The Commercial Real Estate Investor Podcast

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.

Key Takeaways:Start Investing Early: Residential agents should begin investing in real estate to build cash flow and financial freedom, rather than spending money on luxury items.Cash Flow is King: Focus on creating passive income that can cover your expenses and provide options in life.Partnership Matters: Choose partners carefully and do thorough due diligence. A bad partnership can disrupt your peace of mind and potentially cost you money.Commercial Real Estate Advantages: Commercial properties often have less drama, more stable tenants, and require less day-to-day management compared to residential properties.Patience in Investing: Don't rush to do deals just to do them. Wait for opportunities that truly make financial sense, especially in challenging market conditions.Time Freedom is Valuable: Prioritize controlling your time over simply chasing money. Investments should provide you with more life options and flexibility.Continuous Learning: Enjoy the process of investing, keep showing up, and understand that building wealth is a journey, not an overnight success

Join Dave Codre from Greenleaf in Atlanta as he shares insights into the world of commercial real estate, particularly his shift from multifamily to flex spaces. He discusses the advantages of flexible layouts that attract diverse tenants and the importance of strategic maintenance for enhancing tenant satisfaction. Dave also delves into the financial aspects of investing, emphasizing double-digit returns and transparent profit splits. Learn about the Friars Crossing deal and why clean, functional spaces can significantly drive occupancy and market value.

Discover why investing in apartments may not be the path to financial freedom as many believe. Hear about alternative strategies like self-storage and triple net properties, which offer stable cash flow and less management hassle. Successful investors share insights on pivoting from multifamily to these unique asset classes, resulting in reduced stress and improved personal freedom. The importance of seeking diverse investments over sheer quantity is emphasized, guiding listeners to make informed decisions for a fulfilling investment journey.

Key Takeaways:Advice on leaving W2 job for real estate syndication:Don't leave your W2 job too quicklyStart small and gradually build your portfolioFees from initial deals likely won't cover living expensesHave a backup income source while growing your real estate businessChallenges of starting a syndication:Raising capital is difficultInitial deals may not generate significant incomeNeed to be prepared for 2-3 years of limited earningsRequires careful deal selection and strategic planningPersonal updates:Closing first solo commercial real estate dealWriting third book on commercial real estateGrowing mastermind groups to 140-160 membersUpcoming events and speaking engagementsInvestment strategy recommendations:Partner on deals when possibleStart with smaller projectsBuild relationships in the industryBe patient and strategic about growth

Key Takeaways:Alec transitioned from residential to commercial real estate, focusing on industrial and flex space development.His first commercial deal was a 54,000 sq ft industrial property in a tertiary market, purchased through creative financing with partners.Raising capital is often the most challenging part of development, more so than the construction process itself.Alec chose New Braunfels, Texas for development due to faster site plan approval times and favorable building regulations.He focuses on building flex space under 12,000 sq ft to avoid expensive sprinkler system requirements.His current project involves four buildings with a total development cost of around $10 million, targeting rental rates of $16-$20 per square foot.Key lessons learned include the importance of:NetworkingUnderstanding market nichesManaging people and relationshipsCreative financingThorough due diligence

Key Takeaways:Economic Uncertainty: There are potential signs of a recession, with five major economic forces potentially suppressing US economic growth through 2025-2026.Commercial Real Estate Outlook: The market is unpredictable, with potential both positive and negative impacts across different asset classes (retail, office, multifamily, industrial).Investment Strategy Advice:Don't make decisions based on fearLook at investments with a long-term perspective (5+ year horizon)Keep cold calling and networkingFocus on buying good assetsBusiness Approach: Treat commercial real estate as a professional business, not a hobby. Use professional services like property managers and brokers.Current Challenges:High construction costsHigh interest ratesPotential economic slowdownReduced immigrationGrowing US federal deficitPractical Tip: For flex space, consider renovating existing properties rather than building from ground up due to current economic conditions.