The Investing Advantage podcast is devoted to helping real estate investors raise capital and scale. The GOAL of this podcast is to help you start living LIFE on your terms. And the best way to do that is to eliminate any FINANCIAL worries but taking responsibility for your money and how it's invested. I believe if you want to transfer your high income into real NET WORTH and generational WEALTH for you and your family, then investing in the right, VALUE ADD Commercial Real Estate is the key. As you listen to each episode, you'll discover real-world strategies on how to make more intelligent real estate investing decisions. If you don't yet know how to invest in commercial properties, don't think you have the capital to purchase or don't know where to start finding the right properties, then The INVESTING ADVANTAGE podcast is for you. In my 14 years of investing, developing, and working with some of the most successful real estate investors across North America, they all followed a similar framework to creating substantial WEALTH investing in commercial real estate. It didn't matter if they were investing in Multifamily buildings, Retail Properties, Industrial Warehouses or Office Buildings. they all used a system for finding the right properties, financing, and then fixing them. You're going to learn that same Real Estate Investing BLUEPRINT here. Make sure you check out the notes to each episode at TheInvestingAdvantage.com were you can find my 8 Non-Negotiables for Investing in any Commercial Property along with other free resources on how to kickstart finding the right income producing properties to create recurring, passive income.
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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
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: shane@shanemelanson.com 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
Have you ever wondered why proformas play a crucial role in the world of land development? In today's episode, Shane Melanson unveils the significance of realistic assumptions when embarking on a development project, shedding light on how entrepreneurs are transforming investments into lucrative net worth and passive monthly cash flow. Discover the challenges of obtaining reliable information gaining insights into navigating competitive environments, seeking mutually beneficial partnerships, and anticipating underground civil complexities. This episode unveils invaluable advice for those aspiring to achieve success in the realm of development. [00:00 - 06:42] Navigating Proformas and Assumptions A proforma is considered a story that encompasses all the assumptions of a development project, enabling developers to gauge the authenticity of the numbers involved Developers can manipulate certain figures in a proforma, such as interest rates, rental rates, cap rates, and costs, to create desired outcomes, highlighting the need for careful analysis and scrutiny When considering new development opportunities, developers should thoroughly examine the assumptions underlying the proforma, particularly regarding costs and rents, to make informed decisions and ask relevant questions Obtaining reliable information and connecting with experienced individuals in the industry can be difficult, requiring trust-building and understanding the motivations of those involved [06:43 - 11:58] Thriving in a Competitive Environment Developers operate in a competitive landscape with limited land and development sites, so it's important to understand the competitive nature of the industry It's crucial to identify trustworthy individuals for guidance and information while recognizing that their experiences and perspectives may vary By asking the right questions and gaining practical experience, developers can refine their assumptions over time Understanding costs, revenue, and debt and prioritizing cash-on-cash returns helps developers make informed decisions, avoiding manipulation of metrics like IRR and cap rates 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: "And so when you combine the right questions with the right people, that's when you can start to formulate and put together your own set of assumptions," - Shane Melanson
Ready to Master Commercial Real Estate Investing? Discover the eight non-negotiables for success in commercial real estate investing, gain strategies, including market demand analysis, and build key relationships to create substantial wealth. Don't miss this vital conversation - tune in now! [00:00 - 04:46] 8 Non-Negotiables for Investing in Commercial Real Estate - Learn How to Create Significant Wealth Today! • Three fundamental principles to look for when identifying a commercial property • Strategies and practices to create wealth investing in commercial real estate • Shane's eight non-negotiables to investing in commercial real estate • Principles include: size, control, functionality, and below replacement value • Opportunity to download Shane's eight non-negotiables [04:46 - 08:46] Understanding the Demand From Tenants • Shane focuses on adding value and forcing appreciation by finding opportunities that others don't see • When looking for a deal, consider location, property (functional, title/legal), and tenants (demand) • Apartment buildings are the easiest to understand but also saturated [08:47 - 12:56] Understanding the Market • Understanding the demand is key, not just going after one asset class • Retail is not popular due to e-commerce and online buying • Mitigating risk and going after the right tenants can create tremendous opportunities • Relationships are important for understanding the market and taking risks out of deals • Industrial real estate can be a great investment opportunity [12:56 - 17:01] Verifying Demand in the Market • Control the deal to dictate the terms of the deal and become part of the general partnership • Understand the demand for the asset class in your market • Create a list of personal connections, leasing agents, and owners • Become an expert in your market area • Bring in the best agents to sell the product [17:02 - 20:51] Exploring Unfair Investing Advantages and the Risk of Commercial Real Estate Agents • Verifying demand for a market is important to understand before investing • Unfair investing advantage can be achieved by understanding the tenant's needs and exploiting gaps in the marketplace • Relationships and connections with owners, commercial brokers, and business owners are key to success. [20:51 - 22:10] Enhance Your Commercial Real Estate Reputation • Investing in commercial real estate requires protecting your reputation • Get a copy of the 8 non-negotiables included in the Commercial Real Estate Scorecard • The scorecard is a 5-page document with graphics and mind maps • Contains information from over 15-20 books on commercial real estate investing • Get it by visiting club syndication.com and entering your name and email 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: "Just because it's the easiest does not necessarily mean it's the best asset class to be in." - Shane Melanson
Get ready for an insightful and dynamic podcast episode as we sit down with Shane Melanson to unravel his secrets for wealth creation through commercial real estate. Delve into the world of club syndications, direct deals, and passive investments. Discover the power of a strong corporate culture and values and how leading by example fosters a united and success-driven environment. Shane will also reveal strategies for building long-term client partnerships and ditching traditional RFPs for more fruitful relationships. Join us as we explore the art of wealth creation and preservation through the captivating realm of commercial real estate! [00:00 - 02:06] Kalmoir's Long-Term Partnerships • Kalmoir's approach is to create long-term partnerships with clients. • Investing time and energy into creating a successful partnership is more beneficial than going through the RFP process. • Shane Melanson's goal is to give strategies and practices to create wealth investing in commercial real estate. [02:06 - 04:17] Understanding the Importance of Culture • Bringing new people in, noticed frustration when they don't have the same beliefs and values • Taking responsibility for creating culture and expectations • Example of his daughter making top tier soccer team: culture was very different - playing to win, fully committed, expectations were clear [04:18 - 06:23] Lead by Example and Set Clear Expectations • Leading by example • Setting clear expectations • Tom Coughlin's rule of showing up 5 minutes early for meetings [06:23 - 08:32] Building Lasting Partnerships • Creating a strong culture is key • Aligned values are important • Values should be simple and have a clear "why" behind them • Partnerships with clients should be long-term [08:33 - 10:50] Creating a Culture of Partnership: The Key to Long-Term Success • Partnership is important to make decisions. • Creating corporate culture is a learning process. • How you conduct business will influence people. • Pay consultants on time and don't nickel and dime them. • Be consistent with your actions so people know who they're dealing with. • Attract and build a team that buys into your culture. 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: "What you do is who you are" - Shane Melanson
This episode of the Investing Advantage Podcast examines how to calculate the worth of a real estate development project. This episode explores the seven-step process for calculating a back-of-the-envelope (BOE) analysis to evaluate a new townhouse project. Learn about key terms such as cap rate, debt cover ratio, and cash on cash return and how to use leverage to maximize returns. Receive tips on hiring consultants and understand return expectations as well as testing assumptions and understanding risk profiles. Tune in now to get the advice you need for investing in commercial real estate! [00:00 - 07:53] Calculating Your Return on a Townhouse Development • Cap rate is the return you receive if you purchase a property all cash • Debt cover ratio is your NOI divided by principle and interest payments • Cash on cash return is based on whether or not you have leverage debt or no debt • Factors that influence cap rates include risk, future upside, and future downside • Debt to yield ratio is helpful to understand the perspective of a bank [07:53 - 15:32] Calculating a Five-Minute Back of the Envelope for a Townhouse Development Project • Cap rate is calculated by dividing the NOI by the property value • Debt to yield is calculated by dividing the income by the debt given • The art of evaluating properties comes with experience and understanding of the market • Calculating a five minute BOE involves seven steps such as purchase price, NOI, debt, equity, free cash flow, ROI and principle paydown [15:33 - 23:09] Understanding the Impact of Leverage on Returns • Small changes in interest rates, cap rates and rents can affect the valuation significantly • Run the numbers first before buying land to understand how much you can pay for it [23:10 - 28:55] Taking the Next Step in Commercial Real Estate Investing • Understand return expectations and risks associated with the project • Engage a contractor, lender, commercial broker and leasing agent • Use financial calculator or app to calculate costs and revenue • Build a team of professionals who are committed to the project • Test assumptions and understand risk profile • Get clarity on cash on cash basic metrics • Understand discount rates and IRRs 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: "There's like a science and an art. Today I'm really just focused on the science which is just the numbers. The art is evaluating the assumptions because as you'll see there's many assumptions. I'm only pointing out a few because literally this is something that takes years to really master." - Shane Melanson
In this engaging podcast episode, Shane covers topics such as the importance of communication, planning, pre-construction process, leveraging consultants and architects to minimize problems and challenges, the role of a foreman and manager in the project, how long the process typically takes, budgeting for unexpected change orders, typical warranty claims, capacity to take on projects up to 2024, whether Kalamoir is bondable and provides references from their projects and more. Get insights into how to make your infill townhouse project a success! Tune in now! [00:00 - 04:09] How to Earn Good Money Investing in Commercial Real Estate: 10 Questions Answered by Developer and Builder Shane Melanson • How much money you can make on a project is a loaded question. • Strategies and practices to create significant wealth investing in commercial real estate are available to accredited investors. • 10 questions were answered from a new real estate developer looking at building a townhouse. • Recommendations for mechanical, electrical, energy code survey, geo tax and structural consultants are provided. • Communication frequency should be every two weeks with onsite meetings and daily/couple of days pictures updates through Procore software. [04:09 - 07:55] Developer's Guide to Contingency Planning for Infill Projects • Communication is key to avoiding surprises. • Generally, a project will have a site supervisor, project manager, and coordinator. • Hiring an interior designer can make a big difference. • Infill projects typically take 10-12 months to build. • Contingency of 5-10% should be used for hard and soft costs. [07:55 - 11:39] How to Prepare for a Tight Budgeted Project • Examples of unexpected costs like building code changes, offsite levies, power poles, etc. • Development is risky and requires eyes wide open and cash on hand • Common warranty claims include water issues, dishwasher problems, sump backups • Pre-construction phase gives 4 months to work with developers and value engineer plans • Construction is a tight margin business and needs to be planned in advance [11:39 - 17:00] Building Your Dream Project with Biweekly Communication, Expert Staff, and Cost-Effective Solutions • Generally, clients don't require bondable insurance for projects. • Cost of insurance is passed on to the developer. • Consultants are recommended to build a team for the project. • Communication with client is biweekly both on site meetings and emails. • Project timeline depends on staff size: foreman/site supervisor, project manager, project coordinator. 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: "It's very expensive to have delays on your project. So I would just keep that in mind." - Shane Melanson
In today's episode, we explore why hiring a general contractor is worth the investment. Shane Melanson explains that a general contractor can solve problems, prevent mistakes, schedule trades, get better pricing from suppliers, and coordinate and schedule everything, freeing up the developer's time to focus on finding deals and raising capital. The host also highlights the importance of evaluating the contractor's response under pressure and their ability to meet deadlines. However, there are reasons why someone might not hire a general contractor, such as if their cost exceeds the value, poor communication, or lack of experience. So, if you're considering a construction or development project, be sure to tune in to this episode of Real Estate Insights and learn why hiring a general contractor is worth the investment. [00:00 - 03:43] Tasks of General Contractor • Contractors solve problems, prevent mistakes, schedule trades, and get better pricing on materials • Coordinating and scheduling is not something that developers want to do themselves • Developers can focus their time on finding deals, raising capital, and overseeing development • Managing the general contractor and consultants is important for overseeing the project [03:43 - 07:36] Expert advice on the benefits of a great general contractor for successful construction projects • Experienced professionals value a great general contractor for managing projects • Pre-construction involves involving the GC upfront to identify mistakes and offer solutions • Look for a GC who can add value, get along with the architect, and handle pressure • Manpower is important for executing projects, including a full-time site super, project manager, and coordinator [07:36 - 11:26] How to Determine if a General Contractor is Worth the Investment • General contractors can add value through pre-construction and buying power • Cost exceeding value, poor communication, and lack of experience are reasons not to hire a GC • A good contractor should make the client's life easier • Finding the right contractor is important for successful development projects [11:26 - 12:34] Developer shares the importance of knowing both sides of the equation in commercial real estate • Importance of knowing both sides of the equation in construction • Personal experience as a developer turned partner in a construction company 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: "What a contractor really does, from my experience, is number one; they gotta solve problems." "The benefits of a general contractor are gonna outweigh what the cost is."
Welcome to today's episode, where we will be discussing how entrepreneurs and professionals can earn good money and create significant wealth through investing in commercial real estate. Throughout this episode, our speaker emphasizes the importance of understanding one's priorities and resources when investing. Identifying whether you are an active or passive investor is critical so you can create a clear path from point A to point B in achieving your investment goals. Whether you're new to commercial real estate or an experienced investor looking to enhance your portfolio, this conversation provides valuable insights into creating a successful investment strategy. So tune in now to learn how to start investing in commercial real estate and take the necessary steps toward creating long-term financial stability! Highlights: [00:00 - 06:01] Learning how to create a one-page commercial real estate plan • Club syndications offer opportunities for wealth creation in commercial real estate • The one-page commercial real estate plan to define goals and a roadmap for achieving them • Determining the investor type and asset class for investment • Private real estate syndications are the focus of discussion • Successful investors continually adapt and diversify their portfolio [06:01 - 11:43] Key Concepts and Mistakes to Avoid • Flexibility is key in designing a plan for commercial real estate investment • Biggest mistakes for new investors include targeting too many properties, buying on price instead of value, and not understanding the market • Quality of thinking leads to quality of decisions, actions, and results • Commercial real estate investing roadmap includes foundation, property selection, debt/capital raising, implementation/optimization • Three big buckets for investing: making money, growing money, keeping money [11:44 - 17:19] Setting Goals and Expectations for Investing Success • Financial goals and examples shared by people • Starting point: list assets and liabilities, personal net worth, burn rate • Investing expectations: realistic vs speculative returns • FU calculator tool to calculate time, capital, and returns for retirement • Reverse engineering goals based on clarity and obstacles • Identifying resources, time, capital, knowledge, strengths, and weaknesses [17:19 - 23:10] Tips for Identifying Your Investing Philosophy and Strategy • Identifying resources: time, capital, knowledge, and relationships which are factors to consider in investing • Prioritizing resources based on the scale of expertise • Determining if you are an active or passive investor and if you will be solo or if you will raise capital • How to have a clear investment philosophy, focusing on high-growth markets with more demand than supply • Non-negotiables in decision making, including property functionality, leverage, cash flow potential, buying/building below replacement cost, and control • Investing has a reasonable expectation of positive return, while speculating has highly uncertain outcomes. [23:10 - 27:13] Learning the Language of Commercial Real Estate and Creating a Winning Investment Plan • Betting on rising values in commercial real estate investing • Understanding key terms (NOI, cap rate, DCR, DCRS) for better conversations with brokers, lenders, and sellers • Creating a one-page plan: investor type, asset class, location, deal structure • Framework for achieving the plan: goal, objective, strategy, priorities, actions • Homework and tools • Coaching opportunity for those interested in a deeper exploration of commercial real estate investing 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quotes: "The quality of your thinking is gonna lead to the quality of your decisions. The quality of your decisions will lead to the quality of your actions and that will lead to the quality of your results." - Shane Melanson "Goal, objective, strategy, priorities, actions." - Shane Melanson
Looking to become a successful real estate investor? In this episode, we're breaking down the competitive nature of the industry and sharing valuable insights on navigating challenges in real estate development and investment. From taking ownership and responsibility to understanding the emotional struggles involved, we've got you covered. So, if you're ready to play the game and win, tune in now! [00:01 - 08:23] The Game: Navigating Real Estate Development and Business Ownership Real estate investing is like a game that requires taking ownership and responsibility. The podcast is changing to focus on real estate development and business with a behind-the-scenes look at challenges and struggles. The podcast aims to provide a real perspective on investing in commercial real estate and to talk some people out of investing if it doesn't make sense for them. The competition in commercial real estate is fierce and new investors should be aware of the vast experience gap between themselves and seasoned players. [08:24 - 16:24] Lessons Learned from Real Estate Development Challenges Real estate investing is risky - more investors go bankrupt than become billionaires. Many millionaires made their money in business before investing in real estate. Learning from challenges in real estate investing can save you from investing in the wrong property or person. There are always new ideas and strategies to consider in real estate investing, and success depends on being adaptable to changes in local and global markets. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “When the chips are down, when things are very difficult, I find that is where you really find out who you want to continue to do business with versus the people that you know will quit when things actually start to get difficult.” - Shane Melanson
In this episode, Shane shares insights on observing successful individuals in desired fields. He talks to Fred, a successful restaurant owner, about his journey to success, emphasizing the importance of choosing the right business model. Capital alone is not a competitive advantage in development, and a unique competitive advantage takes time to develop. Shane reflects on his own journey and warns against following others' goals and values, stressing the need for individual thinking. [00:00 - 06:36] The Importance of Choosing the Right Business Model Valuable insights can be gained from talking to successful people in desired positions over lunch The speaker had a conversation with Fred, a successful restaurant owner, and learned about his journey to success Fred started with a university business and moved on to car washes and porta bodies before settling on restaurants Fred's success came from owning land underneath his restaurants and working 12-hour days for over 40 years [06:37 - 11:33] The Realities of Real Estate Development: Why Capital Alone is Not Enough to Succeed A lady contacted the speaker about building townhouses in inner city areas and they discussed numbers and potential partnership Capital alone is not a competitive advantage in development and a unique competitive advantage takes time to develop The speaker realized the importance of having a competitive advantage and pursuing one's true passion Following in someone else's footsteps can be a trap and it's important to think for oneself and have clear goals and values 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Choosing the right direction is far more important than just working hard.” - Shane Melanson
In this episode, Shane shares insights on raising capital for real estate investment projects. He emphasizes the importance of transparency and honesty when approaching potential investors, acknowledging that no property is perfect. Shane delves into 10 crucial questions that smart investors ask before committing their money to a project, and discusses various factors that investors need to consider, including the experience of the GP team, contingency plans, and sensitivity analysis. He also addresses the challenges that real estate investors face in today's shifting market and the importance of considering potential scenarios such as interest rate increases. [00:01 - 02:41] Uncovering the Real Risks and Challenges Smart investors ask questions to evaluate risk and assess the loan-to-value ratio of a property Building credibility by avoiding overselling a property is important Ten questions to be prepared for when raising capital The first two questions are related to risk and commitment [02:41 - 4:50] Questions to Ask Before Investing in a Property Investors should discuss both the pros and cons of a property Honesty is key; don't only focus on the positives Understanding the exit strategy is important, and there are different types of exits that may attract different groups of investors Consider who else is involved in the deal, particularly high net worth investors [4:51- 07:04] Smart Investing in Real Estate Projects Unexpected issues and insufficient funds can lead to project failure, so investors want to know if other experienced investors are also involved Cash on cash return is important for limited partners Investors consider the GP team's track record and experience working together Contingency plans and sensitivity analysis are crucial to manage potential project risks [07:05 - 10:19] Investors Becoming More Cautious in Today's Shifting Real Estate Market IRRs were previously based on cap rate compression and rent increases, but investors are becoming more careful in the current market Limited partners seek adequate compensation for the project's duration, while also balancing fairness It's important to consider potential scenarios, such as an increase in interest rates 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Smart investors know that no property is all sunshine and rainbows. Like there are going to be challenges. Like nothing is perfect.” - Shane Melanson
In this episode, Shane explores the concept of "value for value" and how it affects our decision-making processes. Discover the importance of creating urgency around products and services, and why paid advice is more valuable than seeking confirmation bias. Hear personal anecdotes on how paying for services leads to accountability and action. Join us for insights on human nature, motivation, and consumer behavior. [00:01 - 04:54] Why Charging for Your Services Can Lead to Better Results People tend to take free things for granted and may not place much value on them Giving away something for free can lead to less urgency and action on the part of the recipient Shane struggled with finding the balance between giving content away for free and charging for it Giving a course away for free did not motivate the recipient to take action Paying for a service can create a sense of accountability and impact how people prioritize their time [04:55 - 10:56] Why Paying for Services Can Lead to Better Results and Accountability Personal experience taught the author the value of accountability and taking action when he borrowed workout CDs Shane pays his business partner for pre-construction work to ensure accountability and engagement People are more likely to value and take action when they pay for something Shane found that people who received free consultations only wanted confirmation, whereas paid clients sought honest advice Providing honest advice to paid clients can be more impactful and potentially save them millions 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “The difference between paying for it and giving it away for free is just how people respond.” - Shane Melanson
Involved in many facets of the lending process, Jesse creates and builds vital relationships with investors. He also assists with underwriting, regulatory compliance, and preventative loss analysis. Jesse has a passion for helping people reach their financial goals. He's focused on discovering quality opportunities to lend money and provide sufficient capital to fund exciting opportunities. Jesse is the father of two young children. Beyond work, his passions extend to skiing, fishing, mountain biking, and continuous learning." [00:01 - 15:16] Short-Term Residential Lending for Real Estate Investors Based in Calgary, Alberta, Cal Home Mortgage specializes in short-term residential lending for properties with 16 units or less in major urban centers They provide real estate investors with short-term capital for buying, renovating, and stabilizing income-generating properties With 300 million dollars of capital, they manage risk through underwriting and in-house appraisers to ensure accurate data Borrowers must make at least 50% net profit after fees to be approved for a loan, and their return to shareholders is leveraged through a bank facility [15:17 - 29:46] Real Estate Investing and Sophisticated Investors Cal Home Mortgage Investment Corporation is ideal for volume flippers or trades supplementing income, requiring good credit, capital, and experience The minimum investor requirement is accredited, and Calvert seeks larger average investments than three years ago Calvert expects returns of 8-10% annually, but warns that lending rates may increase due to rising interest rates Equity is for renovations and buying, with no minimum investment required [29:47 - 38:37] Assessing Commercial Real Estate Opportunities Calvert Holmes is a private money lender with access to an operational line of credit of up to 200 million dollars They offer a return of 10.5% to shareholders by leveraging bank funds, which reduces risk and increases returns Calvert Holmes does not use seminars or advertising to attract investors With a focus on short-term residential lending and a minimum investor requirement of being accredited, Calvert Holmes is an attractive option for those seeking high returns on their investments Connect with Jesse Email: Jesse@chmic.ca Mobile Number: (403) 617-9931 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Good fences build good neighbors. And again, just being really transparent in what we are and what we do and, and what they're putting their money into.” - Jesse Bobrowski
Discover the journey of a Shane who learned the hard way that investing in courses and coaches isn't enough to succeed. This episode delves into the practical aspects of investing in commercial real estate, including how to assess opportunities objectively, strip out the hype and fluff, and partner with experts for tangible results. Learn how to evaluate cap rates, understand the risks and opportunities, and make informed decisions. Tune in to hear from the expert and discover what it takes to succeed in commercial real estate investing! [00:01 - 04:40] Detaching from Investing in Courses, Coaches, and Consultants Over $150,000 invested in courses, coaches, consultants, and seminars in the past two years One-third of those helped purchased their first commercial property Suggested a minimum investment of $250,000 to attract those without emotional attachment to the idea Realized the danger of investing in the hope of a quick fix or magic formula and paid dearly for it [04:41 - 08:46] The Power of Certainty Recognized that people desire real solutions for their business needs, without gimmicks or hype Analogy drawn between a personal trainer and a cosmetic surgeon, emphasizing the importance of certainty and lower risk/investment Shifted focus from selling what people need to actually providing hands-on assistance Adopted a partnership approach with clients, offering practical help to achieve their business goals [08:47 - 14:24] Assessing Commercial Real Estate Opportunities Commercial property value is determined by the cap rate Cap rate indicates the return on investment if the property was purchased all cash Brokers and sellers may overprice the property despite market conditions Investors should evaluate the risk and opportunity of a property before investing Seeking expert advice and asking difficult questions can help investors make informed decisions 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “The worst thing you can do is rush a bad deal” - Shane Melanson
In this episode, Shane discusses the significance of practice, mentorship, and making sacrifices to acquire knowledge. He delves into the development of creativity, confidence, and success in business. Discover the three fundamental components for achieving success and learn how to become a confident investor or expert in any field. Join us for insights on personal growth and how to apply the right skills to unlock success! [00:01 - 04:37] Lessons in Creativity and Confidence Protecting and encouraging creativity and confidence are key to success, whether in soccer or business Building skills requires hard work and dedication, just like my daughter's commitment to practicing six days a week Getting enough practice and exposure is essential to gain confidence in investing or any other field Finding a mentor or coach can help you learn the right skills and avoid wasting time on the wrong things [04:37 - 08:12] Strategies for Improvement in Sports and Investing Focus on a few skills to succeed in a game, which may change depending on the opponent and focus A great coach is important to point out mistakes in a constructive way to improve performance Offering to work for free in exchange for coaching is not a guaranteed way to get it, and it's important to invest in learning through payment or sacrifice Finding a mentor or coach may require creativity and persistence, and it's essential to seek out knowledge from various sources, even if one potential coach is not available [08:13 - 12:28] Developing Wisdom and Experience for Business Success Wisdom and experience are crucial to avoid making mistakes and problems in business Insights gained from experience are often not fully understood until after going through several cycles of trial and error Learning through observation and doing is more valuable than traditional education in business Developing skills and taking a long-term perspective is necessary to become a confident investor or entrepreneur 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “There is like absolutely no shortcut to doing the work and developing the skills.” - Shane Melanson
Link to my Linkedin: https://www.linkedin.com/in/shanemelanson/ In this episode, Shane shares the story of experienced developer Chris and inexperienced developer Fred, highlighting the differences in their approaches to budgeting for a project. Chris offers invaluable advice on due diligence, engaging consultants, and identifying potential risks when interviewing contractors. They stress the importance of working with experienced developers to avoid costly delays and make informed decisions. Tune in to learn how to create a budget for due diligence and avoid losing money on development projects. [00:01 - 05:00] What to Consider When Budgeting for a Project Differences between experienced (Chris) and inexperienced (Fred) developers Importance of engaging consultants and submitting plans to the city Focusing on price alone can lead to costly mistakes Reviewing drawings in advance can save time and money in the long run [05:01 - 08:43] Questions to Ask Before Starting Your Project Importance of asking about contractor experience, project team, trades access, and price per square foot Testing contractors on their knowledge and ability to execute the project Walking away from a project that doesn't make financial sense is often the better option Identifying and mitigating project risks during contractor interviews can save time and money in the long run [08:44 - 12:46] Tips to Avoid Costly Delays and Risks in Development Projects Obtain accurate information upfront to prevent delays and negative outcomes Avoid incorrect information that can cause delays and damage reputation Understand legal and civil issues related to the project beforehand Develop a budget for due diligence upfront and engage team members early to avoid costly mistakes You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “t's almost better to just cut your losses and walk away than to try to force a bad deal.” - Shane Melanson
In this episode, Shane discusses how to avoid common mistakes when raising capital. Emphasizing the four key questions surrounding money flow, he also looks at Steve Jobs' ability to create a simple yet effective pitch deck. Shane explains how to simplify investment class explanations, warns against comparing real estate to other investments, and stresses the importance of explaining why a property is a safe investment. He cautions against making assumptions about investor motivations and highlights the need to create a concise, effective pitch deck. Tune in for tips on creating an engaging and informative pitch, in just 12-15 pages! [00:01 – 06:34] Lessons on Clarity, Simplicity, and Understanding Your Audience Don't over complicate your pitch deck. Keep it simple and easy to understand Avoid positioning your investment against other vehicles but focus on explaining the value of your specific investment opportunity Don't assume you understand the motivations of your investors. Ask questions and make sure you are aligned with their goals Clearly explain the priority stack for different classes of shares, if applicable, so investors understand the potential returns and risks involved [06:35 – 09:46] Lessons on Creating a Successful Investor Pitch Deck Understand investors' motivations and timeframes to ensure alignment and transparency Keep pitch decks simple and concise, ideally 12-15 pages, to respect investors' time and avoid confusion Regularly practice and refine investor presentations to improve and raise money with more certainty Seek out a mentor or coach to provide feedback and help improve presentation skills You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “When you're putting your pitch deck together, make sure that it is as simplified as possible.” - Shane Melanson
Jim and Jamie Sheils, founders of 18 Summers, experienced challenges as a blended family and used Family Board Meetings to bridge the gap and connect. They now help families and organizations globally to discover the importance of quality time and relationships through 18 Summers. [00:01 - 11:42] Building a Strong Family Life in Real Estate Family should come first, even in the pursuit of success in real estate The need for practical and simple tools to help build a strong family life The impact of a strong family on overall success in business and life The importance of intentional time with family, as demonstrated through the concept of "board meetings" with children [11:43 - 23:20] The Power of One-on-One Time and Intermittent Tech Fasting One-on-one time strengthens relationships and clarifies communication Make the most of limited time - 85% of quality time with children by 18th summer Technology breaks improve relationships by promoting presence and focus Strong spouse relationship benefits entire family [23:21 - 34:03] Improving Relationships through Consistency and Communication Respect, promises, and good behavior alone don't guarantee relationship success Negative behavior leaves a lasting impact Self-awareness and reminders improve relationships Consistent schedules and "one-to-one principle" can reset and enhance relationships [34:04 - 39:17] Closing Segment Focus on a mixture of homeowner and renter ratio for a stable neighborhood Look for opportunities in median areas with a mix of homeowners and renters Consider incorporating different types of rental properties, such as townhouses, duplexes, and quads Utilize infill lots for concentrated building efforts and to maintain the integrity of the neighborhood Connect with Jim: Website: https://www.18summers.com , https://jjplaybook.com/ You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “You have to breathe in and out with your family along the way. And I think you'll be more prepared for better growth even believe it or not.” - Jim Sheils
This episode focuses on the obstacles faced by individuals seeking to secure funding for their entrepreneurial ventures. Shane shares his personal experience of being approached by a friend with a vague plan to start a fund, despite lacking experience. He stresses the significance of establishing a proven track record, having a solid plan and demonstrating a solid concept before seeking capital. Shane highlights the key steps to success, such as starting small, having personal investment and building a network of investors. [00:01 – 05:50] The Fund Raising Reality Check Have a clear track record and a well-organized business plan Consider the proof of concept and ensure you have answers to tough questions Start small and focus on adding value to one business or property first Be mindful of spending money on service providers without a clear plan in place [05:51 – 09:44] Navigating the Fundraising Journey with Confidence Start small and build an audience of believers to increase the chances of success Adopt a long-term perspective instead of short-term thinking when it comes to fundraising Take the time to understand the language, terms, and common practices of raising funds Begin with one property or project and build upon that experience to grow your investment portfolio You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “If you are thinking about raising a fund and you've never really raised your first million, I would say start with one property, one project.” - Shane Melanson
In this episode, Shane dives deep into the world of real estate development and shares the five biggest mistakes he has seen or made himself in the industry. He covers the topics of being overly optimistic, having too low of a margin of safety, having the wrong team, underestimating contingencies and having an incorrect underwriting model. [00:01 – 05:49] Avoiding Million-Dollar Mistakes Avoid being overly optimistic or "blue sky thinking" when it comes to interest rates and other variables Have a margin of safety in your calculations and be prepared for unexpected delays and cost increases Consider the impact of having the wrong consultants on your project, as they can have a significant impact on the outcome Remember that having an outside perspective can be valuable in avoiding these mistakes [05:50 – 10:18] The Intersection of Luck and Real Estate Investing Don't be overly optimistic and instead have an accurate thinking approach. Have a larger margin of safety to protect against potential losses Choose the right team and ensure they have experience working together and with other consultants Consider the size of your contingency fund and not just the percentage, especially on larger projects You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Don't be overly optimistic, but be like an accurate thinker.” - Shane Melanson
In this episode, Shane explores the concept of luck in relation to investing in real estate.and concludes that understanding and researching the market can improve chances of luck and emphasizes the importance of timing and market knowledge in the industry. [00:01 – 04:24] Understanding the Role of Luck in Real Estate Investing Luck can play a role in real estate investing, but it doesn't have to be out of your control Researching the market and understanding the dynamics of the local area can improve your chances of success Timing is important in real estate investing, as market conditions and economic factors can greatly impact the value of a property Have humility and take responsibility for your mistakes [04:25 – 10:18] The Intersection of Luck and Real Estate Investing Researching the market and having unique insights can improve your chances of luck in real estate investing Understanding the fundamentals of supply and demand in a specific asset class can make you an expert in that area Timing is crucial in real estate investing, and being aware of market conditions can help you make the right decisions Having the capital to take advantage of opportunities as they arise is a key aspect of successful real estate investing You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “ So understanding and researching the market that you're in is going to improve your chances.” - Shane Melanson
In this episode, Shane reflects on the mistakes he has made in the past in real estate and highlights the challenges of constantly having to learn and adapt in different markets and verticals. He also talks about the importance of perseverance, focus, and saying no some opportunities in order to achieve success. He shares that his focus for the coming year is on multi-family and townhouses. [00:01 – 04:52] Mistakes in Real Estate Investing The importance of understanding and learning from others before tackling multiple projects It can be hard to replicate past success in real estate due to market changes Perseverance, focus, and saying no to some opportunities are important for success in real estate [04:53 – 10:24] The Focus for 2023 Focusing all efforts and energy in 2023 on multi-family and townhouses Evaluating past performance to improve future investments in real estate Focusing on areas that you want to achieve in the coming year You can follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Perseverance, focus, and saying no to a lot of things are key to achieving success in real estate investing.” - Shane Melanson
In this episode, Shane shares his goals for 2023 of how he is focusing on one major business and one personal goal of buying 100 townhomes and how he is cutting time in coaching and focusing all his energy on his primary goals. [00:01 - 13:07] Lessons Learned for Entrepreneurs and Professionals Aiming to provide strategies and methods for building wealth in commercial real estate Doubling down on building townhomes and staying away from other projects Focusing on one major business and one personal goal Focus for 2023 having more fun scheduling and discipline with time and energy [13:07 - 14:00] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Sometimes just having that one big goal is really important” - Shane Melanson
In this episode, Shane shares an excerpt from a mastermind call he had in which a member asked him about what he was doing at the time in terms of investing , how he was planning for the upcoming year, and what he anticipates the market to be doing. On the basis of the most recent data, he discusses his opinions and predictions for real estate in the coming year. [00:01 - 09:11] Investing Amidst Rising Interest Rates Having several deals under development Rising interest affects both cap rates and construction costs Variables that help developers justify bringing in new inventory Investing in residential and foreseeing demand for it in the future Looking at opportunity costs to justify building into the new year [09:12 - 10:08] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “I think to myself, okay, I gotta be well capitalized and I gotta be very patient because I know what's gonna happen is people that don't have the same, staying power, they're gonna be forced to sell. And so that's where I think the opportunities are gonna start to come.” - Shane Melanson
In this episode, Shane talks about lessons he learned investing in Crypto, the fall of FTX and its effect in the market, and what the future of Crypto will look like for current and future investors. [00:01 - 03:40] Diving into the Who and What is FTX FTX is a online bank that allows people to buy and sell crypto currencies The $8 billion loss of investors money The effects of this bankruptcy across multiple sectors [03:41 - ] Journey of Investing in Crypto Being ignorant as to what crypto is before investing Viewing it as very high risk investment Started with investing small Investing in crypto felt like gambling [11:41 - 12:55] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Speculating is an opportunity where the investment outcomes are highly uncertain. It's simply a game of skill you're betting on. The value will rise, and essentially there's no income being generated.That's really what speculating is like. I wanna buy something. It's gonna go up in value. And to me, that's what Bitcoin really felt like.” - Shane Melanson
In this episode, Shane talks about a lesson he learned from an investing mistake and how he was so focused on the results and outcome and not on the details of the deal. He also shares his action plans to get the deal back on track and other tips so we as investors can avoid these mistakes and learn how to deal with them in the future. [00:01 - 02:47] Dealing with Bad Decisions on a Deal Taking a step back and asking help to get a better insight on the situation Detaching from your emotions and focusing on the facts Pain plus reflection = progress [02:48 - 11:40] Action Plans and Steps We Can Learn From Looking back at the paper trails of the deal to see what was missed out Going to the partners and investors about the problem and providing solutions Asking the right questions before diving into a deal Don't be to focused on the outcome Ask for help [11:41 - 12:55] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Because I was too optimistic, I was constantly looking for a way to make this deal work, and I didn't ask the right question.” - Shane Melanson
Beau Beery has been in the commercial real estate business in Florida since 1999 after he decided in his early 20s that having a successful career as a personal trainer was less likely to help him achieve his life goals. Beau has a Bachelor's degree in Marketing and a Master's in Real Estate from the University of Florida. He has also earned the Certified Commercial Investment Member (CCIM) designation in just a few short years working in commercial real estate. [00:01 - 11:25] Current Market Situation Beau shares about his current portfolio and deals Interest rates may be affected by current elections Hiring someone who hasn't learned the bad habits of the trade Anticipating higher interest rates in the coming year [11:26 - 17:10] What Goes On in a Typical Call Getting fined when you call someone on a “Do Not Call List” Register your business to the government and register for exemption Establishing rapport from the get go Prepare before every call [17:11 - 25:54] Looking at Rising Interest Rates Buyers have to pay higher equity Most brokers don't solve for cap rates but for cash on cash returns A lot of people prefer having 7-8% on their cash on cash [25:55 - 32:05] Buying Trends for Buyers Now A lot of new buyers ask sellers if they do seller financing There is a sudden spike in interest rates Investors should be cautious of their reputation [32:05 - 42:32] Spike in Insurance Premiums All properties are now considered postal Insurance premiums are rising in a very fast rate Liabilities on coverage on properties are skyrocketing Don't be a lazy buyer [42:33 - 43:43] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “An investor going into this,should be very cautious of their own reputation going into contract on something and thinking they can retrain later on as if they didn't know this was coming.” - Beau Beery
In this episode, Shane shares some updates as to what he is investing in right now, what things he is up to at the moment as well as conversations he had investing wise. [00:01 - 12:01] A Look Into The Market Now Shane is long time investor and has been is real estate for over 30 years Winning big in the market by being the game for a long time Guide as to how to look into real estate investing There are more sellers than there are buyers Growing interest rates Not doing market deals Importance of being able to identify high value locations The market is going to deteriorate Now is the best time to invest in real estate If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “This is when the greatest opportunities come when there's tremendous uncertainty and very few buyers.” - Shane Melanson
In this episode, Shane shares about lessons learned from a book by Annie Duke and how she shares about how as spectators looking in we don't see the significance of the decision making process involved but only see the outcome and whether we failed or succeeded. He also discusses the significance of having a decision-making framework, the importance of thinking in terms of probabilities, and understanding that there are risks that are just outside of our control [00:01 - 13:15] Perspectives and Decision Making Shane shares about a podcast with Andrew Wilkinson and his controversial real estate statements Diving into the book Thinking In Bets by Annie Duke Distinguishing decision making from outcomes and results Asking the right questions revolving around: Understanding the investment Understanding the market and submarket Understanding the demand for it Understanding the market competition Really understanding the deal before investing Knowing there are many variables that may affect a deal and being prepared for those incase they happen [13:16 - 14:11] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “ I think because of the way that there's so many variables going on in the world that we live in right now, there's going to be people that are very smart investors that just get caught and that's just reality. ” - Shane Melanson Resources mentioned in this episode: Thinking In Bets - Making Smarter Decisions When You Don't Have all the Facts by Annie Duke
How good are we at making decisions or judgement about things? In this episode, Shane talks about how our judgements affect us, he also shares wisdoms from Naval Ravikant when it comes to judgement as well as how sharing these philosophies can not only help us make better decisions in our lives but also in our investments. [00:01 - 08:43] Concepts of Judgement Shane shares how a conversation with a friend led to them to talk about the risks in going to a deal Knowing the risks going into a deal helps you make better decisions Judgement as defined by Naval Ravikant Wisdom is knowing long term consequence of actions Judgement is wisdom applied to external problems Understanding the investment philosophy of Warren Buffet [08:44 - 16:57] Sharing Philosophies Getting feedback from people who have different views Connecting to people in the industry online to talk about business Have meaningful conversations with people in his online community Finding people you can trust with good judgement Seek people for your deal and invest in it [16:58 - 19:13] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “ Judgment is the wisdom of knowing the long term consequences of those actions applied to external problems. So if you think about that, it's like being able to see into the future, ” - Shane Melanson Resources mentioned in this episode: Lessons from Naval Ravikant on Judgement The Almanack of Naval Ravikant
What do we do when confronted by fear? Do we retreat or do we see an opportunity? In this episode, Shanes talks about turning our fears into our motivators to take action and how to see opportunities even in negative situations. [00:01 - 12:16] Fear as a Motivating Factor Having a sense of responsibility and public fear when no action is taken Creating consequences for one's self Getting comfortable with routine and have no sense motivation [12:17 - 13:09] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “Being self-aware and knowing what it is that drives you is extremely important, and just having that comfort to know that when I'm setting a goal and need to take that action, it may not be focusing on the things that I think are going to propel me into action.” - Shane Melanson
As a real estate investor, you want to stay ahead of the competition in finding the best off-market property. In this episode, Shane talks about long-term perspective as a secret to success and how it could help you weigh things that matter versus those that deviate you from your goals. [00:01 - 09:41] The 10-Year Plan Investment horizon matters - have a long-term perspective: 10,20,50 years Timing - urgency in real estate is crucial if you see a good opportunity but could be a disadvantage if you end up buying less than great deals Implementation - figure out what matters and reframe how you look at opportunities [09:42 - 10:42] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “It's very easy to have multiple goals, but not all goals are equal. Some are going to have tremendous upside, whereas others might look good on paper, might feel good, might be exciting, but they're not really going to move you in the direction of that big goal that you're after.” - Shane Melanson
How do we create a profitable short-term rental business? In this episode, Alex Jarbo shares his experience in the short-term rental space, how it's changed over the years, and what advice he has for those who are interested in getting involved. Listen closely as he shares practical information on pricing, zoning, and financing with these developments. Alex also recommends thinking carefully about the market you're in and taking advantage of the tools and resources out there to keep you prepared as you take on these projects. Alex Jarbo is a short-term rental developer and manager. He was born and raised in Detroit Michigan. He served in the Marine Corps for 4 ½ years, where he was stationed in Washington DC as part of the Marine Corps Honor Guard. He left the Marine Corps at 22 years old to pursue his career as a real estate professional. He is the founder and CEO of Sargon Investments, and he has a goal of developing 650 cabins in the next 3 years. Alex holds an MBA with a concentration in Real Estate Development and is currently finishing a Doctorate in Business with a concentration in Leadership. He is the host of the YouTube Channel Alex Builds, where he teaches the ins and out of short-term development and management. [00:01 - 14:23] Curating Your Property Portfolio Why you should consider boutique hotels and micro resorts Taking advantage of the available tools for management How to manage a property portfolio with minimal time and effort [14:24 - 28:02] Financing and Structuring a Short-Term Rental Development The local credit unions' willingness to take on development projects Buy land at tax value to help ensure more worth of the property in the future How to structure a short-term rental project to maximize equity [28:03 - 43:39] How to Create a Profitable Short-Term Rental Business Identifying the risks of not getting into short-term rentals Considering the whole guest experience, including access, before looking at land Build one or two properties to test the market before investing more money [43:40 - 45:51] Closing Segment Connect with Alex Jarbo via his website www.AlexJarbo.com (not live yet)! Check out his course here - https://sargoninvestments.com/. If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin, and Twitter. If you would like 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 click here to listen to our previous episodes. Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “I like to invest in scenic markets, markets that have some sort of scenic outdoor type of feel to them… The reason why that combination does so well is [that], during the high season…the area becomes the attraction. And during the slow season, the unique property becomes the attraction.” - Alex Jarbo
What effective strategies do effective real estate investors follow in order to make a profit? It is a broad question that can be answered in various ways, but in this episode, Shane Melanson breaks it down into easy, digestible steps. Listen in as he shares how successful real estate investors make their money. He shares how the majority of successful real estate investors buy value add deals at the right time in the market when there is little to no competition and how they principles such as the reversion to the mean. [00:01 - 08:27] How to make money in real estate investing: Follow these 3 principles Successful real estate investors follow principles that result in high net worth and passive monthly cash flow. The reversion to the mean principle states that assets will return to their mean price, which is usually lower than the peak prices. Timing is key in order to achieve outsized returns in real estate, as market conditions can change quickly and make it difficult for others to purchase assets at a fair price. [08:28 - 11:32] Strategies for Profiting in Commercial Real Estate Having a competitive advantage can include being the first to know about upcoming trends or developments in the market or having access to more credit than other investors. There are a lot of sophisticated people in the commercial real estate world, and they have a team to help them with their deals. They have a competitive advantage because they can close quickly and have access to capital. [11:33 - 13:00] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “The idea behind reversion to the mean and how to apply it to real estate is really focusing on buying at opportunistic times now. It's difficult to know exactly how to time the market, but generally peeking, you can start to see opportunities.” - Shane Melanson
In a tighter real estate market, how do you ensure a consistent flow of leads in your business? In this episode, Shane is joined by Adam Gower to talk about the lead generation strategies you can start implementing in your business if you are finding it hard to attract the right investors. He talks about his lead flow process, from establishing an online process and building authority. They will also take you through the difference between paid ads and organic leads so you can determine what suits your objectives. Dr. Adam Gower builds best-of-class digital marketing platforms for real estate developers so you can syndicate project equity online. He provides advanced training to investors who want to invest in online syndicated real estate deals with a strong emphasis on wealth preservation and long-term growth. [00:01 - 16:02] Home Prices Are in for a Soft Landing Stock portfolios are going down since the beginning of the year due to interest rates, inflation, and the stock market. Adam thinks that the rate of growth of inflation is slow as flat, which means it's not growing anymore. [16:03 - 21:10] Secure a Constant Flow of Leads Having a solid investor acquisition system and automated workflow could free up your time to perform immediate follow-up with leads which is the proven way to convert. Purchasing an email list as a way to generate leads is a waste of money. You should focus the immediate contact and follow-up as soon as someone shows interest. [21:11 - 39:59] A Cut Above The Rest Building your authority through establishing your online presence increases lead flow. This could be through podcasts, social media, and even paid ads. It is essential that your target leads can research you online and that you are able to differentiate yourself from the competitors. One of the hardest parts of warming up a lead is by initiating a conversation. Adam shared examples of open-ended questions his team uses to build rapport and trust when contacting potential investors. [44:00 - 46:42] Closing Segment Attend his workshop to learn how to attract, nurture, and convert prospects into becoming repeat, active investors by signing up on https://gowercrowd.com/. If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quotes: “The faster you can respond to somebody sending in a form submitting a form of SEO interest, the higher the chance that you're going to convert them. And when I say fast, I mean it immediately, not later today or tomorrow, or next week. I mean, boom. Now.” - Adam Gower “They're [potential leads] going to do research. And if they can't find anything online, it's going to make it a much heavier lift for your investor relations to actually convert them. But if you have a solid, educational, informational, high-value, content-based platform online on your website, then your prospects are going to be able to research you, and they can learn about you. And that's what you want. “ - Adam Gower “People invest with people.” - Adam Gower
In this episode, Shane walks us through a 10-unit townhouse development. He shares a back-of-the-envelope calculation to picture the cost, revenue, and value of this development. [00:01 - 10:31] Investors Want a Clear Roadmap and Plan Step 1. Costs Land Hard costs Soft costs>contingency Step 2. Revenue Income/Expense>Net Operating Income (NOI)>Value Step 3. Value Should be based on the cap rate The Cap rate is what the investors are prepared to pay There are other factors that could add to the cost, especially when there's a broker involved. A few things: Research where you can get the highest rent for the lowest land cost New investors are usually hung up on soft costs Contractors could help you determine the hard cost If you want a copy of my two-page back-of-the-envelope calculation, head on to my Youtube channel at https://www.youtube.com/c/ShaneMelanson and comment BOE. I've prepared an entire spreadsheet ready to use. [11:35 - 12:29] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel.
As a real estate investor, you want to stay ahead of the competition in finding the best off-market property. In this episode, Shane talks about the three powerful strategies to find great business deals. He highlights the importance of building relationships, clarity, and focus as the key to finding your next best deal. [00:01 - 10:31] Three Strategies for Successful Business Deals Have clear and strict criteria You have a better chance of finding an ideal property if you are clear about what you want. This makes it easier for brokers and other partners to connect you with the best people. Residential real estate is very different from commercial property deals. You don't need an X number of commercial properties to do well. You'll see a lot of projects/properties before you could close one Engage in relationship building without expecting anything in return. Expectation could make it transactional, and that's something you want to avoid. It could take years for something to come out of it but never expect any return. Focus on building relationships [10:32 - 11:26] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “I don't know what the numbers are going to be. I just know that generally speaking, in commercial real estate or in development deals, you're gonna have to see probably at least 30 to 50 before you find one that actually makes the cut, right? And so if you go in with that expectation, I think then you're set, you'll set yourself up.”
There are a lot of factors to consider when looking for a good deal than finding the perfect location. In this episode, Shane reiterates the importance of following your business model and what factors to focus on when deciding to invest. He stresses the importance of having the right team members and how due diligence could save you a real estate investment flop. [00:01 - 10:19] Become a Successful Real Estate Investor To make money in real estate, you need to find good deals. Some investors are good at finding deals, while others are good at raising capital. Focus on what you can do at the moment and find a mentor who will show you the ropes and learn through experience. Here are five guide questions when finding a potential deal: Who's the neighbor? What's the zoning? What's the land use? What's the play here? How much money do we need? What are the rents? When do they expire? [10:20 - 21:10] How to Respond to a New Opportunity When you find a deal but you or your team is inexperienced with it, best to let it go and find more opportunities. Stick to your business model that's proven to work instead of trying out new things every time. [21:11 - 39:12] Mitigate Risk by Having the Right People in Your Team The deal, the team, and the market are the three moving pieces in a market cycle. As a retail investor looking to invest in development, you may meet the three, but having the right team makes or breaks a deal. Your team members must know the deal from the insider and outsider perspectives. This minimizes risks and helps you determine if it is indeed a good deal apart from what's being presented. Do your due diligence and talk to the banks and lenders to know the numbers. Understand the numbers from your own research, know the market demand, and have the best sales and marketing team could help you get started correctly. [39:13 - 41:42] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quotes: “If you know how to find a good deal, we'll find the money. ” - Shane Melanson “You have to be empowered in the sense that you got to really know the people you're investing with and what they're doing, what their plan is. Do you know why? Because if they don't execute, do they have mitigation? How are they mitigating for certain things, and have they already mitigated for them in advance? What happens if this and this happen? What are you going to do in response? How quickly they answer that question will tell you whether or not they actually have a plan, or they've thought about it, right?” - Shane Melanson
The key to successful thinking time is asking better questions. However, how do we create an effective process for this? In this episode, Shane tackles the principles from the early chapters of the book “The Road Less Stupid” by Keith Cunningham. Tune in as he goes in-depth on the practical strategies to promote changes in behavior and an allocation of resources towards productive thinking time. [00:01 - 06:11] Digesting the Principles from “The Road Less Stupid” Lessons learned from “The Road Less Stupid” by Keith Cunningham Chapter two discusses the value of thinking time. It involves a process and key distinctions. The process of thinking time Start with a question. It can be a new question, a prior question, or an expanded question. Minimize distractions. Add an extra bullet to allow for more ideas. Create a dedicated file for your thinking time sessions. [06:12 - 18:31] The Hurdles to Identify to Arrive at Point B The core disciplines of thinking time It involves finding the unasked questions for clarity, separating the problem from the symptom, checking assumptions, considering second-order consequences, and creating a machine. Never frame the problem as a statement. It is a better framework for asking questions. Losing money in the wrong deal Remember Warren Buffet's number one rule: Don't lose money. Ask yourself the right questions to address the gaps. Identify your point A and point B. [18:32 - 22:02] Closing Segment If you are interested in my coaching and consulting program, please email me at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin and Twitter. 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 Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quotes: “The core or the root problem is never the obvious gap between where you are (point A) and where you want to get to (point B). So the key to discovering the gap is finding the obstacle that is in your way; the obstacle is the problem… It's not the symptom.” - Shane Melanson “Framing a problem as a statement is a mistake.” - Shane Melanson References: “The Road Less Stupid” by Keith Cunningham
How do we reduce the time and cost associated with pre-development on commercial real estate projects? In this episode, Shane tackles his three successful strategies: focusing on projects that have a good chance of succeeding, researching the market, and making wise decisions about soft costs. Listen in, and don't forget to reach out to get a copy of his predevelopment checklist! [00:01 - 04:31] Pinpointing the Common Struggles in Real Estate Development Going deep on pre-development Comment the word “checklist” below to get a copy of the pre-development document I use! Check it out here: https://www.melansondevelopments.com/checklist The common struggles of development People spend too much time on the wrong projects and waste money upfront. Do not underestimate the actual cost and avoid being undercapitalized. [04:32 - 10:47] Your Checklist for Predevelopment #1: Feasibility Do your research and determine the site selection, zoning, and density. #2: Market demand Find locations where there are already expensive houses. Check the community. #3: Pro forma Soft costs are outside the budget spent on other essential expenditures such as consultancy. Sometimes, this entails withdrawing funds from your account. [10:48 - 12:20] Closing Segment If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin, and Twitter. If you would like 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 click here to listen to our previous episodes. Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quotes: “What they [people on developing real estate] struggle with is they're spending time on the wrong projects, wasting money upfront on consultants, architects, on a property that fundamentally doesn't work. And then generally, what happens is they are undercapitalized, meaning they don't have enough money, because they have underestimated the true cost of what that project is going to really run them.” - Shane Melanson “if you're new to developing, I would strongly advise finding sites that are already zoned properly.” - Shane Melanson
When faced with the problem of not knowing what you don't know, it's crucial to have a mentor or someone on your team who can help you out. In this episode, Shane discusses the lessons learned from experienced developers and how new developers can leverage their processes. Listen in as Shane provides practical examples of applying the three stages of development and how to identify the path to the goal but also make sure that the design is realistic and achievable. [00:01 - 10:18] Lessons Learned from Seasoned Developers Step #1: Get clear on your goals Clearly state what you are trying to accomplish. Be more accurate in articulating your goals. Differentiate nice-to-haves versus must. Step #2: Understand that you will encounter problems Spend time identifying the hurdles to face. Don't be afraid to ask for help. Step #3: Diagnose the problems Have a contingency plan in place. Step #4: Design your path There could be more than one path to reaching your goals. Reverse engineer your objective and work backward from there. [10:19 - 17:55] Identifying the 3 Stages for a Successful Development The three stages of successful development Pre-development, development, and marketing & sales are the three stages to look into. Map out the core problems to figure out. Spend time identifying the issues. Figure out the options. Have a go-no-go strategy for efficient evaluation [17:56 - 19:36] Closing Segment If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin, and Twitter. If you would like 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 click here to listen to our previous episodes. Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Resources Mentioned: Principles by Ray Dalio Tweetable Quote: “You're going to encounter problems… Spend more time really clearly identifying what the problems are.” - Shane Melanson
In this episode, Shane and Stephen discuss the three elements of risk when it comes to commercial real estate: uncertainty, loss, and time. They point out that often investors have unrealistic expectations about the level of risk they're willing to take on, and that preconstruction deals are particularly risky. Listen in for some advice on how to assess risk and establish a comfort level before investing in commercial real estate [00:01 - 04:36] Analyzing Real Estate Opportunities Safely and Make Good Decisions Risk in commercial real estate Risk is relative and there are different levels of risk that different investors may be comfortable with. Breaking down a framework for analyzing deals and discussing how this can be applied to commercial real estate deals. [04:37 - 16:34] 3 Things to Consider When Evaluating Risk in Commercial Real Estate Risk tolerance and risk management Commercial real estate deals can be riskier than smaller-scale deals. Risk management can help mitigate potential losses. Understand risk in terms of uncertainty, loss, and time. Determining your risk tolerance It is important to have a good understanding of your risk tolerance before getting involved in a commercial real estate deal. Different types of risks require different strategies when managing them. Risk assessment is important, and it is important to have a team of experts to help with the assessment. It is also important to understand the local market and the competition. [16:35 - 28:51] Risk Assessment: Tips for Managing Uncertainty Addressing and mitigating risks in a business deal There are four possible actions that can be taken in response to these risks: transferring them, accepting them, mitigating them, or avoiding them. Risks can be mitigated by setting money aside in advance, transferring risk, or avoiding it altogether. Risk assessment Risk tolerance and comfort zone are important factors to consider when assessing risks. Risk assessment can be broken down into probability and impact. [28:52 - 30:08] Closing Segment If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin, and Twitter. If you would like 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 click here to listen to our previous episodes. Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “It's not about avoiding risk. It's about getting a handle on it, getting ahead of it. And going into our deals and our projects with our eyes wide open. ” - Stephen Simpson
Being able to develop successfully in real estate requires a variety of aspects. A significant part of that is about choosing the right relationships. In this episode, I discuss the different types of contractors and how to find the right one for your project. I also stress the importance of pre-planning and working together with the architect, as well as having good relationships with your suppliers and tradespeople. Remember, if you are able to leverage your resources and manage your relationships effectively, you can save money on your project. [00:01 - 05:00] What to be Mindful for When Hiring Contractors Avoiding common mistakes when hiring contractors The tendering process is often difficult and expensive and it is difficult to get good pricing in advance. Developers should build trust with their contractors and avoid playing games with them. [05:01 - 29:06] The Value of Relationships and Early Planning Valuing relationships It is important to have a good relationship with your general contractor, as they can be a valuable asset during the construction process. Be aware of the different types of general contractors and to have a plan in place for any potential problems. Commercial real estate planning Pre-construction planning is key to ensuring a smooth project. Having the right team on board is essential and relationships are key to success. [12:16 - 13:30] Closing Segment If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com. I want to make sure to cater to those interested, so please use the word “coaching” on the body or subject line. You can also follow me on Linkedin, and Twitter. If you would like 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 click here to listen to our previous episodes. Follow The Investing Podcast on all Streaming platforms. Deezer, Apple Podcasts, Google Podcasts, Spotify, or visit our YouTube Channel. Tweetable Quote: “The solution, at least in my experience, is preconstruction and really picking a general contractor early to help you through the design phase and value engineer to catch any mistakes now before it's too late.” - Shane Melanson
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