Hey there, 👋!

Today, we’re diving deeper into:

• Types of Commercial Real Estate

• Property Management Tech

• Airbnb and vacation rentals

Commercial Real Estate: The Goldmine You're Overlooking! 🏬

"Commercial real estate" might sound like a phrase that's all about sexy skyscrapers with glass-fronted office blocks and beige cubicles. People think it’s just gorgeous city skylines.

If that's all you're picturing, it's time to broaden your horizon (pun intended)!

Let's take a whirlwind tour of the diverse landscape this sector actually encompasses.

Imagine everything from bustling shopping malls, a retail haven, to logistic powerhouses like warehouses, the backbone of e-commerce. Envision multi-family apartment complexes, a consistent income source, and even golf courses.

But that's not all - ever thought about owning a self-storage facility? With a rise in downsizing and transient populations, these are becoming increasingly profitable.

Or consider parking structures in metropolitan areas - limited space makes these assets truly valuable. Eventually, it’s possible to redevelop these sites while making cash flow. That’s called a “covered land play”.

However, like any investment, commercial real estate does come with its share of pros and cons.

Pros

Commercial real estate does have pros – you are able to increase the value by increasing “net operating income” or the income after expenses. This means you might be able to bill expenses back to the tenant and increase revenue.

Sometimes, tenants are in charge of their own maintenance and paying for insurance with a NNN lease!

Cons

On the flip side, it requires a substantial initial investment, something to consider if you're tight on capital. Legal processes are quite complex & thus more expensive.

Occasionally, you might be on the hook for “tenant improvements” aka renovations for retail tenants. Commercial taxes are also generally higher than residential.

The property value is also highly sensitive to the ebb and flow of the business cycle. And let's not forget, it can be a more complex beast to manage, with considerations like stricter regulations and intricate lease structures.

So, are you ready to roll up your sleeves and dive into this world of untapped potential? Remember, fortune favours the bold, and commercial real estate might just be your ticket to a prosperous future!

Tech Is Eating The World: Property Management Firms Go Techy 🤖🏠

Welcome to the era where tech is not only eating the world but also digesting your property headaches!

In the old days, a landlord had to physically pick up cash or checks and communicate with tenants via snail mail or in person. If you wanted a report for profit and losses? Oh man, you might need an MBA to understand it!

Picture an app that allows you to collect rent digitally, no more waiting for a check in the mail. Got a tenant with a midnight plumbing crisis? Online platforms are now equipped to handle service requests at all hours and can dispatch a professional in no time.

How times have changed!

Nowadays, the power of technology allows you to run a portfolio remotely. You can quickly pull up profit/loss reports, rent rolls, and tenants can pay rent remotely.

However, as with any new-age solution, there are considerations to keep in mind. Some of the solutions may not be the best fit for you or your investment style.

Airbnb: Your Ticket to Fortune or a Wild Goose Chase? 🛏️💰

You've probably heard the stories of people raking in mountains of cash through Airbnb on your Instagram or Tiktok feed.

But is it as simple as listing your property and watching the money roll in? The answer isn't that straightforward.

Pros of Airbnb

On the bright side, Airbnb provides an opportunity to monetize that spare room or vacation home.

It can be a great source of supplemental income, and in some cases, may even exceed what you'd earn from traditional long term rentals.

Cons of Airbnb

However, your Airbnb journey isn't going to be all bed of roses.

The property's location, local laws and regulations, and the level of competition all play crucial roles in determining your success.

Permits and local regulations can affect a decision to buy an Airbnb as a vacation property. If you were looking to buy a property specifically as an Airbnb and the city bans it, it may affect your investment and you could lose money.

Furthermore, the work involved shouldn't be underestimated. Managing an Airbnb property can be time-consuming and demanding, with responsibilities ranging from communicating with guests to maintaining the property.

Also, consider the unpredictable nature of the business. Your plush vacation home might be a hit during the peak season, but what about those off-peak months when it's sitting idle?

So, before you dive headfirst into the Airbnb world, take a moment to weigh the potential rewards against the challenges. After all, a well-informed decision is the first step to success!

Conclusion

Hope you enjoyed this edition! Feel free to email if there are any topics you want to cover.

Cheers,

Mo