals

✅ various types of non-residential commercial assets

✅ proper due diligence

✅ raising capital

✅ expanding your mindset

✅ growing your network

This year alone, I've had $25 million under contract and closed on about half of the deals. Looking forward to the next session 💯

Ash Patel has a mastermind. Happy to provide any info. 

Chris, I agree. There's not a lot of resources out there in regards to commercial real estate. I am a part of a mastermind that deals with specifically non-residential commercial real estate. If you're interested in learning more about it, let me know. Disclaimer: I have no affiliation with running it. 

Sounds like you have a pretty good deal on your hands. I've been in the commercial space for a little while now, happy to help review. 

From my experience, zoning typically should be commercial and suitable for retail use. Indoor typically commands higher rents because people like to keep their toys covered. Investigating the demand in the area is important - shadow shopping to see what the demand is like and what the market rents are.