BiggerPockets Real Estate Podcast
Business:Investing
For the past year, commercial real estate has been the disappointing big brother of rental properties. As housing prices went up, commercial real estate prices went down. When primary mortgage rates were high, commercial mortgage rates were even higher. With record-setting vacancy rates in areas like office and less reliance on retail, many investors thought that commercial real estate was a dying asset class. But they weren’t entirely correct.
Investors like Kim Hopkins had thriving commercial real estate success, EVEN during lockdowns and the pandemic. Kim’s secret sauce to her high cash-flow commercial real estate portfolio wasn’t in getting lucky—it was all in her “buy box.” Kim ONLY buys properties that can’t get shut down, in markets where they’ll thrive, with tons of customers nearby. And today, she’s sharing her exact formula with us!
But that’s not all. Kim is currently debating doing one more deal before the year is up. This property looked like a home run on paper, but as she’s dug deep into it, the property may not be worth the price. From plumbing issues to overinflated income numbers, Kim uses David and Rob as coaches to help her decide whether this deal is worth doing.
In This Episode We Cover:
Kim’s commercial real estate investing “buy box” she uses to purchase profitable properties
Cap rates explained and why you MUST get this right when buying big properties
The inflated “pro forma” numbers brokers will try to convince you of (don’t follow these!)
The types of commercial properties that are lockdown-resistant and always stay open
The significant risks for commercial real estate in 2024 and two businesses you should NEVER rent to
A live deal deep dive with a current deal Kim is debating on buying
And So Much More!
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Ask David Your Question
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How to Get Into Commercial Real Estate Investing (For Beginners)
Pro Forma In Real Estate: What Is It?
How To Calculate Cap Rate For Investment Properties
Connect with Kim:
Kim's BiggerPockets Profile
Kim's Email
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Kim's LinkedIn
Kim's Website
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-863
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663: How to “Raise the Stakes” So Anyone Accepts Your Deal w/Pitch Anything’s Oren Klaff (Part 1)
662: ROE > ROI and Why Your “Cash Flow” Number is Deceiving w/Chris Lopez
661: How to “Start from Zero” in Today’s Multifamily Market w/Andrew Cushman and Matt Faircloth
660: Deal Deep Dive: How Robuilt Doubled His Property Portfolio Overnight
659: Beat the Grind: Make Millions in Real Estate by Gamifying Your Day-To-Day w/Luke Rotvold
658: BiggerNews September: Mortgage Rate Predictions from the Nation’s #1 Lender w/Mat Ishbia
657: Seeing Greene: Can You Start Investing with Just $5,000?
656: The “Deal Never Dies” & Picking Up Properties Other Investors Neglect w/Tyler and Trevor Sarter
655: Private Money Explained Part 4: Rates, Returns, and Protecting Investors w/Amy Mahjoory
654: Private Money Explained Part 3: The "Credibility Pieces" Lenders Love to See w/Amy Mahjoory
653: Tarek El Moussa on Why Flopping While Flipping is The Way to Win
652: Landlord Lowdown: 2022 Market Questions Answered from 4 Expert Perspectives
651: Seeing Greene: Recession Risks, Renting to Family, & Scaling Your Portfolio
Bonus: 2 Legit or Quit? (Signs You Should Quit Your Job ASAP)
650: Glamping, Campsites, and The Insane RV Park Revenue No One is Talking About w/Heather Blankenship
649: Alex Hormozi on The “Weak Links” That Will Make Anyone a Millionaire
648: Why Winners Quit: The 5 Factors to Leaving a Soul-Sucking Job w/Pat Hiban and Tim Rhode
647: Got a Need for Leads? Use This Opener to Earn Trust in 5 Seconds (or Less!) w/Juliet Lalouel
646: Building Wealth Like Warren Buffett & Lessons Learned from Billionaires w/Trey Lockerbie
645: Seeing Greene: Will Borrowing Money from Family Ruin Your Real Estate Deal?
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