Do you want to know how the pros navigate the complex world of real estate investing in retail spaces? 

 

Dive into this episode where Robert Levy, a 30-year real estate investment industry veteran, has developed a successful strategy with his partner for investing in shopping malls and retail assets over the past seven years. Robert discusses the critical elements of their investment strategy, including due diligence, management strategies, leveraging positive leverage, pushing occupancy and rents, and creating returns from both cash flow and value improvement. He also explains how his experience during the global financial crisis has shaped his approach to debt today. Finally, he discusses the high barrier to entry of retail investments, what to look out for when assessing opportunities, and why multifamily assets are becoming more attractive. 

 

This episode will provide an in-depth look into the world of real estate investing in retail assets and valuable lessons learned from Robert's decades of experience in the industry.

 

[00:00 - 08:53] Opening Segment

Introducing Robert to the show

Don't do anything with floating rate debt or take any interest rate risk

 

[08:54 - 14:23] Generating Profits Through Shopping Center Investing

Retail investments are typically one of 4-6 bidders, while multifamily is one of 50-70

Shopping centers are open-air, neighborhood, community centers with grocery anchors

Shopping center allows pushing occupancy and rents and carves off out parcels for arbitrage

 

[14:24 - 24:34] Understanding the Supply and Demand Dynamics and Identifying Red Flags

In suitable locations, population and income are increasing

Tenants have a little place to go because of the economics of developing retail

Red flags include bad credit tenants and reduced incomes

Assess whether a tenant is a risk or an opportunity

Analyze the cost of backfilling the space

Price based on knowledge and assess if there is opportunity or risk

 

[24:35 - 31:12] Closing Segment

Best investment: Robert's own company

Worst investment: in oil and gas

The most important lesson learned: think through black swan events and finance assets conservatively

Quotes:

 

"Debt, if used improperly, can kill businesses and especially in real estate." - Robert Levy

 

"Invest in what you know and who you trust and who you believe in, and you'll do well." - Robert Levy

Connect with Robert!

Website: www.lbxinvestments.com

Email: [email protected] 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

 

Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.

 

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

 

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