I’ve written about the benefits of flex space real estate many times, however, one question that continues to arise is whether flex space is scalable or not. The short answer is: yes! Keep reading to see how and why this asset class is one that can be rinsed and repeated all over the country.
What does it mean to scale your business?
Scaling means growing your business in a way that won’t negatively impact your bottom line. This means that in order to successfully scale, you need the right systems and infrastructure to actually grow your business. I’ve spent the past eight years looking at how to develop the right systems and processes in order to create a formula for developing flex space that can be successfully replicated over and over across the country.
If you’re a longtime follower, you’ve seen me do this right before your eyes. If you haven’t, check out this video to get the quick version.
I’m on a journey to make my company, Hamza Invests, a billion dollar company — and I’m getting there by following the exact process I teach in my mastermind, Flex Space Untapped. With that in mind, let’s dive into exactly how scalable flex space real estate is.
Scaling flex space real estate
The first thing to know about flex space is that it is very easy to get into. The barrier of entry is low, thanks to the strategies and process I apply when building these large industrial developments.
The strategy I use is called phase-out development. This means that I buy one sizeable piece of land and construct one building at a time. This allows me to put all of my resources into completing one building and leasing it out as the others are constructed.
Flex space is the only asset class where you can buy one large piece of land and never have to worry about buying land again, simply because you can build one space at a time and go from there. If you were to compare this to residential properties, you’ll quickly see this is simply not possible.
Each building in a flex space development can have up to six tenants; this also cannot be replicated in residential real estate. If you were to apply this same degree of scaling in residential real estate, you would have to buy one home in every zip code in America — or buy an entire neighborhood, which has its own set of problems.
So you’ve built one — now what?
Once you build your first flex space development, all you need to do from there is rinse and repeat the exact same process again and again. Unlike residential real estate, you don’t have to take into consideration different floor plans and exteriors of houses when looking to scale your business — with flex space, it’s much simpler. Each tenant has an identical floor plan, and they create their custom build-out on their own. The only thing you need to adjust in each development is building size.
The best part about this is method is that you can literally repeat this process all over the country with the same design.
Will each state have different things to consider? Yes.
Is the demand for this product high? Absolutely, yes!
Submit a Comment
Your email address will not be published. Required fields are marked *
Syndications and funds
As an investor, it’s important to keep an eye out for investment opportunities in a wide variety of projects. Two methods that allow investors to diversify their portfolio with larger and more lucrative projects are syndications and funds. In this blog post, we will explore the benefits of syndications and funds, and how they can help investors achieve their financial goals.Read More
When considering a Flex Space development, it is important to be well-versed in the different factors that affect an investment. In this blog, we’ll discuss different types of investors, considerations, and strategies associated with Flex investments.Read More