The Easiest Commercial Property for Beginners to Own

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Tyler Cauble

Tyler Cauble

Күн бұрын

When you’re first getting started in commercial real estate, there’s one asset type that stands out above the rest for beginner investors: flex space. It’s similar enough to small multifamily (like a 5-plex) and has far more benefits that buying apartments. Let’s dive into the actual numbers behind doing flex warehouse investing so you can confidently buy your first commercial property.
Shout out to Hamza Ali for diving into this one with me!
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#flexspace #flexwarehouse #flexoffice

Пікірлер: 288
@TylerCauble
@TylerCauble 8 ай бұрын
Wanna dive deeper into commercial real estate investing? Check out www.crelaunchpro.com for online commercial real estate courses, 1-1 mentorship, and more.
@ericareid4591
@ericareid4591 3 ай бұрын
Hello. Would you need to be a licensed agent in order to take the commercial real estate course?
@rickdunn3863
@rickdunn3863 3 ай бұрын
I think ANYONE who is interested in commercial real estate need to investigate getting financing before they jump in. I am a residential real estate investor, but when I bought my first commercial metal building in Industrial zoning I hit a brick wall with financing. I could only get a 5 year ballon mortgage. I was told this is how commercial real estate financing worked. I know not to do ballon mortgages since I don't have a crystal ball. How I got around this was a SBA loan on the building. I personally like residential over commercial for a bunch more reasons.
@TylerCauble
@TylerCauble 3 ай бұрын
100% - that's usually the first thing I recommend anyone interested in commercial real estate do: build relationships with commercial brokers and commercial lenders. The process is very different from residential real estate
@realtorlifewithdave
@realtorlifewithdave 3 ай бұрын
This is exactly what I'm going through right now!! But SBA requires 51% owner occupied.
@rickdunn3863
@rickdunn3863 3 ай бұрын
@@realtorlifewithdave I occupied the building, so it wasn't an issue for me. Not sure how to handle your situation, but If it were me, I would be creative.
@timcrawford7923
@timcrawford7923 3 ай бұрын
Excellent advice thanks
@twi5tyfruitcake
@twi5tyfruitcake 3 ай бұрын
What r the reasons u like residential more?
@MrSeriouscomic
@MrSeriouscomic 3 ай бұрын
I am building a 85,000 sf flex space project right now. Getting the pro-forma to work in this high-interest rate and high construction costs environment is harder than it was portrayed here
@rohanpatel8886
@rohanpatel8886 3 ай бұрын
where ? i am thinking to do the same in NE philly suburb. thanx.
@passitforward
@passitforward 3 ай бұрын
KZbinrs make everything look soo easy so that they can sell you their course
@TylerCauble
@TylerCauble 3 ай бұрын
You can get everything you need on KZbin for free here 😂
@TylerCauble
@TylerCauble 3 ай бұрын
@mrseriouscomic - it depends on your market for sure, and how you’re planning to handle construction, your local regulations, etc., but this is entirely possible in suburban / rural locations
@1realtruthrightnow742
@1realtruthrightnow742 3 ай бұрын
@@rohanpatel8886 We have a close eye on you.
@AGmgmtinc
@AGmgmtinc 3 ай бұрын
I love this space. Great video, I like how you break it down.
@TylerCauble
@TylerCauble 3 ай бұрын
Appreciate it, Amit! Great talking with you earlier
@scott4string236
@scott4string236 6 ай бұрын
Hi, I just started watching your channel. Sounds like good stuff! thanks
@TylerCauble
@TylerCauble 6 ай бұрын
Thanks for the sub! Hope you enjoy the channel
@mikep4869
@mikep4869 8 ай бұрын
That is certainly something to look at. Thanks for sharing.
@TylerCauble
@TylerCauble 8 ай бұрын
Absolutely! My team is pretty excited about it, so they’ve been digging in over the last week
@rishiramkissoon6976
@rishiramkissoon6976 Ай бұрын
Good video an so true. My first business was a coffee microroastery and getting flex space that is affordable and can be permitted for food production is hard. IN Tampa we had a surge inlocal craft food and these spaces became $. I found one across the bridge in St. Petersburg and I spent years in the space observing other businesses. I quickly realized, that this is the business I should have been in. 1500-2000 sq ft flex spaces are incubators for small business for everthing from food, services, light manuf., logistics, retail/wholesale. Construction is straightforward. If I have the capital in the future it would definitely be the commercial project of my choice-having been a tenant myself
@mayankpatel1177
@mayankpatel1177 8 ай бұрын
Nicely presented info
@TylerCauble
@TylerCauble 8 ай бұрын
I appreciate it!
@deepikaatkinson4111
@deepikaatkinson4111 3 ай бұрын
Thanks for the details and explanation..😊
@TylerCauble
@TylerCauble 3 ай бұрын
Anytime!
@ramezqubain8177
@ramezqubain8177 3 ай бұрын
You are da man. Love this. Now I am going to pursue developing flex space
@TylerCauble
@TylerCauble 3 ай бұрын
Glad to hear it! Keep me in the loop on your journey
@NickStewart-dc9qo
@NickStewart-dc9qo 6 ай бұрын
I like this I like what he said about the tenants great information
@TylerCauble
@TylerCauble 6 ай бұрын
👊🏼👊🏼
@nicellis2969
@nicellis2969 8 ай бұрын
Great content !
@TylerCauble
@TylerCauble 8 ай бұрын
Appreciate it!
@raptheg
@raptheg Ай бұрын
love the channel bro, nothing but game
@harrylawrealestate
@harrylawrealestate 8 ай бұрын
Def attending his event to meet like minded individuals. Multifamily is saturated with gurus which more will come. Industrial all the way.
@TylerCauble
@TylerCauble 8 ай бұрын
Nice man! I’ll see you there
@miguelrodriguez7253
@miguelrodriguez7253 3 ай бұрын
My goal for this first quarter is to understand everything you talked about in this video.
@TylerCauble
@TylerCauble 3 ай бұрын
Love it! I’ve got all the videos you need here on this channel 👊🏼 let me know whatever questions you have in the comments as you dive in
@miguelrodriguez7253
@miguelrodriguez7253 3 ай бұрын
@@TylerCauble absolutely, I’m relocating to Reno and my goal is to start a business and own my own commercial real estate there but I’ll be real with you 80% of this video went over my head and I take personal offense to that, it’s time to do bettet
@TylerCauble
@TylerCauble 3 ай бұрын
@miguelrodriguez7253 haha love it! Time to dive in and consume all the knowledge you can 🔥
@AlethiaHines
@AlethiaHines 2 ай бұрын
This was great information for me. I'm new to real estate investing as a newbie and planning to provide rental properties for the VA or the military. This offered a better perspective on commercial investing.
@kiarashjahan8780
@kiarashjahan8780 3 ай бұрын
Great video !
@TylerCauble
@TylerCauble 2 ай бұрын
Appreciate that!
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
Dude is on point. This is the game I played. More money in your pocket if you develop, good deals are "rare", Commercial loans cost more short term with balloon payment, I could not get one had to non doc loan 2 houses and still did not have enough money to finish. Luckily I was able to sell my house at the time, made 100k in one year. Project was finished in 2007. Just sold at 100% profit. Just 1031 to a 9% cap rate with 5 year leases. Did alot of research. Get a rood inspection as this can numbers fast. Nothing is easy but this is doable but you need money to start and the land.
@TylerCauble
@TylerCauble 2 ай бұрын
That’s pretty much exactly what I do - do an “active” deal where I have to put a bunch of work into it, then 1031 the proceeds into a STNL or other NNN lease deal to set it and forget it, then repeat the process. Doesn’t take too many of those to retire
@marcusroberts434
@marcusroberts434 2 ай бұрын
​@TylerCauble Could you do a video on this process? What is a STNL?
@tadowdammit9153
@tadowdammit9153 3 ай бұрын
A great glamping space is relatively easy and depending on what you paid for the land could be very profitable.
@TylerCauble
@TylerCauble 3 ай бұрын
Truth. We've looked at doing some of those in Chattanooga, would be a fun move to make
@Expcommercialbusinessbroker
@Expcommercialbusinessbroker 8 ай бұрын
Building from the ground to completion, great video thanks for sharing
@TylerCauble
@TylerCauble 8 ай бұрын
For sure. Best way to do it in my opinion!
@tonyotag
@tonyotag 3 ай бұрын
flex space depends on zoning, but if it is outside major urban areas alongside highways for easy access it is viable.
@TylerCauble
@TylerCauble 2 ай бұрын
for sure
@iliketacos6067
@iliketacos6067 3 ай бұрын
Thank you
@TylerCauble
@TylerCauble 3 ай бұрын
Of course!
@mmcleod111
@mmcleod111 5 ай бұрын
Great video. I have been researching this area and want to do my own projects
@TylerCauble
@TylerCauble 3 ай бұрын
I appreciate it! Keep me in the loop - always exciting to hear what others have going on
@edwardmiller-pp7mg
@edwardmiller-pp7mg 3 ай бұрын
thanks
@TylerCauble
@TylerCauble 3 ай бұрын
Happy to do it
@jeffmomoney1718
@jeffmomoney1718 3 ай бұрын
Here in Florida I’m looking at 300k per commercial acre and that’s on the low side
@TylerCauble
@TylerCauble 3 ай бұрын
Yep - varies all over the country depending on supply / demand
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
Building supplies are too high at the moment.
@mikesterman123
@mikesterman123 2 ай бұрын
Is it still profitable? Also in south Florida and curious on the other numbers you’re looking at if you don’t mind sharing. I will probably stick to buying and renting but still curious on construction costs
@FoodForestBrad
@FoodForestBrad 3 ай бұрын
I'm so curious about building a 10,000 sf building for indoor pickleball courts in Asheville, NC. I wonder what the cheapest structure is that's suitable for that use case.
@TylerCauble
@TylerCauble 3 ай бұрын
Flex buildings could work well for that - cheaper to build than most other types of buildings and not uncommon for uses like that to occupy them
@realtorlifewithdave
@realtorlifewithdave 8 ай бұрын
I wonder how its labeled in terms of zoning. Ill check with the county..
@TylerCauble
@TylerCauble 8 ай бұрын
Typically, it’ll fall under industrial zoning
@2ndhandtrading
@2ndhandtrading 8 сағат бұрын
Iam in warehousing for 25 years, just started a new projects good opportunity to invest. 😉
@StephanRaczak
@StephanRaczak 5 ай бұрын
Thanks for this insightful video. You have a calculation mistake in there though: 43,560 sqft * 5 USD = 217,800 USD (not 240,000 USD as you mentioned). In my own plot acquisition research, I am aiming at paying no more than roughly 100k for 1 acre.
@TylerCauble
@TylerCauble 5 ай бұрын
Good catch!
@carolday3381
@carolday3381 3 ай бұрын
Now this is interesting. Interested in how to get situated to start from nothing. Then as i started typing this comment i saw the ending vid link for beginners 😊 awesome. Would like to have 3 buildings in 5 years, build the retirement fund.
@TylerCauble
@TylerCauble 3 ай бұрын
Glad you enjoyed it! Keep me in the loop on your progress
@howiecoro
@howiecoro 8 ай бұрын
Just curious who do you recommend for building manufactures on the east coast?
@TylerCauble
@TylerCauble 8 ай бұрын
I’d recommend discussing that with your contractor, they’ll likely be able to point you in the best direction. Butler tends to be what I see most frequently
@howiecoro
@howiecoro 8 ай бұрын
Understandable… yes I have heard of Butler… I was just curious because what I noticed was a lot of these steal building companies are brokers and just do the engineering… and then it all gets manufactured out of the same plant… depending on location in the country… I am assuming there is cost savings depending on the engineering company that is all the same materials.
@terrifictonyschannel2071
@terrifictonyschannel2071 3 ай бұрын
Nice video, but...I think the major issue is on raw land you will need to own it 100% no financing, for most banks to finance the development part. As for the development funding, you will probably need to have a competent partner who has a track record or a very good contractor with a history of building these, for a bank to lend you the construction loan and possibly still have to personally guarantee the loan. Can't say it cannot be done but those are probably the major hurdles. I saw your comment on 1031 into the raw land, I would imagine that can be done as it's still an investment property, and total investment costs (with the development) would have to be higher than the building sold. But the thumbnail says "Best for Beginners"?
@JohnHandle-
@JohnHandle- 2 ай бұрын
This is pretty easy for beginners. Money isn't really a concern even for people starting out fresh. How many investers do you think would be needed to make something like this happen? 1 or 2 hundred regular blue collars could make this happen easily. It's the easiest thing in the world. Everyone has at least a few hundred friends on facebook. Send out the message, even if only one or two percent of your friends list responds with interest- that gives you access to their friends list and the snowball has started. Money is the first problem an entrepreneur learns to navigate around. If you can't raise funds then you aren't even here yet.
@TylerCauble
@TylerCauble 2 ай бұрын
Yep - paying cash for the land is typically the best way to approach development
@JohnHandle-
@JohnHandle- 2 ай бұрын
@@TylerCauble I am interested in investing, tell me- do you have any future projects planned?
@TylerCauble
@TylerCauble 2 ай бұрын
@JohnHandle- we don’t right at this moment but are actively on the hunt for our next opportunity. You’re welcome to join my investor email list at www.tylercauble.com/invest
@tomwilcox1671
@tomwilcox1671 5 ай бұрын
what type of tenant fit out are you including? If a tenant want's more office than warehouse who pays for the fit out?
@TylerCauble
@TylerCauble 3 ай бұрын
It's all negotiable depending on what you want and what the tenant wants. If they want you to pay for it as the landlord, then I would amortize it into their rental rates. If they're willing to pay for it, then I would likely give them some free rent to help cover it
@raymieyounkin7498
@raymieyounkin7498 2 ай бұрын
Did you address build-out costs for each tenant and I just missed it in the video? I would think those additional costs would quickly erode the gains on resale after being leased-up.
@TylerCauble
@TylerCauble 2 ай бұрын
Buildout costs are usually in the $10-$20/sf range but can range anywhere from $0 to $50+ depending on what you negotiate. Those costs are already included in my assumptions in this video, though.
@davidchang2250
@davidchang2250 Ай бұрын
You mentioned pickle ball but the video showed racquetball lmao😅
@TylerCauble
@TylerCauble Ай бұрын
Haha sure did!
@realtorlifewithdave
@realtorlifewithdave 8 ай бұрын
Oh wow 😮😮😮
@TylerCauble
@TylerCauble 8 ай бұрын
🔥
@WTF-sh4is
@WTF-sh4is 2 ай бұрын
I can attest to this video. My dad has bought over 100,000 sq ft of industrial flex space and tailored it to multiple small business tenants. He’s rolling over $800k per year now.
@TylerCauble
@TylerCauble 2 ай бұрын
Nice!
@crgshell
@crgshell 3 ай бұрын
I wonder how many of these metal buildings you put up your numbers seem to be highly optimistic. Have you factored in infrastructure cost you’re going to need on an acre of land. Most cities charge tens of thousands of dollars to hook up to the sewer and water or you’re gonna have to put it in your own septic system, and water-well. most urban areas are going to require you to put in sidewalks and street lighting that needs to be engineered. In fact you’re gonna have to submit engineered plans in most cases.have you factored in the cost of three phase power hook up being brought onto your property? That can be quite expensive and here in California PG&E has a one-year backlog on that and PG&E, won’t even except an application until you’ve got your building and planning permits issued by the county or city. also, if you’re going to use it for anything other than storage or industrial, you’re going to have to figure out some inside finish, which can be costly as well. Have you factored in handicap egress? I’m actually in the process of putting up 100,000 square-foot metal building in Santa Barbara county and I’ll tell you a few other things that I’ve had to contend with. Perk test, parking lots, soil, compaction and engineering, traffic, mitigation, plan, stormwater, mitigation plan, landscaping and vegetation plan, exterior lighting, electrical power offset agreement, biological resource plan and wildlife corridor‘s there’s more but that’s this is off the top of my head. I know Santa Barbara is probably more restrictive than most of the rest of the country but you’re gonna have to plan for this type of compliance. Lastly, in your video, when you’re speaking about pickle ball, you’re showing an image of a squash court?
@TylerCauble
@TylerCauble 3 ай бұрын
California is a major exception in nearly almost every conversation around commercial real estate because their rules and regulations are far stricter than most states. These numbers / approaches work pretty well in rural / suburban locations in the South & Midwest, but California is a different beast. You’ll also be charging different rental rates, so always best to study your specific market
@krashanb5767
@krashanb5767 3 ай бұрын
You've made a list of why everything is so expensive in California 😅
@TylerCauble
@TylerCauble 3 ай бұрын
Yeah, I recommend against doing anything in California 😂
@feilox
@feilox 14 күн бұрын
There is a HUGE demand right now... I walk past all those vacant warehouse lots... The good ones converted to garage storage systems, lmao. Unless your warehouse is middle of a city, you aren't gonna even be able stay afloat. All these vacant warehouse charging only $500/month and add free electricity lmao!
@plv702
@plv702 3 ай бұрын
I was intrigued so I watch the video but when he said 300k down I was like whoa. Think about it how many people have 300k to build a commercial building? I think this is why you said there are not enough being built. So for me it makes sense to start with residential real estate until you can build a nest egg to possibly try commercial. Big risk tough!
@ShameenYakubu
@ShameenYakubu 3 ай бұрын
Obviously? It’s commercial. It can’t be compared to residential.
@TylerCauble
@TylerCauble 2 ай бұрын
Yep - commercial real estate isn't cheap. But you can find creative financing or partners to get you started
@fornatitugbechie4422
@fornatitugbechie4422 5 ай бұрын
How can I learn more about this and what is a good amount of capital to start with?
@TylerCauble
@TylerCauble 5 ай бұрын
Got plenty of videos on this channel for you to learn about investing in CRE! The amount of capital depends on what you want to do. If you’re wanting to invest by yourself, then likely at least $250k. If you’re investing with others, then likely around $50k. But it all depends
@dle632
@dle632 3 ай бұрын
That wasn't pickleball
@TylerCauble
@TylerCauble 2 ай бұрын
🎯
@alr5373
@alr5373 3 ай бұрын
Generally, commercial is non-residential buildings that don't contain warehouses. They mainly contain office space. Industrial property are also non-residential buildings that contain mainly warehouses. Knowing the difference between these are important because commercial are already in a recession and prices are about to get hit really hard. Couple that with remote working technology, office buildings may never come back to where they were before. Industrial are at their opposite. That's why these metal building fabricators are so busy.
@TylerCauble
@TylerCauble 3 ай бұрын
Industrial is a good market right now for sure. Lot's of opportunity to convert 1-2 story office buildings into flex space, as well
@jacobissa584
@jacobissa584 Ай бұрын
When building a flex space. What is the recommended minimum and maximum sqft per unit?
@TylerCauble
@TylerCauble Ай бұрын
It depends on your market. You’ll want to survey other flex building to see what people are and aren’t leasing. Typically, I aim for around 2,500sf. That could be as small as maybe 1,200 or as big as 10,000
@Gabstarnow_KJG
@Gabstarnow_KJG 6 ай бұрын
If I do end up buying commercial land and there is a building, would I be able to knock it down and recreate the building? Because I have a certain way I would like my building to look (I’m 14 btw)
@TylerCauble
@TylerCauble 6 ай бұрын
Yep! It’s your property, just be sure to check for any regulations that may dictate what you can or can’t build back there
@Gabstarnow_KJG
@Gabstarnow_KJG 6 ай бұрын
@@TylerCauble thank uuu ☺️🤞🏼
@connorduffy8620
@connorduffy8620 3 ай бұрын
This is great content man. Great surface level analysis but mannnn is developing risky right now
@TylerCauble
@TylerCauble 2 ай бұрын
I appreciate it! For sure - I’d only recommend it if you really understand the deal
@connorduffy8620
@connorduffy8620 2 ай бұрын
@@TylerCauble even then, client of mine is a merchant developer. Built two $900,000 NOI deals, had a 5.75% exit….sold one a 6.6% and the other at a 7.15%….lost that value in 10 months
@TylerCauble
@TylerCauble 2 ай бұрын
Yep - sounds like he didn’t develop them with enough margin. Sometimes people get greedy and think the market is always going to be strong and start dropping the returns they need to justify a deal. You see it in residential all the time - guys overpaying for lots / construction and losing all their money
@bvssrsguntur6338
@bvssrsguntur6338 Ай бұрын
Does anyone has real experience with building these flex spaces inTexas?
@shawnemployee6906
@shawnemployee6906 19 күн бұрын
Anybody have a link to the full podcast or know the other guys social media handles?
@TylerCauble
@TylerCauble 19 күн бұрын
podcasts.apple.com/us/podcast/the-commercial-real-estate-investor-podcast/id1514962783 @commercial_in_nashville on Instagram
@Whatever0704
@Whatever0704 3 ай бұрын
I would like to get into this. NNN :) instead of residential rentals
@TylerCauble
@TylerCauble 2 ай бұрын
Highly recommend it! I love my NNN investments
@amis5339
@amis5339 8 ай бұрын
Does flex typically include AC?
@TylerCauble
@TylerCauble 8 ай бұрын
It usually does since there’s an office component but not uncommon for the warehouse to not have HVAC
@leeforsyth2036
@leeforsyth2036 8 ай бұрын
Yep,,
@TylerCauble
@TylerCauble 8 ай бұрын
👊🏼
@adnannazir8660
@adnannazir8660 3 ай бұрын
how do you lease and break the space up .
@TylerCauble
@TylerCauble 3 ай бұрын
We’ve got a ton of videos on finding tenants / leasing space - probably too much to drop here but you’re welcome to check those out. You typically see buildings of around 10,000sf broken up into 4-5 tenants but could depend on how your leasing goes
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
Best to have partition walls and you may have to put in some roll up doors.
@seanodaniels397
@seanodaniels397 3 ай бұрын
Will there also be more opportunities when the commercial loans blow up in the next 5 years? Or will it be more difficult?
@TylerCauble
@TylerCauble 3 ай бұрын
There are plenty of opportunities in any market. Depends on the sector you’re looking in - plenty of distressed office deals out there but those will require significant work to turn around. Most industrial assets are not in distress and are fine
@seanodaniels397
@seanodaniels397 2 ай бұрын
Flex space can be industrial or commercial correct?
@TylerCauble
@TylerCauble 2 ай бұрын
@seanodaniels397 that’s correct - I think it really depends on who you’re talking to about it or what use you’re leasing to at the end of the day, but banks will treat them the same
@davidburgess189
@davidburgess189 2 ай бұрын
Is it me or is $5 per sq.ft expensive for the land only?
@TylerCauble
@TylerCauble 2 ай бұрын
Depends on where you are - that’s pretty cheap in many markets but could be considered expensive for North Dakota
@davidburgess189
@davidburgess189 2 ай бұрын
@@TylerCauble I’m with you. I’m in Florida though and even here that sounds quite reasonable and achievable to purchase at least an acre based on $5 per sq. ft. It will have to be zoned for commercial use though, correct?
@TylerCauble
@TylerCauble 2 ай бұрын
@davidburgess189 it would certainly be best if it was already zoned - just makes your life significantly easier. That said, you could likely find cheaper land if it needs rezoning, but it’s a significant amount of work and no guarantee that you’ll be successful with a rezoning
@drewd7824
@drewd7824 3 ай бұрын
Who makes the buildings? Anyone know ?
@TylerCauble
@TylerCauble 3 ай бұрын
Butler Building Systems is one group but there’s a bunch out there
@Multifamilyheigh
@Multifamilyheigh 8 ай бұрын
Are you factoring in soft cost?
@TylerCauble
@TylerCauble 8 ай бұрын
These costs include everything except for debt terms since that would vary so drastically depending on person to person
@Multifamilyheigh
@Multifamilyheigh 8 ай бұрын
@@TylerCauble thanks man! Keep adding value.
@TylerCauble
@TylerCauble 8 ай бұрын
@@Multifamilyheigh 👊🏼👊🏼
@Christ_is_King951
@Christ_is_King951 3 ай бұрын
i need a home first
@TylerCauble
@TylerCauble 2 ай бұрын
For sure!
@650tonyd
@650tonyd 2 ай бұрын
Is it beneficial to pay cash?
@TylerCauble
@TylerCauble 2 ай бұрын
It can be - certainly can help de-risk the project and keep your monthly ongoing expenses lower
@classyeze
@classyeze Ай бұрын
Is this application to UK?
@TylerCauble
@TylerCauble Ай бұрын
For the most part. Commercial real estate is relatively the same across the world with nuances in each market. You’ll want to talk to local professionals to make sure you fully understand how it works in your area
@Ricocase
@Ricocase 8 ай бұрын
Rates are 8+? Why would 7% cap make $? Inflation makes it worse, not including food fuel
@TylerCauble
@TylerCauble 8 ай бұрын
Exactly - the numbers don’t work if you’re using debt
@ohitsjaelon
@ohitsjaelon 4 ай бұрын
@@TylerCauble so if I’m borrowing money, I shouldn’t be trying this method?
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
The money just wont go in your pocket for a while an its risky but what's not?@@ohitsjaelon
@ryanthomas2472
@ryanthomas2472 3 ай бұрын
$5/SF is under $220k/acre
@TylerCauble
@TylerCauble 3 ай бұрын
Yeah, messed up the math there 😅 no worries, it’s only permanently stuck in the video haha
@3brandon
@3brandon 2 ай бұрын
Is this possible to do with $20k saved up?
@TylerCauble
@TylerCauble 2 ай бұрын
Sure - you'd just have to find partners or some sort of creative financing situation
@MrTornnado
@MrTornnado 3 ай бұрын
Which is hes channel?
@TylerCauble
@TylerCauble 3 ай бұрын
It’s Hamza Ali
@Greggsberdard
@Greggsberdard 28 күн бұрын
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
@user-it7kg3pm4q
@user-it7kg3pm4q 11 күн бұрын
These are people who have hundreds of thousands or millions to play with. Something tells me they don’t care.
@user-wy9nl5ci8m
@user-wy9nl5ci8m 2 ай бұрын
$5 per sq ft for land is over $215k per acre. Seems really high, even for full developed business park land. Can you explain/confirm?
@TylerCauble
@TylerCauble 2 ай бұрын
Nope - it’s not that high. Depends on where you’re located. Land in suburbs surrounding Nashville can be $30/sf or more. But if you’re in the middle of nowhere with low traffic / low population, then yes - $5/sf would be high
@reblie_maps
@reblie_maps 7 ай бұрын
informative video , We have a commercial real estate mapping software , which can save lot of time of Real estate professionals.
@TylerCauble
@TylerCauble 7 ай бұрын
Thank you!
@daniels9063
@daniels9063 5 ай бұрын
Are you currently developing these assets?
@TylerCauble
@TylerCauble 5 ай бұрын
Yep - actively looking for more of these deals right now
@rodricksage5963
@rodricksage5963 14 күн бұрын
boomers had residencial, we need to make comercial our thing, open a business, make profits and sell it.
@Canthev
@Canthev 3 күн бұрын
What beginner would be able to finance a $340,000 down payment for this theoretical flex-space deal? I guess for commercial real estate the bar for entry is much higher, but surely there are other commercial properties that can be purchased with less money down, that's more approachable for beginners.
@TylerCauble
@TylerCauble 3 күн бұрын
$340,000 down payment is nothing if you know how to raise capital for these deals. I’ve raised more than 10x that multiple times. But I didn’t start there - my first building was $575k with $120k down payment. I bought an existing building and renovated it
@Canthev
@Canthev 3 күн бұрын
@@TylerCauble yeah that's true. It's certainly possible when raising capital, but I wouldn't expect a beginner to raise capital like that. The video was pretty insightful nonetheless, thanks for sharing :)
@TylerCauble
@TylerCauble 3 күн бұрын
@Canthev for sure, but that’s why I’m teaching people how to do it on this channel 😁 commercial real estate isn’t easy, but it is simple. You just have to have the knowledge
@SerpkoBakotiinii
@SerpkoBakotiinii 8 күн бұрын
Buy land, hire construction company, get all paper...it is not the investment in commercial property, it is the development business.
@theboringchannel2027
@theboringchannel2027 4 ай бұрын
commercial real estate has tenants, along with all the problems that can come with tenants.
@TylerCauble
@TylerCauble 3 ай бұрын
Tenants are tenants, but commercial tenants are far easier to deal with than residential
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
Long term leases too. @@TylerCauble
@389293912
@389293912 Ай бұрын
Paint ball!
@TylerCauble
@TylerCauble Ай бұрын
There you go
@seanodaniels397
@seanodaniels397 3 ай бұрын
If it’s a great asset with such a high cap rate why sell?
@TylerCauble
@TylerCauble 3 ай бұрын
Because you can improve it, lower the cap rate, sell for a higher price, and 1031 exchange into a better asset
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
People don't.
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
took 17 years but exactly what I did@@TylerCauble
@SeanOHanlon
@SeanOHanlon 3 ай бұрын
🤔 Hmm...
@TylerCauble
@TylerCauble 3 ай бұрын
👊🏼
@andrewdefruscio1800
@andrewdefruscio1800 3 ай бұрын
Your numbers don’t make any sense to me. You say $190k profit, but that doesn’t include commissions, closing costs, or taxes. If you sell this property in your example, your net is around $100k before taxes. Figure in 30% taxes, and your net is $70k. A $70k return after $300k+ invested and two years is not worth all that risk. Am I missing something?
@TylerCauble
@TylerCauble 3 ай бұрын
We don’t typical have to pay taxes because we’re utilizing 1031 exchanges to keep everything rolling. Absolutely the returns are worth it
@andrewdefruscio1800
@andrewdefruscio1800 3 ай бұрын
@@TylerCauble So you are getting them leased and holding them for a time period before you sell? I’m guessing you aren’t 1031’ing new construction because the IRS would shut that down pretty quick.
@TylerCauble
@TylerCauble 3 ай бұрын
@andrewdefruscio1800 no - the majority of what I do is heavy value-add. If you’re going to be doing these new construction and don’t want to pay cap gains tax, you just hold them for a year after completion and you can 1031. That’s the strategy most people I know are using on these
@andrewdefruscio1800
@andrewdefruscio1800 3 ай бұрын
@@TylerCauble Cool man. Thanks for the info. I’ve been doing SFR flips and holds for a while and have been looking to getting into building and development of SFR and small commercial. I’ll check your channel for more stuff on the value add component.
@TylerCauble
@TylerCauble 3 ай бұрын
@andrewdefruscio1800 absolutely 👊🏼
@chrism8013
@chrism8013 3 ай бұрын
I remember build cost of $80 sqft costs for residential in NY. My god, I'm getting old!!
@TylerCauble
@TylerCauble 2 ай бұрын
Wouldn’t that be nice today! Haha
@jeffreyavo5328
@jeffreyavo5328 5 ай бұрын
Unfortunately, selling the property multiple times deems developer as an operator and avoids capital gains treatment on the sale of the asset versus refi and holding asset which is not a tax event. Need to go to after-tax Analysis to understand the negative in rapid sales.
@TylerCauble
@TylerCauble 5 ай бұрын
That’s not entirely true. Selling the property you 1031 exchanged into in less than a year after buying it could trigger some questions from the IRS. You need to either hold it for a year or be able to prove that it wasn’t your intent to flip it. In that case, you’re fine to 1031 exchange as often as you want / need
@jeffreyavo5328
@jeffreyavo5328 5 ай бұрын
@@TylerCauble you never mentioned 1031 in your initial analysis nor the property benefiting from opp zone treatment
@TylerCauble
@TylerCauble 5 ай бұрын
You’re bringing up capital gains issues. The easiest way to defer that is through a 1031 exchange. If you buy a property without a 1031 exchange, the same method applies here if you decide to sell in less than a year. Either 1031 to avoid cap gains tax or hold it for more than a year.
@UsmanKhan-xs7hz
@UsmanKhan-xs7hz 4 ай бұрын
@@TylerCaublecould you explain further? would it be better to 1031 a new construction? and how would i avoid any cap gains issues
@matthewellis3004
@matthewellis3004 3 ай бұрын
Good stuff
@apogeus2
@apogeus2 3 ай бұрын
ohh boy. this is exactly what George Carlin was sayin: gas stations, dirty magazine's store, bodegas, malls and super malls, chain food and everything in between. a nation of consumers. soon it be warehouses everywhere.
@TylerCauble
@TylerCauble 3 ай бұрын
At least they can be a nation of investors 🤷🏻‍♂️
@apogeus2
@apogeus2 3 ай бұрын
@@TylerCauble slight problem here: you can't eat money
@TylerCauble
@TylerCauble 3 ай бұрын
@apogeus2 money buys food 😂
@user-it7kg3pm4q
@user-it7kg3pm4q 11 күн бұрын
Ok. So start off life rich and you can get more money? I can’t believe it’s been so simple all this time!
@TylerCauble
@TylerCauble 11 күн бұрын
Well, that’s not how I got my start but that would’ve made it easier 😂
@1970broncoman
@1970broncoman 4 ай бұрын
So my question would be, how do I do this without using any of my own money.
@chidieberechimezie2053
@chidieberechimezie2053 4 ай бұрын
private money lenders do it, i know few..
@TylerCauble
@TylerCauble 3 ай бұрын
I've got a video on that, too: kzbin.info/www/bejne/nYS5f5hris92gKs
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
Best to use your own. Risky business they just might end up with your hard work. Price to pay.
@mrretired2715
@mrretired2715 3 ай бұрын
Too bad this isnt about UK market
@TylerCauble
@TylerCauble 3 ай бұрын
I wouldn't make taking it across the pond! Haha
@waterdesign6647
@waterdesign6647 Ай бұрын
An acre ?…. Lmao. I need advice for Long Island .
@TylerCauble
@TylerCauble Ай бұрын
Advice for Long Island: Look outside of Long Island 😂 The NYC area is a tough location to get started because of the costs - the barrier of entry is just so high. That’s not to say that you couldn’t find a wealthy partner to help you get started, but it may be worth exploring secondary and tertiary markets for investment.
@deepsea5266
@deepsea5266 3 ай бұрын
House 🏠 $465,000 Actual value: $45,000 I have always felt the real estate market is erroneous as well as asinine. I haven't bought one in years, but I do remember the frustration of agents attempting to use status quo selling points that have no relevance on my buying decisions.
@TylerCauble
@TylerCauble 3 ай бұрын
What do you mean by “actual value: $45k?”
@DH-lc4do
@DH-lc4do 2 ай бұрын
said pickleball but show a clip of racquetball
@TylerCauble
@TylerCauble 2 ай бұрын
😎 keep ‘em on their toes
@carlsapartments8931
@carlsapartments8931 3 ай бұрын
pickle ball... so you show a video clip of guys playing squash in a court
@TylerCauble
@TylerCauble 3 ай бұрын
Sports 🤷🏻‍♂️
@dmustakasjr
@dmustakasjr 7 ай бұрын
so its a new name for warehouse space.
@TylerCauble
@TylerCauble 7 ай бұрын
No - it’s the specific type of warehouse that it is. There are many classifications of warehouse, such as distribution, manufacturing, storage, etc. They each have very different qualities even though they’re all warehouses
@evsales
@evsales 4 ай бұрын
No thanks
@TylerCauble
@TylerCauble 4 ай бұрын
You’re welcome
@butchgreene
@butchgreene 3 ай бұрын
Man...why does any "Real Estate for Beginners" involve $340k down payments. That 5 years income for me. Im sick of being poor but every real estate investment path involves 20% down or having enough personal income to buy a second home. Im trying ot learn this stuff to afford a 2nd home.
@TylerCauble
@TylerCauble 3 ай бұрын
I can understand that - that’s exactly how I felt before I got into commercial real estate. Didn’t have any money, but got creative with the deal structure and was able to buy my first few properties with next to nothing out of pocket. I have a few videos in this channel that walk you through that if you search for commercial property with no money
@brianhoppenrath8379
@brianhoppenrath8379 3 ай бұрын
You all know it’s not cheap to build, finding renters is a whole other story. I would avoid this guys advice, but I’m old and not stupid.
@TylerCauble
@TylerCauble 3 ай бұрын
Awesome - let’s see your video refuting my points then
@BlackRifleRack
@BlackRifleRack 2 ай бұрын
It's all risk reward and doing your homework. And yes you need money and land and do a lot yourself. I had to get my hands dirty. It did work out in the long run an to be honest our residential investments were a headache. Everything was on point.
@dittohead7425
@dittohead7425 2 ай бұрын
Years ago, I remember a guy buying buildings in industrial areas for internet porn spaces for individuals to rent for broadcasting. He made dozens of small rooms that people could rent. Before it became big time home based...
@TylerCauble
@TylerCauble 2 ай бұрын
That’s a terrible business model and doesn’t reflect on time-tested and proven business models 🤣
@dittohead7425
@dittohead7425 2 ай бұрын
@TylerCauble at the time, he made a lot of money on buildings that weren't being used. The same buildings now don't look as busy as they used to be.
@TylerCauble
@TylerCauble 2 ай бұрын
@dittohead7425 are you saying industrial buildings are a trend?
@dittohead7425
@dittohead7425 2 ай бұрын
@TylerCauble no, the buildings that I know this guy had businesses operating in don't look as busy. At the time , I ran fiber to them to handle the network and they were packed. Not so much now.
@TylerCauble
@TylerCauble 2 ай бұрын
👍🏼
@dafonteinc.dbaclovischimne6631
@dafonteinc.dbaclovischimne6631 3 ай бұрын
Well, I guess you guys didn’t know you missed the boat. Commercial real estate is about to go through extremely hard times. Try to sell something else.
@TylerCauble
@TylerCauble 3 ай бұрын
Nah, haven’t missed the boat at all. Cheers!
@Dbb27
@Dbb27 3 ай бұрын
Warehouses and office space are two different markets.
@TheDougSpot
@TheDougSpot 2 ай бұрын
This is in no way the easiest way. You would need at least $1.4 million to do what is described in this video
@TylerCauble
@TylerCauble 2 ай бұрын
You could invest in REITs but that’s not really real estate investing. And depending on your market, you definitely don’t need $1.4m.
@TheDougSpot
@TheDougSpot 2 ай бұрын
@@TylerCauble I’m using the math that you laid out in the video. The 10,000sf that the gentleman stated would be the minimum size he would recommend, multiplied by your price per sf that you calculated. So are you saying you have false information in the video?🤔
@TylerCauble
@TylerCauble 2 ай бұрын
If you’re developing, yes that’s likely close to the price depending on where you’re located. If you’re buying older product, you can get it cheaper. I completely understand if $1.4m is too big of a deal for you, there are other opportunities in commercial under $500k (which I’ve done a few videos on) or you can explore residential
@Man-u-flex
@Man-u-flex 6 ай бұрын
Not great numbers at all and a good amount of risk complicated zoning.
@TylerCauble
@TylerCauble 6 ай бұрын
Would love to hear what you’re investing in instead
@Man-u-flex
@Man-u-flex 6 ай бұрын
@@TylerCauble bitcoin
@TylerCauble
@TylerCauble 6 ай бұрын
😂😂😂
@bendover2425
@bendover2425 4 ай бұрын
@@Man-u-flexwhy are you even here? Lol
@KingKatRider
@KingKatRider 2 ай бұрын
Do you own any?
@TylerCauble
@TylerCauble 2 ай бұрын
Yes I do. I own 1.5m sq ft of industrial real estate.
@KingKatRider
@KingKatRider 2 ай бұрын
@@TylerCauble Well good for you, buy some more then and hell you could even charge twice as much to rent it out.
@TylerCauble
@TylerCauble 2 ай бұрын
For sure!
@roveriia6334
@roveriia6334 3 ай бұрын
Just call this a commercial. I am looking elsewhere as I do not do business with people that don't respect me.
@TylerCauble
@TylerCauble 3 ай бұрын
Huh?
@jimross2101
@jimross2101 3 ай бұрын
Land for $5/sq ft!!! If buying 1 acre, that's 43,560 x $5 = $217,800. Too much!!!
@TylerCauble
@TylerCauble 2 ай бұрын
It’s all relative - that’s very cheap compared to some neighborhoods surrounding downtown Nashville that are $30+ per sq ft, but that would also be insanely expensive in Nebraska. Just depends on where you are
@davidlarson7384
@davidlarson7384 2 ай бұрын
Eh. 43560 square feet at $5 a square foot is $217,800. Not $240,000.
@TylerCauble
@TylerCauble 2 ай бұрын
Yeah, can’t be perfect all the time 😅
@user-pe7sc2lq5l
@user-pe7sc2lq5l 3 ай бұрын
Can't follow someone who can't even get the right video of the sport mentioned. He said pickle ball not squash.
@TylerCauble
@TylerCauble 3 ай бұрын
Ehh they’re both vegetables. You’re missing out on the follow, though!
@MrZoeckler
@MrZoeckler 3 ай бұрын
Seems like a lot of hot air, where is the data to back up all these words, where are the facts, where are the hard references???
@TylerCauble
@TylerCauble 3 ай бұрын
I recommend reading any of the industrial market reports from the big shops like CBRE, JLL, etc
@getitright3124
@getitright3124 3 ай бұрын
You said pickleball and showed racquetball. If you want to be real, show real references.
@TylerCauble
@TylerCauble 3 ай бұрын
Pickleball, racquetball, they’re both sports that you can accommodate indoors in one of these units 😂
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