Are you a commercial real estate investor or interested in delving into commercial deals?
Wouldn’t it be wonderful to know everything you can about all the commercial buildings in a given area?
Well, before we discuss how to access all the information, let’s discuss the benefits of commercial real estate. Maybe some of you residential investors out there might think about diversifying a bit?
Here are some reasons:
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Income potential. Commercial real estate can provide some great returns on rent. It’s not uncommon for commercial real estate to provide returns of around 10%. Certain commercial real estate, such as storage facilities and assisted living, can return well north of that number.
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Longer lease. Compared to residential leases that generally last a year (on average), commercial real estate leases run longer – sometimes 10-20 years. A good business tenant will generally stay put because it’s such a pain to move. (The downside to this of course is finding tenants when your building is empty.)
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Professional interactions with tenants. Since your tenants are businesses, it’ll be easier to negotiate or deal with them than residential tenants. Businesses generally sign ‘Triple Net’ leases, which means the tenant pretty much takes care of everything. That includes things like remodeling and all utilities.
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You’re in control of appreciation. With residential properties, a lot of the value of the home is based on its location and surrounding area. Although this might figure into a commercial property, the main value in commercial is in the profit it generates. If you can fill your building with high-paying, low-maintenance tenants, you will increase the building’s value tremendously.
Making Data Your Advantage
Planning to kickstart your journey to commercial real estate investing? Or are you just looking to expand your commercial investments?
Either way, you’ll want to learn as much as you can about both your market and the individual buildings in your area. Then you will have an idea of what is considered a good deal.
You’d hate to pull the trigger on a commercial property and then find out there was a better deal on the same block…
The question is: How exactly would you do that?
Well, by making data your advantage.
Rich Sarkis, Reonomy’s CEO, said that “most of the data in commercial real estate is raw and very badly formatted.”
And as with any other successful businessmen, he saw a problem and fixed it.
He thought of a way to easily deliver this data to his users in a very simple, straightforward yet powerful way. Hence, Reonomy.
Reonomy is a commercial real estate (CRE) software that helps you seamlessly gather information about specific properties. Its key features are for users to be able to access:
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Property-level information
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Physical attributes
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Previous (and possibly current) sale information
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Debt history
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Taxes
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Along with the people and entities associated with each property.
The most valuable piece of information is the owner of the property and if they have other properties listed under their name in the United States. In many cases, Reonomy can provide the contact information for the owner beyond the LLC name.
Reonomy has the largest CRE database in the country coupled with relevant workflow tools. It allows you to:
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Create custom property lists
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Upload your own data into the platform so you can see the data you’ve curated over the years side by side
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Reach out to property owners
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Pinpoint specific properties that fit your investment criteria, if you’re looking for off-market transactions
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Create a lasting relationship with clients and prospects
Reonomy gives you 3 subscription plans to choose from:
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Basic $34/year
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Pro $127/year
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Pro+ $297/year
The main difference between the 3 is the access to premium features like searching for the true owner name and lender and owner portfolio, as well as the number excel downloads and property owner details per month.
Let’s Recap
Reonomy is a software that makes the lives of brokers, lenders and investors easier by helping them to find a deal and presenting commercial real estate information in a straightforward manner.
As of now, we can give credit to the Public Records department for putting information in GIS maps online – making everything a bit easier. However, users are still unable to filter and export data.
Reonomy’s leading filtering features helps investors save precious time by putting the leads right in front of you. Time is gold – time is money.
We’re pretty sure you’d rather spend your time acting on leads than manually copy-pasting information from Public Records for weeks.
Talk to Us
Tell us about your experiences with commercial investing? Have you used this program? Share below.
Don’t jump in blindly. If you’re moving from residential to commercial, make sure to study it carefully. Find a mentor and learn the trade before plopping down money.
Focus. Try not to do residential and commercial at the same time. When you move from one to the other, stick with the one you are working on.
Walk the walk. Data can be very helpful, but don’t rely completely on it. Walk the properties. Talk to people. Your gut is very powerful as well.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.