Commercial Real Estate Investment Sales Pt. 3 | Brokers Round Table

In today's episode we learned strategies for commercial real estate brokers to land listings, market properties effectively, and negotiate deals to close from an expert brokers roundtable discussion. The brokers discussed the importance of pricing listings realistically based on market data, developing a strategy by understanding each seller's unique goals, and having a curated list of potential buyers to take new listings to. They also emphasized relying on data and creative problem solving over high pressure sales tactics when negotiating deals.

Key Takeaways:

• It's important to price listings realistically based on market data to avoid getting a reputation for overpricing properties. Sellers may need to hear from multiple agents before accepting a fair market price.

• Ask sellers questions upfront about their goals and how they want the property marketed to develop the best strategy. Different sellers have different preferences like privacy.

• Cultivate relationships with potential buyers over many years to have a ready list to market listings to. Taking listings to many buyers helps strengthen negotiations.

• Rely on market data and logic in negotiations rather than high pressure sales tactics. Commercial real estate is about problem solving creatively for all parties.

Check out CRE Launch Pro: www.crelaunchpro.com

About Your Host:

Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate developer and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors.

Episode Transcript:

0:00

This episode of the commercial real estate investor podcast is brought to you by cre launch Pro. This online commercial real estate program is designed to take you from beginner to pro commercial real estate investor with access to all of my courses, our online community and monthly group coaching calls. Learn how to confidently buy your first commercial property today at www dot c r e launch pro.com. Welcome back to the commercial real estate investor podcast today we are back with you on a another round of the brokers roundtable. excited to dive into part three of commercial real estate investment sales. Part One ended up going a little bit longer than when he had we had anticipated and then part two, we got cut off a little bit thanks to my wonderful and glorious internet connection. So we're bringing you part three, today we're gonna be diving into convincing owners to sell how do you actually land those listings? Marketing those listings, how are you gonna go about finding buyers for them, and then tips for negotiating and closing these transactions gonna be jam packed. So we'll just kind of dive right in if you guys are good with it. We got Jesse and Chad here with us today. Adam is down on vacation skiing. So we all feel so bad for him at the moment. But Jesse, let's let's start it off with you, man. Since you were tied up last time, you had some sort of event going on, I believe that you were hosting. But talk to us about landing these listings. How do you how do you what's your pitch to a property owner? How do you get them to actually listed property with you and take the sale?

1:36

Yeah, thanks. Hopefully, you can hear me okay with the mic? Yep,

1:40

we got you. Good.

1:40

Okay, cool. Yeah, so I was at the real capital conference in for basically real estate investors in Toronto, Canada, but more broadly, but that's where I was at, in terms of getting the initial buyers. I mean, it really, it's got to be multifaceted. From our point of view, we do a lot of outreach. And I think we'll talk about this today. But it's going to be existing relationships that we have developed, you know, that's one source, another source will be, especially in today's market, looking at pain points. So whether that's expired listings, you know, people that have gone through this selling process, maybe with one or two agents before, that's usually another kind of bucket. And then there's going to be the net new. And that's really kind of building your systems. And you got to really define what type of product you're looking at selling. So if it's multi res, you're going to look at a geography and you're gonna look at a unit count, if it's office, a certain type of office or industrial, you're going to target something different. But, you know, it's a big question for, you know, for this type of kind of beginning to build your kind of CRM database of buyers. So I kind of bucketed into into those three, but you happy to go into detail on them. Yeah,

3:02

I mean, it's funny, as a, you know, long standing commercial real estate broker, the running joke has always been, you never want to be the first guy, you want to be the second or the third listing agent, because those are the ones that ended up getting it sold, the first guy has to take, you know, they're the Pioneer, they get the arrows in their back from the seller, the seller doesn't want to change their list price, they don't want to share this, they don't want to concede on that. And then the second or third guy comes along, you're six or 12 months into it, and they actually decide, okay, I think we should probably sell.

3:35

Yeah, especially today, like more than ever, because of a protracted closed cycle, just given what's transpired over the last three to four years, the the market itself, all of that kind of adds up to, you know, sometimes it does take a couple agents before, you know, you have the final sale. And and I you know, we've talked about this before, sometimes it has nothing to do with the efficacy of the first agent, but the dealer or the seller sometimes just needs a little bit of fatigue. Yeah,

4:04

Have you have you? Are you seeing that right now? Are you seeing a lot of seller fatigue out there with with trying to get their properties moved?

4:12

Yeah. And then it comes in different shapes and sizes in terms of what the seller is able to do. And what I mean by that is sometimes you'll have sellers that are, you know, they're frustrated, and they take it off the market, and they might be capitalized in a way that they can do that. Others, they get frustrated, but they they really need to sell. So, you know, they might try to switch up brokers, you know, they might try to do other things, but ultimately, if they need to sell, they still have to put the property out there. So we're seeing a lot of that right now. It's you know, it's just a function of the environment, the economic environment we're in

4:47

Chad, what about you, man? What's what's kind of your approach and landing these these sales clients?

4:53

Yeah, that's a great question. And I would agree with everything Jesse said there i i would add that It often comes down to a client's motivation. If a client's very motivated to sell for whatever reason, perhaps they're on the cusp of going into receivership. Perhaps there's a larger property they want to buy, perhaps or just bolt, they're bearish on the future. If they're motivated, they'll be realistic on their sell brace. If they're not motivated, if they just want to see what they can get in an open market, then they'll typically start higher. That's that's the challenge we've been dealing with over the last two years is that bid ask spread between what a buyer wants to pay and what a seller wants to get set an all time high right now, that's driven largely by interest rates, fear of what's going to happen the economy, but to the original question, how to get listings, and I say this somewhat facetiously, but just give the highest price. If you're an agent, and you want to get a listing just give the highest price. And that's often what actually happens on why the first agent in there doesn't sell it is because the seller lists it with the person that gives them the highest price in their mind. That's terrible business. So worst thing you could do as a broker, because now you're working for free, you're tarnishing your reputation in the market that you're taking on overpriced listings. So it's reasonable to say that if What if a guy has a really overpriced listing, there's chances are he has other overpriced listings. And again, you're just wasting your time, what some people might say, and I've heard this strategy as well, as they'll say, take on the listing whatever price you have to, and slowly start wearing the seller down by trying to get price reductions over time. So conversation might be like, Sure, we'll list it for $10 million. But if we're not getting any activity in the first two months, let's pre agree that we'll lower it to 9 million or whatever it is, and then we'll have some built in conversation to try and lower it. It's difficult, because that's quite often what agents get painted into a corner on is the owner will say, I want $10 million for this. So what's your price? What do you recommend on it? And if an agent comes in and says, Listen, I've done all this due diligence, I've surveyed the entire market, I've done an underwriting on this, I think the market for this is $9 million. But another agent comes in and says, yeah, we'll take it out for 10 million. We've probably hoping on the other side of this where the agent that takes it for 10 million. So I think that there are things that you can do to position yourself for to not have to take on those overpriced listings. I'm not a fan of that. Personally, I try to price things as as close to what I think fair market value is. But we also play in a playground where no two assets are really the same. And it is difficult to price an asset sometimes. Because we don't know there's so many variables that go into it. So there might be a buyer out there that is willing to pay a premium that we hadn't thought about because we were trying to look at it what a general buyer would say. So it's it's a challenge, coming up with a fair market value for something as complex as a commercial or industrial real estate investment is very, very challenging.

8:07

Let's let's let's dive into that a little bit further. Because that is one of the biggest frustrations that I've ever had, as a commercial real estate broker. There was a property that is right down the street from my office. And this was probably two years ago. And, you know, obviously I was brought in to be one of the the brokers in the pitch. And I knew the market better than anybody else. I told him this building will sell for 1,000,005. That is exactly what this will go for based on all of these comps. They're like, Yeah, we really want 1,000,008. And I kind of told him, I was like, look, I mean, we can list it at 1,000,008, I'm telling you, it's going to sell at 1,000,005. So as long as you guys are willing to, you know, drop the price, or at least entertain offers over a million for 50 or a million for, you know, it's counter those. Let's let's have the conversation, they ended up listing it with a tenant rep broker, which blew my mind this guy, all he does is represent tenants and leasing. Who I guess came in and said, yeah, what's the familiar date, whatever. Well, guess what? It's sold for three months later. 1,000,005. And it like it infuriated me. Because, you know, I pretty much brought in all of the data, all of the information backing that up. They said no, we want to list it for 1,000,008 and they still sold it for 1,000,005. So I mean, there's there's two trains of thought, right? It's the I'm gonna hold steady to my guns, I'm gonna tell you what it's worth. But then you might lose out on the listing and lose out on the opportunity all together. So how do you reconcile the Okay, well, we'll list it for 1,000,008 Even though I know it's not worth that and maintain your reputation as a broker. Me, Chad, we'll start off with you on that one.

9:51

Yes, it's a fascinating topic. I think that there's a lot of ways that you can approach it. You can say sure, I'll take the add on for 1,000,008. But again, my data holds true, I would lean more towards the side of the best way to combat that scenario is to have a lot of calls, a lot of calls irons in the fire. If you have a lot of irons in the fire, any one that gets pulled out isn't going to materially impact your business. But if you're a new agent, and this is where new agents struggle the most, they might only have that one client that they're talking to or potential client. And if that client says a million at the price, there would be a lot of trepidation to say no, it has to be 1,000,005. I know my stuff. So that agent might be tempted. However, if there's a an agent that was had a lot going on, and perhaps they'd had a number of deals in various stages, and they were working on new listings, that one individual listing wouldn't be as impactful. So you could hold to your guns. So I think that's one of the biggest things is you can't be dependent on any one deal, because that's just a recipe for frustration and failure in our business. I would I what I tried to do, and I'm sure I've been guilty of taking on properties that are relisted overpriced as well. But it's just a candid conversation with the owner is, here's all the data, everything that I have on the on the market, everything that's going on, if you disagree with anything on here, and you can show me why this property is worth one, eight, I'm all yours. But a prudent buyer is going to go through this exact same exercise. So if a prudent buyer is going to do this, and we're assuming that's gonna be a smart buyer that comes to buy this, but you price it higher, we're basically looking for that dumb money. And I don't know too many guys that are dumb money that are in a position to buy a $1.8 million building. So I think we really need to be realistic here. Otherwise, you're just gonna sit on the market and you can become stigmatized, people could wonder why it's been on the market so long, there's a lot of reasons why fishing for a higher price is not good sound business, it's sometimes it's a hard conversation to have. And again, that goes back to how much you have on your plate, if that's the only thing you're working on, that can be a really tough conversation to have. Because you might just get shoved out of the room, you might just say get out of here. Whereas if you've got a lot of things on the go, it's a lot easier to have that conversation. So I, I think that that's really the best way to approach it is have enough going on that no one deal is is going to end your injury or ruin your year, and be prepared to have very candid conversations, we get paid for having uncomfortable conversations. We're not just order takers, where someone puts in an order, like we're a waiter, and we type it into the kitchen, pick up the food and deliver we're bringing a lot more value. And sometimes that just means having an uncomfortable candid conversation.

12:49

Yeah, I mean, that's, that's always the approach that I've had is, look, I've got too much going on. I don't want to market your property for free and get nothing out of it. Because I know am I going to sell it at that price. And you know, especially now being on the buy side of these things, I know exactly how investors think of brokers that overpriced things. And it is, you know, just talking to my investor buddies, I mean, there are brokers that have a reputation in the market for always overpricing things. And I'll tell you like, investors will talk about it in their circles, and never make offers on those properties. Anything that broker touches, so yeah, it's probably overpriced by at least 20% We're not even gonna bother, you know, submitting an offer. And, you know, it's good now to have that experience from, you know, coming from the brokerage side of the table to now the investor side of the table of knowing like, Okay, well, I'm gonna tell the seller this, Hey, by the way, you know, you could overpriced it, but brokers that have a reputation for over pricing, get fewer offers, because people won't even think that you're worth negotiating with, because it just seems so unrealistic. Jesse, what are your thoughts on that?

13:59

Yeah, I think I agree with everything Chad just said. So there's, I mean, there's really two, three things you could do, you could agree to the sellers price, you could not take the listing, and then you could, you know, come up with some sort of hybrid or a solution. So for me, we just dealt with us, and it kind of ties back into having sometimes a second or third agent to get the sale. We had something that had stayed on the market for a while, the pricing was very high, they dropped the pricing. And we actually this was a little bit different in the sense that we said, Listen, we won't take the listing, unless it's this price per square foot, the total price I think was just just shy of $10 million. But the owner didn't want to deal with like he didn't like the pricing, and we said these are the comps. Now, if there's nothing worse than taking on a listing that you know, you can't sell because then you're you're right, you do win it but then you stockpile these very frustrating time consuming listings. So what I like to do is, you know, depending on the state or province might be a little bit different. In terms of how you how common this is, but we'll tell the buyer will say, Okay, listen, like in this case, we'll guidance will put guidance. So if he says 10 million will tell the market, they call us will guide them at 10 million, but we're gonna go on unpriced, we're gonna go to the market on price, which is not uncommon in commercial real estate. So for us, we're up on all of the normal websites, we're marketing it with basically pricing contact agents, if we're not doing a bid or anything, and then they call me, and then I can have a more frank conversation with the agent on the other side, I can say, Listen, you know, put an offer in if they're, if they say, in this example, that the buyer wants 10, I think it's really around nine, you know, guy comes in, says, Will, you know, 99.2, or will 8.8, move the needle, at least there I can have a conversation and do what a broker supposed to do be able to get some sort of zone between the buyer and the, and the seller that's agreed upon, because you just might have a buyer that says, I will not put this price, you know, below this price, I will not market it like that. And so you have to kind of be the conduit between the potential buyers out there and your seller client. Yeah,

16:13

I like that approach. Because you, you get the listing, you're not going to get the reputation of having something that's overpriced, you can have a frank conversation with, with the group that's calling in, and it at least gives you an opportunity to start building rapport with a potential buyer, right? Because it wouldn't be calling you if they weren't interested in that property. Right. And any sophisticated investor is probably going to have an idea of what the pricing is gonna be.

16:35

Yeah. And then you actually have real date data that you go to your you say, you have you got three offers and say they all are falling around, you know, like your example before, they're all falling around that 1.5. That's evidence for you to take back in a non patronizing, non argumentative way with your seller, right? This isn't just the facts.

16:54

Yeah, hey, the market, the market is speaking. Let's listen. Yeah. Okay, so once you've gotten the, you know, you've convinced the seller, hopefully you told them, it's worth 1,000,005. And they're like, You know what, let's list it at 1,000,005. I like you. How do you go about marketing that, and I'm not necessarily talking about, like, let's put together a flyer and let's send out the email blast. I mean, let's let's talk about like the next level commercial real estate broker stuff, the things that we're doing to actually earn our commissions. What is your like, you know, order of operations, your attack strategy, once you get a property listed that, you know, this is a great deal. This is a price that's going to sell? Jesse, we'll start with you. Yeah,

17:37

sure. So, for me, it really depends on what type of product you're selling, not so much of like the asset class, but more. So if it's going to be an investor that's buying if it's going to be a user play. So for instance, like when we get when we get, you know, real estate that we know is likely going to be a user as opposed to an investor, then for us the outreach to those users is is crucial. So you know, if we know that there's kind of this property, it's, it's probably something that would be you know, maybe education users or gym users, like it really lends itself to a certain type of group, then we'll start the direct outreach, and basically be contacting users saying, Listen, I know you have these different locations, and those might be ones that have never purchased before they might lease. But you know that they have decent covenant, would you be interested in purchasing and then you start that act of outreach. On the other side, when it's investors, that's usually where we we work kind of the lists that we've cultivated over the last, you know, it's not sexy, it's it's outreach that you've done lists that you've built and qualified, and kind of pepper those guys and see if there's anything creative that that you could do on that end. But those are usually the two kind of ways I look at that investors or actual operators.

18:56

Jared, what about you?

18:58

Speaking specifically, on the industrial side, one thing that I really stress is that a broker probe ask a bunch of probing questions at the beginning, even before making a pitch, because different owners are going to have different expectations, and they're going to have different ways that they want things done. And a really simple example of that is an owner that doesn't want wide exposure, they might not want the property listed on the website, they might not want a sign out front, they might just want a quiet close, so they don't disrupt the tenants. They don't want the tenants even knowing it's for sale. But you'd be surprised how many times I've actually dealt with that scenario. And if it's an owner that's had the property for 20 years, and they've had the same tenants in there. They've probably built a bond and a relationship with those tenants and to just tell them that they're selling it and then tenants will get all worried and they might start looking for other space. As a result of that. There's there's a lot of valid reasons on why an owner might not want to have an expensive marketing plan. Sold That's one of the things that that I really tried to do at the beginning is ask questions, what? What are your objectives? What are you looking for on this? How do you want this handled? And it really becomes almost a strategy session as almost like a partnership like we're, let's come up with a price together. Like instead of us saying it's worth one eight, I'm saying it's worth one, five, let's arrive at a price together on this. But also, how do you want this marketed? What do you want included in that, and if it is an order that just says I want a quick sale, I don't want my tenants to know what I want this marketed to Jesse's point is just go to a select group of clients that you know, are interested in that type of property and presented to him with a with a package probably under an NDA or see a very strict one, and keep it very low key. Conversely, you might find an owner that says, I want every single buyer in the market to know about this, including out of town, buyers and international buyers. And at that point, you're going to have to take on a much more expensive and aggressive approach. But that's that's driven by the client that's not driven by us. That's what does the client want. And quite often that that can be what wins or loses business beyond just the price, I still think the easiest way to get a listing is to just be the highest priced broker. Because that money talks to a lot of people unfortunately, just listen to it. It's not the right way. But it's the easiest way. But if you and I guess I would say like if you were to if you're in so you want property, Tyler, if you're in the shoes of selling a property, one broker comes in and says, Yeah, I can get you one eight for this all day. And very little data, not a whole lot going on. They don't ask questions about what you're looking for. They don't dive deep into it. Whereas another agent comes forward has all this data comes fully prepared, asks a bunch of questions like What are your goals? What are your objectives? What are you trying to hope to get on this, and then says one, five, if there is a way to compete on price, so that you didn't have to listen to one eight, but you're that much more prepared? And you're asking those questions, and you're as resonating with the seller, I mean, I think you're giving yourself the best chance of getting the listing at that one, five, assuming that he's not just driven by the price to get one eight, which at that point, you either taking a one eight, or I don't know what you can do. Yeah,

22:18

I mean, I've always kind of been of the mindset that if somebody is not even willing to listen to you, as the expert in the data, they're probably not worth working with. Right, this isn't gonna be the only hurdle that happens in this entire thing, right? They're either not going to share documents on time, they're not going to show up to closing, you know, they just take in a very different way, it's not as professional as I would prefer it to be. So I would completely agree with that. Yeah, I mean, look, you know, cold calling, building up those lists, that's the thing about commercial real estate, that's why everybody says it takes three to five years. Because once you're five years into this business, you've talked to how many dozens if not hundreds, of potential buyers, if you've done a good job, you've kept a list of all of them with all of their phone numbers, maybe you've even got him, you know, saved in your cell phone under buyer. So you can just go through and make all those phone calls right there. It makes it so much easier. You know, I mean, my my team now, like, whenever an industrial deal pops up, we make five phone calls, and chances are pretty good, we're gonna have a contract pending from one of those five phone calls. Because we've just know, over the last 10 years, we've curated this list of potential people that would be interested in that type of product makes your life a lot easier. That's for sure. Alright, let's let's talk about, you know, negotiating strategies for working on these investments. And, and tips for actually getting them closed. Because, man, there are some personalities when it comes to selling commercial real estate. There are some egos involved, and there's a lot of hand holding throughout the process, no matter how sophisticated a group as so, you know, what are? What are some tips for negotiating these deals? To make sure that you can always get them under contract, right? Because I mean, I've seen some crazy things pop up, like, you know, a couple weeks ago, we're working on a deal. The seller didn't want to share any financials, he thought that his pro forma was good enough. Okay, well, there's a couple different ways that we can handle this, right, we can negotiate a a purchase price that includes the risk that we're taking by you're not providing financials, or we've got to get you to provide the financials. So what what are some interesting approaches you guys have had chapel started off with you?

24:31

Yeah, one thing I'd say is that in this maybe is not conventional brokerage advice. But sometimes we run the risk of over selling and thinking that we need to push and force deals along and quite often we do need to nudge things forward. And we and what we do and how we interact with various parties does have a profound impact. But I've never once in my career had to hard sell somebody. I've never had to use a The car salesman tactic book, I don't know if you guys have ever driven or gone to look at a car recently, I've actually had two salesmen say this to me, what do we need to do right now to get you to buy this car today, two different salesmen at two different dealerships that say that, to me, that's just like a corny, high pressure sales tactic, that I've never used sales tactics. If anything, I think the beauty of commercial real estate, especially in the investment space, is it's very logical, an investor wants X, they want this return, they're going to value the building accordingly. Here's the price. And you can usually share that information. So the buyer comes and says, I know you guys are asking 10 million, I've run a full analysis on this, and I'm valuing it at 8 million. And here's why. That's a pretty compelling argument to say to the seller, this is why he's valued at 8 million, I don't need to use some cheesy sales tactic to try and twist his arm to take that 8 million. This is this is sound reasoning. And I think if you couple that with the approach that you're taking it out to numerous people, because I think there is a risk in in having a deal. Or going to stalemate, if it's just one buyer that you take it to seller says he wants to sell, you just take it to one buyer that that could be challenging, it can work, of course, and I'm sure it's done regularly. But that can be challenging. If you've taken it to 30 buyers, and one offer comes in at 8 million, you can say I've given 3029 other people the same opportunity to buy this and no one else has wanted to put forward an offer. So that's that's a data point right there. But then you add in that this one buyer has written an offer, here's all the reasons on why he's done it, it's up to you like this, this is just all I can do is make sure that I've put this in front of as many willing ready and able buyers as I possibly can. And here's the price that came in. So it's long story short, I would recommend against trying to be high pressure, and instead rely on the data that that is all there. There's there's very little speculation that goes into it, an investor will just say, here's how I'm evaluating this. And if you couple that by saying I've taken it out to all these other buyers, here's the feedback that I've gotten on why they're not interested or why they're not going to proceed. I think that that that that speaks for itself, anything more than me, given a cheesy line, like, What are you What do you need to do to sell your building today? I don't think it's very effective. Yeah,

27:32

I'm right there with you, man. I mean, that's what I love about commercial real estate is you don't have to have any of that, that those corny salesman approaches because they don't work, in my opinion. Nobody's going to make a $5 million decision just because you said hey, how can I get this deal done today? Right? It doesn't work like that. It's there's so many moving cogs in the machine that even if they said, You know what, here's what we need to do, chances are, you still have 99% of the deal, you gotta jump over to get done. You know, the one thing that I always tell my brokers is you are the only one in this deal that is going to get this done. And you need to act like that. Because that's one thing that I unfortunately learned in my many years of brokerage is that for whatever reason, every single other party in this transaction doesn't want to get this deal done. For whatever reason, the buyer doesn't actually want to buy, the seller doesn't actually want to sell the attorneys, they want to blow this thing up at every possible opportunity and redline the hell out of a piece of paper until it becomes rainbow. I mean, they want nobody actually wants this transaction to happen. So you've got to have that in your that mindset. As a commercial real estate broker, if I'm the only one that's going to push this forward, what do I need to do today? To keep it on track? Jesse, what about you, man? Yeah,

28:48

I think like, even back to the conversation before, it's like you're greasing the wheels, like you have to keep the lubrication of the deal continuing, I think it's not really us like to jaggery, which admits it's not really selling in the conventional sense, but selling the deal itself to the parties involved and continuing to have it move in the right direction. So the way I approach this is, right from the outset, you need to be to me, I need to be clear what the expectations are. And what I like to do is have you know, the data room that you that the buyer understands the deal. So that we don't get in a situation, especially today, again, talking about the market where you start getting retreating, oh, I didn't know about this, or this environmental report showed this. It's like no, no, we had all this information upfront, so that everybody's on the same page. So I think that's a big component of it, just making sure that the expectations are set right from the get go so that when these things come up, you can you can work through them. But yeah, I think a big part of our job is not traditional type of selling like you know, you buy this for this amount of money and they're gonna you know, all of us I'm come to an epiphany that, that, you know, I should spend $2 million more. It's like Chad said, they're going to do their valuation. And you know what, it's also the reason that when people don't know our industry, they're kind of confused that we don't always go with the highest price, say, in a bid situation. If I go to my client and say, Hey, this guy, he's got the highest price, but he's been known to kind of Retrade know not to be able to close on certain deals, like that's another part of us, as you know, quotation sellers for selling a deal to our, our clients, we're de risking it. So it's not necessarily the highest price is the best for for them. And in every circumstance. Yeah,

30:40

I mean, I think more than anything, we're creative problem solvers. Right? We're here to give everybody as many potential options as we possibly can. You know, and going back to Chad's point earlier, it's it's all about the questions that you ask, if you don't ask the questions, you don't know what problem you actually need to solve. Right? And maybe I could have done a better job on that 1.5 $1.8 million deal of asking better questions. Right. I mean, I was just running through, you know, what's a possible scenario we could have done here? Well, why is 1.8 million hours important? Important to You? Why is that more important to you that 1.5? Well, Tyler, you know, I need to, I'm gonna retire after this. This is my retirement, and $1.8 million, makes me feel really comfortable having that in the bag. Okay, so you're not planning on spending this money on anything, this is going to ask you the rest of your life? Yeah. Okay, well, let's talk about seller financing. If you sell it for 1.5 million, you carry a $500,000. Note, you walk away with a million dollars in cash, you have $500,000, that, you know, five 6% interest for five years, you're gonna make a pretty decent chunk of money back, right? Or maybe you do it for 10 years, right. And they hold it for the entire time. And you know, I can't run the math of what you know, interest rates would be and how much cash would actually bring in over that 510 year period. But you kind of understand my point of like, if that was the problem, I could have solved it in a different way. That would have gotten the $1.5 million price would have gotten me the sale would have gotten the seller, the $1.8 million total that they needed to feel comfortable with retiring, or whatever it was. And it all comes down to asking the right questions. So who knows? Maybe? Yeah,

32:19

one other question you can ask and I've asked this as well is, would you buy this property today? For 1.8? million? They're always gonna say no, yeah, of course, they're gonna say no. And so the logical thing is, why would we expect someone else to, like it's investors at this level are smart, they're sophisticated investors. There's not a lot of dumb guys walking around with a million eat, burning a hole in their pocket are doing the exact same analysis. So the questions, questions themselves can be very powerful.

32:48

Oh, man, I love that. What would you buy this property today for that price? You're almost never gonna get a yes. never intended. If you do, you might tell yourself out of a sale. They might say, You know what? Yeah, actually, I'm gonna keep it.

33:03

I've got I've gotten something affected by it. But they're not me. It's like, oh, you're the genius investor. Yeah,

33:09

that's, yeah, you you knew exactly what you were doing. You just happened to buy it 15 years ago. Before real estate took off. It's great. Well, guys, it's been a great part three, appreciate you all jumping on and doing this with us. Thank you all in the audience for joining us. Don't forget to tune in every other Tuesday at 3:30pm Central Standard Time to dive into more commercial real estate brokerage with us if you have any questions specifically that you want us to be diving into. Feel free to jot those in the in the comment section on YouTube. And we'll be sure to bring them up. But otherwise, we'll see you guys next time.

33:50

This episode of the commercial real estate investor podcast is brought to you by cre lodge Pro. This online commercial real estate program is designed to take you from beginner to pro commercial real estate investor with access to all of my courses, our online community and monthly group coaching calls. Learn how to confidently buy your first commercial property today at www dot c r e launch pro.com