The Commercial Real Estate Investor Podcast

Key Takeaways:- Hiring a third party asset manager can allow an owner to take a step back from day-to-day operations and focus on other goals or investments- An asset manager acts as the CEO to oversee finances and hold the property manager accountable - It makes sense to consider an asset manager once a portfolio grows to around 100-200 units- When onboarding a new asset, an asset manager will evaluate financials, goals, timelines, team members, and identify any issues or opportunities- Turning around an underperforming property requires fixing maintenance issues, improving marketing, addressing tenant complaints, and ensuring the property manager is actually completing taskshttps://www.tylercauble.com/podcast/episode181

Key Takeaways:- The commercial real estate market is slowing down significantly compared to last year, with brokerage volumes down 50% or more for many brokers.- Investment sales have dried up considerably, while leasing remains more active as companies still need space. However, cap rates have risen significantly.- The office market faces uncertainty, especially for Class B properties, but Class A properties and well-located spaces are holding up better. Co-working faces challenges after WeWork's issues.- Industrial, especially Class B, remains in high demand due to limited supply. However, there is a large amount of new Class A inventory that could face vacancies if the market pulls back further.- Retail fundamentals remain uncertain but some brokers see opportunities in Class B strip centers. However, new retail development is limited after the "retail apocalypse."- The brokers plan to focus on over-communicating with clients, thinking creatively for new opportunities, growing their teams, and ramping up prospecting and business development activities in the challenging 2024 market.https://www.tylercauble.com/podcast/episode180

- The real estate market is facing challenges like higher costs, difficulty obtaining financing, and uncertainty about the future. However, this also creates opportunities for investors who can find good deals.- Local politics and policies have a major impact on real estate markets, more so than who is in the White House. Investors need to pay attention to their local areas.- Expectations for investment returns will likely need to be adjusted downward, with a focus on cash flow over high IRRs. - Rising costs like insurance are major issues in addition to interest rates, making deals harder to make work financially.- 2024 may see opportunities emerge as developments from the past few years deliver properties into a difficult market environment. Having cash available will be important.https://www.tylercauble.com/podcast/episode179

Key Takeaways:- Tyler is taking a sabbatical from mid-December to mid-January to recharge and plan for the new year.- He is working on a book about commercial real estate investing and companion materials to help visualize deals.- For 2024, Tyler is interested in smaller neighborhood commercial properties, industrial/outdoor storage, flex space, and some residential construction.- He thinks now is not the best time to invest in multifamily due to high prices and low yields. Cap rates need to increase more before it makes sense.- Covered land plays that cash flow are appealing investment opportunities.- Networking, mailing lists, and leveraging one's platform are effective ways for investors to find deals without using expensive services like CoStar.https://www.tylercauble.com/podcast/episode178

Key Takeaways:- Self-serve car washes can provide high cash-on-cash returns, often 30-90%, through improvements like adding credit card readers and changing wash timers.- Locations with high traffic and growth are ideal, as are sites that have been undermanaged and offer opportunities for operational improvements. - Common value-add improvements include updating signage, credit card capabilities, and in-bay automatic equipment.- Self-serve car washes provide diversified revenue streams from multiple bays and amenities compared to single-tenant tunnel washes.- Ongoing management involves daily cleaning, equipment maintenance, and cash handling but can become relatively passive once optimized.https://www.tylercauble.com/podcast/episode177

Key Takeaways:- Tyler is excited about the potential of industrial outdoor storage/vehicle storage properties as covered land plays that can provide good cash flow. He discusses underwriting assumptions and marketing strategies for these types of properties.- Tyler discusses his brokerage business and some recent listings they have picked up. He also mentions a drone he recently purchased to help with property marketing photos/videos.- Tyler fields various questions from listeners about commercial real estate topics like cap rates, specific markets, leasing to certain business types like wine bars, and more.- Tyler seems optimistic about investment opportunities in 2023 and 2024, expecting some distressed selling opportunities as interest rates impact property owners.https://www.tylercauble.com/podcast/episode176

Key Takeaways:- It's important to find your niche and become a thought leader in your area of commercial real estate- Having the right systems and infrastructure like a CRM and calendar are crucial for staying organized- Leveraging technology like podcasts and blogs can help generate leads and position you as an expert- Building a team is important for scaling, but you need to clearly define roles and expectations- It's valuable to get experience on both the landlord and tenant representation sides of commercial real estatehttps://www.tylercauble.com/podcast/episode175

Key Takeaways:- Tyler believes that while office space may decline, it will not disappear completely and flexibility will be important going forward- Flex space is a high-demand asset class with low supply due to redevelopment of existing flex properties- Commercial real estate values have already declined by around 25% and more declines may come as sellers are forced to lower prices- It's still a good time to buy commercial real estate if the numbers work, as properties will appreciate over the long run - The market is becoming more of a buyers market, which provides opportunities but will require more work to find good deals- Interest rates increasing have already slowed the commercial real estate transaction volumehttps://www.tylercauble.com/podcast/episode174

Key Takeaways:Commercial real estate has been slow to adopt new technologies compared to residential real estateProp tech (property technology) is evolving rapidly, with new tools for things like 3D scans, floor plans, analytics, and moreThe future of commercial brokerage is uncertain but brokers will likely still provide value as advisors on complex dealsEmerging technologies like AI, AR/VR, and flexible/short-term leasing models could continue to impact the industryData quality and accessibility remain issues, with opportunities for new platforms to improve on incumbents like CoStarhttps://www.tylercauble.com/podcast/episode173

Key Takeaways:Industrial outdoor storage properties can provide a good covered land play through cash flow from truck parking and potential for appreciation through different exit strategies like selling to investors, developers, or tenants.It's important to find properties in good locations near major highways and without crime or security issues when evaluating potential sites.Self-management is possible but requires flexibility and a system to efficiently handle tenant issues as they come up. Outsourcing management tasks can help scale the business.Utilities, taxes, insurance and management are the main ongoing expenses, while truck space rentals around $175/month each can provide good gross income if the property is mostly leased.https://www.tylercauble.com/podcast/episode172

Key Takeaways:- Marketing is crucial for commercial real estate investors to raise capital and find deals- It's important to determine your target audience and understand their perspective- Building trust and credibility is important, especially without a track record of success- Consistency and quality are important in marketing, not just quantity across many channels- Telling your story through various mediums like photos, videos, newsletters is effective- Offering memorandums should clearly convey opportunity, team, risks, projections to investorshttps://www.tylercauble.com/podcast/episode171

- Nashville was named #1 city for emerging trends for the third year in a row, which is unprecedented- The city is investing billions of dollars in major projects like the Titans stadium, airport expansion, and East Bank redevelopment- Mobility/transit is one of Nashville's biggest challenges as it continues to grow rapidly- Office real estate is facing an existential crisis as work habits change, and will need to evolve significantly - Nashville has a shortage of affordable/attainable housing that will take continued investment to addresshttps://www.tylercauble.com/podcast/episode170

One of the most important skills you can have in commercial real estate is your ability to negotiate leases. Whether you're a broker, business owner, or a landlord, your negotiation skills can be the difference between a successful deal and one that can come back to haunt you later. Today, we're diving into how to negotiate commercial leases, as well as some tips and tricks we've picked up along the way.https://www.tylercauble.com/podcast/episode169

Key Takeaways:- Tyler's commercial brokerage is aiming to increase sales volume by 500% next year through goal setting and action plans with brokers.- Tyler takes an annual month-long sabbatical in December/January to rest and work on other projects.- The commercial real estate market outlook seems gloomy according to Tyler and other investors on the roundtable, with defaults expected to double in the coming months.- Office loan defaults are around 87-89% already, which will likely cause issues for banks.- Tyler recommends prospecting for off-market deals by handwriting letters to 600 property owners and following up quarterly for potential leads.- Tyler's underwriting process is very conservative, targeting a 12% cap rate and stress testing for downside scenarios. He is currently only looking at deals that cash flow from day one.https://www.tylercauble.com/podcast/episode168

When you're first getting started in commercial real estate, it's important that you focus on a specific type of commercial property - office, retail, industrial, hospitality, etc. Doing so will allow you to go an inch wide and a mile deep so that you can better understand how that one property type works and branch out from there. But which type of commercial property should you focus on? Today, we're diving into the asset types that we like to buy and why we decided to focus on those properties.https://www.tylercauble.com/podcast/episode167

Key Takeaways:Tyler visited a large office building in Dallas that was converted into corporate co-working space and thought it showed the future of office space. He thinks gas stations, especially in rural areas, can still be a good investment even with the rise of electric vehicles since many vehicles and equipment won't be electric anytime soon.He recommends always doing a Phase I environmental report for commercial real estate deals to understand any contamination risks.He thinks value-add deals that require renovations can be a good way for first-time commercial real estate investors to build wealth faster than with passive triple net lease investments.https://www.tylercauble.com/podcast/episode166

Commercial real estate is a capital intensive asset class, meaning it takes a lot of money to pull these deals together. But you, personally, don't have to have that cash on hand in order to pull these deals off. We're diving into utilizing commercial real estate brokerage as an income stream and how to start buying commercial real estate investments even if you're broke.https://www.tylercauble.com/podcast/episode165

Key Takeaways:Tyler is getting his general contractor's license because he has found many general contractors to be incompetent. He is flipping his first house after the original contractor went bankrupt.He thinks Birmingham and Huntsville, Alabama are good markets to invest in.When starting in development, he recommends finding an experienced developer to mentor or partner with.For marketing commercial space, he recommends strong SEO, videos, floor plans, social media, and working with the local economic development department.https://www.tylercauble.com/podcast/episode164

Commercial real estate brokerage is one of the best paths to take in the commercial real estate world if you're just getting started. Not only will you learn how these deals get done from the ground up, but you'll be able to get paid doing it and make many good connections along the way if you decide to transition into the investment or development side of things. Today, the brokers talk about how they got started as commercial real estate brokers and offer their advice for anyone looking to break into cre.https://www.tylercauble.com/podcast/episode163

Key Takeaways:Tyler is most bullish on flex industrial properties going forward due to high demand and lack of new construction.Tyler thinks interest rates could drop before the 2024 election but is planning for rates to stay higher for 12-18 months. Finding good deals is one of the most important skills for commercial real estate investors.Building relationships with sellers, lenders, brokers, and contractors is important through regular communication.A downturn in commercial real estate is anticipated in the next 6 months as consumer debt levels rise.https://www.tylercauble.com/podcast/episode162

Imagine the reverse 1031 exchange like trading cards. You have some cool trading cards and you want to swap one card for another, but you don't want to pay any money or taxes for it. Well, that's kind of like what a reverse 1031 exchange is in real estate.https://www.tylercauble.com/podcast/episode161

Key Takeaways:- It can be advantageous to pay cash for land/property and then take out a construction loan against it rather than bundling acquisition and construction into one loan. This makes the financing process easier for banks.- Industrial outdoor storage is a good "covered land" investment that provides cash flow while waiting for future higher/better use development.- When evaluating value-add deals, Tyler looks for 18-22% IRR and 20% annualized cash-on-cash returns over 3-5 years.- Tyler sees opportunities in high-end residential house flipping over the next 2-3 years given the strong housing market, with margins of $50k-$150k per flip.- If Tyler had unlimited funds, he would not syndicate deals and prefer to execute them solely with partner(s) who handle the capital/financing aspects.https://www.tylercauble.com/podcast/episode160

In an era driven by technological innovation, AI has emerged as a game-changer, transforming industries across the board. Let’s dive into the intriguing realm of commercial real estate and AI, uncovering how this powerful combination is reshaping the way we analyze, manage, and invest in properties.https://www.tylercauble.com/podcast/episode159

Key Takeaways:Triple net leases are a good investment option for beginners due to lower risk.It's important for leasing agents to understand commercial real estate valuation and underwriting to negotiate better deals.Flex industrial spaces are a relatively lower risk investment opportunity currently.Building a personal brand and commercial brokerage are good business models for earning income without large capital.Micro-unit developments can lease up faster at lower risk than larger units.https://www.tylercauble.com/podcast/episode158

Commercial real estate investing is an excellent way to earn passive income and build your wealth, but it's certainly not without its challenges, especially if you’re a first-time investor. Here are 5 of the biggest mistakes I’ve seen that first-time commercial real estate investors often make.https://www.tylercauble.com/podcast/episode157

Key Takeaways:Industrial and retail properties are recommended asset classes to invest in currently, while multifamily, office and hospitality face challenges.Flex industrial properties can still make sense to develop since demand is high and projects are pre-leasing.Deal structures can be creative, like carrying back financing from sellers, to make deals work in the current environment.Networking to find investors is important, and skills like deal sourcing and underwriting are valuable to bring to partnerships.Highest and best use analysis through a yield study can help identify future redevelopment potential on a property.Environmental reports are a cost of doing business when purchasing land, and negotiations may be needed over who pays.Building on leased land long-term is generally not recommended due to not owning the underlying asset.https://www.tylercauble.com/podcast/episode156

Raising capital is never an easy feat, but it can help you scale your real estate investments and buy bigger properties than you could on your own. The investors round table discusses how they find investors, pitch these individuals / family offices / funds on placing capital in their projects, and best practices for beginners that are looking to bring private investors to the table on their deals.https://www.tylercauble.com/podcast/episode155

Flex industrial is a wonderful side of commercial real estate to invest in - especially for beginners since the asset is typically easier to manage with low-maintenance tenants. Today, we're diving into everything you need to know about flex space for beginners with Hamza Ali, who is a seasoned commercial and residential real estate investor with an investment portfolio of over $270M in flex space developments in Texas. https://www.tylercauble.com/podcast/episode154

Raising capital can be tough, but it doesn't have to be. Dr. Adam Gower has helped syndicators raise hundreds of millions of investor capital through his crowdfunding platform, Gower Crowd. Today, we're diving into the ins and outs of crowdfunding for commercial real estate, how crowdfunding can help you close on you 1st or your next deal, and any challenges or pitfalls that new commercial real estate investors should be aware of when using this deal structure.https://www.tylercauble.com/podcast/episode153

Collectively, this group has syndicated hundreds of millions of dollars of commercial real estate projects across the country. So today, we're diving into how we got started in syndication, the pros and cons of utilizing this real estate investment strategy, and how to get started if you're interested in syndicating your own deals.https://www.tylercauble.com/podcast/episode152

Matt Anderson with Anderson Legal joins us today as we take a look into Pace Morby’s “Morby Method” for buying real estate investments with no money. While there are certainly many ways that you can begin to acquire real estate with no money down, this method is dangerous and could end in your loan getting called by the bank due to a default on the buyer’s part. Let’s break apart this method and why you should (probably) not take this approach. https://www.tylercauble.com/podcast/episode151

Roberto Gutierrez, with Jackson Builders here in Nashville, joins us today to discuss converting office space into apartment units. Is it possible? How much does it cost? Is it actually worth doing? All questions that we’ll answer today thanks to Roberto’s construction background. Get ahold of Roberto at [email protected]://www.tylercauble.com/podcast/episode150

Payne spent the Summer with us interning here at The Cauble Group, so we're going to dive into how he landed a commercial real estate internship, what his biggest takeaways were, and his advice for others looking to break into the commercial real estate industry.https://www.tylercauble.com/podcast/episode149

Today we're taking a look at the market outlook for commercial real estate in 2023 and beyond - will commercial real estate be an investment-worthy asset with high interest rates and lending uncertainty? This panel has syndicated hundreds of millions of dollars worth of commercial real estate and is weighing in on current state of the real estate market as we see it.https://www.tylercauble.com/podcast/episode148

Office has been going through quite a bit of turmoil recently in this post-pandemic world, similar to what retail experienced in the Great Recession with the arrival of e-commerce. Let’s dive into whether or not office is the new retail. https://www.tylercauble.com/podcast/episode147

Transitioning from multifamily to commercial real estate isn’t really as difficult as it may sure. Sure, there’s a bit of a learning curve there, but you have all of the fundamentals down already if you’ve been underwriting and acquiring multifamily assets. Let’s talk about the similarities between the two and how you can chase after commercial deals to find better yield in this market. www.tylercauble.com/podcast/episode146

Where is the commercial real estate market headed? With soaring interest rates (seemingly set to rise again), banking uncertainty, and inflation, it's certainly an interesting time for this investment class. So, I've brought in some of the best commercial real estate brokers from across North America to discuss what they're seeing in their markets and respective asset classes:Adam Williams: https://www.legacycre.com/team/adam-williams/Chad Griffiths: https://www.naiglobal.com/agents/chad-griffiths,%20mba,%20sior/Jesse Fragale: https://www.avisonyoung.com/professionals/-/ayp/view/jesse-fragale/in/torontowww.tylercauble.com/podcast/episode145

In January of this year, we did an episode covering the $35 million in bank fraud charges that Matt Onofrio, of BiggerPockets fame, was facing and he recently pleaded guilty to those charges. Today, I'll give you an update on the case and talk more about fraud in the real estate world.Check out today’s sponsor, CS Business Screen: https://www.csbusinessscreen.com/caubleArticles Mentioned: https://therealdeal.com/national/2023/07/15/real-estate-investor-matt-onofrio-pleads-guilty-to-bank-fraud/www.tylercauble.com/podcast/episode144b

Brian Luebben is an Entrepreneur, Podcaster, and Real Estate Investor out of Austin, Tx. He made it to the top of a Fortune 500 Company in their Sales Organization, only to realize quickly that living the “corporate america life” for the next 40 years was simply no longer an option. Through his podcast (The Action Academy), cash-flowing real estate, and his Media Company (Sexton Media) he now has generated enough revenue via remote income sources to earn him Financial Freedom to do what he wants, when he wants, with who he wants.This lead to him leaving his corporate job in March 2022, hopping on a one way flight, and traveling the world for 6 months straight.His new mission is to help 1,000,000 other people do the same through The Action Academy.www.tylercauble.com/podcast/episode143

Triple Net (NNN) investing is a phenomenal way to grow your passive investment portfolio. Get answers to FAQs about this lucrative commercial real estate strategy in this video, whether you're a seasoned investor or just starting out.Discover the benefits of Triple Net Leases, including passive income and reduced management responsibilities. Learn about suitable property types and how to evaluate investment opportunities based on location, tenant creditworthiness, and lease terms.Gain insights into lease structures and risks associated with Triple Net Leases. We'll address common misconceptions, covering tenant responsibilities, property maintenance, and vacancy risks.www.tylercauble.com/podcast/episode142

The commercial real estate market is certainly in flux after experiencing rising interest rates, several banks collapsing, and the economic environment shifting. With trillions of commercial loans coming due in the near future, how will this impact the industry? Is the potential commercial real estate default large enough to crater our economy?www.tylercauble.com/podcast/episode141

If you are interested in investing in commercial real estate you have probably run across the term triple net lease and wondered exactly what it is or how its different from a traditional lease. Today we’ll go over the basics of triple net leases and the pros and cons for both investors and tenants.www.tylercauble.com/podcast/episode140

If you are interested in investing in commercial real estate utilizing other people’s money, a syndication may help you get your foot in the door. In this video we will run through the basics of a syndication to give you a nice, short overview of this topic. www.tylercauble.com/podcast/episode139

If you’re looking to passively invest in real estate without any of the work involved in owning and running these investments, real estate investment trusts may be the way to go for you. REITs are organizations that own and operate real estate assets, such as medical office buildings, triple net leases, and shopping centers. They are required by law to distribute a minimum of 90% of their taxable income to shareholders in the form of dividends, which can make for an attractive cash flow play as a passive investor. They’re also traded much like stocks, bringing more liquidity than traditional real estate and a familiar investing process for investors.www.tylercauble.com/podcast/episode138

Unless you’ve been living under a rock for the last 10 years, multifamily properties are often seen as the top choice for investors looking for steady cash flow and appreciation. However, finding deals that check those boxes can be a challenge, especially when you’re in a competitive market like we are today. If you’re getting tired of grinding to find multifamily deals, it may be time to consider investing in other types of commercial real estate.www.tylercauble.com/podcast/episode136

The 1031 exchange is one of the most powerful tools an investor can have in their arsenal for building wealth in real estate. It can help you improve your passive income, simplify property and asset management, assist with your estate planning, diversify your portfolio, and so much more. So, let’s dive on in to “What Is A 1031 Exchange?” in the real estate world.www.tylercauble.com/podcast/episode135

High interest rate environments can have a significant impact on the commercial real estate market. After all, most investors utilize leverage to increase their returns and an increase in borrowing costs makes that leverage more expensive for developers and investors, which decreases potential returns and, therefore, demand for new projects. Here’s how high interest rates impact the commercial real estate market.. beyond.www.tylercauble.com/podcast/episode134

The last decade has been a wild ride for the commercial real estate market. While it has experienced a solid increase across the board in demand, rental rates, and more, the recent pandemic and interest rate hikes have put the asset class to the test. Here are the five biggest issues facing commercial real estate to watch out for in 2023. beyond.www.tylercauble.com/podcast/episode133

The commercial real estate market is always in flux with new trends and developments emerging all the time. As we look ahead to 2023, there are several key trends we’ve identified that we feel are poised to shape the market this year and beyond.www.tylercauble.com/podcast/episode132

If you’re here, you’re probably on the hunt for a way to break into the commercial real estate game. Whether that’s brokerage, development, investment or another angle, there are a few key steps you should take to get started. Here’s how to get started in commercial real estate in 2023.www.tylercauble.com/podcast/episode131