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Your Financial Pharmacist

Jan 29, 2022

Tanh Truong discusses the differences and similarities between the residential and commercial real estate spaces and why he purchased a five million dollar strip mall. Key Points From This Episode

  • An introduction to today’s guest, Tanh Truong, and his five million dollar investment.
  • The building’s location, size, tenants, and price.
  • How he discovered the deal on a poorly marketed website.
  • The two anchor tenants: Dollar Tree and Loman’s Furniture.
  • What led him to consider investing in commercial property over residential homes.
  • How cap rates are used to measure how well a property is doing.
  • Why a higher cap rate usually means that a property is operating well.
  • Which cap rate you should look for and what you should base this on.
  • The total expenses involved in the five million dollar deal and what this translates to.
  • How bringing tenants into a space and getting the rents up increases the value of the property.
  • How the deal flow differs between single and multi-family property and commercial property.
  • How Tanh had to leverage his partners in order to qualify for the loan he needed.
  • Why traffic count is important for your plaza to actually succeed.
  • Navigating the due diligence phase in commercial investments.
  • Why he sees his role as a landlord as helping his tenants to succeed.
  • How Tanh feels about the future of cap rates.
  • The typical division of ownership among partners.
  • Why Tanh is choosing to focus his energy on the commercial realm.
Links Mentioned in Today’s Episode