The Commercial Real Estate Investor Podcast

Key Takeaways:Real estate investing in 2024 will require more work but also offer more potential rewards compared to recent yearsTop markets for investment opportunities include Nashville, Raleigh, Durham, Austin, Phoenix, Dallas, Fort Worth, Atlanta due to job and population growthIndustrial, multifamily, and retail sectors maintain positive outlooks while office faces challenges from remote workTarget economically vibrant cities and future-proof buildings that can accommodate different tenantsMaintain rigorous underwriting and stress tests for dealsLook for off-market and distressed opportunities for lower pricesBe patient and selective with deals as the market goes through a repricing period

Key Takeaways:Leasing commercial properties can be challenging for beginners but there are strategies like hiring a professional leasing team or directly marketing to potential tenants.It's important to have a clear buyer profile with specifics like location, size, age of building, etc. when working with commercial brokers to find off-market deals.Getting initial estimates from contractors can help evaluate the viability of flex space/mixed-use development projects before committing to full construction plans.Events like mastermind groups are valuable for networking and learning best practices from other experienced commercial real estate investors.

Key Takeaways:Alec is developing a 10,000 square foot flex industrial building near an airport in Spotsylvania, VirginiaIt's important to do market research and comps to understand achievable rental rates in the areaConstruction costs can vary significantly depending on location, but Alec has estimated a cost of around $112 per square foot for this projectDue diligence like geotechnical surveys and understanding local permitting/fees is critical for development projects Creative financing strategies like seller financing and walking debt can help fund development costs

Key Takeaways:- Hard money lending can be a good alternative investment for earning higher returns than traditional banks, especially as banks become more restrictive. Private lenders like Urban Gate Capital can close loans faster.- Urban Gate Capital has funded over 300 loans totaling over $33 million by structuring an evergreen debt fund to efficiently raise and deploy capital.- They emphasize conservative underwriting by ensuring loans are secured and they can recover principal if needed. Foreclosures have been rare.- Hard money can help bridge gaps for commercial deals like Peerless Mill when traditional financing falls through. Terms like interest-only can make cash flow work better.- Finding quality operators is important, as most issues have come from operator performance, not property issues.

Key Takeaways:Tyler recommends taking 30 days off work each year from December 15 to January 15 as it is typically the slowest time for commercial real estate.He provides advice on getting started in commercial real estate in Nashville in 2024, recommending learning as much as possible, networking, and potentially partnering on a first deal.Tyler discusses some of the challenges he faced with a hard money loan for a house flip where the borrower filed for bankruptcy.He recommends bringing 25-30% of the purchase price as a down payment for a commercial property acquisition and discusses strategies for raising funds from investors.Tyler outlines some of his goals for 2022 which include producing educational content, releasing new courses, and bringing a commercial real estate networking group to Nashville.

Key Takeaways:- 2023 was a challenging year for commercial real estate with rising interest rates and economic uncertainty- Investors are focusing more on stable asset classes like multifamily and industrial properties- Creative deals and alternative asset classes may provide more opportunities going forward- Accessing private/hard money lending could be attractive given current rates- Insulating portfolios from downturns and having a long-term approach will be important strategies for 2024https://www.tylercauble.com/podcast/episode185

Key Takeaways:- It's important to hire an experienced real estate attorney who understands commercial leases and transactions. Referrals from others in your network can help find the right fit.- When reviewing a lease, pay close attention to ensuring the tenant is creditworthy, the lease terms actually make it a true triple net lease, and that there are no early termination rights for the tenant. - Getting an estoppel certificate directly from the tenant is important to verify the status of the lease and rent payments from their perspective.- Assignment and sublease provisions should ensure the landlord retains control over any future tenants in the space.https://www.tylercauble.com/podcast/episode184

Key Takeaways:- Having a systematic approach to building and maintaining relationships with brokers, property owners, and other industry professionals to generate deal flow- Developing clear investment criteria focused on factors like location, demographics, property condition, to efficiently filter through deals - Using technology like Google Maps, PlaceIQ, and virtual assistants to help analyze deals at scale, but still validating data through on-the-ground research- Focusing on consistency by pursuing smaller, lower-risk deals rather than only swinging for "elephants" which are high risk and infrequenthttps://www.tylercauble.com/podcast/episode183

Ian Horowitz, a self storage investing expert, discusses the benefits of hiring an asset manager, turning around underperforming properties, and evaluating financials when onboarding a new asset. The podcast also explores the tech-forward nature of the self-storage industry and niche storage ideas. In a lighthearted chapter, the speakers share humorous anecdotes about facial hair growth. They also discuss the use of 360 tours in real estate and give advice for a cash investor. Wrapping up, they emphasize the value of casual conversations and ask for feedback from listeners.

Key Takeaways:- Hiring a third party asset manager can allow an owner to take a step back from day-to-day operations and focus on other goals or investments- An asset manager acts as the CEO to oversee finances and hold the property manager accountable - It makes sense to consider an asset manager once a portfolio grows to around 100-200 units- When onboarding a new asset, an asset manager will evaluate financials, goals, timelines, team members, and identify any issues or opportunities- Turning around an underperforming property requires fixing maintenance issues, improving marketing, addressing tenant complaints, and ensuring the property manager is actually completing taskshttps://www.tylercauble.com/podcast/episode181