Hi Sean, I just signed a new 3,200 ft lease on the Gilbert Square deal!! (you’ll be surprised where the lead came in from).
It creates a nice boost in occupancy, monthly cash flow, and value for the property (within the first 100 days of ownership).
I also share some of my key takeaways on a recent Commercial Real Estate Mastermind Meeting (which we do in-person quarterly) and action items coming out of it (hint: bigger deals, more direct mail, and more broker networking).
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I’ve been spending all this time doing marketing and prospecting and outbound emails and Facebook messages to local business owners around Gilbert Square, to fill up my vacancy. And we just signed a lease to take the full pad building. It’s 3,200 feet, which brings us up to 80 something percent occupancy now. And of all the places to get the lead from it comes in off of a sign call, which is a great lead. My leasing broker goes, “Look, that’s the best kind of lead to get,” ’cause they’re already there. And they called on it proactively. And what we did on this property is I had my leasing broker put three signs out, on all the sides of that building so that people could see it from any direction. I made that part of the requirement for him to get the listing agreement and that just paid huge dividends. That’s an over $4,000 jump in cashflow. And the value of the building just went brrt because of that. And I think the extra foot traffic coming in and out of the center is gonna make a huge deal too. So very excited. That was reason to celebrate this week.
I gotta document this before I forget it, but not too long ago, I got back from my Commercial Real Estate Mastermind Group. This is a group of ladies and gentlemen, that I now think of as my Jedi Council and what we do, once a quarter we get together, in person and we do a portfolio review. We share deals that we’re buying, deals that were leasing, deals that were selling, deals that were refinancing across the entire country and pretty much every single asset class. And I always leave there feeling so inspired, so excited, so pumped up and kinda thinking about the bigger, the next level. And for anyone thinking about getting into this business as a sponsor or an operator who’s going out and finding deals, it’s probably been the single biggest catalyst to my growth. Having a coach and a mentor who helps the chair and facilitate that group, but really the relationships that I’ve built in there have been literally life-changing, you look down my speed-dial list today and most of the folks on there are people in that group who are participating in commercial real estate. So, I just wanted to document this and kinda bottle up how I’m feeling coming out of that.
Couple of the specific action items for me and each time it’s different and for each person it’s different but I know I need to be doing more direct mail, ’cause it’s a great way to get in front of owners of property. I know I need to be looking at more deals. I know I need to be getting in front of more brokers. I do a good job of it, but there can always be a better job of it and focus a little less on raising private capital which I’ve been kind of working on and more on deal flow. I’ve got capital sitting on the sidelines. I’ve got friends and family waiting for my next deal but the weak link that we have right now is good deals. And for me that’s deals that have a problem, that have significant upside, that have ability to force appreciation to ’em. And so I think they’re coming and that was some of the feedback that came out of the group is, “Be patient, “be disciplined. “Let the deals come to you, a little bit more.” And one more nugget for me, was just to step up a little bit in quality. Just ’cause I can put together a $2 million deal, now. Doesn’t mean that I should because that’s opportunity costs for maybe a three to $8 million deal in a better neighborhood with higher quality tenants. And so really being selective right now and kinda letting the ball come to you, Was one of my big takeaways for this session.
I’m interested to hear if you are involved in a group like this, or if there’s been somebody in your investing journey that has helped inspire you? Help you grow, help you think bigger, help be a second, third, fourth, fifth set of eyes on your deals, so that you have a lot of confidence moving into ’em, when you close on those. Take care, talk to ya.