Quote:
Originally Posted by beb0p
When things are going well, being a commercial landlord is way better than a residential. No question.
But when things are bad, being a commercial landlord can be stressed beyond belief. ...
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^^^^^^^^^THIS ^^^^^^^^^
I MUCH prefer my commercial, BUT..... As with ALL investments, Know your risks and be VERY diversified. Multi Tenant is essential, as is BIG BUCKS and LOTS of plan B's... REMEMBER most commercial lending is on 5 yr terms and MANY very dependable, robust /
'never missed a payment' commmercial owners JUST got taken to the cleaners and lost their properties to the very banks they have used and funded for MANY yrs. Banker: [I
]"Oh, so sorry you don't have a million bucks to self fund, but WE are under capitalized so we can no longer carry $1mil of your $5 mil project of which you have $4 mil equity... Sorry, just hand over the keys and everything will be just fine..."[/i]
Quote:
Originally Posted by SuperDave72
I've researched this some. ... like 5+unit apartments, mobile home parks, that are financed as commercial properties, but "residential" in that people live in them.
Mobile home parks, from what I see, have the potential for very good return on investment, but have a negative stigma.
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Residential Commercial is no fun. (evictions / liabilities / turf wars / capital maint projects...)
MHP are best return and biggest pain. and ALSO serious liability risk (Be sure to have a permit to 'Hand Carry Concealed Weapon'). UNLESS you are really smart and have a
senior park with 100% owner owned homes w/ fixed garages and outbuildings. THEN... when you get old and tired of dealing with it,
convert it to a ROC (Resident owned Community) and carry back the paper. THOSE are a dream investment.
As are some commercial NNN leases to non-food national chains. one older friend has had a property 3,000 miles away for 12 yrs and has never even been there to see it or deal with any issues. His national tenant (Japanese owned) just signed another 7 yr NNN. He just checks his monthly statements, whether he is in Tulsa, Tuscon, or Tahiti.
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