How deeply is commercial real estate investing covered in the mastermind?

Question

Hi All,

New member here.  I just watched the Biggerpockets video on "how to get started investing in real estate with $10K" and in the video, David said there is a Biggerpockets mastermind for that you can join for about $10K.  First off, what does being in the mastermind entail? And secondly, how heavily is commercial investing (i.e. industrial/flex) covered? I absolutely LOVE your content but it seems you mostly cover multifamily.  As someone who is primarily focused on industrial/flex investing, does it make sense to join the mastermind? Thank you.

Henry Clark · Answer

What is your background?  The best thing to do is just to jump in.  Identify ahead of time the major risks.  Come up with a use or development plan for the property.  You are truly lucky you’re in Texas.

1.  Finance.  Learn interest only, construction loan, interest only rent up phase 18 months or x % occupancy.   Start small.  You have to build a track record.   Do not shop loans around. Build a relationship in that market.

2.  Go online. Learn zoning, special use, mixed use.   They will have all of their setback, entrance etc rules there also.  Get a copy of their planned zoning map.  If your zoning won’t work it is a lot easier to get rezoned if you’re next to the appropriate zoning or it’s in the planned map.  The harder it is for you to get the proper zoning the more valuable your property will be.  Note Texas counties have no zoning.  But you may be in the radius of a city and have to follow their rules.

3.  Develop a check off list.  Driveways, storm pond , storm sewer, signage, fences, sidewalks, fire hydrants, fire suppression, external water/sewer/electric/fiber hookup,  internal utility runs, soil compaction, epa, flood zone, flood plain, natural water flow off property, hvac, etc. Keep adding to the check off list.  Build these into your deal analysis worksheet.

4.   Instruction insurance for you, additional insured in all contractors insurance

5.  Construction interest.  Time is money. Mother Nature, permitting, contractors, suppliers.  Always think time is money.  If something stops you come up with a different solution to move forward.  Over communicate. Don’t lose time due to lack of communication.  Get your head together not a lot of changes

6.  Your first project I would have a civil engineer do the plans.  They will identify most of the issues in 3 above.

7.  So simple it’s????  Most of the time squares are better than rectangle properties, Rectangles are better than octagons.  Octagons are better than triangles. As an example not all 3 acres are equal.  You will make mistakes.  . Start small and Make Your Big Mistakes Early.  You owe me $300,000 for the above.  So if you can buy some books, watch some YouTube’s, go to development seminars, etc.  Even if it costs say $10,000 it’s worth it.

Henry Clark · Answer

Your right, this is mainly MFH discussion.

Lucky you're in Austin; tons of Industrial/Flex opportunities:

11202 Pearce Lane- put $37k down sale for $1mm profit in 2 years.

New Braunfels just down the road.  12 acre spot just need to clear, put $200,000 down and $50,000 prep.  $2mm profit in 2 years.

San Antonio- old airbase land.  Clear jet engine storage containers.  $2mm profit in 2 years.

I keep adding a year, so long-term capital gains, versus short-term.

Texas is a great market.  Happy hunting.

John McKee · Answer

The bigger pocket community is geared toward residential, so don't waste your time on any mastermind.  Save that 10K for your first site plan.  Commercial is unique and the information is scattered.  if you actually jump over to twitter you will find experts in the field especially when it comes to industrial.  I love that you are thinking flex as I own one of these myself.  If you PM me I can direct you to some experts in this field.

Kristi Kandel · Answer

There are very limited options on education on commercial real estate. Typically you enter the industry because family or friends were developers and that's how you gain exposure. I personally entered developer via working for a sign company who did CVS Pharmacy signs, built a relationship with their preferred developer in FL, and eventually started working for that developer and opened their first CA office in Southern CA.

I've now scaled my own development company that I founded in 2015 and we work on nationwide development projects with our core focus being affordable housing and clean energy programs.

There are so many projects that won't pencil for the "big guys/professional developers" that will pencil for the local community members. We just need to share the resources and tools necessary to empower our local change makers.

If you have a mastermind that does offer soup to nuts development exposure and resources and it's a field you're passionate about (it takes stamina as the average life cycle of a project is 2-3 years) then by all means make the investment.

Our team is launching a development 101 course in Q1 2024 "Unlock your city’s potential: your blueprint to becoming a local real estate developer", to help people understand what exactly being a developer. Ideally later in 2024 we'll also be able to launch our first masterclass on RE development.

FREEDOM HACKER MOVEMENT

We're flipping the script and shifting that spotlight from the big-shot developers to our own local legends, the ones with grand visions and guts of steel. With 17 years in real estate, we're all about empowering those eager to dive into local development. We're launching a movement, democratizing education, and making local real estate development resources accessible in order to turbocharge local builders. Together, we'll spark a wave of community builders and forge epic partnerships. Let's make a lasting impact.

Lucia Rushton · Answer

@Alexander Familant the title says how to invest with $10K and the mastermind is $10k??? How does that not sound like other educational programs??

I am a strong believer and supporter of BiggerPockets and have been since 2010.

There may be people in the forms that have Commercial assets or work with commercial assets other than MF but I do not believe there is enough content for what you are looking for. Happy to be wrong.

If you are interested in Texas, let me know and I can hook you up with some people on our team that focus on industrial and flex.

Chris Seveney · Answer

@Alexander Familant

I was not aware bigger pockets had a mastermind.

I would be interested to learn more about it

How deeply is commercial real estate investing covered in the mastermind?

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