The Commercial Real Estate Investor Podcast

Key Takeaways:Tyler is working on a boutique hotel project called Salt Ranch and is providing video updates on the project's progress.Cauble is also running an apprenticeship program at Peerless Mill and is in the process of reviewing applications and scheduling follow-up calls.Cauble emphasizes the importance of networking, cold calling, and personal effort in commercial real estate rather than relying heavily on software and technology.He advises aspiring commercial real estate investors to "just do it" and make the leap, finding a mentor and getting hands-on experience.Cauble discusses strategies for evaluating sites, maximizing cash flow, and educating tenants on triple net leases.He also shares his perspective on why banks are hesitant to finance properties with ground leases.

Key Takeaways:Commercial leases are much more complex than residential leases, and everything is typically negotiableNew business owners should assemble a team of professionals (broker, attorney, lender, etc.) to help them navigate the leasing processDetermining the right amount of space for your business can be challenging, so it's important to physically tour spaces and get a sense of the space needsLandlords typically prefer longer-term leases (5+ years) but may be willing to do shorter terms for new businesses if they have a solid business planHaving a detailed business plan can help differentiate your business and give the landlord confidence in your ability to succeed

Key Takeaways:Commercial real estate brokers are on the front lines of the industry and know market conditions well since they are directly dealing with transactions.While transaction volumes have significantly declined, there are still good investment opportunities available for those willing to get creative and work hard.Sale leasebacks can provide liquidity to cash-strapped businesses and are a way for investors to secure properties with negotiated lease terms already in place. This reduces risk compared to other deal types.When markets are downturns, it's a good time to focus on growing your business and positioning yourself for future success once conditions improve.

Key Takeaways:Commercial brokers can provide value by knowing their local market extremely well, including tenants, rental rates, and vacancy times. This allows them to be a trusted resource for investors.Affordable housing development faces challenges from lack of understanding and resistance from some politicians and governments.Micro apartments and efficiency units can help address affordable housing needs, though securing approvals can be difficult.Commercial real estate investing strategies like value-add deals may be better for wealth building than passive triple net lease properties.Alternative sources of financing like other SBA lenders or hard money loans should be explored if initial financing options have high rates.Opportunity zones can provide tax benefits but have been criticized for uneven distribution of benefits across qualified areas.

Key Takeaways:Commercial real estate development has played a major role in transforming Nashville over the past few decades, especially increasing residential units downtown. Economic downturns are challenging but can make developers more resilient if they navigate difficulties successfully. Smaller, neighborhood-focused projects face hurdles in securing financing from conservative lenders but may be viable with the right partners and equity.Studying how other cities developed, like comparing Nashville to Atlanta, can provide insights into a city's long-term growth potential. Developers have a responsibility to consider how projects will impact the surrounding community and environment over generations.Starting in commercial real estate requires finding ways to cover living expenses while gaining experience and determining the right niche or specialization.

Key Takeaways:Tyler provides a process for determining if a value-add commercial real estate deal is good using price per square foot and cap rate calculations.Creative financing strategies like vendor financing may be possible but require careful consideration of costs and risks. When replacing roofs for triple net tenants, it's best to have reserves rather than expecting rent increases to directly offset costs.Choosing the first tenants for a new retail property requires understanding the existing and desired tenant mix for the location and demographic.Community engagement is important for successful rezoning approvals through understanding neighborhood needs and crafting an aligned project.AI can help with small contract changes if its implications are understood, but an attorney is still typically needed for major legal documents.

Key Takeaways:The importance of building a track record through completing multiple successful real estate development deals from start to finish.Partnering with other developers on deals as a way to gain experience without having all the capital.Cold calling institutional investors and differentiating product offerings to scale up from friends and family money.Finding niche asset classes that are undersupplied to take advantage of demand and pricing opportunities.Returning calls and following up on potential opportunities even if they don't seem like a fit initially.Gaining exposure to deals through a career in real estate brokerage before pursuing development.

Key Takeaways:Inflation is significantly impacting QSR tenants, so it's important to consider risks for single-tenant net lease investments in that sector. Relationships with local authorities, neighbors, contractors, and banks are critical for successfully developing commercial properties.Off-market deals can offer better terms than on-market listings, but creative thinking allows finding value in on-market properties as well. Handling difficult situations professionally, such as by negotiating solutions during COVID-19, can turn problematic relationships into valuable partnerships over time.Commercial real estate investing offers various opportunities, from rehabilitating mills to partnering on sale-leaseback deals to developing education programs.

Key Takeaways:It is important to align goals and ensure congruence in objectives and strategies with any potential partners before investing in a project together. Not being on the same page can lead to problems down the road.Properly assessing and managing risk is critical, including understanding different types of risks, likelihood of occurrence, potential impact, and having a clear risk management plan.Partnership agreements should thoroughly address potential issues like buyout provisions, processes for resolving disputes, and responsibilities in worst case scenarios to protect all parties.When evaluating deals, it is important to consider both the existing risk-adjusted cap rate as well as the potential for value add and equity creation through the execution of a business plan.

Key Takeaways:Flex space and light assembly spaces are versatile options for beginner industrial real estate investors due to their ability to accommodate various business needs.Cold storage demand is increasing and it offers stable tenant retention, making it a valuable investment despite potential challenges finding new tenants. Industrial outdoor storage provides cash flow, versatility, low maintenance costs, and potential for future growth, making it a good entry point for beginners.