From College Dropout to Buying $50M of Real Estate with Tyler Cauble
Apr 30, 2024
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Guest Tyler Cauble, a commercial real estate investor, shares how he got started without his own money, tips on commercial investing, turning car washes into food halls, importance of sales skills, and the impact of office space trends. He discusses finding off-market deals, staying cash-heavy, personal growth, and the books that influenced him. Connect with Tyler on his website, YouTube, and Instagram.
Starting with education is key in real estate investing for a strong foundation.
Single tenant net lease properties offer low-maintenance but come with tenant risk.
Investors are moving towards cash-heavy strategies for lower risk and sustainable cash flow.
Deep dives
Importance of Education in Real Estate Investing
Starting with education is crucial in real estate investing. Building knowledge through podcasts, books, and events helps lay a strong foundation for future investments. Learning from industry experts and networking can provide valuable insights and opportunities.
Single Tenant Net Lease Investment Strategy
For investors with capital but limited time, single tenant net lease properties offer a low-maintenance option. Understanding tenant credit, lease terms, and due diligence is key. These properties pass on expenses like property taxes, insurance, and maintenance to tenants, reducing landlord responsibilities.
Risks and Considerations in Commercial Investing
While single tenant net lease properties offer stability, relying on a single tenant poses risk if they vacate. Thorough vetting of tenants' creditworthiness and lease terms is essential. Understanding the lease structure, tenant responsibilities, and property management needs is crucial for successful commercial investments.
Financing and Loans for Commercial Properties
Financing commercial properties differs from multifamily investments. Down payments of 30-40% and higher interest rates are common post-2022. Personal guarantees may be required, and loan terms vary based on credibility and property type. Commercial financing involves detailed assessments and considerations for successful acquisitions.
Benefits of Cash Investments in Real Estate
Many real estate investors are shifting towards cash investments as they prioritize lower risk over high leverage. With experience, some investors prefer putting down 50% in deals to ensure cash flow even with higher interest rates. This shift signifies a move towards lower risk strategies and a focus on sustainable cash flow rather than maximizing leverage.
Strategies for Finding Commercial Real Estate Deals
Going off-market and utilizing direct mail strategies can be effective in finding commercial real estate deals. Building relationships with commercial real estate brokers, specifying clear investment criteria, and sending targeted mailers can help identify potential properties. Off-market deals offer opportunities for better negotiation and acquiring properties at favorable terms.
Tyler Cauble is a commercial real estate investor in Nashville, Tennessee. On today’s show: how he went from selling Cutco Knives door-to-door, to doing his first land deal with none of his own money, to using syndication to buy, renovate, rent, and refinance (BRRR) millions of dollars of commercial real estate in one of the hottest markets in the country.
Tyler also talks about: - Exactly how he’d get started in commercial real estate investing today - The differences between residential and commercial real estate deals - How to get brokers to take you seriously - What he learned about sales at Cutco (he broke a sales record!) - Transforming an abandoned car wash into a food hall with “ghost kitchens” - Why he’s all-in on office space despite remote work - The opportunity in turning stale office buildings into coworking spaces - The impact of higher interest rates - What type of cash-on-cash returns to expect in commercial investing - How much you need for a down payment - Does go off market to find deals? (spoiler: yes) - Why he’s cash-heavy in 2024 - Why he quit drinking alcohol - The books, people and quotes that have shaped who he is
Show Sponsor: - The BetterLife REI Summit May 3-5 in Denver, CO. The most actionable “how to” real estate event for new and experienced investors. Grab your tickets here: https://reisummit2024.com/
