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!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Expand Your Investing Knowledge With the BiggerPockets Books
Be a Guest on the BiggerPockets Podcast
Ask David Your Question
David's BiggerPockets Profile
David's Instagram
Rob's BiggerPockets Profile
Rob's Instagram
Rob's TikTok
Rob's Twitter
Rob's YouTube
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
Kim's Instagram
Kim's LinkedIn
Kim's Website
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-863
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
919: How to Use Real Estate to Quit the 9-5 Grind
918: Creating Their Own Demand By Ditching the "Cookie-Cutter Flips" w/George and Heather Bassett
917: Seeing Greene: Can I Escape the Rat Race with Just $70K?
916: Crucial Contractor Tips to Avoid Renovation Disaster w/‘Rico to the Rescue’
How to Get an Off-Market Seller on YOUR Side (+Most Common Objections) W/DealMachine
915: BiggerNews: Why Mortgage Rates AREN’T Falling w/Caeli Ridge
914: Deals We’re Doing: Rob’s Pink Pickle and How David Made $500K on ONE House914:
913: 150+ Deals in 3 Years and Why You DON’T Want to Be a Landlord w/Don'nell Greer
912: Seeing Greene: Paying Off Rentals, Partnerships Splits, & Using Home Equity
911: The “Value-Add” Playbook: How to Boost Equity and Bring in MORE Cash Flow
910: Zillow’s “Trends Expert” on How to Sell Your Home Faster (and For More!) w/Amanda Pendleton
909: 6 Expert Tips for Out-of-State Real Estate Investing
908: $400,000/Year From One Unique Rental Property w/Amanda and David Fornelli
907: Seeing Greene: $100K In Equity But NO Cash Flow, Should I Sell?
906: How to Become a Millionaire Through Real Estate Investing (Beginners!)
905: Fannie Mae: Multifamily Is STILL Undersupplied, Rent Growth Likely w/Kim Betancourt
904: Does the BRRRR Method Still Work in 2024?
903: 120 Rentals in 3 Years by Buying Multifamily During a BAD Market w/Brian Adamson
902: Seeing Greene: Investing WITHOUT Burning Out and What We’d Do With $1M
901: The 6 Beginner Steps to Take Before Investing in Real Estate
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
TED Talks Daily
Radiolab
StarTalk Radio
The Inforium
Entrepreneurial Thought Leaders