There is this fantastic lie out there that says the real estate market is perfectly efficient and most existing assets trade for their intrinsic value.
The truth is that the buyers who are hustling and reaching out directly to sellers are buying extraordinary deals every day.
The truth is that the buyers who are hustling and reaching out directly to sellers are buying extraordinary deals every day.
For example, we bought a building back in November for $3.2M, we are in the process of re-leasing it to a new tenant at a price that will make it worth $5M+/-.
We are closing next week on a building for $5.8M that is vacant and market rents are $535k per year NNN in a market that is 96% leased up. We are literally buying a Class A, 2016 build industrial building at a 9 cap. (Not to mention the free lot next door that we are getting too)
We bought a building back in June that had 11 acres of land and only 3 acres was used by the existing building. 5 years remaining on the lease at a 7.8 cap. The land was essentially free. Spent $9k splitting it off and now have a 7.x acre parcel free and clear worth $800k
We bought another 50k square foot industrial building in October for $4.2M. It was substantially under leased at $6PSF. The market is above $11PSF right now in the area. We just wait out the current lease and we will be collecting $575k per year NNN. A 13 cap on cost.
The point is, the market is NOT efficient. Get out there and hustle. Stop thinking that you must build new if you want to create value. There is far more value to be found by searching far and wide for great deals. Look at hundreds of deals and you will find the diamonds.
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