Real Estate Rookie 89: Buying Non-Traditional Properties as a Rookie Real Estate Investor
Sometimes, new real estate investors tend to forget about the other types of real estate investing outside of single-family and multifamily homes. What about self-storage, or commercial, or in Matt Racker’s case, warehouses? All these options can make you passive income, sometimes with far less hassle than managing residential properties.
Matt caught the real estate bug doing his first live in flip. He saw a house being remodeled, took a look inside, and decided he could finish the job. Just like that, he called the contractors, found the flippers, and offered to take it off their hands. With some sweat equity, Matt was able to completely renovate his primary residence off of a construction loan, while leaving $0 in the property. I think it’s safe to say we’d all like a new house for free! Then, Matt started thinking about what else he could invest in.
Since he runs his own office furniture and cubicle system business and had a pretty good handle on warehouse leases, he decided to use his expertise to start buying commercial warehouses as rental properties. Matt walks through exactly what you need to analyze a warehouse, which metrics matter most, and how to structure your leases (triple net, single net, etc.).
In This Episode We Cover
Putting in sweat equity so you can 100% finance your home
How to analyze commercial warehouses depending on their square footage
Partnering with family and how to create an org chart
Bidding on duplexes at a virtual auction
Triple net leases and why they’re common in commercial real estate
And So Much More!
Links from the Show
Real Estate Rookie Youtube Channel
Check the full show notes here: https://www.biggerpockets.com/rookie89
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