Tools to Succeed in Commercial Real Estate Investing with Thomas Coffman

What’s Going On With Commercial:

2:30: COVID has exposed people that have been leveraged with a lot of debt and highlighted the ones that are well capitalized and able to make it through.

4:51: There’s going to be a lot of vacancy if it hasn't already from an office standpoint. From a retail perspective, COVID has opened up a tremendous amount of opportunity for people that want to get into the restaurant business.

8:45: Anything with a high labor model, like a restaurant, is going to take a while to come back from. But the low labor model like carwashes and gas stations remained open and will still trade in higher multiples.

10:14: Ryan wonders if we'll see people spending more on their homes since the work from home model is more widely acceptable and they’re not commuting as much. 

12:00: With the hard hit areas with expensive rent (the Bay Area), they’re having to hold out longer now. Millennials aren’t patient, so it will be interesting to watch those markets. 

Who’s Buying and Selling:

14:20: Thomas act’s as an acquisition and dispositions manager for buyers and sellers. He’s usually flipping these to private equity groups, institutional buyers and individual one-off buyer’s or sellers.

16:30: A lot of commercial investors are one block away from success in commercial real estate. Specifically with car washes, traffic counts, accessibility and site visibility is crucial.

Due Diligence for Commercial:

18:20: in residential real estate, sometimes you can cross the street and you're in a bad area, then you just subtract 5%, 10%. With commercial, that could be 50%.

21:51: The gas and carwash business is so fragmented compared to restaurant retail. You’ll find a lot of mom and pop style operations as well as the institutional-types.

24:45: If you’re wanting to start out, don’t start with a new build. There’s alot of hurdles with that. I’d recommend letting a tenant drive the acquisition.

28:00: A lot of the best commercial opportunities that you can flip or assign a contract to, are not going to be on CoStar, LoopNet or on the MLS. They're going to be something that you drive by and see that they just closed.

Tools Of The Trade:

30:00: CREXI, commercial real estate exchange is a great resource to find comps.

30:54: ESRI-STDB, ESRI site to do business is great for finding demographics and traffic counts.

32:00: Land Vision is a great resource to give you all property details including the owner information.

Connect with the Good Stewards:

• Visit Our Website and Subscribe
• Email | Ask@TheGoodStewards.com
• Twitter | @TheGoodStewards
• Instagram | @GoodStewardsPodcast
• Facebook | @GoodStewardsPodcast