What are some key strategies for creating value in the industrial real estate space?

 

In this episode, Shannon Robnett dives into the world of industrial real estate investing. He explains what industrial properties are, how to create value through development, and the common misconceptions surrounding the industrial space. He touches on American manufacturing and industrial space usage, which is not as declining as many think. Shannon emphasizes the importance of never giving up and suggests looking into major brokers for more information on industrial real estate investments.

 

This episode is a must-listen if you want to learn more about building passive wealth with industrial real estate investing!

 

[00:01 – 07:19] Opening Segment

• How industrial real estate investing is a unique asset class that is all around us

  • Shannon explains how industrial deals are different from multifamily deals

• Adding value to an industrial deal involves raising rents or building a new property

• Rents in industrial deals are paid differently than in multifamily deals

 

[07:20 – 14:58] Industrial Real Estate Investing in Changing Market Conditions

• Industrial properties have triple net leases

  • The tenant pays for rent, property taxes, insurance, maintenance, and repairs

• What creates a stable cash flow stream

• Industrial properties trade at a 1.5-2% higher cap rate than other asset classes.

 

[14:59 – 22:37] Exploring Opportunities in Commercial Real Estate

• How to properly underwrite deals and take advantage of market changes

• Cap rates will continue to expand, and prices will soften

• Market is still strong due to solid demand and shifting demand into areas with less product

• Industrial real estate sector is slower than multifamily but has higher cap rates and more protection

 

[22:38 – 30:09] Closing Segment

• Best investment: Being important to important people

• Worst investment: Quick deal in a tertiary market without proper due diligence

• Most important lesson: Keep going and create a repeatable process for learning and investing

 

 

Quotes:

 

“Some of the main things that really make industrial different than multifamily is how the rents are paid.” – Shannon Robnett

 

“Real estate is never a short game. It’s a long game. It’s not a get-rich-quick.” – Shannon Robnett

 

“Be important to important people, but also look for opportunities to level up your importance to important people.” – Shannon Robnett

 

 

Connect with Shannon:

 

Website: https://shannonrobnett.com/

 

 

Apply to Invest with Taylor at www.investwithtaylor.com

 

Track your wealth for free with Personal Capital, go to www.escapingwallstreet.com

 

Please leave a review and help others escape Wall Street and build wealth on Main Street!

This episode is brought to you by Roofstock, the world’s largest residential real estate investing marketplace. Open an account for free and start browsing turnkey investment properties today.

We are also supported by You Need a Budget. YNAB is a different kind of personal financial tracking company. They’ll help you track and plan your money with your priorities in mind. Open your trial account today and give it a shot!

About the Host

Taylor on stage

Hi, I’m Taylor. To date I’ve acquired or partnered on over $250 Million in Commercial Real Estate Investments. I help busy professionals invest in multifamily and self storage real estate through my company NT Capital

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Real Listener Reviews

Extremely useful podcast
Extremely useful podcast
@thehappyrexan
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Short, impactful with excellent guests. If you have a full time W-2 job or business and are looking for ways to get involved in real estate on the side, this is for you.
Simple & effective information!
Simple & effective information!
@jjff0987
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This podcast is worth listening to for investors at all levels. The information is simplified for the high level investors but detailed enough to educate seasoned investors about nuances of the business. I recommend!
Awesome Podcast!!!
Awesome Podcast!!!
@Clarisse Gomez
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The host of Passive Wealth Strategies for Busy Professionals podcast highlights all aspects of real estate investing and more in this can’t miss podcast! The host and expert guests offer insightful advice and information that is helpful to anyone that listens!
Great podcast!
Great podcast!
@Owchy
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Love all the information and insights from Taylor and his guest. Fun and entertaining. Highly recommend.
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