Brittany Brink @BBCREAI8

Awesome tool for preparing site materials! @Esri is it possible to use the videos created in Google Earth Studio in StoryMaps?

Paul | Building Apps @DevPaulC

2 years ago

Have you ever played with the Google Earth Studio? So much fun...

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Can AI run your ENTIRE due diligence process on your next CRE acquisition? Well no, it can’t do that. But it can definitely help. Here’s how to use ChatGPT to help with commercial real estate due diligence. 🧵

Guess I’ll hold off on buying a boring business.

This little bit of Florida around Tampa Has more real estate for sale with the keyword “motivated” Than all of California

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1. Go to tertiary market 2. Find a product type that’s profitable to build 3. Check zoning code and figure out the zoning that allows for that product type 4. Reach out to every property zoned for that use but currently operating as a *different* use 5. Buy, profit // THREAD // This takes the “off-market property” strategy one step further The issue with most off-market strategies is that the owner actually has some idea of the value of the property For example, most owners know approximately what a multifamily property should be worth in the area That’s because of three reasons 1. They can base the value off the in-place cashflow 2. They can base the value off comps (and there’s always a ton of multifamily comps) 3. They can call up a broker to tell them what the value should be (and the broker will actually know) This isn’t to say you can’t get multifamily properties for a discount off-market (you absolutely can) Just that it’s harder to get a steep discount on them because the market for them is so transparent The brilliance of the strategy laid out above, however, is that the market becomes a black hole when you switch uses (ex from industrial to self storage) It works so well because the owner legitimately has no idea what the value of their land should be once you change uses The valuation methods used above no longer work 1. The owner can’t base the new value off the in-place cashflow because the cashflow obviously changes when you change uses 2. There are barely any comps for switching uses and the ones that exist are almost impossible to look up Anyone can look up a multifamily sale, how many unsophisticated owners can look at sales in their market and ascertain which properties have switched uses? My guess is literally zero 3. Brokers (especially in tertiary markets) have no clue how to value a property when you switch uses so the off-market seller can’t even go to them for advice For example, a property I’m prospecting off-market is currently operating as 3,000 SF owner-occupied industrial facility But it sits on 10 acres and can accommodate ~200k SF of self-storage. The owner has no idea I don’t reveal to the owner what I’d be building So, in order to value the property correctly, a broker needs to understand storage is the highest and best use, know exactly how much SF can be built, know how much it’ll cost to build and know what market rate and new NOI will be I know for a fact zero brokers in my market are capable of that analysis So the off-market owner has no one he can turn to to provide him a correct valuation for the property This means he’s shooting completely in the dark, which is incredible for you The hit rate on off-market deals is obviously incredibly low but when you hit on an off-market deal with a changing use, you can pick it up for a very steep discount Often a 50%+ discount because the owner truly has no idea about the actual value Very manual process, but when you hit big on a deal like this, you hit really big These are the deals that can retire you early. Just need to hit on 3-5 of these deals in your entire life and you’ll be sitting on a beach drinking mojitos wondering what to do with all your money If you’d like to learn how to buy deals like this (or even smaller, my first deal was $200k and I only used $2,500 of my own capital) apply in the next tweet for the Acquisitions Bootcamp to work 1-on-1 with me

The Effect of Inflation and Rising Interest Rates on CRE Transactions blog.thebrokerlist.com/the-effect-of-…

If you see a great deal, offer full-price, fast. It doesn’t matter that you think you can save $50k if you come in a bit lower. Don’t play games. Get the deal now.

Just closed on 135,000ft2 of former Sam's Club glory. Looking for ideas and partners to put this site to work! - 12 Acres - 6 Docks - High Ceilings - Good Column Spacing I love big buildings, so this one will be super fun.. #retwit #realestateinvesting

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The deals right now in multi aren't from the guys who took on 85% LTV bridge-debt. those guys are too far underwater that their lenders haven't figured out what to do yet. Equity + partial debt wipe out. The deals right now are coming from the guys that took on 70% LTV floating bridge-debt. 90-100% equity wipeout, but lenders still being made whole. The 85% LTV deals will come, just not yet.

A high-profile office building in Fort Worth, Texas is facing foreclosure. The Oil & Gas building. Located in downtown Fort Worth. It was purchased a year ago. The initial business plan was to convert the building from office to multifamily. The sponsor financed the purchase with $12.3mm in debt from Legacy Bank & Trust. The debt was provided in January 2023... ...A little over a year ago. The building was constructed in 1952. Foreclosure auction scheduled for March 5th.

The commercial real estate meltdown in San Francisco continues The former Twitter HQ located in SoMa is hitting the market at huge 'discount' The 187k sq ft building is expected to be offered at ~$50M, or $275 per sq ft What did the seller pay for the building in 2013? $110M, or $586 a sq ft, in 2013 and spent tens of millions in repairs/renovations The building reportedly has a vacancy of 67% For the latest updates on the commercial real estate meltdown just like this, make sure to follow @TripleNetInvest

You can also upload thinks like this to ChatGPT. But this was an awesome exercise - Kudos @vangeorgh!

Arc. Áyòmídé George @vangeorgh

2 years ago

I did something interesting this morning with google’s AI software Gemini 1.5; I uploaded a floor plan from Pinterest and prompted it to analyze and modify for a family of 8. Check this out: 🧵

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Having an edge is a huge factor to apartment investing. Here's one of mine. Sub 2 minute read, would love your feedback. Income ($60k+) & Home Values ($250k+) are my primary filters for where I'll target to buy more apartments. By Zip Code only. Using a 1, 3, or 5 mile radius, or going by county is incredibly skewed, yet all the major data sources focus on it. This puts those outside of the market at a disadvantage because their data sources will be too "zoomed out" Here's an example in my market Bloomfield Hills 48302 zip code Average Home Value $751,000 Median Income $167,500 Pontiac 48341 zip code Average Home Value $145,000 Median Income $40,631 Now, they're both in the same county, Oakland County. Oakland County Average Home Value $350,000 Median Income $40,638 A deal in Bloomfield Hills should sell for ~2x premium of average in the county, and a ~3x+ premium to Pontiac. I'd happily pay $130k/unit and likely more for any deal in Bloomfield Hills and I have zero interest buying anything in Pontiac even at $40k/unit, while also being a competitive bidder in almost every other market in Oakland County EXCEPT Pontiac and a few other zip codes. Pontiac deals will cite Bloomfield Hills, Auburn Hills, Troy, and other solid surrounding markets as "comps" when in reality these markets are far from comparable. This isn't the only example of this, there are many of these in every market and it's a primary edge that I have being a local operator and buying deals within an hour of where I live. Next step, knowing the streets. For example, 48220 is a great zip code. However, north of 9 mile is considered "better" by those who know it. There's a deal that sits in 48220 and borders the famous 8 mile and has sat unsold for over a year for this reason. They want "north of 9 mile" pricing, but it's unrealistic. If you read all of that, thank you. It took longer than I should have spent on putting it together + I suck at trying to stitch these photos together.

It was just reported that the family that owns Wawa owns a 53% stake in the company giving them a mind-blowing net worth of $6 billion 🤯 Their customers reportedly spend nearly double the industry average per visit What on EARTH is Wawa doing right/better than other convenience stores?

The big question: Can you actually use AI to get a commercial real estate deal done? Google Bard is now tied into Google maps data, making it a killer tool for leads. Here’s how you can use it to find tenants and buyers: 🧵 #crex #retwit #ai #googlebard #GenAI

Think people go about choosing a market all wrong. RE investors make money on mispricings Smaller mkt=less competition=less price discovery=more mispricings=easier to generate outsized returns So your main criteria for a mkt should be "place with the least competition" THREAD: Most people will tell you to look for population growth, etc But that just means more competition If 15 firms are bidding on a deal (like in bigger/higher growth markets) there's no mispricing and only way you get outsized returns is if you're lucky or have a unique biz plan So (as long as you're searching for short term flips) I would ignore all of those "population growth"-type stats entirely The only stat that matters is finding a market that has the most mispricings. Everything else is essentially useless noise Why is that? Well main difference in practice between investing in *expected* high growth cities vs lower growth is underwriting rent growth Typically the tradeoff is this: In higher growth cities/areas you have more competition in exchange for higher future expected rent growth So process of finding a deal is the same, process of raising equity is the same, process of underwriting is (mostly) the same, process of asset management is the same All that changes is you have more competition (in exchange for some future rent growth that may not happen) That means that if you go to smaller markets, exploit the lower competition and find mispricings, you're actually taking *less* risk - because you're not actually betting on anything in the future, you're only modeling the in-place cashflows (and maybe sub-inflation rent growth) Ex: if you buy at a 3 cap in Arizona and rents don't grow, your deal is actually in very rough shape Whereas it's actually hard to go really wrong in a lot of higher cap rate, lower growth areas - and you can make a ton of money in them without assuming any rent growth For example, let's say you're looking at a deal in a Tier 2/3+ area for a 5.5% cap rate. Purchase price is ~$2.6MM, making the NOI ~$144k Rents are currently $1,000. Your business plan is to renovate the units to increase rents to market ($1,200) You price out renovations and realize it’ll cost ~$7,500 unit. That means the return on cost of the renovation will be 32% ($200 rent increase*12 months/$7,500 cost) You realize immediately that this’ll be accretive as your base yield in the deal is 5.5% (the initial cap rate) The 32% yield on the new renovations will definitely “drag up” your initial 5.5% yield, which is exactly what you want What will be the overall effect on your stabilized yield as a result of the 32% return on cost? Well the total cost of renovations is $150k ($7,500*20 units). Added on to the purchase price of $2.6MM, that gives you a total cost of ~$2.75MM Now we need the other side of the equation - the new NOI For your new income amount, the total rent increase is $200*20 units*12 months = $48k. Added together with the in-place income of $240k ($1,000*20 units*12 months), that gives you a stabilized income of $288k The expenses actually (mostly) stay the same as nothing is changing aside from the amount of rent being paid. So the expenses of $96k remain, making the new NOI $192k ($288k-$96k) So, your new stabilized yield is ~7% ($192k/$2.75MM). You’ve added 150 bps to your stabilized yield, which is incredible But what can you do with your newfound yield? You essentially have 3 options 1. Cashflow (the higher yield means that there’s a bigger spread from your debt, which means your cash-on-cash will increase) 2. Refinance (your building value has increased due to higher income) 3. Sell (your building value has increased) Since this is a short term hold, we'll assume you sell The building is now worth ~$3.5MM ($192k/5.5% market cap rate). Since you bought for $2.6MM, that’s a hefty profit over a short hold period (we'll assume you held for 3 years)

@TopherNOW Please do share what you find out!

I hate to publicly admit it and create competition for myself but there are some very good opps opening up in commercial real estate As most of my followers know, I've been following and doing deals in the NNN space for the last 7-8 yrs But this is the first time in a while that I've seen the NNN market switching from a seller's to buyers market And this may be an opportune time to take advantage as interest rates have come down and may continue to go down over the next couple years For those of you that don't know, NNN properties (or more specifically, 'Absolute' NNN) is the most passive form of real estate you'll find - the tenant literally takes care of and pays for everything (inc roof/structure) during the term I personally own NNN properties in my portfolio and I'm able to travel the world for several months at a time without ANY kind of worries

🔮 What's on the horizon for #CRE in 2024? From #AI changing workflows to a push into affordable housing, head to Crexi Insights to learn more about our 2024 predictions here: bit.ly/49lwqw3.

Vision Pro's AR/Spatial understanding is insane