Industrial Insights

Scaling An Industrial Real Estate Portfolio with Michael Bucci


Listen Later

Michael Bucci, an investor in the industrial asset class, shares his journey and approach to investing in industrial real estate. He focuses on value-add properties for warehousing and distribution, with a preference for multi-tenant spaces. Bucci emphasizes the importance of understanding the market and the needs of the owners when approaching deals. He also discusses the financing process, including bridge loans and long-term loans. Bucci highlights the resilience of the industrial real estate market and the need to adapt to different market cycles. In this conversation, Michael Bucci discusses his experience in real estate acquisitions and the challenges he faced. He talks about how he navigated the market during the COVID-19 pandemic and the strategies he used to educate and negotiate with sellers. Michael also highlights the differences between the Canadian and US real estate markets, including tax advantages and market size. He shares examples of successful deals and explains his future plans for expanding his business. The conversation concludes with a discussion on the potential for condo conversions in the multi-tenant industrial sector.

 

Key Takeaways

  • Understanding the market and the needs of owners is crucial in industrial real estate investing.
  • Value-add properties with upside potential are preferred, especially those with low rents, expiring leases, or vacancies.
  • Bridge loans are often used to finance value-add acquisitions, with refinancing as a long-term strategy.
  • Adapting to different market cycles and structuring deals strategically is key to success in industrial real estate investing. Navigating the real estate market during challenging times requires creativity and flexibility.
  • Educating sellers on the current market conditions and the value of their property can help facilitate deals.
  • The Canadian and US real estate markets have different tax advantages and market sizes.
  • Successful deals can be achieved by finding unique opportunities and leveraging seller financing.
  • Condo conversions can be a profitable strategy in the multi-tenant industrial sector.

 

Chapters

00:00 - Introduction and Background 03:00 - Investing in Industrial Real Estate 07:36 - Finding Value-Add Opportunities 17:40 - Staying on as an Equity Partner 19:25 - Building an Acquisitions Pipeline 22:21 - Catering to Owner Needs 26:25 - Financing Strategies 28:25 - Adapting to Market Cycles 31:06 - Educating Sellers and Negotiating Deals 34:42 - Differences Between the Canadian and US Real Estate Markets 45:42 - Successful Deals and Future Plans 50:49 - The Potential for Condo Conversions in the Multi-Tenant Industrial Sector  

Resources

Connect with Michael Bucci

  • https://www.linkedin.com/in/michael-bucci-real-estate/ 
  • https://investingrealestate.com/

Connect with Justin Smith

  • https://smithcre.com/
  • https://www.lee-associates.com/
  • [email protected]
  • https://www.linkedin.com/in/justinbsmith
...more
View all episodesView all episodes
Download on the App Store

Industrial InsightsBy Justin Smith

  • 5
  • 5
  • 5
  • 5
  • 5

5

5 ratings


More shows like Industrial Insights

View all
The Joe Rogan Experience by Joe Rogan

The Joe Rogan Experience

226,832 Listeners

America‘s Commercial Real Estate Show by Bull Realty

America‘s Commercial Real Estate Show

141 Listeners

Odd Lots by Bloomberg

Odd Lots

1,789 Listeners

Real Estate News: Real Estate Investing Podcast by Kathy Fettke / RealWealth

Real Estate News: Real Estate Investing Podcast

560 Listeners

Pardon My Take by Barstool Sports

Pardon My Take

81,863 Listeners

The Fort by Chris Powers

The Fort

474 Listeners

Ken McElroy Show by Ken McElroy

Ken McElroy Show

721 Listeners

Industrial Advisors by podcast@industrialadvisors.com (Industrial Advisors)

Industrial Advisors

22 Listeners

All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

All-In with Chamath, Jason, Sacks & Friedberg

9,207 Listeners

The Weekly Take from CBRE by CBRE

The Weekly Take from CBRE

156 Listeners

The TreppWire Podcast: A Commercial Real Estate Show by The TreppWire Podcast, A CRE Show

The TreppWire Podcast: A Commercial Real Estate Show

213 Listeners

Huberman Lab by Scicomm Media

Huberman Lab

28,494 Listeners

The Ezra Klein Show by New York Times Opinion

The Ezra Klein Show

15,335 Listeners

The Industrial Real Estate Podcast by Questor Media

The Industrial Real Estate Podcast

28 Listeners

Moneywise by Hampton

Moneywise

646 Listeners