The Game for Real Estate Investors and Developers

How do real estate insiders spot lucrative opportunities in the market?

In this episode, Shane Melanson has an insightful conversation with James Nelson, a principal at Avison Young in New York City. James shares his insights on commercial real estate investing, drawn from over 25 years of experience in the industry. They discuss finding the right opportunities, building relationships with brokers, putting together a strong team, and getting mentorship as a new investor. James also talks about his new book, The Insider's Edge to Real Estate Investing, and his podcast. This episode is full of practical advice for those looking to succeed in commercial real estate investments.

So whether you're a seasoned investor or just dipping your toes into the market, get ready for an insider's perspective that might just change the way you view real estate.

[00:00 - 07:47]  Expertise in a Specific Market is Crucial for Success

• Mastery of a market is vital for successful commercial real estate investing.

• Specialized knowledge gained through intense research enhances investor value.

• Investing in commercial real estate requires a commitment to understanding the market's intricacies.

• Focusing on a specific area and developing expertise leads to strategic and informed investment decisions.

[07:48 - 15:00] Strategic Focus on a Specific Asset Class and Market

• Focus on learning the market and gaining insights from brokers before actively engaging in property transactions.

• Cultivate relationships with active investment sale brokers in the targeted asset class and geography.

• Communicate your learning process, willingness to bring sweat equity, and interest in building a credible team.

• Avoid pretending to be more experienced than you are; honesty is crucial in establishing trust with brokers.

[15:01 -  25:58] Strategic Selection of Asset Class Based on Market Trends

• Retail properties, once overlooked, present post-COVID opportunities due to decreased rents and increased investor demands for higher returns.

• Knowledge of zoning changes or infrastructure developments can enhance value and returns.

• Building a reliable team of specialists is crucial for navigating the complexities of commercial real estate.

• Public-private partnerships are crucial for success, as they involve professionals with local market expertise.

• Strategic partnerships and collaborations with experienced operators can help overcome financial constraints, gaining credibility and access to resources.

[25:59 - 41:05] Understanding the Nuances of Off-Market Versus Listed Property Transactions

• Relationships Drive Real Estate: Commercial real estate thrives on relationships.

• Listing vs. Off-Market Dilemma: The choice between listing a property and engaging in off-market dealings is pivotal, particularly in multimillion-dollar transactions.

• The Leverage Advantage: Publicly marketing a property through brokers provides crucial leverage, compelling potential buyers to step up and compete.

• Selling as a Numbers Game: Prospective investors must constantly analyze numerous deals to identify lucrative opportunities in the market for the best properties.

• Seller's Motivation Matters: Understanding why a seller is parting with a property is a key factor in gauging the potential of a real estate investment.

Resource Mentioned

The Insider's Edge to Real Estate Investing

The Insider's Edge to Real Estate Investing - Podcast

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quotes:

“Honesty in commercial real estate is crucial for building genuine relationships with brokers, fostering a credible and fruitful partnership, rather than pretending.” - James Nelson

“Real estate success relies on teamwork, connections, and partnerships, with great professionals opening doors to excellence and transforming fear into opportunity.” - James Nelson

Did you know that in the world of commercial real estate, many successful investors start as apprentices and work their way up to become equal partners in wealth-creating ventures? 

In this podcast episode, Shane Melanson unveils the secrets behind this journey and provides invaluable advice on structuring fees, roles, and responsibilities in real estate partnerships. 

Tune in to discover how you can turn mentorship into wealth creation through club syndications!

[00:00 - 07:36] Effectively Structuring Fees and Expectations in Real Estate Development Partnerships

• As value grows, the balance of value shifts, and fees become more important
• Negotiating hard out of the gate can lead to higher expectations 
• Be flexible and open to revisiting the splits and partnership 
• Go into it with the mindset of playing the long game 

[07:37 - 14:54] A Guide to Roles and Responsibilities

• Roles and responsibilities for a development project can take 30-40 hours 
• Have conversations to set expectations and reflect the value being created
• Handing out proformas creates more work and people pay attention when they pay for something
• Clear and specific questions are more important than macro strategic vision type questions

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quote:

"Approach every partnership with the mindset of playing the long game, envisioning a lasting collaboration spanning the next 15 or 20 years." - Shane Melanson

In the realm of real estate investing, the difference between success and failure often boils down to a single choice: 'bet on the jockey, not the horse.'

Charles Carillo is the managing partner of Harborside Partners; a real estate syndication firm and has been actively investing in multifamily and commercial real estate since 2006. Since that time, he has invested in over $200 million worth of investment real estate. Charles is also the host of the Global Investors Podcast, where he interviews professionals about investing in U.S. real estate.

In this episode, Charles discusses asset management, due diligence considerations, and strategies for making safer returns. Whether you’re an experienced commercial real estate investor or just getting started, join us to learn more about multifamily real estate investing and what investors need to know!

[00:00 - 11:21] Starting off with Investing in Multifamily Real Estate

• Charles Carillo on growing up in a real estate investing family and getting in the business from ‘06
• Initially invested passively in syndications, then transitioned to GP role
• Pick the right GP/property and focus on cash flow from day one; find experienced GPs through personal relationships
• Raising money through podcast and referrals; understand the goals and skill sets of your investors and partners

[11:22 - 15:20] A Look Into Asset Management Strategies

• Asset management is managing the property manager, not the property itself
• Having conversations with property managers about rent prices, vacancies, and renovations
• Keeping the phone ringing to get people applying for apartments
• Needing to tighten up on underwriting standards due to delinquencies and collections going down

[15:21 - 28:00] Tips on Finding Deals in Multifamily and Commercial Properties

• Note that C class tenants have an average of $400 in savings, making them more likely to pay rent late
• The main key with better properties is that there's always buyers at every part of the market cycle
• Getting a discount per door is a huge factor when looking at deals
• It's important to not overestimate increases and overpay for a property

Connect with Charles

Podcast: https://harborsidepartners.com/commercial-real-estate-podcast/

YouTube: https://www.youtube.com/@HarborsidePartners 

Linkedin: https://www.linkedin.com/in/charleskcarillo/ 

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quote:

"Asset management is really just managing your property manager and that's making sure that the property manager is doing exactly what they're supposed to, but you're also giving them guidance." - Charles Carillo

Curious About Boosting Your Investments? Learn the Secrets of Networking, Research, and Asset Classes!

In this conversation, Shane Milson discusses the various ways to invest and earn good money through club syndications. Shane shares his advice on networking as a key factor to help secure successful investments, which includes listening to podcasts, connecting with people on LinkedIn or Twitter, and building relationships. Further, they examine the importance of doing extensive research when considering investing a large sum of money, such as looking at who is in the space being considered investing in, driving around, pulling titles, or speaking with commercial real estate brokers or mortgage brokers. Finally, they discuss the various asset classes and emphasize clarity when looking for potential investors.

Tune in to this episode for strategies on how you can turn your money into a smart investment!

[00:00 - 07:43] Finding Trustworthy Syndicators

• Use your personal connections, especially those with financial resources, to find potential syndicators
• The more you learn about real estate, the more confident you'll be in selecting the right investment partners
• Focus on the trustworthiness of the people behind the deals – their character and intentions are key
• Podcasts offer a scalable way to get to know potential syndicators and build relationships in the real estate industry

[04:07 - 15:01] Crafting Your Philosophy and Syndicator Search

• The episode explores various strategies for finding syndicators, including networking, podcasts, and social media like LinkedIn and Twitter
• Listeners are urged to create a personalized investing philosophy based on goals, risk tolerance, and property types
• The episode emphasizes the importance of aligning your philosophy with syndicators who share similar objectives to avoid conflicts
• Flexibility and continuous learning are encouraged to refine your investment approach while maintaining clarity in your philosophy
• Investing is not about what you like but rather what you have a competitive advantage in

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quotes: 

"The more you can educate yourself, the more you're going to feel comfortable and confident in terms of determining who it is that you want to invest with." - Shane Melanson

"The more clarity you have, the more you're going to be attractive to the type of person that you probably wanna invest with." - Shane Melanson

In the vast and intricate world of real estate, navigating without guidance can be daunting. 

Today, Shane shares his insights on the ten things he wished he had known when he started in real estate, such as understanding different asset classes, getting clarity on what one wants and why, the importance of specialization and focus, and more. He emphasizes the importance of having the right partners, understanding one's strengths, and having proper expectations when investing. 

Aspiring investors should not miss this episode! Tune in now for an insightful look into what it takes to become a successful real estate investor.

[00:01 - 04:55] 10 Things Shane Wish He Knew Before Investing in Commercial Real Estate

• Ten things to consider when investing in commercial real estate

• Understand the options of different asset classes, locations and why you want it

• Specialize and focus on one asset class

• Develop relationships and understand market timing

[04:56 - 08:47] The Value of Having the Right Partners in Real Estate Investing

• The importance of taking extra time and having someone else give perspective on a property

• It is vital to find people you trust to execute a project

• Knowing where you fit into the equation

• Real estate investing is a grind and not quick and easy

[08:48 - 11:51] Real Estate Investing Is Not the Only Way to Invest Money

• It is essential to understand where real estate investing fits into the entire scope of investments

• Having enough capital and staying power is essential for successful real estate investing

• It is beneficial to make money in other areas and recycle it into real estate investments

• Syndications are good, but owning the deal yourself can be more liberating and quicker

[11:52 - 13:57] Closing Segment

• Why investors should consider a four-by-four grid

• Building, growth, keeping, carry, and performance categories

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money 

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.     

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.   

Tweetable Quotes:  

“I think in some cases people underestimate how valuable one or two key relationships can be.” - Shane Melanson

“I don't think you necessarily need to be an expert at doing a development or retail. What you want to be an expert at is identifying people that you can trust, that have this skillset and know where you fit into the equation.” - Shane Melanson

“Understanding kind of where you are, what your focus is, how much energy and effort you have to put into it, will help to determine what strategy you use.” - Shane Melanson

Are you in the world of real estate investing and want to avoid common pitfalls?

In this episode, Shane Melanson unveils the keys to success in the property sector. The episode unravels seven vital strategies, from mastering market cycles to harnessing the debt market's pulse. While underscoring the importance of niche specialization and value addition, the speaker shares firsthand experiences, cautioning about pitfalls like mistimed sales and over-reliance on single tenants.

With these insights, listeners will be better positioned to make informed real estate decisions!

[00:00 - 07:05] 7 Strategies to Invest in Commercial Real Estate

• Market Cycles: Prioritize buying during recessions and avoid competing with multiple buyers
• Value Add: Seek properties with potential for value enhancement
• Selling Strategy: Have a clear exit plan and recognize the optimal selling time
• Specialization: Focus on gaining deep expertise in one property asset class
• Capital to Take Advantage: Keep capital available for swift investment decisions
• Single Point of Failure: Diversify to avoid over-reliance on one success factor
• Debt Dynamics: Understand the role of financing and the challenges in the current lending landscape

[07:06 - 13:30] Key Insights into Smart Real Estate Investing: Lessons from Experience

• Shane warns against buying at peak market cycles, observing frequent investor frenzies in sectors like multifamily properties
• Shane's personal anecdote underscores the significance of selling properties at the right time, highlighting a missed significant return
• He suggests that while diversifying offers experiences, focusing on specific property types can be more beneficial
• With rising interest rates, investors should anticipate tighter financing conditions and the need for more capital in commercial real estate

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quotes: 

"Being a generalist gave me a broad foundation, but finding your niche can offer a significant advantage." - Shane Melanson

"When it's a buyer's market, or there's less competition, smart individuals can truly take advantage and prosper." - Shane Melanson

In today's episode, Shane Melanson offers a review of a podcast featuring Jeremy Giffon, as introduced to him by David Senra, host of "Founders Podcast." After thoroughly listening to the interview from "Invest Like The Best" multiple times and taking extensive notes, Shane aims to share insights and principles he found particularly relevant to commercial real estate and investment. 

Don’t miss Shane’s reflections on the notes taken and his personal thoughts on the subject!

[00:00 - 08:04] Key Takeaways from Jeremy Giffon's Real Estate Insights

• Jeremy Giffon emphasizes the value of a business model where individuals can gain equity through their knowledge and wisdom
• By eliminating bottlenecks, businesses can unlock hidden potential
• Understanding why a seller is in the market can reveal critical deal insights
• Quick decision-making can be a significant competitive advantage
• Stakeholders must share common goals for optimal deal success

[08:05 - 18:16] Harnessing Timing, Simplicity, and Authenticity in Business Investments

• Jeremy capitalized on a fund winding down after a big win with Uber, underscoring the role of timing in investments
• For newcomers, avoiding needless complexity and building a solid reputation are vital for success in the commercial real estate realm
• Satisfaction arises from aligning actions with genuine desires rather than just chasing monetary gains
• Beyond funding or social presence, consistent problem-solving defines a business's long-term success

[18:17 - 24:04] Resilience, Relationships, and Revelations

• The importance of reliability in business relationships is underlined, with a focus on an investor's trust and peace of mind when collaborating with partners
• Even a small online presence can yield major business opportunities
• Jeremy's view on mentorship emphasizes genuine interactions over formalities
• Shane delves into subtle human interactions and concludes with a reference to John Stuart Mills' philosophy

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.   

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quotes: 

"The reward for good work is getting to do more work." - Shane Melanson

"Look, price is always important. Terms are important, but at the end of the day, if you're dealing with an asshole who makes your life hard, generally speaking, there's not enough money that is going to be worth dealing with that headache and aggravation." - Shane Melanson

Are you aiming to receive advice to avoid costly mistakes in your real estate endeavors?

Sharing personal experiences and costly lessons, Shane Melanson stresses the importance of gaining insider insights and critical information before making investment decisions. He highlights the value of consulting with experienced individuals, conducting thorough research, and building relationships to succeed in the competitive landscape. Additionally, he offers mentorship sessions to share valuable insights and benefit a broader audience. 

Adopt a long-term perspective and embrace the challenges, knowing that the effort invested in obtaining valuable insights will pay off in the pursuit of significant wealth through commercial real estate!

[00:00 - 05:38] Learning from 'Billions' and Bodybuilding

• Shane Melanson recounts a personal anecdote about receiving a call from a friend seeking advice for a commercial real estate development project
• Drawing inspiration from the TV show "Billions," he discusses the legal aspects of gaining insider information in commercial real estate investing
• Shane emphasizes the significance of obtaining deep insights ahead of others in the market, such as tenant movements and rezoning bylaws
• Using a bodybuilding analogy, Shane illustrates how small but critical pieces of information can lead to significant success in highly competitive fields like commercial real estate

[05:39 - 12:41] Lessons Learned and Mentoring Offered

• Emphasizing the significance of gaining critical insights, Shane encourages consulting with experienced individuals to make informed investment decisions
• Thorough research and building relationships with knowledgeable professionals are highlighted as essential steps to obtaining valuable information in the industry
• He cautions against dealing with sophisticated landowners and developers without prior knowledge, stressing the need to approach transactions skeptically
• Shane considers offering mentoring sessions to share valuable insights and benefit a broader audience

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money 

Set up a Zoom call: [email protected]

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.     

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.    

Tweetable Quotes:  

"So I look at it with the perspective of, because it's hard, that's good because most people are not going to do the work that's required." - Shane Melanson

"Just realize that if you are buying a property from someone or looking to develop, try to get Intel, try to get that insight from someone." - Shane Melanson

¡Reflecting on Podcasting, Business, and Lifestyle!

Join Shane Melanson in this episode to explore the purpose, evolution, and valuable takeaways from his podcast, empowering listeners to navigate business and lifestyle effectively, offering valuable insights, and exploring the alignment of his show with business goals and personal growth. 

Discover the power of sharing philosophies, finding balance, and making informed decisions.

[00:00 - 07:16] Navigating Purpose and Evolution: Insights from a Podcasting Journey

• Shane Melanson reflects on the purpose of his show and its value, questioning how it aligns with his business model and personal goals
• Initially driven by the potential for deal flow and raising capital, Shane acknowledges that after 200 episodes, he has covered most of the practical aspects of commercial real estate and development
• Inspired by Rob Dyrdek podcast journey, Shane realizes that their main reason for continuing the podcast is to share his business, investing, and personal philosophies
• The podcast serves as a means to build relationships with like-minded individuals who resonate with Shane's ideas and values while potentially repelling those who disagree
• The podcast has evolved from "how-to" content to selective interviews and cautious sharing of proprietary information

[07:17 - 14:52] Finding Balance and Sharing Insights

• Shane emphasizes the value of sharing personal philosophies and non-negotiables in various aspects of life
• He cautions against sacrificing well-being and relationships for financial goals, highlighting the importance of enjoying the process
• Drawing from experience and mentorship, Shane encourages listeners to align their business model with their desired lifestyle
• Shane t is willing to share insights to help others make informed decisions and avoid mistakes
• Grateful for the support, Shane invites listeners to join him on his ongoing journey

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money 

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.     

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.  

Quotes: 

"The main reason, at least for me, to have a podcast is to be able to share my business investing and personal philosophies." - Shane Melanson

"I think for me personally, number one, I wanna share more of what I'm learning, what I'm doing, and hopefully, you'll find that valuable." - Shane Melanson

Sam Zell is the founder and chairman of Equity Group Investments. He was ranked last year as the 379th richest person in the world, with a fortune of $4.4 billion. I heard Mr. Zell on a recent podcast and couldn't help but jot down some notes. I ended up with 8 pages that I'd like to share on today's podcast.  

Listen to the interview here: https://tim.blog/2020/01/23/sam-zell/

[00:00 - 09:50] Lessons from Sam Zell and Expert Strategies for Investors

• Gaining wisdom from renowned real estate investor Sam Zell as he shares valuable lessons from his journey in commercial real estate
• Strategies to navigate common obstacles faced by aspiring investors, including finding secure properties and raising capital for commercial projects
• Essential concepts for successful investing, including market analysis, risk assessment, and understanding supply and demand dynamics across asset classes
• What is standing between you and your goal

[09:51 - 19:42] Sam Zell's Real Estate Investment Insights: Supply, Competition, and Risk in Focus

• Valuable insights from Sam Zell on understanding supply and demand dynamics, reducing
• He emphasizes the importance of identifying areas with high demand and low supply to maximize investment returns
• Sam highlights the significance of objectively assessing deals, understanding core assumptions, and seeking diverse perspectives to minimize risks associated with emotional attachment and overlook
• Economics 101
• A few questions to ask when getting into a deal

[19:43 - 32:56] Navigating Risks and Building Relationships in Commercial Real Estate Investment

• Shane reflects on the importance of identifying key assumptions in investment deals and emphasizes the need to focus on potential risks rather than just the upside
• He emphasizes the significance of understanding the economics of a deal, including supply and demand dynamics and tenant preferences
• A well-rounded team and diligent information gathering for informed decision-making in commercial real estate is needed

You can connect with me on LinkedIn, follow me on Twitter, and watch my videos on YouTube. If you want to go even deeper into the world of commercial real estate, head over to Shane Melanson, a roadmap to investing in commercial real estate! Get my book Club Syndication - How The Wealthy Invest Their Money 

Visit my website for more information on my services, new book, and my blog.

Follow me on Facebook and Instagram.

LEAVE A REVIEW + help someone invest in commercial real estate with confidence by sharing this episode or clicking here to listen to our previous episodes.     

Follow The Game for Real Estate Developers & Investors Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.  

Tweetable Quote: 

"You don't know what you don't know. I'm more afraid of the person who knows it all versus the person who's asking questions." - Shane Melanson