253: Recession-Resistant Investing & the Benefits of Buying Shopping Centers with David Puchi

Most of the guests here on the BiggerPockets Podcast have focused on residential properties—but there is a whole different world to explore in the commercial real estate space. That’s why we’re thrilled to bring you this powerful interview with an investor who’s truly crushing the commercial real estate industry! Our guest today is David Puchi, an investor who owns more than 50 neighborhood shopping centers (“strip malls”) throughout the United States. David tells how he built this massive portfolio and why he believes it is one of the best real estate niches to be a part of. This show will open your eyes to an exciting world you never knew existed.

In This Episode We Cover:

• How David started real estate investing
• Why he brought a bank guarantor partner into his deal
• How he turned a shopping mall around
• What the “Amazon proofing strategy” is
• What he looks for in commercial properties
• The challenges of this strategy
• Who to hire to start investing in shopping centers
• What synergy is in reference to tenants
• How one tenant can affect the whole center
• A passive way to invest in triple net properties
• Tips on how to finance these deals
• Where he finds his deals
• How to analyze a neighborhood for shopping malls
• Tips for performing due diligence for this kind of deal
• The metrics you should study to figure out the health of a tenant
• Where he sees his business in the future
• And SO much more!

Links from the Show

• BiggerPockets Forums
• BiggerPockets Marketplace
• BiggerPockets Podcast 250: Grant Cardone on Multifamily Investing and Why You Should Never Buy a House!

Books Mentioned in this Show

• The Book on Rental Property Investing by Brandon Turner

Fire Round Questions

• I am planning to build a 10~12K sqft strip with 6 units, which type of business will be well fit?
• What is protocol for charging and collecting overdue rent?
• How to lease retail store to franchise
• How to determine value of a commercial property w/ no list price?
• Adding appreciation to a commercial property
• Are current tenants a big factor in the sellability?

Tweetable Topics:

• “Having reasonable leverage makes more sense than over leverage.” (Tweet This!)
• “Basic property management experience is a great launching pad in owning commercial properties.” (Tweet This!)
• “You can’t rely on the market to force appreciation.” (Tweet This!)

Connect with David

• David’s Company Website

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