Over a year ago, I wrote a blog titled, “Piece of the Pie.” I told the story about my first CRE investment deal, the iconic Vescio building in Dinkytown. Using the metaphor of pizza (my high school English teachers would be proud! 😆), I related CRE investing to everything pizza. This week, I thought I’d check in to see how the slice is tasting!
1. I know many of you may not have ordered (invested in) a piece of the CRE pie yet. Maybe you stay away because you don’t know enough about it. Maybe you’re not sure you have the money to jump in. Talk to a broker experienced in commercial real estate investing. With the right connections and advice, there are ways to get a piece of the pie.
2. Good thing I love pizza And I want another slice! Through CEG Investments, we continue to buy, lease, and sell properties through different investment groups and partnerships. Our ROI has definitely exceeded my expectations. After my first deal, my return was so good that I had to keep going. I did a 1031 (which avoids some taxes) and invested the return in the second deal. Like dough on a thick crust pizza, my initial investment keeps growing.
3. Do you order off the menu, customize your pie, or make your own? As with ordering or preparing pizza, in CRE investing control the toppings. What type of asset do you typically choose? Do you have a plan of when to buy, hold, or sell? Are you sharing with a group, getting one slice at a time, or ordering the whole pie for yourself? With paper assets, you can get lucky from time to time, but you have zero control (unless you’re a politician 😉). With CRE investing, your sense of control depends on your understanding of the business.
4. How many times have you been asked, “What kind of pizza do you want?” There’s a sense of community with pizza that can be the same with commercial investing. I encourage you to talk with people you know. Who has an interest in commercial real estate? Who is looking to diversify their investment portfolio? Who wants to learn something new? Who wants more control over their assets?
5. If you’re not invested in commercial real estate, what’s stopping you from “ordering”? I would love to hear your feedback and address concerns in another blog. Add a comment, DM me, or send an email.
Conclusion
Understanding is the key to deciding whether a CRE investment is risky. Luckily, there are brokers and investors that can help you know more. A physical asset, like a building, is something you can touch, see, and smell. It may not smell like a pizza, but it can be just as good.
Please take a second to answer the following question for our research. The poll is anonymous.
Do you currently invest in commercial real estate?
Yes
No
At CEG, we’re here to help! Email our team at hello@cegspaces.com or call 612-788-1552 if you have any questions. You can find me at 612-428-3333 or jeff@cegspaces.com.
Jeff Salzbrun is the owner/broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
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