Buying Commercial Real Estate for Beginners [A Step-by-Step Guide]

[@TylerCauble]

Get game-changing commercial real estate tools and freebies at www.tylercauble.com/resources

[@jchan2811]

Hey Tyler, after doing the property condition report on a shopping center, is it common to ask seller for credits if you find the roof or HVAC system to have less than 3 years of life left?

[@TylerCauble]

You certainly can - some sellers are willing to work with you and some aren’t. If not, then you’ll need to account for that in your capex budget

[@NickSellsMonmouth]

Hey Tyler, I'm a 5 year Rutgers student w/ a 4.0 GPA (one year shy of graduating), pivoting to commercial real estate. My best friend, who is equally as driven, has found passion and success from it. As a lover of education and entrepreneurship; I couldn't be more grateful I've landed here as my introduction to it all. You are a talented educator and you have got me so excited about the grind to come. Thanks a ton, Nick

[@TylerCauble]

Glad to hear it, Nick! Commercial real estate is a great industry

[@Patricia-Margaret]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[@Patricia-Margaret]

@rachealhubert74 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. Bridget Mary Turow, a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

[@Patricia-Margaret]

@rachealhubert74 Bridget Mary Turow

[@Patricia-Margaret]

Lookup with her name on the webpage

[@TylerCauble]

☠️

[@xaviy649]

hahahahaahahahahahahaahaha

[@TylerCauble]

Have a question that I wasn't able to cover in the livestream? Let me know below! Also - shout out to Siri for joining in a couple times 😁

[@carsonprince7301]

Good stuff man. There is a lot of “hype” on these sorts of topics that don’t tell you many details, so it’s nice to have a more thorough breakdown of the info 🙌 keep it up!

[@TylerCauble]

I appreciate that! I'm definitely aiming to be more "real" with everyone on this channel about commercial real estate

[@cankton1607]

Great information and your presentation of this information has inspired me to look further into commercial real estate. I have great eye for looking at commercial real estate and redevelopment. A salary is just an employer that pays you to defer your long term goals.

[@lifewithtashabae4846]

One of my FAVORITE channels on commercial real estate ! Thank you man!

[@TylerCauble]

I appreciate that! Thank you 😁

[@TheTraderInvestor]

What resources do you recommend for finding the right submarket for commercial property?

[@TylerCauble]

Best thing to do is to drive the markets and get familiar with them. Learn every street, the tenants, the real estate players. Then you'll know whether it's worth investing in or not

[@TheDaddymike84]

I want to start a new business so i will need a commercial building. So i figured to learn how to find out if a purchase is smart or not. Im Day 1 guy. Also I freaked out at the gym when the intro siren went off in my earbuds and i looked around and it took me a second to understand why no one else was running. For real My heart dropped.

[@TylerCauble]

Haha that's hilarious! We typically recommend buying your first building after around 5 years or so after starting the business since you'll be in more of a groove with your size / scale. However, if you have the capital to acquire property now, it's always a good move. If nothing else, it could become a solid rental property in the future.

[@Professorrob2k24]

Hey brotha, a newbie here lol. I’m a Florida resident, now would you recommend Florida as a great place to invest in commercial or residential real estate?

[@Wyzdom1974]

What are your thoughts on parking lots/garages investing?.

[@TylerCauble]

I think they can be great if you're buying in the right location with a good price. The big thing here is to have the future vision of what the parking lot could become so that you can exit at a higher value, such as to a developer that wants to build a high-rise

[@Wyzdom1974]

@@TylerCauble Appreciate the feedback.!

[@collinbaptiste5619]

Tyler, thank you for that great information. I appreciate it so much. I am getting into commercial real estate in the next 9 months. Watching you on KZbin, bring a great help to me. You're a flipping genius, bro 👏🏾 🎉🎉

[@TylerCauble]

Glad it was helpful! Appreciate the kind words - congrats on breaking into the industry

[@StevenBradshaw-p4t]

So solid sir. Im 53. Ive been in corporate finance for 25 years. This info you provide is so helpful. Im learning a lot here. Definitely want to get a one on one with you.

[@TylerCauble]

Fantastic! Glad to hear they've been helpful - we'll keep the content coming!

[@Miamimets305]

im sure two single agents can work this out with little to no use for a transaction broker?

[@TylerCauble]

@@Miamimets305 what do you mean? Brokers are agents, if that’s the confusion

[@Miamimets305]

@@TylerCauble no I’m saying imo there’s basically no need for a transaction broker especially if they’re not on a side watching out for the best interests of a buyer or seller what is the actual point of a transaction broker makes 0 sense can be solved w two single agents both looking out for their duties

[@TylerCauble]

@@Miamimets305 I’m not really understanding the context of your question. If the buyer has a broker and the seller has a broker, then yes, there’s no need for a third broker to be involved

[@jellissafolkes9538]

Amazing video. Thank you so much for the inspiration and education you share to us as newbies

[@TylerCauble]

Thank you! I'm glad to hear that :)

[@aneeshkumar1891]

Tyler, thank you for this video. A lot of great information on commercial investing.

[@TylerCauble]

Glad it was helpful!

[@nicholas8045]

I appreciate this content. I'm at the beginning stages of getting into this industry, so this is great stuff! Thanks brotha, keep it up!

[@TylerCauble]

Glad it was helpful! Congrats on getting into CRE - best move I ever made for myself

[@NeilSeaver]

What’s the update years into it now that this comment is two years old? 😅

[@javonne2561]

Could you please make a video on why you rent for your own place? Very curious to hear you elaborate on your reasoning

[@TylerCauble]

Definitely something I could do! Long story short - cheaper overall and less headache since I don’t have to worry about anything. I’ve bought a farm since I made this video, though, so things have changed but had that farm not popped up, I doubt I would’ve bought for a while

[@fbi6555]

I appreciate this PowerPoint and work.

[@TylerCauble]

Thank you, Mr. FBI man

[@realtorryantx]

Great meeting you in Nashville a couple months ago. Just finding your YT channel but I'm subscribed and loving the content. Keep it coming 👍🏼

[@TylerCauble]

Likewise! Glad you're liking it

[@TylerCauble]

Ready to start underwriting and analyzing your own commercial real estate investments? Get the spreadsheets that my team and I use here: www.tylercauble.com/models

[@teacherhomieg]

Very thorough. I’m getting my wife to listen to your vids!

[@TylerCauble]

Nice!

[@nathangreenberg9022]

Thanks Tyler for posting this very informative video!

[@TylerCauble]

Glad it was helpful!

[@Linux333]

Excellent video! Looking forward to your live streams.

[@TylerCauble]

Cheers! 🤙🏼

[@carlcuesta2157]

I need this, truly appreciate it

[@TylerCauble]

Anytime! Glad you liked it

[@Flygaljae]

When working with a commercial broker, do you inform them on what you’re planning to do with the property?

[@TylerCauble]

I certainly would since they'll know how you'd like to really approach the project!

[@Miamimets305]

soi gooooood

[@TylerCauble]

👏🏼👏🏼👏🏼

[@SweetJeanne83]

Can I just go into buying commercial real estate or do I need a portfolio with some other things that I own first?

[@TylerCauble]

You can do either! You don't necessarily need the experience of residential real estate in order to start commercial real estate. You just need the education, knowledge, and a good mentor!

[@bryantmock6934]

Question for you sir. Please forgive my ignorance on this. Do you have template commercial tenant leases? In the three formats? I'd be happy to purchase. Thank you!

[@TylerCauble]

No worries at all! I do have a couple of lease templates but they’re only available at the moment through my course on commercial real estate investing. We may consider selling them individually in the future but they’re in the course with videos explaining everything and you can learn more about that here: www.crelaunchpro.com

[@missuniverse8931]

This is 🔥🔥🔥 bro!!! I just found your channel. I have seen you at a couple investor meetings. But I didn’t know you had this channel. Glad I stumbled upon a great find!!! 🔥🔥🔥🔥 Learning so so much here…

[@TylerCauble]

Nice! Are you a member of REIN? Or have you seen me somewhere else?

[@missuniverse8931]

@@TylerCauble I was a member of REIN last year. I may rejoin since things are opening back up. At least I hope they do and keep business moving forward.

[@TylerCauble]

Yes! We’re starting the commercial classes back in-person 🤙🏼

[@bhi4728]

Do your lenders, both purchase and rehab, have a deed of trust on the property? If not, how do they secure their investment?

[@TylerCauble]

It’s the same lender and yes - they’ll have 1st position on the property

[@Ricocase]

Do you need community support before buying a commercial property? Are vendor take backs popular?

[@TylerCauble]

Not always, but it certainly helps! What do you mean by vendor take backs?

[@mnoura1]

Great Video, thanks for breaking it down

[@TylerCauble]

Anytime! Glad you enjoyed it

[@SheriMaass]

Such great information and knowledge. Appreciate you sharing! Just starting to look into this. I've done a lot of pro-bono business consulting and am interested in maybe combining these together. So much research still to do. But great starter info!

[@TylerCauble]

Glad it was helpful! I've enjoyed sharing everything on KZbin - there wasn't an easy way to learn the business when I got into the industry, so I told myself I'd share that knowledge for free when I had the opportunity

[@tcconstruction7666]

Awesome information i really enjoy your podcast i am looking into the multi- family unit here in MD

[@TylerCauble]

Glad to hear that! Best of luck on the multi-family investment - they're doing very well right now

[@nomadicgamer3349]

Siri was messing with my head lmao 🤣

[@TylerCauble]

Haha she got me good!

[@Flygaljae]

Great video so far btw! Another question.. where should we search these zoning limit, codes, survey/environmental/geotechnical reports? Are there certain sites or should they owner have those on hand?

[@TylerCauble]

Yes - your local GIS maps and county tax records should have everything

[@oscargodinez7573]

Diferent information,, way to go Mister.

[@TylerCauble]

Glad you liked it!

[@djchena2518]

I would like to get a copy of your Letter of Intent. I always listen to your show and you know you stuff.

[@TylerCauble]

Glad you’re enjoying it! You can download your copy at www.tylercauble.com/resources

[@marshallhennington4369]

Excellent info. Thank you sir!

[@TylerCauble]

Glad it was helpful!

[@matthewrosas192]

Just turned 18 a few month ago and trying to get the best credit score on my sixth months to see if it’s possible to get into having a commercial property investment portfolio as early as possible

[@TylerCauble]

Can't start too early! It all compounds and grows fast if you do it right

[@e.williams13]

Good for u. Sounds like u got it head on straight. Ur going to make big moves. Most kids ur age aren't even thinking about credit and real estate investment 👍

[@arthoward5602]

What books would you recommend for a beginner?

[@TylerCauble]

Here you go: www.tylercauble.com/blog/commercial-real-estate-books

[@remaxsouthwestplatinumagen4662]

Great content. I aspire to buy a warehouse in the next 3 years.

[@TylerCauble]

You can do it! Industrial real estate can be an excellent investment

[@emeraldpanda7723]

If I want to get a commercial property and use it for only personal use and no business do I need to get a license pla

[@TylerCauble]

Likely, yes - you will need to follow the rules and regulations in your local jurisdiction

[@emeraldpanda7723]

ok thank you

[@cybersteady]

You can use leverage to buy stocks. Its called margin trading. But the volatility of stocks can make this kind of leverage either very risky or very rewarding.

[@TylerCauble]

Yep - you're right. I should've included that but didn't because of the risky nature there but you are able to buy stocks with leverage

[@goodygoody5450]

What should someone do if they want to purchase a mixed use or special purpose property? I've got my eye on a few different churches for sale. They have a sanctuary in the front, which I'd use as an art studio space, and a separate house in the back with a full kitchen and bathroom. They're right in the middle of neighborhoods. Should I still pursue a commercial agent and lender?

[@TylerCauble]

Definitely recommend starting with the right commercial real estate broker and a commercial real estate attorney. You'll definitely want verification that the site is zoned for your intended use so you don't buy a property only to find out you can't do anything with it

[@goodygoody5450]

@@TylerCauble Thank you!

[@blakksonni]

New subscriber sir... I'm sharing you with my network!

[@TylerCauble]

I'm glad to hear it! That's very kind of you

[@mohammedrahman4905]

Tyler, I've been learning a lot listening to your content. Thank you for putting this information out there. I'm a small time residential investor and want to acquire my first Commercial Multi-Family by EOY 2022 - this video along with other clips have been incredibly insightful.

[@TylerCauble]

Congrats! That’s a big move - hope these videos continue to help you get there 🤙🏼

[@KRYFORME]

I’m in the same boat ! Moving from residential to commercial seems like a great way for steady income

[@TylerCauble]

It definitely has its challenges and a longer ramp up period but commercial has better long-term potential for sure

[@Miamimets305]

so what do they even do?

[@fernandomejia5712]

Great stuff ! Do you have a group or mastermind you can refer to that involves CRE that is not multifamily?

[@TylerCauble]

I don't, unfortunately, but we're looking at starting one!

[@jesseflick6385]

So much great information.

[@TylerCauble]

Thank you! We’re working to give actionable steps to anyone interested in commercial real estate

[@bronsonmasse1275]

Thank you for this and more! 🙌🏼

[@TylerCauble]

Anytime, Bronson!

[@daviddoten6729]

love this video - just getting started - im looking at larger apartment complexes - would love to connect.

[@TylerCauble]

Congrats on getting into the industry! Multifamily can be very rewarding

[@dkim4876]

thank you for sharing all thr good stuff for free

[@TylerCauble]

Anytime, Daniel!

[@TGGSHOPUSA]

I have a client who wants to invest 1.5m , do you have any suggestions? First time getting into real estate.

[@TylerCauble]

I’d have to know a lot more about what they’re wanting to invest. Is it $1.5m cash or are they planning to leverage? Do they have any asset types they prefer? How risk averse are they?

[@doncamillo8611]

Before this video, I didn't know what I didn't know, but now I kinda know what I don't know 👍

[@TylerCauble]

Baby steps 😂

[@leventtatlisu1324]

Grateful lessons

[@TylerCauble]

Glad they were helpful!

[@lionssuperbowl]

This was a great video

[@TylerCauble]

Appreciate it 👊🏼

[@bryantmock6934]

Your link to Amazon tools is not working sir.

[@TylerCauble]

Appreciate your letting me know! He’s the right link amzn.to/42WLcFR

[@jordanpointer3292]

If you are trying to whole sale commercial real estate do you still need a commercial lawyer for the purchase agreement contract

[@TylerCauble]

I always recommend having an attorney but it’s not “mandatory,” by any means

[@reicapital4967]

Yes. Good information. LOI Pls

[@TylerCauble]

Glad you enjoyed it

[@Chiefchief4444]

Thank you

[@TylerCauble]

🤙🏼

[@realdata8624]

Thanks Tyler!

[@TylerCauble]

Anytime, Salt!

[@temiymahs_World]

How much capital should investors have on hand to get started?

[@TylerCauble]

Completely depends on the approach you're going to take with your acquisitions. If you're going for 100% seller financing, then theoretically you'll need zero cash (though, that's not always the case). I typically recommend buying a commercial property in the $1.5m to $2m range to start. At a 25% to 30% down payment, you're looking at around $500k.

[@tommyescalona880]

Thanks! I love to purchase a letter of intent if you ever come out with a template for us newbies 🌄

[@TylerCauble]

Even better - I have one for free! Check it out here: www.tylercauble.com/resources

[@moestaxx286]

would you recommend for someone just starting out in commercial real estate to work under a broker. like becoming an agent to get more knowledge and then when ready buy first investment property?

[@TylerCauble]

That’s what I did - I thought it was a great way to get started

[@dejsusnovas7741]

Thank you sir

[@TylerCauble]

Anytime!

[@jonc2276]

I’ve been past an old lumber yard that is for sale it’s a little expensive for what it is and what shape it’s in and needs a lot of work has zero parking and has great potential just trying to figure out what to have there would be difficult

[@TylerCauble]

Figuring out what to do with a site is always the fun part!

[@kun_fu_taco4775]

What should I ask a Realtor when searching for a Retail Building?

[@TylerCauble]

I'd recommend bringing your broker along with you and letting them ask the questions. They've done it before, so they'll know what to look for

[@Trill4All]

What’s the date base for the tax research

[@TylerCauble]

CRS Data - bit.ly/LocalLook20

[@Jiswavy]

Really good content

[@TylerCauble]

Thank you, Edward! Glad you enjoyed it

[@timeme03]

Hi can you name any good Real estate podcasts please

[@TylerCauble]

Absolutely - you can check out mine: The Commercial Real Estate Investor Podcast. I also recommend America's Commercial Real Estate Show with Michael Bull and Logan Freeman's Compression Podcast

[@gllm415]

👍 learn a lot today

[@TylerCauble]

Glad to hear it!

[@alfredturner]

You spoke about a LOI and a video on how to put together the LOI where is that video. Thanks

[@TylerCauble]

You can find that letter of intent template for free on my website: www.tylercauble.com/resources

[@houmanghasemian3580]

Nice nuggets of info. Much thanks

[@GenXdad]

found a local property. it's an old warehouse. it goes street to street. i was looking to buy and convert to storage facility. I have no idea where to start.

[@GenXdad]

also, it's listed just under $500,000 in a relatively good neighborhood.

[@TylerCauble]

That sounds like an awesome project to work on! I've got plenty of videos to help you along the way, but learning how to underwrite the deal to see if it makes financial sense would be the best starting point: kzbin.info/www/bejne/l3PJmmmoiLKFo6c

[@shanedurkee7308]

Great video! I’m in residential currently and Looking to get into commercial. If you’re in Chattanooga let me know!

[@TylerCauble]

Thank you! I’m buying a building in Chattanooga, so I’ve been back and forth quite a bit lately. Love that city

[@YungJayInDaTrap]

Will commercial brokers help you even if you intend to obtain a property with seller finance? I ask this because I don’t see how they could get paid for it if you seller finance with 0 percent down.

[@TylerCauble]

Likely not - they'll see it as a low probability of closing since you don't have the capital and are dependent on finding a seller that is willing to do seller financing, which can be tough to find

[@gllm415]

Good stuff newbie Sir

[@TylerCauble]

Welcome aboard!

[@MrAplazas]

Where do you get the CRS data?

[@MrAplazas]

By the way.. great content. I'm in property management and bring excellent points.

[@TylerCauble]

I’m glad you’re enjoying the videos! You can check it out and get 20% off here: bit.ly/LocalLook20

[@bvm935]

Guys, what is CRS? Can't find anything...

[@TylerCauble]

It’s CRS Data, try www.CRSdata.com

[@luisluna8858]

Hello sir do you have any mentoring program that I can follow? I'm trying to buy my first wearhouse but I'm not able to find much information

[@TylerCauble]

Hi Luis - yes, I do offer coaching / mentoring. Please email me at [e-mail] for more info

[@derekthomas2103]

Hey ty

[@TylerCauble]

🤙🏼

[@HansSchwarz0130]

CRE = Infinite Returns

[@TylerCauble]

I'll take it!

[@HansSchwarz0130]

@@TylerCauble 🙌

[@avstechnologiesllc5344]

Hello , I’m looking for morgage broker for 8 office building , can you recommend someone?

[@TylerCauble]

I would recommend finding a lender that is local to the market in which you're buying the building, they're typically the best bet

[@ovingtonprophete8798]

Good afternoon Please let me know about the letter of intent.

[@TylerCauble]

Please email [e-mail] and I’d be happy to get you a copy

[@ovingtonprophete8798]

@@TylerCauble Thank you.

[@TylerCauble]

Absolutely

[@trevorjwatkins3533]

I've got family and friends that want to loan me money to push my CR harder. What are good terms for F/F without giving away the farm?

[@TylerCauble]

Great question. Are you looking at giving them equity or debt?

[@trevorjwatkins3533]

@@TylerCauble more of just basic interest in the investment. Not necessarily as profit but I don't want to discount the guesture.

[@TylerCauble]

Hmm...just depends on the global terms of the project. If they’re bringing the capital and you’re signing on the debt and doing all the work, 50/50 could work out. You could also give them less and offer a preferred return. Bruce and I dove into structure on our podcast here kzbin.info/www/bejne/qZy5Z3urrr9qadk

[@G000POINTBLANK000D]

Bruh your Siri makes me confused like I didn’t activate you?!

[@TylerCauble]

😂 right?

[@taipeikartman]

No reference to Crypto and Real Estate?!

[@TylerCauble]

We’ve got content coming out on that soon! Not quite a beginner’s Intro to CRE, though 😁

[@jasonmorris858]

If you're getting into commercial buildings find a proficient Jewish Legal Eagle see the fact is you sign a Lease then the gambler owner says 2 you it's been 6 months rent is double own your own property or soldier on as an employee.

[@TylerCauble]

Leases are legally binding contracts, so the landlord cannot raise the rent outside of what has been agreed upon. Definitely recommend hiring an attorney!

[@snapfires5127]

It seems I heard some AI or some person helper !!?

[@TylerCauble]

Haha yes, for some reason Siri came on through my computer

[@jasonmorris858]

Commercial Realty Beginnings, lesson #101 get chatting with a few people first see commercial buildings simply usually come up in a fire-sale especially retail shops if you plan on getting large coldhard cash you need a base could be anywhere golden is near a retail Bank the "bricks & mortar" not "clicks & mortar" see it's got to be a family thing you test the grand children also whoever hasn't got the sweet tooth is Benefactor #1 AND TELL THEM see look at Calvin Klein his old shop 571 5th Street NY USA that family has owned the same shop since October 1820AD it's ofcourse been EVERYTHING HONEST a butcher, café, barber, TV repairs and after Calvin did some Tailor's Apprenticeship his turn see if you're getting into commercial buildings find a p

[@Agent77X]

Tyler cannot afford to buy a home yet! He is a renter still!

[@TylerCauble]

Lol. I can definitely afford to buy a home. They’re not a good investment

[@tonyperry4311]

Is there anyway I can email you

[@TylerCauble]

Sure - you can reach us at [e-mail]

[@toankiem802]

Chance to upgrade your device go ahead tap me.