As you guys know, I am ALL IN on flex space real estate. A question I get asked pretty often is if flex space real estate really is scalable. Here is the short answer…. YES! Keep reading to see how and why this asset class is one that can be rinsed and repeated all over the country…
Why You Should Scale Your Business
Scaling your business means to grow your business in a way that does not negatively affect your business. This means that in order to successfully scale, you need the right systems and infrastructure to actually grow your business. I spent the past 8 years looking at how to develop the RIGHT systems and processes in order to create a formula of developing flex space that can be successfully replicated and repeated over and over across the entire country. If you are a long time follower you have seen me do this right in front of you, if you haven’t, check out 1-16 Million to get the quick version.
Now I am on a journey to make my company, Hamza Invests, a billion dollar company, and I am doing it using the exact systems and processes I use and teach others in my mastermind, Flex Space Untapped. So let’s get into exactly how scalable flex space real estate really is.
Scaling Flex Space Real Estate
The first thing you need to know about flex space is that it is EASY to get into, the barrier to entry is low due to the strategies and processes I use when building these large industrial real estate developments.
I use a strategy called phase out development. What this means is that I actually buy one giant piece of land, and build one building at a time. This allows me to put all of my resources into completing one building, and leasing it out as the other buildings are being constructed.
Flex space is the only asset class where you can buy one big piece of land and then never have to worry about buying land again simply because you can build one building at a time and go from there. If you were to compare this to residential properties, you would realize that this is just not possible in other assets classes.
Each building in a flex space development can have up to 6 tenants; that cannot be replicated with residential real estate. If you were to do the same amount of scaling in residential real estate, you would have to buy one home in every zipcode of America, or buy an entire neighborhood which has its own set of problems.
So You 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 real estate it is much simpler. Each tenant gets the exact same floor plan, and they go ahead and do their custom build-out on their own. The only thing you would need to adjust per each development is building size.
The best part about this, is that you can repeat this process all over the country with the same design. Will each state have different things to consider– yes, but is the demand for this product still high? Absolutely yes!