How to Invest in Commercial Real Estate

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

How to Invest in Commercial Real Estate episodes

June 01, 2021Episode #033 - How to find good COMMERCIAL REAL ESTATE investment opportunities and how to vet them!
At the end of the day most people just want a safe outlet to invest in commercial real estate. Today our hosts Brian Duck and Braden Cheek from The Criterion Fund review how you can find sponsors or companies to manage your real estate investments!
Topics discussed:
Looking for the opportunity to invest passively in commercial real estate? How do you even start trying to find somewhere or someone to manage your investment?
Don't be afraid to ask around to try and find the best opportunity to invest in Commercial Real Estate. You should be able to ask your banker, attorney, friends, family, and colleagues. You should be able to get several recommendations from there fairly easy.
Once you find some potential candidates you need to be prepared to ask some tough questions to make sure they will be good stewards of your money.
ASK ABOUT THE FAILURES! You learn way more from the failures than you do the successes.
Where is the money coming from? Do they have "sticky" investors and lenders? Ask around and make sure they have a good reputation.
Ask who their Attorney is or who is representing "the deal". Each and every deal should have a set of documents that is reviewed by legal counsel.
*Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!**
19 min
May 17, 2021Episode #032 - How to find MILLIONS of dollars on Google for your Commercial Real Estate Deal!
Finding Debt and Equity for your commercial real estate deal is probably the biggest thing keeping more people from doing it. Today we have special guest Andrew Thelen from The Woodmont Company along with our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity reviewing how simple it can really be finding debt and equity relationships for Commercial Real Estate Investments.
Topics discussed:
Andrew Thelen from The Woodmont Company - Intro on Assistant VP of Capital Markets.
Can you really build a $5,000,000 private equity relationship starting from Google? YES! Google + Effort = Knowledge. Learn how to cold call. It may just fund all of your deals.
The story of the lost $8,000,000 - Like we have said numerous times the deal of the decade comes around once a week. You just have to act on it!
If you don't have the previous experience to raise the money yourself, find yourself a partner to use their experience in exchange for a piece of the deal! Most sponsors would say yes. After all, its FREE for them if the deal is good.
How to find debt and equity relationships out of your market!
*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
https://Woodmont.com
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
14 min
May 04, 2021Episode #031 - Building Relationships and Adding Value in Commercial Real Estate w/ Grant Gary
Have you ever wondered how the big CRE firms get their business? It may be as simple as building relationships and adding value where you can. Today we have special guest Grant Gary from The Woodmont Company along with our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over how to win in the retail commercial real estate space.
Topics discussed:
Grant Gary from The Woodmont Company - Intro and Background into Woodmont. - Learn to be apart of the deal and be willing to work for next to nothing to learn.
Asset Management - Lenders and Special Services aren't typically in the business of running the real estate on their books. Woodmont adds value being an operator of over 26,000,000 sq' in 26 states across the country. The special servicer feels much more comfortable having someone like Woodmont managing their asset given their experience and current portfolio.
Acquisition Strategy - Learn to chase deals where YOU CAN ADD VALUE.
Learning to redevelop or repurpose old concepts that are no longer viable leads to potential massive upside.
Sample of Adding Value - Decreasing the amount of parking and creating Pads to create more traffic and cross shopping of customers. If done correctly this could have MASSIVE upside.
*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
https://Woodmont.com
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
To sign up for our exclusive investor list, click below.
https://www.TheCriterionFund.com/Join-Our-Investor-List
15 min
April 16, 2021Episode #030 - Evaluating HOW and WHEN to Refinance in Commercial Real Estate Investing!
When you realize that the majority of the capital stack (where the money is coming from; bank debt, investor equity, sponsor equity, etc.) is typically coming from some sort of debt instrument you start to focus on how to use it to your advantage. Today we have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over how you can payoff all of your investors, keep the asset, and keep the property potentially forever.
Topics discussed:
Different Types of Debt - Non-recourse vs recourse bank debt vs life insurance debt vs CMBS debt. They each have pros and cons.
Why to refinance? Aside from rate there is multiple reasons to evaluate a refinance. Cashing out on a substantial increase in NOI, extending amortization, dropping/lowering the personal guaranty on the deal, returning the investor equity, etc.
Understanding the value of LEVERAGE.
Is borrowing money a taxable event? Is borrowing money taxed as income?
Understanding how the debt instrument you put on your property can effect your sale.
Always be think about refinancing.
*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
21 min
April 06, 2021Episode #029 - How to think outside the box to fund your first Real Estate Deal!
Most people that are wanting to get started investing in commercial real estate typically have the same problem - they need money. Today we have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over different ways you can think outside the box to get your FIRST REAL ESTATE DEAL FUNDED!
Topics discussed:
1.Most people will not be able to save enough money for long enough to have enough money to acquire their first deal. You have to be willing to think outside the box to get the first deal or two done.
Putting debt on a property while in contract vs. putting debt on it after you already own it free and clear.
"Equity Farming" - Going from one house, to two houses, to an apartment complex. How to constantly scale your portfolio with cash out refinances.
Finding the CRE Deal or "Opportunity to invest" is way harder than finding the money for the deal. A great deal will always be funded if you can get it in front of the right people.
Learning how to package up your first investment offering to make it EASY for your LP investors.
Owner Carry? This could be one of the best ways for beginners to start.
*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
24 min
March 24, 2021Episode #028 - Starting your DEVELOPMENT - You have a piece of land and an idea, What now?
Today we have Tyler Detring with Ascend Construction breaking down when the best time to involve your general contractor when you are doing your first development. We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity along with Tyler Detring reviewing the best way to start your first development.
Topics discussed:
You have a piece of land you want to develop and you probably have an idea of what you want to do, but when do you bring in a general contractor?
How do you find your General Contractor or GC?
What questions do you need to be asking your GC when interviewing them for your job.
What are the different types of ways a GC contracts with a Developer to build your building? Cost +, Fixed Price, Design Build, etc..
Learning how to mitigate your risk by making relationships with your GC and Architect.
Make sure you trust your GC. Once the contract is signed and the work has started, you are in it for the long haul.
*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:
https://AscendOK.com
Invest.HowToInvestInCRE.com
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
March 16, 2021Episode #027 - How did COVID affect Commercial Real Estate? - w/ Jason Kennon from Case & Associates
On today's episode we have Jason Kennon from Case & Associates, w/ over $2B+ in CRE assets, reviewing how COVID-19 affected the Retail, Industrial, and office segments of their commercial real estate portfolio. We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity along with Jason Kennon reviewing how each asset class preformed in 2020.
Topics discussed:
Managing Properties During Covid - Trying to gauge tenants comfort levels and fears.
Local Bank Debt - Find a local bank lender who is willing to work with you. Full-Recourse bank debt can sometimes be scary, but they are typically willing to roll up their sleeves and work with you, compared to Non-recourse lenders that typically don't care.
How restaurants became more efficient in order to stay in business during COVID-19. Moving to online ordering was a necessity to stay in business.
Acquisition Mode - We are all ready to get out and start buying again. Will this economic dip be the time where you double down and expand?
How are you underwriting to purchase properties? CASH-ON-CASH!
Multi-Family Development vs. other asset classes.
Links mentioned in this episode:
https://www.CaseUSA.com
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://thecriterionfund.appfolio.com/im/investor/contact-us
30 min
March 09, 2021Episode #026 - How to Evaluate a Commercial Real Estate Deal in 10-15 Minutes or less!
How do you find the needle in the haystack? You have to be underwriting, or looking, at 50-100+ deals per week sometimes. You have to find a way to quickly evaluate the deals. We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over our basic criteria to underwrite deals in 10-15 minutes.
Topics discussed:
Cap Rate - You can narrow down the range fairly quickly with setting a cap rate criteria.
LOCATION. LOCATION. LOCATION. - Traffic Counts, Jobs, Median Income, etc. are all key indicators to a great location.
Where are the rents? Are they higher, lower or at market rate? If you have lower than market rents this could leave you with massive potential upside.
DEBT - Can you get it? Have you talked to your lender about the property yet? It might be best to run the property by your lender before you place your offer!
How will your investors feel? Will they invest? Does it make enough money for the LP (Limited Partners)?
*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:
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://thecriterionfund.appfolio.com/im/investor/contact-us
22 min
March 04, 2021Episode #025 - Entity Structure in Commercial Real Estate - How to form a LLC
On today's episode we go over basic entity structure in commercial real estate and how to form a LLC (Limited Liability Company). We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over how we structure our CRE entities.
Topics discussed:
Why do you need a LLC?
Why is a LLC our preferred entity vs. a S-Corp or a C-Corp.
How to form a LLC?
How to get your FEIN?
how is your LLC taxed?
*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:
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://thecriterionfund.appfolio.com/im/investor/contact-us
19 min
February 27, 2021Episode #024 - Don't forget the GAME you're playing!
On this Episode of How to Invest in Commercial Real Estate we have Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over the importance of not forgetting the “GAME” you are playing.
Topics Discussed
We are all playing “The Game” by going to work every day to make money.
Sometimes people forget what game they are playing. They focus purely on their job, i.e. being a good accountant or becoming a good project manager, etc.
They work so hard on their company's business that they lose site of why they are there in the first place - making money for themselves.
Develop a side hustle where you can make money playing a different game.
Choose a game that actually gives you a chance to win the game and ultimately quit the game.
Commercial real estate is a game that you can play part time and gives a chance to WIN BIG!
*Be Sure to check us out on #Spotify and #ApplePodcasts for the Audio version of today's episode!**
https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce
https://podcasts.apple.com/.../how-to.../id1543470290...
Links mentioned in this episode:
Invest.HowToInvestInCRE.com
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive #investor list, click below.
https://thecriterionfund.appfolio.com/im/investor/contact-us
12 min