The Ultimate Guide to Successful Real Estate Investing with Expert Shannon Robnett
Unlock the secrets to successful real estate investing with expert Shannon Robnett, a seasoned real estate professional with over 27 years of experience and a five-generation family history in the industry.
Real Estate Integration and Equity
Shannon Robnett has been involved in over $350 million worth of construction projects throughout his career, covering a wide range of assets such as multifamily, professional office buildings, city halls, and police stations. He quickly realized that the residential side of the real estate industry was too client-facing for his liking and transitioned to the commercial side.
The industrial real estate sector is a great option for businesses that don't need fancy offices and can benefit from the advantages of triple-net leases. From virtual reality companies to gelato ice cream shops, karate dojos, golf cart sales, electricians, and cabinet makers, a variety of businesses can fit into industrial complexes.
Real Estate Investing Philosophies and Diversification
Shannon Robnett shares his 27 years of experience in the real estate industry, discussing the differences between the old-school and millionaire-next-door philosophies of money and spending. Technology has changed how we view real estate and how contractors can explain long-term returns to their clients. Ground-up development and long-term investment strategies are foundations for successful real estate investing.
Real Estate Investing in Today's Climate
In the current climate of real estate investing, rising interest rates and cap rates are leading to a disconnect between buyers and sellers. It is crucial for investors to have a solid plan and the ability to execute it. Understanding the market's five-year cycle is essential for making informed investment decisions.
Real Estate Investing Fundamentals
The growth of markets like Boise, Idaho, can be attributed to factors like regulation, job growth, and new residents. Before investing in an area, it is vital to research the underlying fundamentals. Overactivity in real estate--such as taking on too many repairs and not raising rents over time--can have negative consequences. Additionally, it is crucial to understand the differences between buyers' and sellers' expectations when it comes to property values and the effects of cutting corners during due diligence.
Commercial Real Estate Investing Tips
With 27 years of experience in the industry, Shannon Robnett emphasizes the importance of presenting yourself as a known quantity and having a professional approach to due diligence. It’s also important to have systems to streamline the process, such as having a package with your bank accounts, tax returns, and balance sheet readily available. Shannon also discusses his preference for industrial ground-up builds and why they are his favorite investments.
Investing in Industrial Real Estate
Industrial warehouses offer several advantages for value-add investments. Tenant improvements can be 100% depreciated over the lease term, and tenants are becoming more educated on what to expect. Industrial warehouses are great investments for recessions, as they often see an increase in small businesses during economic downturns. Building industrial warehouses can also lead to free space for the owner.
Real Estate Investing for Passive Income
Shannon Robnett and Jonathan Greene discuss the pitfalls of self-managing an investment property and how to prevent yourself from becoming your own worst enemy. Exploring ways to get into passive investments and identifying which type best suits you is essential for long-term success. Be self-aware and take the time to do the math to ensure that your investment is truly worth your time and energy.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out http://www.trustgreene.com/podcast/zen/047