Here is a site that offers commercial listings online: http://www.rebuz.com/Directory/eBrokerage%20-%20commercial.htm
As for the financing most strip center loans are to high for local banks which prefer loans of less then 1mil to a single client. The norm is 20% to 25% down depending on cashflo , debt service 1.25, vacancy 5% to 10% and a cap rate of about 10.5%. The owner financing idea brought a smile to my face and a shake of my head. This type of property is not for the newbie investor. If you dont have the deposits to carry you when you loose a tennant, even if you get one quickly the build out time to install them will put your center in serious trouble with your lender.
I am looking forward to buy small strip malls in TEXAS? I was wondering about couple of things…
Where to learn more about renting out strip malls/retail centers. Basically looking for some education? I have started reading a a lot on this site- Excellent info. Are there any good books for this specific type of investments?
Where to access- “strip malls/retail spaces for sale” info. Does MLS have this kind of info? I have to go to different broker’s website to find a rare one listed. I was wondering whats the best approach and also Is there a ONE STOP SHOP information place for these kind of properties?
3)With not a whole lot of cash in pocket, Is owner financing the only to survive in this arena or BANK do offer loans easily?
Any info is appreciated?
More questions will follow
Thanks in advance for your time.
Green
I would echo Don’s comment below about these properties not being for the new investor. Major vacancies are usually not filled with a classified ad… it takes market knowledge and contacts to keep a center performing. Reserves are needed to fund upfits and conversions. I wouldn’t recomend getting involved in a turnaround or conversion project without extensive capital and experience.
Add to that the state of the industry. Retail RE is still riding a wave of ultra-high valuations in the face of continually declining fundamentals for tenant retailers. In my opinion, this bubble will be the last to pop, and perhaps the loudest. market conditions are perhaps the one most important factor in the future of a retail center.
That said, I wouldn’t discourage beginning investors from looking. Smaller properties with local tenants can be very profitable. Just be very careful to thoroughly analyze both the property and the local market conditions. The category killer website for listings for all commercial property is www.loopnet.com. You’ll find that most of the large commercial RE brokers rely on loopnet for their own websites.
For a complete library of information about every facet of the retail property business, see the website for the International Council of Shopping Centers at www.icsc.org
