The Commercial Real Estate Investor Podcast

Tyler Cauble
  • 4.9 (49)
  • Investing
  • Weekly

If you want to start investing in commercial real estate, or you're ready to make the switch from residential, this show is for you. I'm Tyler Cauble, a commercial real estate broker, developer, and investor in Nashville, and every week I share what I've learned from buying, building, leasing, and sometimes losing money on commercial deals. We'll talk about how to find deals, run the numbers, get financing, and work with tenants, along with the mistakes I've made so you don't have to. New episodes every Monday and Thursday.

  1. 1d ago

    How to Buy Your First Commercial Property With Little Money Down

    You don't need 25 to 30 percent down to buy your first commercial property. In this episode, I walk through four ways to fund a deal with little money of your own: seller financing, SBA loans, private money, and partners. You'll learn how to find out what a seller really wants, what typical seller financing terms look like, when an SBA loan makes sense, how to keep private money from sinking a deal, and which partnership terms to settle before you close. Key TakeawaysYou may not need 25 to 30% down: Deal structure can matter more than having a large amount of cash. But “little to no money down” doesn’t mean no costs. Earnest money, surveys, environmental reviews, legal fees, and other expenses may still come up. Four ways to fund a deal: I covered seller financing, SBA loans, private money, and partners. The right option depends on the property, your business plans, and what the seller or funders need. Seller financing is negotiable: Find out the seller’s motivation and whether they own the property free and clear. Terms can vary; I described common ranges of 10 to 30% down, 5 to 10% interest, 20 to 30 year amortization, and a balloon in 5 to 10 years. I recommend fixed rather than floating rates. SBA financing requires owner occupancy: I described SBA options for buyers who occupy at least 51% of the property. These loans can reduce the down payment, but involve substantial paperwork and may take time. Treat private money carefully: It can be structured as debt, equity, or a mix, but higher interest, short repayment terms, and deferred payments can create risk. I advise having multiple exit strategies and making sure the repayment plan is realistic. Define partnership terms up front: Agree on roles, ownership and profit splits, fees, voting rights, and the plan for refinancing or selling. Finding and operating a deal can bring value alongside the cash. Be transparent with lenders: Disclose seller financing or other funding arrangements to the primary lender, and check the loan’s requirements and restrictions.

  2. Oct 22

    Commercial Real Estate Leases Explained (NNN, Gross, and Modified Gross)

    Two identical commercial spaces. Same size, same property type, but one is worth $97,222 more because of how the lease is structured. One rents for $14/SF triple net, while the other brings in $18/SF gross. You'd think the higher rent means a better investment, right? Not necessarily. Today, we're breaking down how lease structure impacts your net operating income, cap rate, and ultimately your property's value. We'll also cover three lease terms that may actually be worth accepting lower rent to secure. Because in commercial real estate, it's not just about how much rent you collect. It's about how much income you keep and how predictable that income is. Key TakeawaysThe lease terms—not the label—determine who pays what. Review the responsibilities for property taxes, building insurance, and common area maintenance (CAM). Triple net (NNN): The tenant pays base rent plus its share of taxes, insurance, and CAM. The landlord typically remains responsible for major building elements; an absolute net lease may shift more responsibility to the tenant. Gross and modified gross: In a full-service gross lease, the tenant pays one amount and the landlord covers most operating expenses. Modified gross leases divide expenses according to negotiated terms. Expense increases can create risk. Under a gross lease, rising expenses can reduce the landlord’s net income. NNN leases pass certain expenses through to tenants. The speaker’s preferred structure is modified gross with a base-year expense stop. The landlord covers expenses up to the base-year level; the tenant pays its share of increases above that. Tenants should review CAM terms carefully. Consider caps on controllable expenses, exclusions for items such as capital replacements and leasing commissions, and an audit right to verify charges. Read the detailed clauses and involve an attorney. Clarify who repairs versus replaces items such as the roof, HVAC, and parking lot, and review escalation, assignment, renewal, and permitted-use terms.

    Commercial Real Estate Leases Explained (NNN, Gross, and Modified Gross)

  3. Oct 19

    How Much Will It Cost to Save This Building?

    Four years ago we bought Peerless Mill in Chattanooga: 32 acres, 29 buildings and about 1.5 million square feet. The plan was always to keep every piece of it. In this video I'm walking Building 21 because I'm selling it. Building 21 is 43,000 square feet on about two and a half acres, and the price is $500,000. It's going out of the Peerless Mill partnership and into a new one with Dave and the Greenleaf team, and I'm a partner in both. That puts me on both sides of the deal, so I have to believe the price is right twice, once as the seller and once as the buyer. Here's how we're looking at the deal: Paying for the dirt and getting the building for free A new roof at about $400,000, which costs almost as much as the property About $3,000 an acre per month for the industrial outdoor storage laydown yard, plus around $2 a foot net on the building Roughly $160,000 a year in NOI, which at an 8 cap is about a $2 million value on a $1.5 million basis Going to market well below market rents so lease-up goes faster and we're not carrying the debt for long Why we're bringing in a strategic partner on a project that would take over $100 million to finish Key TakeawaysBuilding 21 is being sold for $500,000 from the existing Peerless Mill partnership into a new partnership with Dave Codre and the Greenleaf team. Tyler remains involved in both partnerships. The sale is intended to help recapitalize Peerless Mill, pay down debt, and fund future development. The deal is primarily about the land. The property includes about 43,000 square feet and 2.5 acres. The partners see the land as valuable for industrial outdoor storage, with the building effectively included at no additional cost. The renovation carries significant cost and scope risks. The roof is estimated at about $400,000, with additional electrical work needed. Tyler is comparing three roofing bids against the same scope and including contingencies in the budget. The leasing plan prioritizes flexibility and quick occupancy. The rectangular building could suit one tenant or be divided among multiple tenants, using the existing columns to guide the layout. The team wants to minimize shared areas because they add operational complexity. The financial plan targets competitive rents and roughly $160,000 in annual NOI. The discussion cites about $2 per square foot net for the building and roughly $7,500 per month for the laydown yard. Tenants would take responsibility for expenses such as utilities and landscaping. The next development phase is expected to start by the end of 2026 or early 2027. The nearly completed self-storage space is awaiting EPB’s transformer installation so it can be fully powered and receive its certificate of occupancy.

    How Much Will It Cost to Save This Building?

  4. Oct 15

    How to Underwrite a Commercial Real Estate Deal (Step-by-Step)

    Would you buy a $400,000 commercial building if the bank told you to bring an extra $27,378 to closing? That's exactly what happened in this example. In today's Office Hours, I'm breaking down how to underwrite a commercial real estate deal from start to finish using a 4,000-square-foot retail strip center. We're going beyond the asking price and advertised cap rate to look at the numbers that actually determine whether a deal works. Here's what we're covering: How to evaluate a commercial property using its actual rent roll Why advertised cap rates don't always tell the full story How vacancy and triple-net (NNN) reimbursements affect your income How to calculate net operating income (NOI) Why debt service coverage ratio (DSCR) determines how much a bank will lend How to calculate cash flow and cash-on-cash returns How to work backward from the financing to determine your offer price The numbers: A $400,000 building advertised at an 8% cap rate actually produces a 7.49% cap rate based on its current income. That difference reduces the available loan from $280,000 to $252,622. The takeaway? The rent roll sets the price. The coverage sets the loan. Whether you're analyzing your first commercial property or looking to sharpen your underwriting skills, this walkthrough will help you approach your next deal with more confidence. Key TakeawaysUnderstand the Four Core Numbers: Learn how income, expenses, net operating income (NOI), and cap rates determine a commercial property's value. Underwrite Actual Income, Not Potential: Base your analysis on current rent collections and occupancy rather than projected income. Verify the Numbers Before Making an Offer: Review rent rolls, leases, operating statements, property taxes, and insurance quotes to avoid costly surprises. Account for All Operating Expenses: Include management fees, reserves, maintenance, and vacancy costs to calculate an accurate NOI. Understand How Cap Rates Impact Value: Learn how tenant quality, lease terms, property condition, and risk influence what investors are willing to pay. Create Value Through Strategic Leasing: Discover how filling vacancies and increasing NOI can significantly increase a property's value without major renovations.

    How to Underwrite a Commercial Real Estate Deal (Step-by-Step)

  5. Oct 8

    How to Analyze a Value-Add Commercial Property (Full Deal Walkthrough)

    Key Takeaways Finding opportunities others overlook: How I identify value-add properties using price per square foot, days on market, location, and redevelopment potential. Estimating renovation costs: How I account for parking limitations, building access, tenant improvements, and construction expenses. Underwriting realistic rental income: How I research comparable properties, estimate lease-up timelines, and factor in vacancy and leasing costs. Structuring financing: Why I pay close attention to loan-to-value ratios, interest-only periods, and carrying reserves. Stress-testing the numbers: How a $50,000 increase in purchase price and changes in financing terms can significantly impact returns. Knowing when a deal works: How I evaluate cash-on-cash returns, debt service coverage, IRR, and equity multiples to decide whether an investment is worth pursuing.

    How to Analyze a Value-Add Commercial Property (Full Deal Walkthrough)

  6. Oct 5

    How to Negotiate a Commercial Real Estate Loan

    Key Takeaways Negotiate the loan, not just the price. Financing terms can have a bigger impact on cash flow than a purchase-price reduction. Interest-only can provide crucial breathing room. In my $2 million building example, 12 months of interest-only payments adds about $31,000 in year-one cash flow and lifts the cash-on-cash return from 3.6% to 7.7%. Use interest-only strategically. The goal is to build reserves or stabilize the property before the higher payments begin—not simply to delay principal payments. Ask for a longer amortization. Moving from a 20-year to a 25-year schedule can lower payments, improve debt service coverage, and increase borrowing capacity. Show lenders how you’ll reduce their risk. A clear lease-up or renovation plan, tenant commitments, or other evidence of stability can strengthen your case. Understand the trade-offs. Interest-only payments and longer amortization can improve near-term cash flow, but they don’t erase the debt—and payments may rise when the interest-only period ends. Consider recourse as your track record grows. Strong assets, experience, and a substantial down payment may help you negotiate less personal liability.

    How to Negotiate a Commercial Real Estate Loan

  7. Sep 28

    Why Buc-ee's Builds $50 Million Gas Stations (Retail Real Estate Strategy)

    Key Takeaways Buc-ee’s is presented as a real-estate and retail business, not just a gas station. Cheap fuel—with reportedly low single-digit margins—brings customers off the highway; the store is where higher-margin sales happen. The in-store experience is central to the model. Private-label products, food, merchandise, and spotless bathrooms are described as ways to convert traffic into sales and build customer loyalty. The speaker estimates store gross margins at around 40%. Scale and ownership matter. The transcript describes stores as roughly 50,000–75,000 square feet, built on large interstate parcels that Buc-ee’s owns rather than leases. The “anchor flywheel” is the real-estate lesson. Buy land near an interchange, create a destination that generates traffic, and surrounding land may become more valuable as development follows. The speaker’s advice is to underwrite the traffic generator, not just the building. There’s a potential investment window—but also real risk. The speaker says announcements can precede openings by 18–24 months, during which nearby land may reprice. But projects can be delayed or rejected, and infrastructure costs and local opposition can undermine the thesis. Operational choices reinforce the target customer. Higher pay is presented as a way to support clean facilities and reliable service; banning semi-trucks is an example of prioritizing family travelers over traffic that doesn’t fit the business.

    Why Buc-ee's Builds $50 Million Gas Stations (Retail Real Estate Strategy)

  8. Sep 21

    How to Fill a Vacant Commercial Building

    Key Takeaways 40% vacancy can cause more than a 40% income hit. In the example, the owner loses rent and must cover operating expenses that vacant tenants previously reimbursed, reducing NOI from $300,000 to $140,000. Vacancy can create serious cash-flow and loan pressure. The example’s DSCR falls to 0.64; the owner may need to contribute about $6,500 per month. The speaker estimates the property needs 80% occupancy to break even and 93% to reach a 1.25 DSCR. Vacancy can sharply reduce the property’s value. At an 8% cap rate, the example’s value falls from $3.75 million when fully leased to $1.75 million based on current income. The speaker’s rule of thumb: each additional dollar of NOI adds about $12.50 in value. Cutting rent to fill space faster can hurt the eventual sale value. In the example, lowering rent from $15 to $13.50 per square foot fills the space sooner and improves near-term cash flow, but lowers the rent roll and results in about $87,000 less five-year profit than waiting. Free rent may be preferable to a permanent rent reduction. Offering six months free while keeping rent at $15 per square foot gives the tenant a similar effective deal, but preserves the stated rent for valuation after the concession ends. Plan for vacancy and avoid being forced to sell. The speaker emphasizes keeping sufficient cash reserves and advises against selling with more than 10% vacancy.

    How to Fill a Vacant Commercial Building
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About

If you want to start investing in commercial real estate, or you're ready to make the switch from residential, this show is for you. I'm Tyler Cauble, a commercial real estate broker, developer, and investor in Nashville, and every week I share what I've learned from buying, building, leasing, and sometimes losing money on commercial deals. We'll talk about how to find deals, run the numbers, get financing, and work with tenants, along with the mistakes I've made so you don't have to. New episodes every Monday and Thursday.

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