The Commercial Real Estate Investor Podcast

Key Takeaways:Focus on Simple, Manageable PropertiesLook for properties under $2 millionChoose assets with low operational complexityPrioritize properties with stable, long-term tenantsBest Property Types for BeginnersSmall multi-tenant retail centersOffice condos or medical suitesFlex industrial spacesSingle-tenant triple net propertiesCritical Investment CriteriaSimplicity of operationsManageable sizeTenant and lease stabilityMarket familiarityScalability potentialRookie Traps to AvoidHighly vacant propertiesComplex or unique asset typesUnfamiliar marketsOver-leveraged value-add dealsPractical Next StepsChoose a property type aligned with your strengthsUnderstand the local marketUnderwrite three deals weeklyBuild a network of local contactsFocus on learning, not just immediate profit

Key Takeaways:You can enter commercial real estate without large cash investments by solving specific problems for property owners.Three core principles for entering commercial real estate:Define a clear transformation statementPackage your unique value propositionKnow your monetization model from the startThe commercial real estate "flywheel" strategy:Find a struggling assetSolve the property's problemsGet compensated through fees or equityUse the success as a track record for future dealsTypes of prospects:Cold: Unaware of potential ownership opportunitiesWarm: Struggling with property managementHot: Have capital but need operators/dealsSpecific strategies to add value:Improve property marketingRenovate and upgrade spacesReduce operational expensesBuild tenant relationshipsIncrease rental ratesEntry points can include:Leasing expertiseProperty managementDeal sourcingPartnership development

Key Takeaways:CRE Central App LaunchNew mobile app exclusively for mastermind members and course participantsWill centralize courses, events, and resources in one platformUpcoming Education PlatformLaunching in January 2026University-style commercial real estate educationMajors in brokerage, investment, and developmentAims to be an affordable alternative to traditional college educationRaising Capital StrategiesStart building investor network before finding dealsReach out to potential investors earlyCreate multiple "fishing lines" (personal brand, online presence) beyond cold callingProspecting TechniquesUse affordable tools like white pages instead of expensive platformsFocus on adding value during cold callsBuild relationships and personal brand in the industryUpcoming Events30 Deals in 30 Days Challenge in OctoberMastermind event in October focused on raising capitalLive deal underwriting sessionsFuture PlansDeveloping an AI deal analysis toolExpanding educational resources for commercial real estate professionalsPartnership development

Key Takeaways:Public-Private Deal RisksThe public took all the financial downside while the private owner (Jeffrey Loria) gained all the upsideNo accountability or performance clauses in the dealLack of transparency and no public voteFinancial Structural ProblemsRevenue bonds backed by volatile tourism taxesHigh-interest, long-term debt ($1.9 million bond projected to cost over $1 billion)Principal payments don't start until 2026, extending debt to 2048Real Estate Investment LessonsDemand drives everything - the Marlins had a small fan baseVerbal promises aren't enough; development commitments must be in writingAlways conduct independent financial reviewsArchitectural beauty can't compensate for poor financial fundamentalsConsequencesStadium surrounded by empty lotsNeighborhood saw minimal economic developmentLoria sold team for $1.2 billion, making hundreds of millions in profitAttendance dropped from 2 million to 800,000Political backlash, including mayor's recall

Key Takeaways:Abandoned buildings offer hidden investment opportunities that most investors overlookEvaluate potential properties using a three-part framework:Location-driven demand Structure adaptability Zoning and incentivesSteps to get started:Understand construction costs Research tenant demandLearn to creatively reimagine building spacesProfit potential comes from:Buying properties at low square footage prices Transforming them to create income-based value Potentially generating six to seven-figure profitsKey mindset: See potential where others see problemsDon't be deterred by lack of current cash flow Look for buildings others consider too risky or complicatedPractical advice:Start small Take action Build momentum Learn about your local market

Key Takeaways:Passive Income Strategy:Start with an active, high-value deal that forces appreciationUse a 1031 exchange to roll gains into a passive, cash-flowing investmentAvoid getting stuck in low-return propertiesSpecific Example (Buena Vista Deal):Bought land for $618,000Rezoned from 11 to 63 unitsSold for $1.575 millionUsed 1031 exchange to invest in a self-storage facilityInvestment Approach:Step 1: Take on an active dealStep 2: Force appreciation and exitStep 3: 1031 exchange into a passive investmentStep 4: Repeat the processKey Principles:Build wealth through strategic deal sequencingFocus on creating serious equityMove from working for money to having money work for youAim for scalable, long-term investmentsOutcome:Transformed a land deal into a self-storage facilityGenerating $15,000 monthly passive income per partnerAvoided immediate tax liability through 1031 exchange

Key Takeaways:For new development projects, investors typically want to see a 20% or higher Internal Rate of Return (IRR).An 8% return is considered too low for development projects, which are inherently risky.Equity multiple is often a preferred return metric, with investors looking for around 2x equity multiple in less than five years.When vetting contractors, it's crucial to:Talk to other developers they've worked withInspect their job sitesCheck their professionalism and documentationSeller financing depends on:Talk to other developers they've worked withInspect their job sitesCheck their professionalism and documentationSeller financing depends on:Talk to other developers they've worked withInspect their job sitesCheck their professionalism and documentationDown payment amountBorrower's track recordProperty type and potential riskMarketing and finding tenants requires active prospecting, not just putting up a sign and waiting.For commercial real estate investing, having a track record is crucial - even a small first deal can open doors for future opportunities.Returns and deal attractiveness vary by market, location, and specific project details.

Key Takeaways:Deal Flow Framework (DEAL):Discover: Uncover opportunities before they hit the marketEngage: Build relationships with brokers, owners, and key playersActivate: Create systems to track and follow up on leadsLeverage: Use your network and track record to scaleThree Main Reasons Investors Struggle to Find Deals:Being passive instead of actively seeking opportunitiesWeak broker relationshipsLack of consistent follow-up system Commercial Real Estate Insights:Best deals rarely appear on public listingsRelationships are crucial in finding opportunitiesProactive approach is key (direct outreach, networking, calling owners)Treat deal finding as an ongoing process, not a one-time effortPractical Advice:Spend 30 minutes weekly working on your deal pipelineBuild relationship equity with brokersUse a CRM or spreadsheet to track leadsConsistently follow up with contactsAttend networking events and broker meetings

Key Takeaways:Don't gamble in commercial real estate - have a clear strategyDevelop a Buy Box framework with 5 key steps:- Investor Identity - Asset Class Clarity - Market Focus - Financial Filters - Operational BoundariesKnow exactly what you want before investing:- Your investment goals - Desired property type - Target market - Minimum financial returns - Level of personal involvementBenefits of a Buy Box:- Saves time - Reduces risk - Provides clear investment criteria - Helps quickly eliminate unsuitable dealsFocus on:- Local market knowledge - Matching properties to your personal investment style - Having clear, predefined investment metrics

Key Takeaways:Creative Financing: Brandon leveraged seller financing and creative deal structures to grow his real estate portfolio, starting with house hacking in East Nashville.Freedom Number Approach: He set a clear goal of $10,000 monthly cash flow to transition from tour managing to full-time real estate investing.Partnerships and Delegation: After reading "Who Not How," Brandon learned to partner with the right people and delegate tasks instead of doing everything himself.Family-First Business Design: He intentionally structures his business to prioritize family time, including not working weekends and setting clear boundaries.Hairy Deals Strategy: Brandon sees opportunity in challenging properties by:Getting a low cost basisThoroughly investigating potential issuesGetting accurate repair estimatesMitigating risks methodicallyDiversified Portfolio: He maintains a mix of single-family homes, multifamily properties, and commercial real estate, with a strategic approach to holding or selling based on potential appreciation.Continuous Learning: Brandon views mistakes as feedback and constantly adapts his investment strategy, such as being more proactive about loan terms and interest rates.