Business Model
Retail
The retail niche is vast. How big? There is around 23 square feet of retail space for every single person in the U.S. This giant amount of shopping space is spread out over a variety of structures: strip shopping centers, shopping malls (both indoor and outdoor), big-box retail and small boutique retail areas. Retail options are found in both large metro markets as well as small towns. And they come in a huge variety of investment sizes.
Retail has faced an uphill battle since the advent of the internet, and occupancy and rates has plunged in some markets. To many, this is actually a buying opportunity for those who can find adaptive uses for these spaces.
Rent Land
Marketing
Re-Investment
Business Model
Retail
The retail niche is vast. How big? There is around 23 square feet of retail space for every single person in the U.S. This giant amount of shopping space is spread out over a variety of structures: strip shopping centers, shopping malls (both indoor and outdoor), big-box retail and small boutique retail areas. Retail options are found in both large metro markets as well as small towns. And they come in a huge variety of investment sizes.
Retail has faced an uphill battle since the advent of the internet, and occupancy and rates has plunged in some markets. To many, this is actually a buying opportunity for those who can find adaptive uses for these spaces.
Rent Land
Marketing
Re-Investment
Pros
True contrarian investment as most people are fleeing this sector = low competition
Solid demand in the best locations
Opportunity to buy cheaply and succeed if you can rent the space
Once-in-a-lifetime ability to buy assets at low price levels
Cons
Huge risk of vacancy due to impact of internet on retail
Hard to get financing
“Hot” areas of town are constantly changing and leaving some properties in the lurch
Difficulty in finding tenants
Low cap rates which do not always account for the risk involved
Market Research
Articles & Reports
THE INTERNET ANTIDOTE: THE COMMON STRIP CENTER
In many ways, the biggest casualty of the rise of the internet has been the retail sector. When a consumer buys a product on Amazon they are effectively electing not to buy that item from the local retail store and that lowers revenue for the merchant. While big malls...
THE DANGERS OF THE COMMON STRIP CENTER FROM AN INVESTMENT PERSPECTIVE
Investing in strip shopping centers has been a productive market segment for decades. However, there are some issues with this real estate sector that require some special consideration to ensure that it will meet your investment needs. So what are the dangers to...
Education
Books & Courses
Before you risk any capital, your first step is to learn everything you can about how to profitably invest in this niche. To accomplish that, there are both free resources as well as books and courses to aid in your quest for mastery of this real estate sector. We recommend that you take advantage of every opportunity to learn as much as possible before you invest your time and money. The most important trait of a successful investor is being able to quickly separate deals into a “might be an opportunity” stack versus a “not an opportunity”, as well as know the steps to conducting superior due diligence. In niche investing, knowledge is power – so get as much of it as you can.
Providers
Brokers & Lenders
No buyer can succeed without assistance from those who can source deals, as well as finance them.
Brokers are an important part of finding properties to buy. This is their specialty, and they typically have listings that are both “public” as well as “private” (those that they are not allowed to reveal to the public due to restrictions from the seller). Successful buyers contact all of the brokers in their niche to see what listings they may have, as well as to get set up in their email database for announcements of new listings. For a complete list of these brokers, CLICK HERE.
Lenders are the key to successful real estate investing, as it is through the sensible use of leverage that rates of return are maximized. Banks generally all follow the same basic lending principles, but there are certain facts regarding each niche that have to be explored. In many cases – on deals of $1 million or more – you should explore using a loan broker (also known as “capital consultant”) to obtain a loan for you for a fee. This is extremely important on CMBS “conduit” debt and Fannie Mae/Freddie Mac “agency” debt. On deals under $1 million, you should focus on seller financing as well as local banks that know the market and are aggressive in lending to their base. For a complete list of lenders in this niche CLICK HERE.
OUR MISSION
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