Check out the newest multifamily investors podcast in the making the most of your investments series!
If you’re looking at commercial property investment options, today Marcia and I discuss some of the investing options available to you as an investor, and in particular the benefits of a commercial property with Dollar General.
Featuring:
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Making the Most of Your Investment Properties – Part 4
Marcia Edwards: Last program René, we talked about a client of yours who’s benefiting from your knowledge in regards to the 1031 tax deferred exchange, and he seemed to be going from residential property, multi-family, to commercial property, and after the program, we talked a little bit about, who wants to go into commercial and what direction would you go if you had an opportunity to get out of residential management. What do you know about that?
René Nelson: So if you wanna do a tax deferred exchange or even buy commercial real estate as an example, a property that is easily traded and available are Dollar General stores, and the reason that those are so desirable, they’re built on a national level, they’re corporately guaranteed for the lease.
Marcia Edwards: That’s a big deal right there.
René Nelson: It is a huge deal, and that corporation and company is traded at a national level, so they’ve got a Nasdaq and they’re on the stock exchange, so they’re a highly reputable firm, you can look up their assets, you can look up the strength of that corporation. I tend to go for corporate guaranteed leases over a franchisee.
Let’s pick Pizza Hut or Domino’s. Those are a lot of times guaranteed locally by the franchisee, and part of the concern with those is sometimes you’ll see a very successful franchisee, he may own 30 Domino’s or 30 Pizza Huts, and stuff happens. Death, divorce, debt, train wreck economy, so if all of a sudden he gets into a financial hardship, your store that you bought that he is leasing back from you could be in jeopardy, compared to a Dollar General where it’s a big national corporation, and they’re corporately guaranteeing that lease. You’re probably not gonna see that store go dark and you not get a rent payment.
Marcia Edwards: That’s interesting. So getting out of residential multi-family like your investor, we talked about last program is doing, that takes time and strategy and timing to make this effective.
René Nelson: It does, and honestly, it is not for everyone. This gentleman is savvy and experienced and well counseled, he’s talked to a CPA, he and I have met and talked multiple times, I know what his strategies are. He’s looking for a check in the mail, he wants safety and security and a paycheck.
Marcia Edwards: Certainty. Well, to get there, you gotta go from where you are to where you’re going to be through working with René Nelson. So René, give them your number.
René Nelson: I’m René Nelson, and my number is 541-912-6583. Have a fantastic evening.
If you’re considering investing in commercial real estate, René is here to help. To learn more about what options are available to you, schedule a 15-minute discovery call today.
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