Mastering Industrial Real Estate with Shannon Robnett

Passive Wealth Strategy Show - Real Estate for Busy Pros

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

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