The Commercial Real Estate Investor Podcast

Key Takeaways:Walgreens is closing a significant number of its US stores, up to 25% of profitable locations, due to an unsustainable pharmacy model. This presents potential opportunities to acquire vacant Walgreens properties in good locations.Tyler advises against buying dollar general stores due to their short lease terms and potential for location obsolescence.Cauble is launching a commercial real estate brokerage mastermind and a 12-week course to teach foundational knowledge for new brokers.We discuss financing strategies for commercial real estate, including using commercial lines of credit and equity in existing properties.Tyler discusses his views on the affordable housing crisis in Nashville, suggesting government incentives and higher density rezonings as potential solutions.Cauble is planning a commercial real estate conference in Nashville in October with keynote speakers, breakout sessions, and exclusive content for his accelerator group.

Key Takeaways:Gather specific market data and property information to strengthen your negotiating positionDetermine your walkaway price and other non-negotiable terms before entering negotiationsUse strategic questioning to uncover the other party's motivations and find common groundEmploy tactics like tactical empathy, flipping the script, and asking "how am I supposed to do that?" to change the dynamics of a negotiationBe transparent and willing to share your experiences, both successes and failures, to help others learn

Key Takeaways:Commercial property valuation involves considering many factors beyond just the cap rate, including rent roll, tenant credit, market trends, population growth, and development costs.Filling information gaps through networking and direct communication is crucial, as data sources like CoStar may not always be accurate or complete.Sudden changes in the market, like interest rate spikes, can significantly impact property valuations and require frequent re-evaluation.Diversifying risk by having multiple tenants in a property is important, rather than relying on a single large tenant.Experienced investors who have been through real estate cycles are valuable, as they can better anticipate and manage risks.

Key Takeaways:Tyler hired an office manager to help run his company and is planning to hire a sales manager next to lead the brokerage team.He is planning a commercial real estate conference in Nashville in October, with exclusive content for his serie accelerator members.Tyler is conducting final interviews this week to select an apprentice for his company.Tyler recommends using apps like LandGlide and CRS Data for real estate research and analysis.He advises getting an experienced partner or consultant when doing new construction projects to avoid issues with contractors.Tyler is open to joint ventures outside his state, but prefers to work with his accelerator students he knows well.He suggests selling residential rental properties and 1031 exchanging into commercial real estate for more passive income and tax benefits.

Key Takeaways:Building a commercial real estate portfolio part-time is possible with hard work, networking, and assembling the right team.Thorough due diligence on leases, tenant estoppels, and debt is critical in commercial real estate investing.Partnerships can be valuable in commercial real estate, but it's important to fully understand the deal and have everything documented.The benefits of commercial real estate investing, like forced appreciation and velocity of money, can outweigh the challenges compared to residential investing.Balancing financial goals with emotional well-being and having adequate liquidity/reserves is important when scaling a real estate portfolio.

Key Takeaways:Thoroughly evaluate the landlord and property management to avoid issues down the line, such as delayed repairs or non-payment of broker commissions. Conduct thorough due diligence on the property, including permitting, construction, and utility access, to ensure the space meets your needs. Negotiate lease terms strategically, focusing on more than just the rental rate and considering factors like renewal options and additional fees. Avoid a "take it or leave it" mentality during negotiations and instead seek common ground to reach a mutually beneficial agreement.

Key Takeaways:Transitioning from residential to commercial real estate investing takes time, patience, and the right mindset. It's not an overnight process.Raising other people's capital can be a great way to get started in commercial real estate, but you need to be very diligent in your underwriting and risk mitigation.Getting into boutique hotels can be challenging, with issues like labor shortages and operational complexities. Focusing on larger hospitality assets with more economies of scale can be beneficial.Building brand loyalty and creating unique experiences for guests are important in the hospitality business.

Key Takeaways:Office space has evolved significantly, shifting from traditional to open floor plans to remote work, similar to the changes seen in retailCauble is hiring for an office manager and integrator roles at his companyCauble is organizing an in-person commercial real estate conference in Nashville this fallCauble and Logan Freeman are launching a commercial real estate brokerage mastermind on October 1, 2024Cauble provided advice on calculating GP percentage for capital raises, the importance of having an active role when raising capital, and the challenges of wholesaling commercial real estate compared to residentialCauble emphasized the value of gaining experience working at another brokerage before starting your own, and the need to prioritize your skills and goals when considering running a brokerageCauble provided tips on tenant selection, including being cautious of auto mechanics and thoroughly vetting potential tenants

Key Takeaways:Opportunity zones are still active and viable, despite some thinking the program has expiredThe biggest benefit is the ability to defer capital gains taxes until 2026 and then potentially avoid them entirely if the investment is held for 10 yearsInvestors can set up a qualified opportunity fund (QOF) to hold their investments and get the tax benefits, rather than having to invest directly in a propertyThe QOF structure provides flexibility, as investors can buy and sell properties within the fund without affecting the 10-year holding periodOpportunity zones can also be used for estate planning purposes to avoid or minimize estate taxes

Key Takeaways:Tenants want certainty and predictability in their lease costs, but landlords cannot fully provide this due to unpredictable expenses.Triple net leases are the most common structure, especially in retail, as they hold landlords accountable and provide transparency for tenants.Lease negotiations require careful attention to key terms like rent escalations, security deposits, operating expenses, and environmental liability.Involving both a commercial real estate broker and an attorney is crucial to navigate the complexities of commercial leases and protect the tenant's interests.