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Home > On The Market > 94: Commercial Sellers Get DESPERATE As Big Deals Die Off
Podcast: On The Market
Episode:

94: Commercial Sellers Get DESPERATE As Big Deals Die Off

Category: Business
Duration: 00:50:22
Publish Date: 2023-04-10 06:00:00
Description:

Commercial real estate has seen a severe drop in demand. From office buildings to multifamily and more, rising mortgage rates and unwavering cap rates are making commercial real estate a gamble more than a grounded investment. But, when buyers start exiting the market, sellers get desperate, and this chain reaction allows committed commercial real estate investors to scoop up deals worth millions more just a few years back. We have a couple of those deals coming up on this episode! 

We’re back with another audience deal show. This time, we’re walking through two commercial real estate deals with serious potential, but their prices don’t match reality. First, we talk to Ben Mashat, who recently went full-time into real estate investing after scaling a successful wholesaling operation. He’s got a MASSIVE deal opportunity—a five-story office building with seven-figure potential profits. The problem? A price tag that doesn’t match today’s commercial property market.

Next, we hear from Heidi De La Torre, who’s looking at a multi-unit beachside property with impressive price comps nearby. But, with zoning issues and a seller that can’t make up their mind, Heidi is struggling with which move to make as she debates taking on a project with this many pitfalls. As always, our panel of expert investors will give their suggestions on what our guests should do next and whether these deals are even worth chasing! 

In This Episode We Cover

The state of commercial real estate and why sellers are getting desperate as the buyer pool dries up

NOI (net operating income) explained and ENSURING yours is accurate before you get a deal under contract

The downside of office investing and why so many buyers are straying away from this property type

The cap rate debate and whether or not this metric is the most important factor when deciding on a deal

Property zoning, code violations, and how unpermitted builds could COST you

Wholesaling large deals and details you’ll NEED to find qualified buyers

And So Much More!

Links from the Show

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Listen to Our Residential Audience Deal Review Show

Commercial Real Estate Could Crash, But Are Everyday Investors Impacted?

Cap Rate: What Is It and How to Calculate It

Books Mentioned in the Show

Real Estate by the Numbers by Dave Meyer


Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-94

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