Harrison Klein is managing director, investments at the Boston office of California-based Marcus & Millichap. He leads The Klein Group, focusing on industrial, office and adaptive reuse opportunities in New England.
Updated: 6 hours ago
Advice
5 Things I know about ... How business owners can invest in real estate
By Harrison Klein
5) Be your own tenant by purchasing a building and leasing it to your operating company. For those afraid of managing tenants, this is the obvious choice. You’re likely already dealing with space for your building; you might as well own it. Bonus points if you can buy your current space off your landlord.
4) Buy investment property locally. You’re aware of what space would lease well to businesses in your industry. If you’re an attorney, buy a professional office building. If you’re a doctor, buy a medical office. If you’re a manufacturer, buy a warehouse. Maybe you prefer the security of residential property and decide to start out by buying a triple-decker.
3) Invest in real estate limited partnerships. Limited partnership investing allows you to contribute capital, typically $50,000 -$250,000, into a real estate investment managed by a professional real estate operator. You get the benefits of real estate ownership, avoid the headaches, and leverage the skills of skilled investors.
2) Buy a vacation home and rent it on Airbnb or similar services. This method of investing can combine leisure and profits. With a good manager, this type of investing can be enjoyed with minimal headaches.
1) Buy real estate with a partner. Want to own your space but don’t want to be a solo landlord? Partner with someone that wants to be a landlord and property manager. Love that $5-million building but don’t have enough money? Combine resources with friends, colleagues, or professional investors. Partnerships can be a terrific way to own the space you occupy without personally taking on landlord responsibilities.
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