tenantselection

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

So this week we put out episode 100 of Ask Rob & Rob, which is a pretty cool number. If you haven't asked a question yet, then it's easy to do - jut call 013808 00035 or go to thepropertyhub.net/ask. 

We are also expanding with Yellow and are reaching new cities all the time. Did you know we now cover all of the NorthWest, Yorkshire, Midlands and London? Because of this we need more tradespeople all the time, can you help or do you know someone who might want to be added to our little black book of awesome trades? If you do, click here to get in touch. 

Now on to the topic in hand this week, unusual ways to find tenants. Most landlords will be aware of Rightmove and Zoopla as the big portals for Sales and Lettings and any agent worth their salt should be listed with both. If you self manage you should also be using an online service to list with these two main portals.

Gumtree

A major listing site for anyone with something to sell, but did you know you can also let property here. We tested gum tree out recently a got great results in some areas like York, but not others like London. It’s free to list and the paid version which we use is still very cheap. So why not try it for your area and see how you get on.

Foreign tenant networks

There are many areas of the UK where communities of foreign nationals live. Lincoln being a prime example of this. If you have a few properties in one of these areas then once you’ve let one you may find it easier to let them all. We have found that by treating these tenants well, they are quick to place other tenants from their network for you. This maybe through online portals they communicate through or word of mouth.

Facebook groups

Yes the world's biggest social media platform has it’s uses outside of endless cat videos and too many pics of other people's children you really don’t need to see quite as much as you do. But it can also be a great place to pick up tenants. There are many community Facebook groups and chances are your perspective tenants are checking them out. 

Refer a friend

So simple but it works, if you have a portfolio of properties in one area and one becomes free then ask your current tenants in your other properties to refer a friend. At Yellow we offer these tenants a £50 Amazon voucher to motivate them.

Major local employers

You should be only investing in areas with lots of major employers this helps tenant demand and increases the potential for capital growth. It’s one of the key fundamentals you should look for. So if you’ve made a conscious choice to invest in one of these areas then why not go straight to the source for tenants. If we have a number of properties in one block (which happens because investors who use RMP go on to use Yellow) we will contact major employers in the area and attempt to get on their bulletin boards or listed on their intranet. As nobody else seems to do this, you’d be surprised at the success rate. We’ve had success with airports and factories in the past.

News story of the week: Liverpool handed boost for 2022 Commonwealth Games by being named UK's top sporting city

Rob B loves this news story for obvious reasons. Check out the latest boost to Liverpool's seemingly never ending success story in recent years as a powerhouse of a city, you can read all about it here.

Resource of the week

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Last week we talked about letting a property yourself – and having done that, you’ll need to manage it effectively too. In this episode, we share the management insights we’ve gained from two years of running a letting agency. Like last week, we’ve broken the process down into 10 steps: Listen back to last week’s […]

The post TPP156: How to manage a property yourself appeared first on The Property Hub.

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