Buy Your First Commercial Property (Even If You're A Beginner)

[@TylerCauble]

Download my deal analysis toolkit: www.tylercauble.com/deal-analysis-toolkit

[@christym3627]

I always love these videos. Thank you for sharing your expertise!

[@TylerCauble]

Glad you like them! Let me know if there's anything I haven't covered that you'd love to know more about

[@thegamemasterllc]

West coast friendly stream, can’t wait!

[@TylerCauble]

Let's gooooooo

[@MAGNATERE]

Great info! Thank you for sharing!

[@TylerCauble]

Of course! Let me know if there's anything I haven't covered that you'd like for me to dive into sometime

[@DanielVonSchimpf]

Great video! Keep up the great work educating us on CRE.

[@DraganaBozilovicCRE]

Thank you for doing this. All this information is so very useful. And thanks for the QR code😊

[@CanadianRealEstateChannel]

Great breakdown of the commercial property buying process!

[@JoshBurda]

NOI is a before debt measure. If you paid cash you’d get a X% Cap rate or $XXX. NOI. You would take your NOI minus debt service to look at your COC (cash on cash) return. One reason is everyone doesn’t use the same debt ratios, interest rates or length of terms so the NOI or Cap is where you would run your specific debt terms off of. Hope that makes sense and answers your question. I’m not an expert by any means.

[@RonaldRohdeLaw]

great advice to commit and consistency. I say to underwrite a deal a day too. IOS is hot hot hot! I love mine

[@dscrmortgagegal]

Great info!

[@Easyservice-x8q]

I always watch all your videos

[@TylerCauble]

Appreciate it!

[@Easyservice-x8q]

@TylerCauble Your videos always stand out from others

[@rubenheijmerink536]

Could you do a video. On how to find business to lease. Like you did with the retail center.

[@TylerCauble]

Yep! I did do one: kzbin.info/www/bejne/oZ3EnqFvr92Kiacsi=ta4hCqGftH-phlqP

[@rubenheijmerink536]

@TylerCauble great thanks!

[@NewProvidenceUF]

19:14 What’s the absolute minimum due diligence period recommended for a rookie in commercial?

[@TylerCauble]

I recommend 60 days. That gives all of your vendors and your lender enough time to knock out what they need

[@IokepaBarco]

When it comes to cap rates, are you just picking what you would want?

[@TylerCauble]

Yeah or what’s realistic, really. Ideally, I could hit a 100% cap rate 😂 but realistically, I know I can hit a 12% cap rate or better. So it’s really what’s worth your time to focus in

[@Momo-96]

I’m looking to get into real estate. There’s a commercial building listed for sale for $1.7m. Currently it’s bringing in about $175k in annual rent. Would you consider this good?

[@NewProvidenceUF]

10:43 why is 10% the factor used to calculate the needed $psf NNN rate?

[@TylerCauble]

Good question - it gives you the price per square foot you need in order to achieve a 10% cap rate upon completion. I don’t look at anything under a 10% cap rate if I’m doing value-add, but you may be comfortable with different numbers.

[@nawgee]

I dont understand why the debt service was removed when calculating the NOI in his analysis example? Debt Service is the mortgage right? So if we are trying to estimate the value of a property we wouldn't calculate because once sold that expense would fall onto the buyer? I could be overthinking this.. .

[@bigcitydreamz4444]

What if I want to purchase a commercial property to start a business?

[@ReallyTooky]

The returns arent as applicable since your case is an owner-user purchase as opposed to an investment

[@305MiTO]

Do u need license can u just buy the property

[@TylerCauble]

Nope! No license needed - you can buy property without it. Unless you're looking to make commercial real estate (and brokerage, specifically) your full time job, I usually recommend against it.