All Forum Posts by: Ronald Rohde

 I think you should clarify whether you're buying LOTS or individual spaces. Very different IMO

 No, I looked a great 50k flex deal in 2022, should have bought it for $9m, easily worth 15 now. We put about $30k into improvements since we purchased. Cap rate was like7.

Most important thing is to understand management and reserves. Lots of things that I paid for in 2020 or 2021, have doubled in price, that kind of changed my capex spend and not for the better.

 The trucks all must operational and running. These trucks do not leak as they are the source of business for these guys. other than that, no oil changes in the yard, no barriers.

Its common to see reservations on a special warranty deed in commercial. This was copy pasted without understanding the why. You can cure it with your seller and the deed you receive.

 when you want to directly invest in commercial real estate, who do you go to?

 Yeah, we're focused on buying early. Bought a 4 acres in 2021 for $2.5, cash flowed like crazy, just got a broker offer from a regional PE group for $4

I've been investing in real estate for 15 years. 5 years ago, I sold 6 SFR in DFW and plowed that capital into industrial NNN properties. I've found that SFR is a lot like autocross driving. Its safe, its simple, faster to learn and the penalties for mistakes are a lot lower. Commercial investing is like driving on the race track. Higher speeds, elevation changes, multiple ways to crash and hurt or kill yourself.

Both are car racing fundamentals, gas, brake, and steering. Neither one is better, it just depends on your individual goals and constraints as an investor. This is my long way of introducing myself. I'd next like to talk about how and why I buy the industrial properties that I do.

Currently, we are buying industrial outdoor storage in infill locations within Dallas Fort Worth, Texas. We are self managing either NNN tenants or semi truck and trailer parking. These are improved gravel sites, motorized gates, solar security lighting and SIM card cameras. They may or may not have a building, but either way, they are "low coverage" sites. The plan is to assemble a small portfolio then sell for a lower cap rate to a friends PE or another buyer. After that, we will solely focus on cash flow and building a large empire. We may sell individual sites, but only opportunistically for the highest priced end user or vertical developer.

We buy in-fill to protect our rents. Even if demand is flat, the supply of in fill locations continues to decline. Cities are not approving additional outdoor storage yards, but they are desperately needed for construction, heavy equipment, fleet parking, etc. We buy based on in place cash flow, combine seller financing or local bank debt with fixed 5 year terms. All recourse debt.

I have some staff to manage the tenants, but rely primarily on Easy Storage software for booking and cash flow/receipts.

Anyone have questions?

Google, YouTube, you can build a foundation just from free internet learning.

What asset class? Leasing? investment sales? specify your niche as narrowly as possible.

 That is quite small. I don't know anyone that can do that size and "affordable"