Is investing in commercial realestate a good idea? Walgreens?

Hi Everyone,

I have about 100k cash and I want to invest in real estate. I am
thiking about investing in commercial real estate rather than buying a
condo and renting it out to someone. what are pros and cons of
investing in commercial real estate? What do you guys think of buying
1/10th of a walgreens? I have heard that the lease is 75 years, its a
big company so collecting the rental check is not a problem and they
maintain the property. Any other suggestions? I am ready to take
mortgage in addition to the 100k cash i have to invest.

OR is it better to buy condos in student towns and rent them out?

Shivani.

Re: Is investing in commercial realestate a good idea? Walgreens?

Shivani,
Investing in real estate, especially commercial real estate, can
provide great returns IF you are patient and the people you invest with
are honest and trustworthy. Investing in a "triple net" leased
property which is rented to Walgreen's can be a very good way to
provide current cash flow and benefit from the upside when the property
is sold. However, your return on investment really depends on the
honesty and integrity of your managing partner. If someone is selling
you a 10% interest in the commercial property and you trust them to
properly manage your cash it could be a good investment. The downside
is that if you have an unscrupulous partner you can lose your entire
investment.
If you buy and manage your own properties, your return depends entirely
on your site selection skills and your ability to manage an income
producing property. Your return depends on your skills. Even though
it's a condo, managing anything can become a headache (like dealing
with a neighbor's leaking bathtub in the middle of the night) if you
are not prepared to spend the time to promptly resolve problems (like
evicting tenants who don't pay rent) and expend additional funds to
maintain your property. If you decide on the condo route and your
returns are lower (or higher), you have no one to blame (or credit)
except yourself. One is a passive investment and the other an active
investment. Therefore, it depends on your time horizon (since your
investment in the Walgreen's is not as liquid as your investment in the
condo) and your ability and patience to deal with tenants (good and
bad) and financial ability to actively maintain your investment. Good
luck

Re: Is investing in commercial realestate a good idea? Walgreens?

Well Shivani, in my opinion i think that investing in Commercial
property such as Walgreens and such is a better investment. Here are
the reasons why because you dont have to deal with the tenants, rent,
or maintenance. When it comes to commercial all you have to do is pick
up the check. Walgreens takes care of everything such as maintenance,
rent, and everything else. Really they dont even want you to think
about even come there to overlook. You pay nothing. No extra fee are
nothing. And you are guarantee your rent. When you have a grade A
tenant such cvs, walgreens, walmart and etc. They give you leases that
can last up to 10-15 years with option to extend and and give more
rent. with the exception of walgreens which has 25 year leases.Which is
great. So isnt that easy cash flow. But make sure that the tenant is a
great company. Im not trying to talk you out of it but i'm for sure
condo's and residental cant pay off like this.In all aspects.

If you wanna talk more about it give me a call I finance commercial
properties so maybe i can help you finance this if your serious about
this.

Orlando Miner
702-466-8952

Re: Is investing in commercial realestate a good idea? Walgreens?

I am very serious. I heard that you can be 1/10th owner in a walgreens?
how does that work? is there a company that looks for 10 people and
helps them buy walgreens? or is it 1 out of 10 investor that's moving
out and someone like me can replace that investor? or do I have to get
10 people who r willing to invest? what is the minimum downpayment for
such properties 25%?

Re: Is investing in commercial realestate a good idea? Walgreens?

well, it could be either one, but to be honest i dont know why you
would have 10 people on a walgreens. I finance people for many
walgreens and they only cost around 3 million or so. Now i know thats
alot, but i my lenders normal ask for 10% down which isnt alot for that
type of property. And that means that all the rent gets divide into 10
! yikes ! I mean if you think it sounds good go for it. if i can help
more let me know.

Re: Is investing in commercial realestate a good idea? Walgreens?

Shivani

I noticed your inquiry about investing in commercial real-estate. I am
a commercial builder in Southern North Carolina. I have been in
business for over 10 years and am licenced in both North and South
Carolina.
I am looking for a limited partner for a commercial project I have my
eye on.
The area I am refering to has just recently had a huge population
increase and is in need of soom retail strip centers.

A. J Richards
Atlantic Building & Maintenance LLC
(910) 686-3013 Office
(910) 367-1634 Cell