The Commercial Real Estate Investor Podcast

Key Takeaways:Leverage technology to supplement, not replace, traditional prospecting methods like cold calling, networking, and building relationships.Focus on building a strong foundation with old-school techniques first before layering in technology tools.Networking is a slow, long-term process, but can pay off significantly if done consistently and with a focus on providing value to contacts.Specialize in a niche and become an expert in that area to differentiate yourself and overcome objections about being too busy.Use social media strategically to align with your target audience and build your personal brand, but don't rely on it as the sole prospecting method.Be prepared for market shifts, like the current tightening of capital markets, and adapt your prospecting approach accordingly.Maintain relationships and perform well on initial deals to secure repeat and referral business from clients over the long-term.

Key Takeaways:Tyler Cauble is looking to hire a Director of Property Management and commercial real estate brokers with at least 3-5 years of experience for his company.Tyler is hosting a webinar on August 22nd about transitioning from residential to commercial real estate investing, and he will be guest lecturing at Vanderbilt's MBA program.Tyler's property management company, Parasol, is growing rapidly and now manages around 2.1 million square feet of commercial space. He is open to acquiring or merging with other property management firms in Tennessee.Tyler has had success growing his CRE Accelerator program to nearly 70 members in just 3 months, and is planning an in-person meetup in October.Tyler cautions against the challenges of ground-up development and managing large multifamily properties, preferring to focus on existing commercial properties.When evaluating deals in flood zones, Tyler suggests the risk and hassle need to be weighed against any potential discounts on the property.For investors interested in working with Tyler's syndication company, Hamilton Development, he recommends booking a call to discuss the process and requirements.

Key Takeaways:Analyzing commercial real estate deals requires a focus on income potential, detailed lease analysis, understanding market trends, and thorough due diligence - much more complex than residential analysis.Important financial metrics in commercial real estate include cap rates, net operating income, debt service coverage ratios, and return on equity/yield on cost - very different from the residential focus on cash flow.The commercial real estate closing process and financing considerations are much more involved compared to residential, requiring a strong team of professionals to navigate.For first-time commercial investors, the advice is to start small, educate yourself, build a team of experienced advisors, and consider partnering with more experienced investors to add value.Networking and adding value are key to finding opportunities and building successful commercial real estate partnerships.

Key Takeaways:Start with simple outreach - drop off brochures, make calls to nearby businesses to identify potential clients.Focus on building relationships with property owners over time through a non-aggressive approach. Offer to be a resource and ask to be considered for the listing if they decide to work with an agent.Leverage completed deals and client successes in your outreach - "humble brag" about the wins you've helped your clients achieve.Use technology like Calendly to make it easy for prospects to book meetings with you.Research prospects thoroughly and tailor your pitch to their specific needs and challenges, rather than taking a broad "shotgun" approach.Position your clients as the hero, not yourself, when telling success stories. Make them the focus.Overcome objections and challenges by continuing to provide value and build trust over time.

Key Takeaways:Start with simple outreach - drop off brochures, make calls to nearby businesses to identify potential clients.Focus on building relationships with property owners over time through a non-aggressive approach. Offer to be a resource and ask to be considered for the listing if they decide to work with an agent.Leverage completed deals and client successes in your outreach - "humble brag" about the wins you've helped your clients achieve.Use technology like Calendly to make it easy for prospects to book meetings with you.Research prospects thoroughly and tailor your pitch to their specific needs and challenges, rather than taking a broad "shotgun" approach.Position your clients as the hero, not yourself, when telling success stories. Make them the focus.Overcome objections and challenges by continuing to provide value and build trust over time.

Key Takeaways:Achieving financial freedom through commercial real estate investing often involves goals like being debt-free, taking care of family (e.g. retiring parents), and having the time and flexibility to live and work where you want.Tyler faced challenges with a development project (Peerless Mill) due to issues with the local mayor and city government. He had to publicly address the problems to get transparency for the community.When dealing with multiple investment opportunities, Tyler advises focusing on deals that align with your goals and priorities, rather than just chasing the next deal out of FOMO. There are more deals available than any one investor can do.Building relationships with multifamily property owners and managers is key for accessing off-market deals. Strategies include joining local industry associations, networking with brokers, and offering to retain existing property management.Triple net leases are very common in commercial real estate and can work for a variety of property types. The structure provides benefits for both landlords and tenants.For new commercial real estate investors, Tyler recommends finding an experienced partner to help secure financing, rather than trying to do the first deal alone as a young broker.

Key Takeaways:Seller financing is recommended, as it allows negotiation of debt terms. Other financing options discussed include joint ventures, restructuring current debt, and raising capital through investor pools.High insurance rates in Florida can make deals difficult to make work financially.Significant tax benefits of cost segregation, citing a $120,000 write-off on a $480,000 building. Industrial outdoor storage facilities may have limited depreciation opportunities.Brokerage tips for new agents: recommends joining a retail team or borrowing an experienced broker's track record to gain an advantage. Cold calling, door-to-door outreach, and direct mail are effective strategies for new brokers.Developing successful micro-restaurant projects: Key factors include no parking requirements, proximity to urban core, and embracing the neighborhood.Launching a brokers mastermind on October 1st. Planning an in-person Serie accelerator mastermind event in Nashville on October 18-19.

Key Takeaways:Importance of people skills and networking in real estate development - Andrew emphasized that the ability to communicate and build relationships with various stakeholders is crucial, even more so than technical skillsAdapting to market conditions - Andrew discussed the need to be flexible and adapt development strategies based on changing market factors like construction costs, interest rates, and supply/demand. Focusing on "singles and doubles" rather than swinging for the fences.Long-term perspective on deals - Andrew noted that while short-term market volatility can impact project performance, taking a long-term view and holding assets can help mitigate risks.Mastering the local market - Andrew advised newcomers to become "masters of the market" by deeply understanding the competitive landscape, rents, occupancy, and pipeline of new supply in their target area.Institutional developers' advantages - Andrew's company Wood Partners, as an experienced institutional player, is still able to get deals done and access capital despite the challenging market conditions.

Key Takeaways:Value-add investments across various asset classes like self-storage, mobile home parks, industrial flex, and retail. Insights on evaluating locations for self-storage facilities and the benefits of luxury storage garages.Medical office space as a relatively stable commercial real estate investment.The importance of being relentless when trying to break into the commercial real estate brokerage industry. Tyler recommended networking, informational interviews, and following up persistently to get a foot in the door. Developing a comprehensive commercial real estate brokerage course that launched in fall 2023.Plans to expand The Cauble Group brokerage to new markets in the Southeast over the next 2-5 years. He will be partnering with local commercial real estate brokers, offering them up to 49% equity in the new branches.Cauble shared his experience with a challenging $18 million acquisition that required creative financing and persistence to complete. He stressed the importance of conservative underwriting, proper planning, and having the right partners when undertaking complex commercial real estate projects.Upcoming Events and Courses:Cauble will be hosting a workshop and property tour for CRE Accelerator members in Nashville in October 2024. He is considering offering in-person classroom courses in the future based on listener interest.

Key Takeaways:Relationships and networking are crucial when transitioning from residential to commercial real estate investing. Building connections with experienced commercial real estate professionals, such as through industry associations and mastermind groups, can provide valuable mentorship and guidance.It's important to start small and limit risk when making the transition. Doing a smaller, lower-risk commercial deal first, potentially with a partner or using seller financing, can help mitigate the learning curve.Adopting the right mindset is critical. Commercial real estate requires a longer-term, more analytical approach focused on steady income and capital appreciation, rather than quick flips.Comprehensive education through books, courses, and hands-on experience is necessary, but should be combined with building relationships and getting practical guidance from experienced commercial investors.Protecting one's reputation is paramount in the relatively small commercial real estate industry, as word can spread quickly about an investor's conduct and capabilities.