Better Than House Flipping - Mike Sowers #5247

<p><strong>Summary:</strong><br /> Is flipping houses the way to go, or is commercial real estate a more opportunistic pursuit? Listen to today’s episode to listen to myself and Mike Sowers discuss some of the benefits in flipping commercial real estate—and get insider tips on how to do this effectively. Sowers emphasizes the value in focusing on deals that add significant value to a property; one must consider what it is going to be worth to someone who will occupy it, as well as what comparable properties sell for. Sowers breaks down some of the strategies for mitigating risk within this industry, and provides an economical justification for investing in properties such as office spaces.</p> <p><strong>Highlights:</strong><br /> -It is possible to get higher returns investing in commercial real estate?<br /> -Is flipping houses all it’s cracked up to be? It is a great first step for many investors. However, you don’t have to go into flipping houses to start—you can go directly into flipping commercial and skip decades of steps.<br /> -There are a lot of sectors of commercial real estate, which can be broken into four categories<br /> -Within the categories, there are different niches<br /> -Sowers’ business is interested in deals that will add significant value to the property<br /> -Only buying properties where you can create value that worth more than it costed to create the value<br /> -There are two ways to sell/value real estate: what is it going to be worth to someone who is going to buy/occupy it? What do comparable properties sell for?<br /> -A financial buyer/tenant values properties differently<br /> -It can be beneficial to buy multi-tenant properties that have problems (i.e. property/people problems, partnership disputes, etc.)<br /> -Focus on properties where you can increase the income stream<br /> -Good strategies and system mitigate risk<br /> -Sowers is particularly interested in the suburban office sector, because it has a much higher perceived risk than real risk<br /> -From a demand standpoi