#266: How to Invest in Commercial Real Estate & How it Compares to Owning a Business

September 16, 2021 01:05:38
#266: How to Invest in Commercial Real Estate & How it Compares to Owning a Business
Intentional Growth
#266: How to Invest in Commercial Real Estate & How it Compares to Owning a Business
/

Show Notes

My guest today is Mike Sowers. Mike rehabbed, flipped, wholesaled, and rented over a thousand properties in his first decade of investing, He was on the podcast sharing how he sold his residential rehab company for millions of dollars and all the things he learned (before and after the sale). Hegot involved in commercial real estate investing after selling his business and has done over $150 million in real estate transactions.

As the CEO and founder of Commercial Investors Group, author of Commercial Real Estate Investing, a step by step guide to finding and funding your first deal and the host of the Creative Commercial Real Estate Podcast, I thought he would be a wonderful guest and could give great insight on his process for investing in real estate. In fact, he has a 7 step process commercial real estate investing and he happily delves into that as well as his comparisons to investing in commercial real estate and viewing your company as a financial asset. Namely, how to view them both and how to grow value.

Mike is the real deal. This is not some BS fluffy episode about theories. He has real live stories from things he’s done and that are super actionable. He hands out tips that he has learned from his experience and shares stories about his journey into real estate.

 

What You Will Learn In Today's Podcast Interview

 

Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

 

About the Guest:

Mike Sowers rehabbed, flipped, wholesaled, and rented over a thousand properties in his first decade of investing, but decided he was ready for something bigger. A LOT bigger. So he sold his multimillion-dollar remodeling business, modified his residential investing system for commercial use, and added an extra digit to every deal.

As of Today, Mike has done over $150 million in real estate transactions. He is the CEO and founder of Commercial Investors Group and the host of the Creative Commercial Real Estate Podcast. He cracked the code on how to automate a commercial real estate investing business and his team has done some mega deals netting multiple 7 figures per deal. He gives you the exact strategy he uses in this book to consistently generate off market deals and fund them by structuring equity partnerships to split the profits.

 

Quotes:

13:49  - “Most people know about depreciation. I find that a lot of people don’t know about bonus depreciation.” – Mike Sowers

16:17  - “You can participate in different forms, whether you’re super active or passive, but it’s about understanding the game and I think entrepreneurs like to participate a little more than handing over a little over a portfolio to a Schwab account and having no control.” – Ryan Tansom

46:33  - “So after the funding, you’re basically underwriting the deal, raising the equity, and you’re raising the debt.” – Mike Sowers

58:08  - “The last thing you need is to attend another seminar or read another book to get you excited. You’re either already excited or you're not. What you need to do is figure out if you’re an active or a passive investor.” – Mike Sowers

59:17  - “One of the hardest things for people to do, when they get started in this, is to walk through a property and put together a scope of work and a price.” – Mike Sowers

 

Links and Resources:

Mike’s previous episode, “Rebuilding with Purpose

Mike’s email

Free PDF of Mike’s book, Commercial Real Estate Investing

Commercial Real Estate Investing: A Step-by-Step Guide to Finding and Funding Your First Deal” by Mike Sowers

Mastering Your Cash Flow Digital Course

ARKONA Boot Camp

Reach out to me if you have questions about the boot camp!

You can also reach out to me via email at [email protected], or on my LinkedIn.

 

Episode Transcript

No transcript available...

Other Episodes

Episode

February 22, 2018 00:56:00
Episode Cover

Do Nothing & Take Control of Your Business and Life

My guest today is Rob Dube. Rob has been a successful businessman since high school. He and his business partner have been running their businesses together ever since. Now Rob is the president and co-founder of imageOne. imageOne is a print managed business that began as a toner cartridge refurbishing company. It has since become one of the top companies in the Top 25 Small Businesses in America on the 2017 list of Forbes Small Giants. Rob has developed a strong relationship with his employees and himself through the practice of meditation. Unlike most of my guests, Rob sold his business in 2004 and bought it back in 2006. During today’s episode, we discuss why Rob bought back imageOne and how he runs it better now. We also discuss Rob’s new book, Donothing, and his journey to discovering the benefits of meditation. Rob has developed a constructive relationship with numerous business leaders, including author Bo Burlingham. Bo is a wise business writer who has helped many business owners build better companies. Rob shares how Bo’s work has helped him restructure his business and personal life.  Rob has figured out how to fortify his business and business culture, if anything can be taken away from this episode, it’s business is a constant learning experience. You will learn about: Rob’s early business experience. The bumps and setbacks along the way to imageOne. How Rob was able to find his company’s focus. The events that led up to the 2004 sale. The reasons why Rob and his partner bought imageOne back in 2006. How Bo Burlingham’s book Small Giants helped Rob restructure his company. The ...

Listen

Episode

February 22, 2017 00:49:04
Episode Cover

Scale Your Company and Sell It

[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text] We have a serious high achiever on the podcast this week – a man who managed to buy 11 companies (one in just three days) and sell his own $42 million company in just six weeks. After moving back home, Terry Lammers bought the family wholesale fuel and lubricants business. He became prolific in the marketplace by then buying up more and more of the competition. You will not find a man more experienced in the game of M & A… If you listen, you will learn… Tricks to avoid nasty taxes in a sale What you need in place to be able to sell a company in just six weeks The benefits of recurring income How Terry used the power of the Value Builder System without knowing it How best to tell employees you’re selling up How to use non-compete clauses The importance of advisors Where did Terry find the 11 competitors he bought along the way? Terry knew that in the limited area he did business, there was only a finite amount of competition and business to be had. He was always on the lookout for people that were trying to find a way out. Terry knew that once the competition was actually ready to sell, he had to jump on the opportunity. Some of the acquisitions were a bit more cumbersome and hairy (like the deal Terry explains went bad after the kind-hearted man went back on his word). However, most of the businesses that Terry bought had returns that the best of us could only dream of! How were most of the deals structured? Terry had a knack for knowing exactly what a business was worth to the seller and how to make it a great deal for both sides. He ...

Listen

Episode

January 22, 2020 NaN
Episode Cover

#181: Selling a Company Twice: Once to a Strategic Buyer & Again 10 Years Later to a PE Firm

80% of deals that go to market don't close. Gayle McCann defies all odds by selling their firm two times and to completely different buyers... and neither of the exits were planned.  Out of the blue offers happen all the time and the chances it works out as planned are very slim. This episode is a story about two out of the blue offers and how all the stars align more than once.  Gayle shares what she and her husband, Pat, learned through each of the exits and what the process was like. In addition to that, Gayle and I talk about the different kinds of people it takes to run, sell, and buy back a business, and the different strategies Gayle and Pat used when they were running their business together.  Tune into Gayle's journey on what it's like selling the same company to two different types of buyers. The more stories you hear of how people have grown and exited, the more you'll be able to intentionally grow your company with the end in mind. What you will learn: Gayle’s history and background How Gayle and her husband started and sold their business the first time to a strategic buyer What their attorney included in their sale agreement that allowed them to buy back the company four years after they sold it How Gayle's professional advisors structured the deals Stories on what it was like merging three agencies that were bought by the Private Equity fir What it's like working with three other companies and CEOs post-closing How Gayle and Pat were able to maintain a health marriage while staying business partners The differences between a Strategic Buyer and a Private Equity Firm exit Gayle’s experience, transitioning out of the business and handing off her role ...

Listen