Closing Out 2025 & Upcoming Projects (Office Hours)
This will be my FINAL Office Hours of the year since I'll be taking off for my 30 day sabbatical on December 15th. Let's dive into y'all's questions on commercial real estate and talk about getting ready for the new year.
Get commercial real estate coaching, courses, and community to jumpstart your investment journey over at CRE Central: www.crecentral.com
Key Takeaways:
Tyler is excited about setting up a new studio to create more in-depth, longer-form content on commercial real estate investing and development in 2025.
Tyler has been very busy recently, with several property transactions and projects, including selling a property with a 305% return, closing on a 105-unit self-storage facility, and developing a 215-unit self-storage facility.
Tyler is shifting his investment strategy to focus more on cash-flowing deals rather than just equity-focused projects.
Tyler prefers metrics like annualized cash-on-cash return and equity multiple over IRR when evaluating deals.
Tyler is not a fan of wholesaling commercial properties due to the challenges and costs involved.
Tyler advises against trying to transition from residential to commercial real estate by just building a larger residential portfolio, and instead suggests selling residential properties and using the proceeds for a commercial investment.
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. This is our final office hours of 2025 I'm going on sabbatical, and five days, I will be gone for 30 days, and I still haven't really figured out what I'm going to be working on, but whatever it is, it will be productive, even if that means I'm going to be sleeping for 12 hours a day, because apparently I need that now. Anyway, this is Office Hours. This is where we go into your questions about commercial real estate, whether that's investing, development, brokerage, management, whatever questions you have on commercial real estate and the entire process, it's your time to jump in. Get some coaching, ask some advice. Let's dive into whatever you have. We do this every Tuesday at 8:30am Central Standard Time. I will be picking it back up in January. So don't worry, this is not going away. But the question of the day, I do want to know, have you enjoyed office hours this year? Should we keep it going in 2025 it's a newer live stream, relatively so. The show is, you know, I guess going on its fifth year, this is something we started doing within the past 12 months, give or take. And I want to know is, Has this been helpful for you guys? Do you all enjoy jumping in and, you know, being able to ask questions about commercial real estate before we dive into y'all questions, let's get to a couple of updates from my past week, which has been a very busy week, obviously, getting ready for sabbatical. There's quite a bit going on around here. Just, I mean, not me answering emails. I'll tell you that I'm not I'm still not doing that, no matter what, but I did respond to like, 50 text messages yesterday. I plan to get to another round of those today. We fun. We've got a new studio set up. I'm looking at it right now, kind of across the room, pretty excited for that, because one thing that I am planning on doing more in 2025 is just shooting even more in depth, longer form content for you all on how to actually go about the process of investing and developing your own commercial properties. And so having a studio set up where I can literally press all the buttons to turn things on and just start talking and recording is going to make my life significantly easier. So that will that's pretty good. I'm looking forward to that. It's been a crazy month. This has actually been the busiest month that I think that I've had in the last two years. We sold a property, got a like 305% return, my partner and I on that. So not bad. For three years. I'll have to do a video breaking that one down here pretty soon. It was a little land flip, land entitlement and flap. We are under contract to sell another property on December 30. I'm supposed to close on a 105 unit self storage facility on December 31 I just put another property under contract this past week to build out a YouTube studio and event space, which I'll tell you guys more about here in a minute. And then we are working through our construction plans for a 215 unit self storage facility, indoor, climate controlled out in Chattanooga. So it has been a lot for those of you all that have been following me for a little while. I mean, we bought a bunch of stuff in 22 and then, or Yeah, 21 I think my last purchase was in 22 and we haven't bought anything since, and that's because interest rates went up. Deals weren't really there. I've still been looking, I just haven't found anything. And that's one thing that I would urge you guys be take your time finding the deals right. If you get into a bad deal, it's going to prevent you from doing a good one. So just take your time. Wait for the right deal to come along, and it'll pop up. It'll be there, it'll be just fine. So let's, let's talk about the YouTube studio. I'm pretty excited about this. So it's a piece of property that I've had my eyes on for a little while. It's here in East Nashville. It's about 4000 square feet, and it'll probably be a tear down and rebuild. So we're I'm talking to my contractor, my architect, about it right now, but basically I'm going to have one big open room where we could fit like 80 people that will also that will primarily serve as my YouTube studio, so live streams, video recordings, all of that kind of stuff. But whenever I have in person events or mastermind events here in Nashville, we'll actually be able to do it at a building that I own, instead of having to rent some sort of event space. So that's pretty sweet. And then we'll have another room beside that, almost the same size, that will have this like accordion dividing wall, so that it could be either another breakout room, if we want to have multiple speakers for these events, or. Or it could be a couple of smaller workshop rooms, which, which I think will be pretty cool. I'm really excited for that. It's got an event lawn in the back. It'd be really nice. So I'm really excited for that. We've kind of needed it for a little while. You know, there's nothing wrong with the current studio that I've got, but, I mean, hey, if I'm going to continue buying buildings, I might as well buy a building and do something that I want to want to do. So as far as like this, last past Saturday, went out to Chattanooga and did our self storage walk through with the city, which was pretty nice. So we're working on getting our plans finalized for that 215 unit project, and I I drove two hours out there for a 30 minute meeting and drove back. Do I have to do that? No, but I always like meeting in person. I think that it goes so much further. It's much more personal. Everybody really gets on the same page and gets to know you that much better, right? Instead of just having calls over the phone, right or over Google meet. So the city's working with us right now on scoping out some of the utilities to determine what we do and don't have what we'll have to figure out. And pretty excited to get that going. I mean, we got our approvals about, you know, a month ago, give or take, and so now we're just walking through the construction aspect of it, to make sure that we understand everything that we're going to have to to pull together in order to get a permit. So that's that's good, that that could end up being the best deal that I have ever done, wildly enough, when I ran the numbers on it. And since I sold that, that one land flip, and I'm selling another property this month, I might just pay cash for this self storage facility. When I ran the numbers on it, it ends up being about a 36.8% cash on cash return at stabilization, which Self Storage ends up stabilizing around like two and a half to three years. So a 36.8% cash on cash return is insane. I mean, that means in three years, we'll have our cash back. And, yeah, I don't know. I'm pretty excited about that. That could end up being one of the better cash flowing plays I've ever done, because most of the investments that I've done have been heavy equity increase plays, right? We come in, there's no cash flow. It needs a lot of work. We fix it up, we put tenants in place, and then we flip it on a cap rate, right? And so we create a lot of equity. We don't get a lot of cash flow. And so I'm starting to get to that point in my career where I'm like, You know what? I've created a lot of value for myself, but primarily my investors. I've created a lot of value for investors over the years. It's time for me to kind of start cashing out and taking some chips off the table. So that means putting some of my cash into deals that are going to cash flow for me personally, instead of creating equity value for investors. So I'm I'm not raising as much capital anymore as compared to what I used to, because now I'm kind of putting me first, which is kind of weird. But to be honest with you, like when I was going through the syndication process, I always I always, I mean, you have to put investors first. Like that is the entire structure of syndication is putting the investors first, and it's that's great, like, that's how it should be, because they're the ones giving you the capital. But after a certain extent, you make enough money and you put enough work in to where you start to realize I'm taking on a lot of risk and I'm not getting rewarded as much as I probably should. And if you start, you know, I mean, what I did was I started looking at these smaller deals, and I was like, huh, now I've got enough cash to where I can go and pay for these deals with one partner or no partners, and make as much, if not more money, than I did on some of the syndications that I did where I was taking all of this risk. So for those of you that are out there that are wondering, should I go raise capital to do my my first commercial real estate deal? Should I find investors? Absolutely, I think it's a great way to get started, right? Because I didn't have the money. I had no money when I was first getting started in this at all. I mean, I had to. I literally rolled my 3% commission in as the only equity into my first deal. I didn't have I had nothing. It was a great way for me to get started. I'm grateful for it, and I'll still raise capital. We'll still do some of those every now and then, because I just, I find them enjoyable, and also it's a great way to get people started in commercial real estate that don't want to do it full time. But now I'm just, you know, I mean, 2025, might be the year Tyler gets a little more selfish on his investments and starts really investing for him. I mean, honestly, it sounds weird to say, let's see, yesterday we shot for so long. I don't usually shoot YouTube videos for so long that I get brain dead. But yesterday I was like, I need to stand up and walk around
and then drink some water and wake up a little bit, because it can be very mentally draining sometimes thinking through because you've got to think. Think like we've recorded all of this stuff, but we haven't edited it, so I don't know the order in which it's in. So you're having to sit there and think through like, every little thing that you've said, Does this make sense with the context that we've given thus far? So it can be actually quite a lot of brain damage recording some of these, these YouTube videos, and we ended up shooting like final shots for four videos yesterday. And so that way, while I'm on sabbatical, we don't have to worry about YouTube content going out. We'll make sure that it continues on as always. So yeah, excited for the sabbatical. Not really sure exactly what I'm going to be doing. I've already started doing work around the house, which is, it was typically the time of the year when I really start doing that, because I start to have the downtime to do it. So, you know, we had a, this is hilarious. Like two months ago, I was out of town, and my girlfriend had also left town under the assumption that I was going to be back that night. Well, my flight got canceled coming back from Charlotte, North Carolina, and we have four dogs at the house, and so I didn't have a digital keypad on my door at the time. So I had to call one of my buddies and be like, Travis, dude, I need you to. Need you to go kick my back door in and let the dogs out. And at first he was like, he just started laughing. He was like, Wait, are you serious? I was like, yeah, no. I'm like, I'm being serious. I need you to go kick my back door in and and let the dogs out and me. He thought I was pranking him, which I completely get like, why would you ever asked somebody to go kick your back door in? We didn't have a key. We didn't have a key out. So I just it was a 30 inch wide door, and I just put in a I just fixed it. It's been two months. I mean, if that tells you at all how busy I am. I had basically put a piece of plywood over it. Was just like, forget it. We'll leave it until another time. But I came back with a 36 inch door, so I ended up having to reframe the wall and and redo some of the siding and stuff like that. So but it's a much nicer door. It's got glass in it. We can actually see out into the woods instead of just under the back porch. So pretty nice. I'll be working on things like that. All right, it's been 12 minutes, enough of me talking about myself. Let's dive into old school. Else questions, by the way, if you're just now joining us, question of the day, have you enjoyed office hours this year? That is this episode of the live streams. If you've enjoyed it, let me know. Should we keep this going in 2025 let me know your thoughts. John is saying, hey, Tower, thanks for doing this. What is your favorite asset class as a broker and also as an investor? John, I'm a weirdo man. I really don't care about asset classes. I talk trash on multifamily quite a bit, but that's simply because I think that it's overrated, and I don't see the returns in it right now, and I haven't, honestly, for six years. We started telling clients six years ago, hey, you could, you could get better returns looking at literally anything else other than multifamily right now. And the investors that that listen to us are doing incredibly well, really, really well. I've got, I've got some buddies that sold off all of their apartments back in 2018 and 2019 when I started telling them that they started buying triple net investments, and one of them in particular, like he travels full time with his family now, not something that he was able to do when he had a bunch of multifamily So, hey, sometimes I'm right. You know the Ryan Blair saying, yes, learning so much. Let's go. Glad to hear it, Ryan. These are, these are fun. I enjoy these because I get to talk a little bit about myself, which he doesn't like to talk about themselves. But to me, it's, it's a good opportunity to just answer your questions, right? I mean, it's tough. I can't have coffee with everybody. I can't take a phone call with everybody. But hey, if you can jump in, into the live chat and drop questions, let's, let's have at it. Let's have a conversation. Wheatley Casey is saying, This is my first welcome. Wheatley, we have a lot of fun in these you just, I guess you all just get to listen to me. I get to read all your comments, though. That's fun. Try. Stan is saying, How does this chain of career advancement sound? Residential Construction to apartment capex partner to ground up development firm. Is this a matter of scaling a construction company? Yeah. I mean, try, try Stan. I think that's, I mean, that could work. Why not residential construction to apartment construction to ground up development firm? I mean, here's the thing, there's a builder here in town, in Nashville, that got started as like a siding contractor back in the early 2010s and he from there, a couple of my buddies, who are developers, brought him in to start building houses ground up because he had learned all of the other trades and how all of that was supposed to work. Not that he was necessarily doing it, but he just understood how they operated. I. Started crushing building the homes, and then from there he started building his own homes. And then from there he moved into apartment, ground up apartment construction. And he's doing his own projects, raising capital, doing very, very well. So, yeah, I mean, I think it's great. I think I think there's so many different ways to make your entrance into commercial real estate. Fred is saying, I'm grateful that you are on here every week, dropping knowledge on us common folk. Thanks, brother. Well, Fred, first off, I'm a part of the common folk, so I appreciate that. But dude, happy to do it. I love I mean, as y'all can tell, I'm a nerd when it comes to commercial real estate, I just love talking about this stuff. Allison is saying, Love the office hours. Please keep it going. Thank you. Tyler, absolutely ally. Thanks for jumping on Ally's in the Siri accelerator mastermind. Always nice having y'all on here. I appreciate him. Cesar is saying helpful, dude, your office hours has helped me tremendously. I've shared this with my close friends and family that are interested in commercial real estate. Thank you for what you do, Cesar, thanks for doing that, man. I appreciate it. If you're liking this show, share with a friend. Go and tell them. Hey, if you want to learn about commercial real estate. Go listen to this dork talk about commercial real estate a lot. I mean, to be honest with you, the best way to learn is to fully immerse yourself. It's just like learning a language. Everything when I was getting into it, everything that I listened to, every podcast, every audio book, everything had to do with commercial real estate. It helps. Joel is saying first time here, it's unfortunate. It's the last one for the year, but we'll be running back in January also in East Nashville. Would love to connect. Joel, welcome to office hours. Man, happy to connect. Yes, I will be out for my sabbatical for the next 30 days. But if you want to shoot me a DM, looks like you're messaging me from Instagram. If you want to shoot me a DM on Instagram, happy to set up a coffee for some time in late January. I mean, here's the thing, I'm usually at retrograde coffee in the mornings, so chances are good. If y'all are ever in town and you stop at retrograde coffee at like seven, 7:30am you'll probably catch me so happy to do it. Jonathan is saying, Do you refinance these properties after value add? That's a good question. So it depends on the property, it depends on the asset, depends on the investors. There's so many cases in commercial real estate where I have to say that it depends, that I sometimes get tired of saying it depends. I should get that like tattooed on my forehead and just start pointing to it depends, because there's so many caveats to it. So for example, we the the 105 unit self storage facility that we're buying up in Madison, which is like five seven minutes from my office. That one we will likely refinance and buy out our investors. So that one we do plan to keep, right? It's in our backyard. There's a good story there. I am also developing the, or master planning, the largest development in the area, two blocks away, so I just know what's going to happen in 1015, 20 years there right now, there's other assets, like one that I had in Chattanooga. There's a nine story office tower that somebody just offered me a bunch of money on. And I was like, hell yeah, let's just go ahead and take it. You know, it was an opportunity zone deal, which meant that we raised a bunch of Oz capital for a 10 year hold, but we got an offer for the amount of returns that we wouldn't see for seven more years. So I looked at my investors, I said, Guys, we should take the chips off the table here and get this one rolling. So we did, and it was good move. So it depends on the deal. It really depends on the deal. Depends on where I think the future is, you know, and sometimes you can refinance and there's still a lot of value. Sometimes you look at it and you're like, I don't know. I'm kind of just tired of this project, right? I've noticed that with myself, like, I'm very creative when it comes to the types of commercial real estate that I do. So sometimes when I'm done with a project, like, I'm done with it, it might be the thing that, you know, everybody talks about, or whatever, but like, I'm done, I finished the project, time for me to move on to do something else. Kind of funny. Zamyn is saying, Do you wholesale commercial properties? I do not. Don't you can do it. I've seen people do it. It's really difficult. You can make good fees on it, but it's just not worth a lot of the time
put into it, in my opinion. Noah for George, love your stuff, man. Thank you, Noah. Love your comments. Appreciate you jumping in. It's fun. John is saying, Keep office hours, good man, I should like threaten to get rid of office hours at some point. You guys are jumping in here, really, saying that you love it. I'm all for it. Fred is saying, Just found you. This is my second time, and I love it. Well, Fred, thanks for joining us, man, it's, it's always fun. I love I love that I can simulcast this on YouTube, LinkedIn, Instagram, Twitter. You know, it's I get a lot of comments from Instagram and YouTube. I usually get the most views out of Twitter for whatever reason, and zero comments usually out of Twitter, which is kind of. Money. I don't know how that operates. I don't watch live streams on Twitter, but you know, there's a big commercial real estate community there. Chad, hi, thank you for doing this. When leasing out retail on new land, would you build a shell structure go from there, or do ground leases? Oh, man, it depends. So. Chad, it depends on kind of what your goals are, what the market's like, how big the parcel is, what else you've got going on around you, and what your financial status looks like, right? I mean, if you can go ahead and just build something on spec, you're probably going to do better than if you were going to go and trying to, like, a ground lease or a build the suit, simply because the ground leases or build a suit deals are few and far between. Those brands typically want to move pretty quickly. So look, if you're going for like, a Whataburger, right? You know, their rep is in Nashville. She's a really good friend of mine. If you're going for a Whataburger, yeah, you're gonna have to do a build a suit, right? Because they want their new type of concept. I would go and pitch it to them first, if that's something that you're considering doing. However, in my experience, it's almost always easier to just go ahead and build the strip center, prep it to have three, 510, tenants, however big it is, and just start leasing it out that way. That's that's the way that I prefer to operate. I mean, we've had build a suit deals where, like on the brokerage side, I had clients are like, I only want to do a build a suit. I will not build this on spec. And after like two or three years, nothing ever happened. Nothing ever happened. And look, we, we've, I mean, we've got, my brokers have deals that move in like 17 days. So, you know, it really just kind of depends on what you want to do. I'm not a fan though. Tyler B is saying, Hey, Tyler, I've been listening to your podcast for some time now, and I find them to be very informative. I appreciate that very kind of you. I am a newer commercial broker, and wanted to know what you think about CCIM. I love CCIM. I mean, I'm a big proponent of it. I tell people to go through CCIM all the time, 101 and 104 in my humble opinion, are by far the best classes, 102 and 103 are fine. I didn't really glean much out of them, but that's probably because I was an active commercial real estate broker at the time, like and I'd been doing it, I think I've been in commercial real estate for five or six years at the point when I took those so I just didn't have very many takeaways out of it. So I mean, yeah, look, I highly recommend going through CC. I am. I've completed all the classes. I just need to sit for the test so I can get my pen. I really should do it. I've got a new book coming out pretty soon. I guess it'd be pretty cool to have Tyler cobble come a cc im on it. But it's good. I mean, some of the best brokers in the industry are CC IMS. That's, I think that says it all right, let's see. Rhymes is saying, What are your favorite metrics to look at? IRR, cash on cash cap rates. Good question. Rhymes, I hate IRR. I really do. Maybe I'm weird, maybe I'm just not sophisticated enough. Maybe I'm not as highbrow as I should be when it comes to underwriting my deals, IRR is, is the, is it a is an investment metric that can be very easily manipulated. It really can be just depending on when, like, the timing of the delivery of cash back to investors impacts the IRR. So you could have a relatively mediocre deal that looks amazing based on how you kind of juice the IRR. So to me, the things that can't lie are the annualized cash on cash and the equity multiple. Now one thing I will say, annualized cash on cash is nice because it goes ahead and takes into account the time, right? So if I say you've got a 20% annualized cash on cash, you might make zero returns for five years, and then get 100% returns on your capital in year five, which means over that five year period, you average a 20% cash on cash return. I like that metric because it's way easier to understand than an IRR, right. So I think annualized cash on cash is actually probably the best metric. Equity multiple is pretty good too, though. It says for every dollar in how many dollars you get back. If you've got a two times equity multiple, that means for every $1 you put into a deal, you get $2 back, right? So that's those are. Those are kind of my favorites, right? Cap rates sometimes don't matter. I had somebody on Twitter that said that they were going to jump in and tell me why they think cap rates don't matter at all, or why comps don't matter whatsoever. So I'd be, I'd be curious to hear why comps don't matter in commercial real estate. Because they were like, I was like, Yeah, that's a hot take. Let's hear what you got to say. I haven't heard anything about anything back, so we'll see. Oh man. John is saying, if you could bypass brokerage and just go straight into investing, would you have a decent w2 that will help with funding? Yeah, oh yeah, of course. I mean, look, getting started as a commercial real estate broker is a great thing to. Do if you want to be a commercial real estate broker for your your full time income, right? Because you have to focus on commercial real estate brokerage full time to make any money out of it. You can't be, you know that person that gets their real estate license that sells two homes a year because, you know, friends call you to do it right? Like Commercial Real Estate doesn't operate like that. You have to actually be treating it like a full time job. So if it's not a full time job for you, there's nothing necessarily about commercial real estate brokerage that's going to make you a better investor, other than just understanding how to find tenants and how to find deals. Those are both great skill sets to have, but you can also learn those without having to spend full time work hours as a commercial real estate broker. So I think it depends. I mean, I highly recommend it. It was the best thing that I could have done. Maybe I'm biased because I started off as a broker, but I think that it was a great way to get started in commercial real estate. Isabella, what's going on? Good to see you in here. Isabella, saying, Thanks for doing office hours. You've answered a lot of questions for me. Thanks. Tyler, absolutely. Isabella happy to do it. Times. Masquerade is saying, what's the simplest way to start better residential first? Here's the thing. Times, I don't think that residential is gonna help you, right? I mean, maybe you can get better at residential real estate investing, but at the end of the day, the way that you find deals, the people that you have to talk to, the way that you're funding these deals, the way that you're operating them, are completely different. So if you want to start investing in commercial real estate, I don't think that building up a bigger residential portfolio is going to be any better for you. I help a lot of people transition from residential to commercial real estate, and typically, what we're doing is we're selling off all of their residential portfolio, doing a 1031, exchange into their first commercial property. And once you've gone through that process, and you've seen what it's like to acquire one, most people have friends that do residential real estate that would love to invest with you, right? Because they're, you know, they own 2345, homes. They want to get into commercial real estate, but they don't know how to do it well. Now you're the expert, because you've gone through the process. You've bought your first commercial property. You can show them how to do it. So that's typically what we recommend for our students, is, you know, build up that network of other investors and be the first person to buy commercial property, because then you can all you have to do is be one step ahead of them to start showing them how to how to get started in commercial Clayton is saying, not really about cre but I'm looking to break into real estate, private equity. And was wondering your thoughts, good, bad, and will it correlate with commercial real estate? Yeah. I mean, absolutely it will, right? Because real estate, private equity, you're going to be running the numbers, underwriting, looking for deals, networking, all that kind of stuff. I think it's a great way to get started private equity, I think in general, I don't think that real estate, private equity is necessarily any different from any other type of private equity when it comes to pros and cons. I think you're going to have a lot of ego. I think you're going to have a lot of politics to play when you get into these private equity firms, and so as long as you're willing and able to navigate that. I think it would be just fine, right? Starting off in private equity for real estate is pretty interesting, because you're all automatically playing in a much bigger ball field. I think it's, I guess, cool, you know, and those guys get paid pretty well, so why not? And plus, you'll meet a ton of investors along the way and people that find you deals. So if you do eventually want to go do your own thing. I think it's a great way to get started. Robinson is saying good morning to you. Usually make the seller pay for the 20 1e when you are going to buy a commercial property. Robinson, I am not sure what a 20 1e is. Maybe I'm an idiot, but if you don't mind, jump in the comments and let me know what a 21
he is. Sean is saying. What are your thoughts on wholesaling commercial properties? Man, I'm getting a lot of questions on wholesaling commercial properties this morning. Not a fan, just because I think it's really tough. I think you can make really good fees on it. But here's the thing, when it comes to wholesaling commercial real estate, if you are dropping you're putting these properties under contract, then you've got to start the due diligence. You have to start paying like, if you want to successfully wholesale, you've actually got to start paying for the survey, for the environmental, all that kind of stuff. Because anybody coming in is going to have basically 90 days. No matter how long you've had it under contract, it's going to take them 90 days to close it, because they Robinson saying environmental, okay, so yeah, if it does, the seller pay for the environmental, going to buy a commercial property. Okay, let me, let me finish my thought here on wholesaling. So I mean, they're still gonna have to come in and do their due diligence no matter what, unless they're paying cash, and if they're paying cash, they better be getting a hell of a deal, right? So that's just why I'm not a fan of wholesaling commercial real estate. You've really got to have a hell of a list of buyers, and they have to be willing to move fast, and that's just typically not how commercial real estate works. So okay, going back to Robin's question about making the seller pay for environmental what? Going to buy a commercial property, a seller will tell you to pound sand if you ask them to pay for a phase one environmental, if, if it comes back and recommends a phase two, typically, you can negotiate for a seller to pay for a phase two environmental, because now they know that they have to do a phase two on their property, which means that anybody that they come across, they will have to disclose that they know there are environmental issues with the property. So that's I mean, that being said, I've also paid for phase twos on properties that I wanted to buy. So it really kind of just depends. It's always up for negotiation. But you know, in reality, the seller should pay it you've got a contaminated property. Sometimes, what I'll do, like, there's always a way to negotiate it right? Like, hey, I, as the buyer, will pay that, but you're going to give me a credit at closing, when we close on it, things like that you could do. Ryan is saying random question, after how long of doing this, did you start seeing success? Ryan, what? What specifically is this, doing what? Doing these live streams, doing commercial real estate, doing brokerage, doing investment. Let me know. Happy to happy to answer that. Joey is saying, Tyler, what are your thoughts on indoor sport facilities? Examples? Pickleball. Indoor facilities becoming a trend here in states like Colorado, Wyoming, Montana. Thoughts on cost. ROI ways to go about funding. So Joey, I will have a better answer for you here pretty soon. We're actually having a call this morning with a group that does research into markets to determine whether or not you should do these sports facilities, because we are looking at doing a four court basketball court out at peerless mill in Chattanooga, where we could do basketball tournaments, volleyball tournaments, pickleball tournaments, all the above, right? So there's a lot of opportunity there. I think it just depends on exactly how you set it up, right? I mean, the thing is, like, if you've got people that are willing to sign a lease and operate those facilities for you. Go for it. I do not want to start a business. I do not want to run the business. John is saying, Why do you prefer commercial real estate over residential as an investment standpoint? Oh, John, we do not have enough time. Unfortunately, commercial real estate Trumps residential real estate in every single aspect. And I will fight anybody on that you can get better cash on cash returns, you can get better deals, you can get better tenants, you can get better tax advantages. I mean, there's so many reasons that it's better. And at the end of the day, the biggest thing for me and the one reason that commercial will always be better than residential, and there is no discussion around this, I, as a commercial landlord, will never have to evict a single mother and her children because they can't afford to pay rent to stay in that place. I won't deal with that. It's not a thing that I will touch with a 10 foot pole, because I'm a bleeding heart human being. I would just say stay, just we'll figure it out. And that's not good from an investment perspective, so I'm not going to put myself in that position. To put myself in that position. North maybe is saying I have a multi four commercial building downtown small town of 30,000 office space just isn't selling on upper floors. Any thoughts or tips on getting these vacant upper floor spaces filled? I mean, if you just want them filled, maybe you could give them away for free. If you've got a small town, I mean, look, I'm kind of being facetious, but, I mean, look, if you've got a small town of 30,000 people, and your upper floors of office space are not getting filled, it's probably because there's not a lot of demand for office space in that area, right? So can what can you convert that to? Could it become an event venue? Could it become apartment lofts. Could it become, you know? I mean, literally anything else, right? I mean, could it be becoming like a nice restaurant, right? I mean, there's got to be something else that that could become. I would start looking at conversion opportunities, because office space in in smaller markets, I'm just not seeing it. I'm not seeing the demand. I mean, hell, look, you can even convert it into indoor, climate controlled self storage, even if it's 20 units, right, probably better than doing office space, and it's not going to be that expensive. So something to keep in mind, guys, we are, like, five minutes over. I, you know, I wanted to, I wanted to make sure that we got to all your your questions, since this is the last one of the year, appreciate you guys for joining me. I really do appreciate all of the kind words for the office hours. We will keep these going. If you enjoy this, make sure to show me like the video. Leave a comment if you're listening on the podcast on Apple, iTunes or Spotify, leave us a review. Happy 2024 I'll see you guys in 2025 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.
This will be my FINAL Office Hours of the year since I'll be taking off for my 30 day sabbatical on December 15th. Let's dive into y'all's questions on commercial real estate and talk about getting ready for the new year.