As a real estate broker, Ross Thomas is always on the lookout for a good deal for his clients. So it seemed only natural to do the same for himself. Thomas, a partner at industrial real estate firm Delphi Business Properties, has been investing in properties for his own portfolio almost since he started out as a broker, and his holdings have grown to 650,000 square feet. Like his brokerage business, Thomas’ personal investments are industrial properties. And the synergy between his vocation and his avocation has helped him not only to find the right investment opportunities, but also to create other income sources. “It’s a natural adjunct to the business,” Thomas said. “I also get paid to manage the properties (I buy), which investors also like.” Natural or not, few brokers make such extensive personal investments. The biggest reason is simply that buying commercial properties requires lots of money. Another possible deterrent is the risk involved. A few recessionary years with high vacancy rates can wipe out an investor. Thomas is keenly aware of the risks, but he says he has been able to minimize the downside by partnering with others on his investments. Many of his partners are the clients he has helped to find leased space. “I like it when a user is a partner because they have a vested interest in being a good tenant,” said Thomas. “But that’s not the magic ingredient that makes it work. What makes it work is when I run across a property that is under-priced at current market conditions.” Thomas came across his first acquisition, a 6,000-square-foot facility in North Hollywood, about 22 years ago. Since then he has accumulated a wide variety of properties, ranging in size from 205,000 square feet to 2,100 square feet. Although he declined to discuss his earnings from investments, he points out that the investment pays off in several ways. In addition to value appreciation, there is the income from a well-chosen site that maintains a high occupancy rate. “The first property I bought in 1977, we paid $20 a square foot. Today, it’s probably worth $70, and the mortgage is going to be paid off in a couple of years. Instead of making a mortgage payment, you’re putting the money in your pocket,” he said. Acquisition price is the primary yardstick for many of Thomas’ acquisitions. But sometimes, the suitability of a property as a rental can be a more important consideration, and Thomas’ ability to size up the property has gained him the confidence of many investors. “The advantage of Ross as a partner is, I know when we go into a building that it’s going to be a good building in a good location and never be vacant,” said Steve Marsh, an investor who has joined with Thomas in about eight deals. Even with his expertise at selecting buildings, Thomas said he prefers the less-risky strategy of working with partners on his investments. “I would rather own a piece of a lot of properties than all of a few,” Thomas said. “If you have a problem with a tenant, or God forbid, there’s an earthquake, you don’t have all your eggs in one basket. If I have a property that I own by myself, and it goes vacant, I have a problem.”