I am a new investor trying to develop commercial propery, what are the safest estry plays?

I am looking at the Rio Grande Area in Texas. We have a lot of foreign (Mexico) clients so I am looking into retail. Have a $ 500,000 liquid equity at my disposal.
In Buying Property - Asked by pedro o. - Aug 27, 2009
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Answer(s)

Sean D. L.
Broker/Agent
Scottsdale, AZ

Personally, I would recommend that you consider investing in newly developed retail properties leased to investment grade tenants instead of developing new product.
In this market, the development risk/reward ratio just doesn't make sense (too many deals are selling at below replacement cost and you could find yourself in the same situation). On the flip side, this has created incredible buy-side opportunities (e.g., brand new Walgreens at or near 8.0% cap rates - these are generally priced between $3.5 mm and $5.5 mm). Smaller price point opportunities include AutoZone ($1 mm to $2 mm, generally). With $500,000 in equity, an new 15 to 20-yr, NNN leased AutoZone may be perfect. Feel free to visit my website to learn more about these types of opportunities and my services (I specialize in representing investors looking for net leased properties nationwide).

Aug 27, 2009
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JEFF S.
Broker/Agent
Colorado Springs, CO

The market anywhere in the USA is very tricky right now - Your most difficult issue right now is lack of (or willingness) of lenders to provide financing. I've been in the business for nearly 30 years (multi-states) and I have thousands of trasactions to back up what I'm saying = is get your financing to gether first! Ask for a lender commitment letter in writing on a "gereric commercial transaction" subject to what ever their willing to write business (loans) on - This is one of the most difficult times I've ever see to get deals done enven since the early 1980's when commercial interest rates were 19 -22%. Don't get me wrong - it's a great time to buy = but if you need much leverage (a new loan) you need to solve for that equation now; before you find a "deal".

Aug 27, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

What type of development? http://www.gregorygarver.com

Sep 1, 2009
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Mani J.
Broker/Agent
Farmers Branch, TX

My name is Derrick Parks and I'm a commercial realtor here in Texas. Send me a email if you need assistance. Triple NNN leased properties do sound like a great buy.
derrick.parks@gmail.com
Thanks

Sep 4, 2009
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