How is the office real estate market truly faring amidst predictions of its demise in the post-pandemic landscape?

 

Many have foretold the death of office real estate, citing remote work trends and vacant downtown buildings as proof. But is the office market really in as dire straits as some claim?

 

In this episode, commercial broker Jesse Fragale provides an insider's perspective. With over a decade of experience in office leasing and sales, Jesse shares updates from major markets, unpacks differences between Class A, B, and C spaces, and examines the feasibility of converting offices into apartments. He explains why reports of the office market’s death may be greatly exaggerated, especially for higher-quality assets, and reveals where pockets of opportunity still await savvy investors willing to hunt for them.

 

Jesse is a commercial real estate advisor specializing in the Downtown and Midtown Toronto markets. Jesse represents clients in various areas including tech, start-ups, not-for-profit, and traditional corporates to name a few. His focus is on office leasing and investment sales.

 

(00:03:00 - 00:06:00) Perceived Crisis vs. Pre-Existing Trends

The rise of remote work did not surprise most commercial brokers, as more flexible workplace norms were already emerging

Pandemic lockdowns rapidly accelerated these pre-existing shifts towards more hybrid remote/in-office arrangements

Initial overreactions are now giving way to market corrections, but the eventual "new normal" remains unclear

 

(00:06:00 - 00:09:00) Flight to Quality?

Many employees still value separating work and personal lives, favoring offices for camaraderie & productivity

High-quality "Class A" office spaces may benefit from a "flight to experience," attracting tenants through amenities and modern finishes

Class B and C buildings face more uncertainty, especially in struggling locations

 

(00:09:00 - 00:12:00) The Challenges of Converting Offices to Apartments

Limited windows and expansive floor plates make most offices poor apartment candidates

Upgrading plumbing, HVAC and other systems would often prove cost-prohibitive

Pure conversion is rare; demolition and ground-up building more likely

 

(00:12:00 - 00:16:00) Sales Volumes and Rental Rates

Office sales slowed dramatically - potentially more than the multifamily market

Landlords favored short lease extensions amid uncertainty

Effective rents dropped as landlords offered more concessions

 

(00:16:00 - 00:28:00) Signs of Stabilization

Companies are returning to 3-5+ year office leases, signaling renewed optimism

Rental rates are flattening after years of concessions and deferrals

Proximity to transit is now prized more with location preferences shifting

Book recommendation: The Motivation Myth by Jeff Haden

Who inspires Jesse?: Jesse's grandfather

 

Quotes:

 

"I don't think there's an exact, textbook definition, but the way I categorize AAA office is, if you're in most major markets, you see buildings with LEED Gold, Platinum certification, or DELOS wellness certification - those top-tier, cutting edge buildings with great amenities." - Jesse Fragale

 

"The challenging situations we see are investors who purchased an office building within the last 5 years when rates were low. Now their building has high vacancy in a weak location, and they can't fill the space. Those owners are in trouble." - Jesse Fragale

 

Connect with Jesse:

 

Website: www.avisonyoung.com

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Have you ever considered how transitioning from one real estate investment strategy to another could not only change your portfolio but also your lifestyle?

 

In this episode, Taylor welcomes Matthew Masoud, a real estate investor who, over three years, built a significant portfolio of 34 units comprising midterm rentals. Initially thriving in the midterm rental space, Matthew shares his journey of transitioning to other real estate assets to align his investments with his desired lifestyle. This episode dives into the nuances of midterm rentals, their operational challenges, and how strategic shifts in investment focus can lead to personal and professional growth. Let's dive in!

 

Matthew Masoud is a Real Estate Investor at his self-owned firm Superior Capital. Matthew manages and operates multifamily assets purchased through JV and syndications.

 

 

[00:01 - 05:43] The Beginning of a Real Estate Journey

Matthew's early experiences in real estate, starting with a triplex in Ohio

The importance of 'buying right' in real estate investing

Transition from personal involvement in renovations to scaling the portfolio

 

[05:44 -10:52] Midterm Rentals: A Stepping Stone

The discovery and success of midterm rentals in the Dayton market

Operational strategies and challenges in managing midterm rentals

Scaling operations alongside property acquisitions

 

[10:53 - 14:25] Pivoting to Long-Term Investments

Reasons for shifting from midterm rentals to long-term investments

Evaluating the operational intensity and lifestyle compatibility of investment strategies

Exploring traditional commercial properties and multifamily investments

 

[14:26 - 20:56] Market Analysis and Expansion

The importance of market selection in real estate investment

Strategies for off-market acquisitions and direct outreach to property owners

Adapting to the changing real estate market since the pandemic

 

[20:57 - 26:39] Closing Segment

Matthew's approach to learning new asset classes, including obtaining a commercial broker license

The importance of adapting and growing in the real estate industry

Matthew's insights and advice for young and aspiring investors

 

 

 

Quotes:

 

"I realized that real estate was the bridge that was going to take me towards freedom." - Matthew Masoud

 

"You make your money on the buy." - Matthew Masoud

 

"Be patient on the macro, but impatient on the micro and keep moving towards your goals." - Matthew Masoud

 

"If the deal falls through it's not the end of the world. Don't be too hard on yourself." - Matthew Masoud

 

 

Connect with Matthew:

 

LinkedIn: Mathew Masoud

 

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Investing with Taylor: www.investwithtaylor.com  

Taylor discusses the key concepts from the book "The Gap and the Gain" by Dave Anne Sullivan and Benjamin Hardy. He explains the three key points in our personal timelines and progress of achievement: where we are today, where we were in the past, and where we aim to get to.

The book emphasizes measuring success by focusing on the gain, the progress made over time, rather than the gap between where we are and where we want to be. Taylor highlights the importance of learning from our past experiences, both positive and negative, and turning them into gains. By shifting our mindset to focus on the gain, we can cultivate a more empowering perspective and apply the lessons learned to future endeavors.

Key Takeaways:

Focus on the gain, the progress made over time, rather than the gap between where you are and where you want to be.

Learn from both positive and negative experiences to turn them into gains.

Cultivate an empowering mindset by measuring success backwards and applying lessons learned to future endeavors.

How can Canadian real estate investors build wealth in an expensive housing market?

 

Natalie Cloutier joins the Passive Wealth Strategy podcast to discuss how she and her husband have built over 30 rental properties from the ground up in Canada's hot housing market. They use a "build-to-hold" strategy, constructing new small multifamily buildings with sweat equity and zero money down loans. Natalie outlines their entire process, from financing these deals to managing the rentals at scale. She also shares key lessons for aspiring build-to-rent investors.

 

Natalie works with Transport Canada full-time and is a part-time real estate investor. She started investing in 2014 building her first home from the ground up with no money down.

 

(00:00 - 03:42) Getting Started With Build-to-Rent

Used sweat equity to build first home with 0 down at 20 years old

Added rental suite to basement for extra income

Financed second single-family home through HELOC and converted to duplex

 

(03:43 - 09:33) Scaling Through Multiple Properties

Focused builds in area they knew well with strong rental demand

Kept loan-to-value ratios below 75% to allow for interest rate fluctuations

Sold some peak priced units during pandemic to redeploy capital

 

(09:34 - 13:55) Managing Properties & Teams

Hired property manager briefly but took back control

Using Buildium software to systematize maintenance

Building in-house team to allow for scalable growth

 

(13:55 - 28:00) Adapting to Interest Rates

Mortgage terms are 3-5 years in Canada, so rates fluctuate

Focus on keeping costs low as rates change

Maintain under 75% loan-to-value ratio

Book recommendation: The Secrets to the Canadian Real Estate Cycle

Who inspires Natalie?: Brandon Turner and Natalie's mother.

 

Quotes:

 

"Really anybody can do this. And I do have friends and family who has done, built their own home or built rental properties on their own." - Natalie Cloutier

"If you're able to stay safe in your leveraging, that's probably the best tool you can use in order to keep scaling." - Natalie Cloutier

 

 

 

Connect with Natalie:

Website:

 

https://www.thenewbuildcouple.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Invest with Taylor: www.investwithtaylor.com 

Open a Self Directed IRA: www.passivewealthstrategy.com/rocket/ 

Tom Zeeb shares his expertise in negotiation strategies for real estate investors. He emphasizes the importance of understanding the other party's pressure points and solving their problems to create a win-win scenario. Tom provides practical techniques such as the flinch, bracketing, and using specific numbers to make offers. He also advises aspiring negotiators to practice active listening and ask probing questions to uncover the seller's motivations and needs.

Key Takeaways:

Focus on solving the other party's problems to create a win-win scenario.

Use the flinch technique to show surprise or concern when presented with a number.

Employ bracketing to engineer the middle ground and meet in the middle.

Make offers with specific numbers to convey thoughtfulness and professionalism.

Practice active listening and ask probing questions to uncover the seller's motivations and needs.

Quotes:

"Focus more on their pressure points. When you learn to solve their problems, you'll get the price you want."

"Don't be afraid to ask difficult questions. You're helping them by pushing them to make a decision."

"Always make at least two offers. It gives them a choice and avoids a binary decision."

"The flinch technique creates doubt about the number and opens the door for negotiation."

"Specific numbers make your offer more credible and show thoughtfulness."

"Active listening and probing questions build rapport and help you structure a package that solves their problem."

How can you protect and grow your real estate wealth across generations?

 

In this engaging episode, KC Chohan explains how trusts can help real estate investors protect assets, maintain privacy, reduce taxes, and pass on wealth. Learn the key differences between LLCs and various trust structures, when trusts start to make practical sense based on your net worth, and how to set up guardrails so future generations preserve (instead of lose) family assets.

 

KC Chohan is the Founder of Together CFO, providing fractional CFO services, accounting, and bookkeeping to help high-net-worth families protect their wealth and assets. Motivated by bridging the gap in financial literacy, especially for first-generational wealth, KC pushes himself to continually learn and understand advanced asset protection and legacy planning strategies. As a writer for Forbes Magazine, professional speaker featured in various major media outlets, and resident CFO expert for high-level masterminds, KC Chohan is on a mission to equip one million business owners with the tools and education for robust asset protection and lasting generational legacy.

 

[00:00 - 00:06] What is a Trust and What Does it Do?

A trust is a 3-party legal contract between the grantor, trustee, and beneficiary

It bifurcates asset ownership for protection and can create a generational legacy

Over 84 types of trusts exist, so first clarify goals before selecting a structure

 

[00:06 - 00:14]Can I Be Both Trustee and Beneficiary for Maximum Protection?

Asset protection ties to legal ownership liability

Bifurcating ownership with trustee vs beneficiary provides confusion against lawsuits

Anonymity and reduced attack surface safeguard wealth

 

00:14 - 00:20 At What Net Worth Do Trusts Start to Make Sense?

Even simple wills can work for smaller estates to pass on some assets

Mid-size estates between $100k-$1M benefit from basic living trusts

Larger estates over $1M need customized, complex trust solutions

 

[00:20 - 00:28 ]Beware Major Tax Implications If Done Wrong

Asset transfers or sales can trigger significant capital gains taxes

LLC membership structure provides more flexibility than S-corp shares

Consult professionals to navigate ownership changes

Book recommendation: Think and Grow Rich

Who inspires KC?: Ray Dalio

 

Quotes:

 

"It's really important to understand what it is you're trying to achieve at the offset before getting into such structures." - KC Chohan

"When most people at least come to speak to us, they're actually looking for a lot more than that. That's one piece of the pizza pie." - KC Chohan

 

Connect with KC:

Website: https://www.togethercfo.com/

 

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

What challenges did Nico face on his first multifamily syndication deal, and what key lessons did he learn that have shaped his investing approach today?

 

In this episode, host Taylor Loht interviews Nico Salgado about his experience acquiring his first multifamily syndication deal - a 194-unit C/C- property in Columbus, Ohio in 2020. They discuss the obstacles Nico faced with this challenging Class C property, from troublesome tenants to major deferred maintenance and difficulties with his large GP team. Nico shares key takeaways that have informed his investing strategy going forward.

 

Nico has a BS in Business Marketing and Management and a minor in Economics. He also holds a master's degree in Spanish Language Education and spent the past 18 years as a Spanish teacher. Apart from teaching and investing in real estate, Nico is an entrepreneur, coach, mentor, and leader. He is an avid surfer, woodworker, traveler, and extremely proud father. As founder and visionary of Small Axe Communities, Nico is responsible for developing and executing the company’s long-term objectives, growth strategies, and initiatives as well as overseeing day-to-day operations.

 

 

[00:00 - 00:03] Getting Started in Multifamily Investing

Nico began educating himself on multifamily in 2019 through a mentorship program

He joined his first syndication deal in 2020 after declining initially due to feeling unprepared

 

[00:03 - 00:12] The Challenges of His First Deal

194 units in Columbus, Ohio purchased in Dec 2020 for $43k per door

Significant deferred maintenance after 12 years of neglect from the previous owner

Had issues with crime and troublesome tenants in one area of the two-property portfolio

 

[00:12 - 00:16] Executing the Business Plan

Brought in a construction crew from Miami to renovate units

Renovated about 100 of the 194 units

Took occupancy from the 60s into the 90s by the time of sale

 

[00:16 - 00:26] Selling the Asset

Nico approached by several buyers early on due to an attractive offer

Ended up selling to one of those groups 2 years after buying

The buyer got "flaky" to rising interest rates but closed at the original price

Having 8 GPs was too many "cooks in the kitchen"

Stayed focused on Florida afterward due to the Columbus market

 

Quote:

-"It was a freaking stretch, man. It was really hard to get that done. I didn’t realize how hard it was going to be." - Nico Salgado

 

Connect with Nico:

 

Website: https://smallaxecommunities.com/

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

To track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Invest with Taylor at www.investwithtaylor.com 

Get your Self Directed IRA at www.passivewealthstrategy.com/rocket/ 

John Lindsey is the co-founder and president of Lindsey Self Storage Group. With a family history in the storage business dating back to 1969, John has extensive experience in self-storage investing, development, brokerage, and management. He is considered a thought leader in the self-storage industry.

Summary:

John shares insights on the impact of high interest rates, the demand side of self-storage, oversupply in certain markets, and strategies for navigating the market. He emphasizes the importance of making informed decisions and being cautious in the current market conditions. John also discusses the motivations of sellers, the impact of construction costs, and the reinvestment plans of mom and pop owners.

Key Takeaways:

High interest rates have made it difficult for smaller deals to get done in the self-storage market.

Mortgage applications are down, leading to stagnating occupancy rates and decreasing rental rates in some markets.

Oversupply is more prevalent in core and core plus markets, where multiple developers have built simultaneously.

Quotes:

"People can sit on the sidelines all they want, but money is made when it is changing hands through deals." - John Lindsey

"Most sellers are pretty willing to just say thank you and just go about their business." - John Lindsey

What mindsets helped Mike go from working at McDonald's to financial freedom through real estate investing?

 

In this episode, host Taylor Loht interviews young real estate mogul Mike Mannino on his journey from flipping burgers to flipping houses. Mike shares how a challenging health diagnosis in his youth shaped his mindset to live life intentionally and adopt an abundance mentality focused on serving others. He recounts getting started by house-hacking his first property at 19 and then tapping into tax auction properties to launch his flipping business with his dad. Mike explains the key systems and processes he implemented in his company that enabled him to scale up to 80 flips while working only 20 hours a week. He also discusses his strategic transition into multifamily investing for tax benefits, passive income, and wealth appreciation.

 

Over the past 8 years, Mike has built a business that flipped over 80+ houses by the age of 30 and created multiple companies that generate over 1M per year in revenue, sold tens of thousands of copies of his book (making him an Amazon best selling author) , he is the founder of Real Estate Wealth Builders which is an educational company that helps real estate investors quickly scale their real estate business.

 

[00:53 - 05:53] The Mindsets That Fueled Mike's Journey

How Mike turned his challenging diagnosis into motivation to live intentionally

Mike adopted an abundance mindset focused on serving others

Why Mike set the big goal of retiring his father

 

[05:53 - 12:28] Getting Started in Real Estate Investing

How Mike house hacked his first property at 19 to cover the mortgage with roommates' rent

Mike tapped into tax auction properties to discover profitable deals

Mike partnered with his dad on flips by splitting purchase and renovation costs

 

[12:28 - 18:33] Scaling Up From 1 to 80 Property Flips

Mike systematized materials and processes to remove the guesswork

Why Mike pays top rates to hire A-player team members

Mike documented his journey publicly to attract opportunities

 

[18:33 - 22:34] Transitioning from Flipping to Multifamily Investing

Multifamily provides tax benefits for Mike to offset flipping income

Flipping profits stop when Mike stops working; multifamily means passive income

Multifamily allows Mike's wealth to grow through gradual rent increases

 

[22:34 - 28:00] Key Relationships Are Critical

Mike couldn't scale his company without the right team in place

Knowing the right people allows Mike to buy any deal

Mike treats his team well so they'll have his back when issues arise

Best deal: A 16-unit apartment building in North Carolina

Worst deal: House flips that didn't go according to budget

Top lesson learned: Creating and maintaining great relationships in the business.

 

Quotes:

 

"Your first deal is your scariest deal. As you know, it's your hardest deal. It's your scariest deal." - Mike Mannino

"If you know the right people, you can buy any deal you want. You can buy as big of a deal as you want." - Mike Mannino

 

Connect with Mike:

Website: 55kdeal.com

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

Investing with Taylor at www.investwithtaylor.com

Start your Solo 401k or SDIRA at www.passivewealthstrategy.com/rocket/

Brian Boyd is a tax attorney and experienced real estate investor. He has a master's degree in tax from Georgetown Law School and has written a book on building financial independence and tax-advantaged wealth through real estate investing. Brian offers coaching, mentoring, and online courses on tax and real estate matters.

Summary: In this episode, tax attorney and real estate investor Brian Boyd shares key tax mistakes and misconceptions that many people have. He emphasizes the importance of understanding the tax rules and seeking professional advice. Brian discusses topics such as passive activity losses, the short-term rental loophole, the heavy equipment tax deduction, and writing off car purchases on taxes. He also highlights the potential benefits of real estate investing and the need to educate oneself on the tax advantages. Brian encourages readers to read his book and take the time to understand the tax laws and regulations surrounding real estate investing.

Key Takeaways:

Passive activity losses can be used to offset income from real estate investments, but there are specific rules and exceptions that need to be followed.

The short-term rental loophole allows individuals who spend at least 100 hours a year on a short-term rental property to apply the tax benefits to their W-2 income.

The heavy equipment tax deduction, under section 168K, allows real estate investors to write off a portion of the purchase price of qualifying vehicles used for business purposes.

The bonus depreciation rule for heavy equipment allows for a 100% write-off in 2022, with decreasing percentages in subsequent years.

It is important to track business use and consult with an accountant or tax professional to ensure compliance with the tax rules.