The Commercial Real Estate Investor Podcast

Key Takeaways:Contractor Selection Strategy:Always be networking and meeting contractors before you need themNot all contractors are skilled in every type of project (e.g., house builders aren't necessarily restaurant builders)Look for contractors with specific experience in your project typeContractor Engagement Approaches:Design-Bid-Build: Fully design project first, then get contractor bidsDesign-Build: Bring contractor in early to consult during design processEach approach has pros and cons depending on project scale and budgetNetworking Tips:Attend industry events like Urban Land Institute, ICSC, local Real Estate Investor Association meetupsBuild relationships before you need themBe open to unexpected connections and opportunitiesInvestment Insights:Understanding and marketing an asset is crucial to its successThe ability to tell a compelling story about an investment can impact its future sale valueAlways be learning and expanding your professional networkPersonal Updates:Recently spoke at Midwest Real Estate Investors ConferenceOnboarding a new admin assistantExpanding brokerage team due to increasing workload

Key Takeaways:Leverage Your Existing NetworkShare what you do professionallyHave one-on-one conversationsTell stories about successful clientsAsk for specific referralsHyper Local FarmingFocus on a manageable geographical areaWalk and know your target marketAbout 5% of properties may be interested in trading at any timeDoor knocking, cold calling, and direct mail can be effectivePosition Yourself as an Online ExpertUse platforms like LinkedIn, podcasts, blogsShare valuable market insights and dataCreate content that solves problemsTell stories about your deals, highlighting unique solutionsShowcase market trends and statistics

Key Takeaways:Commercial Real Estate Investment Insights:Returns vary based on risk and market conditionsLong-term real estate investing is more stable than short-term speculationLook for risk-adjusted returns, not just raw percentage numbersCurrent Projects:Salt Ranch boutique hotel is near completionStarted construction on a 350-unit self-storage facility in ChattanoogaRestructuring his company with more back-office supportInvestment Advice:Real estate has historically appreciated 3-5% annuallyHard assets like real estate can hedge against inflationBuy when others are afraid, as properties might be "on sale"Market Challenges:Key external variables to watch: tariffs on construction materials and interest ratesLocal market fundamentals are more important than global trendsInvestment Strategies:Diversify across different property typesConduct thorough due diligenceConsider long-term potential of markets and specific propertiesProfessional Development:Learn from experienced developersNetwork and attend industry eventsConsider becoming a broker or property manager for short-term incomeConsider additional costs like health insurance when transitioning

Key Takeaways:The $370K underwriting mistake that changed everything How Marcus scaled from one car wash to a multi-property empire Why strong banking relationships are a growth cheat code The power of treating tenants like partners • How he’s setting his kids up to run the family portfolio

Key Takeaways:Commercial Real Estate Misconceptions:Making money is not just about rent exceeding expensesCommercial real estate investing is not 100% passiveBigger numbers shouldn't scare investorsHaving the right sales team can help get better dealsAdvice for Investors:Treat commercial real estate like a businessBuild strong systems to manage propertiesNetwork with brokers and use strategies like mailers to find off-market propertiesDon't leave your W-2 job too quickly, as it helps with loan qualificationPersonal Experience Insights:The speaker recently had to restructure his team, reducing staff by using AI and technologyFirst years in commercial real estate brokerage can be challenging, with low initial earningsIt takes 3-5 years to become a successful commercial real estate brokerLoan and Income Considerations:Banks prefer lending to those with more cashRecommended to have 100% of current W-2 income from real estate before leaving jobConsider additional costs like health insurance when transitioning

Key Takeaways:Embrace AdversityChallenges are constant in commercial real estateView obstacles as opportunities for growthAlways be prepared to solve problemsBuild Your Personal BrandBecome an expert in your specific market or asset classUse social media to provide valuable, authentic contentNetwork within industry associations and communitiesAdd Value ConsistentlyFocus on helping clients beyond just closing dealsProvide strategic insights and genuine supportPlay the long game in relationship buildingMaintain Pipeline and MomentumContinuously prospect and generate new businessSeek early successes to build confidenceBe proactive in finding opportunitiesLeverage Unique BackgroundUse previous industry experience as a competitive advantageFind mentors who can help you translate your skillsCreate a niche by combining your expertise with commercial real estate knowledgeAdapt to Market ChangesStay flexible during economic shiftsView market challenges as potential opportunitiesContinuously learn and refine your approach

Key Takeaways:Tariffs will significantly impact commercial real estate, especially industrial and retail sectors, by increasing construction and material costs.Manufacturing relocation back to the US will take 4-5 years minimum, with full impact potentially taking 10+ years.Businesses are likely to face immediate price increases due to tariffs, potentially causing economic uncertainty and reduced transactions.Coastal cities and port-heavy markets may be hit hardest by import/export disruptions.Opportunities still exist in commercial real estate, particularly in value-add projects involving renovating existing buildings.Landlords should:Communicate openly with tenantsBe flexible with lease termsPrepare for potential vacanciesFocus on long-term strategiesThe current economic environment suggests caution, with an emphasis on making steady, conservative investments rather than seeking big wins.Interest rates may rise to combat inflation caused by tariffs, making current rates attractive for investment.

Key Takeaways:Occupancy dropped from the seller's claimed 93% to as low as 58%, but has now climbed to the high 70s.Partnering with a moving company (Six Demand Movers) provides unique advantages in filling units and getting above-market rates.Major operational challenges included:Transferring property management softwareOnboarding a call centerFixing maintenance issues (gate, HVAC, doors)Tenant retention strategy focuses on:Responsive maintenanceFlexible fee policiesBuilding relationshipsServing long-term, multi-unit clientsFuture plans include:Reaching near 100% occupancyAdding 40-52 new units using shipping containers and movable unitsPotentially expanding to 130-140 total unitsImproving property curb appealKey financial insights:Each unit is worth approximately $17,300Adding units can significantly increase property valueAvoiding marketing expenses creates substantial valueSeasonal considerations: Peak moving/storage season is March to October, with slowest months in January and February.

Key Takeaways:Location Matters: Choose a location that fits your specific investment strategy and asset class.Cash Flow is Critical: Aim for properties that can cover debt service, especially in the current interest rate environment.Environmental Due Diligence: Always conduct a phase one environmental report to identify potential contamination risks.Property Age Considerations: Older properties can have expensive maintenance issues, particularly with plumbing, HVAC, and infrastructure.Zoning Verification: Always double-check zoning with the city, as local tax maps can be inaccurate.Parking and Accessibility: Evaluate parking needs based on the specific market and neighborhood.Surrounding Neighborhood: Assess the condition of nearby properties and potential for future development.Tenant Compatibility: Consider how surrounding businesses and potential tenants align with the property's intended use.Feasibility Study: Do quick initial calculations to determine if a deal is worth pursuing further (e.g., price per square foot, potential rental rates).Investment Strategy: Look for opportunities to potentially double your money in 3-5 years through a combination of cash flow and appreciation.

Key Takeaways:Tyler hosted a successful CRE Accelerator Mastermind event in Birmingham, Alabama, where they covered topics like developing flex space, underwriting, and case studies from members.Tyler is planning the next in-person mastermind event in Nashville, which will focus heavily on underwriting practice and property tours.Tyler is under contract to purchase a 4,000 sq ft building in East Nashville to convert into an event space and YouTube studio for his business.Owner-occupying commercial real estate was highlighted as a good way for business owners to build their real estate portfolio.