🚀 Launch Your Real Estate Dreams with Mortgages, Zoning, and Industrial Spaces! 🏗️

Hey there, 👋!

Thank you so much for subscribing and happy July 4th!

Let's chip away at the mystique of mortgages, delve into zoning, and demystify industrial real estate. Ready? Set? Let's go! 🚀

1️⃣ Mortgages: Your Magic Carpet to Property Ownership 🧞‍♂️

Let’s talk about what is a mortgage. A mortgage is an agreement between you and a financial institution where you borrow money to buy property.

You borrow money from a bank or other lender, buy a property, and pay the money back over time, with interest.

If you own and live in the house, then you pay off the mortgage over time. If you have an investment property, then tenants will pay it off over time.

Why it's magical? You gain control of a property while only putting a smaller percentage of the purchase price. You can put down as little as 3.5% with the right type of property and loan.

There are several types with mortgages. Commercial and residential mortgages are completely separate. You can also get fixed and floating rate debt.

2️⃣ Zoning and Density: The Invisible Hand of Real Estate 🖐️

Zoning is the invisible hand that guides how land in a city can be used. It's like a big rulebook that defines what can be built and where. Understanding zoning is key to predicting the future potential of a property.

Your city controls zoning. If you are a real estate developer, you can petition with the city to upzone to change the real estate density and fit more units.

And then we have density. Think of it as the number of people or properties that can fit into a specific area—like how many emojis you can cram into a text.

The higher the density, the more buildings and people can fit. This can affect property values, so keep an eye on this one!

There is tons of value associated with land development and upzoning, so that could be one strategy to employ. Newbies beware, it can be a very $$$$ and time consuming process. Not for the feint of heart.

3️⃣ Industrial Real Estate: The Underdog of Investment Opportunities 🏭

Industrial real estate—sounds boring, right?

Wrong! It's the underdog that could fetch you a hefty profit. We're talking warehouses, factories, distribution centers—places where businesses operate behind the scenes.

Investing in industrial spaces might not seem as glamorous as a swanky downtown condo, but these spaces are in high demand.

Most of the main players in industrial real estate are big institutional firms. If you’ve heard of Blackstone (the largest landlord in the country), Prologis, or Rexford, they are the big fish in the industrial RE pond.

That being said, you also can own an industrial building. It can often be less management intensive than a traditional portfolio of houses or apartment complex.

In an industrial building, the tenants are usually responsible for all maintenance, insurance, and taxes and upkeep of the building. It’s called a NNN (or triple net) lease.

Keep playing the property game! 🏡🎲

-Mo