The Commercial Real Estate Investor Podcast

Today's guest is Jesse Fragale - a commercial real estate broker with Avison Young and an investor in Toronto, Canada. He started investing in student rental properties a little over ten years ago and transitioned to investing multi-family apartments, which is his focus today. You can check out his podcast Working Capital The Real Estate Podcast. We're diving into the recent banking collapses, the state of the commercial real estate market, and how interest rates are impacting commercial investments.www.tylercauble.com/podcast/episode130

Over the last few days, both Silicon Valley Bank and Signature Bank have collapsed, causing the Feds to step in to ensure depositors in both banks don't experience losses. SVB focused more on tech startups, but Signature Bank had some serious commercial real estate holdings. Over $30 billion, according to their annual report for 2022. Will this cause a ripple effect across the commercial real estate world?www.tylercauble.com/podcast/episode129

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.www.tylercauble.com/podcast/episode128

The Commercial Real Estate Investor Podcast, we're diving into which asset classes you should love and which ones you should avoid buying in 2023.www.tylercauble.com/podcast/episode127

Julia Hurley is a state politician turned Realtor with one of the top residential teams in the Knoxville area. Today, we dive into how residential and commercial real estate positively impact each other and the importance of mixed-use development for maintaining desirable communities, lessening the strain on infrastructure and growth, and how you can have an impact on local zoning codes in your area.www.tylercauble.com/podcast/episode126

The Urban Land Institute (ULI) is the leading resource for commercial real estate professionals. Each year, they release their emerging trends in commercial real estate, so we'll be diving into which cities, product types, and strategies should be on your radar as we head further into 2023.Article Referenced: https://knowledge.uli.org/-/media/files/emerging-trends/2023/emerging-trends_uscanada-2023.pdfwww.tylercauble.com/podcast/episode125

Normally, I keep this channel pretty positive. I don't like to talk about other people and choose to stay in my lane, but instances like this one must be discussed to prevent future fraud and protect my audience. I've been involved with a fraudulent partner before, so I'll be reviewing Matt Onofrio's current situation and allegations, as well as pointers to help you notice and stay away from individuals like this in the future.www.tylercauble.com/podcast/episode124Articles mentioned:https://www.marketwatch.com/story/turns-out-a-real-estate-guru-peddling-the-deal-of-a-lifetime-was-really-a-fraud-prosecutors-say-11669928059https://www.justice.gov/usao-mn/pr/wisconsin-man-indicted-35-million-bank-fraud-scheme

Industrial real estate has exploded over the last cycle and doesn’t seem to be slowing down any time soon. Let’s dive into 4 reasons why the industrial outlook is so damn good.www.tylercauble.com/podcast/episode123

Russ and Joey share their perspective on investing in commercial real estate syndications from the investors' perspective - how to find syndications, when (and when not) to invest, and pitfalls you can avoid as a passive real estate investor. The duo run Wealth Without Wall Street, which is an online community that seeks to re-educate business owners & families how money truly works. Their goal is to teach people how to enhance savings, increase cash flow and create passive income all without the help of Wall Street. The secret to doing this is having your money work for you, not someone else.www.tylercauble.com/podcast/episode122

Today, Tyler talks about the Projects he has, both in development and up and running, on Dickerson Pike in Nashville, Tennesseewww.tylercauble.com/podcast/episode121

The Build to Rent model has exploded in popularity this past economic cycle as institutional capital has gained the ability to finance acquisitions of entire SFR communities as if they were a single multifamily asset. Today, we're covering the problems that this investment model creates for the American consumer looking to purchase a home. www.tylercauble.com/podcast/episode120

Some people are DIY types.When it comes to any kind of project (including commercial real estate investing), they love the idea of “doing it yourself.”I’ve got a lot of respect for those people, but what about the rest of us?That’s probably the best way to think about commercial real estate syndications … the difference between “DIY” and “Done For You.”If you love taking the time and effort of researching a market, making calls yourself, and laying down a bit more risk, you’ll probably want to work with a brokerage, that’s DIY.If you don’t have the time for research, road work, negotiations, and paperwork, real estate syndications -- the Done For You choice in this analogy -- might be the answer.I’ll say this, if I had to start over from scratch, I’d go all in on a trusted, proven syndication.So let’s take a closer look at why I think you should invest in commercial real estate syndications, and a little advice about how to get it done right ...www.tylercauble.com/podcast/episode119

Active and passive real estate investing are two sides of the same coin that can provide you with similar returns and benefits depending on what your strategy and goals are. Here’s how to decide if you should be actively or passively involved in your commercial real estate investments.www.tylercauble.com/podcast/episode118

“Debt is bad.” Most of us grow up learning and believing that statement (or something close to it) to be true. And, for the most part, it is. But like everything else in life, context is, well … everything. For example, if you came to me and told me you were unemployed, going to max out four credit cards, and ask grandpa for a loan to buy a brand new F150, I’d tell you that’s a straight up bad idea. And the “debt is bad” advice is mostly talking about just those sorts of transactions, consumer debt. But what about using debt in a different context? What if you’ve spent hours and hours researching a particular investment, a proven investment that you thought had a reasonable chance of return? What if you came to me asking whether that might be a good use of debt? Well, I always refrain from giving advice like that, but for the sake of this analogy, I might be convinced it’s a good idea. Here’s the thing… debt isn’t always bad. You have to be smart and careful in your use of it, but it can be a powerful weapon when it comes to investing in commercial real estate.www.tylercauble.com/podcast/episode117

The Build to Rent model has exploded in popularity this past economic cycle as institutional capital has gained the ability to finance acquisitions of entire SFR communities as if they were a single multifamily asset. Today, we're covering the problems that this investment model creates for the American consumer looking to purchase a home. www.tylercauble.com/podcast/episode116

Looking to get into commercial real estate? in this video we'll go over some of the basic things you need to know before you buy!1) What is Commercial Real Estate2) Commercial Lease Structures 3) Your A-Team4) Raising Capital For Investments 5) How Much Can You Actually Make?www.tylercauble.com/podcast/episode115

After you've gone under contract on a property and are performing your due diligence, what should you consider a "red flag" that might make the property worth walking away from? This past week, our NNN investment team advised a buyer to walk away from a property we put under contract due to multiple red flags that arose during our due diligence process. Here's when you might want to consider walking away from an investment opportunity.www.tylercauble.com/podcast/episode114

Inflation is higher than it's been since the 80s and interest rates are on the rise. Both of these factors will have an impact on commercial real estate and its viability as an investment vehicle, but what happens when the two are combined like we're seeing today? Here's how high inflation and higher interest rates will impact the commercial real estate investment market. // Articles Mentioned: https://www.investopedia.com/terms/i/inflation.asp https://www.pbmares.com/inflation-impact-commercial-real-estate/ https://pointacquisitions.com/how-high-interest-rates-affect-commercial-real-estate/ https://www.jpmorgan.com/commercial-banking/insights/rising-interest-rates-effect-on-commercial-real-estateshow notes:www.tylercauble.com/podcast/episode113

Can real estate investments provide you with the guaranteed, passive income that annuities will? With an annuity, you'll pay in once or over time and at a certain point, you'll receive guaranteed payments that allow you to have predictable income, which is great for retirement. But commercial real estate, especially triple net properties, may provide you with dependable income at higher returns for each dollar invested. // Articles Mentioned: https://www.investopedia.com/terms/a/annuity.asp https://www.tylercauble.com/blog/investing-in-triple-net-nnn-properties https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/bond-ratingsshow notes:www.tylercauble.com/podcast/episode112

Let’s talk about off-market commercial real estate: what it is, why you should look to buy off-market properties, and how to find them. If you’re on the hunt for commercial real estate, I obviously don’t need to dive into the many benefits that this investment vehicle can bring you. You already know that commercial real estate investing is for you, but you’re likely having a hard time finding good opportunities that fit your criteria. These properties don’t ever come up for sale, so how are they still trading hands? Well, they’re being sourced off-market, so here’s my quick guide on how to find off-market commercial properties. show notes:www.tylercauble.com/podcast/episode111

Today, you’re going to learn 12 different ways to build passive income through commercial real estate investing. It’s no secret that real estate offers one of the best wealth-building opportunities today. There are no other investment vehicles like it. show notes:www.tylercauble.com/podcast/episode110

There’s a different types of commercial real estate to fit every investor. Whether you’re looking for the flashy, “sexy” look that comes from commercial real estate investing or a more rugged, under-the-radar approach, there’s an asset type for you. Here are the 5 primary types of commercial real estate you can invest in: 1. Multifamily 2. Office 3. Retail 4. Industrial 5. Hospitalityshow notes:www.tylercauble.com/podcast/episode109

Today, I'm going to teach you how to calculate commercial rents based on price per square foot. Commercial real estate, much like other industries, is rampant with its own unique lingo. Words like “triple net” and “cap rate” are thrown around as if they’re common knowledge, but if you’re not in commercial real estate, you likely won’t be able to keep up with the various terms. Calculating commercial rent can be just the same. When a commercial real estate broker or property owner tells you that their property is “$32.00 per foot, triple net,” what does that actually mean? Wouldn’t it be easier if rent was just given on a total monthly amount? Well, yes and no. Commercial rents are calculated on a price per square foot basis because, more often than not, spaces may be divided or combined. These numbers give industry professionals a quick snapshot to compare rent prices among various properties. After all - $5,000 per month doesn’t tell you how big the space is or what is included in the base rent. Here's how to calculate commercial rents when you've been given a price per square foot and I'll also include a commercial rent calculator. show notes:www.tylercauble.com/podcast/episode108

The first property I ever bought cost me $0 out of pocket. Today, I’m going to show you exactly how I did that, step by step. I’m Tyler Cauble and welcome back to my channel where each week we’re dropping new videos on commercial real estate investing strategies, leasing & management tips, market updates, and more. Commercial real estate can be an incredible wealth-building opportunity. In fact, many of the world’s billionaires have diversified their investment portfolios with this asset class due to its relative stability, appreciation, and ability to leverage. But it can be expensive. Unlike stocks, bonds, and other investment vehicles, you can’t get started on Robinhood with pocket change - you’ll likely need tens (if not hundreds) of thousands of dollars. And if you’re like me, waiting to accumulate that much cash just to get started seems like a waste of time and opportunity. So, here’s a step by step guide to how I bought my first office building with no money out of my pocket so that you can do it, too.show notes:www.tylercauble.com/podcast/episode107

Let’s talk about off-market commercial real estate: what it is, why you should look to buy off-market properties, and how to find them. If you’re on the hunt for commercial real estate, I obviously don’t need to dive into the many benefits that this investment vehicle can bring you. You already know that commercial real estate investing is for you, but you’re likely having a hard time finding good opportunities that fit your criteria. These properties don’t ever come up for sale, so how are they still trading hands? Well, they’re being sourced off-market, so here’s my quick guide on how to find off-market commercial properties. show notes:www.tylercauble.com/podcast/episode106

Jeremy hails from Los Angeles, but has cooked for years in San Francisco and Austin, TX. His passion for fermentation is rivaled only by his passion for business ethics. He is always dreaming of a better world for farmers, restaurants, and their workers. He likes all the same music as Drew and Megan, prefers dogs to people, and is constantly trying to identify the soul in food and how to capture it.

Are you diversifying your portfolio? Today, we’re talking about building your commercial real estate investment portfolio - why you should be investing in commercial real estate, strategies for approaching the investments, and how to properly scale your business. Commercial real estate is an incredible wealth-builder. These properties can provide you with cash flow, appreciation, tax advantages, and other benefits unlike any other investment vehicle. If you’re looking for the ultimate retirement plan, commercial real estate investments might just be the path for you and are a terrific way to diversify, if nothing else. Here’s how to add commercial property to your portfolio and why you should. show notes:www.tylercauble.com/podcast/episode104

The tenant representation process is often new for most business owners, and the questions you ask your commercial real estate broker can define whether or not your search is successful. Finding the right commercial broker for you and your business is absolutely crucial to your finding and negotiating the best deal possible. After all - you want your new venture to be successful, correct? Unfortunately, many business owners end up taking the wrong approach and try to find and negotiate for space on their own - a big no no in this industry due to the massive learning curve of information. So, if you’re taking the right approach and hiring representation, what questions should you ask when interviewing potential tenant rep brokers?show notes:www.tylercauble.com/podcast/episode103

Most business owners struggle to find commercial space for rent. Finding and leasing commercial space isn’t the easiest task and the world of commercial real estate seems shrouded in mystery. Unlike the residential, commercial real estate doesn’t have a “one stop shop” resource like the MLS or Zillow. While you can certainly utilize tools like Loopnet or Craigslist, they often don’t have up to date information and can still be difficult to use. But how do you find your next commercial space? Even though there’s no apparent database of commercial property listings, you still have a few options. Here are three ways for a business owner to find commercial space for rent.show notes:www.tylercauble.com/podcast/episode102

Amenity packages can make or break your real estate investment, so we’re covering Why the Top Commercial Real Estate Investors Focus on Amenities. The exponential growth of online ordering has caused a massive shift in the way we experience retail today. Retailers that refused to adapt to the new age have, unfortunately, fallen by the wayside. Commercial real estate investors and developers are all too aware of how these changes will impact their bottom line, too, and, they’re making moves to keep up. Amenities are one way that a project can stand apart in a sea of commercial real estate options. They catch the tenant’s eye, bring benefit to their employees and customers, and help curate a memorable experience which is crucial in today’s marketplace. Focusing on the best amenities possible will be one of the most important real estate investment strategies for 2020 and 2021.show notes:www.tylercauble.com/podcast/episode101

Everyone’s heard of cash on cash returns, but there are other ways to determine how successful a real estate investment is. Today, I’m going to show you How To Calculate Commercial Real Estate Investment Returns using my three go-to calculations: Cash on Cash, Internal Rate of Return, and Return on Equity, which is where many investors miss out. If you’re investing in commercial real estate, you’re probably looking for a return on your capital. And one of the most attractive aspects of having commercial real estate investments is that you can receive monthly dividends through cash flow while hopefully gaining appreciation on the property. But you need to have a concrete method to be able to determine which investment you should take on next or how your current portfolio has performed after acquisition.show notes:www.tylercauble.com/podcast/episode100

Today, we’re going to be talking about tenant improvement allowances when leasing commercial real estate: what are they and how do they work? If you have ever started a search for commercial real estate, you likely know that your new space will require some form of build-out. It’s almost guaranteed. Whether you are searching for retail, office, or industrial property, it is important to plan for construction and the costs that are associated with retrofitting a space. Although looming construction costs can be intimidating, tenants have the option to push for a tenant improvement allowance in order to help mitigate the costs associated with a build-out.show notes:www.tylercauble.com/podcast/episode099

Retail real estate is considered to be any brick-and-mortar storefront used by businesses to sell their goods and/or services to individual consumers for their own personal use. This category encapsulates every business from a small boutique clothier to a large high-end restaurant and everything in between. When beginning your search for retail space, rent is not the only cost you should be considering. While certainly an important number, there are several other expenses you will need to factor into your budget to ensure the long-term success of your retail business. At the forefront of your search, understanding what kind of retail space your budget allows for is just as important as understanding different kinds of lease structures or what kind of areas you should be targeting. Here are the expenses involved in leasing retail space. show notes:www.tylercauble.com/podcast/episode098

Chef Chad Newton - Founder of YAHH, has been in the restaurant business for most of his life, still loves it and wouldn’t choose to do anything else. He is driven by hospitality and the urge to serve others, while also dedicated to creating financially sustainable business models and concepts for his group and partners. Past experience includes the fine dining world where Chef Newton earned a Michelin Guide short listing while at Fish & Farm in SF, CA. A multitude of consulting projects including Hilton Hotels, The Kimpton Group and a few US National Park concessions. Also, Chef Newton along with partners, created and scaled a 10 unit fine casual brand called Asian Box in California. At Asian Box, he oversaw the supply chain, managed Q&C, as well as participated in BOD meetings as an observer. Newton helped raise growth capital to help AB scale to where it is today.

Behind every great investor is an outstanding team. Today, we’re going to dive into the team every real estate investor needs when investing in commercial properties. Having the right team put together will help provide coverage on all aspects of the investment process, from inspections in the pre-acquisition phase to assembling the proper paperwork at closing. If you’re going to be investing in real estate, it’s crucial to surround yourself with the professionals that help take you and your portfolio to the next level. Here are the professions that make up my real estate investing power team.www.tylercauble.com/podcast/episode098

Adam is a data-driven financial analyst with proven ability to solve complex business problems and design strategies to improve growth, margin and market share. His background includes time with Tractor Supply Company, The Turner Family Office and most recently Hamilton. His background is both unique and broad spanning with operational experience and consulting for both the private and public sector. He has a proven a track record of large scale value creation strategies across multiple levels of a Fortune 500 company, with a keen ability to identify both market opportunities and risks.

Whether you’ve got the next best restaurant, hottest boutique, or an up and coming tech startup, odds are you’re going to need commercial space. You’re probably asking yourself, “Where do I begin?” You could scour the internet for options, use your free time to drive the market hunting for “available” signs, and call your friends and family in hopes they know someone who knows of something available. Or, you could save yourself countless hours and likely a pounding headache and enlist the help of a Commercial Real Estate Broker. Brokers that specialize in Tenant Representation can be the most advantageous force in your commercial search.

So, you think you’ve found a potential commercial real estate investment. Now what? Since commercial properties are more complex than residential, determining what your potential returns will be and what you can afford to pay isn’t as easy as seeing what other properties have sold for in the neighborhood. You’ll actually have to: 1) Determine what could be a potential comp 2) Study the current leases (or lack thereof) 3) Decide which investment strategy to use 4) Estimate your construction and renovation costs 5) Get term sheets from your lenders Once you’ve done all of that, you can finally analyze the numbers to figure out if the investment will make sense for you. Here’s our quick guide on how to analyze commercial real estate deals.

During your search for commercial space, I’m sure that you’ve come across a lot of commercial real estate jargon - but you need not worry! You don’t have to know everything. This video will cover the basics of commercial leases including common lease structures, important lease clauses, and the most common delivery conditions of commercial leases. By the end of, you won’t know everything about commercial leases, but you’ll know enough to be dangerous.

Nathan has always been a bit of a nomad. “I was born in St. Paul, MN, then lived in Seattle, Boise, Oakland and the Bay Area, Washington DC and Annapolis. All the moving around created a strong ability to adapt to my environment and connect with people”. Nathan started his professional career in the hospitality industry, working for Ritz Carlton and other luxury brands. At the end of 2008, Nathan’s wife was offered a job transfer to Nashville. He immediately fell in love with the city. “At that time, Nashville was just starting this “It City” transformation. It felt like the start of something big – and that was quite appealing.” Once settled in Nashville, Nathan felt the urge to switch things up, so he went into real estate. “It was the spring of 2009, and due to the economic recession, so many realtors were leaving the industry. Some people thought I was nuts to get into real estate. But it was the best time to really dig deep, hone my selling skills, and learn from the industry veterans who were sticking it out.” Fast forward a few years to when Nathan teamed up with his business partner, Steve Mabee. They started as a real estate team and then quickly moved into development, with a specific focus on urban infill. They could see the immediate need for their new business. While focusing on infill development, primarily on the east side of Nashville, Nathan continued working with clients on buying and selling their homes. In 2017, Nathan and Steve launched Greenline Property Management with the opening of their first apartment building, The Volta, in Inglewood. With their focus on infill development, residential sales and now commercial development, Nathan and Steve opened their own brokerage, MW Real Estate Co, with Steve’s brother Davey in May 2017. Nathan is proud of their businesses, but his number one focus is client relationships. “At the end of the day, working with homeowners is still the most gratifying part of this business.” Nathan lives in Inglewood with his wife, Jennifer, and their two sons. He has happily hung up his nomad hat.

If you own a business in Nashville, you know how expensive it is to open and operate. However, there is a solution for entrepreneurs looking to save on their expenses while also building up their investment portfolio. Here’s why commercial condos will help make business more affordable for Nashville’s entrepreneurs.

One of the many reasons commercial real estate is so profitable is the ability to take advantage of depreciation. As buildings wear out over time, the IRS allows owners of investment properties to deduct a certain amount from their income every year before tax is applied as “depreciation expense”. Since this is an imaginary or paper expense, in that you’re not paying for it out of pocket, the more you claim in depreciation the more you can walk away with after taxes. Cost segregation is a common way of trying to maximize the amount of depreciation expense you can claim by speeding up the abstract decline in property value. Let’s take a look at how that plays out.

The infinite debate - renting vs. owning real estate. Is renting your property instead of becoming a property owner really a complete waste? We’ve all heard the “why pay the landlord’s mortgage when…” or “you’re throwing money away” by renting, but that’s a gross oversimplification. Yes, owning real estate and being a real estate investor long-term is typically better for building wealth, but that’s simply not true for everyone and in every situation. In fact, I own 7 commercial properties and still choose to rent my own residence. Here’s how renting is NOT a complete waste of money.

Dave Dubeau is the creator of the Money Partner Formula, and he works with mom ‘n pop real estate investors and helps them to get started with raising capital. He’s a best-selling author and speaker based in Beautiful British Columbia, Canada. He began his real estate investing career in 2003 doing 18 deals in 18 months and nowadays he invests passively in multi-family properties.

In the world of commercial real estate, the lease agreement is vital to making sure everyone knows who is responsible for what. Leases can be structured any way the landlord and tenant agree on, so why do so many choose to write things out the same way? While part of it may be familiarity with the terms from past experience, there are some serious advantages for both the tenant and the landlord for choosing to go triple net (NNN). Let’s take a look at these types of leases to see just why they are so popular.

If you’re looking at leasing commercial space, you have several different variations of lease structures from which to choose. The triple net lease is one of the most attractive for investors and landlords, but it also has it’s fair share of cons. Here’s what landlords need to know about NNN leases.

Triple net properties are one of the most attractive real estate investments for a variety of reasons: they can offer low risk, minimal responsibilities for the landlord, and long-term passive income. Today, we’re going to cover everything you need to know about triple net leases to decide whether or not they make sense to add to your investment portfolio.

The buzzword in many commercial real estate circles over the last economic cycle has been “affordable housing.” As costs of living have continued to increase, developers, government officials, and special interest groups have been fighting to figure out how can we continue to provide affordable and attainable housing for those in need. But no one is talking about the affordability crisis for entrepreneurs and startups. The cost of commercial space has also risen dramatically - sometimes 50% or more in some cases around Nashville. Micro-units may be the way for entrepreneurship to continue thriving in an evermore expensive environment - here’s why.

Is it possible to wholesale commercial real estate? Absolutely. Today, I’m going to walk you through what wholesaling is, the pros and cons of this strategy, how to actually wholesale commercial real estate, and the mistakes you must avoid to be successful. Let’s dive on in.

Today, Tyler talks about how something coming in the potential future could destroy the Commercial Real Estate Investing Market.