Looking to diversify wealthy families portfolio in commercial real estate
This is a burner account, 

So my family(dad) has made some good money over the past 20 years owning his own business. Up to several million in residential properties and a few more million just in liquid assets. Right now, the only thing that makes money are the assets in the stock market, therefore we are looking towards the future and thinking of moving some assets into income producing properties. 

We are primarily based out of the Boston region and looking to see where and who would we talk to in order to start this process.
[{"id": "ivf46on", "text": "It really depends on what your goal is, but if you want genuinely sound advice, start putting out the feelers now. There are always good deals to be had. However, CAP rates have barely moved even though the Fed has bumped rates 300 basis points. Traditionally, investors expect a similar yield on their properties, that delta between CAP and interest rate should be relatively constant (there are dozens of variables that impact individual properties beyond interest rates, but it is a dominant one). All that to say, with time we will see more sellers come to the realization that 2021 prices are gone, prices should come down, and it will benefit long-term buyers. How experienced are you guys with CRE?", "replies": [{"id": "ivf5916", "text": "Most of our experience with real estate comes from residential, as in build and sell. \n\nBy feelers, do you mean feelers for agents or something else?", "replies": [{"id": "ivf6279", "text": "If you don\u2019t have a strong background in CRE I would say the feelers are more likely to be brokers early on. If you find a good broker they end up making you more money than they ever cost to sell something for you. Some of my best clients are mega owners who other brokers hate working with. I personally like them because they are honest almost to a fault; it saves me time and helps me get them what they actually need, but that takes a serious track record to establish that trust. \n\nYou are in a great and tough spot. Tough because you are going into a market with a lot of volatility and most brokers will tell you anything you want to hear to get a paycheck right now (and especially in the next year); it\u2019s getting ugly for most of us. \n\nYou are in a great spot because it\u2019s going to be a sexy time to buy very soon. The best part is you don\u2019t NEED to buy right now (not in a 1031). So you can be that difficult client that only buys fantastic deals for themselves. \n\nIf you want any advice on the macro/ more nuanced level feel free to DM me. I don\u2019t charge for chats and my book of business is nearly full despite the market challenges, so I don\u2019t have a pressing need to slam you guys in an \u201ceh\u201d deal for me to get another paycheck.", "replies": [], "depth": 3}, {"id": "ivf9rwe", "text": "If you want a higher level of service in my experience find a smaller to mid sized brokerage. They are more willing to work hard to do as much business for you as possible if you are going to be a good long term client to them.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivf6lmw", "text": "Take your time. Engage a knowledgeable broker in your area. Find the right deal you like. You make your money when you buy it.", "replies": [], "depth": 1}, {"id": "ivfaqfp", "text": "Former commercial real estate appraiser, owner of business managing medical office building assets, and financial planner for a wealth management firm here. If your dad already has assets tied up in residential real estate, please consider sticking with equities and fixed income rather than commercial real estate. He can be broadly diversified and would have no management issues as he approaches retirement. \n\nIf he moves into commercial real estate, he\u2019s concentrating his wealth in one asset class, real estate, which is not recommended. The risk-to-return is not logical. \n\nIf he wants CRE exposure, look at publicly traded REITs for a limited portion of his portfolio.", "replies": [{"id": "ivi4jg1", "text": "I\u2019d go the REIT route myself", "replies": [], "depth": 2}, {"id": "ivpw7o2", "text": "We're not looking to refocuse, but rather to diversify income streams. Also we wish to use the tax benefits that owning income producing properties has.", "replies": [{"id": "ivrdaim", "text": "If you'd prefer to be hands off but still want the tax benefits, maybe consider being a limited partner and investing with an experienced sponsor/general partner rather than buying your own property.  \n\n\nThere are some crowdfunding platforms you could look into - CrowdStreet, Realty Mogul, Fundrise, etc...or look for some CRE investment firms in your region taking on private investors and see if you can get on their list.   \n\n\nGood luck!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivfe6gu", "text": "You'll want to interview a number of brokers for each asset class and ask for proposals on each specific property you're looking to sell. Usually you get different brokers for each asset class. You'll want to be very informed on the market before you pick someone though.\n\nThis isn't a location I work in, but if you'd like I'll pull up a Costar Market report for you. That will give you a idea of what things are selling at and what rates are like, and it will tell you what brokers are the most active in the market. Give me the location (specific neighborhood area), asset class, and shoot me your email and I'll send that over to you.", "replies": [], "depth": 1}, {"id": "ivfwneb", "text": "Are you looking to own and manage yourself, or looking to invest with an experienced person and be more hands off?", "replies": [{"id": "ivge5nx", "text": "This is an important question to answer.", "replies": [], "depth": 2}, {"id": "ivpvvqk", "text": "Definitely hands off.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivg6r7w", "text": "The sharks smell blood on this post. Careful!", "replies": [], "depth": 1}, {"id": "ivgmxq6", "text": "Land leases are great if you just want to collect a check but don\u2019t want any maintenance.", "replies": [], "depth": 1}, {"id": "ivi45bd", "text": "Eat a dick and feed that dick to your dad", "replies": [], "depth": 1}, {"id": "ivi5crv", "text": "An associate of mine was in the exact same position. Family did well in Boston and he was working to expand on it. He ventured into real estate with family backing and has produced a health return. For his position, the longevity and reliability was more important than massive profit. He made low risk investments in NNN properties and likely set up his family for generations.\n\nI\u2019d be happy to elaborate if you want more detail", "replies": [], "depth": 1}, {"id": "iviipye", "text": "Dm for Canadian Opportunities. Have a recession proof opportunity coming up soon", "replies": [], "depth": 1}, {"id": "ivin37u", "text": " Highly recommend you don\u2019t email any brokers\u2026 they will tell you what you want to hear to get a deal done and earn a commission. Just spent the last 11 months doing exactly what you\u2019re talking about. Happy to share my 2 cents. DM if you\u2019re interested.", "replies": [], "depth": 1}, {"id": "ivj9y20", "text": "I am a retired residential real estate broker. I built up a portfolio of residential and some routine commercial real estate over the years. About 5 years ago, I sold off some of both and went into NNN fast foods and oil change properties. I absolutely love that I don\u2019t need to do anything. It\u2019s a lower return, but my quality of life has been upgraded immensely since I no longer have to deal with routine day/day property management with the NNN tenants.", "replies": [{"id": "ivpwfan", "text": "How do you ensure the tenant won't just up and leave? I saw a bank NNN for sale a few years ago, but the bank just left after the property transacted.", "replies": [{"id": "ivqiotf", "text": "Nothing is guaranteed in life. You want a solid tenant and you want to see their financials so you know that they\u2019re making money at that location. You want several years left in the lease and you want a solid guarantor. But- nothing much in life is really guaranteed.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivjtrmg", "text": "It really depends what you're looking for.  If you're looking to parking some cash with minimal mgmt I'd consider looking into Triple Net Retail properties.  You can focus on A rate, corporate backed guarantee tenants where your not at risk of losing the tenant.  You can reach out to regional offices for the bigger commercial real estate firms if this is the case.  \n\n\nIf you're looking for deals with upside where you can still add some value and while its bringing in some cash flow that may be harder to find.  As others have mentioned Cap Rates haven't moved as the rates have so finding something that's cash flow positive, with some value add component could be hard to come by.", "replies": [], "depth": 1}, {"id": "ivkniqj", "text": "Cardone capital.\n\nEnjoy the 2% returns lol\n\nIf you want a no-management no head-ache property that will give you a return get a NNN with a corp signature.", "replies": [], "depth": 1}]