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
824: Bankruptcy to Financial Freedom by Following the “No B.S.” Real Estate Rules w/Jason Lewis
823: The Tax-Free Strategy Only Real Estate Investors Can Access w/Mitchell Baldridge
822: Seeing Greene: The 10-Year Real Estate Retirement Plan (Use Home Equity!)
How to Buy Your FIRST Rental by The End of THIS Year (Step-by-Step Plan)
821: From Making $48K/Year to Millionaire By His Mid-30s w/Ryan Tseko
820: The Late Starter’s Guide to Retirement with Real Estate (40s, 50s, or 60s!) w/Kim Woolf Bosler and Kyle Mast
819: What Caused 2023’s WILD Insurance Market (and When Prices Could Fall) w/Robert J. Hamilton
818: From 16-Year-Old Skater to Investing in “Cash Machine” Kmart Conversions w/Mikey Taylor
817: 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them) w/Dan Nelson and Jodi Gauthier
816: Seeing Greene: How to Invest with $20K and “Luxury” House Hacking
815: $10K/Month at 25 Years Old by Buying $100K Properties w/Soli Cayetano
814: BiggerNews: Home Prices to Stall as “Deflation” Concerns Pop Up
813: Seeing Greene: The Real Estate “Red Pill” That Made Me $400K/Year w/Dana Bull
812: 17 Properties in 3 Years Thanks to “Non-Stop Rejection” w/Jason Lee
811: 3 Real Estate Tools That'll Save You DOZENS of Hours
810: Tom Brady’s Coach: You DON’T Need to Be the Best to Get the Best Results w/Greg Harden
809: How 1 Rental Property Saved Corey Kent’s Financial Future
808: This “CARFAX for Properties” Could Change EVERYTHING About Investing w/Sheila Fejeran and Teresa Grobecker
807: How to Build a Deal Flow “Funnel” to Get UNLIMITED Deals Sent To You w/James Dainard and Sam Primm
How to Find Financial Freedom with Small Multifamily Rentals
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