151 episodes

Getting started with Commercial Real Estate Investing, or an experienced investor? This is a weekly podcast on the steps that I take to make my Commercial Real Estate investments (Retail, Office, Self Storage, etc) including successes and lessons learned. We cover advanced techniques for purchasing, operating, and exiting your properties, from the best people in the industry. You will learn everything you need to know about real estate investing. We are based in San Francisco / Silicon Valley and also cover how technology affects Commercial Real Estate, and how you can stay ahead of the game. Support this podcast: https://anchor.fm/best-commercial-retail-real-estate-investing-advice-ever/support

Commercial Real Estate Investing From A-Z Steffany Boldrini

    • Business
    • 4.9 • 130 Ratings

Getting started with Commercial Real Estate Investing, or an experienced investor? This is a weekly podcast on the steps that I take to make my Commercial Real Estate investments (Retail, Office, Self Storage, etc) including successes and lessons learned. We cover advanced techniques for purchasing, operating, and exiting your properties, from the best people in the industry. You will learn everything you need to know about real estate investing. We are based in San Francisco / Silicon Valley and also cover how technology affects Commercial Real Estate, and how you can stay ahead of the game. Support this podcast: https://anchor.fm/best-commercial-retail-real-estate-investing-advice-ever/support

    How to Find, Buy & Exit a Retail Property

    How to Find, Buy & Exit a Retail Property

    How to find a retail deal, negotiate, buy, develop all while dealing with all the curveballs that are thrown at you? Beth Azor, CEO of Azor Advisory Services, has been investing in retail for the last 36 years and shares one particular deal from beginning to end.

    Read this entire interview here: bit.ly/3kFdS5R

    Let's talk about a deal of yours, how did you find it and what happened throughout the deal if you still own it?
    I'm going to talk about B&B Plaza. I was at a City Commission meeting and they outlawed strip clubs, immediately my brain went to a strip club on Main and Main. It was going to happen 24 months from then. The next morning, I look up the tax rules on the address of the strip club and I found out this 80-year-old couple, I called them and said, I'm calling you about your building where Eden's nightclub is located, last night at the town of Davies commission meeting, they outlawed strip clubs, so 24 months from now, there will not be a strip club there, would you like to sell me your building? They said, no, we don't believe you, we get $10,000 per month in cash from the strip club. I sent them the minutes of the meeting, we started having a dialogue and they were not jumping up and down to sell me the building.

    The two-year mark comes, the strip club closes, and exactly my prediction happens, four competitors of mine swoop in, they were very aggressive with these people because they didn't understand them, and didn't know them. I got a call from their son. They had been very ill, and that they're definitely going to sell and I'm coming to town to meet five of you. I said okay, can I be the last person? He said yes, my parents really liked you so you have the jump ball. The next day he calls and says if you pay 3.4 million, it's yours. I said done. He says, how fast can you close? I said 24 hours. The reason why I could afford to pay more is because I had great relationships in the market. I had called a friend of mine who had a property across the street and she had just done a renewal for 5,000 square feet with a national company at $50 a square foot. My two shopping centers down the street: one was at $30 and one was $40. The fact that she had $50 rent and it was behind our parcels, was very good market intel. 

    I went through three project managers to build it. After we built it, everything was opened, Starbucks, Blaze Pizza, Select Comfort. A day before Verizon moved in, they told us that there is no RTU's in the building (air conditioner units). My air conditioning guy puts the air conditioning units on the roof, he doesn't pull a permit and he gets caught. I get a call from the city, with whom I have a phenomenal relationship saying you have an illegal vendor on your roof and he doesn't have insurance. I had to pay $27,000 in late fees to Verizon and I had penalties from the city because I tried to do it without a permit for speed purposes. It was a very expensive lesson.

    My NOI today is $660k, on average $66 a square foot, it's probably worth 12 to 14 million, we paid 3.4 million, the construction was probably another 4 million.

    Join the Women's Real Estate Investing Summit here: bit.ly/3JaGeiE
    Beth Azor
    Twitter
    Instagram



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    • 25 min
    What is The State of House Flipping in This Economy?

    What is The State of House Flipping in This Economy?

    What is happening in the flipping world today? How do you prepare as a flipper when the rates are high? How to buy deals with future expectations being low? Elisa Covington, founder and CEO of Transform Real Estate Investments shares her insights.

    Read this entire interview here: bit.ly/3iq0BgU

    What is happening in the flipping world today?
    It's interesting that people perceive what's happening in the housing market and the interest rate, that the market is tanking and nobody is buying homes anymore which I find not accurate based on my own experience. I've sold about nine homes this year, three homes at the beginning of the year when the market was really good and then the other six homes after the interest rate started increasing and the market declined.

    My experience hasn't been that terrible. The houses I flipped actually were able to sell on the market within a week or two. And, in most cases, the sale prices were at my expectation or even above my expectation. I have one home that's been sitting on the market for maybe two months now. Most of my experience has been positive which is contrary to popular belief. There are still a lot of buyers out there and I think the Bay Area market may be a little unique, too, because there's just not a lot of inventory, and even though the interest rates are high, buyers are taking a step back because of the limited inventory, but the supply and demand haven’t really shifted that much. Most agents that I work with, the top real estate agents in the Bay Area market, are still categorizing it as a sellers market.

    How are you able to buy deals with future expectations being low when it has been very competitive up until now?
    In this market, selling is harder because buyers are taking a step back because of the higher interest rate and the fear of a recession. Because buyers are taking a step back, it's actually really easy to get a good deal because there's not as much competition as before, especially with my target acquisitions, which are homes that are fixer-uppers that are in very poor condition. In a normal market, some buyers may say, we can afford a remodeled home so we're going to buy a home that's in a poor condition for a little less. And the difference in prices between a remodeled home and a fixer-upper is not as significant in a hot market because there's not much inventory and there's a lot of competition. But when the market is as slow as it is now, buyers are focused on remodeled homes, nicer homes, the fixer-uppers get overlooked, they tend to sit on the market and sell for a much lower price than the homes that have been remodeled. The difference in prices between those two types of homes actually has become more significant.

    In this market, it is easier to find good deals. That's the beauty of house flipping, we're on both sides of the market. We need to purchase a home to flip it, and then after the flip is done, we have to sell the home so we are both the buyer and the seller. When the market changes, if the market is hot, it's going to make it super easy to sell, you're going to sell for more than you are expecting and you will do fine but when the market is declining.

    Elisa Covington
    instagram.com/transformrealestate
    www.youtube.com/@TransformRealEstate

    Subscribe to our newsletter here: www.montecarlorei.com


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    • 18 min
    Setting Goals for the New Year, How to Organize Your Day and When to Hire a Full Time VA

    Setting Goals for the New Year, How to Organize Your Day and When to Hire a Full Time VA

    Today we'll go over some tips for setting your real estate goals for the year, how to look at them on a daily, weekly, monthly and on a yearly basis, how to organize your day, and when is the optimal time to hire a full time VA. Bronson Hill, principal at Bronson Equity has been in the real estate investment world for the last four years, he has raised over $30M and shares his insights.

    You can read this entire episode here: bit.ly/3VTpvTL

    Last year you raised an incredible amount of money, what do you think was the biggest step you took in the last four years to get yourself to where you are right now?
    I think the biggest thing that happened was I made the decision that I was going to leave my job within a few years, I was going to figure out a way to do it. By doing that, your subconscious tries to figure it out, you go to events, meet the people, make connections. And in the process, I started a meet up in Southern California, and found my first investor there. I'd had so many calls with friends and family to raise money for real estate deals, and zero invested, it was so frustrating stuff, but this guy who I'd never met before, who simply saw me at the front of the room, he didn't see me as an expert, but as a leader in the space. The amazing thing is when you're trying to get started, it's so important that you try to find a way to add value. You're doing it by this podcast, other people are doing it by going to events and trying to find a way to help people on their journey. We create a lot of content now, emails, videos, we have our YouTube channel and all types of stuff to create value for people.

    You have a specific amount of days that you're completely disconnecting for the year. Can you tell me a little bit about that? And how do you do it?
    That's new for me. I'm always working and doing things, even on a day off. I'm a part of a coaching group now and they're saying that it's really good to have a certain number of free days, and that is defined as you don't answer an email, you don't pick up the phone. When somebody calls for business, you're out of the office. And it's so hard to do. But if you're an entrepreneur, you can hopefully have team members that can help, you train your people, you work with your partners, your investors, etc. I don't pick up the phone on the weekends unless it's an emergency. My goal this year is 115 free days where I don't do any work on those days.

    A lot of times when people decide to take a week, or a month off, and they just really let the team take care of the business, more often than not, the company actually does way better than when they were there watching over everybody.

    Is there anything else that is important to share regarding goal setting?
    You have to have written goals, when you write it down, you're actually creating something. And something doesn't exist unless you create it, you either speak it, you write it down. And put that up somewhere, I have my goals typed up with my mission statement, I laminated on the backside and there are pictures of what those goals look like. And I read those every morning. Keeping that in front of you is really important. I encourage anybody who's listening who wants to change their life, start creating the goals and keeping them in front of you all the time.

    Yeah,Bronson Hill
    www.bronsonequity.com
    VA finder: www.virtualstafffinder.com
    zero tax summit, get notified by joining our newsletter here: www.montecarlorei.com


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    • 20 min
    What's Happening With Hotels in This Economy? Which Markets Are Thriving? What Type of Hotel Should You Invest In?

    What's Happening With Hotels in This Economy? Which Markets Are Thriving? What Type of Hotel Should You Invest In?

    What’s going on with hotels in this economy? Which markets are they thriving now? What are the benefits of investing and operating hotels? What are some types of hotels that may be great investments today? Julie Surago, Vice President at Olive Tree Holdings shares her insights.

    You can read this entire interview here: bit.ly/3G2PLVO

    What is going on with hotels today?
    Through COVID, you would expect that hotels got hit the most because of the stoppage and most travel both business leisure and international group, and yet hotels were able to weather the storm based because of the PPP loans that were given out by the government. And each hotel employs a fairly large number of people anywhere from Best Western which has 20 employees up to 1000, and Marriott which might have 200 employees and they took advantage of that. So, there wasn’t a lot of distress in the market that we really expected to see. In fact, my firm was going to try to find some opportunities in the hospitality and real estate investment market, but it never really transpired.

    What are some of the benefits of investing and operating hotels? It's very hands-on and you have people moving in and out on a daily basis, but are the returns better?
    The biggest challenge with hotels today is staffing. Every industry is having trouble with staffing, especially the hospitality industry, hotels, and restaurants because there are a lot of turnovers and there are not as many international H-1B1 visas. However, the biggest benefit of a hotel versus any other type of real estate class is in times of inflation, when the value of the dollar is going up, hotels can react quickly. They set their rates every single day so you'll notice when you look at, not just hotels, but airlines, the prices are going up pretty significantly along with everything else. Whereas, if you have a multifamily lease or an office lease, retail, or industrial, some of those either get reset once a year or get reset every five years which is a lot harder to react to inflation.

    If you were to purchase a hotel today, what are some of the major things you would be looking for?
    I look for upside. If you're looking at a hotel, maybe it has a brand that is strong, but there should be an opportunity to "upmarket" something. What has been attractive for hotel investors is the ability to assume a loan at a fixed interest rate. There are a lot of hotels, particularly midscale hotels with limited service, that are on long-term CMBS loans and maybe they have a fixed interest rate of 4.5% which is extremely attractive right now. Another thing that has been attractive for people and also for some sellers is the big firms that have the ability to do so are offering seller financing at terms lower than what you can find in the market. I'm seeing hotels that were not attractive buys five years ago, but sellers are able to sell them now because they can offer that financing at cheaper returns, which really improves the upside, at least in comparison to what you can find.

    What kind of hotel size would you look for?
    I'm really into limited-service hotels. The resorts and full service are very attractive and fun to own but limited service usually is easier to operate. Fewer employees and a lot cheaper to buy. Another thing that is always been attractive to me is to buy nicer economy hotels. I think those weather the storm really well as far as any kind of economic disruption, whether that be building like Qantas or Wyndham micro hotels,

    Julie Surago
    julie.surago@gmail.com


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    • 16 min
    Do You Compare Yourself With Other Real Estate Investors?

    Do You Compare Yourself With Other Real Estate Investors?

    Do you feel like you're way behind other investors regarding your real estate goals? Do you look at others and sometimes feel like you haven't made much progress compared to them? Today I'm going to remind you to just focus on your journey because you don't know what others are really going through!

    You can read this entire episode here: bit.ly/3v40ASh
    Watch the detailed explanation about Matt Onofrio's $35M alleged fraud here: bit.ly/3hBSk99

    With the year coming to an end, and a brand new one starting, I thought it would be useful to talk about being happy with our journey, not comparing ourselves with others. There's something happening right now in the real estate industry with a particular person that a lot of operators were looking up to him, he was growing incredibly quickly, in a very short time, he was hanging out with the who's who of real estate, and he was even writing a book for Bigger Pockets. He had just started investing in real estate for the very first time, three to four years ago. It turns that, as of now, everything may have been a fraud. 

    When I did my own startup over a decade ago, it was not only one of the most difficult things that I have done, but I also learned that it's so important for us to focus on our own things and never worry about "the competition" and the fact that all of our competitors are doing so much better than us. One of them copied everything that we were doing and raised millions of dollars. The other also raised a lot more millions of dollars. The one that copied us at the end of the day ended up going out of business. And the other one that had raised even more millions of dollars, the CEO ended up terminating his life because he had purchased a ton of inventory that he was not going to be able to sell. These people were on the news, they were on the tech startup blog posts being written about nonstop. The CEO that unalived himself was hanging out with top people in the tech industry, including the Zappos founder, and a few other people. So it was very easy to be thinking that I was so far behind them. Look at all these amazing connections that this person has, what now? 

    If you are worried about the competition, you are wasting precious time. And my point is not about the competition with regards to real estate, but it's more on the comparison aspect of it, how we can easily think that this other person is so much further ahead than me, what am I doing wrong? There was this nurse guy that at least two people asked me to interview him this year. In the last four years, which is exactly the same amount of time that I have been doing real estate full time, he managed to be a "real estate mogul" worth $160 million.

    At the end of 2019 up until now that this person started from zero investments to being worth $160 million, to being now investigated for fraud. Before this fraud investigation came along, the thought did cross my mind, what am I doing wrong? I am far behind his numbers in the same four years. I did reach out to him twice asking him to come over the podcast and he never responded. I was really more curious on how did you go from zero to this much in just four years. This is fantastic. Fast forward to now, just two weeks ago, I get my daily real estate digest and it says that Matt Onofrio, this person that was previously a nurse and became a very successful real estate investor is now being investigated by the SEC for fraud. And I thought... nurse... that sounds so familiar. And it turned out that he was the person that everybody has been telling me about that had an amazing story. It turned out that it was not so amazing, after all. He is now facing federal bank fraud charges.


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    • 14 min
    What is the State of Commercial Real Estate? Which Asset Class Will Hurt the Most Next Year?

    What is the State of Commercial Real Estate? Which Asset Class Will Hurt the Most Next Year?

    What is the state of commercial real estate? Who will be selling next year in 2023? Which asset class do we think will hurt the most next year? Deidre Wollard, a writer and editor at The Motley Fool will share her insights.

    You can read this entire episode here: bit.ly/3uxdx70

    What is the state of commercial real estate today?
    It is an interesting time. It has always an interesting time in real estate. Right now, I feel like everybody is waiting for something to happen, which is really interesting. We're certainly seeing that on the residential side, because the housing market is sort of on pause. And we are seeing that on the commercial side as well, interest rates are so high that people can't get access to capital the way they could. And there's that little uncertainty about what's next in the overall economic sector. Are we headed into a recession? Consumers are spending a lot right now, is that going to shift? All of that uncertainty is leading to a bit of a lack of deal flow from what I've seen.

    Which asset class do you think will be the one that is most hurt next year?
    I think it continues to be office, office has really struggled. We are also starting to see a little bit of a weakness in industrial. That has been happening ever since Amazon about three or four months ago made a statement about looking at their warehouse spacing, we have seen that sort of fall throughout the industry. So there's a little bit of a weakness starting to happen in industrial. Overall, it's nothing to worry about. But with office, the question I keep asking myself is, is this a permanent shift? And I think my viewpoint on that has changed throughout the cycle as different things just keep happening. Because the employers are starting to have more of the power, you're getting more and more employers demanding people to go back to the office. That is one reason that I'm getting a little bit optimistic about office.

    When you invest in your next deal, what asset class is more interesting to you right now and why?
    Multifamily is forever interesting, because we're never going to run out of need for it. And it's not as much driven by what happens with the economy. Rent prices right now are definitely stabilizing, the question though is where are we overbuilding and that's the thing that's really important to watch because we saw so much activity flow into the Sunbelt, both before the pandemic and during, and that's moderating a bit. You see some of these hot markets get a little different and you start to wonder, are we building too much in Austin, Texas, for example, and start to think about, where's the money going next? Where are the people going next? That I think that is the puzzle that is most interesting.

    I think hotels is an interesting one to follow. Because when we look at consumer behavior, everybody spent on goods during a portion of the pandemic, then everybody switched over to experiences, and that changed the forecast of hospitality. The longer term trend that I'm watching there that I think is really interesting, is what we saw with Airbnb and long term stays, they saw their 28 day and higher stays keep growing.They announced recently that they're now letting apartment renters rent on Airbnb, which is interesting. At the same time, you've got Marriott, that just announced Apartments by Bonvoy, which is basically, medium term rentals of more apartment style units. There's something happening there with medium term 30 to 90 days, stays, I think that's an area to keep an eye on.

    Deidre Wollard at The Motley Fool
    twitter.com/deidre


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    • 11 min

Customer Reviews

4.9 out of 5
130 Ratings

130 Ratings

Bruce Eaton ,

Episodes on Taxes

Your read our minds!! No one talks about specific tax benefits we can take advantage of for different kinds of commercial real estate investing. This is a brilliant topic to explore and share. Thank you in advance!

JillHut ,

Love this podcast

Love this podcast. I feel like I’m listening to a genuine friend give advice on investing. She has fantastic guests on the show that are relevant in the commercial space. Thanks for hosting a great podcast!

PaigeBPodcasting ,

Valuable Content!

Steffany is very knowledgable about the commercial real estate industry and that knowledge spills out in this podcast! I learn so much from every episode. Can’t recommend it enough!

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