The Commercial Real Estate Investor Podcast

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.

Logan Hartle is a commercial real estate broker whose specialties include Industrial Sales and Leasing as well as Investment Property Sales. He is licensed in both North Carolina and West Virginia. Logan also holds an Industrial Engineering Degree from West Virginia University.

As you might expect, raising capital for commercial real estate isn’t all that easy. In fact, it’s my least favorite aspect of investing in commercial properties - I’d much rather stay in my lane and focus on deal sourcing and acquisitions, planning for and developing the project, and executing our ideas. However, capital is a finite resource and if you’re looking to grow your assets under management, you’ll need to throw that fuel on your fire and bring in outside capital from investors. I recently finalized a $4.8 million cash raise with my partners on a commercial development in Nashville. At 10x my largest capital raise to-date, this raise gave me some valuable insight to the entire process. So, here are my biggest takeaways. www.tylercauble.com/podcast/episode078

When I first got started in commercial real estate, I thought there was only one way to go: You save money for years and years until you finally have enough to do a deal on your own. And for some people, that’s certainly a good way to go. I thought the same way until I learned about syndicating real estate at a mastermind in Austin, TX. It completely opened my eyes to how I could grow my investment portfolio bigger and faster while having less of my own cash, which we all know is a finite resource, in each deal. So, here’s my guide to commercial real estate syndication for beginners. www.tylercauble.com/podcast/episode077

I’ve been in commercial real estate since 2013 but only really started investing in 2019, after founding my own commercial brokerage. Since then, I’ve developed a 42-unit townhome community, acquired over 50,000 square feet of office and retail space, and am in the middle of a $19.2 million mixed-use development in East Nashville. And I get asked all the time: “How can I get into commercial real estate investing?” So, knowing what I know now, here’s what I would do if I had to start it all over. www.tylercauble.com/podcast/episode076

Finding commercial real estate investments can be one of the most frustrating parts of becoming an investor. Projects are often hidden by LLCs or other entities that are either shells or forward directly to an attorney, so finding the true owner can be a bit tricky. However, I've found direct mailers to be one of the most effective methods for sourcing potential investment opportunities. Here's my step by step process for direct mail marketing to commercial real estate owners.www.tylercauble.com/podcast/episode074

As a founding partner of Trowbridge Law Group LLP, Gene’s law practice concentrates on the syndication of commercial and investment real estate, through both debt and equity. Gene has represented over 500 clients in this area of practice. The median offering size is $2,000,000, but he has done individual offerings of over $5 Billion. His practice writes offerings under Rule 506b and 506(c) of Regulation D. As former syndicator, who for ten years raised investor capital through the broker dealer community, he is able to communicate with his clients on both the technical and the practical aspects of state and federal securities laws. As a long time CCIM and CCIM Senior Instructor, Gene has won numerous awards for his teaching ability. His book “It’s a Whole New Business!” is really a “how to manual” on real estate syndication.

Commercial and residential real estate are two sides of the same coin, but they’re still vastly different from one another. However, many of the same principles hold true for both - location is important, they both cash flow and appreciate, and they offer many tax benefits. Let’s dive into the pros and cons of commercial vs. residential real estate to decide which is better for you as an investment vehicle.www.tylercauble.com/podcast/episode073

If you’re looking for a beginner’s guide to commercial real estate development, you’re in the right place. Today, we’re going to discuss what commercial real estate development is, what commercial developers do and their process, and stick around to the end where I’ll give you a few ways to get started in commercial real estate development. Just about all commercial real estate investors aim to take a property and add value to it in some way in order to increase the overall cash flow or valuation. Most will take existing sites with either deferred maintenance, high vacancy, or a combination of both - but some investors will actually take raw land and reimagine what could be on that site. www.tylercauble.com/podcast/episode072

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.www.tylercauble.com/podcast/episode071

The Commercial Real Estate Investor Weekly Update (or the CREI Weekly Update if you’re not up for a mouthful) is the first commercial real estate news show bringing you the biggest news stories and market trends from around the country. Each week, we cover the Nashville market, which markets should be on your watchlist, office / retail / industrial / and multifamily updates, and a wildcard on a topic or trend we feel is worth sharing. Tune in Mondays at 5:30pm CST to ask your questions live! Show notes:www.tylercauble.com/podcast/episode070

Today, I’m walking you step by step through commercial real estate due diligence and below is a link to download my due diligence checklist. As seasoned commercial real estate investors like to say, “you make your money when you buy it.” So, if that’s true, then conducting your due diligence before you buy the site is crucial to your success as an investor. But what if you’ve never been through the process before? www.tylercauble.com/podcast/episode069