Residential vs Commercial Investing | |
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By Mark Hulsey
A common scenario: A lovely husband and wife team own a handful of rental properties - a couple single family homes and a few duplexes. They’re so excited about the equity position they’re sitting on today as they’ve watched the values of their properties shoot to the moon. In fact, their investing success is so remarkable, it’s time for the big league, ready to swing for the fences and build serious wealth with commercial real estate investments.
I don’t blame them. Those of us who’ve been knee-deep in tenants, toilets and trash, naturally begin to think, “Hold-on, there’s got to be a better way.” They hear about those incredible passive income opportunities in commercial, with long-term leases, tenants paying all the bills, doing all the repairs, and it’s off to the races. It’s time to be a commercial investor.
Hold the phone - it’s not quite so simple – far from it. Results Commercial has spent decades counseling seasoned, successful investors on how to build a stable income-producing portfolio. How to effectively use 1031 tax exchanges, how to leverage equity for growth, build a strong investment team, and “How to Manage the Manager.” Results in Real Estate (our YouTube channel) has a huge library of videos on all of this and more. But let me cut to the chase, save you a little time, and give you the moral to this investment story.
Section II Continued Below...
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SUCCESS STORIES
FEATURED SOLD
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Betty Danger's (Buyer Rep) - SOLD!
2501 & 2519 Marshall St NE, Minneapolis, MN
$3,500,000
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City of Sartell Land Sale - SOLD!
Champion Plot 80 Acres
Price Undisclosed
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University of Minnesota Multifamily - SOLD!
Minneapolis, MN
$2,700,000
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SUCCESS STORIES
RECENT DEALS
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Standalone Office - SOLD!
Prosperity Ave, St. Paul
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Office/Retail - PENDING
Minneapolis, MN
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Multifamily - SOLD!
Ashland Avenue, St. Paul, MN
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Wedding & Event Venue (15,000 SF) - LEASED!
Gilbert Building, St. Paul, MN
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Downtown Office - SOLD!
Jackson Street, St. Paul, MN
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*2024 CoStar Realty Information Inc.* | |
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Big Thanks to Our Referring
Agents & Partners!
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Mark Hulsey and Results Commercial Group would like to sincerely thank all of our amazing agents and industry partners for your continued support & referrals for over 20 years!
Thank you and Happy Holidays!
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Residential vs Commercial Investing | |
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By Mark Hulsey
Section II Continued from above...
You need capital. Lots and lots of capital to play on our side of the fence. You need experience, lots and lots of know-how, or a highly experienced team to protect you from the feeding frenzy out there. Yep, you’re swimming with the sharks. There’s nothing fast, easy or simple or affordable about commercial investment real estate today. I promise, you do not want to feel the burn of a commercial recourse loan in default, another tenant lawsuit, the compliance list from the City that will drain every IRA and savings account, or the never-ending vacancy that was so close to being filled for the fourth time.
Remember that lovely couple that couldn’t be more proud of the wealth they’ve built through their modest residential portfolio. They’re thrilled to have equity of $425,000 today and ready to leverage it into commercial investments. Sounds smart – so, what’s the problem?
Commercial real estate isn’t just expensive to purchase, it’s insanely expensive to build-out for tenants, plus taxes and insurance are nuts today, repairs and maintenance are through the roof, the Manager keeps over-charging for everything, while the retail storefront and office spaces still sit vacant.
Section III Continued Below...
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Why Results Commercial?
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10 Steps To Sell
Your Commercial Property
(Part 1)
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Results Commercial Experience:
Track Record with Mark Hulsey
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How to Value
Commercial Real Estate
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Viking Lakes 3.5 Acres
Redevelopment Site
Eagan, MN
Price Negotiable
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Elk River Development Land 132.55 Acres
Elk River, MN
$1,990,000
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Class A Turn-Key - 9,666 SF
Bar & Restaurant I Event & Retail
Downtown St. Paul, MN
For Lease - Negotiable
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80 Units Multifamily
Andover Park Apartments
Rochester, MN
$6,395,000
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Eastside Depot - Storage & Distribution Site
Fairmont, MN
6.13 Acres & 1.45 Acres
$2,700,000
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The Coolest Cats at Results | |
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Sully
Sully, a silver Persian, has an attitude that matches his good looks. Brother to Louie.
Proud Owners: Mark and Nancy
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Sprinkles
Sprinkles is a hefty companion that spends most of the day either eating or sleeping. He loves everyone and is really almost a dog.
Proud Owners: Nolan's Family
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Tippy
Tippy has a great sense of humor, runs from her own shadow, favorite things are sleeping, chasing nerf darts and running under the covers when we make the bed.
Proud Owners: Doug, Marsha, Dalton
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Echo
Echo is a young cat that loves all the attention he receives in St. Cloud. Echo loves hanging out with all the sports teams and chasing mice.
Proud Owners: Nolan's Soccer House
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2641 Girard Ave S
Minneapolis, MN
7-Unit Multifamily
$1,449,000
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212 Ridgewood Ave
Minneapolis, MN
Mixed Use: 3 Apt + 6 Offices
$1,195,000
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5500 W Broadway Ave
Crystal, MN
Owner/User or Redevelopment
No Automotive Use
$1,225,000
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521 Snelling Ave N
St. Paul, MN
Affordable Office/Retail
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33.02 Acres Residential Development
Big Lake, MN
R1 & R3 Zoning
$1,100,000
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Residential vs Commercial Investing | |
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By Mark Hulsey
Section III Continued from above...
Bigger is not better. Commercial is not better than residential. It’s different. Yes, there are some big-time benefits to commercial investing but it’s not for the newbie, faint of heart, or under-capitalized investor. It’s often a much better strategy to continue to hold that little residential portfolio with cheap debt in place, than to believe the grass is greener over here. But don’t take my word for it - run the numbers yourself, you’ll quickly see what I mean.
If that husband and wife team continues paying down their mortgages, continues to allow depreciation and appreciation to do their thing, puts the best resources in place to make their side hustle a little less hustle, a little more passive, they might be in a position to 1031 into a net-lease (NNN) opportunity a few years down the road. Then, they’ll appreciate their “mail-box money” as they’re relaxing on the beach without the phone ringing again about another leaking toilet from their tenant’s boyfriend who’s not on the lease.
If you need assistance with commercial and investment real estate, we’re here to help.
Mark
Contact:
Mark Hulsey
mark@resultscommercial.com
651-755-2068 mobile
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Getting Personal
With Results
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Mark Hulsey racing for MN Team Triumph | Sawyer Hulsey, Master Outdoorsman | |
Nolan Pratumwon, College Soccer Grad | Doug Harris & Family in front of Big Ben | |
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2nd Level Office Space - For Lease
500 West 98th Street
Bloomington, MN
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Office Condo - For Lease
1359 Preserve W
Burnsville, MN
1,800 SF
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Warehouse Space - For Lease
678 West 7th Street
St. Paul, MN
11,100 SF
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WHAT OUR CLIENTS ARE SAYING
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“Hayden Hulsey, CCIM and Mark Hulsey did a spectacular job in helping us sell our commercial property off-market. The results were better than we ever thought they would be.”
Gary Cooper
Seller/Owner
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RE/MAX Results Commercial Sells & Leases Commercial & Investment Properties
We Are Seller-Focused
Multifamily, Net-Lease Investments, Retail, Office, Industrial, Land
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Mark Hulsey | Managing Broker | 651.256.7404 | 651.755.2068 | mark@resultscommercial.com
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RE/MAX Realty Team: Florida
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