Episode 66
Buying and Selling Commercial Real Estate with George Kalta
In today’s episode, we are joined by Commercial Real Estate expert, George Kalta. He discusses his experience buying and selling commercial real estate and how he runs his business. Rarely owning a property for over a year, he discusses his strategy for buying and looking for properties in a building. We also discuss franchises and whether they are a good business decision.
IN THIS EPISODE:
- [7:06] Introduction to George Kalta and his background.
- [9:30] What are the growth factors for commercial real estate?
- [13:33] What is a CAP?
- [15:11] What are the risks with buying industrial property and renting it out?
- [16:38] What is the strategy with franchise businesses?
- [20:05] How does George run his business and make purchase decisions?
- [25:33] What mistakes has George made that ended up being a success?
- [28:33] With the internet, do you think more people will buy through searching online or will still want to see the properties in person?
KEY TAKEAWAYS:
- 3 Things to look for to decide if a commercial property is the right property: 1. Resale potential, as well as how quickly you can get tenants in. 2. Physical aspects of the property: assess the land, room for growth, and off-street parking situations. 3. Price – will you make a 20% mark up after paying commissions and escrow?
- When looking for a good broker, look for someone who will watch your back if you make a mistake, who is responsive, willing to put things in writing, and makes showings easy.
- Buy real estate individually, do not buy in a partnership. Things can get messy when someone wants out of the partnership, repairs need to be made, or any other items that arise with the company. It’s unlikely everyone will come to the same conclusion on the decisions.
BIO:
George Kalta is primarily an investor based out of the Westlake Village, CA, area. He connects with investment and non-investment properties.
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