Jordan Hidalgo - Build a Long- Term Commercial Real Estate Investment Building a commercial real estate portfolio is one of the most reliable ways to create long-term wealth. Jordan Hidalgo, a commercial real estate advisor, breaks down a strategic approach to building a profitable portfolio. Why Commercial Real Estate Works Stable Cash Flow Multi-year leases provide predictable income streams Predictable Appreciation Property values increase steadily over time Tax Advantages Significant deductions and depreciation benefits Professional Tenants Lower turnover and less emotional volatility This combination makes CRE a preferred asset class for long-term planners, business owners, and high-net-worth investors. Choose the Right Property Type Commercial real estate includes several categories, each with different risk levels, returns, and operational demands. Retail Strip centers, standalone retail, restaurants with steady traffic and strong long-term leases (53 20 years) Office Professional offices and medical spaces with long-lasting tenant relationships when stabilized Industrial Warehouses and distribution centers 4 fastest-growing CRE sector with high e-commerce demand Multifamily 5+ units 4 more recession- resistant with consistent occupancy and rental increases Tip from Jordan Hidalgo: Begin with one asset type you understand. Investors who focus specialize faster and scale sooner. Three CRE Investment Strategies Every CRE investment fits into a risk3reward category. Understanding them prevents beginners from making expensive mistakes. Core Low risk, stable income. Newer buildings with high-quality tenants. Best for long-term passive investors. Core-Plus Slightly older buildings with minor improvements needed. Moderate risk and moderate upside. Value-Add Renovations or management improvements required. Higher risk and higher returns for hands-on investors. Opportunistic Development, major renovations, distressed assets. Highest risk with biggest potential ROI. Requires experience and capital. Jordan Hidalgo's Recommendation: Start with core or core-plus assets. They're stable, predictable, and easier to manage. Master Key Financial Metrics Before buying a CRE property, always analyze these critical numbers: 1 Cap Rate Shows return relative to property value 2 Cash-on-Cash Return Measures actual cash yield based on your out-of-pocket investment 3 NOI (Net Operating Income) Income after expenses 4 the backbone of valuation 4 DSCR (Debt Service Coverage Ratio) Banks require this to ensure you can cover loan payments 5 Market Vacancy Rates Helps gauge stability and demand "A strong investment is one where the financial story matches the property's physical and market reality." 4 Jordan Hidalgo Build a Smart Financing Strategy CRE has multiple financing routes depending on your goals. Your financing strategy should match your investment strategy 4 not just the cheapest rate. Traditional Bank Loans Best for strong personal financials with lowest interest rates SBA 504/7(a) For owner-users buying their own commercial space with low down payments Bridge Loans Short-term financing for value-add deals Private Equity / Partnerships Useful for scaling your portfolio faster Seller Financing Flexible terms, great for beginners with limited credit history Diversify Strategically Focus First, Diversify Later Portfolio diversification comes from experience, not rushing into multiple property types at once. Jordan's Rule: Scale one asset type before expanding into others. Focus accelerates mastery. Different Tenant Industries Medical, retail, logistics Different Geographic Markets Spread across regions Different Lease Structures NNN, modified gross, full service Conduct Deep Due Diligence The Step Most Beginners Skip Before closing, investigate every aspect of the property thoroughly: Physical Due Diligence Roof, HVAC, structure Plumbing & electrical Environmental concerns (Phase I ESA) Financial Due Diligence Rent roll and T-12 statements Historical expenses Lease clauses and renewal options Market Due Diligence Demographics and traffic counts Comparable rents Future city development plans This is where many new investors rely on professionals like Jordan Hidalgo to avoid costly surprises. Your Long-Term CRE Roadmap A real CRE portfolio takes shape over years, not months. Here's a simple framework: 1 Year 132 Buy first property (core or core-plus), stabilize operations, and build equity 2 Year 335 Refinance or leverage equity, buy a second CRE asset, and begin diversification 3 Year 5310 Expand into value-add, optimize portfolio for higher returns, reduce risk through tenant mix and locations Partner With the Right Advisor Many investors fail not because they bought the wrong property 4 but because they didn't have the right advisor. A CRE professional like Jordan Hidalgo helps you with: Market selection and deal analysis Lease evaluation and due diligence Property positioning Long-term portfolio planning Investors who use strategic advisors typically scale faster and avoid costly pitfalls. Ready to Start? Building a long-term commercial real estate portfolio doesn't require millions of dollars 4 it requires a smart plan, disciplined analysis, and expert guidance. Reach out to Jordan Hidalgo for personalized guidance and deal opportunities. 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