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Episode 25: A Simple 5 Step Process to Invest in Commercial Real Estate

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Hey, this is Mike Sauers. I’m the host of the creative commercial real estate podcast. Today we’re gonna talk about the five simple step strategy to getting started investing in commercial real estate. We’re writing a book about this. It’s how to find a deal, how to get that deal funded, how to fix the major repairs, how to fill your vacancies and how to either flip that deal for a big profit or find a property manager and forget it. I appreciate you tuning into the show. Make sure you also check out our YouTube channel if you’re into that kind of thing. We have some superstar videos on there. You can just go to YouTube and type Commercial Investors group in the search bar. Thanks for tuning in, and we appreciate there are two kinds of people in the world. Does that worry? Sharing their ideas will hinder their success, and those who are driven by the success of others the first kind view everyone as a competitive. They guard their playbook, type to their chest, rarely collaborate outside their inner circle and are reluctant to show their cards. Then there are the second kind, the kind who have graduated from the first category. They don’t count the number of deals they’ve done. What counts to them is the number of people they impact and the depth to which they impact them. Achievement is still important to them, but it’s subordinated to the depth of their purpose. So they give freely of their time, knowledge and expertise to build a bridge for those who follow in their footsteps. These are the people who were called to change the world. These are the people who developed people, places and ideas. This is show where they do it on the creative commercial real estate podcast. Welcome to the creative commercial real estate show. I’m Mike Sauers, your host, and today is going to be an exciting topic. We’re going to talk about how to actually get started investing in commercial real estate. We’re going to talk about a five step process toe actually getting your first deal done or if you’re already doing deals. How to kind of streamline your operation? Joining me today is my co host, Mr James. See, Smith, don’t forget to see this. Sees credits. It

[00:02:22] spk_1: is. Mike. How we doing?

[00:02:23] spk_0: I’m doing good, man. We got a birthday coming up here free tomorrow, you two.

[00:02:27] spk_1: Well, not tomorrow. But yours is the

[00:02:29] spk_0: next week. Honey, we’re going to go swing the sticks or Yeah, let’s do it. A bunch of hacks out there on the course chopping her own. Let’s Ah, let’s talk about investing in commercial real estate. And really, we’re going kind of gear today towards the listener who, you know, is either want to get there first. Deal done. Maybe you’re doing some residential deals. Maybe you’re not, um, but wants to buy a small what I would say gettable property. So we’re not going after the $5,000,000 elephant, you know, may be targeting some smaller stuff. So, what is your your big question when it comes to ah, investing in real estate, James. Yeah. So how do you get

[00:03:08] spk_1: started? You know, is an investor as, ah, someone that hasn’t had a ton of experience in commercial real estate. What do I do.

[00:03:17] spk_0: Well, first of all, if you have never bought a residential property start by buying your own home, right, you probably don’t want to gold start buying a bunch of commercial property if you don’t even on the home you live in. So that’s step one. Maybe you start there and then you work on buying your first commercial deal. Um, for those of you who are already investing in residential is probably an easier transition because you’ve gone through the motions of actually hiring contractors doing things like that. But you don’t have to buy a residential deal. I, you know, find that for me and many other commercial investors, that that was the most logical path way was to buy some rental properties first on, then kind of transition into commercial, but certainly not critical. We’re going to talk about how to do it without buying residential property first.

[00:04:07] spk_1: Yeah, you see that a lot. And you know, you could certainly do residential. Lt’s an investment, But what is the difference between commercials? Say, maybe we’ll touch on that later?

[00:04:15] spk_0: Sure, So we have a book that we’re writing, and the book is basically the five simple steps to investing in commercial real estate. And in this book, we kind of outline, you know, a five step process. It started with a 20 step process, and they didn’t like that, so I’d whittle it down to five. So, little cleaner. Yeah, little cleaner. So we have how to find fund, fix Phil and flip a commercial property. So those are the five key steps, So if you’re getting started, you need to understand all five steps. But just understand this until you find a deal, you don’t need to worry about funding that deal. And until you’ve got your deal funded and closed Ah, you don’t have to worry about, you know, fixing it and filling it. Now you need to know all five steps going into it, but you’ve got to kind of take them one at a time. So I find a lot of AA people might spend too much time working on their funding before they even have any deals to look at, and you’re just talking air with people. If you don’t have real numbers in front of themselves, it is good to build up your network of potential people, but you’ll probably get a lot more bang for your buck if you have a real deal in your hand that you’re going out on pitching to investors, So or would

[00:05:38] spk_1: you say that you could even partner with a firm or someone that, you know that has had had that experience? I’m not plugging us here, But certainly that might be a good option to get your feet wet into at least know the right things that you have to do which will dive into each one of these.

[00:05:53] spk_0: Yeah, 100% sold. The biggest mistake you can make when you’re getting started in fasting is by thinking that you’re going to do it all yourself to save a bunch money. So you’re going to manage all the construction yourself. You’re gonna manage your own property you’re going to do. You’re only scene, you’re going to find your own deals, and you’re going to fund everything using your savings account on, tap out everything on your first deal. Um, you can do it that way. You’re probably going to learn a whole lot, and you’re going to actually advance a lot quicker. So you’ve got to decide. You know how much Do I want to learn school? The hard knocks versus bring in professionals who are consistent with this? Sharing a small piece of the pie or given them a nice little tip for making sure your project’s success and then asking a lot of questions along the way

[00:06:39] spk_1: because we’ve seen a lot of Gotsch is is well, I mean, I’ve went through him yourself and you know, is I’m getting started in commercial real estate. I’ve seen the Gotsch is. And unless you were with someone who was a professional, you would know you won’t know otherwise.

[00:06:52] spk_0: Absolutely. And And every day’s a learning lesson, right? Yeah. So God has a way of humbling us and making us realize that we do need him in order to to be successful in life. Um, And wherever you stand on the on the you know God, the issue is is between you and yourself. I just I know where I stand and making sure that every day that I’m staying in that zoning humility that you don’t know what you don’t know. And as soon as you start thinking that you do have it all figured out and that all of your success is coming on, Lee from your own actions. That’s when Ah, that’s when you start making mistakes.

[00:07:28] spk_1: Absolutely. So let’s talk about the first step.

[00:07:31] spk_0: All right, so first steps how to find a deal. What are your big questions about how to find a deal here?

[00:07:35] spk_1: Here’s two things. One. I could go find a property. I could drive around. Hey, they see this property. This looks like it may be a tired building. Maybe it’s a value add play. You kind of have to do some research upfront to know what asked what asset classes you want to get into kind of what you’re looking for. Um, but let’s say you’ve done some of that, right. You know, read the commercial real estate for dummies. Wanna one? I mean, get yourself familiarized with some of the key terms and things that you need to know to go out and find a deal because there are properties out there, but not every properties a deal, and you got to find a good deal. So let’s can you break that down first?

[00:08:10] spk_0: Having a strategy? Is that what you’re talking about? Yeah, You gotta have a strategy And in order to formulate a strategy, you’ve got to get educated. There’s really only two key things. They’re going to hold you back from being successful, and that is what you know and the actions you’re willing to take your never a failure until you quit so you might get knocked down. Think of Ah, kid, how many times there’s a kid fall down? You know, if you’re I got I got a baby girl coming here in about three weeks. Awesome. And I’m just using This is an example because I’m so excited to be a dad, but I’m sure that she’s going to fall down. I’m just going to pick her up and you know, there’s no judgment there, and she’s not going to go while I’m just not going to try standing up again, so that, to me, is the most important thing. I see a lot of people kind of, you know, they get really excited that come out of the seminar. They hire broker, they look at some deals, nothing’s a deal, and then they kind of like to give up thinking like, Hey, they’re never going to find something. I mean, you gotta look at a lot of stuff, especially if you’re just looking at stuff on the market to find a deal. So there’s there’s it’s kind of a double edged sword. You’re never going to truly learn how to do this until you actually do a deal. But there is a lot of paralysis by analysis, and everybody goes through that mean We’ve had some super bigwig mega investors on the show here. And those guys, they’re still, you know, kind of you know, a lot of them. Their advice has been don’t get paralysis by analysis. Like they run the numbers, they double check their math, they do a little bit of due diligence. And then once they decide to go, they go, Yeah, and they don’t look back right. And you know, I’ve had a lot of sleepless nights on some of these bigger deals where it’s like your bed in the whole farm, and you know, you’re kind of second guessing yourself. But I think for that reason, I truly do recommend bringing in somebody who’s a partner, whether that’s a coach, Ah, mentor Ah, an experienced investor who can and represent you as a buyer’s agent, bring somebody in who’s really going to be able to, um, look your deal over, especially your first deal, and make sure that you’re not gonna make a big mistake. I know. When I first got started, I feel very blessed. There’s a couple of individuals that I was able to run my deals by, and I just remember looking at tons of stuff and go on like, I don’t even know if this is a deal. How do you even tell if this is a dealer’s right? Like, you know, And, um, Man, it took me a long time to figure it out, and I would have probably never figured it out on my own. I would have probably bought something. I had no business buying, like I would’ve bought some, like, little office condo or something. That’s some super aggressive, can’t you know? And Ben in the full time property management business, to basically pay myself a management,

[00:11:00] spk_1: Maybe break even, right? Yeah, Maybe so. Let’s say let’s say you kind of know what you’re looking for and you have a strategy in place, you know? How do you go out and find a deal? We will. My contacting

[00:11:11] spk_0: what we do and what we talked about in our book, when it comes to finding deals is you need tohave ah, multi source strategy. So the first thing is attorneys, brokers and bankers that that’s your That’s your money. Those are your number one referral sources. You want to make sure that your networking and building and cultivating your network so I would spend time every single week meeting with calling, emailing, checking in, providing value, giving referrals to attorneys, bankers and brokers who deal with distressed real estate. So what kind of attorneys are retargeted?

[00:11:52] spk_1: Great question. So we could we could certainly look at real state Attorney’s. Yeah, they handle distressed or they handle folks through probate, things like that. They help them through that process. Yeah, that would be a good place to start, because those are the folks that are going to be having property to deal with, and they’re great attorneys, but they don’t always know what to do with the real state side of it. So we’re exactly working with some folks right now that that need our help to really understand what to do.

[00:12:16] spk_0: Yeah, so probably it’s a good one. You got any other ideas

[00:12:19] spk_1: for attorneys? Yeah, I know. What do you got? Bankruptcy, bankruptcy attorney. Foreclosure, foreclosure attorneys? Divorce? Yeah, Divorce skills of the big Four? Yes. Good. So

[00:12:29] spk_0: So if I inherit a property, if I’m going through a divorce, if I’m going through bankruptcy or if I’m facing foreclosure, those air probably four key situations where it might be motivated and potentially needs somebody to tip to buy my property. And we’re not in the business of stealing people’s property. We’re in the business of paying fair market value for the property, but on Lee targeting properties that are in distress and so that the strategy with commercial is not that we’re robbing him of their property, it’s that we’re buying it at a price that makes sense where we have room to create value in the property. So, to me, the value add strategy is, um, what I would highly recommend be your investment strategy. Unless you’re sitting on at least $2,000,000 in cash and you just want to get your cash working for you, then maybe you can look at stabilized properties. You know, there’s two things, right? You have your income statement your statement of cash laws and your balance sheet, Actually, so that’s three things. I guess those are your financial statements, and you can look at him for your company, but you should be looking at those for yourself. You know, most people our age have negative net worse that Mohr student loans and their assets

[00:13:40] spk_1: Car payment. You name it, right?

[00:13:41] spk_0: Yeah. So that’s the American way, right? What’s that commercial that guys like mowing his lawn in the back and the neighbors like a bill? How did you get all that? Nice stuff? Hey, like, licks up over Islam. Morning goes, I’m in debt up to buy. I

[00:13:58] spk_1: see it too often. So

[00:14:00] spk_0: without straying too far from the answer, how do you source deals? Bankers, brokers, attorneys, make friends with him, Get him to say, Send your stuff to look at what kind of value you’re gonna add. You’re gonna give them a written offer within 48 hours, guaranteed Do something like that, have some kind of call the action, and then be professional, be responsive and give great customer service. You answer that call no matter what you’re doing when they call. Ah, So that’s the first thing. The second thing is going directly to property owners so you can use a tool like coal stars. What we usedto, you know, do it. You can go on the county Web sites and you can literally click from track to track. See who the owner as type, Um, and you know, white pages dot com or

[00:14:43] spk_1: Secretary of State business filings.

[00:14:45] spk_0: Yeah, you can figure out S O if it’s owned in an l. L. C. You can go to the secretary of state, figure out if there’s a named manager on file and then you Khun, find that manager’s phone number by using anyone of some online resource is Tolo, Bellis, Lank, Ah, white pages dot com and there’s several other ones. Just type skip tracing services or skip Tracy’s software into Google, and you’ll get a lot of cool options there. So that’s a key there. And then we’re just calling property owners direct, and you gotta have a reason for calling. So what’s the strategy we’re using right now?

[00:15:22] spk_1: Right now, it’s It’s about information. I think you talked about this with another guest on the podcast here, but basically it’s Hey, I’m going to be your resource for information on what I’m seeing in the market today. Whether that’s you know what one our properties trading at, um you know what a Lisa. Do you have any issues with your property? How’s it going from a property management standpoint? You know, can you give some value to someone for calling? You know, you’re calling them. They’re taking their time. What are you going to give them? So you really have to approach it from that mindset. And I think you’re going to see a much higher success rate in actually building relationships with those folks. Because at the end of the day, they may or may not be ready to sell or have an issue that they want to, you know, pursue their exit strategy on the property. So it could be a long game, You know, you want to continually build relationships with property owners on DH, Then they’re folks that we talked about.

[00:16:14] spk_0: Yeah, it is a long game. Yeah, So is 18 holes. That’s about four

[00:16:19] spk_1: and 1/2 hours. If you’re me, it’s maybe five.

[00:16:21] spk_0: So I would say this if you if you just want to buy one property and kind of be done. You got some capital You want to get to work higher broker. Tell him what you’re looking for. Make sure you hire somebody who also owns property. There’s a lot of yokels out there that don’t actually own properties. Those guys, they’re not the ones you want to hire if you’re looking for investment sales, Um, you know, I’m probably gonna offend some people by saying that, but the guys who are actually buying properties out there are are probably going to be in a better position to represent you with true fiduciary duties because they’re more concerned about making sure you’re going to win in the long run than on then making a commission.

[00:16:57] spk_1: So what would you say my to someone that isn’t experience, investor and broker? How do you start that conversation

[00:17:04] spk_0: like, How do I How do I select a broker?

[00:17:07] spk_1: Well, that and then what do you also? What do you say? Because you’re not going to be as experiences. They are so sure. Give us the run down there. So

[00:17:13] spk_0: let’s say I’m a non licensed investor. I want start buying some properties. Ah, I would call a broker and ah, interview. And I would say, Hey, you know what? Ah, what kinds of assets do you Are you working on? How long you been doing this? What’s your target market? You know, geographically. And you know who’s the top bro? All you do retail. Who’s the top broker I should be talking to for industrial stuff and start getting referrals now? I would actually start with the list being the CCM list, so I will go to the c, c m dot com, and I would find a good qualified CCM.

[00:17:53] spk_1: That’s a great idea. So I

[00:17:54] spk_0: would start with a C C. I am. I would interview a few top C CM candidate and hire one of them as my exclusive broker. Now you can hire a bond has nonexclusive brokers like maybe one from each asset class. There’s nothing wrong with doing that strategy. He is. Well, you’re gonna have more people looking for you, but they’re not going to be as dedicated to finding you something as if you give somebody an exclusive. So on exclusive is I say, Hey, James, No matter what I buy, I’m going to pay you Commission doesn’t matter if I bring the deal, you bring the deal or some third party brings a deal. I’m committed to paying you commission. You’re going to be extremely motivated to go work hard for me because you know you’re getting paid right now. Who out there likes to put work in and not know if they’re going to get paid. See what a nonexclusive is is. If you bring me a deal, then I’ll pay you a commission. If you if somebody else brings me a deal, then I don’t pay you a commission. So it is. It’s ah, you know, that person’s probably still going to be more motivated than they would be if you didn’t sign a non exclusive with them. So I would offer at a minimum. Hey, man, I’ll sign a non exclusive with you that doesn’t lock you in a corner, that you can’t go find your own deals or you can’t go work with all their brokers. But if that person brings you a deal and they’re the procuring cause on you buying that property, they would be entitled to you paying them a commission. Does that make sense? Yeah. Is there any questions on that

[00:19:22] spk_1: good Isert timeframe on those.

[00:19:25] spk_0: Yeah, Usually there’s a timeframe on those and that was negotiated. Typically, I will do like a 92 180 day contract, but, you know, you gotta feel it out. You know, if my clients always going to be looking for stuff I’m doing, like in a month or six month deal. If they want to give me a 45 day exclusive and just test the waters, I’m open to that, too. Ultimately, at the end of the day, I truly feel like if somebody wants out of their contract, I’m not going to hold them to their contract Shewell obligations. So I’m still going to put stuff in writing. But at the end of the day, I don’t want to be working with people who don’t want to work with us. Yeah, that we got too many too many people out there that are happy and easy to work with that that we can work with on that sample. You

[00:20:07] spk_1: do have to find the right one. It’s

[00:20:09] spk_0: got to be a good

[00:20:09] spk_1: fit. So let’s say you go through that process and you find a deal. There’s an opportunity okay. And you’ve run the numbers. Do we want to get into that, or do you wantto jump into funding it?

[00:20:20] spk_0: Well, let’s finish finding. So yeah. So what? So you had talked about an opportunity. So what is an opportunity actually look like? Like in your opinion, like, how would you define an opportunity?

[00:20:31] spk_1: I would define an opportunity as there’s ah, specific property that really opportunity Khun b. To find a couple of ways butts an opportunity that our property that I can go out, I can go to where? The property, right? It fits within the strategy and the criteria that I’m looking for and there’s a path to go forward on it. So I’ve asked some of the really important questions on you know what is the seller situation? Can you gather some of the expense data? What is the existing right roll? So some of those those key five elements What’s the debt service on that property? You kind of go through that checklist and go. Hey, I might have something here. That’s what I would say is an opportunity certainly versus a deal. Sure. What say you?

[00:21:15] spk_0: Yeah, that makes sense. So you’re defining opportunity as just in a willing and able seller who will provide you the information you need to analyze it. Now you got to decide if it’s a deal or not.

[00:21:28] spk_1: Well said,

[00:21:28] spk_0: how would you define a deal?

[00:21:30] spk_1: So the deal is going to be something that also fits your criteria from a financial standpoint, right. So you’re looking at the financials in terms ofthe what is my cash on cash return? Well, let’s start with that.

[00:21:43] spk_0: Yeah, What are we looking for?

[00:21:44] spk_1: So I’m looking for we’re looking for something that’s going to least 20% return on my cash.

[00:21:50] spk_0: Okay, so if we put ah 100,000 and we want to see that we’re going to be able to get 20,000 year in dividends on that right or more? Yep. Okay, sure. Good. That’s solid. Um what what other kind of metrics are we looking at when we analyze the deal,

[00:22:06] spk_1: there’s a few other things. I mean, certainly you’ve got a look at the property itself. I think that’s a big one. You, Khun, get into some you know, situations where nothing you can’t get out of. But you can talk about environmental. You can talk about title issues. You know, these are things that you do have to go through some of these air. Maurin. Due diligence, right? Yeah, but I think those are some things that you have to consider out. Front

[00:22:28] spk_0: location, location, the condition of the building. I mean, if we want to just simplify it, we need to be able to Seoul. First of all, there needs to be a motivated seller. If I don’t have a motivated seller, the chances of us getting a deal done decreased dramatically. It’s not impossible, but they decrease dramatically

[00:22:50] spk_1: unless you want to pay more than was

[00:22:53] spk_0: S O motivated seller. So that’s the first thing I figure. Are they motivated, or are they not motivated? So us. Things like, why you’re selling. What do you plan on doing with the cash? What is your timeline for selling? If they’re saying things like, Yeah, mail me your offer. I will consider selling mail me your offer. It’s like, you know, doesn’t sound like you’re interested in selling right now. You know, don’t try and stake a square peg in a round hole. That’s a big mistake I made. Is trying to like also gangbusters overdoing the deal right out of the gate that I just saw. I spent a lot of time with non motivated sellers and you don’t want to sell somebody on. I like dealing with people who, like, really want to sell already. And now we’re kind of the shiny object rather than lost being like, Hey, we really want to buy your property. And they’re kind of like, you know, I guess I’d sell it for the right price. Okay. Yep. Motive. It’s fantastic. What is the right price?

[00:23:49] spk_1: What is the right price?

[00:23:50] spk_0: So s So we use a look like what? Realistically, do you expect to sell this thing for right? And then I’ll figure out the price per square foot. And if it’s somewhere in the realm, then we can keep going. If he’s, like, double what you know, like fees. 100 boxes, square foot for warehouse product. I’m probably and get that ball out at that point. You know, I don’t want to spend any more time. I’d rather spend the four hours I was again a working with this guy and touring his property and all that. Calling more property owners where there might be somebody who actually wants to sell their property. Um, I think people who are cash flowing on their properties and there’s no major repair expense Bill’s coming down the pipeline and they don’t have any major life crisis like the four attorney situations we talked about. Foreclosure, bankruptcy, probate, divorce. You know, if there’s nothing going on like that, there’s no big property problems. There’s property problems and people problems. So people problems are the bankruptcy divorce for closure, probate stuff. The property problems air like the roof’s caving in, they change the zoning, the environmental ls there, it’s in foreclosure and the bank wants to sell their note. I’m interested. Let’s talk about what kind of pricing you expect.

[00:25:06] spk_1: I don’t want to do the bookkeeping anymore.

[00:25:08] spk_0: I’m just sick and tired of managing this, saying joining collect

[00:25:11] spk_1: rent, you know you need.

[00:25:12] spk_0: It’s just tired, and I’m ready to retire those air, all good motivating factors. If it’s like, Hey, I’m 30. I gotta cash flow on acid. It’s fully stabilized. I’m ah, cash long like a bandit. But if you want to come in and ah, you have to have it, you know, make me an offer that’s probably not your guy or girl. So that’s rule number one on finding a deal is, ah, the challenges. If you’re not talking directly to the property owners, you know, Broker’s air bullcrap, er’s Sometimes, yeah, there’s some really, really good brokers out there, but I don’t know, man. What? Let’s talk about this. Ah, people putting unstable eyes, assets on the market at stabilize prices.

[00:26:00] spk_1: Yeah, let’s chat about

[00:26:02] spk_0: because we see a lot of that. So talk to me about this and how why this frustrates you.

[00:26:06] spk_1: Well, I think one. So brokers by nature are going to do right by there. Our clients and they, you know, have fiduciary responsibility to get the best price possible. What if you’re going to sell your property? What do you say? What I want the best price possible? Of course you do. Now, what’s your building actually worth and what someone willing to pay for it? And that’s where as a smart investor, right, you’re going to make sure that you’re finding those deals that fit that criteria. So what’s frustrating is that brokers will go and say, All right, well, let’s let’s go. I think I think we can sell this property at. Let’s just pick out a number right? $2,000,000. Ah, and you look at that deal and say, while the building today isn’t worth $2,000,000 but that’s whatthe seller wants. And so we’re going to go listed at that price, right? So I think there’s some more due diligence that could have been done prior to listing that property correctly for the cellar to get a deal done. Because you see some of these properties and they’re sitting there for how long? I’m interesting there for six months, nine months, and then they go off the market for a year, then they’re back on again. It’s like, Do you really want to sell the property? If you do, Here’s the things that we should be looking at from an investor’s standpoint that’s going to get this property sold in the right amount of time. Otherwise, you’re sitting on carrying cost. You’re still carrying the headache of the property, the reasons that you want to sell or some issue you’re not solving those issues, and that’s what you have to do.

[00:27:31] spk_0: Yeah, and I would add to that there’s a lot of property owners that aren’t motivated to sell. They have low dead on the property there. There may be cash flow positive on the deal, and they’re saying, Hey, man, everything’s looking like we’re getting close to the peak And they interviewed three brokers and the guy who’s got the highest price, which is the guy blowing smoke up there to try and get him. Tow wind listing. Sure, I’s the one. They end a pyre, and it’s like, Well, realistically, I know it’s worth 17 but this guy thinks he can get me 2,000,000. Let’s do it And they sign that listing agreement. The guy one listing agreement. But he shot himself in the foot because on Ly an idiot’s getting paid 2,000,000. If that’s a stabilized price and it cost 300,000 it fix it up and stabilize it and leasing commissions, holding cause, closing costs, all that stuff. So you know, how do we analyze deal? You know, we we can start there, but, you know, just be careful, and if you don’t have a professional, that’s kind of helping you have a second set of eyes. You know you can either hire broker. Like I said, like we offer a coaching program. So we have coaching students. They pay us a monthly feed. They have unlimited access to calling us when they have deals and stuff like that. And our monthly fee includes a certain number of hours. And we’re able to basically be a second set of eyes for you to look at your deals and really help you think through him and just make sure you’re not making a big mistake so you guys can reach out to me. If you guys were interested, just shoot me an email. It’s Mike at a commercial, and it’s going to give you my home rattling like

[00:29:05] spk_1: a commercial investors group dot com.

[00:29:07] spk_0: Yeah, that’s the one. Or give us call it our office. 612877 86 100. But you know, we don’t Aah Make as much per hour doing coaching as we do do in our business. But I love helping other people, and I want to see other people succeed. So the Y for a supersedes the financial aspects.

[00:29:27] spk_1: Sure, absolutely. Oh, so what if you don’t go too far down the path? Eso

[00:29:32] spk_0: finding deals finding deals, so finding deals. So make sure you deal with a motivated seller. Be the first and top of mind for people who. So if I’m a motivated seller and I make a phone call whom I call, I’m either calling my broker call my banker or I’m calling my attorney. Probably right. So the people who are the first in mind of a motivated seller are the people you want to be. The first in mind of top of mind, I guess, is that is the court they would use. So stay in front of these people, provide Valley for these people, take him out to golf, do whatever you need to do to be top of mind and build relationships with that network of brokers, bankers and a turn. So that’s number one. The second thing is calling property owners directly. So calling property owners directly it’s the same strategy, provide value, expect nothing and follow up. It’s, you know, doing that. Provide some information. Hey, this is what US and leases that some sales just got signed. Here’s what I’m doing. I just want to call and introduce myself. You know, I appreciate having you as an owner in the area. We owned some property, too. You know what? How’s the property working out for you and just have a conversation and you don’t need to be too pushy and all everything’s greats. Cash falling. Well, great, you know, can send you an e mail and give you my information. And if you know if you ever need anything or you want Seller, bounce an idea off me or you want me to grab some free information for him, happy to be a resource for you, and then you start making 25 calls a day’s magic number. That’s what our goal is for our brokers that joined our team. 25 calls a day every day. Mm. And you’re calling property owners now. You might not get a hold of 25 but you’re tracking on. You’re getting emails, you following up with them, you’re providing value, and eventually there’s going to be somebody that needs a tenant or wants you to manage their property or might want to sell it to you direct, and we can say, Hey, here’s what we think we might be able to get on the open market, but you probably have some contingencies. You’re probably gonna have a, you know, 60 days due diligence, 60 days to Klaus. But that’s kind of the premium if prices the only thing that’s important you, that’s that. If you want to have a quiet sale and you don’t want all your tenants to find out and you don’t want to sing listed, you know we might be able to buy it from you for acts. You know what? What works better for you? Yeah. And give people some options. Um, so if you want to be common investor, commit and make a decision that this is something you want to do and then start making calls and and know this that you’re going to make calls for probably several months until you’ve talked to hundreds and hundreds of people defined that one person who will sell you their property for the price that you can pay for

[00:32:08] spk_1: it. Absolutely. We’ve talked some of the best brokers, brightest minds. It’s an investors in the twin cities here, and and they’re absolutely doing that.

[00:32:16] spk_0: Yeah, but you only need to do one or two deals a year to make it big, you know. So this is Ahh. It’s a very, very much a long term. We have the scene. It’s contacts, contracts, closings, cash flow. There you go. So it all starts with contacts. So when it comes to finding deals, it’s contacts. You’re either contacting directly to the property owners or you’re contacting people. Those property owners would make their first phone call to your brokers, bankers and attorneys network, so contacts every day and then that will eventually lead to contracts, purchase agreements, Lisa’s signed management contracts, buyer up contracts, listing contracts, whatever you’re able to offer for your services and how your business plan is structured on DH, then eventually that’s gonna lead to some closings and Cem Cem cash full whether that’s, ah, one time paycheck or a paycheck that keeps on coming.

[00:33:11] spk_1: Yeah, and maybe both.

[00:33:13] spk_0: Yeah, and maybe you want to set up your strategy to kind of have both. So we have ah management division. We get monthly dividends for management fees. We have ah active brokerage commissions by cell listing. We have rental income coming in. We have development fees for doing developments for ourself and other people consulting fees, assignment fees. Ah, coaching. We have various income streams coming in. So ah, I love to have different stuff going on. It keeps life exciting instead of just on Lee playing in one sandbox. But it’s all real estate. It’s all exciting and we learn every day. So that’s how to find a deal. Is there anything else you want to flush out on finding a deal?

[00:33:55] spk_1: You know, I think the financials certainly play a part, and we won’t go to in for in depth on this show regarding the financials and going through the analysis. But we’ll probably do a seminar on that soon, so that would be maybe one thing. But let’s let’s say you confined a deal and that things you know, it’s gotten some opportunity in it as faras value add opportunity. So you use it up, get it to market rent rates and cider, right? So you returned the value, your building you’re going to make, Let’s say, a 25% return on this thing, which is a good deal. So now you’ve got a good deal.

[00:34:26] spk_0: Now, one thanks for tuning in will be right back after these messages. Today’s show is brought to you by court. Kamman my guy over at Old Republic title. They do commercial title services, everything a dizzy from owners and it conferences, reports two title commitments to closings. I highly recommend their services, and you’d be doing yourself a solid to give court a call or text at 612336721123367215 That 61233672161233625 highly recommend these guys and we’re back talking about the five simple step strategy to flipping commercial real estate. I’m like, sours your host, and we’re going to get in. And with James Smith. Well, so you gotta analyze. You feel so you find a deal, you gotta determine if it’s a deal. So just use the spreadsheet. We sell a spreadsheet in our forms package again. Send me an email. If you want access to that, we’re rolling out a coaching Excuse me, a membership site on her new website, which is going to be pretty cool. You’ll have access to all that stuff there on, and that’s gonna be pretty slick, but you gotta fund your deal now. So let’s say we got a deal. So I’d say, you know, your first deal. Look at stuff. Half 1,000,000 bucks to $1,000,000. That’s gettable. There’s a lot of good deals out there. So what you can expect is a good stabilized value at play on something in that price range of probably generate about to tow for $1000 a month in cash flow for you. Look, I’m so all I’m looking for is is the current net operating income. Can I increase it by at least 40%? That’s it. That’s a deal to me. If I can increase the analyzed by 40% snot a deal,

[00:36:30] spk_1: so you either you’ve got a lease it up. So you’ve got two yet market rent rates. Yeah, and you can. Or you can reduce the expenses and you can do both.

[00:36:38] spk_0: Yeah, certainly. Well, that’s sold. So not operating income is all of our operating income minus operating expenses. So if I bought a building all cash, what’s the rent for the year? Minus all the operating expenses? So we got property taxes, the big one. Then we got insurance, property management, utilities, maintenance, repairs and maybe some administrative type costs. Those air, your big expenses,

[00:37:07] spk_1: bookkeeping or a County.

[00:37:09] spk_0: Yeah, county legal fees. You know, attorney seep attacks, prop that kind of stuff. There’s probably some other software fees and things like that. You may have depended on high running your operation kind of lump, all those in the other category, but those of your big fees. Okay, So what I want to know is, what is the current an ally and what is the potential an ally? And then I’m gonna look, if I can increase up. If the potential an ally is 40% higher than the current an ally, that’s a deal I will continue pursuing. If I can only increase the net operating income like five or 10% then that’s pretty close to a stabilized asset. We don’t want to buy a stabilized acid. So stabilized asset is market rate occupancy at market rate rents. So what that means is, let’s say the vacancy rates 10%. If you’re occupancies at 90% and your rants are at market. Rance, you’re stabilized so you can on ly pay market value on a stabilized asset, right, and then there’s no room to create value in it. So what happens if the market get tanks you’re going to lose a chunk of your equity that you put into it. So we like to do deals where we actually let’s say we do $1,000,000 deal. We put 300,000 down. I got a friend named James. He’s got $300,000 tucked in his piggybank that’s buried out in his yard, and he wants to do a deal. And that might look like this. So here’s how we found a typical deal. All right, James, I got a deal here. Okay, we’re going. We’re going to buy for 1,000,000. I’m going to increase in that operating income by filling this 30% vacancy. Ah, we’re under market rate rant. So all slowly increase at and then I’m gonna install new led lights. We’re gonna wrap all the exterior, wouldn’t aluminum, and we’re going to replace the rough. So all those big maintenance and repair items are going to go away, and then we’re going to replace the heating system with the new efficient heating system. Great. Okay, So my analyze going to go from 75,000 to 150,000 and that assets can be worth $2,000,000 when it’s done, and it’s going to cost us $400,000 to get there. So we’ll be all in at 1.4 on an asset worth $2,000,000. You want do the deal? Yes. Okay, so we need to call it with one point $4,000,000. Now I go to my friend Ah, Paul the paint. The banker and Paul says, I’ll give you $1,000,000 if you come with the 400. And so I go to James and he’s got 300,000 and I got 100,000. So I say, James, you put in the 300 all put in 100 and will split each dollar after the banks paid and all expenses are paid, you’ll get 75 cents Aga 25 cents. So that’s called Parry. Pursue its to be distributed per our investment. Okay, and we’ll do that until we’ve each receive 10% on our money per year. So in the first year, the 1st $40,000 you’ll get 30 grand a bit. I get 10 grand of it and then each dollar. After that, we’re going to split 50 50. Does that work for you.

[00:40:18] spk_1: Yeah, that should work. So

[00:40:19] spk_0: you’re going to get a preferred distribution of 10% on your money, and then we’re splitting every dollar after you’ve made your 10%? Yes. Okay. And and so I might project in this case, you know, we said that net operating in comes 150 k. So Ah, that deal, the debt service might be 70 grand. We might be cash full on 80,000 sold the 1st 40,000 again get split. You get 75% or 30 King, I get 25 or center tank, eh? And then we split the 2nd 40

[00:40:48] spk_1: 1000 until we’ve got our investment basically back. Correct?

[00:40:52] spk_0: There’s that. There’s a few ways to structure it. I were typically doing the preferred return. So the initial return, um, is interest only, and it’s it’s really not interest. I shouldn’t call it that, but it really does kind of act like basically, we each lend our entity the money at 10%. And then once we get paid or 10% back then we’re 50 50 partners. That makes sense of. So that’s the easiest way to think of it. That’s a simple waterfall structure. It’s called on DH. Check out our Ah, we talked about waterfall with a few different we have. Yeah. Um, Brad Height singer, I think had one on Ah, I can’t remember the episode 18 or something, but that’s a really good one to check out on the water. Fall

[00:41:38] spk_1: straight Going, um, or death on the

[00:41:39] spk_0: Yeah, for sure. So if you don’t know what a waterfall I our waterfall, is definitely want. Check that out. But that’s how we find a detail

[00:41:46] spk_1: how you fund it. There’s a lot of different ways to do it, but that’s probably a very straightforward say, simple way,

[00:41:52] spk_0: this simple way. And so let’s let’s look at another deal. We’re gonna buy a $500,000 building, doesn’t need any repairs and cash flows on day one. Okay, Bank might give us 350,000. We need to put 30% down, so I gotta come with 150,000. Now there’s closing costs and other things here. I’m trying to over simplify it. I go to James. I say, give me 150,000. I’ll give you 10% on your money. And then, after that we split it 50 50 15. Sounds great. OK, look at this guy. He’s a tough negotiator. Yeah, so that’s how you confront your deal. So s So we find a deal by our referral network or calling property owners directly. And we fund our deal by bringing in money partners. So now we have to create the value. So there’s three things to create value long term. That’s fix a building, fill the vacancies and then

[00:42:47] spk_1: you can either Flipper, hold

[00:42:48] spk_0: Flipper Hauled Self Flipper Forget Forget is over. You hire a super rock star property management company and then, ideally, you should have them doing it. But ah, in the real world, you probably have to manage your property manager. We actually created a property management division because we could not find a property management company that would, ah, give our small, tiny little peasant portfolio the attention it deserved

[00:43:18] spk_1: because it needs love. All these

[00:43:19] spk_0: does. Yeah. These need extra love making mistakes. Be honest, shorten that issue. You’re losing money. If you’re managing value at assets, in most cases, yes. So

[00:43:29] spk_1: there’s a lot of room for four. Ah, increased. So you say it that way. But

[00:43:35] spk_0: so value add means an asset where we can increase the an ally in order to create value, because the value of the property is directly proportional to its not operating income in most cases. Now again, there’s there’s there’s guys out there that are just trying to win listings and they’re saying, Well, the analyze 75. But it, you know, potential analyzed 1 50 So that’s how we’re going to value what we should list at 1 50 And they might make a small discount, but not a discount proportionate to what it should be sure for the cost of state allies. So we see that all day long and again, you know, you need to weed through a lot of that stuff. And that’s where you need either a mentor, coach Ah, friend, somebody who can really ah, put an X Spirits set eyes on your deal. You’re going to go on and do the hard work to find the deal’s calling. The property on is doing the gathering of the numbers, but then it’s nice to have somebody to be like, Yeah, that’s definitely not a deal. You don’t want to do that and give you a quick decision. So you’re not spending. I mean, man, I’ve seen Ah, there’s this one guy who spent, like, 75 50 50 2030 hours analyzing this deal. And I looked at it for five minutes, and so that’s no move on, you know, And it’s just like, how much is that worth to you to pay somebody you know, to give you that second sells

[00:44:48] spk_1: a lot of time. So

[00:44:49] spk_0: if you if you don’t have a general construction background, you need to find a good G C. So don’t play Mr General Contractor yourself. If this is your first deal and you have not been a general contractor for 10 years now, if Yu better G c for 10 years, Sure you already have the subcontractors list. You know how to manage subcontractors effectively. Then go for it. Be your own GC. But if you’re like the dude who’s been a banker your whole life and you want to start buying properties, you have no business being your own general contractor. Good advice s o find a really good general contractor and work with them and stay loyal to them. But, you know, keep him honest. You know I get it, get get some other numbers and just make sure that you’re not getting gouged because even the most honest general contractors, um, you know, cannot slip in something on you. And the biggest mistake that you can make is not doing your homework on taking a look at a couple of contractors cell. I would do that. But, you know, don’t be Mr Stian. JJ, don’t beat your guys upon your numbers all the time. I mean, the worst thing you can do is just start renegotiating every single contract every single time. Ah, all it takes is you doing that once. And the next time they bid the job, they’re put in 20% in the top because they know that you’re going bust him down. 20% negotiations, and then guys don’t want to work with you. So

[00:46:07] spk_1: they’re in their critical toe having that Project Orwell and building that value their partners, their partners and so

[00:46:13] spk_0: being cheap is often expensive. So don’t skimp out on your attorney. Don’t skimp out on your broker. Your coach don’t skimp out on your general contractor. And certainly if you’re not a licensed broker who does a lot of leasing and knows all that really good marketing strategies. Haza built network of other brokers who can bring you deals or help you fill your deal. You have no business being your own leasing agent,

[00:46:37] spk_1: so let’s talk about that. Let’s dive into that. Yeah, because we’re, ah, time wise, we’ll make sure we

[00:46:42] spk_0: yeah, so So let’s talk about killing it.

[00:46:44] spk_1: Yep, filling the fulfilling the building. That’s where the values really created.

[00:46:48] spk_0: Absolutely well, that’s That’s half of it. Half of it. Sure, that’s the income side of the Net. Operating a radio, the expense side of the Net operating incomes doing capital improvements on your building to eliminate some of your operating expenses. So upgrading mechanicals, upgrading things, utilities, dude utilities or huge man, you can’t do much about taxes. You can challenge your tax assess valley, but it is what it is. You can’t do much really about insurance. You can shop that around, but utilities is huge. Memento led lights, motion activated switches, smart thermostats. You know, man, I just audited our stuff and realized that our thermostats at our properties were running like the 68 70 to 24 hours a day that should be dropping down to, like, you know, 64 degrees and night on the heat side and maybe 76 on the cooling side in the summer. It’s all that alone is going to save a bunch of money. So, you know, we had to spend some money to get upgraded thermostats. But then our property manager never, you know, coded improperly.

[00:47:56] spk_1: So one. If you’ve got tenants, if they leave the window open, all those different things will play into how that’s regulated. So

[00:48:02] spk_0: managing your property effectively. That’s kind of the last piece beyond the leasing. But let’s let’s talk about the leasing piece of it. So you’ve been doing some leasing on properties? What would have you learned?

[00:48:13] spk_1: Well, I just I know that I’ve been in sales long time. You just got to be a very good advocate for for tenants, you know, it’s customer service one along. You really have to understand their needs and wants and know what they’re looking for to be able to build that relationship. You know, a lot of tenants can complain about the management company, you know, you see it all the time, even places you’ve probably rented before office space or etcetera. It’s like Man, even cos I’ve worked with, you know, it’s like, Man, can we get the heat turned up in here turned down or whatever? There’s always these different things that come up in those really play an important role in understanding the tenants needs and wants and what they’re looking for in space.

[00:48:51] spk_0: What about securing new tenants? What? Ah, you know, What can you share with the audience about fill in some of these vacancies? How are we getting creative on that?

[00:49:00] spk_1: There’s a few ways you can do that. So from a management perspective, you can look at your space and say what is available today. You can go out now. You can go out and you can post on Craigslist. You can go post in different sites. You can use your network to find business owners that want to move into the space. You could do a lot of things on that side of it to get creative, and those are some of the kind of the typical things. But what about this? So, for example, you’ve got a space that in the same office building, maybe it’s a flex product, right? Industrial in office and you’ve got a great space. How are you going to fit that space? Tow, tow fit Someone’s needs, Right? So what can you do from a management perspective to get creative with that, Maybe you put some money down. Say, Hey, this is a possible build a suit office, Right. So what is that tenant really looking for? So I think you’ve got to balance the Hey, this person’s looking for this base. And, hey, I found the perfect space for you. Probably not always gonna happen or Hey, how can I help you bridge the gap between what you’re looking for and what you really want? So I think those are some of the conversations you have tohave with the potential tenants and the existing tenants as well as they grow their business right and may want to move or expand or do something different with their space.

[00:50:12] spk_0: The art of leasing is a bit Ah, tricky. You You just like any business have to Really It’s a business within itself. Yeah, You have to build a generate leads, convert those leads. I mean, there needs to be a high sense of urgency so many times. I see you know, when people are hot, especially on ly scene, like they’re ready to go. You better you write that lease up and get it over. Now, you know, it’s seven o’clock. I mean, that’s what really? The days of the 7 9 to 5 banker gone for the superstars. You know, if you want to be a superstar leasing agent and you get that call and you do the showing at five and they want to go, you’re going home and writing that lease up, you know, that’s what I’m doing. If you want to be a ah winner. That’s how you get it done, you know? So you gotta You gotta just get those leases out quick. It’s follow. Follow up. Follow up. Follow up. Let’s get either we’re going to get you checked off Is a no or yes, but it’s the maybes that end up costing you the most money. Yeah. Then I just help people up front. Man, you on the very first phone call, you know? Hey. Ah, yeah. So you’re listening. I wantto Can I meet you over there? It’s like All right, well, I appreciate your interest. You mind if I ask you a few questions to qualify? You first. Right. And then it’s the journalism. You know who What, Where? Why? Went So who are you? What’s your business? When are you looking to move in? What are you looking for? How many square feet? What’s your price Range? The wire. You looking for a new space? Okay, who else is involved in the decision? And, Ah, have you toured the bill and all? It’s open to the public. Do. Why don’t you drive by and make sure that the area the parking situation and all that works for you? Okay. Don’t be driving around town show on the 500 square foot office to these guys on every whim. If you do that, you’re goingto be losing the game. Big time

[00:52:10] spk_1: Gas. My gas. President?

[00:52:12] spk_0: Yes. Money. How was that one? Bumper sticker. Go way. Yeah, it’s not, uh so

[00:52:24] spk_1: Okay, so, So leasing.

[00:52:26] spk_0: Releasing? Yeah, there’s a

[00:52:27] spk_1: lot of different ways to get that done. But it’s so

[00:52:29] spk_0: I guess going back to the conversation. Okay. Do a trial. Close man sales. Wanna one? Yeah. All right. So you’ve been in the building now they call you back now They’re hot, like, Yeah, Now I really want to see it. OK, great. If I come down there and it’s what you want, You ready to sign a lease? Well, I got Ah, talk to this guy. Gotta do that. I gotta pray on it. Whatever it is. Now you know what your objection is. Yeah, right. And it’s like, Okay, well, maybe we ought to get that person down here so we can show everybody that wants to be efficient with your time, or I want to make sure. No, I’m the decision maker. Okay, um, that is the case, then. Congratulations. But I want to make sure everybody’s on the same page. And so if your designer or architect needs to, you know, look at the space and make sure they’re going to be able to design it to your needs. You might be the one making the decision, but they’re goingto have input. Maybe we can get them there just to kind of be efficient. Get everybody on same

[00:53:34] spk_1: page. There’s something in sales I’ll bring up over the years. You kind of gotta get just really smart about how you’re spending your time. But you also have to know so Ah, someone Khun say, You know, I’m a decision maker in the process. Most people well, you can say no, but they can’t say yes. So you’ve got to find out who can say yes. And maybe you ask it while who’s signing on this lease, right? And it may be someone different than that. Someone making the decision right. But the ultimate decision will will hold with typically the person that signing the lease. So you really have to kind of dig that dig into that a little bit to really know who you’re dealing with. And it’s rightfully soul is, well, right, because here’s the Here’s the rub, which is You’ve got a hot property. You’ve got great office space, right? Fully renovated. This thing’s ready to go. You want to do right by them by by being transparent as well, because that could easily someone could step in there, do a showing, and they’re signing the lease. So you know, you want to make sure that you’re giving them the right information as well to be their advocate to get in the space secured for them.

[00:54:42] spk_0: That’s the right mindset. It’s always if if if you build your business around the mindset of giving and your goal every day’s to bless other people’s lives and leave him better off than when you found them, you’re just going to be a winner in the long game. You know, if it’s always about me and can I take and cannot get everybody there so I can get my commission and sign this deal? And you know, it’s all your mindset. It’s the same tactic. But what’s in your heart comes through and how you talk to people on how you interact with people. And I think, um, get your heart right first man,

[00:55:14] spk_1: Yeah, yeah, what do you know? Put yourself in their shoes. That’s really what you got to do. Yeah, what would I do? You know, if I was going to go sign a lease on office space, what would I be doing to make sure that it’s the right decision fits within my budget? I have the authority to do that or who are the right authority decision makers, etcetera. What’s my timing? You know, put yourself in their shoes and really try to understand from their perspective. And you can really kind of have that Ah ha moment when you do that.

[00:55:41] spk_0: Yeah, that’s great, James. So let’s talk about the last step that’s flipping these properties.

[00:55:46] spk_1: Yeah. So he saw a clipper hold. What do you do?

[00:55:49] spk_0: Ah, well, probably will do a little bit of bowls. Depends on if you need cash or whatever, but I mean, my primary focus is building a long term residual income. You can shave a sheep as many times as you want, but you can only skin at once. So sometimes if you need cash or some like that selling that ass, it might be the way to go. Or if it’s something that you think you may not be qualified to manage long term or you don’t like the location or it’s really far for for your house doesn’t quite fit with the rest your portfolio. Flip that baby. Make that money Move on,

[00:56:30] spk_1: Khun do that

[00:56:31] spk_0: otherwise just Ah, just hang on to it. Whether you need to refinance to pull some equity back out, pay off an expensive preferred partner, Um or not is ultimately up to you. You have to look at that on a case by case now. So I’ll tell you what If you’re analyzing whether you should, ah, refinance your cash flowing stabilized value, add that you doubled your equity in or not refinance that that’s a pretty good problem to have. You know, for most people, if you’re listening to this and we’re talking, let’s get started or whatever. I mean, I’m not even going to waste your time because that’s that’s like, you know, you gotta learn how to crawl before you can walk. And, you know, we’re just not We’re not even there. We’re not at a point where we’ve, you know, been hanging on the properties for a super long time. We’re even in a position, you know, making. It’s not even close. We’re just focused on Get out there grinding, you know, doing right by people being professional, given people quick decisions, just really providing value for people expected nothing in return. And, you know, just doing a deal here in there, man, you don’t need to buy 1,000,000 properties. You know, if you’re picking up one property, two properties a year, little half 1,000,007 108 $100,000 deals, ah, $1,000,000 deal. Ah, and you’re creating a couple $100,000 in each property. You know, you’re you’re building something that’s going to be a legacy for your children.

[00:57:58] spk_1: Sure. And I in my two cents on that, you know, hold flip, think about, you know, go back and ask yourself, why was I buying property in the first place? You know, because it can take you a while to do a deal. Um, And so you know, when you got started in this business, why was I Why was I buying property in the first place? What were my goals? Did I do it? Just because I want to say I could do it? Was it because, you know, most likely want to make some return on your cash, right? Versus giving your money to an investor? Or I should say, Financial Advisor and put it in the stock market or mutual funds. But yeah, what were my goals to start with? And I think if you can use that to really guide your your ship, I think you’ll be okay.

[00:58:42] spk_0: Sick and tired of work and 40 hours a week. Yeah, right. And not having control over my life. right, you know, is it, um, you work 40 hours a week for 40 years to retire on 40% of your income. That’s the same. Right? So, um, why not start spending time building a residual income for yourself? But you gotta invest, man. Invest in your own education can check out our YouTube channel Commercial investors group. Check it out. We’ve got a lot of cool videos. We’re gonna have the problem. Might be watching this video on there if you are, hit that little subscribe button at the bottom there and hit that little alarm symbol and then that’ll let you know when we got new content out. The other thing is, ah, the creative commercial real estate podcast. If you’re running, driving to work, things like that where you can’t watch video hit us up on the podcast were on iTunes, spotify, all those kinds of goodies. Wherever you listen to podcasts, I think around, like, tune in a couple of areas there, But Google podcasts pretty much pretty much everywhere. Creative, commercial. And that’s the one with the blue cover art. Not the imposter with the yellow cover our or check us out on our website Creative Dot Real Estate. That’s www dot creative dot real estate. You can check us out on there or just shoot me an email man. I’m happy to be a resource for you, Mike. At Commercial investors group dot com. You can hit James at James at Commercial Investors group dot com or calls on our office line. We’re happy to be resource 612877 86 100 it will hope to see on the other side great show today. Mike, thank you for listening to our show creative commercial. Head over to our Web site at Creative dot Real estate or find us wherever you listen to podcasts. And please, If you like the show, leave us a review. It really helps us out.

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