💰Hidden $500M Industrial Real Estate Goldmine

The Real Estate Investing Club

Join our community of RE investors on Skool here: https://linktr.ee/gabepetersen  TIMESTAMPS: 0:00 - Introduction to Industrial Outdoor Storage Investment Strategy 1:04 - Blake's Journey from College Football to $500M Real Estate Empire 5:00 - What is Industrial Outdoor Storage and Who Are Your Tenants 8:19 - Understanding Coverage Ratios and Property Requirements 12:12 - Underwriting Industrial Outdoor Storage Deals Like a Pro 16:22 - Target Markets and Geographic Investment Strategy 18:04 - Current Market Conditions vs Traditional Industrial Real Estate 21:11 - Quick Fire Round: Life and Business Advice 30:05 - Finding Deals Through Broker Relationships 32:37 - Due Diligence Lessons and Deal Management 34:43 - How to Connect with Blake and Next Steps  DISCOVER THE HIDDEN INDUSTRIAL REAL ESTATE GOLDMINE Uncover the secrets of Industrial Outdoor Storage investing with Blake Rodgers from Steel Peak Properties! 🏗️ This lesser-known asset class is generating massive returns while traditional industrial real estate faces headwinds. Learn how Blake built a $500 million acquisition pipeline by specializing in properties with small buildings and large outdoor storage yards.  WHY INDUSTRIAL OUTDOOR STORAGE BEATS TRADITIONAL WAREHOUSES While everyone chases Amazon warehouses and distribution centers, smart investors are capitalizing on Industrial Outdoor Storage facilities that serve construction companies, equipment rental businesses, and logistics operations. These properties feature 20-25% building coverage compared to traditional industrial's 35-50%, meaning the real value lies in the zoned land and outdoor storage capabilities.  TARGET TENANTS AND CASH FLOW OPPORTUNITIES Industrial Outdoor Storage serves high-demand tenants including United Rentals, Sunbelt Rentals, crane companies, and construction contractors who need secure yard space for equipment storage. These businesses sign triple-net leases and require specialized zoning that creates natural barriers to entry, protecting your investment returns.  UNDERWRITING STRATEGIES FOR MAXIMUM RETURNS Blake reveals his value-add approach focusing on vacant properties or short-term leases under three years. The key metrics include building coverage ratios, zoning compliance, and stabilization timelines of 6-9 months. Unlike traditional cap rate analysis, Industrial Outdoor Storage requires return-on-cost calculations with 3-5 year hold periods for optimal exits.  GEOGRAPHIC FOCUS AND MARKET SELECTION Steel Peak Properties targets major Western US markets including San Diego, Seattle, Salt Lake City, Denver, and Southern California. These land-constrained markets with strong industrial fundamentals provide natural supply limitations and consistent tenant demand from growing construction and logistics sectors.  Join our community of RE investors on Skool here: https://linktr.ee/gabepetersen

Transcript

00:00all right we are back with another episode of the real estate investing club i hope you guys

00:11are having a great day great week wherever you are and whatever day it is for you as always on

00:17the podcast it's friday so we're bringing that good friday energy to you uh we have a unique

00:23asset class to talk about today generally we're talking about self-storage mobile home parks

00:28multi-family uh short-term rental that kind of thing but today we are talking about industrial

00:33outdoor which is something that not a lot of people talk about not a lot of people buy but it

00:38is an interesting asset class um and something i'm sure a lot of you guys might be interested in so

00:43we got blake rogers with us on the podcast to talk about this he's from steel peak properties and they

00:49focus on industrial outdoor so blake thanks for hopping on what's up gabe thanks for having me

00:54appreciate it absolutely i told you before we got on here we always like to start with stories we

01:00like to hear how people got to where they are uh so why don't you take us to the beginning of your

01:04story in real estate and uh tell us how you got here yeah sure um so got into real estate uh roughly

01:1210 years ago now actually in college had my first internship in college kind of fell into it uh i i was a

01:21college football player uh actually went up to washington where you're from to go play for the

01:26huskies on a scholarship and uh yeah go dogs so that was a good time and then uh ended up transferring

01:32down to san diego state university i'm from orange county so i'm pretty close to san diego and when i got

01:41to san diego um ended up you know having to change my plans from from football like going to the nfl was

01:48like you know the goal my whole life um and then i realized okay i'm not going to the nfl now what am

01:54i going to do here so i'm talking to my dad i'm talking to you know guys in my fraternity um trying

02:00to figure out what to do and everyone was telling me you should look into commercial real estate dude

02:06like your your personality like um i think you'd like it it's similar to sports like eat what you kill

02:13um so i was like okay let's let's go into into commercial real estate and uh so i got a couple

02:21internships as a broker and started as a commercial real estate broker early on while i was in college

02:27and did that for about nine years and ended up at a big uh corporate uh shop jll one of the biggest in

02:37the world oh yeah and uh got lucky i joined jll on a bit one of the big industrial teams right when

02:45industrial got super hot in like 2020 2021 when covid kind of skyrocketed our market and uh so i was

02:53working in the san diego market all things industrial and then i quickly fell into what i do now which is

03:01industrial outdoor storage and uh at the time i was representing corporate tenants looking for space

03:09and these were companies these were contractors that needed yard space and so they needed you know

03:15smaller buildings with excess yard which which is what industrial outdoor storage is ios and no one

03:22was specializing in it at the time kind of newer asset class has not really been institutionalized

03:29there wasn't as much money in the space yet and i was like why does no one know what's going on here

03:37there's no data no comps and so i was like i'm gonna go full throttle into this i'm gonna become

03:43the guy in my market and so um i started doing a bunch of deals and right at that time as i was tracking

03:51all these ios deals as a broker uh mainly on the leasing side with tenants a bunch of capital

03:57flooded into the space um one of my clients back then is one of the biggest uh groups in this space

04:05investor um who i compete with now on some deals right and uh they raised like 750 million so they

04:15needed to go buy a billion or two of this stuff and uh so i just started tying up deals with them and

04:21with other groups like them and that's how i kind of learned the space and then eventually

04:25had enough success where i looked at you know one of my buddies and was like let's go try to do this

04:31on our own and we started doing our own deals and that's kind of how uh steel peak properties was

04:37formed so we left brokerage my my partner was a broker as well but he was on the debt side

04:42and uh we left brokerage in 2023 uh end of 23 we launched our company in january of 24

04:50and now we're buying our our 10th deal uh in the last like 18 months yeah and uh raising institutional

04:58capital um and we're buying all over the western u.s that is awesome um yeah so great trajectory you

05:07know one year 10 deals i mean i know you had a lot of practice before that but even when you guys

05:12launch a new company it's good to see people with you know good traction to start it off with um yeah

05:18let's talk specifically about the asset class itself let's dig into it a little more because

05:22it's not something a lot of people understand or even aware of everybody understands industrial

05:28big warehouses places where you know contractors rent where amazon rents stuff like that people

05:34understand industrial but industrial outdoor is not as well understood but people you know people

05:39usually get it once you drive by it and you understand what it is so tell us a little bit

05:43about specifically the asset what is it and who rents from you so if you think traditional warehouses

05:50um one of the one of the like the common um specs or like fundamentals of traditional warehouses

06:00is that you you buy a plot of land right and you build a warehouse on it and then a portion of that

06:06land has to be parking landscaping um stormwater retention etc like there's there's all these

06:13other development requirements and usually the percentage of the land that is built out

06:20for normal warehouses is roughly like call it 35 to 50 percent depending on depending on what market

06:29it's in you know how old that product is like a lot of the older product is closer to like 45 50 percent

06:36coverage and so that word coverage that's really just like floor area ratio um it's the building

06:43coverage on the land so how much does that building cover and so an easy way to look at ios is um if

06:53your standard industrial is 35 to 50 percent ios is going to be like sub 20 percent coverage uh 20 25

07:01percent coverage depending on um the deal and how it's configured so basically it's really just a

07:07smaller building they can even still be big they can even be like 50 to 100 000 feet but imagine that

07:15building on like a 10 acre site so most of the site the values in the land and the values in the

07:22zoning because uh the zoning is what allows you and allows these different companies and these uses

07:29to store product outdoors or whatever they want to do outdoors it's that land component that's the

07:35most critical to their business so like what we buy for example if you're like driving down the freeway

07:41wherever you live and you see like a united rentals or sunbelt rentals those are like the

07:47construction equipment rental groups um you'll see them on the freeway you'll see like a big sign

07:53it's usually a smaller warehouse shop building um and then they have a big yard and that's where they

07:59store all the um construction equipment out there and you'll see like crane companies groups like that

08:06or or groups that are parking a bunch of trucks that's really what ios is it's it's construction

08:12it's logistics it's it's all those heavier but smaller um sites and that's that's really what the asset

08:21classes yeah and so even though you know it is outdoor storage so you're storing things outdoor

08:27out in the elements all that kind of stuff even though it is specifically outdoor there's always

08:31some kind of structure on it correct usually as i understand it you know i've never bought one but

08:36usually i understand that generally they have a warehouse on it you were mentioning 20 to 25 percent

08:41coverage so when you're looking to buy these kinds of deals um you're actually looking for

08:46warehouses with additional space so our company is looking for buildings on it every time that we buy

08:53it but there is a large uh portion of ios that's just purely yard so trailer parking container storage

09:00um uses like that just pure lay down yards for contractors so um sometimes they don't have

09:08buildings or sometimes they have very small like just office trailers that you bring on site

09:12but uh if you're buying service facilities that's kind of where you start going into like the smaller

09:19shop space with the yard that's what steel peak focuses on so we everything that we own and everything

09:26that we buy has some sort of building on it that's that's more functional than just like you know you

09:32brought on an office trailer and put it on on the site and do you do you generally have to change the

09:39zoning um in order to allow for outdoor storage if you're buying you know if you're buying a warehouse

09:44and it doesn't it's specifically for indoor warehouse space do you have to change the zoning or does

09:49industrial zoning generally cover indoor and outdoor so everything that we buy is is buy right zoning so it

09:57allows for outdoor storage already the to go get the zoning change is just too much it takes too long and

10:04it's not worth the risk yeah so we we don't take any zoning risk and uh yeah so you'll see in these

10:11markets and you can tell like generally where all of these industrial pockets are in these sub markets

10:18and then usually you'll see you know either they're scattered in between some of the bigger box buildings

10:25um you'll see some like smaller low coverage buildings with yard in there so you'll you'll be able

10:30to like see ios buildings on an aerial and then there's also like heavier zoned like the cities

10:36will have like places where they put the heavier zoned industrial there's always like a couple really

10:41heavy zones in most markets and then there's some lighter and general industrial zones but the heavier

10:47zones that's where like you'll see crazier uses like the big like cement companies asphalt guys like bigger

10:56groups like that that um the city doesn't really want near residential and they don't so they don't

11:05they don't really like these types of uses so sometimes those are on like the outer you know skirts of the

11:11industrial sub markets but you'll see you'll see them everywhere and in most general industrial zones

11:18ios does work but there's a bunch of nuances to the zoning it's that's a whole different kind of

11:24conversation yeah do you like um heavy versus light industrial zoning or does it not matter to you

11:31light industrial zoning typically doesn't work so it's usually like general industrial and up

11:37okay is what works the best yeah light industrial sometimes you can get away with like more of a

11:42parking use like a cleaner type of ios group like think like an enterprise rental car or something like

11:48that but um yeah we usually try to stay away from from the lighter industrial zones

11:53huh interesting um cool well let's talk about underwriting uh that's something i'm sure it's

12:00pretty unique to this uh this asset um generally what i don't know anything about underwriting

12:06industrial so you actually walk me through it what are you looking for what are the the key like green

12:11flags or what are some red flags that you see when you're when you're underwriting this stuff

12:14yeah so um we start out exactly what you talked about location is the property does it have a building

12:22um does it have excess yard is it under 20 coverage typically roughly 20 25 coverage and then if it

12:32checks all those boxes and it's in a market that we like that has good fundamentals uh then we go into

12:38um lease term lease terms really important well i guess zoning zoning has to check the box first right

12:46and then what are the existing lease terms everyone's different every investor is different we're value

12:52add driven investors so we're looking for deals that we can go and do improvements uh capex work and

13:01then release it at a higher rate than than where it currently is so a lot of the deals that we buy are

13:07vacant um we try not to buy deals that have yeah we try not to buy deals that have more than like

13:12three years of remaining lease term on them at the moment these are um i would assume these are all

13:19triple net type of leases yeah exactly yeah they're mostly single tenant triple net industrial deals or if

13:26they're not triple net we're gonna go you know release them and and we're gonna do triple net leases

13:32yeah so um yeah we look for we look for short-term leases and then um you just gotta know your data

13:40and you gotta have broker relationships and understand where market rents are and then figure

13:46out what what that's going to take you how much it's going to cost to get you to stabilization and

13:51we're looking to stabilize our deals within as early as like nine months if it's vacant um maybe even six

13:59ideally um if we can but usually construction takes a little bit and then uh when you're talking about

14:07value add um when i hear outdoor storage nothing pops to mind in terms of how i can improve this

14:13this okay yeah because literally it's just it's just you're storing things outdoors so what is the

14:19value add for an industrial outdoor storage so remember we're buying all stuff we stuff with

14:27buildings so you still got like a 20 000 foot building 10 10 20 000 foot building so i'm doing

14:32everything typical that you would to that building exterior paint lighting uh interior office

14:40improvements you know flooring carpet flooring restrooms paint whatever it is standard ti's

14:47um so you're doing all that to the building and then if the building isn't as functional as we want

14:55it we'll go punch in um additional like roll-up doors to into the building so that guys can drive

15:01through the building if that's you know if the site works for that um or if there's only like one

15:07door we're going to want to put like one or two more in because we know that's what our customers

15:12our tenants want um so things like that and then the yard you're either going to repair the asphalt

15:18you're going to re-gravel it maybe you're going to do some rough grading in certain areas new fencing

15:24lighting if that's needed um basically i'm assuming yeah i guess that's something the tenant would do

15:32we actually bring in security cameras to every site when when they're vacant um just for security

15:38and extra security as as we're like going through our lease up process and and construction process

15:44um as well so it's it's minimal though it's minimal we're not doing like a ton

15:50of capex that's one of the the benefits of of ios yeah yeah it sounds great um and you mentioned

15:58you know in the underwriting one of the things that you guys look for is you're looking for specific

16:03markets in a market you want um for industrial people that i've talked to before they generally

16:08want bigger markets they don't want like you know sub markets they want a dallas fort worth they want

16:15you know a seattle uh san jose whatever they don't want some podunk town um is that the same for ios you

16:23guys only want the bigger bigger cities or do you guys invest in smaller cities as well yeah yeah we're

16:28we're like major msas throughout the the western u.s so um we just handpicked like six to eight we're

16:37we're in we're in three markets right now but we have six that we really like and then we're probably

16:42going to move into like eight over the next year or two um but these are all like top industrial

16:49markets that have really good fundamentals major populations uh they're well they're well known

16:56markets for industrial yeah and what about um i mean let's take it down to like a cap rate basis what

17:04are you guys buying well if you're vacant there is no cap rate yeah exactly so we don't we don't buy

17:09on a cap rate we just solve to a return that is a spread over you know where we can sell it so

17:16ideally if hopefully we can sell it at a good cap rate and our return that we're solving to our return

17:22on cost is going to be over that and that's that margin is where we make our money and then every

17:27market has a different cap rate that you can sell it at so um your your return on cost changes depending

17:35on the market but that's that's how we're looking at these deals it's irr it's return on cost um we're

17:41actually underwriting shorter term holds than typical like three to five year holds some groups

17:46will do seven to ten year holds um but we don't we don't have like a fund where we have partners

17:53institutional partners um we're working with like family offices and groups like that and so um we're

18:01trying to add value stabilize and then either refinance or sell within like two or three years

18:06ideally and i know industrial had um you know it's had its 15 minutes of uh of fame there in you know

18:132021 to 2024 it was the hottest thing out there is that still the case is it still hockey sticking on

18:20all the way up or is it uh kind of stabilized now uh thankfully i'm in ios so it's a complete

18:26different story and it's different in every market actually um because there's some markets

18:33that have been hurt a little bit more than others like markets that are really driven to like large

18:38ports things like that where um during covid there was such little supply of land that these groups

18:46needed to park trailers on to get them into like amazon warehouses that rates just went ballistic

18:52and now uh that's kind of calmed down right so some of those markets aren't as good but there's other

18:59markets that are like more steady they're more focused on like construction for example uh is what

19:05we like but um yeah the the greater industrial market has been uh softening a little bit obviously

19:12since covid and um there's been a big price discovery there's been you know markets that have been

19:19overbuilt because developers were building as much as they could when rates were zero so um it's been

19:26you know it's been tougher for for different markets but uh from what i understand general industrial

19:32it's a different story but ios in the markets that that we plan has been has been really good like we see

19:39uh future rent growth we're doing you know leases that are at big numbers um we're executing our

19:47business plan so we we're still really bullish nice i love it all right well we have run down the clock

19:54we're running around the 20 minute mark right now but before we move on i always like to ask what's

19:58the horizon looked like for you guys um what's your what's your future goals yeah um we've got a lot

20:05of them we've got we've got some lofty goals um we we're hopefully looking to um become a big

20:14player in this space on the on the western u.s uh there's not a lot of guys on the west coast that

20:19specialize in just ios we don't buy anything else but ios so uh we want to become a group that is a

20:28contender and uh we're looking to purchase more quality assets that have you know smaller buildings

20:36with excess yard in these markets so if there's any brokers listening um we're playing in seattle

20:43salt lake denver um southern california um markets like that so um we want to become the top buyer

20:52in those markets ideally for this type of product and um yeah that's that's our goal we're looking to buy

20:59roughly um 500 million of this stuff over the next few years is is what we want to do so we're

21:06aggregating uh a big portfolio and um we want to grow our team as well and so it's exciting stuff

21:13nice man well i love it all right with that i'm going to move us on to the quick question round

21:19are you ready yeah let's do it it starts with education it could be any form it could be a conference

21:25you've gone to a mentorship program you've been a part of a movie you've seen anything i just need

21:30two recommendations one for general life wisdom and then one for real estate general life wisdom

21:37i hired a performance coach mindset coach uh like four or five years ago that i've been with

21:44i highly recommend everyone go get a coach if they can uh go check out jason trees coaching.com

21:52uh i'm not paid to say that but uh those guys have really helped me out like in my career

22:00personally professionally um more more so like life more so mindset um and so i i really like before i

22:10ever became you know an investor or or even thought that i could do this it was like the mindset stuff

22:17first that that i had to dial in so that was the biggest it's unique so that's a there are

22:23performance coaches not specifically business not business it's just performance so it's it's mainly

22:29based off of mindset um yeah jason trees is like the head coach he actually wrote a book that's really

22:36good about mindset and uh so i would start there like read that book and then you know i'm sure there's

22:42there's other coaching groups like um similar to like tony robbins type coaching um but a little

22:49bit different um so that that's been probably one of the biggest factors for me in my life nice how

22:57about for um business or real estate for real estate i think mentors is the number one read as many books

23:06as you can i i when i got started in real estate i i told myself that i had a rule where i have an

23:14unlimited budget for books and for courses for real estate and so if i like on a podcast like this if

23:20someone tells me about a book and i i think it's interesting i'll look it up and i'll buy it

23:25immediately while i'm like driving whatever i'm doing and so i've read you know hundreds of books over the

23:33last couple years just because i was like i will not have a budget on investing in myself and because

23:38that's the biggest return that you can get is is investing yourself so um get a mentor ideally

23:46someone that's in your space doing what you want to do if you have to pay that person to learn from

23:53them like college is good i didn't learn anything in college that i'm using right now i mean the social

23:59skills the social skills are good right i'm not i'm not using anything that i learned in like my

24:04finance classes or anything like that i may i'm probably using a little bit of my marketing uh in

24:10my entrepreneurship classes that i took but um even like some of my buddies that are getting their mbas

24:16in real estate um or their masters in real estate it's it's different you got to go out and you got to do

24:24it and you got to take action in real life and you need you need someone to like cover your blind spots

24:29too so the biggest thing that we've ever done is like even though we're a small company and we're

24:34just getting started we had someone tell us early on go get build a board of advisors

24:42and for your company even though you guys are young like this is what i wish i would have done

24:47when i was younger and just start my company you guys need a board of advisors even if it's only two

24:52or three guys whoever it is guys or gals um it's going to be a huge difference maker for you and so

24:59me and my business partner we did that and we have like a you know internal advisory board and it's a

25:06really badass guys on that that have sold huge companies they've done what we've done

25:11and they want to give back and they want to help people that were in their position so if you

25:16if you put yourself in that position you just ask um the return on that is like infinite you know what

25:22i mean these guys don't want to get paid they just want to help the younger generation so um that would

25:29be my biggest advice i don't even have maybe a specific book but like just that general uh take

25:37that kind of stance and change your mindset like that and and that's that's been really beneficial

25:42that's actually you're the first person to recommend that build a board of advisors and i

25:48think that is really uh is a very good advice because uh like you said you don't know where

25:54your blind spots are because they're your blind spots you don't know the things you're missing

25:57the only substitute for i mean there are there is no substitute for experience and somebody who's

26:03been through it who understands you know the highs the lows they've they've built their company

26:07is uh it is invaluable to have them on your team so if you build that board of advisors

26:13they can shortcut your uh your trajectory to you where you want to go yeah i'm really good with this

26:18yeah like i mean our every everyone we use on our team now is like come from a referral so

26:24um and they're your board of advisors they'll refer you your attorneys they'll refer you everyone so

26:29that's i mean it's huge nice i love it man yep all right next question is for your younger self

26:36let's go back to the blake who was uh still out at u-dub go back to him look him in the eye give him

26:41one piece of advice moving forward um man

26:47well if the blake at u-dub is different than the general probably your audience the blake at u-dub was

26:56you should stay and keep playing football at u-dub but uh the i guess the advice i would give is is um

27:06it's get it if you're in college get an internship right now no matter what you're doing if you want

27:15to transition into um commercial real estate let's say even if you're a broker and you want

27:19to get into investing you got to go like go work for someone for free for a little bit or shadow them

27:26show them that you're like willing to do that it's a really huge gesture

27:32and most of the time if you do that for someone they're going to refer you to someone until like

27:38you're going to get a job no matter what if you do something like that so the biggest thing is i think

27:44and i tell my little brother this he's he's a he's a lot younger than me um he's in college right now

27:49and i'm having him shadow me as well and i'm like you got to get as many internships as you can

27:56right now and so that's the biggest thing is you just got to get out there and start doing it and

28:03just learn trial by error and just get in the game that's the biggest thing just get in the game and

28:07don't be afraid to to fail that's one thing i uh i wish i had done um well i mean you know hindsight's

28:142020 but getting a job in you know the type of asset that you want to get into if you want to buy

28:20industrial if you want to buy self-storage mobile home parks whatever getting a job at one of those

28:25companies it could be doing anything absolutely anything but just being in that environment um it

28:30will shortcut your learning curve more than you think um so yeah that's that's really good advice

28:36uh i'm gonna move us to the next question this is about the u.s uh you've mentioned a few metros that

28:42you guys are invested in i'm gonna ask you to choose your favorite child and um whittle it down to

28:48your most the metro you're most excited about investing in today uh

28:54yeah i can no longer gatekeep it san diego is the best uh the best market but it's i'm i'm biased

29:01though that's that's our home market um it's just the market that we we know the best but um it has

29:09really good fundamentals for what we do if you're doing multi-family it's a great market uh it's a

29:15great market for self-storage any mark any commercial real estate that's driven more so by like population

29:21and like we have people moving here from la people moving from san francisco like although a lot of

29:28people are exiting california san diego is like a great little pocket where um it's still an incredible

29:34market um so and it's beautiful and it's beautiful it's land constrained is the best part about it so

29:42supply is you know there's barriers to entry and um you can't just build unlimited product and so um

29:53it's it's a unique market we love it nice all right next question is about finding deals it all starts

30:00with uh generating leads and getting in contact with the seller so what is your favorite way to

30:05find new deals my favorite way is to find guys who were me before i came over to start this company so

30:15i find the brokers at these shops that specialize in the product that we buy and guys that are doing

30:22you know the most deals in this space and that are taking it seriously and that are passionate about

30:29it so but our our main source of business is brokers they're really like the lifeblood of our business

30:36and both myself and my partner we were commercial brokers in different capacities um but we're you

30:43know we would love if brokers invested in our deals with us um we like we need them for off-market

30:51opportunities and then we use them to lease up our deals as well the guys that usually

30:55um help us buy it we'll keep them on for the leasing and hopefully they can help us

30:59sell it as well so um we get a lot of our market uh most of the seller relationships

31:06uh are controlled by brokers so um it's it's all about that yeah i feel like industrial is kind of

31:14unique in that sense where i've never spoken to somebody in that area who does a lot of off-market

31:20lead gen like you know sending sending mailers doing cold calling everybody

31:24goes through brokers um and i feel like that's unique and industrial um which kind of makes

31:29sense there's a lot there's a lot fewer industrial properties than there are you know multifamily or

31:34self-storage or whatever um and i'm sure the the brokers that are out there you know they have a

31:39relationship with these with these sellers so it makes sense that you're you're talking to the

31:43brokers more so than you're talking to the sellers there's there's so much money in commercial real

31:48estate brokerage like these guys are like very high level um and they're making a lot of money

31:53so they take their job really serious and they're not going to let someone come in and you know build

31:59a relationship with their guy so they control a lot of the sellers in these markets um because

32:08you know they're they're so highly motivated um i guess going back to that other question like go

32:14become a commercial real estate broker like that is one of the best things you could ever do is start

32:18out as a broker and then do whatever you want to do after that there you go all right moving on this

32:24is about lessons learned not every deal that we get into goes the way we expect it in fact most times

32:30if not every time something goes wrong and that's when we get to learn a lesson so what was a deal that

32:35went a little sideways for you and then what was the lesson you pulled from it

32:39every deal goes sideways we we have a saying uh if the deal doesn't die at least twice it's is it

32:47even a deal um or are you the guy that just you know you're paying more than everyone or you or you

32:54you didn't find what was actually wrong with it and now you're you're stuck with it that's always my

32:59fear so i need to know what's wrong with the product like if it goes too smoothly you're kind of scared

33:03you're like what's going on here um but uh i mean as as an example we're doing a deal right now

33:11um where the city has just lost the certificate of occupancy for the building so it's just like

33:18and the seller doesn't have it the city doesn't have it um so like we're in escrow and we can't

33:27really buy this thing until we know that the building was built to code and so we have to go

33:32run this whole process and so just learning things like that like different cities care more so about

33:39stuff like that um like a huge lesson learned is don't try to do everything yourself in in due

33:47diligence hire professionals spend the money um like we don't we use as many third parties as we

33:54can like zoning reports um pcas so um inspections environmental reports like you got to do it all

34:04especially if you're raising outside capital like you have to know like you need to make sure that

34:08the deal is de-risked and you got to protect your investors capital so like that is like a very

34:14crucial component like don't ever try to skip over anything like you gotta you gotta do it all very

34:20thoroughly yep yep you make your uh you make your money on due diligence um because you know if you

34:26don't follow your checklist to the to the point then uh you know things can go wrong they will go wrong

34:32because things always go wrong but when you when you figure it out in due diligence that's when you can

34:36actually take action and uh and rectify things before they come turn into a real problem so try

34:43to control as much as you can there you go all right that leads us to the very last question this

34:49is for the listeners you've given us a lot to think about i'm sure people want to reach out get in

34:53contact with you um this is a two-parter where can they find you and then what can they expect when

34:57they reach out yeah sure um i love mentoring like guys and gals who are trying to get into the space

35:06and uh who want to learn commercial real estate brokerage or investing so um i'm always happy to

35:14chat and uh and or meet for coffee whatever it is so i love because there are so many uh people that i

35:21had met with that gave back to me and that still do right now um so you can find check out our website

35:28steelpeakproperties.com steel like the metal peak like the mountain properties.com and then uh you can

35:36just connect with me on linkedin too i'm pretty um i'm on linkedin and so shoot me a message on there

35:42and i'll normally respond uh to those as well so uh yeah perfect i will put that link in the show

35:52note so if you guys want to reach out to blake all you got to do is click the little more in the

35:55description it's going to pull down that full description and in there you can find his links

35:59all right man that wraps it up thank you very much for hopping on the show yeah i appreciate you

36:05man thanks for having me absolutely for everybody who's with us today thank you guys for showing up

36:10you are the reason we do this so if you guys have any questions reach out to me gabe at the

36:14realestateinvestingclub.com if you guys want to support the show just leave us a review other

36:18than that i hope you guys have a great week keep rocking real estate and i look forward to seeing

36:22you on the next episode

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