How to Invest in Commercial Real Estate

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

How to Invest in Commercial Real Estate episodes

February 23, 2021Episode #023 - A Basic Introduction to Internal Rate of Return or IRR in Commercial Real Estate!
On today's episode we go over the basics of using the Internal Rate of Return or IRR metric in evaluating commercial real estate investment. We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over how we use IRR and how many investors use it to compare different investments.
Topics discussed:
Defining Internal Rate of Return or "IRR": The internal rate of return is a discount rate that makes the net present value (NPV) of all of the cash flows from the investment equal to zero.
Why do we use IRR as a tool to evaluate commercial real estate?
Why would you take a lower IRR investment?
What IRR's are commercial real estate sponsors underwriting to in the market today?
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/YRlM1MrcQoM
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
18 min
February 19, 2021Episode #022 - Underwriting Commercial Real Estate - Free Underwriting / Due Diligence Checklist!
DDChecklist.HowToInvestInCRE.com - Download our FREE Due Diligence Checklist Today!
How to understand due diligence from both an Investors Perspective and someone trying to do it themselves.
Topics discussed:
How to get from the signed contract or PSA (Purchase & Sales Agreement) to the closing table!
Deal Closer / Title Company - Invaluable Asset to you team. $300 - $500
Attorney or Legal Team - Crucial when starting in Commercial Real Estate - $3,000 - $15,000
Property Management Company - HIRE ONE!
Who is the Lender? They typically have the majority of the Capital Stack so it's an important relationship to have.
Learn from your Due Diligence Mistakes! You will get better over time!
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/Zux6Fp4UiSI
Links mentioned in this episode:
DDCheckList.HowToInvestInCRE.com
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
21 min
February 17, 2021Episode #021 - What your Property Manager DOES NOT DO for your Commercial Real Estate Investment!
On today's episode we have Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over everything your property manager does not do! Today we dive deep on what YOU as an Asset Manager will be doing on the day-to-day for your commercial real estate investments.
Topics discussed:
Assuming you've hired a third party property manager there are still things that will need done.
Property Taxes and Insurance - Who handles this?
Income Taxes and Annual Tax Filing - You will have to have an accountant!!
Do you have investors? Someone will have to manage those relationships, send out property updates and distributions!
Lawsuits? It could definitely happen!
Negotiating Leases and Lease Renewals.
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/axAU8W5VK4w
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
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
February 14, 2021Episode #020 - Get Comfortable Being Uncomfortable and Start Taking Action!
On today's episode we have Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity reviewing why you need to be taking action today! Knowledge without application is meaningless!
Topics discussed:
S**t Happens! Be Prepared for something to go wrong.
Be prepared to "burn the boats" and go all in!
Be prepared to partner with someone! It helps to have someone to rely on and hold each other accountable.
You have to be able to deal with the risks!
Do you have the fear of loosing money? The fear of loss will take control and inhibit you from being able to purchase your real estate with confidence!
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/3AfUHBba7-o
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
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
February 09, 2021Episode #019 - What to watch out for when using Cap Rates to purchase Commercial Real Estate!
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 what you should watch out for when using cap rates to evaluate commercial real estate deals.
For a FREE copy of our Letter of Intent, go to Invest.HowToInvestInCRE.com!
Topics discussed:
What is the biggest thing that the cap rate does not consider?
What is negative leverage?
Evaluating why institutional investors choose to invest in better markets with smaller cap rates.
Cap Rates don't measure where the market rent is. The cap rate may be lower but the income may be under market or could be improved through renovation.
The preferred method for underwriting Commercial Real Estate Investments or properties. Internal Rate of Return (IRR).
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/e4tZQdxMwDc
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
21 min
February 02, 2021Episode #017 - HOW TO BUY and BROKER Multi Family Apartments w/ Brandon Lamb of Newmark
How to Invest in Commercial Real Estate Special Episode (Part 2 of 2), we have special guest, Brandon Lamb from Newmark going over how Multifamily Buying and Brokering.
For a FREE copy of our Letter of Intent, go to Invest.HowToInvestInCRE.com!
Topics discussed:
How to get started as a Real Estate Broker? What trainings and designations should you be taking?
Building out a CRE Brokerage Team. You don't have to do it alone!
Learn how to be broker by getting on as an ANALYST for a top team in your market.
How to get the attention of Broker's and get awarded top Multi-Family deals!
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/ON9gukg84X4
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
0 min
January 30, 2021Episode #016 w/ special guest Brandon Lamb with Newmark going over MultiFamily Apartment Investing and Brokering
On this Episode of How to Invest in Commercial Real Estate we have special guest, Brandon Lamb from Newmark going over MultiFamily Apartment Investing and Brokering. Brandon and his team have over 90%+ of the Class A apartment sales market share and have set numerous records in the state of Oklahoma including largest multifamily portfolio sold and highest price per door.
Topics discussed:
Brandon Lamb Intro - Background and how he got into CRE Brokerage
Setting up your Brokerage Team - Niche down and become the expert in your field
Why multifamily is such a desirable asset class
Who are the buyers in todays market and how are they winning deals? What are they underwriting to?
What Debt terms are you seeing in the market today?
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/zpyGfpVmzF8
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
https://Nmrk.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
21 min
January 27, 2021Episode #015 - How to RETIRE on ONE Commercial Real Estate Syndication!
In today's episode we go over the basics of what a Real Estate Syndication is, and how you can use it to retire after just one commercial real estate deal.
For a FREE copy of our Letter of Intent, go to Invest.HowToInvestInCRE.com
Topics discussed:
What is a Real Estate Syndication?
How do Real Estate Sponsors get paid?
How to make a passive $100,000+ per year with just one deal!
*Be Sure to check us out on Youtube for the Video version of today's episode!**
https://youtu.be/mIumdJfrsRU
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
27 min
January 22, 2021Episode #014 - Understanding WATERFALL DISTRIBUTIONS In Commercial Real Estate Investing
In today's episode we go over the basics of what a waterfall is, and how it should be used in commercial real estate investing. The waterfall is how the cash flow gets distributed to the investors. Consider it a dichotomous key of sorts.
For a FREE copy of our Letter of Intent, go to Invest.HowToInvestInCRE.com!
Topics discussed:
What is a waterfall?
Who writes the waterfall? YOU DO! You create the rules but the MARKET dictates what investors will invest in.
Be comfortable with your waterfall and be able to justify why you have structured it the way you have.
ASK QUESTIONS to investors, other owners, and people raising money on how you need to structure your waterfall in order to get your deal funded!
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/SOaKo8xPuAE
Links mentioned in this episode:
invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent)
www.TheCriterionFund.com
www.HowToInvestInCRE.com
To sign up for our exclusive investor list, click below.
https://TheCriterionFund.appfolio.com/im/investor/contact-us
18 min
January 19, 2021Episode #013 - Live Overview of Criterion's latest investment opportunity - Kiddie Academy DFW
A LIVE REVIEW of The Criterion Fund's latest investment opportunity! This offering over subscribed in less than a week! - For details, questions and more information - Check it out!
For a FREE copy of our Letter of Intent, go to invest.howtoinvestincre.com!
Topics discussed:
Kiddie Academy Overview
Investment Pros's
An Overview of Expected Returns
What could go WRONG
*Be Sure to check us out on YouTube for the Video version of today's episode!**
https://youtu.be/CtxKf44RTkY
Links mentioned in this episode:
invest.howtoinvestincre.com - FREE LOI (Letter of Intent)
www.thecriterionfund.com
www.howtoinvestincre.com
To sign up for our exclusive investor list, click below.
https://thecriterionfund.appfolio.com/im/investor/contact-us
0 min