Mike shares that within his company are 3 divisions; the commercial division, the franchising division, and their fund.
Josh and Mike explore the advantages of commercial investing over residential. Mike shares his insights about how he realized he couldn’t scale the way he wanted in the residential market. He shares that residential investing is also harder because it’s competitive in most major markets. You have to strategize hard to find deals. Mike shares part of why he loves working in commercial real estate; you’re usually dealing with entrepreneurs, go-getters, and like-minded business people in the space. To him, this is more exciting than working in residential real estate. Not to mention that you’re usually only contacted by your tenants during business hours – not weekends and holidays.
Mike shares that his company watches trends, but nothing changes his company’s ability to find deals. Mike has seen all of the recent real estate swings, and shares that they usually get better deals during harder times because there are less buyers on the market.
He also shares that there's a discrepancy between perceived risks and true risks – always play things by the numbers and look at data analytics, don’t just follow the media’s trends. Mike talks about how he scores amazing deals in times of inflation and economic hardship.
Mike is excited to share the value-add investing strategy at his company. He only buys underperforming properties – assets that have net-income that's depressed for some reasons. There are 2 types of problems with these properties: people problems and property problems. “People problems” can be with owners, tenants, etc. “Property problems” are issues with building maintenance, etc.
Mike shares he doesn’t invest in properties that are businesses within the real estate vertical. If it’s a niche property, like mobile homes, mini-storage, or what have you, you need to be proficient within those niches to be successful.
Mike’s company also pushes creating an amazing online experience for buyers. Images should be professionally taken, there should be a solid and succinct sales processes, leases should work digitally with e-signatures, and more. If you alleviate the inconveniences of leasing by having an amazing digital system, you start to alleviate the vacancy issues.
Learn more about Mike’s book, Commercial Real Estate Investing at https://www.commercialinvestingmastery.com/book-offer-page.
Check out Commercial Investors Group at https://www.commercialinvestorsgroup.com/.
Check out Mike Sowers on LinkedIn at https://www.linkedin.com/in/mikesowers/.
Check out Commercial Investors Group on LinkedIn at https://www.linkedin.com/company/commercial-investors-group/.
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