Investing in Triple Net Leases

[00:00:00] If you've ever wondered about investing in triple net leases and how it could be an awesome opportunity as compared to multi-family without some of the drawbacks or the expense management and the sometimes weak guarantor situation of tenants, then you need to listen to this

[00:00:16] episode today. I've got an amazing guest on here who specializes in this and it's very eye opening. Welcome to the Brick and Mortar Money Show! The podcast dedicated to helping business owners and professionals achieve wealth, autonomy

[00:00:34] and control through commercial property ownership. Join us as we unlock the power of real estate to transform your business and investment strategies. Whether you're seeking to expand, invest or gain more freedom in your entrepreneurial journey, this is your destination for insightful stories, expert advice and actionable strategies. Welcome!

[00:01:00] Hey welcome listeners today and viewers I have the distinct honor and privilege today of having Dan Lukowitz on the show. He is a senior director of Encore Real Estate Investment Services has 20 plus years of experience in real estate, focus now is in commercial real estate investing

[00:01:15] and it's got a pretty diverse background from residential to commercial so he's got a really interesting take on triple net real estate investing and so I want to pick his brain

[00:01:27] on that today, go deep. That's a topic that we don't hear a lot about and people are familiar with the idea of signing a triple net lease if you're a tenant or if you're an owner maybe

[00:01:37] assigning a triple net lease to one of your tenants but as far as investing in that I'm intrigued so Dan welcome to the show today. Yeah thank you so much for looking forward to

[00:01:47] this and I appreciate you having me on. Yeah yeah you bet so tell us a little bit about first of all how you got commercial real estate kind of just your glide path where you are now and then we want to learn more about this triple net thing.

[00:02:06] Yeah absolutely so you know my kind of pivotal moment where I really got interested and involved at the same time in real estate investing goes back like you said it's about 20 years. I was actually

[00:02:19] running a sales department or I was running the sales part of a business that I started with some friends it was called Disability Made Easy it is a barrier free home modification company company still around my best friends are running it I'm no longer involved but

[00:02:33] you know back about 20 years ago I had always had a sales and marketing background that's just what I love doing and you know my good friend and I got together and put this business together so

[00:02:44] again I was doing the sales and marketing but I would occasionally take trips out with our project manager to go look at properties and quote them out so I remember I'll never forget this I

[00:02:53] you know took a long drive out the middle of nowhere somewhere in Michigan couldn't even tell you where we got out of the truck and went into the house there was a gentleman who had been

[00:03:02] in an auto accident like 20 years prior and we walked out of the house and I said to our project manager I said let's get out of here like there's nothing we can do here this house is completely

[00:03:13] outdated and functionally obsolete there's no way someone in a wheelchair can have any quality of life living here didn't respond took out a piece of paper a graph paper and a pen and started

[00:03:23] drawing and in about 90 seconds he had sketched a brand new front elevation and a new layout to the property and that's the moment that it hit me that in real estate especially you can take

[00:03:32] something that is maybe functionally obsolete make some changes and then all of a sudden boom it's got tremendous value and it's better suited to its occupant so I kind of took this

[00:03:42] understanding and this this epiphany if you will and I you know applied it to you know the purchase of my first home this was during the last recession and it was time for my family

[00:03:53] and I to you know move out of my apartment buy our first home found something that was move-in ready everything was great we were all happy got ready to sign the contract and I said

[00:04:02] let me you know look around a little bit more I had heard that there was some bank owned property one street over so I got in touch with one of the lenders they told me about a property same exact

[00:04:10] size same bedroom bathroom count this would happen have a pool as well and you know it was probably about 30% of the price so I ended up buying that house and I hired out all of the

[00:04:22] trades right because I wanted to learn how to do what our project manager had done right take something that was functionally obsolete and add some value and make it better make the the the total thing that

[00:04:34] you create better than everything you put in so I did that my friends joked with me they said Dan what are you gonna do like with your life when you're done renovating your house and I have

[00:04:42] joked back and said I'll just buy another one and that's exactly what I did I bought another one another one another one another one probably a hundred houses later at this point um and

[00:04:51] it just became you know kind of a passion I mean I look at you know single family house flipping I call it a gateway drug into real estate because that's really what it was for me um all the while

[00:05:01] you know I was working at major corporations like Amazon eventually I went full-time into house flipping and then as you know kind of the climate the real estate climate changed I was approached with an offer to work at a commercial real estate brokerage

[00:05:15] and I kind of weighed my situation of hey I'm investing my own capital I'm borrowing from friends and family I'm getting private money loans I'm you know putting in all this hard work I'm

[00:05:24] you know getting up in the middle of the night because the police are calling me because a property is broken into right and and sometimes you score big and sometimes you don't score big

[00:05:32] you know what I'm saying sometimes you lose right so I looked at that and I compared it to brokerage and that's when I made this switch 100% into full-time commercial real estate brokerage and that was about five and a half years ago and it's been it's been tremendous

[00:05:44] I mean I still I still have to scratch that itch right I still see you know I'm a recovering house flipper so I still have to flip the house every now and then but my main focus 99.9% of

[00:05:53] my time energy and effort goes into commercial real estate brokerage that's funny you know gateway drug I've never heard it called that before but I have interviewed so many and I have we have so many clients that that's how they get started and invest in real estate

[00:06:08] and then they they look to scale inevitably the question becomes how can I do this at scale and how can I for to your point you know have so many moving parts you know to minimize that but

[00:06:22] yet grow in scale and so then they talk about multifamily and syndications and things like that and commercial and getting out of the single family space but very cool though so it started

[00:06:32] with an epiphany it sounds like and really that's kind of cool right you just kind of hit with a you know a box or a bricks from from from heaven right he said wow we can read we can do this

[00:06:45] and it started on this and completely different pathway so all right so with all that experience and passion and living that and then you moved into commercial real estate as a broker talk to us about that what have you learned there what are the opportunities there

[00:07:00] and how do you get to where you are today you mean specifically in the commercial real estate brokerage space yeah yeah yeah I mean so like I look at it you know my best house flip

[00:07:11] I'm not gonna like you know talk too much about numbers but my best house flip right which again that's the best one I've lost money I'm not gonna lie I've lost money on houses sure I you know

[00:07:20] there's nothing worse than being into a house and not being finished and knowing your every dollar you're putting in is just a dollar that's gonna you know gonna have to come out of your bottom

[00:07:28] line but you gotta finish the house right I've been there before it's not fun in commercial real estate brokerage I'm not using my own cash I mean to me I've invested a lot into my business

[00:07:38] but in the beginning especially I wasn't using that much on my own cash very little risk I can do it from anywhere either from you know my office or from you know another part of the country if

[00:07:47] that's where I am at the time and and you know when I when I have a sit and when I have a closing typically you know your average commercial real estate transaction affords you a closing that's

[00:07:57] gonna be the same or significantly better than the best house flip you could have so to me it just it makes a lot more sense I'm using more like a lot more of my brain than I am you know my brawn

[00:08:07] and I don't have that much brawn but um you know so I think that's that's tremendous and then you know the opportunity to learn and grow like I always tell people I'm learning every day my

[00:08:17] clients are my biggest teachers you know I learned things that I never would have even thought about or imagined just by being a commercial real estate broker it's also taught

[00:08:25] me and trained me to be a good investor and I'll give you a perfect example I have a very close friend we've done a number of deals together he reached out to me because you know prior to our

[00:08:34] show we were talking about you know Chesapeake Virginia and a specific deal there so I was working on a specific deal in Chesapeake not too far from where you are or you were and you know

[00:08:45] we're working with a major national tenant by the name of Starbucks my friend knew about it he called me said Dan I've got this deal it's a office building and some vacant land and the

[00:08:53] vacant land is going to be converted to a build to suit for Starbucks can we talk about it so I was like sure yeah let's talk about it and we went through the deal and I was like oh I like this deal

[00:09:01] this is cool everything's great well fast forward a couple months he came to me says Dan you remember that deal with the Starbucks I said yeah he goes well we're gonna do a joint venture and put

[00:09:10] together um alone uh to to the owner of that property and I was like dude I want in I knew the deal I understood the deal if I wasn't a broker I wouldn't understand the deal and then I did

[00:09:20] something really cool I love this I took my CEP IRA I'm self-employed so I have a CEP IRA I took my CEP IRA I sent it over to Equity Trust which is a custodian and I was able to actually

[00:09:32] invest my CEP IRA into this loan right which has a fixed interest rate payment and then I can then take that and put it goes back into my IRA and grows and it's tax deferred until when I take it

[00:09:44] out so cool that opportunity wouldn't be there if I wasn't in the position and in the seat that I'm sitting right now yeah that's really cool yeah you're exposed to so many more opportunities

[00:09:55] circumstances deals you see so much and so um you you you're your learning curve is accelerated right and uh and you meet so many interesting people now I see the same thing not only from the show

[00:10:08] but clients and opportunities um and it's funny that your headquartered in Michigan but you did a deal in our backyard in Chesapeake and uh and I know we talked earlier before we hit record that you

[00:10:21] service clients nationally so we'll get into that some too um let's fast forward now and talk about this this idea of triple net leasing because I think that is again as a concept that a lot of

[00:10:31] people aren't familiar with the the investing in that um what is it how does it work how does one you know get involved in what kind of returns and things do do you typically see

[00:10:42] yeah I just gave a master class on this last uh last week for Jake and Gino I would yeah I could would love to pull up the I put together a real nice presentation but essentially

[00:10:50] we can do it without the slide so um you know net lease is the reason it's called net lease is because the rental payment is net to the landlord and I'm going to explain what that

[00:10:59] means so the way I like to define what net lease is is by defining what it isn't so a lot of people are going to be familiar with multifamily so for the purposes of this explanation

[00:11:08] we're going to compare multifamily to net lease and I think it'll become very clear as to what it is so let's talk about um and this is hypothetical right so it's a hypothetical not exact numbers but

[00:11:19] we got a small multifamily um it's gonna be it's bringing in 125,000 dollars annually in gross collected rents right that's on that's your top line number your gross collected rents 125,000 we'll call it you know it's a 10 unit they're paying 12,500 a year not not you know not a

[00:11:36] high end apartment complex okay but your gross collected rent 125,000 now let's take a Wendy's deal we're going to get into this later in terms of like the difference between different Wendy's deals and different net lease deals but for again for our purposes typical Wendy's deal um they're paying

[00:11:52] 125,000 that's your gross collected rent okay so you look at the deal it's exactly the same on the top line on the gross the gross number now if you look at the multifamily deal

[00:12:04] there's going to be expenses and those expenses could be 50% of your gross collected rents or so so you've got things like what management you've got things like capital expenditures right you might have to replace the roof or the parking lot you've got things like snow plowing and landscaping

[00:12:18] cutting the grass shoveling the sidewalk uh you've got vacancy I think I said management you've got taxes you've got insurance right all kinds of things so your 125,000 at the end

[00:12:29] of the day might be 60,000 right when you get rid of all those expenses now let's go back to the net lease deal that Wendy's deal again 125,000 gross collected rents but what's awesome about

[00:12:40] the net lease deal is the 125,000 that's net to you the landlord so watch this the tenant pays for your taxes the tenant pays for your insurance the tenant pays for any common area maintenance they pay for roof structure parking lot management whatever there is

[00:12:56] you spare zero expense now that's what's called an absolute triple net lease that's like the gold standard cookie cutter bread and butter deal not to get too complicated but there are other similar types of deals for example a double net lease double net is exactly the same so

[00:13:12] tenant pays taxes tenant pays insurance tenant pays for any common area maintenance management snow any of that stuff landscaping all that good stuff well they don't pay for in the double net lease they don't pay for roof they don't pay for structure and depending on the

[00:13:25] lease they sometimes also don't pay for parking lot as well that's going to be called a double net lease there's other types of leases like a gross lease which is much more similar to a multifamily lease right where it's very common in shopping centers where the

[00:13:39] tenant pays gross rent and then the landlord pays all expenses but typically what we do especially in the single tenant meaning one tenant one building type of universe that's

[00:13:50] going to be an absolute triple net deal or a double net deal but you know you can see here why they're so attractive in addition to them being 100% passive right their mailbox money or coupon

[00:14:02] clippers if you will another nice thing is they're very predictable because everything is spelled out in the lease upfront so if your lease has annual escalations maybe 2% annual escalations or 10 percent every five years you know exactly what you're going to be collecting for the duration

[00:14:17] of the lease every little thing is spelled out and those leases are typically very long term 15 20 years is very common so you know you got the stability security another nice thing predictability I

[00:14:28] said another nice thing touching on the stability and security is that the leases are often guaranteed by hundreds if not thousands of units what i mean by that let's contrast that to multifamily

[00:14:40] if mrs jones rents from us in our multifamily property the guarantee is mrs jones if mrs jones goes bankrupt right or doesn't have any money guess what we have no recourse to collect the rest of

[00:14:51] our rent now let's take a look at like a wallgreens lease if it's a corporate seal they have thousands of locations even if they're doing poorly at your location and they leave they're still on the hook

[00:15:01] to pay for the rent unless they bankrupt the entire company which by the way does happen you know they see right aid for example but you know it's not nearly as common and again we touched on

[00:15:12] this a minute ago but if you look at a wendy's deal you might think that you know you're driving down the highway you see a wendy's and that wendy's exactly the same as the one you see four miles

[00:15:19] down the road and that's not true number one the lease term could be different um number two very importantly the guarantor could be different one of them could be like you know paul and dan

[00:15:29] open up an llc we got sick of real estate then we started flipping burgers and it's just us right it's just our one unit and if something goes wrong if paul says this isn't for me or dan says

[00:15:39] for him right guess what the person that owns that building is has no recourse because we could bankrupt our one unit company easily the one that's four miles down the road right they might have

[00:15:49] 400 units so if they're not doing well they have to keep paying you so that's another you know aspect of net lease that's important to pay attention to um i think we'll we'll leave it

[00:15:58] at that for now because i've got a lot more to say but i don't want to you know bombard it all at once wow okay yeah so um very very cool so these triple net leases so do you generally see you're

[00:16:10] talking now about single tenant is that generally the case when we're doing triple net or uh yeah the triple net leases are typically single tenant i do sell a lot of shopping centers i just had

[00:16:20] a closing the other day of a shopping center um those can be triple net leases believe it or not because what what's typically happens is you know you have to look at the leases and

[00:16:29] that's why you need to work with a good broker but in some cases they are gross leases where the tenant pays rent and the landlord pays expenses but more often than not we're seeing more and more

[00:16:38] triple net leases and i i advise my clients to convert the leases to triple net leases when they roll over when they have an opportunity to um and typically the way that works is let's just

[00:16:47] let's make it easy you've got 10 tenants they're varying sizes in your shopping center what you do is you look at the square footage that this that this tenant in question occupies relative to the entire gla the gross leasable area excuse me so they might occupy 13.2

[00:17:04] percent so many leases are written that saying that a tenant will pay their pro rata share of the expenses and then at the end of the year the landlord does a reconciliation because things go

[00:17:15] up in price right and once you know there's that reconciliation that is now passed back to the tenant that's a great you know great way to increase the value of your shopping center and decrease you know the unknown decrease expenses to convert to triple net leases and like

[00:17:29] i said they can be done in single tenant and also in in shopping centers as well okay okay so um i mean i have some questions but obviously continue on on the process here because i'm

[00:17:39] i'm kind of formulating but i don't want to get ahead of where you're going yeah so listen like i said i mean it's very easy to just say a wendy's is a wendy's is a wendy's and it isn't

[00:17:48] right so i mentioned guarantor strength and size right dan and paul you know dan and paul out burgers llc we're small where we don't have a strong guarantee right but if you're looking at

[00:17:58] like maritage they have like 355 locations and they're you know a publicly traded company so you can get their financial information so it's important to know who is signing on that lease because if

[00:18:09] dan and paul sign on the lease and it's a 20-year lease you're betting on just us to succeed at just this location whereas if maritage signs on the lease and something goes wrong you've

[00:18:18] got a lot more certainty and a lot more um you know stability there so that's very um that's very very important another thing to take a look at not always available but uh they're called sales reports

[00:18:29] right so a lot of quick for example a lot of quick service restaurants and pharmacies do provide mandatory annual sales reporting to the owner so if i'm looking at a wendy's that does one million in sales and i'm looking at a wendy's that does 2.7 million in sales obviously

[00:18:44] say i want the one that's 2.7 million now to go on a little tangent in the quick service restaurant field specifically which is one of the asset classes i i do a lot of transacting in um you

[00:18:55] want to pay attention to what's called the rent to sales ratio very simply that's what are they paying in rent relative to how many how much they're doing in sales and typically

[00:19:03] we want to see a quick service restaurant doing at most an 8 percent rent to sales rather see them at seven and a half or seven or lower once you get into the nine ten percent even though

[00:19:12] it's only one or two percent there's a much higher likelihood that that store is eventually going to close that's really important another thing we want to look into is the traffic counts right how many cars are traveling in front of that property every day right are there 15 000 or

[00:19:27] are there 50 000 and obviously the more traffic the more exposure the more the tenant is likely to do well there um ingress and egress how easy is it to go in and out of the property

[00:19:37] give you a great quick example a couple years ago i sold the property for a great client of mine it was a wendy's here in michigan and it was doing really well uh 64 unit operators so

[00:19:46] decent size all of a sudden the city said you know what this is near university a lot of foot traffic we want to put one of those things in the center of the road where essentially

[00:19:55] pedestrians can come stop in the center of the road once they're crossing wait until the other side is clear and keep going sounds great right the problem is they put that thing

[00:20:05] right in front of the drive through so it was almost impossible for people to go in and out of the building there was a lawsuit they was it was it was you know it was complicated but the

[00:20:13] bottom line is it really hurt the sales of the store so that that's just an example additionally i tell people when you're looking at net lease property another very important factor is the proximity to other national retailers in fact when i'm underwriting a deal and looking

[00:20:29] at a deal and trying to understand what what the value of the property is one of the first things i look at in addition to population density average household income which we'll talk about

[00:20:38] is the proximity to major national retailers if wall greens is there and walmart is there and mcdonald's is there and chic filet is there and you know discount tire is there well they all

[00:20:48] have real estate departments they're all you know getting paid to make good real estate decisions if they feel that's a good location i think that that's an argument to say it is a good

[00:20:57] location uh you know number one uh and number two that's going to bring traffic to the area right if you have a walmart right that if your property is sitting in the parking lot of a

[00:21:06] walmart you're going to benefit from all those cars that are coming in every single day shopping at walmart so those are you know some some important factors to consider obviously you want to look

[00:21:15] at lease term and cap rate uh generally speaking the the longer the lease term the lower the cap rate the higher the price the shorter the lease term the the higher the cap rate the

[00:21:25] lower the price mm-hmm mm-hmm wow okay interesting so you you packed a whole lot in there so um so the single tenant operators is really what you're looking for look for the guarantor of

[00:21:39] the strength there's a lot of factors here to consider when you do this now talk about it from uh from an investor standpoint let's say uh dan and paul don't want to run this wendy's but

[00:21:49] instead dan and paul want to invest in some of this opportunity and get into this cash flow because we're all trying to build our wealth through cash flow and real estate cash flow

[00:21:59] appreciation that sort of thing so so how do we approach this um when we want to get into this market great questions there are really two avenues and it just depends on how much money you have right

[00:22:09] if you're if if we in your example are trying to buy a property and we've got two or three million dollars well hey we can buy a single tenant in that lease property we can own it a fee simple

[00:22:20] interest we can choose to buy it in cash we can choose to leverage it whatever we want right now if you don't have that much money you might have 20 50 100 000 the really the only avenue

[00:22:32] i shouldn't say the only there are there are a few avenues that are open uh for you in that in that case okay and um the avenues that are open for you in that case are going to be number one you

[00:22:42] could just invest in a real estate investment trust right you could buy you know agri you could buy four corners property trust you could buy spirit realty any of these companies right

[00:22:51] those are all options for you you're not going to get any of the benefits of tangible real estate ownership you're not going to be able to participate in appreciation or depreciation you're not going

[00:23:01] to be able to leverage um none of that is existent it's not i'm not saying it's bad it's just that's just one way the other way is going to be to invest in syndications in joint ventures

[00:23:12] you know where somebody is buying a shopping center for example i've got a great client he has a fund people invest 20 50 100 000 dollars at a time with him or more and he then takes that

[00:23:23] money calls me and says damn let's buy some shopping centers and he manages them and then provides a return to the investors and they do participate in the benefits of real estate ownership so

[00:23:34] that would be the option that would be available to people who don't have access to enough capital to buy the property you know as a just kind of a purchase but rather need to be part of a pooling

[00:23:48] of capital so both of those avenues exist and i would strongly recommend looking into them depending on where you're at on that capital spectrum so okay well in addition to the capital spectrum so what about the experience spectrum i mean would you recommend since you've seen a lot

[00:24:01] you've come from you know converting your first house that you bought into uh you know a more usable space all the way into this commercial space and you're you're placing a lot of these

[00:24:10] these deals um someone who has no experience there i mean does it make sense to maybe get involved in a syndication up front so they can kind of learn the process and they're not

[00:24:19] risking a tremendous amount of capital before they go and say okay i've got you know i'm going to dive in maybe i've got a couple million i had i personally have a couple of friends that

[00:24:27] just sold some car washes and they have bought a couple of they did a couple of ground-up construction on a few uh one was a take five oil change place there might have been two of those

[00:24:37] and i think a sleep one of these sleep number places um you know so they they're doing it with the you know the cash to deploy they wanted to avoid some of the tax consequences of the sale

[00:24:47] their business and so you know they 1031 a lot of that um and so there are people that are in that boat for sure but these guys were also very seasoned in real estate and commercial because

[00:24:56] they built their business you know uh through car washes and commercial real estate it was all about a lot of the things you talked about what are the traffic counts where you know we're

[00:25:05] yeah you know positioning and all that yeah so listen you know i'm a bit of a control freak freak when it comes to investments so like for me i needed certain things right i needed

[00:25:16] familiarity with again this is if i'm not doing it myself which i think the direction of where we're headed with this this question but you know i needed familiarity with the deal

[00:25:24] which i had right because as i mentioned i had underwritten it just as a friend you know as another set of eyes um i needed this is maybe number one i needed comfort and assurance from the sponsor

[00:25:35] from the person putting a deal together now this is someone i look up to this is someone that i have close relationship with this is someone who i've done deals before

[00:25:42] with so you know very comfortable um i i did look at a ton of deals before i decided to put capital into this one and a lot of them sounded great but like these were people that

[00:25:53] i didn't know any more than seeing their posts on linkedin right which is a great start but ultimately for me it was all about the relationship so you know look if you're talking about a single-family house flip in detroit michigan right at the time where i was spending

[00:26:08] or metro detroit i was spending 40 50 60 thousand 70 thousand on a single house you're not talking huge dollars so the risk is is limited right but when you're talking three two three four million dollars for a net lease property or a shopping center that's a lot more money so

[00:26:24] i would say yes look if you can find the right sponsor who you trust and you can find the right deal that you believe in yes it might be wise to invest your money there i will caution you

[00:26:34] you're gonna get a return hopefully right that's the goal i don't really believe that you're gonna gain that much knowledge or understanding of the process because most sponsors don't have time for that they're busy running the deals they're not there to teach

[00:26:48] you what's going on in terms of how do you accomplish both how are you successful you know and at the same time learning and and not taking too much risk i think maybe do a few of those deals

[00:26:58] or find a way to get enough capital to eventually do one on your own or find a sponsor that is willing to teach you maybe you find a sponsor and they say i'm raising three million dollars

[00:27:08] and you say okay here's 50 and they say if you can help me raise another 100,000 or whatever the number is you know i'll just keep you you know right here with me the whole whole way

[00:27:18] along and teach you the process so that's that's a great way to do it i'm fortunate because i got to learn through brokerage through my job which not everybody has that opportunity right

[00:27:26] so i would say that you know it really depends on what you want to do you don't ever have to learn it like to do it yourself you can just invest in syndications and joint ventures

[00:27:35] and partnerships lps and all that stuff for the rest of your life if you want to there's a lot of ways to do it but i do think that the more you learn

[00:27:42] the more effective you're going to be and the easier it's going to be to spot those great investments yeah yeah i mean i'm all for about roi but you know i'm i'm more for a return of your capital and

[00:27:54] so you have to have some i believe you have to have some semblance of what you're getting into you know when you when you buy any kind of an investment you know you may not be an

[00:28:03] you know expert and so that use the word here a couple of times a sponsor that you trust someone that you trust someone's got a track record and you know it's harder and harder to find today

[00:28:15] as we delve into this world of ai and everything is artificial and more artificial but i think it's to me that's the um it's the um the the most significant thing and it's going to be even

[00:28:28] more important going forward in business than that even in the past um what about just kind of wrapping up because you you're someone who is you know highly focused in the space so and i know there's a big

[00:28:41] difference between a residential real estate agent and a commercial agent and broker for someone who wants to cross the chasm there are a lot of people in residential that kind of dabble in commercial

[00:28:53] right and so and i and i often you know my off repeated uh uh i'll say wisdom is be careful there right just because there's a lot you don't know i see it on the transaction side when i get a

[00:29:04] deal come through in a residential real estate agent was involved in great people and then you know they're you know everyone has the best intention but not necessarily there's a lot of

[00:29:11] things that they don't know right so if someone is interested in this space i mean tell me how how you as a commercial broker in general but then specifically about yourself how you serve clients

[00:29:24] and help them that might be interested in doing something like this stan so are you speaking more towards the investor client or are you saying for agents or people that are looking to get into

[00:29:34] commercial brokerage no more about the uh the investor i mean look i i don't even know where start i mean in some cases i'll give you a great example i sold a wendy's for someone

[00:29:47] 1.837 million is what we sold it for this was a couple years ago and great guy love talking i probably learned more from this guy than almost anybody have ever learned from very humble

[00:29:56] didn't tell me much didn't know like what was in his portfolio as we started talking as we started doing going through transaction i said oh wow this guy's got more than i thought and um that was

[00:30:05] it you know sold the property he was happy sent him a bottle of liquor he sent me a nice note back life is good right that's that's normal brokerage transaction couple months later um i was actually

[00:30:16] recording a podcast and i got out of the studio and i saw i missed a call from him twice and uh i picked up the phone i said hey what do you want to sell he said wait a minute how do you know

[00:30:26] i want to sell something i said because you never call me and you certainly never call me twice so he said okay you're right i gotta i got some uh resorts i want you to sell

[00:30:35] and i said okay fine not my specialty he trusted me but not my specialty and we were talking and he said you know i think there were 32 million dollars so i said okay you know made a little mental

[00:30:46] note of that went back to the office did some homework pulled some comps scratched my head for a while on it talked to some colleagues i came back i said i think i can get you 45 he said no

[00:30:57] way i said i think i can i said in order to assure you i want to list it at 47 okay and that way we have a little bit of room long story short i sold those resorts for over 47 million

[00:31:08] dollars and here's an individual had somebody come up to them and said hey i want to buy your resorts he would have said okay 32 million right right i due to my advisory services he was able to take

[00:31:20] another 15 plus million dollars and put in his pocket that's a perfect example of just a day to day hey this is what i do to add value to my clients you know another thing is is my clients

[00:31:31] are busy right i've got developer clients that are flying all over the country five days a week looking for sites you know get dealing with cities dealing with tenants doing all that side of the

[00:31:41] business they hire me handle everything else so my job is behind the scenes to be juggling every single aspect right to be on top of title to be on top of the third party environmental survey

[00:31:52] property condition assessment you know to to make sure that escrow is moving smoothly to do everything so that they can go out there and do what they do and develop properties so

[00:32:01] you know really the value that i add is not only the advisory of hey yeah your property's not worth 32 million it's worth 47 million plus right but also to make sure that you can focus on what

[00:32:11] you do best let me handle the transaction let me get you the best buyer possible and you know i always tell people i want my clients to think that a real estate transaction is the easiest

[00:32:22] simplest smoothest thing they've ever done because from them that's exactly what it should be right my job is to handle everything else awesome well well said very exciting and

[00:32:32] it would a very cool story dan so uh how do people get in touch with you when they want to get involved at some level in the commercial space and uh and they want to play sure so first of all

[00:32:43] highly encourage people to reach out like it's one of my favorite things i probably take a call every week or two from people who are new investors or getting into the brokerage industry

[00:32:53] or having trouble and you know i love to help out my favorite thing is when they call back six months later and say dan look at what i did over the last six months then i get to really

[00:33:02] you know have that sense of like wow that's amazing it just feels good so please reach out number one i'm very active on linkedin you can find me there i put out daily content

[00:33:12] first name is dan lasting lucowitz lew ko w i cz again lew ko w i cz uh the picture should look like me i think there's one other dan lucowitz but he's in france um but anyway yeah reach out to

[00:33:25] me there um additionally yeah and follow me send me a dm tell me that hey i was listening to this podcast and you know i that's why i reached out um additionally i'll give out my personal cell

[00:33:36] phone number uh if you have a deal you want to buy if you want to sell your property if you want to know what it's worth if you have a deal and you just want an extra set of eyes on the

[00:33:45] deal even though it's not mine or you just want to talk shop and real estate please reach out i'm here to help i love doing it my phone number is 2489432838 again that's 2489432838 and it would

[00:33:59] be my pleasure to help in a new way i can dan that's awesome i appreciate we'll get that in show notes too so it's available for everyone uh i appreciate your time and perspective great

[00:34:08] conversation on triple net lease investing i mean i again i this is we've done a lot of these shows and you're the only one that's talked about it so and it's and it's a fascinating concept to me

[00:34:18] and uh i think it it's going to open some eyes and some perspectives on opportunity out there that you just don't hear about a lot so i appreciate that man absolutely my pleasure have an amazing day

[00:34:32] awesome thank you so much i really appreciate it you bet hey gang just wind it down here today thanks for listening to the show and as always if you need capital to grow your business

[00:34:43] you're looking to purchase commercial real estate or build build a building or invest in commercial real estate you're looking to to acquire a business or a competitor or just need growth capital we'd love to talk to you we fund businesses all day long our mission is to help

[00:34:58] entrepreneurs win and to fund their businesses and fund their dreams so that they can make an impact in their community reach out to me today go to our website click the button schedule a 20-minute conversation discovery call we'll have a quick conversation see if there's

[00:35:12] the needs see if there's a fit and uh we can take it from there the website is vpc victor paul charlie dot capital that's vpc dot capital all right there's no dot com on that it's vpc dot

[00:35:28] capital as always keep crushing it and hope to see you soon around here take care