What strategies can real estate investors use to successfully transition from investing in single-family homes to commercial properties?

In episode 709, host Taylor Loht sits down with Adam Craig, the founding member of CLE Real Estate Group, to discuss his journey from single-family investing to non-residential commercial real estate. Adam shares valuable insights on how he navigated the challenges of transitioning to office and retail properties, the importance of aggressive marketing, and the advantages of managing commercial properties compared to residential ones. Throughout the conversation, Adam emphasizes the significance of buying right, finding the right tenants, and adapting to market conditions to succeed in the commercial real estate space.

[00:00 - 05:53] From Single-Family Homes to Office Buildings

• Adam's journey from owning 70 single-family homes to purchasing his first office building
• The impact of the pandemic on Adam's first leasing experience
• The realization that success in leasing during the pandemic could lead to greater opportunities

[05:54 - 10:22] Filling Office Vacancies

• Strategies for finding tenants: using Facebook marketing
• Offering nice buildings at competitive prices to attract tenants
• Raising private money for acquisitions and the importance of building a strong network

[10:23 - 15:44] The Art of Buying Right and Adding Value

• Focusing on value-add properties 
• The range of rehab projects, from simple upgrades to complete renovations
• Balancing the intensity of rehab with the potential for increased value

[15:45 - 23:09] Diversifying with Retail 

• Breaking large spaces into smaller units to attract more tenants
• The resilience of smaller retail tenants despite the challenges faced by larger players
• The suburban Cleveland market and the differences compared to major metro areas

[23:10 - 26:07] Lessons Learned and question round

• Recognizing the intensity of single-family investing and considering alternatives
• The value of mentorship and learning from experienced investors
• The wisdom of slowing down, enjoying life, and spending time with family

Quotes:

"It takes a lot of work, but when you can turn a $500,000 investment into a $1.5 million investment in a two-year period, it's worth the effort." - Adam Craig 

"The good thing about real estate is there's so many avenues you can take." - Adam Craig 

Connect with Adam Craig: 

Website: https://www.cleinvest.com/

Instagram: https://www.instagram.com/adamtheinvestor/

Apply to Invest with Taylor at www.investwithtaylor.com

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

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