The Commercial Real Estate Investor Podcast

Key Takeaways:Commercial real estate investment opportunities like industrial/outdoor storage, flex space, and sale-leaseback deals can provide good returnsIt's important to build relationships with tenants and be a good landlord to secure longer lease renewalsGaining hands-on experience through apprenticeships or working for developers is very valuable for learning the businessHaving a solid operating agreement is critical when partnering or joint venturing on deals to protect all partiesEducating oneself on commercial real estate fundamentals and advanced strategies through resources like CRE Central can help aspiring investors get startedFocusing on the benefits of projects rather than just features helps gain support from municipalities and communities

Key Takeaways:Tenant improvement allowances can vary significantly based on property type, market conditions, tenant needs and landlord requirements.Restaurant and medical space TI deals tend to be more complex with higher costs than other property types.It's important for all parties, especially landlords, to have realistic expectations about TI budgets and costs.Treating certain capital improvements as capital expenditures rather than TI can make deals more attractive to sophisticated institutional landlords.Using market data and net effective rent calculations helps determine if a tenant's TI request is reasonable or aligned with market rates.Understanding motivations is key for brokers to negotiate effectively and find creative solutions in TI negotiations.Communication, setting clear expectations, and bringing value beyond just order-taking are important skills for brokers handling complex TI deals.

Key Takeaways:Using both online and offline strategies is important for finding the best industrial real estate investment opportunities. This includes utilizing platforms, networking, and direct exploration.Building relationships with local brokers, attending industry events, and networking can provide valuable insights and access to hidden deals.Consulting local economic development agencies and understanding their programs/incentives can help align investments with regional growth areas.For auctions, it's important to understand the dynamics, research property history, and set clear budget limits beforehand.Direct outreach to property owners through personalized messages can open doors to potential off-market deals.

Key Takeaways:Determining maximum offers on commercial properties involves calculating cash-on-cash returns and internal rates of return to set pricing.Personal guarantees and clear communication about lease clauses are important for protecting landlords.Partnering by providing sweat equity in exchange for a small equity stake can be a good way for new investors to gain experience without financial risk.Focusing investments on cash flow in addition to wealth building helps mitigate risk from having low cash reserves.

Key Takeaways:Neighbor.com presents an opportunity for commercial real estate investors to monetize unused or underutilized space in their properties through vehicle and equipment storage. This can provide significant recurring income.Storage occupancy rates remain high nationally, but some markets like the Sunbelt are leveling off while others like New York and California continue strong growth. Converting office space directly to residential is challenging and unprofitable in most cases, but converting to self-storage has low capex requirements and high potential returns.Multifamily and other commercial properties often have 20-30% of interior storage units and parking spaces sitting unused, representing an opportunity to work with Neighbor and increase net operating income.Neighbor's platform allows operators flexibility through customization and month-to-month rentals while still providing predictable recurring income streams.

Key Takeaways:Tyler is focusing more on YouTube and investments as his full-time work, building out a YouTube studio and launching new educational programs.Networking and building relationships are important for opportunities like joint ventures, mentorship, and career growth.Due diligence is important when purchasing properties to understand environmental risks and market saturation.Starting focused on one commercial real estate niche helps build a strong foundation before diversifying.Hiring the right people like an investor relations person can help scale a real estate business more effectively.

Key Takeaways:Hard money lending offers consistent returns of 10-12% due to steady demand from real estate investors needing quick financing.Demand for hard money loans is expected to remain high in 2024 due to interest rates at banks being not too far below hard money rates now.Hard money lending provides flexibility and speed that traditional bank loans lack, while still offering decent returns.Investors are shifting capital from equity investing to hard money lending funds that guarantee returns like 10%.Hard money lending can be started with as little as $50,000-$100,000 and successfully scaled up over time.

Key Takeaways:Partnerships can help scale up operations but also introduce complexity and riskIt's important to clearly define roles and responsibilities in a partnership and put them in writingEquity splits depend on each situation and should be based on a fair assessment of each partner's valueReplacing partnerships with debt when possible can help keep more upside for yourself while mitigating riskDoing due diligence on potential partners is critical to avoid issues down the line

Key Takeaways:Tyler and Logan are launching a Brokers Mastermind program to provide coaching and training to commercial real estate brokers.Both Tyler and Logan's brokerage businesses had a challenging Q1 and did not meet their sales goals.Prospecting more through activities like flyer distribution and cold calls is important to generate more leads and deals.It's important to track metrics like time to close, average value by deal type, and allocate time and focus to the most lucrative deal types.Generating leads through content marketing and branding on platforms like LinkedIn and YouTube in addition to prospecting is important to keep pipelines full.

Key Takeaways:Tyler is optimistic about the office sector and believes it will bounce back in 5-10 years as existing office buildings are converted or torn down. He thinks this will lead to a lack of supply.Tyler is developing a boutique hotel project and will be documenting the process to share monthly updates. This could provide useful insights for others interested in similar projects.Tyler fired his original contractor on the Salt Ranch project and had to get his attorney involved to get permits transferred to a new contractor. This highlighted potential issues with permits being in the contractor's name.Tyler sees potential in industrial, flex, and neighborhood commercial real estate in Nashville, particularly in undervalued areas like East Nashville and Madison.Tyler gave advice on wholesaling commercial real estate versus residential and partnering for first development projects.