Appraisals, Land Flip, Commercial Condos, And More (Office Hours)
We're back from Thanksgiving week and going live at 8:30am CST for "office hours" to answer your questions about commercial real estate on the show. Let's hear what you'd like to know when it comes to brokerage, investment, and development!
Get commercial real estate coaching, courses, and community to jumpstart your investment journey over at CRE Central: www.crecentral.com
Key Takeaways:
Tyler discussed his end-of-year planning rituals, including an annual tradition of writing down and burning things he wants to leave behind from the previous year.
He shared insights from the CRE accelerator mastermind, highlighting the value of being part of a supportive community and learning from experts in different niches.
Tyler talked about challenges with appraisals and how to proactively provide data to the appraiser to improve the valuation.
He emphasized the importance of goal-setting, using SMART goals to break down lofty objectives into actionable daily tasks, especially for the brokers mastermind group.
Tyler shared his personal goal of working 3 days a week in 2025, stressing the need to be selective with his time.
He discussed the pros and cons of commercial condos as investments, generally advising against them due to potential HOA management issues.
Tyler provided advice on financing strategies for adaptive reuse projects, suggesting reaching out to multiple lenders and pitching to potential investors.
He highlighted the challenges of investing in coastal areas due to rising insurance costs and climate-related risks.
About Your Host:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker 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:
Tyler Cauble 0:00
This episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way. Go to www dot cre central.com to learn more. Welcome back to the commercial real estate investor podcast live from the cobble group studios. And today's the first time that we've been live here. In a little bit, I was out for the Urban Land Institute's emerging trends in real estate 2025 event here in Nashville. And then, of course, last week was Thanksgiving, so I was out of town spending some time with family. Had a great time been a good couple of weeks. So before we dive into all those questions, obviously, this is Office Hours. This is where we are answering whatever questions you have around commercial real estate, whether that's brokerage, property management, development, some sort of investment that you're looking at, jump in. This is your opportunity to get some free advice on a deal. Couple of house notes that I want to dive into. Kyle is saying, Good morning. Good morning, Kyle. Thanks for joining us live one obviously happy Thanksgiving. It's belated, but hope you all enjoyed it. We had a good time. I got to get out and spend some time with my family down in Texas. Question of the day, since it's basically the end of the year, if you're listening on the podcast, it's probably the end of the year, how are you planning on closing out the year? Do you have any annual rituals? I get together with my EO forum every year, and one thing that we like to do is write down some of the bad stuff or things that we just want to leave behind in 2025 we like to write them down on a piece of paper, and we kind of hang out, talk about it, share it, and then throw it into the fire and just kind of let it go. So it's a nice way to say, you know, you know, like, hey, you know, if you're a broker, right? Cold calling on there. Maybe you don't want to cold call anymore. You're tired of it. I'm done with cold calling. Throw it in the fire. Leave it behind. Move into 2025 did I say leave it in 2025 leave it in 2024 I'm already in the new year, guys, I'm ahead of it, man, getting into getting into things. Speaking of 2025 I'm gonna make some changes to the types of videos that we are doing on the channel here. Looking forward to that, actually, because it's gonna be a lot less work on my behalf. But it's still gonna bring you guys as much in depth, actionable knowledge as possible, and that's going to be doing more live stream presentations on specific aspects of commercial real estate investing. So the first presentation that I'm putting together is how to attract investors for your first commercial real estate deal. Right? It's going to be very in depth. We're going to have a bunch of giveaways, uh, including, like, an investor outreach blueprint, you know, scripts, all this kind of stuff, with these new videos, so that you just have more of what you need to actually make these deals happen. Also have some pretty exciting news to share, with regards to that, which is, we crossed the 100 member Mark for the CRE accelerator mastermind this past week, which was really cool, kind of wild to think that this mastermind, you know, somebody actually on the channel, had left a comment a couple of times that said, Hey, will you please start a mastermind? I've gone through the course. I love it, but I want to be surrounded by other people that are actively doing this. And you know, the more that I thought about it, I was like, gosh, I don't really want to do that. That's a lot of work. It is a lot of work. But the more I thought about it, the more I was like, You know what? There have been moments in my career where being involved in a mastermind was hands down, the most pivotal moment that I could have had. Right? I wrote a book open for business, the Insider's Guide to leasing, commercial real estate, because I was in a mastermind where they had everybody in the room stand up that had authored a book, whether it was self published or not. Didn't matter if you had authored a book, over half the room stood up. And so I'm sitting there being like, Well, hell, I don't want to be the chump that, you know, sit in here that didn't write a book. So, you know, at 2025, I wrote my first book because of that, but it was because I was surrounded by other people that had already done it. So I was like, Okay, well, they can do it. I can do it. So it's been fun. We started the mastermind, I guess, a little over a year ago. So to cross that 100 student mark is really cool and and, yeah, I just want to say thank you all. A lot of y'all join in on these live streams, which is really cool. So if you are one of the Siri accelerating members, thank you. Honestly, I feel like I probably get as much, if not more, sometimes, out of the mastermind as my members do, because we've got some amazing people in there that are doing some really interesting things that are. Hands down, better experts in certain niches, right? You know, we've got Marcus, who's been doing car washes for decades, right? He's going to know more about car washes than anybody else in the group. So anytime something comes up with a car wash, he's happy to jump in and say, Hey, by the way, here's, you know, have you considered this? Or, you know, last night we were talking about on our coaching call that a lot of bank branches. I didn't know this, a lot of bank branches have actually been converted into car washes, or are being converted into car washes, because banks will buy up other banks, then these branches just sit there vacant. And apparently that makes for a pretty decent car wash, if you can find the right lot. That was pretty cool, right? Like, that's cool stuff for me to learn, right? It's iron sharpens iron. So that was pretty neat. Another thing that I want to talk about, too, that we kind of dove into last night, is appraisals. So I'm dealing with, I'm dealing with a, we've actually got a an investment client at the cobble group that is buying a triple net property out in Texas that we're representing him on. And we had issues with the appraisal, right? The appraisal came back, like two or $300,000 under what we had it under contract for. And then last night, one of my students brought an appraisal, and he was like, Look, I think that the appraiser is actually over appraising this property. He doesn't want it to be over appraised, because he's trying to buy it, right? And so the seller is saying, well, the appraisal came in at this well, so we were looking at the appraisals and kind of diving into those. And y'all, you can go in there and have appraisals updated, right? You can actually change what those look like, because an appraisal is just one guy's opinion. Right at the end of the day, that's really all that it is. If you can go in and provide them with the facts, the provide them with the comps, provide them that with vacancy rates that they might not necessarily have, you can't actually change the outcome of those appraisals. So that's what we did for this deal down in Texas. It's a flex deal down in Houston. So I went in and pulled a bunch of cops in the area, made some phone calls to some brokers I know that area that shared them with me. Shout out to Cody. Appreciate you, man for doing that. And so now the appraiser is actually reconsidering his appraisal, and he's going to be updating it, which is what we need, right? Because if the appraisal doesn't come in where you need it, the bank will only lend up to whatever that number is, right? Or if you're on the opposite side, you don't want to pay 1.6 million, right, when you think it's worth 1.1 to 1.2 so we're arguing on on my students appraisal, saying, No, you're basing it on future values that aren't being realized today, and there's a chance that that may not ever get realized because we just don't know, right? It hasn't been proven. So how can the value be this? We also broke it down and looked at like the operating expenses and the OPEX in the appraisal for my students, appraisal was way too low. It was like 25% for an apartment complex, and it was a small apartment complex. And so for those of you all that do multifamily, you know, it's gonna be like, 35 to 50% and so, like, they didn't have common area utilities in their operating expenses. So, you know, there's little things like that that, like, if you go through the appraisal, you can actually argue it, and you can make it better. Gosh, what else do we have? First cohort of the brokers mastermind is kicking ass and taking names. That has been a lot of fun. I haven't brokered deals in a couple of years. I mean, I have. I am right. I mean, like, I just told you about that deal down in Texas. I will selectively broker deals, but I'm not as involved in it as I used to be, and I miss it because, like, that's just really, like, I love sales. Like, there's just something fun about getting a sale across the finish line. And so being involved with the brokers mastermind, and seeing these brokers come in and just absolutely crushing it. Tonight, we've got our weekly brokers mastermind call, and we're going to be diving into goal setting for 2025 so I'm going to walk them through how I set my goals. I use SMART goals, and how I set my goals for the year, and how they should kind of be doing that as well, so that they can actually, you know, so that you don't just have some sort of lofty goal, like, Yeah, cool. You want to make $100,000 this year. That's great. What are the daily actions that you have to take that are going to get you to $100,000
okay? Great. Your goal is to buy your first commercial property this year. What are the daily actions that you are going to take that are going to get you that much closer to buying that commercial property? Because if you don't break it down as granular as that, like today, I'm going to make five phone calls to commercial real estate brokers, I'm gonna do that every day for the next month, until every single commercial real estate broker in this market knows me so that when something hits the market they call me first, so that I can buy a property this year, it's not gonna happen. The goals just won't happen. And then also, it got announced this morning. My partner, Bruce mcneilage And I flipped. Bought a piece of land here in Nashville. We're very proud about I bought a 1.7 acre parcel. We'll actually be doing a case study on this in the Siri accelerator mastermind. But I bought a 1.7 acre parcel here in Nashville, and it was zoned for 11 units. We went and got it rezoned for 63 units. And the reason that I was able to get it up to 63 and get councilmanic support, our council member in the area is big on affordable housing. And so I told her, Look, if you can help us, if we can get this density that we need here to make this parcel make sense, I will give you my word, because they can't require you to do this. I will give you my word that this will, this will be an affordable housing development. And so she trusted me, and we went through the process, got it rezoned for 63 units. We bought it for $618,000 we did have a loan. So, I mean, I think my partners and I, my partner and I, we had about 150 each into it. We bought it for 618, so call it $300,000 in equity, and we just sold it for 1,000,005 75 so if you do the math on it, not, not a bad return, we could have probably gotten more, to be honest with you, if we decided to go market rate on apartment development. But to me, making sure that one, we keep our word, and two, the neighborhoods improve is more important. So those are, those are my updates for the week. Let's dive into y'all questions. Enough of hearing me talk Jared is saying, what's the basic content or pitch on the letters you send the people who want to sell. I mean, Jared, if you want the the basic it's, Hey, my name is Tyler. I buy commercial real estate. I want to buy your commercial real estate. Will you sell it to me? Right? It's pretty much it, right? No, look, look, people overthink letters. They overthink the communication. Just make, make the communication. Make the touch point. Who cares? You're getting the point across. There's not some sort of special, you know, elvish language that you can drop into the letter that's going to compel somebody to sell to you. What you're really banking for when you're sending these letters is, are you hitting them at the right time? So it's not necessarily even about, I mean, obviously you don't want to come off as, you know, arrogant or just a horrible person to work with. You want to be a genuine person, right? But you want to continually hit them every month, every quarter, so that when it is the right time, you're right there in their hands, right? Because that is when they make the decision, and sometimes they're going to hold on to your letter for months, if not years. I had a I had a group. Now this was, this was a specifically for leasing, like listing a property for lease. They called me 18 months after I sent them the letter, the first letter, because they were like, oh, you know, I tried to, we tried to lease it ourselves, like we kept your letter just in case, but we tried to lease it ourselves. It ourselves. It didn't work out. We didn't like it, and we're gonna hire you. Well, it's been six years. My team is still leasing that property. It's a three tennis strip center. My property management company is still managing that property. We have a great relationship with the owners. So, I mean, you think about it like from one letter, what could possibly happen, right? It didn't cost me hardly anything. Jared is also asking, what is the best way to find traffic counts? I usually go to the Department of Transportation and look at it from there, right? So, like, I'm in Tennessee, I'll go to T dot traffic counts, search that on Google, right? If you're in Texas, it's TX dot traffic counts, right? They they typically have all that, like, if you've ever been driving down the road and then you see these, like two black wires crossing the road that are relatively close to each other, that's typically what they're doing with those is getting traffic counts. Now that doesn't necessarily mean that the Department of Transportation is doing that. It could be somebody else doing a traffic count study. That's the easiest way to do it. If you actually have to run a traffic count study. It could be expensive, just depends, but that's what I would try and do if I were you. Drsia is saying, Hello, sir. I'm from India. I have a few questions to ask. Yeah, go for it. Dr Ask me whatever you got. That's what this is. What this is for. It's office hours. Ask your questions. Sometimes I tend to talk about myself too much. Apparently, Jay is saying, Do you think costar is necessary for starting out in multifamily? I'm concerned about finding leads for potential acquisitions. Jay, that's a good question. I mean, do I think that costar is necessary? Absolutely not. Absolutely not. I'm not a fan. Uh, my own personal experience with the company. However, they do have a lot of information and data when it comes to multi family, because they also own apartments.com. So you know, with regards to, like, getting started in multi family, it's probably a pretty good route to take, because they're probably. Going to have everything that you really need to be honest with you now, you could also go to your local tax records for free and pull every single apartment complex under 50 units, and then just start sending a mail like you don't need co star so, and I've found that just having a mailing address is the most powerful thing that you can have. So this what's going on, man? He's saying, congratulations. Vish is one of my Siri accelerator students. Good to see you, dude. Thanks for jumping in. Fred is saying, How often do you guys have coaching calls? That's a great question. So for the Siri accelerator mastermind, we have two calls a week, Mondays at 5:30pm Central Standard Time, and Thursdays at 11am Central Standard Time. And I did that so that you know whether you're working at w2 or you're full time in real estate, there is at least one call a week that hopefully you can make. And yeah, they're a lot of fun, man. I mean, I don't have an agenda for those. It's literally whatever the students want to dive into. So if my students have questions on like, how do I negotiate seller financing? That's what we're diving into. That call, Hey, I'm looking at this deal. Can you dive into the offering, memorandum, the underwriting whatever, with me and make sure that I'm doing things right? Cool. Let's do it. That's what we do. So it's fun. I mean, I genuinely enjoy doing that because, like, I said, like, it's iron sharpens iron. So the more that I'm doing that, the better I get at looking at deals, because we're doing it live. Joe, can you make more underwriting videos, car washes, iOS, flex, etc, I can, and I probably should. Man, that's funny. I'm glad that you like those. We haven't made the underwriting videos in a long, long time, and I don't know why I just, I just haven't really done it. So I mean, maybe I should do it. Maybe I should go live at some point and just do some more of those. Because, like, I've done that. I think the last one I did was a live stream quite a bit ago, to be honest with you, where I want to say it was, like, I don't know, underwriting something under $150,000 right? Like it was something crazy, because I was just like, you can find cheap commercial real estate. That doesn't necessarily mean it's gonna be a great investment, but you can, you know, if your objection is commercial real estate is too expensive, that's not true. And I do have a video where I underwrote something like, under $150,000 it's like, the the cheaper than the average home in America now. So, yeah, well, I'll work on it, Joe. We've got a lot of the books. It is just me here running this show, you know, and I'm, like, producing with my little my buttons over here. So that means that I have to come up with, you know, how we're gonna do things. But, I mean, the nice thing about that, like, is, if, I mean, honestly, I usually just go live and I'll just say, Hey, let's go find a deal. And Joe, as long as you jump in and say, I want to look at flex space. Cool. All right, we're going to underwrite flex space today. What city in America do we want to look at? And I'll show you guys my entire process. It's fun. Joe
is saying, Do you think iOS typically needs to be infill? Not necessarily at all. Actually, I was driving out. I mean, that's the great thing about it. You could be three hours out towards the middle of nowhere, and somebody's gonna have some sort of need. Now, that doesn't necessarily mean that it's a prudent investment unless you have a tenant in hand, because demand is obviously gonna be lower. But for example, you know, we have a family ranch about two hours west of Dallas. That's where we were this past week, and my dad has actually gotten very interested in investing in commercial real estate, so it's been fun talking to him about that. It's one of those things where it's like, I have a video on that. It's probably kind of weird for you to go watch that, since it's me, your son, but, you know, I have a video if you want to go watch that. So it's kind of funny, but we were probably an hour, hour and a half outside of Fort Worth, headed west, and there was a, like, 10,000 15,000 square foot flex building. And I told him, I pointed to it. I was like, that's what you need to build right. Like, out here, the land is cheaper, that thing is full. Like, the building was full, you could clearly tell, and it was brand new construction. I was like, that's what people want. Like, you're kind of far outside of town. But like in Texas, driving three hours is like a normal school commute, like, That's how far you drive to, you know, go hang out with your neighbor. So, like, being an hour and a half outside of Fort Worth is not a big deal at all. But yes, he's asking about, you know, does it matter if you're near a highway? Absolutely, highways really matter. Allison is saying, Hey, Tyler, great session last night, starting an annual ritual of an off site meeting with my controller for year in review and goal setting and planning for next year. Ally, love to hear it. Glad you liked the session last night. Had a lot of fun. That's a brilliant idea. Having an annual off site meeting with your controller for multiple reasons. I love off sites for multiple even if it's just you and one other employee, right, or one other team member. That is, that is critical, because one you guys get to kind of get away right from everything else. The reason that I love working out of my studio, don't tell my team this is but. Because they're not here, right? So you know, when Ali and her controller leave the office and go off site, nobody's going to be able to interrupt them. They're actually going to be able to sit down and talk and plan and make sure that everything is on track for their goals and where they want to take the company over the next year. So I love that. And also, you get some time to relax, right? I mean, we just got, I just got back from my EO forum retreat. We were down in Mexico, right? I mean, no, it wasn't like we were going to bars every night. We didn't even go to bars at all, but we it was just the fact that we were unplugging out of the US going to Mexico. We rented a compound so that we could just be by ourselves and work on our businesses. And it's phenomenal. Kyle is saying, What is your advice on buying commercial real estate where current leases are not keeping pace with rent? How do I update the lease rents if they weren't written well for increasing rents? Kyle, that's a good question. So if you're if you're buying a piece of property where the rent is under market, there's really not much that you can do unless the lease just says, Hey, landlord can raise the rent for whatever reason, right? Typically, these leases have locked in lease rates or locked in percent annual increases. And when I say locked in, that doesn't always necessarily mean it's like 3% per year. It could just be, you know, hey, it's going to go up on a percentage basis of the Consumer Price Index, right? So, I mean, if you had it tied to CPI over the last few years, my God, I'm quite a bit. So, which is funny, because, you know, I haven't seen leases tied to CPI in quite some time, but I would imagine over the past few years, that was actually probably a better way to have your leases structured instead of a fixed annual rental increase. But who knows? I'd have to sit down and run the math, but I bet it would be so if you're wanting to update those rents. I mean, here's the thing one, do not pay for the future value today, what a lot of sellers and a lot of brokers will try and do is say, hey, you know, leases are on your market. Once you are able to get those leases to X, Y and Z, you'll be able to get a 7% cap rate. But today you're paying like, a six. You're like, Well, why am I paying for the future value? Today I'm paying you for all the work that I'm then going to have to do to make it worth what you think it's going to be. You know what I mean? Like that to me, is always crazy. It's such an arrogant way of selling property. It just tells me that people have no idea what they're doing, right? Oh, okay, if I come in and raise rents 10% it'll be worth what I'm buying it for. That's cool. No, I'm paying what it's worth today. That's, I'm adamant about that. Unless there's some sort of reason, right? Unless there's, like, you know, it's, it's zoned for higher density, or there's, you know, future potential for something else, right? Like, then you can look at it differently. But if it's like, a straight up, like, single tenant, net lease deal, that's how I look at that. The only thing you can really do if you're in that situation, Kyle is kind of wait until those leases run out and then start to renegotiate them from there. So that's, that's kind of what I would recommend. I mean, it's, it's tough, right? I mean, that's the pros and cons of having long term leases, right? You get the stability out of it, but you might fall behind on market rents. And that's not always the worst thing, right? I mean, you know, I do want to, like, sometimes you can increase your net operating income on a property just by changing things operationally. You don't actually have to increase your gross revenue to increase your net revenue. So one thing to consider, Captain Kurt, what's going on, man, good to hear from you, dude. Hope everything is going well out west, and can't wait to hear more about your your project in Houston. But he's saying, closing out the year with my website, building some funnels and a drip campaign to attract new investors for flex space, building some lead magnets to educate pilots on why they should invest in commercial real estate, dude, if y'all, if y'all want some cool just like I'm a pilot, and I also invest in commercial real estate content. Go follow Captain Kurt. Kurt's a good buddy of mine. He filmed, actually, my my talk at an event for me. I mean, he's not a videographer. He's just a buddy of mine that happens to know how to work cameras. And he was like, dude, I'll film I'll film this for you. Flew out to Houston and filmed a talk that I gave out there so that he could also go check on his ground up flex space that he's doing. But dude's like, always catching private flights because he's the captain. So that's that's pretty sweet. Hope All's Well, dude, Robinson is saying good morning, Tyler and happy holidays. Any advice on buying a commercial condo as an investment? Ooh, commercial condos controversial, I typically say, and this is a blanket statement, and I hate to make blanket statements and anything in commercial real estate, somebody left a comment on one of my YouTube videos earlier. I kind of want to read this to you guys, because I was like, this is just so ridiculous. I shared it on Instagram, but they were like, flex space. Also comes with unreliable tenants, especially if you're in an area with a lot where there isn't a lot of growth, you're going to likely be evicting and negotiating with a lot of folks. I'm like that is a wild blanket statement to make, so I'm gonna do the same thing and make a blanket statement, but I don't like commercial condos as an investment. Now let's walk through all the caveats, why or why not? Maybe, if you're in New York City, you may not have a choice, and a commercial condo is fine, right? You just gotta maybe that's just the market. They make sense for owner occupants, right? If you are a business and you want to affordably buy your own space, a commercial condo is a great way to go. I just don't like somebody else that has no idea, probably what they're doing being the President of the HOA and telling me what I can and can't do with my property. Because let's be honest, people that have the time to be the president of the HOA are the people that have time to be the president of the HOA. It's not going to be you, and it's not going to be me, it's going to be somebody that's sitting around twiddling their thumbs all day that just wants to it's the first time that they've ever had control over anything. Man, another blanket statement, I get it, but man, has that proven to be true time and time again with many hos that I've seen, so that always bothers me. I mean, you're seeing some horror stories right now in Florida when it comes to commercial condos. And I mean, condos in general, let me not say commercial condos, but condos in general, because you're seeing some of these assessments, right, some of these condo groups, you know, they get in there and they're like, actually, you know, let's increase the amount of money that we'll have to pay anytime that there's an insurance claim, because we want to pay lower rates, right? Well, your deductible goes from 25,000 for a new roof to $250,000 for a new roof. And you know, now you're having to go do basically, a capital call, do an assessment on on every single unit in there, and now people are having to come up with money. So I just don't like that. If I've got to replace a roof, I'd rather do my own roof, right? That's just me. WW is saying, what are some of your big goals for 2025 that's a great question. Okay, so here it is. I want to work three days a week.
I don't know how the hell I'm going to do that, considering how much I've got going on, but I I'm already kind of an ass about my time, like I really don't mean to be, but I have to be. And so I know, I know some of y'all have reached out to me, and I'm sorry, you know, saying, hey, I want to hop on a call. I want to do this. I want to do that. Like, I just don't have the time. I don't have the time. And so, you know, really, what I've started telling people now is like, Hey, I would love to meet with you. I used to be able to, like, sit down and meet with people for coffee. Now it's like, I can only reserve that for mastermind members. And so what I'm doing now is, you know, hey, if you want to meet with me, I do a coffee meetup every other Thursday. You know we're doing, you know, this event and that event, and you can come and hang out there. I can't take calls. I just don't have time for it, unless it's like, some sort of thing like that. So I'm like, I'm getting more and more selfish about my time, which I would encourage every single one of you to do, every single person listening to this podcast, watching this on YouTube, you should be incredibly selfish with your time, unless it is actively moving forward. What you are trying to do, don't do stuff just to be nice to people, right? Like, I look back and I'm like, man, I've had hundreds of coffee meetings just because I was being nice. And I'm a nice person, I want to still be nice. But, like, also, you know, that's why I started doing office hours. I was like, I get asked the same five questions over and over again, how do I get into commercial real estate? How do I find investors? What type of commercial real estate should I buy first? And I was like, you know, what other people would love to hear this? So I'll just go live. I'll answer it, we'll record it, we'll send it out, right? And, you know, it's not gonna give the same answer every time, and the questions aren't asked the same way every time, either. So yeah, WW, that's a great question. Like, my big goal for 25 is to just work less. I want to. I mean, this is something I haven't really shared with you all before. I have chronic back pain. I think it's from playing football, and I also pulled my hip flexor in lacrosse. And I mean, hell, that was 16 years ago, man. And I still suffer from, like, horrific back pain sometimes. And so one thing that I would like to figure out this year is, is what I can do to fix that. The good news is it's not skeletal, it's muscular. So it's just a matter of balancing my hip muscles and whatever. So I don't know little things like that. I want to make sure that I don't have pain anymore. Vicky is saying, Hi, good morning. Tyler. Good morning, Vic, and thanks for being here. Refuel on Main is saying my 2025 goals are to finally renovate an adaptive reuse project. Love that I saw your YouTube video on commercial contractors, and I'm still stuck on financing the project. I plan to be my own tenant. Refuel, that is awesome. Congrats. I love adaptive reuse. I mean, we talk about it so much on this channel. We just had a video here recently on the alley and Charlotte, incredible adaptive reuse project. Highly recommend you go check that out if you haven't seen it already. And it's that was a that was a really cool, cool tour when we sat down with the developer, the architect, the brokers, and really kind of dove into that project, the as far as as far as financing the project. I mean, look, I don't know exactly what you're struggling with on the financing, whether that's debt or equity. If it's debt, call five to 10 different lenders. Most lenders right now want to be the guy lending on owner occupied businesses, because that's a great place to be if it's the equity side of things, I mean, hey, put together an offering memorandum and go out and pitch it to investors, right? And raise 25 to $50,000 at a time, right? There's a lot of you'd be surprised at how many people out there have 1025, $50,000 that they would like to invest. And if you give them that opportunity, especially as an owner occupant, it's a relatively lower risk type of way to invest in commercial real estate. Jeff is saying, I am in southwest Florida. I would assume that's what swfl means. I hope so. You mentioned recently you are cool on the area behind insurance costs to the to the lessee, but is there a lot of activity for flex, any thoughts, I don't know about Southwest Florida specifically, Jeff, yeah, I mean, look, Florida in general is really tough for me right now. There's, there's a lot of, like, really good metrics that are going on in those in those economies, like, within each city, within each Metro, right? There's a lot of metrics that you look at. You're like, Man, this really like checks the boxes. The problem, to me is that I think that climate issues are going to be the biggest disrupter for commercial real estate along the coast, and it's going, I mean, and honestly, the Coast isn't like the inland is not safe. Look at Ashland, right? I mean, Asheville. Asheville got absolutely just destroyed by a hurricane. Who would ever think that that would happen, right? So, I mean, I think, I think that we're going to see a lot of of heavier hitting climate disasters that will continue to increase insurance costs. And I think you'll see some insurance companies that will no longer be able to justify insuring Floridians or any coastal cities for that matter. And that means that premiums are just going to go up and go up and go up and now look, you could say, well, I've got a triple net lease. I don't have to worry about that. And I'm not saying you would say that, Joe. I'm just saying some people may think, Oh, well, if I've got a triple net lease, then I don't have to pay the insurance. So why does it matter? Your tenant has to pay for it, and that goes into the all in monthly cost that they're going to be looking at what they are renting when they're renting space from you, which means that if that insurance cost goes up, that's less in rent that they can pay you each month, right? So, something to consider, for sure, I think, I think flex space in general, gonna be very popular no matter kind of where you are in the country, right? As long as you're kind of in that, like the outskirts of town. I mean, the problem with flex space, man, is if you get hit by Hurricane, that stuff's gone, depending on what you build. But you know, hey, maybe, maybe you're willing to pay the insurance. I don't know. Cesar saying good morning. Tyler, would be cool to go over case studies of different lease structures like Dutch Brothers and their ground leases. Happy to do it. Yeah, if, if anybody listening wants to send me some leases that y'all want us to dive into and examine? Happy to do it. I mean, I'll redact the names, redact any private information, that way we don't have anything to worry about on that front. But, yeah, I mean, look, I've got some old corporate leases. Just because a lot of the stuff that like I have that's a corporate lease is pretty old. Like, for example, the Dollar General, that's a tenant in one of my properties. They've been there for like, 20 years, so probably not relevant anymore to what Dollar General is actively doing today. But yeah, I mean, hey, if you guys want to send in, I mean, just email office at the cobble group.com I'll pull them up in these office hours. Like, I'm happy to do that kind of run through them and give, give my thoughts. Be a lot of fun, guys. We're we're four, five minutes over today, I just wanted to make sure that I got to everybody's questions. Appreciate you all. We'll see y'all next Tuesday. Enjoy your week. I'll talk to you then you. This episode of the commercial real estate investor podcast is brought to you by my cre accelerator mastermind, where you'll get access to my step by step investment blueprint, essentially a library of resources on how to invest in commercial real estate. You'll get connected to a supportive community of other commercial real estate investors that are doing projects just like you. You'll get personalized coaching and feedback from me every step of the way. Go to www.crecentral.com to learn more you.
We're back from Thanksgiving week and going live at 8:30am CST for "office hours" to answer your questions about commercial real estate on the show. Let's hear what you'd like to know when it comes to brokerage, investment, and development!