The Commercial Real Estate Investor Podcast

Key Takeaways:Hiring a third-party asset manager allows real estate investors to take a step back from active ownership responsibilities while still maintaining control and earning income from their investments.Asset managers serve as the CEO of the property portfolio, handling execution, optimization, and strategic direction to meet the owner's goals.Asset managers assess properties, identify issues, and establish action plans to improve performance, maximize returns, and ensure smooth operations.Regular reporting from the asset manager keeps owners informed without overwhelming them with non-essential details.Hiring an asset manager typically makes sense once a portfolio grows beyond 20-100 units in size or complexity.Asset managers can optimize operations, enhance returns, and add value beyond just maintaining the status quo.Interviewing potential asset managers to understand their experience, systems, transparency, and track record is important for finding the best fit.

Key Takeaways:Tyler discussed new investment opportunities through his syndication platform and encouraged listeners interested in investing to contact him.He shared stories from deals he has filmed for his YouTube series to provide a full picture of deals beyond just the outcomes.Adaptive reuse of vacant office space into flex/industrial space was highlighted as a good opportunity currently.Networking and using YouTube has become a major part of Tyler's business and how he sources deals and clients.Markets like Chattanooga, Greenville, Asheville, and Huntsville were mentioned as up-and-coming smaller markets to watch.Deals can take a long time, with one of Tyler's taking 3 years already, so having multiple deals and projects helps stay motivated during long timelines.

Key Takeaways:- It's important to price listings realistically based on market data to avoid getting a reputation for overpricing properties. Sellers may need to hear from multiple agents before accepting a fair market price.- Ask sellers questions upfront about their goals and how they want the property marketed to develop the best strategy. Different sellers have different preferences like privacy.- Cultivate relationships with potential buyers over many years to have a ready list to market listings to. Taking listings to many buyers helps strengthen negotiations.- Rely on market data and logic in negotiations rather than high pressure sales tactics. Commercial real estate is about problem solving creatively for all parties.

Key Takeaways:Multifamily real estate, especially existing Class B and C properties, can be recession resistant due to people always needing a place to liveHealthcare real estate like medical offices is also recession resistant as people will continue needing medical careGrocery-anchored shopping centers can perform well in recessions as people still need to buy groceries and other daily goodsIt's important to underwrite conservatively, scrutinize tenants, and focus on acquiring assets that can withstand economic downturns through flexible leasing terms and creditworthy tenantsStrategies like locking in long-term fixed-rate debt ahead of potential downturns can help make portfolios more recession-proof

Key Takeaways:- Seller financing, joint ventures, crowdfunding, and lease-to-own arrangements are alternative financing strategies that can be used to purchase commercial real estate without relying solely on traditional bank loans.- These strategies can help circumvent strict bank qualification requirements like credit scores, cash reserves, and experience.- Factors like current finances, experience level, the seller's situation/motivation, and flexibility needs should be considered when choosing a financing strategy.- Being creative and persistent can open doors to capital beyond just banks to start building a commercial property portfolio.

Key Takeaways:Tyler gave a talk on building a personal brand at a conference and is preparing for another talk at Brandon Turner's REI Summit about how to get started in commercial real estate.He recently got approvals to start construction on his boutique hotel project called Salt Lick Ranch in East Nashville after two years of working on it.He is considering hiring another assistant to help with community engagement and daily tasks.He answered various questions about financial modeling, shopping centers vs apartments, deal flow generation, and other commercial real estate topics based on his experience.

Key Takeaways:- Charging for brokers opinions of value (BOV) can help ensure brokers put more time and effort into the analysis, and get clients more invested in working with them.- A BOV should include an in-depth analysis of the property through site visits, comparable property research beyond just Costar data, and a comprehensive written report.- Presenting BOV work as having value for the client's needs, rather than just doing it for free, helps establish the broker's professional expertise and value proposition.

Key Takeaways:Flex spaces are one of the easiest commercial real estate assets to own, with low vacancy rates and high demandDeveloping flex spaces can be profitable if land costs are below $5/sqft and building costs are around $136/sqftUnderwriting deals with an 8-9% cap rate upon completion and an exit at a 7% cap rate can provide good returnsSelling deals allows investors to complete more deals over time for higher returns than refinancingFlex warehousing provides easier ownership than multifamily due to triple net leases

Key Takeaways:Tyler discussed the recent NAR ruling on real estate commissions and how it may impact home buyers and sellers. He had mixed views on the ruling.Tyler shared updates on his recent trip to Buffalo and some of his upcoming speaking engagements and projects he's working on.In the Q&A portion, Tyler provided advice to various commercial real estate questions from listeners regarding development projects, land ownership structures, and strategies for new investors.

Key Takeaways:- There will likely be distressed commercial real estate opportunities coming up, but it may not be as widespread or at "pennies on the dollar" prices as some headlines suggest due to the large amount of capital on the sidelines looking to invest.- Distressed opportunities will be very market-specific, with some markets like San Francisco facing more issues than growth markets like Dallas, Nashville, etc.- Finding distressed deals may involve working directly with banks on problematic assets they want to offload, or approaching distressed owners directly for off-market deals.- When evaluating distressed deals, it's important to underwrite the fundamentals of the specific property and market to identify upside potential.