Commercial Conversations Over Coffee

Debt should be treated like any other tool in your real estate arsenal. Either it will help you get the job done faster, or it could make your work far more difficult. Tools are only as good as the user that utilizes them. So, today Bruce and Tyler are talking about how to use debt when investing in real estate and if you should ever own anything outright.

We get asked all the time - "should I start with a smaller project that I can handle on my own or go for something bigger?" We all know that buying a bigger project can be more stable, bring in better cash flow, and will be more valuable in the long-term. But it's not that easy. Here's how we recommend getting started.

Tyler dives into the first indication that he ever did - A 12,000 square-foot office building in South Nashville.

How well you can underwrite an apartment complex will likely determine whether your investment will be a massive success or a colossal failure. Today, we're diving into the Apt-Guy Multifamily Underwriting Spreadsheet to show how Bruce underwrites his multifamily investments, how to handle rent growth, determining all of the expenses you need to keep in mind, and how to know whether a deal makes sense or not. Get The Commercial / Multifamily Underwriting Models: https://bit.ly/UnderwritingModels

Real estate syndications can be structured in a wide variety of ways, from straight equity splits to preferred returns, waterfalls, and so much more. Tyler and Bruce dive into the various ways you could set up your syndication, 506(b) vs 506(c) investments, and what the tax implications could be for you as the general or limited partners.

Real estate syndications can be structured in a wide variety of ways, from straight equity splits to preferred returns, waterfalls, and so much more. Tyler and Bruce dive into the various ways you could set up your syndication, 506(b) vs 506(c) investments, and what the tax implications could be for you as the general or limited partners.

How well you can underwrite an apartment complex will likely determine whether your investment will be a massive success or a colossal failure. Today, we're diving into the Apt-Guy Multifamily Underwriting Spreadsheet to show how Bruce underwrites his multifamily investments, how to handle rent growth, determining all of the expenses you need to keep in mind, and how to know whether a deal makes sense or not. Get The Commercial / Multifamily Underwriting Models: https://bit.ly/UnderwritingModels

Raising capital for real estate investments can be nerve-racking, especially if it's your first cash raise. How much money should you raise? Hint: it's not just the down payment. You have operating expenses, closing expenses, and more - not to mention the fact that you'll likely have investors fall out throughout the process. You need to over raise! But by how much? Guess you'll just have to listen to Bruce and Tyler debate that on this week's episode.

If you're looking to do your first commercial or multifamily real estate investment, it would be wise to learn about the whole process. From site selection, to underwriting, to pitching to investors - there's quite a bit of work that needs to be done (and it all falls on your shoulders!). Here's how Tyler and Bruce would recommend you prepare yourself for that first deal, both from the knowledge and mindset perspectives. Also - find a mentor or partner that knows how to do it. Trust us. Get The Commercial / Multifamily Underwriting Models: https://bit.ly/UnderwritingModels​ Get Tyler's Due Diligence Spreadsheet: http://eepurl.com/gRMpZj

Raising capital can be one of the most complicated, yet reward aspects of investing in commercial and multifamily real estate. If you haven't raised money from private investors before, it can certainly be a challenge - it's a totally different world. Bruce and Tyler discuss how they approach the capital raising process, how to build relationships with investors, and the tips Bruce has for raising tens of millions of dollars from investors.

Real estate syndication is one of the best ways of building wealth, both as a sponsor and as an investor, in commercial and multifamily real estate. Bruce and Tyler dive into what real estate syndications are (and aren't), how real estate syndications work, and the different ways they've seen for structuring real estate syndications.

Commercial and multifamily brokers are often the gatekeepers to the best deals within your market. After all - they're pounding the pavement day in and day out to build relationships with sellers in order to find their next commission check. As an investor, building a relationship with the top brokers can be the easiest way for you to find deals but it's not always easy to get on their radar. Tyler and Bruce discuss how to build relationships with commercial and multifamily brokers so that you can tap into these opportunities.Links Mentioned: https://taxfoundation.org/coronavirus-relief-bill-stimulus-check/ https://www.nar.realtor/coronavirus/covid-19-relief-package-includes-help-for-business-and-property-owners

Tyler and Bruce's stance on single-family investing may be a bit controversial - they'll never do it. And there are many reasons why: scalability, cash flow, and long-term appreciation, just to name a few. In this episode, Tyler and Bruce explain their reasoning for avoiding single-family investments altogether, why they only invest in commercial and multifamily real estate, and how you can skip SFH investments, too.Links Mentioned: https://taxfoundation.org/coronavirus-relief-bill-stimulus-check/ https://www.nar.realtor/coronavirus/covid-19-relief-package-includes-help-for-business-and-property-owners

The latest coronavirus stimulus package, nicknamed "Coronabus," is almost ~6,000 pages. If passed into law, the bill will include something for almost every business (including real estate!): PPP, PPP2, EIDL, Grants, Tax Credits, Tax Deferment, and Tax Planning Opportunities. The bill gets its shortened name from "Coronavirus Relief & Omnibus Agreement. Some of the best news is that expenses that have been, or will be forgiven for PPP are now fully deductible and there's a second round of PPP for eligible groups. Some industries can get up to 3.5x monthly payroll and some may even qualify for funds up to 45% of 2019 revenues. Today, Bruce and Tyler are diving into the bill (at least what they've been able to cover so far) to discuss how this relief bill may affect commercial & multifamily real estate. Links Mentioned: https://taxfoundation.org/coronavirus-relief-bill-stimulus-check/ https://www.nar.realtor/coronavirus/covid-19-relief-package-includes-help-for-business-and-property-owners

Coronavirus has had a significant impact on commercial and multifamily real estate. The shutdowns brought a massive amount of uncertainty for many product types: many multifamily tenants were laid off or furloughed and unable to pay rent, commercial businesses were forced to close their doors to prevent more spreading of the disease, and these changes caused quite a bit of stress for investors. While there are some clear losers arising from Coronavirus, there are many new, established, and rapidly emerging trends catching on that will thrive in 2021, such as ghost kitchens, last-mile distribution, proptech (property technology), and micro-units. Today, Bruce and Tyler dive into the COVID-19 impact on real estate and the trends, markets, and their outlook for real estate investing in 2021.

In episode 2 of Commercial Conversations over Coffee, we learn more about Tyler and his background, including how he went from working as an in-house leasing broker to owning a commercial brokerage, property management company, and an investment / development firm in Nashville.

Welcome to Episode 1 of Commercial Conversations over Coffee where Apt-Guy, Bruce Petersen, and Tyler Cauble have candid conversations about investing in commercial real estate, raising capital, operating deals, and building generational wealth. Today, we'll be diving into Bruce's background to uncover how he went from working in retail to syndicating 1,000+ multifamily apartment units.