Afleveringen
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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.
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Key Takeaways:
Commercial real estate investment opportunities like industrial/outdoor storage, flex space, and sale-leaseback deals can provide good returns
It's important to build relationships with tenants and be a good landlord to secure longer lease renewals
Gaining hands-on experience through apprenticeships or working for developers is very valuable for learning the business
Having a solid operating agreement is critical when partnering or joint venturing on deals to protect all parties
Educating oneself on commercial real estate fundamentals and advanced strategies through resources like CRE Central can help aspiring investors get started
Focusing on the benefits of projects rather than just features helps gain support from municipalities and communities
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Zijn er afleveringen die ontbreken?
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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.
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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.
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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.
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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.
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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.
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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.
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Key Takeaways:
Partnerships can help scale up operations but also introduce complexity and risk
It's important to clearly define roles and responsibilities in a partnership and put them in writing
Equity splits depend on each situation and should be based on a fair assessment of each partner's value
Replacing partnerships with debt when possible can help keep more upside for yourself while mitigating risk
Doing due diligence on potential partners is critical to avoid issues down the line
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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.
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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.
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Key Takeaways:
Hiring a third-party asset manager allows real estate investors to take a step back from active ownership responsibilities while still maintaining control and earning income from their investments.
Asset managers serve as the CEO of the property portfolio, handling execution, optimization, and strategic direction to meet the owner's goals.
Asset managers assess properties, identify issues, and establish action plans to improve performance, maximize returns, and ensure smooth operations.
Regular reporting from the asset manager keeps owners informed without overwhelming them with non-essential details.
Hiring an asset manager typically makes sense once a portfolio grows beyond 20-100 units in size or complexity.
Asset managers can optimize operations, enhance returns, and add value beyond just maintaining the status quo.
Interviewing potential asset managers to understand their experience, systems, transparency, and track record is important for finding the best fit.
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Key Takeaways:
Tyler discussed new investment opportunities through his syndication platform and encouraged listeners interested in investing to contact him.
He shared stories from deals he has filmed for his YouTube series to provide a full picture of deals beyond just the outcomes.
Adaptive reuse of vacant office space into flex/industrial space was highlighted as a good opportunity currently.
Networking and using YouTube has become a major part of Tyler's business and how he sources deals and clients.
Markets like Chattanooga, Greenville, Asheville, and Huntsville were mentioned as up-and-coming smaller markets to watch.
Deals can take a long time, with one of Tyler's taking 3 years already, so having multiple deals and projects helps stay motivated during long timelines.
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Key Takeaways:
- It's important to price listings realistically based on market data to avoid getting a reputation for overpricing properties. Sellers may need to hear from multiple agents before accepting a fair market price.
- Ask sellers questions upfront about their goals and how they want the property marketed to develop the best strategy. Different sellers have different preferences like privacy.
- Cultivate relationships with potential buyers over many years to have a ready list to market listings to. Taking listings to many buyers helps strengthen negotiations.
- Rely on market data and logic in negotiations rather than high pressure sales tactics. Commercial real estate is about problem solving creatively for all parties.
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Key Takeaways:
Multifamily real estate, especially existing Class B and C properties, can be recession resistant due to people always needing a place to live
Healthcare real estate like medical offices is also recession resistant as people will continue needing medical care
Grocery-anchored shopping centers can perform well in recessions as people still need to buy groceries and other daily goods
It's important to underwrite conservatively, scrutinize tenants, and focus on acquiring assets that can withstand economic downturns through flexible leasing terms and creditworthy tenants
Strategies like locking in long-term fixed-rate debt ahead of potential downturns can help make portfolios more recession-proof
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Key Takeaways:
- Seller financing, joint ventures, crowdfunding, and lease-to-own arrangements are alternative financing strategies that can be used to purchase commercial real estate without relying solely on traditional bank loans.
- These strategies can help circumvent strict bank qualification requirements like credit scores, cash reserves, and experience.
- Factors like current finances, experience level, the seller's situation/motivation, and flexibility needs should be considered when choosing a financing strategy.
- Being creative and persistent can open doors to capital beyond just banks to start building a commercial property portfolio.
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Key Takeaways:
Tyler gave a talk on building a personal brand at a conference and is preparing for another talk at Brandon Turner's REI Summit about how to get started in commercial real estate.
He recently got approvals to start construction on his boutique hotel project called Salt Lick Ranch in East Nashville after two years of working on it.
He is considering hiring another assistant to help with community engagement and daily tasks.
He answered various questions about financial modeling, shopping centers vs apartments, deal flow generation, and other commercial real estate topics based on his experience.
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Key Takeaways:
- Charging for brokers opinions of value (BOV) can help ensure brokers put more time and effort into the analysis, and get clients more invested in working with them.
- A BOV should include an in-depth analysis of the property through site visits, comparable property research beyond just Costar data, and a comprehensive written report.
- Presenting BOV work as having value for the client's needs, rather than just doing it for free, helps establish the broker's professional expertise and value proposition.
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Key Takeaways:
Flex spaces are one of the easiest commercial real estate assets to own, with low vacancy rates and high demand
Developing flex spaces can be profitable if land costs are below $5/sqft and building costs are around $136/sqft
Underwriting deals with an 8-9% cap rate upon completion and an exit at a 7% cap rate can provide good returns
Selling deals allows investors to complete more deals over time for higher returns than refinancing
Flex warehousing provides easier ownership than multifamily due to triple net leases
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Key Takeaways:
Tyler discussed the recent NAR ruling on real estate commissions and how it may impact home buyers and sellers. He had mixed views on the ruling.
Tyler shared updates on his recent trip to Buffalo and some of his upcoming speaking engagements and projects he's working on.
In the Q&A portion, Tyler provided advice to various commercial real estate questions from listeners regarding development projects, land ownership structures, and strategies for new investors.
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