CRE Clarity Jeremy Goodrich
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- Business
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All successful commercial real estate investors have one thing in common, they make smart decisions quickly. In other words, they have clarity.
This show is all about building that foundation for you. We ask the best investors in the business how they make decisions, how they manage risk, and how they've built their best systems and business plans. If you're a member of a GP team, CRE Clarity starts here.
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How to Buy Industrial CRE, with Tom McCrossin
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Joining us today is Tom McCrossin, an industrial and warehouse investor and owner of New Lane Management. We'll be diving into the world of industrial investing, discussing how to get started, finding the perfect property, and why it's a hot market in 2024.
Learn more about Tom and his story at creclarity.com!
“A lot of people think that all big buildings are manufacturing, but that’s not necessarily true.”
01:00
Tom started his investing journey in 2010 by househacking. He rented out half of his duplex. By 2020, he saw new potential and transitioned to acquiring industrial buildings and warehouses.
The industrial real estate asset class covers a diverse range of properties, each with its own purpose.
Warehouses and distribution buildings: Logistics hubs storing goods before export or distribution.
Manufacturing buildings: These are where industrial work and manufacturing take place.
Flex spaces: The perfect blend, offering smaller warehouse spaces with integrated office areas for increased functionality.
Industrial buildings typically stand tall, with ceilings ranging from 15-17 feet, reaching up to 35 feet!
“In multifamily, you look at the dollar amount per door. In industrial we look at square footage.”
10:22
Tom built a strong relationship with commercial brokers who are helping him find the right building and suitable tenants.
Tom shares his preference for industrial investing over multifamily.
He enjoys collaborating with like-minded business owners, fostering a sense of shared purpose.
The tenants handle maintenance, simplifying the operation for him.
He sees a rising trend of manufacturers relocating to the Midwest, creating new investment opportunities.
“As you go into these bigger deals, you got to have multiple ways that you want to get out if it starts to go South.”
20:23
Tom calls himself the “Junior Warehouse Flipper”. He shares a risky deal that netted him a 185% return in just 7 months.
Tom’s recommendation for new industrial investors is to partner with someone who’s already successfully done a deal. It’s also important to familiarize yourself with the lease language as it’s very different from residential real estate.
Towards the end of the conversation, Tom shares what he’s most excited about in the CRE world right now. While he anticipates a stabilizing CRE market in 2024, he expresses concerns about potential shifts in the manufacturing landscape and their impact on tenant revenue generation.
Finally, Tom shares one point of clarity with the listeners. Focus on maintaining a positive mindset and keep open communication with your tenants. This way you can plan ahead and make the most out of your investments!
About our Guest, Tom McCrossin
For Tom McCrossin, it all started in 2006 at the age of 19 when he purchased a condominium. With the opportunity to join the condo association’s board of directors, Tom learned about large-scale property management. His professional background includes serving as a property manager as well as managing the restoration of fire/water-damaged buildings.
Tom has extensive experience rebuilding homes and renovating buildings, which started in 2010 by buying duplexes with his wife.
The first industrial warehouse acquisition in 2019 inspired the business to buy vacant buildings with tenants in place to lease space once the property is acquired. In 2020 he added a duplex and a single-family home to the portfolio, while 2021 brought the addition of 100,000 square feet of industrial warehouses, along with a duplex and a whole home revitalization in Milwaukee.
Mentioned in the show:
https://newlanemanagement.com/
His LinkedIn
His Instagram
www.shineinsurance.com/reiclarity
The REI Clarity Framework
Need an instant insurance ballpark for your next Multifamil -
The Four Key Members of Your GP Team, with Matt Faircloth
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest is Matt Faircloth, a real estate investor and best-selling BiggerPockets author. Today, we dive deep into the key members of a successful multifamily team, how to scale up from single-family to commercial properties, and how the industry will change in the foreseeable future. You don’t want to miss out on this conversation!
Learn more about Matt and his story at creclarity.com!
“What smaller real estate can teach you so you can graduate up into bigger real estate is tenant relations.”
01:00
Matt is managing thousands of multifamily real estate units. At the beginning of our conversation, he shares his insights about the differences between residential and commercial real estate investing. While larger apartment complexes of 50-100 units offer more diverse income streams, the fundamentals remain consistent.
Matt shares some value add strategies like pet fees, laundry machines, or even trash valet. He also recommends renter’s insurance as a value add, as it is beneficial for both the owner and the tenant.
“The four seats in the GP are the Hunter, the Brain, the Money, and the Hammer.”
12:08
Matt delves into the critical roles within a GP team, emphasizing the importance of recognizing each member's unique talents.
He identifies 4 key personality types, each suited to a specific role:
The Hunter: These types of people are good at acquisition. They are adept connectors, closers, and negotiators.
The Brain: They excel at analyzing deals and running the numbers, making them suitable for the underwriter role.
The Money: They are more extroverted and good at sales, so they should assemble the debt and raise capital.
The Hammer: This type of personality is great at multitasking and project management. They should be asset managers as they are highly driven to implement and fulfill the business plan.
“I think now investors want stability, some cash flow, and to get through the next couple of years while rates are really high.”
27:25
Towards the end of the episode, Matt discusses how to raise money successfully in today’s market and how to build good relationships with investors. In recent years, the focus has shifted towards cash-flowing deals, reflecting LP investors' preference for short-term gains.
At the end of the conversation, Matt shares what he’s most excited about in the CRE world right now. He looks forward to the impending change in the industry. There will be a repositioning in America’s real estate, creating many opportunities for creative real estate investors. The innovation will also change many of the asset classes we’re familiar with now. However, Matt expresses concern that the current polarization in politics may destabilize the country.
Finally, Matt shares one point of clarity with the listeners. “See the opportunities, hop in, and you'll figure it out.”
About our Guest, Matt Faircloth
Matt Faircloth has been a full-time investor since 2005. In that time, he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings. He commands thousands of multifamily units in partnership with millions in passive investor equity, earning him recognition as a trusted authority, regular contributor and podcast guest on BiggerPockets®.
With an active YouTube channel dedicated to educating investors and a bestselling book, "Raising Private Capital: How to Build Your Real Estate Empire with Other People's Money," Matt offers invaluable insights and strategies to elevate your real estate journey.
Mentioned in the show:
www.derosagroup.com/
His LinkedIn
Matt Faircloth - Raising Private Capital
www.shineinsurance.com/reiclarity
The REI Clarity Framework
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions -
Multifamily & Hospitality - Experience Marketing, with John Casmon
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. We have a returning guest today, John Casmon, multifamily syndicator, podcast host, and marketing expert. In our conversation, we talk about the best multifamily markets, how to align your team with your goals, and how to minimize your tenant turnover with event marketing. Join us and get inspired!
Learn more about John and his story at creclarity.com!
“The reason the Midwest is so appealing to me is because it's very stable. It doesn't get too high up when things are great, but it also doesn't get too low at bad times.“
01:00
In the last decade, John has almost exclusively focused on multifamily investments in the stable Midwest markets, particularly cities like Columbus, Cincinnati, Louisville, and Indianapolis. He emphasizes the importance of evaluating market fundamentals and considering factors like population growth, job market strength, and rental market trends before making investment decisions.
John explains that in 2023 the most amount of new units come to the market in the last 36 years and 2024 is expected to surpass that number. This trend forces rents to compress.
“With my team, we're all aligned with our goals. They're clear on what success means to me, and our strategies and goals are based on that.”
08:42
John loves multifamily but he’s looking into different asset classes as well, like boutique hotels or residential assisted living. His goal is to create memorable experiences for his tenants by focusing on community and organizing community events. This mentality stems from John’s event marketing background and is leading to remarkably low tenant turnover.
John is very clear on what success means to him, and his team has to be aligned in their goals. He primarily focuses on the NOI, and the compensations are tied to that as well.
“I'm excited about the overall market dynamics because it's a great time to grow.”
30:48
Towards the end of the conversation, John shares what he’s looking forward to in 2024. He’s excited about new opportunities. In the last couple of years, it was challenging to come across good deals, but he sees 2024 as a year of opportunity, noting that investors are returning to fundamentals, making it easier to identify cash-flowing deals.
Finally, John shares one point of clarity with the listeners. Understanding goals and visions is key to clarity and success. Make sure your investing strategy aligns with your actual goal. That's going to help you get the most clarity.
About our Guest, John Casmon
John Casmon is a real estate entrepreneur, who has partnered with busy professionals to invest in over $100 million worth of apartments. John also consults active multifamily investors to help them start or grow their business. He hosts the Multifamily Insights podcast (formerly Target Market Insights) and is the co-creator of the Midwest Real Estate Networking Summit. Prior to becoming a full-time investor, John worked in corporate America, overseeing marketing campaigns for General Motors, Nike and Coors Light.
Mentioned in the show:
https://www.casmoncapital.com/
His LinkedIn
Shineinsurance.com
www.crerisk.com
Jeremy’s LinkedIn
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
Special thanks to John Casmon for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts
· While you there, please RATE & REVIEW the show
· SHARE with friends
· Finally, please, JOIN the CRE Clarity Facebook Group
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Financing NNN Deals, with Miguel Jauregui
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. In this episode, we delve into the net lease investment space with expert guest Miguel Jauregui. From mastering tenant selection to navigating the current lending landscape, Miguel shares valuable insights you don’t want to miss out on.
Learn more about Miguel and his story at creclarity.com!
“Some of those Amazon-proof businesses are where people want to be today.”
01:04
Miguel is specialized in the net lease asset class. He’s drawn to this asset class because of its lower management responsibilities and long-term stability.
Miguel explains some hurdles new investors should understand about the net lease investment space.
Understand the lease and the tenant.
Choose tenants with a strong credit profile and high FICO score.
Be prepared for a potential vacancy if you’re investing in a single-tenant property.
“The state matters. The city matters. It's something that you have to consistently consider because you're gonna see different cap rates in different places.”
11:34
Miguel is a debt expert. He shares his best advice on putting together the best debt stack for a property.
Location matters. Don't solely base your decision on the tenant.
Always run your deals through a financing professional, especially in today's volatile lending market.
Build a strong profile and have a well-organized PFS.
“The bank is in the business of doing loans, not declining loans. They need to do loans, so be transparent with them.”
21:45
Toward the end of the episode, Miguel talks about how to navigate the lending process. The key is to be transparent with the lenders. Hiding any issues can ruin your long-term relationship with them.
There are still a lot of opportunities in today’s market. View high interest rates or potential vacancies as opportunities to find value and negotiate favorable terms.
Miguel thinks that the market may be near its bottom. He anticipates market stabilization and potential improvement as interest rates decrease.
About our guest, Miguel Jauregui
Miguel has over ten years of real estate experience, developing his career from an analyst to his current role leading the capital markets team. Before joining SAB Capital, Miguel worked as a CRE Relationship Manager for Wells Fargo, as a Director of Investment Sales for Besen Partners, and was the NYC Co-Lead for Greysteel. In these roles, Miguel worked in multiple areas of the industry where he monitored over $170 million of real estate assets, brokered over $200 million of deals throughout New York City, and created relationships with capital market partners to support and educate his investor clients properly.
Mentioned in the show:
His LinkedIn
Shineinsurance.com
www.shineinsurance.com/managing-commercial-real-estate-risk
Jeremy’s LinkedIn
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
Special thanks to Miguel Jauregui for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts
· While you there, please RATE & REVIEW the show
· SHARE with friends
· Finally, please, JOIN the CRE Clarity Facebook Group
Then, please share the show with whoever you think it will inspire.
Until the next time, We truly appreciate you listening.
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Always Underwrite to an 8 CAP, with Shannon Robnett
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest is Shannon Robnett, a real estate developer and syndicator with over 35 years of experience. Shannon shares his advice on becoming a successful syndicator, selecting top-notch service providers, and managing risk in the current market. You don't want to miss out on this episode!
Learn more about Shannon and his story at shineinsurance.com/managing-commercial-real-estate-risk!
“I don't like paying taxes. I'm very patriotic, but to me, that's not a patriotic duty.“
01:13
Shannon is a fourth-generation realtor. For a while, he didn’t want to work in real estate, however, after completing college, he recognized the immense financial potential within the industry.
Over the course of his 35-year career, Shannon has taken on various roles, including overseeing construction projects, working as a developer and multifamily asset manager, and investing in many deals. He started syndicating in the last few years.
“The first thing that I try and do when I talk with an investor is make sure that they understand who they are.”
06:23
Shannon shares his best pieces of advice on how to become a successful syndicator.
Find a mentor and work up to your goals slowly but steadily.
Understand what kind of investor you are, how high your risk tolerance is, and what type of deals fit your lifestyle.
If you've lost money, figure out why, and don't do that again.
“When you're underwriting correctly, if everybody's doing it, it’s probably a really good time to not be doing it.”
20:40
Shannon shares his insights on selecting top-notch service providers while minimizing associated risks within your team. His advice is to prioritize expertise and experience over cost. Also, always think at a higher level about your business and look for the most dedicated service providers with good track records.
Towards the end of the episode, Shannon shares his risk mitigation strategies in the current market. He’s always managed risk from an 8-cap standpoint. If he can’t get an 8-cap on the investment, he won't pursue it. He’s emphasizing not being influenced by the market and having a solid underwriting strategy.
About our guest, Shannon Robnett
Shannon is a Real Estate Developer and Syndicator with a principal focus on Multifamily and Industrial real estate in the greater Boise area. His accomplishments include:
Involved in Boise Real Estate Market for 35+ years
2nd Generation Builder & Developer
4th Generation Realtor
Involved in over $250MM in construction projects ranging from multi-family, office buildings, and municipal buildings to schools, industrial projects, and mini storage
A history of over $140MM in successful developments
Has under management over $100MM with a wide range of investors
Mentioned in the show:
shannonrobnett.com
Robnett's Real Estate Rundown
His LinkedIn
Shineinsurance.com
www.shineinsurance.com/managing-commercial-real-estate-risk
Jeremy’s LinkedIn
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
Special thanks to Shannon Robnett for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts
· While you there, please RATE & REVIEW the show
· SHARE with friends
· Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group
Then, please share the show with whoever you think it will inspire.
Until the next time, We truly appreciate you listening.
Need the CRE Insurance Guy? -
How Integrity Led Jaques Bazinet to Over 7500 Units Managed
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Jacques Bazinet, a mammoth in the CRE world, with over 7500 units under his management. Listen in as we delve into the topic of manifesting who you want to be in your career, understanding the significance of your team as your key asset in the real estate business, and navigating the current multifamily downturn by identifying lucrative investment markets. This episode is a must-listen!
Learn more about Jacques and his story at shineinsurance.com/managing-commercial-real-estate-risk!
“Mental creation precedes physical creation.”
02:09
Jacques started his career in the training and development field alongside Stephen Covey. However, his passion for commercial real estate eventually led him to pursue it full-time, and now he is the COO of Tallos Holdings.
He talks about Stephen Covey’s famous book, The Seven Habits of Highly Effective People, and highlights the most important lessons from it.
Have a clear framework for what you want to achieve mentally. Begin with the end in mind.
Have high level of integrity with yourself before extending that same level of integrity to others.
Before beginning to manifest your desires, figure out who you want to be and what you stand for in life.
“Organizations are perfectly aligned to get the result they're getting.”
08:37
Jacques talks about the 50% rule. According to this rule, 50% of the information you hear in your industry is false. His advice is to prioritize your integrity and truth-seeking abilities to discern the factual information from the misinformation.
Drawing from this principle, Jacques shares valuable advice on collecting accurate information and managing real estate risks effectively.
Work with people who have more experience than you. This gives you the flexibility to do a lot more.
Start creating a reality where you're seeking answers from others, welcoming their answers, and trying them out. Be curious and willing to learn.
“I think a life of integrity is like several lives of moving forward without integrity.”
19:35
Jacques offers insights on managing risks in large multifamily projects. He emphasizes that being trustworthy attracts trustworthiness, and investors seeking to build relationships with developers, engineers, or other project-related people should prioritize building trust through their actions.
Towards the end of the episode, Jacques talks about the growing inventory and decreasing occupancy in multifamily from a builder’s perspective. He shares his best pieces of advice to find the right market.
Build in the top five cities and in the number one sub-market within those top five cities.
Build a class A product that is affordable.
Choose an area where there might be oversupply in the general market, but not within the sub-market that you're in.
Jacques’ prediction is that the general market will be much more stable in the next 2 years.
About our guest, Jacques Bazinet
Jacques Bazinet serves as Chief Operations Officer of Talos Holdings. With over 30 years of experience in operations and 25 years of experience in human performance, Jacques brings a unique perspective and ability to assist Talos Holdings in achieving its overall corporate vision. With executive and director roles at companies like Franklin Covey and InsideOut Development, Jacques has been instrumental in helping 10x revenues while also providing consulting, strategy, and a clear vision for 98 Fortune 1000 companies. In addition to assisting businesses to thrive, Jacques has a personal goal to create environments that foster personal and professional growth for residents of Talos Holdings' developments, yielding maximum, consistent returns for investors.
Mentioned in the show:
https://www.talosres.com/
His LinkedIn
Shineinsurance.com
www.shineinsurance.com/managin
Customer Reviews
Love your show man!
The host is not just well-versed in his subjects but also genuinely enthusiastic, turning the learning process into an engaging and fun experience.
Very knowledgeable and walks the walk
Too many times podcasters just talk the talk but this podcast and their guests are actually doing it! Great topics and easy to listen to. I especially liked the episode on apartment investing and maybe I have not missed the boat on investing in that asset class!
Excellent interview
Enjoyed being a guest on your show. Super questions and great conversational interview, brought out the key items people need to learn to retire early with passive cash flow!