Full transcript
0:00So, you're going to get into a class of
0:01real estate that pays you more with a
0:03[music] lot less hassles. Why should you
0:06invest in commercial real estate versus
0:09residential [music]
0:09real estate or multif family? We get
0:11that question all the time, almost on a
0:14daily basis. What we have found is the
0:16problems you have with multif family and
0:19residential [music] versus light
0:21industrial, the problems of the tenants
0:24go to almost zero when you're dealing
0:25with light industrial. We got started
0:27just like most people in single family
0:29and multif family. The headaches that
0:31come with [music] it, the profit
0:33margins, one of the worst parts is
0:34having to kick someone out of one of
0:36your properties because they can't
0:37afford the rent. So, it could be a
0:39single mother with three kids. They
0:40can't afford the rent and you've got to
0:41ask them to move. There is nothing worse
0:44than that. But also, the maintenance
0:46problems as far as garbage disposal,
0:48door hinges, uh, on on the closet doors,
0:50[music] windows, the damage that
0:52happens, people living in them. You can
0:53lease to a hoarder. You can lease to
0:55people with mental illness. All kinds of
0:56problems. And when they leave because
0:58they one, they didn't pay rent, there's
1:00always a [music] lot of fix up, a lot of
1:02repair costs. And when you add those
1:04repair costs with the vacancies versus
1:06light industrial, it's a no-brainer. And
1:08so, we love light industrial. The
1:10positives with light industrial is a lot
1:12of times [music] you can buy a light
1:14industrial building for what you're
1:16paying for a three-bedroom, two bath in
1:18some areas, a single family house. And
1:20for sure a 4plex or even a eightplex or
1:2310plex, you can find a light industrial
1:25building where the rents can [music] be
1:26up to double what you would normally get
1:28for the same amount of money spent on
1:30residential or multif [music] family.
1:32When I say that we like light industrial
1:34versus single family or multif family, a
1:36lot of people don't even understand what
1:37light industrial is. What light
1:38industrial is, it's usually a minimum of
1:40a half acre to an acre and it's got a
1:422,000 4,000 [music]
1:448,000 ft steel building. And what that
1:46is filled with, it's filled with an AC
1:48guy. Maybe your pool company guy would
1:50be there. A tile person could be there.
1:52Every single one of the trades, the
1:54service trades, they're not allowed to
1:56park their trucks in HOAs at their
1:57house. So once they get bigger than one
1:59vehicle, one trailer, they get two or
2:01three trucks. They're going to need a
2:02light industrial building. So it could
2:04be as simple as 2,000 foot steel
2:06building. It's got one office, one
2:07restroom. It'll have a fenced yard.
2:09[music] They park their two or three
2:10trucks in. they have an office person in
2:12the office and they're able to keep
2:14their expensive tools or supplies
2:15[music] inside the steel building. So,
2:17it starts off just simply a 2,000 foot
2:19building. Then it grows from there, a
2:204,000, maybe an 8,000. Then there's a
2:222acre yard. [music] But those type of
2:24people that lease them, you've already
2:26negotiated the rent for three, five,
2:29even sometimes 10 years out and you're
2:31renting it to a company that is there to
2:33make [music] money. So the rent isn't a
2:35burden of like how to live. It's
2:38actually an opportunity to have a good
2:39location in a safe area for them [music]
2:41to go make more money. They're not
2:43worried about their rent. They are
2:45budgeting in advance that rent [music]
2:47cost. So, they just have to concentrate
2:48on running their business and paying
2:50their rent. All right, check it out.
2:51When you're watching these videos, we
2:52know that you guys have questions that
2:54aren't answered. Might be about
2:55business, might be about real estate.
2:56Well, guess what? We can answer all
2:58those questions that aren't getting
2:59answered in this video. So shoot us a
3:00text at 9286054335
3:03because there's questions that need to
3:04be answered and this dude and I will
3:06answer those questions for you.
3:079286054335.
3:10Shoot us a text. Most the time when we
3:12rent to a light industrial company, we
3:14never hear from them again until it's
3:16time to renew. And that happens most of
3:19the time. We still have quite a few of
3:21the um multif family. It is a pain. It's
3:24so big that we have an outside company
3:26manage our multif family. And even
3:28managing the company that manages the
3:30properties [music] is a pain. That's how
3:32many things go wrong with multif family.
3:34So if you're looking for light
3:36industrial and it isn't within the
3:38starting point of what we always say 5
3:39miles, you may have to expand outside
3:41your area cuz a lot of times light
3:43industrial areas are outside of the
3:46city. And even in large cities, they're
3:48in the smaller cities around your city.
3:50So you may have to venture out and find
3:53especially in the like the Phoenix
3:54areas, [music] finding an undervalued
3:56light industrial building is going to be
3:57very difficult in the major in the
3:59metropolitan area. But there's cities
4:01like Buckeye. There's cities outside of
4:03Phoenix as an example. So your area you
4:05need to define and find out where the
4:07light industrial buildings are. It's
4:09just a way better class of property to
4:11own. It's much easier to own and the
4:13profit margins are substantially higher
4:15when you do get yourself out of the
4:18multif family or single family and get
4:20into light industrial. The profit margin
4:21is huge. So, for instance, in our area,
4:23a $400,000 house in our area would rent
4:26for [music] a low of 12 to a high of
4:28$2,000 a month. But that same $400,000,
4:31we're in escrow right now for 9,000t
4:34light industrial building that we think
4:35we'll be getting $8,000 a month for.
4:37[music] a mile away, you could buy a
4:39house for that price and you'd be
4:40getting $1,500 a month. That happens all
4:42over the country. In Texas, where we do
4:44business, it's the same story.
4:45Three-bedroom, two- bath houses run
4:47$400,000. But if you look, you can find
4:49an undervalued light industrial building
4:52for 400, 450, even $500,000 that will
4:54bring in much more money with [music] a
4:56lot less hassles. The one thing is
4:58there's just so many less things that
4:59can go wrong with a light industrial
5:01building. Even in the worst case
5:02scenario, if you have a vacancy, [music]
5:03the repairs of when someone leaves,
5:05usually it's just a broom swept
5:06situation. maybe pick up some of the
5:08trash that they left. You could paint
5:09the office or whatever. But on our
5:11[music] multifamilies, it's always a
5:13hassle. Most people do not leave them
5:15nice. The whole place [music] needs to
5:16be painted. Floorings need to be redone.
5:18Sometimes countertops replaced. It just
5:20doesn't happen with light industrial.
5:21So, you're going to get into a class of
5:22real estate that pays you more with a
5:25lot less hassles. And the great news is
5:28there's just not a lot of competition of
5:30investors looking to buy light
5:32industrial. I can't explain why. [music]
5:34I think most of the time it's fear.
5:36People aren't educated on it. Everybody
5:38lives in either a house or multif
5:39family. So guess what? You're used to
5:41going home to a house or multi- family.
5:44And so it's a comfort zone. Hey, I want
5:45to own one of these. I want to get in
5:47real estate. So I'll just buy what I
5:48know. Well, every day you spend what?
5:51[music] 14 hours in that place. So
5:52that's what you go buy. That's how
5:54people get into it. Not many people
5:55spend that much time in a light
5:56industrial building. So, you got to get
5:58the mindset that I understand why I'm
6:00attracted to [music] multif family and
6:02residential, but you got to get out of
6:04that and get a little bit uncomfortable.
6:06Do your research. Find out what those
6:08things in your area are renting for,
6:10what the lease rates are. Another thing
6:11is the triple net. When you are in a
6:14commercial product, light industrial,
6:16the rents might be $6,000 a month, but
6:19there's triple net, which is the taxes,
6:21insurance, and light maintenance to the
6:22building. In light industrial, the
6:25tenant pays those expenses. In single
6:27family and multif [music] family, guess
6:29who pays the taxes, the insurance, and
6:31the light maintenance on the building or
6:33any maintenance on the building? The
6:34landlord, the owner of the property
6:36versus light industrial, the tenant pays
6:39those same expenses. So again, that's
6:41one reason why the profit margin goes up
6:42so much. And these companies are used to
6:45paying triple net leases. So when you
6:46hear the term triple net, what does that
6:48[music] mean? It means the tenant, not
6:50the owner, is paying taxes, insurance,
6:52and light maintenance on the building.
6:54Makes it another reason why we love it.
6:56So, another thing is people just [music]
6:57get scared from it. They think that it
6:59takes a lot more money. Like, every
7:00light industrial building must be over a
7:02million dollars. But again, it's just
7:04because they haven't done their
7:05research. They haven't opened their
7:07minds up to, hey, I know I got three
7:09rent houses. I could never get into
7:10light industrial. If you've got three
7:12rent houses, you are the perfect
7:14candidate. keep those, sell them, do
7:16whatever you're going to do. But you've
7:18got the experience, you know how to
7:19close on properties, you know how to
7:20find good deals, you obviously know how
7:22to handle tenants. Now, all you have to
7:23do is graduate to Light Industrial and
7:26get the bigger profit [music] margin
7:27that you've been missing out on. And we
7:29can teach you exactly how to do that.
7:31So, with Light Industrial, hey, [music]
7:32you might be a little bit scared getting
7:34into it, but if you've done your
7:35research and you understand the value of
7:37the properties and you [music] found a
7:38piece of property in Light Industrial
7:39that you think is undervalued, get a
7:41hold of us. Let [music] us analyze it
7:43for you. let us help you find financing
7:45for it. Another thing we can do is we
7:47can buy the deal from you. Makes you a
7:49wholesaler. You can call it a a fee,
7:51whatever you want, but what it is is
7:53we'll [music] take the deal from you if
7:54you're unable to close on it, and we
7:56would give you a finder fee for it. So,
7:58[music] what it would do is make you a
7:59wholesaler. Also, we have access to hard
8:02money, guys. Maybe you're going to take
8:03care of the deal yourself and you just
8:04need help finding the funding. We have
8:06access to hard money guys that if the
8:08deal is good enough, maybe they'll
8:09finance the whole thing. I don't know,
8:11but we have access to those type of
8:12people. So, we can help you analyze the
8:14deal. We can help you finance the deal.
8:16And also, we can partner with you. We
8:19partnered with multiple people that just
8:20the only relationship is they brought
8:22the deal to us. They wanted to stay into
8:24it. It made [music] sense. Every single
8:26deal is different. So, there's no cookie
8:27cutter of exactly this is how it's done.
8:29We'll just help you analyze it and
8:30decide, hey, guess what? We'll give you
8:32[music] our opinion that, hey, you
8:33should probably move forward with that.
8:34And you've got your financing set up,
8:36you've got the cash to do it yourself.
8:38Congratulations.
8:38>> [music]
8:38>> One thing about Light Industrial or any
8:40other real estate out there, there's so
8:42much of it. We lift our skirts and show
8:44you about every single deal we've ever
8:46done. There's no secrets here. We tell
8:48you what we like and what we don't like.
8:50You make up your own mind. But we're
8:51here to help you. We're here to help you
8:53analyze it. Here to help you finance it
8:55and possibly even partner with you. When
8:57you invest with us, we're cowboys. We
8:59[music] keep it super simple. We always
9:00like to say, "Hey, everyone's running
9:02around at a third grade grade grade
9:03level and everyone else is just faking
9:04it." [music] We make it super easy. We
9:06put the deal on one single piece of
9:08paper and it just has to make sense on
9:10us on a napkin basically. And if it
9:12[music] doesn't, we move on to the next
9:13deal. Most deals that get presented to
9:15us don't work because we're looking for
9:18properties [music] that are 30% under
9:20value that'll cash flow in 90 days. And
9:22when I say 30% of value, that's after
9:24the fixup. So, a lot of times our deals
9:26are purchased offmarket. [music] We can
9:28help you find those offmarket deals and
9:30we'll just tell you exactly how we find
9:31them, but we've done it over 200 times.
9:33>> [music]
9:33>> We're long-term hold guys, so we've got
9:35those properties still today. Going
9:37forward, some of our properties we're
9:38looking at now as we're getting older,
9:40hey, maybe we'll flip some of those
9:41going forward. But whatever you want to
9:43invest in, just start doing something.
9:45We like light industrial. If you're
9:47already in single family, take a look at
9:49commercial. You'll be surprised how
9:50similar it is, just with a lot less
9:53headaches. So whether you've never done
9:54a deal and working on your first deal or
9:56you've done a 100 deals, [music] send
9:57the deals to us. We love working with
9:59like-minded people and we can help you
10:01make a decision or rather this is a
10:03great deal or not. Maybe you should walk
10:04on. So another thing about light
10:06industrial, it doesn't take many
10:08buildings to make it a lifechanging
10:10investment. When you [music] have multif
10:12family and residential properties,
10:14you're married to those properties. It's
10:16a lot of work and takes a lot of time.
10:17With light industrial, we can travel.
10:19It's just it's wealth building and you
10:21don't hear from the tenants. So years go
10:23by. It wouldn't take more than one, two,
10:25three light industrial buildings to
10:27change your life forever. If you buy
10:29those now, get them paid down a bit, you
10:31can be taking vacations, you can be
10:33paying for college, all your travel,
10:35anything you can imagine because you
10:37have those three light industrial
10:38buildings. And if you have three, why
10:39not get to four and really change your
10:41life? And if you have four and it's not
10:42that hard to own them, [music] that's
10:44what happened to us. We just started
10:45stacking them up like cordwood because
10:47they were paying for themselves. the
10:48tenants were staying in there and it
10:50didn't take a lot of time to [music]
10:51maintenance those buildings. So, as
10:53opposed to the residential, it was a
10:55nightmare owning those. So, we don't
10:57have those any longer. But what we do
10:58[music] have is a whole bunch of light
11:00industrial with a lot less problems and
11:02it can change your life. I'm not
11:04flexing, but we [music] have a lot of
11:06light industrial buildings, have garage
11:08full of cars, take amazing trips. If I
11:10had all that invested in single [music]
11:12family, there's no way I could be doing
11:14what I'm doing today. So, I think that I
11:16owe the life I'm living right now to
11:18light industrial [music] investing
11:20starting from 2001 and keeping all those
11:22buildings and just want to share that
11:23information with you guys. [music] So,
11:24through any any means of social media,
11:26get a hold of us from from YouTube to
11:28Tik Tok to to Instagram. We're
11:31available. We're the guys you actually
11:33can contact. We have a [music] team that
11:35we set up meetings with the actual
11:36people contacting us. We're not too big
11:38for our britches. We're happy to talk to
11:40like-minded people.