How to Invest in Commercial Real Estate

By Criterion, Braden Cheek, Brian Duck, Joel ThompsonBusiness Investing

How to Invest in Commercial Real Estate episodes

December 09, 2021Episode #043 - Understand the POWER of CASH FLOW in Commercial Real Estate!
"Never take your eyes off the cash flow because it's the life blood of business." - Richard Branson
Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review why cash flow is one of the most powerful benefits of investing in commercial real estate.
Topics discussed:
Cash FLOW is King - Investors love getting quarterly cash flow. It is the ultimate peace of mind when it comes to monitoring your investment. Investors are also able to use this cash flow to reinvest somewhere else.
Quarterly Cash Flow - We sent out over $700,000 in distributions to our investors from the cash flow of our portfolio.
How to evaluate quarterly distributions. - Typically just the profit made by that property in that quarter.
Distributions do not = taxable income. You will get a K-1 showing your taxable income which is offset by depreciation and various other expenses.
Learn to find tax favorable investment classes like Real Estate.
Convert earned income into passive income.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvq...
https://podcasts.apple.com/us/podcast...
Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://www.thecriterionfund.com/join-our-investor-list
18 min
October 29, 2021Episode #042 - Five Creative Ways to Make Big Gains in Commercial Real Estate!
"Opportunity is missed by most people because it is dressed in overalls and looks like work." – Thomas Edison
Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review some of the most creative ways to make money in Commercial Real Estate.
Topics discussed:
Creative ways to monetize over parked shopping centers. 0.5 Acres of excess land could be worth Millions!
Look for under market rents where you can not only get 2%-3% annual rent growth to 10%-20% rent growth because the rent is so under market.
Buying on auction platforms. Sometimes it is a bit of a hassle and a higher barrier to entry, but sometimes you can find amazing deals because of the lack of competition.
Looking for Major Rehab or Foreclosures.
Buying in Markets that are up in coming to potentially realize major cap rate compression.
Timing when and how you refinance!
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
25 min
October 18, 2021What the F**K is Holding You Back?! - How to get where you want to in LIFE and in CRE - Episode #041
Whatever Your Mind Can Conceive and Believe, It Can Achieve.” – Napoleon Hill
Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review how you can set your goals to make sure they are achievable. Step #1 - Decide what you want in this life. Step #2 - Go and DO IT!
Topics discussed:
Decide what you want to do and actually go and do it. Don't be afraid of failure.
Look at who you are surrounding yourself with. Do these people have what you want out of life? If not, you might have to get some new people to hang out with.
Lies that we tell ourselves: #1 You don't have time! - You always have time for what is important. Make the time to make it happen.
What you do in your free time will ABSOLUTELY impact your life wether you want it to or not.
Lies that we tell ourselves: #2 You don't have enough MONEY! - You don't need your own money. Get a great plan together and get some O.P.M. (Other Peoples Money).
Find a mentor to teach and encourage you along the way. It will be a long path and you will have to dig down and eventually find your WHY to keep your going when times get tough.
Be more afraid of being average instead of being afraid of failure.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
16 min
September 09, 2021 Episode #040 - Quick and Dirty Underwriting to FIND the one you might actually BUY - LIVE REACTION!
Ugly? - PASS; Cap Rate too low? - NEXT; Purchase Price too high? - ONTO THE NEXT; Horrible Location? - KEEP LOOKING; Not Enough Traffic Counts? - NOT A CHANCE; 2nd Story Retail - FORGET ABOUT IT!
Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review why you should create an investment criteria and learn to stick to it! To find the deals that you will actually buy you will need to look at a TON OF DEALS! You will have to learn quick and dirty underwriting in order to efficiently evaluate deals and decide which ones to spend more time on!
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
25 min
August 25, 2021Episode #039 - FAQ's Review - How to NOT GET SCAMMED Investing in Commercial Real Estate
Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review the most Frequently Asked Questions we receive from people getting started investing in commercial real estate.
Topics discussed:
What are you actually investing in? A REIT? A LLC? - When you direct invest in Real Estate through an LLC you receive all of the tax advantages of actually owning the real estate compared to a REIT where you are just investing in a company that owns real estate.
What is a typical or minimum investment amount?
Should you try and take all of your allocated investment money and try and go buy a smaller CRE deal yourself? When investing with us you can typically get a bigger, nicer, better performing asset and diversify over 5-10 deals with the same amount of money.
How and when do I receive my returns or distributions?
Who can invest? Do I have to be an Accredited Investor?
6.Can you use IRA or 401(k) accounts? In short - YES!
How will I handle this on my taxes?
Are you investing in your own deals?
Who is signing or guarantying the debt? What is the recourse if the investment goes south?
How do you get compensated from this?
Explaining preferred returns and how they can protect the LP's and incentivize the GP.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.TheCriterionFund.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
23 min
August 16, 2021Episode #038 - How to LEGALLY Setup your Commercial Real Estate Investment Offering w/ Tom Hutchison
Have you ever wondered how you can legally setup a company to raise money from investors and then use that money to invest in commercial real estate? Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund along with Tom Hutchison from GableGotwals in Tulsa, OK explain how easy it can be to set up these companies and stay compliant with the SEC.
Topics discussed:
Tom Hutchison Introduction - GableGotwals Shareholder; Transactional Law Specialist.
How to form an entity in any state in the U.S.- Sometimes can be completed within the same day as filing, depending on your state. What type of entity is best for you? What happens if I accidentally file as the wrong entity type?
Do you have an Operating Agreement for your Entity? That is almost just as important as the entity itself.
USE AN ATTORNEY!
Be careful that you are staying compliant with the SEC when raising money from investors. Keep your legal counsel in the loop on your business plan and when and where the funds from the deal are coming from.
6.Disclose. Disclose. Disclose. The Purpose of our 103 page PPM is to disclose everything possible we know about the deal and the complete business plan.
You get to write the rules or bylaws of your operating agreement. Why break the rules when you get to write them?
Fun Example of why you should use legal counsel on EVERY SINGLE COMMERCIAL REAL ESTATE deal you do.
Pro Tip - Put your contract deadlines in your calendar. These trip people up on their contracts more than anything.
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/fHhKrxrPirc
Links mentioned in this episode:
https://www.GableLaw.com/Attorneys-all/Thomas-J-Hutchison/
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
20 min
July 29, 2021Episode #037 - How to get into Commercial Real Estate Development w/ Josh Chesney from Cyntergy
If I told you that every 1 out of 10 commercial real estate developments actually gets built would you believe me? Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund along with Josh Chesney from Cyntergy in Tulsa, OK explain how to keep your development alive and actually make it to construction and ultimately completion!
Topics discussed:
Josh Chesney Intro - Director of Business Development, Architect and Principle at Cyntergy.(https://www.cyntergy.com)
Getting a practical Conceptual Design, or the first pass of the design, as early as possible from your architect.
Keeping all of the Architectural Disciplines "in house". - Being able to have all of the different disciplines working in the same company is very convenient and way more thorough.
Getting your "GC" or Contractor engaged as early as possible. There is no point in designing a building that will never be built. You will just end up with an insanely expensive set of documents. The GC should be estimating costs all the way through the design process.
Architectural Tip - Stay away from proprietary systems!
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.Cyntergy.com
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
19 min
July 22, 2021Episode #036 - The Power of 3%-4% annual RENT GROWTH in Commercial Real Estate
Have you ever wondered how to make an easy $1,000,000 in commercial real estate? Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund how you can make millions of dollars in commercial real estate from the compounding nature of Rent Growth.
Topics discussed:
How basic annual rent increases can add up to millions of dollars in value on your commercial real estate property.
Basic Example on how to use cap rates to evaluate the value of income in most commercial real estate classes. On a 6% cap rate sale every dollar of income is worth $16 for the buyer.
The power of a high number of units in an apartment complex can add up vs one single family rent home that you might own.
How you could potentially make a 50%+ return on your investment by understanding how to correctly model rent growth in various different asset classes and markets.
Reviewing how you can realize income growth with Capital Expenditure dollars being spent on the property that far exceed the actual value of the dollars spent. (i.e. you could potentially spend $1,000,000 to get $3,000,000 in future potential value.)
Understanding Modeling - This is what will win you deals and make you money!
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
16 min
July 09, 2021Episode #035 - The Best Kept Secret of ALL TIME! Are you INVESTING in COMMERCIAL REAL ESTATE?!
Do you have Real Estate included in your investing portfolio? It may just be the best kept secret of all time. Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund release how you can get amazing, cash-flowing, real estate assets in your portfolio.
Topics discussed:
Stability - Avoid the volatility of so many investment sectors and sleep well at night knowing your real estate is appreciating every day.
Reinvesting quarterly cash distributions. We typically pay out 10%-12% distributions in cash that allow you to reinvest that cash faster.
Preferred Returns - The Limited Partners or Investors typically get the first 7%-8% that the investment makes. If there is a massive hit in cash flow typically the sponsor is taking the hit on THEIR returns. Not yours.
CASH FLOW - Make Investments that pay out regular cash flow.
Why Investing in Real Estate is one of the best hedges against inflation.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
17 min
June 25, 2021Episode #034 - How Commercial Leases and Guaranties are Structured and WHY?!
At the end of the day most people just want a safe outlet to invest in commercial real estate. Today our hosts Brian Duck, Braden Cheek & Joel Thompson from The Criterion Fund review how most commercial leases are structured and why.
Topics discussed:
How Commercial Leases are Structured.
Different Types of Credit guaranteeing the lease. National, Regional & Local.
3.The Value of a national credit tenant. Typically a publicly traded company where you can easily validate sales and strength of the tenant's financials.
Pro's and Con's of National Tenants vs. Local Tenants vs. Regional Tenants.
Pro's and Con's of Local Credit Tenant Deals.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200
Links mentioned in this episode:
www.HowToInvestInCRE.TV
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
19 min