The Commercial Real Estate Investor Podcast

Key Takeaways:Be conservative in your underwriting and investment strategies: - Bring more cash to the table with higher down payments and cash reserves. - Don't be overly aggressive with rental increases. - Focus on assets that can provide solid, risk-adjusted returns.Explore creative financing options: - Utilize seller financing and lease options to structure deals. - Negotiate contract periods to lock in prices and wait for better financing. - Consider partnerships and strategic alliances to balance risk.Monitor macro trends and be adaptable: - Stay aware of demographic shifts, labor market changes, and technological advancements. - Understand how these factors could impact future vacancy, occupancy, and productivity. - Remain flexible in your approach and be willing to adjust your investment strategy as conditions evolve.Prioritize liquidity and operational efficiency: - Ensure you have sufficient liquidity to weather potential economic storms. - Focus on tightening up your operations and management to maximize performance.

Key Takeaways:Differentiate your marketing by highlighting your proactive tenant outreach and understanding of the right tenant fit for a property, rather than just passively listing spaces.Leverage your experience and expertise to provide value to clients - whether it's showing landlords a structured approach to tenant acquisition or demonstrating deep market knowledge when pitching to tenants.Utilize digital marketing and online presence to attract clients, but tailor the content to provide value rather than just self-promotion.Focus on building long-term client relationships by staying on top of lease expirations and using them as opportunities to secure renewals and extensions.Adapt your negotiation tactics and day-to-day activities to the changing market conditions, such as the current tenant-favorable office market.In the retail sector, demonstrate your ability to curate the right merchandising mix and tenant lineup to attract clients, while also nurturing relationships with emerging, "cooler" tenants.

Key Takeaways:CRE Central offers comprehensive education and coaching for commercial real estate investors, covering fundamentals to advanced strategies.Tyler Cauble recently launched a new, more in-depth underwriting spreadsheet for his CRE Accelerator members, which includes features like a green box for debt service coverage ratio and waterfalls.When choosing between starting at a boutique brokerage or a large firm like CBRE or JLL, the decision depends on the resources needed and the type of clients one wants to work with.Proper underwriting and being realistic about the numbers are crucial in commercial real estate, as Tyler takes a conservative approach to ensure deals work even if things go wrong.The self-storage market has remained relatively stable in terms of cap rates, but Tyler advises looking into markets with more multifamily units than self-storage facilities to find attractive deals.Tyler recommends investing in areas north of the Cumberland River in Nashville, such as East Nashville, Madison, and Hendersonville, as they are undervalued compared to more established markets.Tyler is launching a Broker's Mastermind program in October, designed to teach brokers how to earn a million dollars in commissions in a year.When marketing industrial outdoor storage before the property is complete, Tyler suggests using Craigslist, Facebook Marketplace, and large signage on the property, as well as writing blog posts to attract potential tenants.

Key Takeaways:Potential Interest Rate Drops: There is speculation that interest rates could drop by 25-50 basis points by the end of the year, which could impact the commercial real estate market.Competing with Larger Brokerages: Smaller, boutique brokerage firms can compete with larger national firms by focusing on smaller deal sizes, niche markets, and providing personalized service. Joining a broker's mastermind can also help develop strategies.Wholesaling Land Deals: Wholesaling land can be a viable option, but it's important to ensure there is significant "meat on the bone" for the next buyer to justify the wholesale markup.Finding Off-Market Opportunities: Sending targeted mailers to property owners in specific zip codes can help uncover off-market value-add commercial real estate deals.Partnering for Ground-Up Development: When partnering on a first-time ground-up development, the focus should be on learning and de-risking the project, rather than maximizing the profit split.Importance of Local Market Knowledge: Understanding the unique needs and gaps in a local market can help identify the highest and best use for a commercial property.Choosing a Commercial Brokerage: Joining a commercial-focused brokerage, rather than a residential firm, is crucial for properly learning the industry and gaining the respect of larger investors.

Key Takeaways:Detailed update on the Peerless Mill project, including challenges with getting necessary approvals from the city, but strong community support for the redevelopment.Emphasis on the pros and cons of investing for equity vs. cash flow, and the importance of understanding the investment stage and goals.Advice on finding guarantors and capital partners, including leveraging existing networks and relationships.Tips on researching commercial lease rates, including using online platforms and connecting with specialized brokers.Overview of Tyler's commercial real estate investor mentorship program and the value of the group coaching calls.Willingness to provide referrals to reliable commercial real estate brokers in specific markets.Upcoming plans for a biographical video and an in-person teaching event on transitioning from residential to commercial real estate.

Key Takeaways:Strategic partnerships have been incredibly pivotal in Tyler's career, allowing him to get his first development deal and syndication done, as well as the majority of his deals.Tyler emphasizes that you want to bring in partners who can help with things like signing on debt, providing different forms of cash flow, and contributing different skill sets and relationships.Tyler cautions against beginner investors trying to take 50% of a deal just because they found it, as they likely don't have the capital or skills to afford the downside risk.Tyler shares a personal story about a difficult partnership with a previously close friend, highlighting the importance of aligning values, communication styles, and being able to handle conflicts effectively.Tyler stresses that commercial real estate investing is a team sport, and there's no point in trying to do everything yourself. It's important to focus on your strengths and find partners to complement your weaknesses.Tyler encourages listeners to join the upcoming Brokers Mastermind that he and Logan are launching, as it will provide an opportunity to learn more about building successful partnerships.

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.