How to value and underwrite commercial Real Estate? With special Guest Chris Powers - Acquisitions Anonymous Episode 133

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Bill D’Alessandro (@BillDA), Mills Snell (@thegeneralmills), together with Chris Powers (@fortworthchris), we discuss an Airport Commerce Park in Houston Texas. Chris starts off by sharing a little bit of his background and explaining what a Class B Industrial is. The major effect of location for this kind of business will also be discussed, as well as the essential dynamics for making more money. Moreover, we will look into why real estate people sell if it’s good. Does a successful real estate capital manager end up in buy and hold?

Listen to the podcast and find out!

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Show Notes:

(00:00) - Introduction

(01:11) - Our Sponsor is Cloud Bookkeeping

(02:39) - Guest Intro: Chris Powers joins us today!

(04:00) - What are Class B Industrial Assets?

(04:58) - Deal & financials: Airport Commerce Park in Houston TX

(07:19) - What is a 7.2% cap. rate? How do you think about it when looking at a deal?

(08:36) - How do you assess value initially when looking at a deal?

(10:33) - How does location affect this particular asset class?

(12:35) - What is a good diverse tenant base? How do you understand if it’s good or not?

(17:50) - What is the due diligence process for leases?

(20:08) - What is the Seller Type in a Property like this?

(21:07) - What is so interesting about this asset class?

(21:54) - Who are the competitors?

(23:41) - Once you buy, how do you operate to find Alpha?

(28:22) - What are the essential dynamics for more money?

(39:04) - What is the most important part of renegotiating rents?

(50:35) - Are there different types of land that are not real estate?

(52:55) - What is the current state of RE developments in America?

(55:36) - How many deals do you have to look at to find one valuable deal? How do you source them?

(58:23) - Hold Period/Exit Plans: Why sell if it's so good?

(01:00:15) - When to know if it’s ready to be sold?

(01:01:22) - How does selling relate to refinancing?

(01:02:37) - Does a successful RE capital manager end up in buy and hold?

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Additional episodes you might enjoy:

#131 People are getting rich with Med Spas. Will we?

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