The Commercial Real Estate Investor Podcast

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.

Key Takeaways:Residential real estate is a "second job" with low returns, while commercial real estate offers scalable, passive incomeCommercial properties generate higher cash flow by leasing to multiple businesses under one roof, typically netting around $15,000 monthlyCommercial real estate allows investors to force appreciation by repositioning assets, changing tenant mix, and improving property layoutProfessional commercial tenants are more reliable, focused on business growth, and less emotionally demanding compared to residential tenantsSuccess in commercial real estate requires learning specific skills like deal underwriting, building a specialized team, and choosing the right investment strategy

Key Takeaways:Commercial Real Estate Corruption:Bribery and corruption are prevalent in the industryCommon issues include:Brokers taking backdoor paymentsSharing confidential informationBribing politicians for zoning approvals Contractors inflating project costsInvestment Advice:Always get agreements in writingTrust is crucial when selecting a brokerUnderstand market dynamics before analyzing dealsGet multiple bids for projectsBe cautious of potential conflicts of interestIndustry Insights:AI is increasingly impacting commercial real estateSpreadsheet analysis is less important than understanding market dynamicsEthical practices are critical in deal-makingRecommended Practices:Always counter offersVerify contractor work and costsBuild long-term relationships over short-term gainsBe transparent and maintain professional integrity

Key Takeaways:Passive Income Strategy: Wealthy investors use triple net leases to generate consistent monthly income from properties leased to national brands like CVS, Dollar General, and 7-Eleven.Low Maintenance Investment: These properties require minimal management, as tenants cover all expenses including taxes, insurance, and maintenance.Long-Term Benefits:Predictable income with 10-20 year leasesBuilt-in rent increasesSignificant tax advantagesWealth preservationInvestment Characteristics:Typically cost $1-3 million6-8% annual cash returnTenants are stable, large corporationsOften purchased in cash or with favorable bank termsInvestment OptionsDirect property purchaseREITs (Real Estate Investment Trusts)Fractional investing through crowdfunding1031 exchangesKey AdvantageThese investments are boring but powerful, focusing on steady, long-term wealth building rather than short-term excitement.

Key Takeaways:Early Exposure: Jake's background in real estate started with his father, who was an investor and flipper, which inspired his career path.Networking Strategy: He attended 8-10 networking events weekly and meticulously tracked contacts, believing "network is my net worth."Persistence: Jake used cold calling extensively, making up to 400 calls a day to build his pipeline.Specialization: He focused on 15-75 unit multifamily properties, primarily in the Murfreesboro market.Mindset Shift: Transitioned from a transactional approach to being an investment sales advisor, which helped differentiate himself.Continuous Learning: Invested in himself through masterminds, reading books, and attending industry events.Deal Sourcing: Demonstrated skill in finding off-market deals, including a 16-unit property he sourced and closed after 134 days of follow-up.Marketing Strategy: Uses LinkedIn, case studies, and creative follow-up to keep deals and relationships alive.Technology Adoption: Utilizes tools like Intel CRE for underwriting and Gamma for presentations.Motivation: Being laid off from his previous job drove him to take control of his career and succeed in commercial real estate brokerage.