Commercial Real Estate Investing From A-Z

How to add value to industrial investing, an asset class full of competition? What were some of the major lessons learned getting into the industrial asset class? Monick Halm, founder of Real Estate Investor Goddesses will be sharing her insights.You can read this entire interview here: https://bit.ly/32GC1N0What are some value add strategies in industrial?There's a niche in industrial that we do called a sale leaseback, and sale leaseback is this, there's a company that has a facility that they are using and they want to sell, mostly because they want to get the equity out of it. But they still want to use it. So they sell it and then they lease it right back. This is very, very niche, very few people do this. And because it's so unusual and so few people do it, that really is the value add. We'll buy it and then the seller becomes a tenant, usually with a 20 year lease, built in rent increases, NNN. They're paying rent, property taxes, insurance, and maintenance. If there's an issue with the toilet, they fix the toilet, if there's an issue with the roof, they'll fix the roof.We will typically sell it in four to six years to an institutional buyer, a pension fund or insurance company. They love these deals with an industrial tenant already in place with several years of steady rent, payment history with 15 to 17 years left on the lease. They'll buy those all day, everyday but they do not do the sale leaseback, so that is where the value is added. We also buy these slightly below market so we have built in equity. We rent it slightly below market as well to the seller/tenant which also gives us room, that's how we're adding value.And the one risk is in that tenant. So we do a lot of due diligence on the company to make sure that they're a super good bet, a good risk. They're well capitalized, they're very strong companies. The youngest company we've done one of these deals with is 17 years old. I think we've had one of those as old as 80 something years. They're very strong companies that are not going anywhere.Besides digging deep into these tenants, are there any other lessons that you can share that you learned in this asset class so far?With our 109 spots in Houston, we have our various industrial park, those parks are flex warehouse space. Some of it is a little bit like retail. We have all different types of tenants. We have three churches, bakers, garages, all different types of tenants.Those tenants had mixed success during the pandemic, and the economic fallout of all of that. Churches couldn't meet, so it was hard for our churches to pay rent, the retail type spaces weren't able to do business and the other ones were fine. What's nice about that is we had 109 tenants, we have a mix of different things. Some are good, some are not bad, some didn't do as well. The lesson we learned, is having that variety of different tenants and really working with them and staying in communication with them, helping them to access some of the federal money that was available for businesses, that helped allay the risks. In our sale leasebacks, we actually had no problem with those companies. They were all essential businesses. A lot of them, like our food ones, were doing more business in it than ever. They were great.And when you had a certain percentage of your tenants not paying, did you have to raise more funds? How did you deal with that?We were fine. We had to get creative, stay in communication with them. We had to help our tenants be able to access cash so they could stay in business. We did have a couple that closed their doors and weren't able to last, there were enough that survived. On that particular deal, we paused distributions but we definitely did not need to get extra cash.Monick Halmwww.reigoddesses.comPodcast: https://apple.co/2Parmai--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What does it take from having a negative net worth to retiring within 4 years through real estate investing? Michael Manthei shares his journey, along with some of the top advices he would give us today, and some of the biggest challenges that he encountered throughout that journey.You can read this entire interview here: https://bit.ly/2Qr3waJWhat are a couple of advices that you would want people to know, let’s say for back then, what was going through your head and what would you want someone that was in your situation to know in order for them to get their career started?The action taking is a huge one for me. The other one is to get around positive people, generosity minded people that want to help, that was huge for me, I started going to local free meetups and just meeting people. And there were a couple of people in those groups that would walk properties with me, give me advice, that was a huge deal. I was always one that wanted to do everything on my own. And I’m realizing more and more throughout life, that that’s fine, and you can be successful that way. But working with other people is also an amazing way to add strength to your picture. If you have a certain skill set, and you work with someone that has a complementary skill set, that can be a beautiful partnership. With partnerships, you have to be very deliberate with, you don’t want to enter them flippantly. But if you really get to know the other person, and being open to working together can be a shortcut to success as well.What were some of the biggest challenges that you faced during this journey?Staying encouraged, and maintaining belief is challenging. If you have something in your heart that is greater than what you see around you, and what your peer circle is. That's probably why you're listening to something like this, it takes courage to break through the average of the people you're closest to, and enter a new realm of wealth and success. Just managing that, and staying encouraged is a huge part of the battle. That's more on the mindset side.On something more practical, we started with such little capital, that it took every penny we had just to get into the next building. And I thought that we would just fund any renovations that were needed out of cash flow, which is fine. But you can't fund a renovation and live off of the same cash flow. You can't spend it in more than one place. If you're running a pro forma, and that's something that you need to be good at in this business, you typically put, in some of the older properties in our local city, 10-15% for maintenance and repairs. There were some years that even on a very large portfolio, I was spending 30 and 40% of the gross income on repairs, because I was buying buildings that had a deficit in deferred maintenance. It has worked out, we've made the repairs and dug out from that. We quality buildings now. But that made things tight for a while. And it's a great practice to make sure you have all the money upfront to correct any deferred maintenance. That's something we do today, if a building needs something, we raise additional capital and make sure the deal can support that and get that done at the beginning. I didn't really have that luxury when we got started. But we definitely had to work hard to still make it through.What made you start thinking about real estate investing? Like a lot of people, I read a little purple book. That was the first entry point that completely rocked my world. And I'm referring to Rich Dad, Poor Dad. It just blew my mind that people thought that way. I didn't grow up in a family that talked about money, or had any wealth.Michael Mantheiwww.investelevate.comGenerational Wealth Conference: https://bit.ly/32eQQpR--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What is going on in the single tenant retail space? What are the top things you should negotiate in retail leases? We cover a lot of ground in the retail space with Randy Blankstein, President of the Net Lease Advisory firm The Boulder Group.You can read this interview here: https://bit.ly/3lPrrw5What is the difference between N, NN and NNN leases?In single net properties, which we typically don't see in our sector, but certainly exists in the marketplace, usually the tenant pays rent and the property taxes and that's it. It's not the majority in the sector, but for single net it's rent and property taxes. That's it. For double net, which is the majority of the sector, double and triple net are equal, the tenant pays taxes, insurance, and some type of maintenance. For example, we have some freestanding property, let's use Walgreens as an example, who used to be a double net, but now it's a triple net lease, they converted a while back. When they were double net properties, the tenant was paying the taxes, the insurance and some maintenance. Walgreens carved out roof structure and parking lot as landlord responsibilities, which is pretty common for double net leases. And sometimes there's maintenance obligation of the tenant, and then replacement is the landlord's obligation. And sometimes the landlord has all those responsibilities, but on double net leases there's some type of shared responsibility, or landlord responsibility for those issues. For true triple net leases, the tenant is paying for everything. They pay for maintenance, repairs, taxes, insurance, everything is paid by the tenant, so there's very little to do, and you just pretty much own a property that just gives you a return without having to do any kind of management of the property. It's completely passive.What are some super important things that you think landlords should definitely negotiate in these kind of leases?There's 10's of things you can talk to on lease negotiations. But really, you need to focus on two things, because ultimately, a lease is only as good as the credit and financials behind the tenant, and/or the individual's success at this location. Even if it's a large public company, you still need to know that this location is ok, so that you have a strong renewal probability, that's what you're trying to figure out. So what you really need is store sales reporting for this individual location, you really want to know that the rental sales is in line with the tenant average with the market average, and that this is a strong performing location that has a high renewal probability, because that's the biggest risk of that leased property is, will they renew at the end of the lease term. So knowing store sales takes a lot of risk out of it. A lot of lenders want them and a lot of buyers want them. So it's really important to get to store sales. Also for private tenants, franchisees, other people that aren't public, you really need the tenants corporate financials, because even though this location may be doing well, or average, it's still backed by whatever parent is ultimately the guarantee on the lease. So you need to understand the strength of that guarantor, a 25 unit franchisee, some have a great balance sheet, some not so good. So you really need to know where the corporate stands. If I had a choice between the two, I would want my individual store sales first, because even if it's a bad franchisee, if this is their best location, they'll close the other locations first, and yours will still be standing, even if the corporation isn't doing well.Randy Blanksteinwww.bouldergroup.comwww.linkedin.com/in/randyblankstein/Join our goal setting weekly calls ($20/month): www.paypal.me/regoals--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What are companies looking for right now? Benjamin Osgood will share insights coming directly from office tenants. He has brokered over $250M in real estate transactions and is the founder of Recreate Commercial.You can read this entire interview here: https://bit.ly/30DLrrvWhat will office look like in the near future?We've learned from COVID that we all don't necessarily need an office for work, because as the pandemic has shown us, we can work anywhere if we need to, give us a laptop and a wifi connection, and we're good from the work side of things. I think that's going to be a trend that we'll continue to see. But we've also learned on the other side of that that we still need a physical place to come in, meet with our team, foster our company culture, mentees need a place to be mentored. Conversely, supervisors want to see their people working, they want to make sure that, even though the Slack channel is green, the light is on, that they're actually working.But then also, we're rethinking what is the workspace used for? Is it for work that is heads down? No, totally not. We need a place to come in, collaborate, innovate, throw ideas on a whiteboard, get over caffeinated, hang out with our team. We're tribal people, we want that human connection, I want that human connection. Most people want that human connection. I think most companies are going to need a physical space. And we can't forget that the office is very much a commodity in both hiring and employee retention. We know that companies want that really cool place to come work, there's a reason why those employees stay there and why culture is so integral to a company success, and zoom meetings have their limitations.We're also thinking that maybe we don't need to spend so much of our lives commuting. And maybe we don't need to go into the office five days a week. We're definitely seeing an office space that's configured differently. For one, is it going to be dense, linear benching? Probably not. Even pre COVID, we knew that that was not the greatest way to work, it was simply a way to hedge against very expensive rent. Pack as many people into as dense of a space as you can. It's going to be more collaborative, more soft seating, more whiteboards on casters, maybe more of a residential feel with plants and furniture that reflects a more chill and welcoming environment rather than just heads down linear benching. One thing our clients are saying is, We realize we're taxed on working from home 100% of the time, it has lost its charm, but also, not commuting five days a week is pretty cool, too. So we are anticipating and predicting a hybrid.How do you think that will affect how much office space companies will look for? Do you think it'll be the same, or smaller?I think it's zero sum. On one hand, we are decreasing our densities. So by way of example, pre pandemic, especially in major cities, like New York, Chicago and San Francisco, we were planning for 150 square feet per employee. And now that's almost upended. it's at about 325 sf per employee, which is more than double the square footage. The space is being configured much differently. Now we're taking that same square footage, but rather than line it out with just rows of linear benching, it's more soft seating. It's like, Grab that corner over there with your team, grab your tablet, or laptops or whatnot, grab a coffee, let's talk, let's collaborate, let's innovate. You just need more space for that type of use.Benjamin Osgoodwww.recreatecre.comJoin our fb group here: www.facebook.com/groups/montecarlorei/--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What's happening in the medical office space and why is it a good asset class to invest in? We are getting insights from Catherine House, National Healthcare Chair for the firm SVN. She is responsible for coordinating healthcare related commercial real estate activities in medical and dental office buildings.You can read this entire interview here: https://bit.ly/3c47VauWhy is the medical office space popular right now?1. For those people who are looking for safety, and I think there's an element of a flight to safety for people who are interested in this sector, if you're looking for distressed asset opportunities, this is probably not going to be the right sector for you to be focusing on. There's a number of reasons for that. And if you actually look at the Medical Office fundamentals, there's some really interesting trends. If you look at rent growth, for example, I'm specifically looking at hospital affiliated medical office, the average rent continued to gradually increase throughout 2020. And they're predicted to continue increasing in 2021. So the national medical office rent is currently approximately $26 per square foot. And we've positive rent growth, currently at less than 2% nationally.2. The other fundamentals to look at is occupancy. Occupancy for on campus is currently 93.3%, and 92.6% for hospital affiliated off campus medical office buildings. Occupancy trends have been very steady. And they're actually forecast to remain steady throughout 2021. If you compare that with our predictions that we were just talking about for regular office, we're talking about very stable metrics with vacancy below 10%, and predicted to remain below 10%.3. The other thing that we're seeing is absorption rates are outpacing completions. If you look at cap rates, another great fundamentals to take a look at, we actually saw them decline in 2020. And declining cap rates, and steady rents actually mean an increase in the underlying value of the assets. So, based on RCA's data, the quarterly average MOB cap rate actually remains between 6.3 and 7%, since the beginning of 2015. So it's steady, it's safe. For investors interested in a safe steady investment, this particular sector was getting a lot of interest.What is driving all of that demand?1. One of the key reasons is that medical office is an essential sector that really remained open for business throughout the pandemic.2, It's also an area where it is extremely difficult to do it remotely. For the most part, if you need to see your physician, you need to physically go into the office. Whilst there has been an uptick in trends, such as telemedicine, which is a very fascinating area to get into that I'm not sure we have time for today, in general, there is still that demand for in person visits.3. And many physicians did have their income impacted in 2020, one of the reasons for that is a lot of the elective surgeries and procedures that are actually the most lucrative, many people actually put those off. So the revenue for the year and 2020 was down.4. But in the long run, that businesses survived and actually are predicting to be extremely busy in 2021 and beyond.5. And that's not even getting into some of the demographic trends that we're seeing with the aging baby boomers. There's a correlation as one gets older for an increased need for medical services. So we're actually expecting the demand for medical office to continue to grow significantly over the next 10 years plus.Catherine Housewww.svn.comcatherine.house@svn.com--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What is happening in the office space in large cities like San Francisco? What has happened in the last year? What is happening right now? Will we ever see any deals? Reuben Torenberg, vice president at CBRE, will share his insights.You can read this interview here: https://bit.ly/2MgPK8TI've been dying to speak with someone in the office space that is focused in large cities like San Francisco, to see what has happened with office over the last year, do you mind sharing with us what is going on in your world?It has definitely been a change from anything we've experienced in our career. The market has been placed completely on pause since March of last year due to the pandemic. As soon as it happened, as in many other large Metro cities, there was a mandate from the city that stated no one can occupy office space. Since then, all the technology companies locally have at first tried to defer their rent or get free rent with landlords. And unfortunately, they were not very successful because these landlords also have bills to pay, they have mortgages to pay, they have to keep up the operation of their building.Since then, just over 8.5 million square feet of sublease space has been placed on the market. As the months went by, rates dropped from the mid to high 80s to mid to high 70s. Then a couple more months passed and rates dropped to the low 70s, then a few more months passed and rates have dropped into the 60s. Now, for subleases, we are seeing rates at 30% lower than what they were back in March 2020.I assume that there aren't too many defaults yet, is that correct?That is correct. There hasn't been too many defaults, what some companies have tried to do is cut their losses and seek a termination. Although landlords had been very hesitant to do so because of all the uncertainty going forward, if you were to terminate, and landlords had other tenants waiting in the wings, that's one thing. And you can agree to a termination with a penalty of a couple months rent and feel confident that you'll get the space leased again. But without any end in sight, it's certainly much harder to have those conversations. At least 80% of these technology companies still have their space in the sublease market, or are hoping to come to an agreement with a growing technology company who can use the space once shelter in place is lifted, and rid themselves of remaining obligation without suffering too much pain.Is it safe to assume that landlords are not hurting right now? And nobody's trying to sell their office building?Yes, I would say they aren't hurting as much as they likely will be if this continues in another year, just because the market has been so hot over the last five years that they've been able to get deals at the rates that they want for long term to lock in security for the building. And those who are going to sell their buildings right now are looking at a pretty difficult selling market. So what we're really seeing mostly is landlords trying to hold on, and get past the uncertainty of the virus and see how efficacious the vaccine is before going back into into the market to sell their buildings.And what is the sentiment regarding office in general in your world?I certainly think that they will eventually bounce back. But the trend right now is leaning towards satellite offices in secondary metros like Austin, Salt Lake City, Denver, and even Miami. These companies want to retain their talent and give them a place to work besides their homes.Reuben Torenbergreuben.torenberg@cbre.comhttps://www.linkedin.com/in/reuben-torenberg-b985b646/Subscribe to our newsletter here: montecarlorei.com--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What are the major issues that can arise on a title commitment? We talk with Mindi McLain, attorney and co-owner of Wright Law.You can read this entire interview here: https://bit.ly/3rPVNjTTell us some of the biggest issues that you have found in a title report before.I have had some big messes, I don't even know how to describe how messed up a property can be. Deals that are too good to be true are typically not true. I've had a few deals where, especially if you're buying something from a family that has been in a family for a long time, and then somebody down the road decides they want to sell it, most of the problems that you see are with people that have died in the chain of title ad nothing's been done. There hasn't been a probate of their state, there hasn't been an affidavit of heirship. You're trying to build a family tree, and it has 80 branches, and they had 12 kids. I've had a lot of them, especially small deals, but we had to just go and find all these heirs that were lost. I look for the lost heirs and say, Hey, did you know that you have a 1/64th interest in this property? And would you mind signing this deed? So those can be wrecks, but it can usually be worked out.Another issue is a family, and several people have died. And we find that one of the heirs is a minor, meaning they're under the age of 18. But they've come into title on a property. In Texas, you can get around that, but you have to get a court order allowing a parent to sell that property on behalf of the minor. And then the proceeds from the sale have to go into the court registry, and then it sits there until they turn 18. And then they can go and cash out their inheritance. That happens if someone dies and their heir just happens to be seven or eight years old, or 14 years old. They still are an owner of that property, but legally, they don't have capacity to own property or to sell property. And so you have to involve a parent or a guardian.Some of the worst things I’ve seen are people buying property and not fully reviewing everything that’s in Schedule B and then finding out that there’s a restriction on their property that they didn’t know about. The title company is not going to necessarily tell you hey, you can’t use this property that looks like a retail store, you can’t use it for retail. They’re just going to note in their commitment that there’s no restriction, or a deed, or subject to whatever it was in this document. If you go back and read it, and you bought a property and you wanted to use it for a funeral home, and then you later found out that there’s actually a restriction on that property that says it can’t be a funeral home, or whatever you wanted it to be, then you have a problem because the purpose that you wanted that property for you cannot do it legally because there’s a restriction. And that wouldn’t be a covered claim, if that restriction was an exception to your policy.Also leases, some people will see that there’s a memorandum of a lease recorded, and they won’t really dig into what the lease actually says and ask the seller, Can I see that lease ahead of time? And maybe the tenant either had an option to purchase a property or a right of first refusal or something like that. And they come back later and say, actually, you didn’t have a right to buy this, I had a right to buy it. So they try to undo the sale.People are getting savvy to all the ways that you can generate income from rural properties. And so that includes not just oil and gas leases, and mineral production, but also solar farms, wind farms, all types of alternative energies.Mindi McLainwww.wrightlawtx.commindi@wrightlawtx.comSubscribe to our newsletter here: www.montecarlorei.com--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What is a title commitment? What is a survey? What should you watch out for in a title commitment? We talk with Mindi McLain, attorney and co-owner of Wright Law.You can read this entire interview here: https://bit.ly/3jdLsLzWhat is a title report? What is a survey? And what does it do for you when you're purchasing a property?Title work means you're looking back in the records, so that when you buy a piece of property, you know that you have good title to, that you'll become the owner and you know exactly what is going to affect that property. There are lots of different things you can order from a title insurance company. Some people will call it a title report, some people will call it a title run. Most often what you want from them is what's called a title commitment. A title report is usually just a short one or two page document, it says title is vested in this person or entity. Here's the legal description and there might be a lien against it. A title commitment is the most comprehensive title instrument that you might want if you're going to look at buying a property and most contracts are going to reference a title commitment. The title insurance company that you choose will take your contract, open title on it, and they'll look at who the owner is, what sort of easements, encumbrances, liens, problems are out there, and what needs to be done or fixed before closing, so that if you're the buyer, when you close, you have good title to the property. And when that commitment then closes, it becomes what's known as title insurance.Surveys go hand in hand with the title commitment, but that's actually sending a licensed surveyor out to their property to look at what's on the ground. The title commitment doesn't do that, the title examiner does not visit your property and actually take a look at it. They're just looking at records, whatever is publicly available, but the surveyor is actually going to go out and visit your property, he's going to measure whatever you ask him to, the boundaries, or the improvements that are there.What are some of the things that people should really watch out for in the title report and the survey?I spend most of my time reviewing Schedule B, those are the exceptions to the policy, followed by Schedule C, the requirements. The first mistake that people make is getting the commitment, and not even really reviewing it or never getting past Schedule A. The second thing that they do is they review Schedule B, but they don't really dig into what it says. So it's going to say, these are things that are excluded from your policy, it's not going to give you the whole summary and analysis of what those things are. If you don't ask, what is that document recorded you'll never know what that document said. There could be an easement recorded, a lease recorded, or a deed recorded. But you'll want to ask the title company for copies of those documents.This is where the survey can come in handy. If you get a title commitment, and it has 18 easements listed, or it has a right of way deed or something like that, your surveyor can take that Schedule B and those documents and he can locate those easements or those roadways on the ground, and then show you where they are on your survey. The same with the survey, if you get it back and you have questions, you want to make sure your title commitment and your survey go hand in hand and that your surveyor has actually reviewed your title commitment and that he or she has included those documents that need to be included on the survey. That way you know where it's at, and your survey can actually be part of your title insurance.Mindi McLainwww.wrightlawtx.commindi@wrightlawtx.com--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

Closing on a property the same day that the president declares a national emergency? Our friend Loe Hornbuckle checked that off on his real estate investing career last year. How did him and his team solve the problem that was about to arise?You can read this entire interview here: https://bit.ly/2Mx2xUwYou closed on a property when COVID hit. This can be something that can happen at any point in time in different types of versions. It can be the economy or anything else. How did you guys overcome this problem?I don’t think I’ll ever forget this, because how many people can claim that they closed a major real estate transaction on the day the President of the United States put the United States in a state of national emergency? Literally, the day we are closing on the deal, the President’s on TV saying we’re entering a state of national emergency and, like a lot of people, you’re in California, you have earthquakes, you have fires, there are all kinds of city and state emergencies, but I’ve never seen a national emergency before. So I didn’t know what that meant, or what was going on. All I know, is that I closed a very large real estate transaction, by some standard, $18 million is pretty large, on the day that the president is on TV, basically saying the sky is falling. because our construction was being done in phasing, we went ahead and figured out what our three targets were, what we needed at a minimum to close the deal in terms of investor equity. Then the second question was, what do we need to do phases one and two? And the next question was, what do we need to do all three phases? So we broke the project up into a few different metrics When you're doing a raise, people always focus on the ceiling, how much money you're going to raise. The question that we asked ourselves was, what's the minimum amount of money that we can raise in order to not have the project be delayed? And so we came up with those three numbers.Are there any other tips that you can give our listeners on how to deal with unplanned situations like this one?If you were to think about all the things that it takes to write a business plan, I think the first thing you have to be is you have to be realistic. When you're realistic, and you're writing a business plan, one of the questions you should ask yourself is, how could this go wrong? What are the problems this deal could have, and then try to be creative and pre plan. So much about people that write business plans, it's all optimism. For example, if we just assumed, that we were going to raise this money, no problem, we hadn't set the floor, then we potentially could have had to rewrite the operating agreement, and that could have caused other investors to be spooked. Instead, we just said, Hey, this is the minimum amount we're going to raise, this is the maximum amount we're going to raise.Always go through your business plan and just think through things that that could happen, maybe you won't raise all the money, maybe you'll have some price increases. You're going to need to have a healthy contingency, and things like that. A lot of what made us successful on this project, or come to a successful conclusion, really dealt with going in being realistic. And then also asking, Where can we have problems? And if we do have these problems, what's our plan in case we face them? Because having that in your back pocket, and when something does happen, you've already kind of planned for it. It helps a lot in the moment because you don't feel like you're being blindsided by something you couldn't see coming.Loe Hornbuckleloe@goodhorncapital.comwww.goodhorncapital.comSubscribe to our newsletter here: www.montecarlorei.com--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

In this episode I talk about setting goals for your investing this year. I think 2021 will be a great year for a lot of investors, and you guys have been taking the time to learn as much as you can. 2021 will be a great year to put all of that to work.You can read this entire episode here: https://bit.ly/3b93z3hFirst we need to look back at our 2020 goals, and what got accomplished and what didn't. I accomplished about 50% of my goals, and looking back, the biggest issue I see in not accomplishing the rest of my goals (guess what, it was not Covid!) is that my official accountability buddy and I did not follow up on our calls. And that was both of us, we did not hold each other accountable with our calls and our goals. Another serious part of this is that I did not block part of my day to really look at what is the most important thing that I can do that day, to help me get closer to my goals and take a couple of hours to just do that before getting into emails, before everything else. When we're having this one or two hours for ourselves in the morning, I think it's really important to always include the thought of how can I increase this by 100 times? Some people say 10 times. And I think 100 is even more powerful, it gets you thinking outside of your box, for instance who is my wealthiest friend who would be super interested in investing in real estate? Or what is the property that is going to give me the most return for my time? Not carwashes, I can tell you that!Let's talk about one of the most popular forms of goal setting. And that is called SMART methodology, having Specific, Measurable, Attainable, Relevant and Time-Bound goals. So let me give you one example of one of my goals for this year:Specific: I want to partner up with a friend who is an architect and has a lot of experience in not only remodeling things, but also adding things to spaces, and not only in the single family space, but also in other commercial and multifamily space. So we want to start small, and we want to build this relationship and grow from there. So that is the goal to get into the real value add through development and improvement of a property business.Measurable: What is a measurable number for that? I want to buy and exit 12 properties, or 12 units with this friend in the Bay Area, which is where we live this year, we're going to be buying homes, or multi unit properties. At some point, she will take care of the renovations and the additions. I'll take care of the rest. And then we're going to exit.Attainable: Are 12 units attainable? Yes. She said that she will be comfortable managing even 10 projects at a time. So 12 projects in one year, I think is very doable.Relevant: Is it relevant? Yes. Homes right now are selling like hotcakes. And this is also a great way for us to not only make sure that we work well together, and also for us to be able to see and learn what other areas we can grow exponentially.Time-Bound: The last part of the smart format of goal setting is for your goal to be time bound. So we are already in January. I think it's realistic that we start with one property by February, we'll start to reach out to lenders and real estate agents to help us with the properties, and then fundraise whatever we need for the project and start working with the contractors.2021 will be incredible for real estate investing!Subscribe to our Goal Accountability Group here:www.paypal.me/regoals- Send $20 for Jan OR- Send $200 for the whole year (2 months off)Calls will be on Thursdays 2-3pm PST, 5-6pm EST, depending on how many people join, we may have an alternative time as well.--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support