To fully understand and thrive in commercial real estate one has to understand much more than the simple “bricks and mortar” that make up a building. A successful commercial real estate broker (developer, investor, or lender) wears many hats and should have knowledge across a variety of different industries and disciplines.
As many much smarter ‘guys’ than me (and smarter women, too) are reviewing the last year; and struggling with Forecasts for 2019, at this time, there has been a lot of discussion about Fed Policy on rates and their impact.
We think some useful language, is to characterize ‘asset bubbles’ or the asset inflation that these policies may have created as a real thing. Actually, many are referring to this period as the ‘Bernanke-Yellen Asset Inflation’ period.
Challenge #1: Accessing net lease ‘product’ or properties that match a Buyer’s stated criteria. Reproducing the cash flow of their existing asset is a point of departure, only. Then, we need to establish “What is a risk-adjusted return?” OK, you say, you want a limited risk new investment. No problem; but since the Great Recession with most compressed cap rates in memory (Higher prices), we have to sort through the “Net Lease Wheat from the Net Lease Chaff”. Continue reading The 1031 Net Lease Broker Conundrum
Mike Marmis is the Managing Director of YAM Capital, a Commercial Real Estate bridge lender. YAM Capital is a privately held bridge lending firm with a focus on lending to Arizona Commercial Real Estate. It offers structured and funded bridge loans from $2M to $50MM and prides itself in expediency and certainty of execution. YAM Capital is part of American entrepreneur and philanthropist Bob Parson’s YAM Worldwide group of companies.
LD: What career path did you want to take when you were in college?