Real estate is one of the many ways in which people diversify their investment portfolios. While most people might turn to single-family homes, townhomes, or condos, another option is to invest in commercial real estate.
While you might hear the term, “commercial real estate” and think that you can’t afford something like that, thanks to companies like First National Realty Partners, investing in commercial real estate is more affordable than you might think.
Keep reading to learn more about First National Realty Partners and how you can start investing in commercial real estate today.
What Is First National Realty Partners?
First National Realty Partners is a real estate investment platform that allows you to invest in grocery-anchored commercial real estate. The company was founded in 2015 in New Jersey. Today, they have 47 assets under management across multiple states including:
- New York
- New Jersey
First National Realty Partners specializes in retail shopping centers that are often anchored by major grocery chains such as Publix, Whole Foods, Walmart, Kroger, Winn Dixie, Aldi, Sprouts, and more.
How does commercial real estate investing work?
First National Realty Partners allows you to invest in commercial real estate, without having to do any of the hard work. They find the retail shopping centers, buy them, lease out the space, and even handle the property management. From there, they offer two different types of investment deals for their clients to choose from.
You can either choose to invest in a single entity, known as an individual real estate fund or you can invest in everything that First National Realty Partners has a stake in. This option is known as an opportunity fund.
What kind of fees do they charge?
First National Realty Partners does not charge any type of start-up fee for opening an account or even for investing. Since they do handle all the day-to-day operations of the property they do charge fees associated with that such as property management fees, acquisition fees, and disposition fees when the property is either sold or refinanced.
Who can Invest in First National Realty Partners?
In order to invest with Frist National Realty Partners, you have to be an accredited investor and will be required to show proof of your accreditation before you can make your first investment.
If you are not already an accredited investor, you can become one but you will need to meet certain requirements to get your accreditation. The easiest way to get accredited is through the “net worth” category which requires you to have a net worth in excess of $1 million.
If you would like more information on the requirements for becoming an accredited investor, including the 8 different categories you can qualify under, or if you would like to begin the accreditation process, you can visit the Security and Exchange Commission (SEC) website.
How do they choose their properties?
First National Realty Partners is very calculated when it comes to the retail centers that they buy and invest in. For starters, they only go after shopping centers that are anchored by large, established national brands.
Their strict approach when it comes to choosing properties is called the Dragnet Acquisition Model. In order for First National Realty Partners to even consider purchasing a property, that property has to meet at least 60 unique requirements. From there the property is evaluated by their in-house real estate professionals.
First National Realty typically holds onto a property for anywhere from 3 to 7 years. At that time they will either sell it or refinance it and pay out anyone who invested in the property.
Is it safe to invest with First National Realty?
While any type of investment comes with risks, it is safe to invest with First National Realty. They have an A+ rating with the Better Business Bureau and have been fully accredited since 2018.
Additionally, if you invest in a property with them and the deal does not fully close or is not funded, you will get 100% of your investment back. This gives you the peace of mind of knowing that you are protected if something falls through.
Is there a minimum investment to get started?
The minimum investment requirement set forth by First National Realty is $50,000. While that might seem high, the potential return on investment can be even higher.
Learn more about First National Realty Partners
While investing in commercial real estate might have never seemed like a viable option, thanks to companies such as First National Realty Partners, investing in financially viable commercial properties has never been easier.
Jeremy Biberdorf is a long-time internet marketing pro turned online entrepreneur and blogger. Check out his investing blog at Modest Money.
© YFS Magazine. All Rights Reserved. Copying prohibited. All material is protected by U.S. and international copyright laws. Unauthorized reproduction or distribution of this material is prohibited. Sharing of this material under Attribution-NonCommercial-NoDerivatives 4.0 International terms, listed here, is permitted.