Commercial Real Estate Investing From A-Z

What is the difference between a regular IRA and a self-directed IRA? What are the benefits of a self-directed IRA? Amanda Holbrook, from Specialized Trust Company shares her knowledge.Read this entire episode here: https://tinyurl.com/mtyykj3jWhat are the main differences between a regular IRA, for example, Fidelity or Vanguard, and a self-directed IRA?When you're at some of those big box companies, they will give you that old pat on the back stuff and say," Oh, Steph, you can go and pick your stocks, bonds, and mutual funds yourself". That is not true self-direction. To do true self-direction is to invest in what you know, and it's the same types of vehicles that you've become accustomed to Roth IRAs, traditional IRAs, 401 K's, and health savings accounts, the same ones you see over there, except when you shift over here. Instead of picking your little toys out of that sandbox called stocks, bonds, and mutual funds, we give you the whole playground. You can participate in a big commercial deal, be a private money lender, and own a rental property inside your retirement account versus the stock market. These things have been around since the 70s, and the knee-jerk reaction I get is, "Oh my gosh, this is crazy. How come no one in my professional roundtables ever told me about this?" And a lot of times, it comes down to money because a lot of those institutions don't get paid when you create an account and when you invest in opportunities in your backyard, when you put money on Main Street versus Wall Street, that's the big difference.Can we invest in other assets besides real estate?It's almost Pandora's box. The IRS, and how the codes are written don't tell you, "Oh, here are all the beautiful things you can do to take advantage of our tax code", they tell you what you cannot do. As long as you're not violating one of these cardinal rules, self-dealing, which is to buy something you already own, doing business with anyone up and down your family tree: parents, grandparents, spouse, children, off limits, if they branch off such as brothers, sisters, aunts, uncles, cousins, nieces, nephews, they're okay. Your siblings can fund your deals, you can fund your siblings' deals, or stock of a sub chapter S company life insurance. There are certain things like collectible artwork that cannot be held. No artwork, no collectibles. Everything you can think of outside of that shortlist is doable: tax liens, private lending, precious metals, oil and gas, timber. I have brothers down west of Fort Worth, they breed cattle in their retirement account because it's what they know. Real estate is one of those three basic needs of every human on the planet. That is the most common but there's a million different ways you can participate in real estate.Amanda Holbrook(505) 514-0587aholdbrook@irastc.comwww.specializedtrustcompany.comJoin us at The Advanced Real Estate Investing Summit: www.aresummit.com

What is a cognovit clause? What are some of the main things that a borrower should be aware of in a loan document for a commercial property? Adam Lustig, head of the Real Estate Group at Bilzin Sumberg shares his knowledge.Read this entire episode here: www.tinyurl.com/nhzj3rmvWhat is a cognovit clause? How can that affect an investor if it is in a loan document?A cognovit clause is a clause in an agreement that authorizes the entry of a judgment against the defaulting party in the event of a default. It's commonly referred to as a confession of judgment. If the loan documents contain a cognovit clause, it allows for the lender to file suit against the borrower in the event of a default, and to immediately obtain a judgment without any prior notice to the borrower. Obviously, that's potentially a major problem for a borrower because they don't receive notice of default, they don't receive an opportunity to cure, and they don't have the right to raise any defenses or effectively to have their day in court.What are some of the main things that a borrower for a commercial property should be aware of with regards to loan documents?Most commercial real estate loans are non-recourse loans, which means that in the event that the borrower defaults, the lender’s recourse is to foreclose on the property. If the value of the property isn't the amount of the judgment, the lender does not have the right to go after the borrower personally, for the deficiency. However, lenders under non-recourse loans typically require what are referred to as bad boy guarantees, or non-recourse carve out guarantees. Principals who are signing those guarantees need to be aware of the circumstances under which they could have personal liability. Early in my career, bad boy guarantees were limited to truly bad acts like fraud and material misrepresentation, misappropriating funds, bankruptcy and similar bad acts. Today, bad boy guarantees have grown in length but many of those things do not necessarily result from a bad act of the borrower, they could be change in economic circumstances or more macro-economic things that could trigger liability. You have to be careful in negotiating the bad boy guarantee and those bad acts, because they trigger personal liability to the principals who are signing them.Top things to watch out for in loan documents:Lenders requiring not just a mortgage on the property as their collateral, but also a pledge of all of the ownership interest in the borrower. Clients have agreed to that, they signed it before engaging counsel, once they've agreed to it, it's really hard when you get to the loan documents to try to undo it but that is one of those traps for the unwary. With a foreclosure you have to go through the courts, that process can take six to 12 months. With a pledge of equity, the lender can do a UCC Article 9 foreclosure, which only requires 10 days’ notice to the borrower before a public or private sale of the property is held.Adam Lustigwww.bilzin.comalustig@bilzin.comJoin us at The Advanced Real Estate Investing Summit: www.aresummit.com

Where are opportunities in industrial investing? Is it through value add or development, single tenant or multi-tenant? Where are industrial buildings more in demand for: near major airport hubs, trains, or freeways? Amy Calandrino, CCIM, SSIOR, founding principal of Beyond Commercial shares her knowledge.You can read this entire interview here: https://tinyurl.com/5d9yzvzm How can someone add value or create an industrial opportunity for themselves?Doing a gap analysis of what’s going on in the particular market that you’re looking to invest in and see what industries are happening there so you know what product you should develop, study how they have been leasing up, and at what rates. It's going to take a couple of years before it comes to fruition. I see opportunities infill such as ghost kitchens. Older B and C buildings sometimes become antiquated and if you feel like there’s a large enough need, building ground up is a good call. There's a big opportunity in refrigerated industrial because if you don’t build that from the beginning, you can’t always retrofit it, and that refrigerated space goes really quickly.Is there a location that is even more ideal for industrial: major airports, trains or freeways?For industrial, you want to be close to railways if you are getting a lot of products. I have a client that has 10s of 1000s of square feet and they are more in the northwest area because they don’t really need to worry about the airport, but they do get some product by rail that they work through. The most popular right now, if you’re doing a heavy distribution, it’d be more on the east side of town (in Orlando) so that you’re close to both the port, the airport and you have a rail. Having all the options makes it the most expensive. Regarding ports, the majority of traffic used to go come to California and it would have to work its way all the way across the country, we’re now seeing a lot more shipments going through the Panama Canal and then coming to the ports and then working through rail serve to get to people or even working up the river ways. My answer would be all the above, however, with a slight emphasis on ports on the East Coast are more valuable than before.Buying and selling industrial today:If you are not a cash buyer and you’re acquiring, or if you are wanting to sell, being much more creative in structuring a deal is going to create win-win opportunities. If you are a seller, perhaps consider the opportunity to provide seller financing, consult your CPA, but having an installment sale could be beneficial and that could keep you having some cash flow coming in and help to mitigate some of those losses. If you’re undercutting the bank by a point, it’s something that you can consider. I’m seeing more of that happening because if you’re going to the bank and you’re paying 7%, the seller may not get what they want, but I think that maybe the seller can get more if they look at doing creative seller financing. If you’re building anything new, understand that right now, we haven’t seen material and labor come down, I don’t expect any huge increases to the labor and materials as far as constructions, but it’s still high, so it makes it challenging.Amy Calandrino(407) 641-2221www.beyondcommercial.comJoin the Advanced Real Estate Investing Summit on Oct 19 & 20: www.aresummit.com

Today I share latest things I have learned, some updates on the ponzi schemes that are rising and what is new in real estate investing.Read this entire episode here: https://tinyurl.com/26msmatp1. There’s a clause that banks are putting in some of their lending documents that is called cognovit clause – google explains that a cognovit is a type of confession of judgment, it refers to an acknowledgment or confession made by a defendant that the plaintiff’s cause is legitimate. It permits judgment to be entered without a trial for the purpose of saving costs.2. Warren Buffet famously said “Only when the tide goes out do you learn who has been swimming naked”. The tide is out right now and we are starting to spot the naked swimmers.There are more ponzi schemes coming to the surface, it feels like it’s almost one a week. Here are the most recent ones:Real estate developer Robert Matthews has been sentenced to over five years in prison for multimillion-dollar frauds spanning multiple states, including Connecticut, Massachusetts, and Florida. The 65-year-old faced charges related to real estate scams that caused losses of over $30M to banks and investorsReal estate investor Sean Tissue was sentenced to six-and-half years in prison for fraud involving a $3M investment and bankruptcy.– As per court documents, Sean Tissue, also known as Sean Ryan, was the mastermind behind a substantial real estate investment fraud scheme between 2015 and 2021.A carbon capture ponzi scheme promising returns of ~ 40% yearly is being investigated by the SEC. They raised anywhere between 150-250M. This person was being a lead speaker at some real estate groups and he was the “carbon capture” go to person. In the news:Clutter, a storage and moving startup once valued at ~$600M in 2019, is being forced to sell at a steep discount in an auction of its assets. The premise for Clutter was that they would come pick up your items, they’d take pictures, and they would move it all for you into a warehouse far from your main city to avoid high real estate costs, and store it for youWeWork casted substantial doubt over its ability to continue operating amid liquidity and profitability challenges. WeWork told investors that the next year would be a make or break for the company. Sam Zell said in the early days of WeWork that he has never seen a model like this work (where they commit to a long term lease, but their customers are on month to month contracts).Office leasing in Manhattan increased by 20% MoM in July to reach 2.3 million sq. ft.Manhattan’s retail market is showing signs of improvement, with a growing number of tenants signing new deals.Asking rents in Miami grew 12% YoY to reach $65.03. Availability of Class A properties in Miami declined 20.6% YoY.The Mortgage Bankers Association predicted that commercial and multifamily mortgage lending would decline by 38% YoY. What do I see here? So many opportunities! There are 40% less transactions being made this year, less competition, better deals, time to buy!I recently started using this excellent tool, tango.us, for creating SOP’s (standard operating procedures). As your company scales, it’s extremely important to create SOP’s from the get go, so that anyone can come in at anytime and pick up any job. This is how a fantastic company is run.What’s happening to office?I’m hearing more and more companies are requiring 3 days in the office, some are requiring 5 days in the office such as Jeff Bezos’s Blue Origin, calling themselves a work from work company. Elon Musk is also known for demanding employees being in the office 5 days a week. Facebook and Google right now are demanding 3 days a week in the office and Google announced that it will consider attendance as part of performance reviews.Join our Advanced Real Estate Investing Summit! https://aresummit.com/ use coupon SUMMIT20 for 20% off both tickets--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What is the step-by-step guide to build a real estate project from scratch? What are the best practices for the construction of self-storage, RV, and boat storage? What are some of the main legal items to keep in mind? Melissa Anderson of Forge Building Company, shares her knowledge.Read this entire interview here: ⁠https://tinyurl.com/y8sjpt89If someone wants to build a project from scratch, what would be the step-by-step that person would have to take, from who do they have to contact first, all the way to the team that they need to work with until completion?Once you see what the parcel is and what it sounds like, you’re going to identify what jurisdiction has authority, whether it’s a city, the county, or a township, and then you’re going to start talking to them, to see what is the approval process in order to build on this piece of property and to find out how they feel about self-storage. If you’re going into a municipality that has a really bad taste in their mouth about storage, they’re going to put up every hurdle they possibly can because they don’t want you to build self-storage and so, that is something to be taken into consideration when you are looking at that piece of property and before you close on.After you get it entitled, who should you start working with at that point?You have your property and title and the next phase is what I would call the design phase. That’s when you are going to have your civil engineer, your architect is going to start working on elevations, and a lot of the details of the building. If the jurisdiction has design requirements, that is going to be working up those architectural drawings to show that you’re meeting the design requirements of that municipality. For instance, let’s say that on the street front, they don’t want to see any of the metal paneling, in that case, you’re going to have to look at other exterior finishes such as stucco, Splitface, veneer, and they’re probably going to want it to be aesthetically pleasing. If you’re in an environment where they have very strict design elements that they want, to say that they want it to match the feel and the look of the rest of the city, then that architect is going to understand what elements to put into the construction documents. That’s what you’re doing during the design phase, you are building the construction documents that are going to give the subcontractors, it’s going to give them all the very specific details of what they need to bid on the project and what will be executed during the time of construction.What are some of the main things to keep in mind regarding legal when negotiating with anyone?time is really important, wanting to know how quickly you can get the project done, and what obligations each person is going to have for those. Having realistic expectations is important. I've seen this in projects where the GC really wants this job, and they'll say, "Yeah, we can get the project done in nine months." And now all of a sudden, that owner has that expectation of nine months. Well, as you start working with all the subs, it may not be that and so I really encourage owners to have realistic expectations. Then, the contractual amounts, when are you going to be paid?Insurance is a really big thing, making sure that the GC has the correct general liability and builder's risk insurance, and that they are also making sure that all of their subs have it. One of the biggest things is safety. Is it a GC that values a safe working environment? Are they holding their subs to the exact same requirements of making sure that they have a safety program in place, and that they have a way of enforcing it?Melissa Anderson(208) 286-8928manderson@forgebuildings.comwww.forgebuildings.comJoin our Advanced Real Estate Investing Summit! https://aresummit.com/ use coupon SUMMIT20 for 20% off both tickets--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

Why is there an opportunity for online lead generation within commercial real estate? What are some areas that you can be investing in an industrial that are showing very good solid returns and low vacancy rates? Max Fisher, an industrial broker with BRD Realty, shares his knowledge.Read this entire episode here: https://tinyurl.com/3um3kz3zWhere do you think there is an opportunity for investing in the industrial market right now?It's a tough time to invest in commercial real estate right now mostly because interest rates and the banking world are completely different and seller expectations are different today from one that where they were three years or two ago, but two deals that I've recently invested in, they're both land deals, and they're both infill sites. These are sites that are zoned industrial, but they also have the ability to build some retail. The first one was split up into four parcels to industrial and then to retail pads for drive-throughs or any other type of retail uses. So, one of those pads is in escrow now and the buyer has gone hard, that's done well. The other one, we bought for pretty cheap, because we bought it when the seller has it in escrow with the Self-Storage developer, and then the Self-Storage developer backed out. And then that was also during a time when the Fed kept raising rates in the economy seemed like it was going pretty well. So, I think like infill industrial land, and I'm also just a big believer in a Flex business park, small to medium bay, class B, class C type of industrial.Is industrial, being overbuilt right now? Where do you see the lease rates going?There are two different types of industrial products: small to medium bay and then there’s the bigger assets. The small to medium space really hasn’t been built so, I don’t think it’s being overbuilt. I think that there’s a supply issue and even in some instances, these business parks are being demolished and redeveloped for mixed use or other types of uses. But I do think in the bigger base, maybe in some other markets, some bigger markets, where there’s a lot of lands, and there’s a lot of spec development, possibly being overbuilt, but I’m very confident in business parks, and I don’t think they’re being overbuilt, and that’s fine, like Class B, Class C, industrial business parts.What are some of the things that we should keep in mind as property owners to make sure that we put on the lease and some things that are really non-negotiable with regards to industrial?Having space already clean and marketable for those prospects is most important. One of the things that we actually do is we know who that tenant wants more warehouse than an office. So, sometimes when a space comes available, and there’s more office build-out, just demo it out before you even take it out to market. Another key thing for industrial is if there’s some way that you can build some type of yar or industrial outdoor storage to complement that building, that’s a great value add to a property, you can even get higher rates and take some unused land and just create some more income that way. Overall, just creating a space that’s clean and marketable to your prospect with a mostly warehouse-less office is key.Max Fishertwitter.com/maxfisherREwww.industrialtucson.comJoin the Advanced Real Estate Investing Summit on Oct 19 & 20: www.aresummit.comUse Code SUMMIT20 for 20% off the Super Early Bird Pricing--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What should we keep in mind in creating a solid operations arm of a real estate company? How to hire the best of the best? What are the tips for creating a great company culture? Anne Mari DeCoster, President & COO at Kingdom Storage Partners & Self Storage Investing, shares her insights.Read this entire interview here: https://tinyurl.com/mr3h8emfWhat are some of the biggest things that we should keep in mind with regards to building a solid operations arm of a company?It’s critical that you keep your eye on the numbers. Every software system has a management report, and the management report will tell you where dollars are leaking out. You can develop the best proforma in the world but if it’s not implemented the way you intend, because you have invisible leaks, then you’re not going to succeed the way you should, you’ll still succeed, but not as well as you should. It’s really easy to turn that over to someone else and trust them, but it’s not always wise. I’ve been heard to say that not every manager steals, but every owner is stolen from. To prevent that, keep your eye on those numbers.I’m a believer in consistency and simplicity. Whoever is running your shop, whether it’s a remote manager, or an onsite manager, it’s important to understand what are your processes, how you do them, and do them that way every time. We have a simple business model and I always encourage people to keep it simple, don’t complicate it with extra services that are logistically intensive, or manpower intensive. By keeping it simple, and having simple procedures and implementing them across the board, you up your game. Things fall into two camps: either an owner is frustrated that they can't get their manager with remote, or third-party management, or on-site to do what they want. And then others would say, I don't understand why they have a problem. And the difference between the two is accountability, people will deliver what you inspect, look at it, measure it, take a look at the MSR, if you're asking questions, you'll get much better responsiveness.What are some things that you look for when you are interviewing someone for either a low-level job or a high-executive job?That's one of the hardest things today, isn't it? We used to be very common in the workplace, pursuing excellence, being committed to doing a good job, you go to work every day, compassion is important, and caring about what you do - these are the things that I look for. And in the process of talking with people, I try to understand what their values are and see if there's an alignment of values. If you're very clear on your values, you establish your priorities based on your values, and then your decisions line up with that. That doesn't mean decisions are easy, but they line up. If you're talking with someone and you can tell that they don't value people, and if valuing people is important to you because you want people who rent from you to give you five-star reviews because you cared enough to make sure they could access their Christmas presents on Christmas Eve to put them under the tree on Christmas morning. How do you create an excellent company culture from the beginning?Culture flows from the top down. "They don't care what you know until they know that you care." A lot of that is conveyed by being really clear on your core values as a company, you know what you're about as your mission and your core values, your customer care, attention to detail, those are enough in running a property. Convey it clearly and frequently. You can't say, "we are a problem-solving organization", and keep kicking the problems down the road.Anne Mari DeCoster(480) 980-7418annemari@selfstorageinvesting.comJoin the Advanced Real Estate Investing Summit on Oct 19 & 20: www.aresummit.comUse Code SUMMIT20 for 20% off the Super Early Bird Pricing--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

Dr. Doug Duncan, Fannie Mae's Chief Economist gave his Economic Forecast in June 2023. Dr. Duncan is the recipient of the prestigious Lawrence R Klein Award for Most Accurate Forecaster Over The Past 5 Years, he was also named by Bloomberg and BusinessWeek as one of the Top 50 Most Powerful People in Real Estate. Learn from one of the smartest economists in the U.S., who advises the U.S. government and the Federal Reserve on real estate matters. He delves into the topic of bank failures, and sheds light on what lies ahead for interest rates.Full video recording: https://bit.ly/43YaODASlides: https://bit.ly/444rIAoDr. Doug DuncanFannie MaeJoin our Investing Club: www.montecarlorei.com/investors--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

Dr. Doug Duncan, Fannie Mae's Chief Economist gave his Economic Forecast in June 2023. Dr. Duncan is the recipient of the prestigious Lawrence R Klein Award for Most Accurate Forecaster Over The Past 5 Years, he was also named by Bloomberg and BusinessWeek as one of the Top 50 Most Powerful People in Real Estate. Learn from one of the smartest economists in the U.S., who advises the U.S. government and the Federal Reserve on real estate matters. He delves into the topic of bank failures, and sheds light on what lies ahead for interest rates. Full video recording: https://bit.ly/43YaODASlides: https://bit.ly/444rIAoRead the entire interview here: https://tinyurl.com/wzyy5rc8What is the underlying theme for economic activity over the succeeding years?Each year, I spend time in December or January thinking about what is the underlying theme for economic activity over the succeeding years. The reason I do that is this isn't a check against ourselves, the actually team does this, but I want to know whether at the outside of a time period. We had a good feel for the major impulses that were underway in economic activity in particular housing, because as the business Fannie Mae is in and then we use that to test ourselves across the course of the year, what did we miss, if anything or we are just lucky? Did we just make it a lucky guess? But it's also something that we can hang the discussion on when we're talking with people out speaking. So, the interesting fact of it is the optimal number of words for that theme is less than seven. People will remember if it's less than seven words, if it's more than seven, it gets lost so this is for awaiting improvements and affordability. It's not just affordability and housing that rise in interest rates means affordability across the economy and credit affordability, that kind of issue. So, it's intended not just to focus on housing, though it certainly does apply to housing.Housing market supply issue.We believe that geopolitical change is going to lead to the restructuring of supply chains and that's time consuming and expensive. The Fed is going to be leaning against the restructuring of supply chains, and you're seeing the stories emerge now about how difficult it is to replatform your company from one country to another country to strike relationships, shipping and transportation relationships, restructuring those things can be time consuming and expensive. We felt like that we got ahead of that one before  others did. That's going to be a contributor to the underlying rate of inflation for some time.What is the relationship between housing and the business cycle?There is a typical relationship between housing and the business cycle. As the Fed tightens on anticipation of the rise in inflation or in response to the rise of inflation, interest rates go up. Housing is very interesting since this is the first thing that happens: residential fixed investment, which is dynamic targeting building starts to slow; then, the next thing that happens is New Home Sales start to slow because builders are building less and so there are less being sold and then existing home sales start to slow. When the recession is full force and fit, interest rates come down, construction starts to pick up, new home sales start to pick up and existing home sales start to pick up so there's a predictable relationship. That was not the case in 2007 to 2009 because the center of the financial problem was the decline in underwriting standards in real estate so it was the core of the issue.Dr. Doug DuncanFannie MaeJoin our Investing Club: www.montecarlorei.com/investors--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support

What's the state of commercial real estate in San Francisco, California? I will be giving you my personal insights of what I have seen happen to the city and what I think has led the city to its current demise.Read this entire episode here: https://tinyurl.com/mryyfc6b1. A San Francisco office building that was worth $300 million pre-pandemic is now in contract for around $60 million. And that is between 200 to 225/sf. The building next door at 550 California St is reportedly in contracts for $130 a square foot. Lastly, a friend of mine put an offer in an office building about a month ago, her offer was $75 a square foot and although she did not get the building, she ended up going to the second round, which means that people are considering $75/sf offers. Let that sink in for a bit! Rent was getting close to $100/sf per year. And now you are able to buy an entire office building for between 1.5-2 years worth of rent pre-pandemic.2. Uber announced that they will be leasing out their entire office building in San Francisco.3. Google announced that they will be shedding 1.4 million square feet of office space in Silicon Valley. As we all know commercial loans are 3, 5 or 7 year fixed, a lot of them are coming up and they have to refinance at not only double the interest rates, but also they have to refinance when their office building is completely vacant - and nobody will give you financing for that. Operators are returning the keys to the bank, or they are having fire sales which is what happened with this 350 California Street building.4. Nordstrom is closing both of its Stores in downtown San Francisco, citing the changing dynamics of the area that hasn't recovered since the pandemic and has been in the spotlight for crime.5. AT&T just announced that they're closing its flagship store, citing declining customer visits, occupancy and sales.6. Cinemark also just decided to permanently close the Century San Francisco Centre 9 and XD theater following a review of local business conditions.7. Whole Foods in Downtown San Francisco Closing a Year After Opening due to safety issues.8. Several Other Major Retailer closures since the pandemic: Saks Off Fifth, Anthropologie, Office Depot, Amazon Go, The Real Real, CB2, Banana Republic, Athleta, The Container Store, Crate and Barrel, Disney, Marshalls, H&M, The Gap. Imagine how many hundreds of 1,000s if not millions of square feet will be available for rent right now in the retail space alone in this city? But who would want to open anything when criminals can steal what they want, technically up to $950. There are homeless tents in many of these major streets. These people are on drugs, a lot of the times shooting themselves up with needles. Sometimes you're stepping on needles yourself, sometimes they're defecating or urinating right in front of you. Why and who would want to take up that space for rent and who would even be successful there to begin with? 9. Westfield Mall announces that they are returning the keys to the bank, they have been operating in the San Francisco center for over two decades. They are attributing this decision to the challenging operating conditions in downtown San Francisco, which have led to decline in sales, occupancy, and foot traffic. 10. Hilton Union Square (which is one of the largest hotels in the city, an entire block) along with Park 55 Hotel will be stopping payments on their loan.11. Huntington Hotel and Yotel were recently sold in foreclosure auctions. This is not only because San Francisco took a very long time to get out of the COVID mentality, but also, because of the crime and all of the issues with the homeless and everything else.12. People don't want to have conferences in San Francisco anymore. Hotels are struggling.Follow me on Twitter: https://twitter.com/steffboldJoin our investor club: https://montecarlorei.com/investors--- Support this podcast: https://podcasters.spotify.com/pod/show/best-commercial-retail-real-estate-investing-advice-ever/support