Episode Transcript
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Speaker 1 (00:00):
Welcome to the Business Happy Hour radio show with your host,
Frank the Bank Koto, president of Lincoln Lending Group and
eight one three Mortgage for twenty years right here in
Tampa Bay, joined by his incredible co host Rosa Bahiti
and Sinia Akishna, top producing real estate agents with Mahara
and Associates. These three bring nearly five decades of experience
(00:21):
in the local real estate market. If you're looking for
real estate or business advice, no matter what your experience level,
the Business Happy Hour team has been there for you
for almost a decade right here on NewsRadio WFLA. Now
sit back, relax, and get ready for some serious real
estate and business talk with three of Tampa Bay's top experts.
Speaker 2 (00:40):
Here's Frank the Bank. Hey, Tampa Bay, welcome back to
the Business Happy Are, your number one show for all
things business and entrepreneurial. I am your host, Frank Thebankkoto,
the owner of Lincoln Lending Group and eight one three
Mortgage dot com and most recently Reverse Guru dot Com.
That's right, guys, stop spending all that holiday money unless
(01:00):
you have enough equity in your house and you're over
sixty two and you don't want to lose your house.
You can get a reverse mortgage from yours truly. Go
to reverse guru dot com and check it out. It
is going to be an exciting show today. As promised,
we brought back an old guest from two weeks ago,
mister mac Autrey from Outlier Group. How you doing Mac?
Speaker 3 (01:20):
Great? Thanks for having me back on.
Speaker 2 (01:22):
Your second time on radio right, absolutely.
Speaker 4 (01:24):
Thanks for coming back.
Speaker 2 (01:25):
I thought you bailed. He did, he bailed and got
all that turkey. Good excuse little Thanksgiving we ran. I
can't remember what show we ran as our rerun last week.
I think I did think we reran Mac again.
Speaker 5 (01:39):
Yeah, so technically was my third time.
Speaker 2 (01:43):
I guess he does get credit. And don't forget my
amazing co host, Sennya Akesha. How you doing sendio?
Speaker 4 (01:48):
Hello, Hello, wonderful.
Speaker 2 (01:50):
Did you have a good Thanksgiving?
Speaker 4 (01:51):
I did?
Speaker 2 (01:52):
I heard you and Ray went out and did something fun.
You guys did a little family Thanks you doing this traditional?
Speaker 4 (01:56):
Yes, family Thanksgiving and at a rest so you know,
we all just get to mingle and you know, the
food gets brought, the drinks get brought.
Speaker 2 (02:04):
So yes, my wife has been begging and my mom
for that for years and years and maybe one day
I will do it. But it's just like, I'm like,
you know, every year, we only get together twice a year,
Thanksgiving and Christmas, and we only cook one big meal
together as a family twice a year. So I'm like,
come on, Mom, I'm like, come on, like I cook
(02:25):
the turkey. You know, it's like, you guys just got
to do the side. She's like, well, I'm standing up
all day doing the sides. I was like, and they're good,
they love them. So anyway, we're not gonna tell my mom,
who's probably listening now, that other people go to restaurants
for Thanksgiving because I told her everything's closed. Uh Cinya
with Mahara and associates. If you guys need a realtor
(02:45):
a real tour, I get in trouble sometimes. What do
you think of that? By the way, realtor versus real
tour do you even?
Speaker 1 (02:51):
Yeah?
Speaker 2 (02:52):
Yeah, that's the way I can, right Anya.
Speaker 4 (02:55):
You know, I got so many different pronunciations there, so
real tour realtor does not good.
Speaker 2 (03:00):
Point. You're like, nobody even pronounced my name right, so
I could care less if they say realtor or a realtor.
Now I actually did have an agent one time like
totally chastized me into the front of a room of
like eighty people and they're like, we are real tours,
we are not realtors, and I'm like, damn. So from
then on I try to be more correct and say
real tour, but I think realner sounds better. To be honest,
(03:22):
I just off the what do you say, real estate agent?
You know what, That's a good work around right there.
So every week Senya from Maharan Associates brings us statistics
and this is the month we've been waiting for. We've
been talking about what's gonna happen from October to October
for the last probably three months, right, or maybe at
(03:43):
least a couple months. We've been saying, well, where's the market.
We were saying, oh, it's getting better, and then we
had these hurricanes come through and the question is how
did it affect our market? And we might not even
really see until next month, you know, do you get
another one? But Senia I told her not to tell
me any of this before the show because I wanted
to react naturally. So what happened? How were looking over here?
Speaker 4 (04:05):
I mean, it's it's actually the closed sales because I
mean when we did the September numbers, okay, those were
you know, significantly down in that September to September of last.
Speaker 2 (04:15):
Year on closed sales.
Speaker 4 (04:17):
On closed sales. Okay, so for closed sales for October,
actually those numbers look better than Septembers really for our MSSA,
which is the market statistical area you know, Hillsborough County, Penela's, Pasco,
and Hernando, it's down nine point four percent total.
Speaker 2 (04:34):
Nine point four October at October.
Speaker 4 (04:36):
Yeah, September was down seventeen and a half percent. But
what I did see interesting, which I think we'll see reflected,
you know for November numbers, is that our pending sales
were down significantly are pending, so that means people are
going under contract, which I get it, you know, with
the hurricanes and everything, it just we think of it
(04:57):
as we pretty much just lost a month of activity.
You know, people were busy prepping for the hurricane and
cleaning up after the hurricane. Yeah, so just not a
whole lot of things going on. I'm sure people weren't
really showing houses. No, So yeah, those numbers are down
for the MSA, so it's down eighteen point three percent.
Speaker 2 (05:18):
Oh, I mean, I mean it could be a lot worse.
I listen, I'm a positive pony over here, right, But
we can hate that. But anyway, somebody calls the kid's school,
they say that crap all the time. But I guess
I am a positive pony because that doesn't sound as
bad as I thought. Yeah, I mean, looking at where
our applications were in the month of October and where
(05:38):
the closings are so far, you know, well what we
have on books for November, I saw a bigger decline.
I saw more like a fifty percent decline. So I
was ready for you to tell me that we were
worse than a fifty percent drop from last October to
this October. So one of two things happen. Either people
were not as scared from the hurricanes as I thought,
(05:58):
or man, we had a crappy October. Last October is well,
last October was it?
Speaker 4 (06:03):
I mean, as you will remember, I mean last year.
I think our own August is kind of when things were,
you know, stagnating.
Speaker 2 (06:09):
Yeah, well, I remember I listed this house for sale,
Oh yeah, and gave us God even Cinia knows the address.
It's like I want to shoot myself with this like it. Yeah,
we listed it, I think in like July, and then
literally the market fell out, and you know, I was arrogant,
and which here's a lesson to sellers. If someone offers
(06:31):
you close to the amount that you wanted, here's a
great piece of advice. Take it. Take it from a
guy who lost forty two thousand dollars on a flip Listen,
you don't win them all. And this could be part
of a conversation we'll have today together. You know, two
awesome agents in here in one mediocre mortgage guy. You
don't win them all. And the reason I didn't win
(06:52):
on that sale is because the market fell out from
under me, and I didn't believe that it was going
to be a continued thing, and I did not take
offers that were probably let's talk percentages. Like if you
list a house for four hundred thousand and somebody makes
an offer to you of or three hundred and eighty
thousand dollars, well, that's only five percent off of your
(07:13):
listing price. But a lot of time sellers or buyers
they look at that and they're like, oh my god,
that's twenty right, that's twenty thousand dollars. That's crazy. Well,
if you reject the offer at three eighty and you
end up selling it, let's just say at three hundred,
that's twenty five percent, right, So I would have much
rather lose five than twenty five.
Speaker 5 (07:35):
Yeah, my old broker used to say he would he
would say, well, before you reject the offer, would you
sell your property for the price you're rejecting, Because that's it,
that's exactly what's happening. Basically, you're you're giving you're taking
buy the property, You're purchasing the property back.
Speaker 3 (07:51):
I have that contract.
Speaker 2 (07:52):
Oh I see, yes, would you buy it at that price?
Speaker 5 (07:55):
And so it's like, you know, so essentially, if you're
if you're walking away from a deal, you know, if
it's three fifty and you're walking away from it at
you know, three twenty five, you're basically taking that property
back at three twenty five because you could have just
you know, you could have just had that deal.
Speaker 4 (08:10):
That's a good way of looking at it.
Speaker 2 (08:11):
Yeah, yeah, that is where the hell were you about
a year and a half ago, Mack, golly, I just
met this guy with this advice over here. No, but
I mean, this is this is great advice and what
do y'all think about going into the holiday season. I
want to get both of your perspectives on because I
tell you, when I go out in the in the
real real tour community, I hear polar opposites about what
(08:35):
we're going into with December. You know what, I'll start
with you saying, ladies, first, I mean when you think.
Speaker 4 (08:40):
Of December, For one, I think if you take the
country as a whole. You know, we live in Florida, right,
so I don't think seasonality here as you know, as significant,
you know, and parts of the country weren't snowing and
so cold, and people really kind of hunker down and
just you know, do the holiday staff.
Speaker 2 (08:55):
Good point, but I mean obviously, yes.
Speaker 4 (08:58):
You know, the fourth quarter is typically you know, our
slowest quarter, so you know, people kind of what do
you think the busiest quarter is spring?
Speaker 2 (09:05):
Spring? That's why I would present.
Speaker 4 (09:07):
So the second quarter, yeah, March, March to June, that's
the hot time of year.
Speaker 2 (09:12):
So I totally agree with that. Mac. What do you
think And I know you're mostly commercial, but you can
still give us your opinion on how does December look
with the real estate that you sell?
Speaker 5 (09:21):
Uh, typically we see we see a decline in business
in December, you know, in terms of transaction volume, right, So,
and I think that that's more emotionally driven than anything else.
So a lot of the a lot of these companies,
these uh PE companies and investment companies, or even the
small family groups that are looking to purchase as soon
(09:43):
as that. This could be purely my opinion, but when
that Christmas music starts playing in mid December, anyway, everything
everything turns to retail. So retail does really good, but
only in the terms of sales of their products because
everybody just s turns to Christmas shop and and take
can get easy, you know.
Speaker 2 (10:00):
Dude, Mac I was in. I was in. I was
Walmart or home Depot, both in late October and Christmas crowd.
This guy said, Christmas music starts in December. I was like,
where do you live. Yeah. I was like, they know,
they start paying it early. Oh my, it's every year.
Am I crazy?
Speaker 4 (10:15):
It's like no, And I feel like it gets actually
earlier every year too. I'm like, oh my gosh.
Speaker 3 (10:20):
Yeah.
Speaker 2 (10:20):
I was literally trying to get some discounts on Halloween
stuff during around Halloween, and dude, it's like and all
the ground, like I don't want Rootolf unless he's a
skeleton anyway, and then we try to leave that skeleton
in the yard and do the Santa thing. Yeah, bad idea.
So anyway, Yeah, those things don't do well in your
sprinklers and all that stuff. Anyways, I note so statistically,
(10:42):
I'm I would like to go on a limb and
we're talking to our buyers right now. I feel like
it's a good time for buyers in December because you
have right, yeah, definitely right, less competition and if a
seller is listing in December or or around there, they're
probably pretty motivated, right because I mean you two would
probably tell them how you need a little bit more time,
(11:04):
you know, or wait, wait until January or February or
something like that. Let's se weve got a minute left.
So how do you think the holidays translate into the
beginning of the year. What do you think, Senia? Do
you think do you think it's like an overflow, like
people don't start buying until late January, or think in Florida.
Let's think Florida, not in North Dakota.
Speaker 4 (11:21):
I think there are those that do try to actually
rush and close before the end of the year. Yes,
and then there are those you know that take their time,
you know, look and find something, and you know.
Speaker 2 (11:32):
Yeah, shop over the house because I think it's a
good time to shop. You got off work, you got
time with a family, you can go out and look.
Sellers are motivated. If you're shopping in December, you're gonna
have less competition. But to your point thirty seconds, why
do people want to close before the end of the year.
Go Why for the homestead of gignplanes That's it. She's like,
there's gotta be a trick question. No, it's a homestead
(11:53):
exemption because if you close by the end of the year,
then you get the lower tax rate with the homestead
exemption for the following year. But you have have to
close by December thirty first. And guess what, there's time.
You're gonna call Senia at.
Speaker 4 (12:04):
Oh eight one three seven five five.
Speaker 2 (12:07):
Reel seven five five reel. She's gonna find you the
real house. I'm gonna find you the real mortgage. And yes,
we're gonna close you before December thirty first, right here
on the Business Happy Hour. We'll be back in just
a minute with macawtry from the Outlier Group.
Speaker 1 (12:19):
Now We're back with some serious real estate in business
talk with three of Tampa Bay's top experts, your host
of the Business Happy Hour, Frank the Bangkoto, Rosa Bahiti,
and Senia Asha.
Speaker 2 (12:30):
All Right, Tampa Bay, I'm having too much fun on
the Instagram. There's a Rosa she is what are you
in the elevator? She's in the elevator. I think somehow
at the iHeartRadio buildings. I know, I thought it was funny. Well,
I saw her little invite and I'm like, I'll put
her on the air. Let's see what happens where she
look at her. That is iHeartRadio, guys, and you're checking
(12:52):
it out right there feathers out perfect that a balloon thing.
Not really sure that that caught the image of the
iHeart symbol. That well, I walked down here and you're
still working on it. Oh, good point, good point. I said,
what is that?
Speaker 1 (13:03):
Effen?
Speaker 2 (13:04):
I was wondering.
Speaker 4 (13:05):
I'm like, nunatil you said that. I'm like, what is that?
Speaker 2 (13:06):
I mean, like, well, I got out the elevator, lady
was set up. I'm like, what is that supposed to be?
Like it's supposed to be the iHeartRadio Some I'm so
little balloon Christmas.
Speaker 4 (13:15):
Trees though those are cute. I'm like, I'm gonna have
to go on Amazon and see if i can find
me some of those.
Speaker 2 (13:20):
You know, wait till tomorrow to the Christmas party, because
a lot of times those things just float away.
Speaker 3 (13:24):
I love that she's panning to all the Christmas stuff.
Speaker 2 (13:26):
Oh look, there's giving.
Speaker 3 (13:27):
The viewers a tour.
Speaker 2 (13:28):
So for you Instagrammers, you get to see a tour
of the studio. And here's Rosa Ahiti. How we don
all right, Welcome to the show.
Speaker 1 (13:35):
Kai.
Speaker 2 (13:36):
So we're in the second segment. Here we've got Mac
Autrey from Outlier Group and Senia Kenny Senya Ake should
not say I'm making stuff up with Mahara and associates. Senio.
If they need real estate, they're gonna have to call
you at eight one three seven five five reel seven
five five reel. That's the way we're gonna get in
touch with Sennia to find out what you can qualify
for on the residential side. Today, as promised a couple
(13:59):
of weeks ago, go or even last week, again, we're
going to learn about commercial real estate. We've got some
questions for Mac that we want to learn a little
bit more about what the differences are. We were just
talking about the market, if it's the right time to
buy or not. You know, a very rich guy told
me way back in the day. I won't use his
name here, but he said, we were talking about timing
(14:19):
right and and and you know, hey, when the time
is right, I'm going to do this. I had a
real tour say this to me yesterday. He goes, I'm
going to introduce you to this person when the time
is right. And I wrote back to him, I said,
you know, a very rich man told me once there's
no such thing as the right time. There's only right
now right.
Speaker 3 (14:33):
So great advice.
Speaker 2 (14:34):
It is great advice, and and I think it teaches
in a way stop procrastinating. You know, there's nothing you know,
it's not like you know, you're you're playing an NFL
football game and you know you have to make the
throw at then the next three seconds or you're going
to we're out of timeouse. It's not like that in
the real world. So it's just it's just Another guy
wrote a book speaking of called start Ugly. Chris Kremitzos.
(14:55):
We had him on the show many years ago. It
goes hand in hand. People think they got to do
things per they don't. The people who think they got
to do it perfect and never start are never going
to win. Just start ugly and get it done. And
he was like, you do that all the time, don't
you anyway, So Rosa, welcome back to the show. How
(15:16):
you doing over there? Got your mic on? She has
her chair so low, like literally you can't even see
your eyes. So before we get started with Mac, and
we do have some questions for him, Rosa, how was
your Thanksgiving friends Giving? Pot luck dinner?
Speaker 6 (15:31):
Everything was amazing. Friendsgiving was great.
Speaker 7 (15:34):
I had it all catered and my girlfriend who has
a catering business, came out and took care of all
the food.
Speaker 6 (15:39):
And then I had my bartender.
Speaker 7 (15:41):
Out so it was hands off for me so I
could actually be present and enjoy my time. And I
had my photographer there too. Your multicultural yeah, my second part.
Speaker 6 (15:56):
So that was great. And the Persian dishes were amazing.
Speaker 7 (16:00):
We had lamb and we had a Persian salad and
a Persian rice that has saffron and chicken and burberries.
Speaker 6 (16:08):
I think was in it.
Speaker 2 (16:09):
Burberries. It was really good, sounds great.
Speaker 3 (16:11):
I always just thought those were jackets.
Speaker 2 (16:13):
Yeah. I was like, I got a sweater that, like,
is that a six hundred dollars T shirt?
Speaker 1 (16:18):
That?
Speaker 2 (16:19):
It's a very How was the okra? Did you end
up eating the okra?
Speaker 6 (16:22):
Yes?
Speaker 7 (16:22):
And then we had some gumbo yesterday. I haven't tried
it yet. We got to bring you some.
Speaker 2 (16:27):
Too, Yeah, the gum and listen, I'll be honest, I
failed you today. Guess what came out the McRib? The McRib?
Did you hear the joke? I remember, ladies have never
eaten a McRib And I literally was in the drive
to McDonald's the other day and I was like, oh,
I gotta get them. At my wife's like, why are
you going to get that? I go because Rosa and
Sanny I have not eaten a mc rib And she's like,
(16:49):
where are they from Russia? That's the joke, but this
one really is from Russian. Oh my god. The guy
got called a Russian this morning at the Little later
Sta cafe. I was eating and they're arguing about Trump
and Democrats are rebull again and one guy calls the
other guy a Russian. I was like, I was like,
I know a Russian anyway. Oh God, I love this,
(17:09):
so let's see. How about stats any other stats that
we missed out on. I know you do a lot
of stuff. I don't want to cut it short. Anything
else that we have.
Speaker 4 (17:15):
Well, the one thing I do want to say is
and actually pivoting back to you know, your Davis Road
sale and the five percent you know off when you
look at it like that, And I wish sellers would yeah,
because I am in a situation right now where the seller,
for one, it is a licensed agent, but they own
the home. So essentially it's like I'm dealing with a
for sale by owner.
Speaker 2 (17:35):
Yeah, for sure, And that's interesting licensed agent and listening
with you huh.
Speaker 4 (17:40):
Well, we're trying to buy their home.
Speaker 2 (17:42):
Oh got I got to get.
Speaker 4 (17:43):
But it's pretty much I'm negotiating with the seller directly.
Speaker 3 (17:46):
Yeah, you know.
Speaker 4 (17:47):
And it's really hard that That is a piece of
advice and I've done it, even Rosa. I helped her
with one of her properties. It is just best to
go have your real estate friend help you with your sale,
even if you're an agent yourself. It's just so hard
to look at things objectively. Yeah, you know, because you're home,
of course, it's the best house on the market. You
you know, ignore all the facts that you would normally tell,
(18:08):
you know, a seller when you go on a listing appointment.
But the number that we don't normally talk about is
the list to sell price ratio okay, which has been
teetering around like ninety seven percent.
Speaker 2 (18:19):
Whoa okay? So this goes back to what I don't.
Speaker 4 (18:21):
Think it's unreasonable or a low ball offer. If you're
going in you know, three percent less than what you're
listed at.
Speaker 2 (18:28):
So that's some really great information. I'm going to use that.
So so you're telling me it's at ninety seven percent,
which means if somebody lists a house for one hundred
thousand dollars on average, just going to sell for ninety
seven Is that? Is that like normal? It's statistically wise?
Is it? Is it about work? I mean, that's.
Speaker 4 (18:42):
Pretty hell, you know what I mean? During comment, it's sure,
I mean, you know, there's crazy going on, but you know,
right now, I think sellers should expect and go into
it being willing to negotiate. Of course, if you want
to sell, if you just want to keep your you know,
house sitting on the market, then.
Speaker 2 (19:01):
If you like people walking in and out of your
house and like giving up your weekends to a real
itt or standing in there with some wine. Then yeah, yeah, yeah,
just do that, Just list it. That's what you should do.
That's that is a great stat and that that really
you know, slaps me in the face. Well thank you,
but anyway, I slap myself on the face on that.
But it's a good point. Is you know, if you're
only off by three percent, if somebody makes an offer
to you and they're five percent under, I mean, what
(19:22):
are you losing two percent? Maybe?
Speaker 4 (19:23):
Yeah? And I mean I don't consider that a low ball. No,
you know, if you're listed at six hundred thousand and
somebody's offering you five hundred thousand, okay, sure, low abolish,
But I mean.
Speaker 2 (19:33):
I think, Mac, what do you think is the is
the magic low ball percentage? Like like where where do
we call it a low ball?
Speaker 1 (19:39):
Like?
Speaker 2 (19:39):
What percentage? Under list?
Speaker 5 (19:41):
And that's that's hard. It's uh. I would probably say
super aggressive. We get offers a lot of times on
some of the properties that are forty percent Oh oh wow, really.
Speaker 2 (19:56):
I was going to say ten.
Speaker 5 (19:57):
You know what's interesting is is they a lot of
people come in trying to and they'll do that with
a lot of different properties hoping you just get one.
Speaker 2 (20:05):
Yeah, okay, so that's a whole other strategy. Guys. We
have to take a break here on the Business Happy How.
When we get back, where to learn more about commercial
real estate? What is commercial real estate, what's the difference
in residential, how do you finance it? And what's a
low ball offer? With Mac Autry from the Outlier Group,
with Senya and Frank the Lincoln Lending and Mahard Associates.
We'll be back in just a minute.
Speaker 1 (20:23):
Welcome to the Business Happy Hour radio show with your
host Frank the bank Kodo, President of Lincoln Lending Group
and eight won three mortgage for twenty years right here
in Tampa Bay, joined by his incredible co host Rosa
Bahiti and Senia Akishna, top producing real estate agents with
Mahara and Associates. These three bring nearly five decades of
(20:44):
experience in the local real estate market. If you're looking
for real estate or business advice, no matter what your
experience level, the Business Happy Hour team has been there
for you for almost a decade right here on news
radio WFLA. Now sit back, relax, and get ready for
some serious real estate and isn't this talk with three
of Tampa Bay's top experts.
Speaker 2 (21:03):
Here's Frank the Bank. Hey, Tampa Bay, welcome back to
the Business Happy Hour, your number one show for all
things business and entrepreneurial in studio with my amazing co
s Senya Keisha uh Rosea Ahiti, and our great guest
host over here is Mac Autrey from the Outlier Group.
How's everybody doing good?
Speaker 7 (21:22):
I'm excited to hear about commercial today too, and some
terminology maybe and understanding different parts of it.
Speaker 2 (21:29):
Yeah, how's that going?
Speaker 4 (21:30):
Because you're you know.
Speaker 7 (21:31):
Yeah, yeah, Honestly, Back and his team are great and
they're very supportive and hands on and always making sure
like a few steps ahead, which is great. And then
also a lot of opportunities and leads too.
Speaker 2 (21:47):
There you go for the commercial real estate space, and
I know, Rosa, You're you're diving in headfirst into this,
which I think you're going to be great at. You know,
you've already done the investment stuff. Remember back in the
show sen you know you and I did with her
and she was like, oh, I have four houses and
this and this. I'm like, what are you doing now? Oh? Well,
hopefully he didn't lose like Frank did.
Speaker 7 (22:06):
No, No, but I did see your closing happened. This
just happened last week, right, Yeah, and you got close
to four hundred dollars, yeah, three ninety seven.
Speaker 2 (22:15):
You know, it's it's interesting how that work. I don't
want to waste a lot of time on this because
I want to get the commercial. But the auction crap
they actually like the price is higher because that's the commission,
because the buyer has to pay the commission. Yeah, so
the buyer paid like whatever that difference was, like eighteen
nineteen thousand dollars of commission on top of what he
gave me, which you know, kind of makes me look
(22:37):
at it like maybe I should have just put a
sign in the yard. No, you're to call Citia and
Rosa and Mac when you guys need real estate agents.
Don't call me.
Speaker 3 (22:45):
I'll do the loon.
Speaker 2 (22:46):
All right, let's move into commercial here. I don't want
to delay Mac. Thank you for coming in first of all,
before we get started, Mac, if anybody's interested in commercial
real estate, who do they call or what do they do?
Do we tell them to call Rosa? What do we do?
Speaker 3 (22:57):
Absolutely call Rosa?
Speaker 7 (22:58):
Yeah, yeah, so you can reach just s at seven
seven six zero eight, six two three five.
Speaker 2 (23:03):
Seven two seven six zero eight six two three five.
That's six two three five. Check them out. And of
course you can always find Rosa on the social media
as well. Sennia has the residential, ROSA has the commercial,
Frank has the bank, so it is we can find
it in mode. That's how I get to be friends
with everybody. We all need the bank, we all need that.
(23:23):
I hated the acronym years ago, and now I just
have no choice. All right, So I'm going to style
start and we'll SENDI you and now you go. Let's see.
I guess here's the here's the first question that we're
talking about. What's a typical commercial real estate clientele?
Speaker 3 (23:38):
Like?
Speaker 2 (23:38):
Is that just anybody that buys commercial real estate?
Speaker 3 (23:41):
Yeah?
Speaker 5 (23:42):
So, so really it varies a lot, right because commercial
is a pretty robust field. And when you get into
the buyers and the different clienteles, the sellers, you're dealing
with everything from an individual right like ourselves that are
out there, you know, purchasing an investment property for the
first time, to PE funds, private equity funds, real estate
(24:03):
investment trusts, and then you can you know, those are
the like the.
Speaker 2 (24:05):
Larger kind again black Rocks and things like that, right.
Speaker 5 (24:09):
And they're going in there with a particular templated formula
and they're.
Speaker 3 (24:12):
Just buying up a lot of stuff, you know, like
black rock. So it's really it's really robust.
Speaker 5 (24:17):
There's a lot of different types of clientele in commercial
you know, in terms of buyers and sellers.
Speaker 2 (24:23):
So it could be a corporation, it could be a person,
it could be a corporation competing against a person. I'm
sure you have that happen on occasion. When it's a
corporate buyer, Are they low balling a lot.
Speaker 5 (24:34):
Of times or no, they're they're usually with the larger corporations,
so it's actually very rare to see an individual.
Speaker 3 (24:41):
So even with an individual, they'll have an LLC because
of liability reasons, right, they want to hedge their risks.
Speaker 5 (24:47):
So with the large corporations, these guys usually have analysts
that will work in the background on a particular property,
and they usually want to come to the table with
a strong offer because they want that reputation in the brokerage.
Speaker 3 (24:59):
Community that they're that they're buyers and that they're a buyer.
Speaker 5 (25:03):
And we have something called a surety of sale, and
that means, you know, depending on who you're dealing with,
how sure you that they're going to you know, go
through with it. And so the higher they're a surety
of sale level is, the more the brokers want to
work with them.
Speaker 3 (25:19):
You know.
Speaker 5 (25:19):
So going back to those people we were talking about
coming to forty percent off, nobody wants to work with them.
Speaker 3 (25:24):
Their shorty fills you, right, How do.
Speaker 6 (25:26):
You know what their surety of sale is?
Speaker 5 (25:29):
It's you know, it's it's kind of a small circle
commercial real estate, and so what happens is you're going
to come across a lot of these these institutions and
these private equity companies that are used to doing deals
in whatever subject it might be, whether it's shopping centers,
you know, you have a small group of people in
that area they're purchasing, or office buildings or whatever it
might be. And so so it's really just a word
(25:49):
of mouth and understanding what their previous projects were.
Speaker 6 (25:52):
Reputation reputation exactly.
Speaker 2 (25:55):
Which I'm sure that's a lot different rights any of
Like on the on the residential side, we don't have
a already of sale, you know, because because it's a
new person like every time. So and every person's different
and every day and every offer is different, and every
house is different.
Speaker 4 (26:09):
Uh.
Speaker 2 (26:09):
Is there more uniformity to commercial then or is it
kind of like residential every single thing is different.
Speaker 5 (26:15):
Uh, you know, I don't know how to I don't
know if i'd have the right answer for that. There
is uniformity for for sure, on on particular you know, purchasers, right, but.
Speaker 3 (26:27):
It is kind of all over the place at the
same time. You know.
Speaker 5 (26:29):
It's it's because you have you have the private groups
that come in the you've never heard of and they're
they're trying to buy this at the same time they're
trying to buy something in a different state, you know,
and you're trying and they're two different uses, so that
that kind of that part can get a little messy
depending on the bus.
Speaker 2 (26:42):
So I'm all this, I'm gonna ask this one that
I'm shut up and let you girls to ask some
ladies ask some questions. But what about you, you as
a company, and what would set apart uh outlier group?
If I am a commercial buyer or a commercial entity,
why do I want to come to you over I
don't know, CR is it CRE or CBRE or something
(27:02):
like that, is the only one that even comes to
my mind, to be honest.
Speaker 3 (27:05):
Yeah.
Speaker 5 (27:05):
So so they're the largest, right, cbre's probably the largest
commercial firm in the world, and they are global, they're players.
Speaker 3 (27:12):
Okay, you can buy and sell real estate in China
or United States. They have offices, got it. We're boutique.
Speaker 5 (27:18):
So the difference with us is we're going to be
giving a hands on approach. We're going to be tailoring
our entire experience to our clientele, got it. And because
we're a smaller firm, we get to commit a lot
more time to these clients than you would with the
CBRE or someone that has a lot of turn and
burn from people that are co calling and doing that
(27:39):
kind of thing, and they're they're turning over. There's a
lot of great agents at CBORY, but you know, when
it comes to local Florida real estate, we're going to
be able to tailor that experience a lot better.
Speaker 3 (27:49):
Got it.
Speaker 2 (27:49):
And I assume you're you're right here, so you're you're
knee deep in with the customers, so you're probably going
to get maybe some of those pocket listings, some things
that other people might not have.
Speaker 3 (27:58):
That's yeah, that's very popular this year, the.
Speaker 2 (28:01):
Word pocket list.
Speaker 5 (28:02):
So yeah, yeah, off market listenings and seller you know,
sellers working with brokers on their off market properties. You know,
so whereas previously, you know, off market would be a
for sale by own or they don't do that anymore.
You know, it's it's we still want it, you know,
pitched off market, but to a specific set of people.
Speaker 2 (28:21):
Now, cynya, isn't that like illegal on the residential side,
Like you can't really, I know, it's so grey, right,
but you're not supposed to market it unless it's listed
or something.
Speaker 4 (28:30):
There's all these weird rules. Yeah, and a couple of
years ago, like all these big changes came in. There's
a certain way to go about it. Oh okay, and
it's because it's MLS kind of came up with that
just because obviously they want to keep you know, on
that information within the MLS. So we do have to
have sellers sign you know, a document that if we
have a contract done, you don't want it on the MLS.
You know, they're specific things that we're saying, and you
(28:52):
could still do it like intra office.
Speaker 2 (28:54):
Right, intra office, like amongst the.
Speaker 4 (28:56):
Agents amongst the agents. Yes, but it's advertising to the
public that they don't.
Speaker 2 (29:00):
Want, yeah, which which is which is by the way,
a major benefit of Maharan Associates being that you guys
have over one hundred, right, so intra office doesn't mean
three people, it means a hundred. It means a residential realize.
Speaker 4 (29:12):
But things were so busy, you know, during COVID. That
was a great thing to have and a great thing
for buyers. It's like, hey, there are going to be things,
so you just let me know what you're looking for.
You know. Market was so hot, things were flying off
the shelves, you know. So we were able to get
in you know, some exclusive you know listings prior to
you know the public. Yeah, getting a shot at it.
Speaker 2 (29:32):
I like that word exclusive.
Speaker 5 (29:33):
Exclusive.
Speaker 3 (29:34):
People love that exclusive ex.
Speaker 2 (29:36):
I like boutique as well though that people do like that.
And I I framed my company. I say, well, we're
a Florida specialty lender, you know, and sometimes we'll say
boutique the same thing just kind of means, you know,
you're a small business. And I'm at the mall this
this weekend, and I could have gone to that to
that crumble cookie place. But then there's another little tiny
place that opened and called like American Cookie. You could
tell it was just like a mom who opened it up,
(29:57):
who's like working for the holidays. I'm like, well, I'm
I want to her. You know, I don't need to
give the money to crumble our associates.
Speaker 4 (30:03):
We're boutique too, very even though we have you know,
over a one hundred eight office. No, but I mean
we're a boutique firm. We're not you know, not corporate.
You know, we do things in a very like tailored
and you know.
Speaker 2 (30:17):
Right which both of you guys, it's the same things
is you're not You're not Keller Williams. You're not you know,
Caldwell Banker. And I'm not saying that they're bad, but
that's still big entities, right, you know.
Speaker 5 (30:28):
And I think a lot of people move towards the
local lately, even even on the retail real estate side,
like people are steering away from the Starbucks is moving
toward the local coffee shops that have great beans a
hundred percent.
Speaker 2 (30:40):
I actually look for that when I do Starbucks is like,
damn it, I have to go to Starbucks and then
Dunkin Donuts is on the bottom. Okay, right now, other questions,
what do you ladies have for MAC? I have a
few of them here.
Speaker 7 (30:50):
A huge one like I learned in the beginning when
I first started taking commercial listings and my residential real
estate career is triple net and learning about triple net
leases and what that actually means. And you have a
great way of explaining it.
Speaker 4 (31:04):
And she's still my question. I really done too much
of this, but that is obviously the biggest term that
I hear. You know, when you do try to dabble
a little bit and commercial, somebody wants to run an
office space and I'm like, triple net, Yeah, explain that
to us.
Speaker 3 (31:18):
So triple net. Yeah, you're right.
Speaker 5 (31:19):
I mean, that's that's a great question, and it's huge, right.
And so triple net stands for net net net, right,
and each net is net of something.
Speaker 3 (31:28):
Right.
Speaker 5 (31:28):
So you have CAM, which is comminary maintenance, think of
kind of almost like an h away, right, So exterior maintenance,
that kind of thing, Property taxes and property insurance, those
are your three ends.
Speaker 3 (31:39):
Those are net netnet.
Speaker 5 (31:41):
And so when you're leasing a building, it's great for
the landlord to do it as triple net because essentially
the tenant pays for everything and the only thing you
get is the you know, is the rent, which is
pure profit because it's triple net, right and back in
the day it used to be gross leases, and so
the landlords you know, would take on the property insurance,
(32:03):
the costs of the maintenance of the building and all
that themselves, and the tenant would just pay rent.
Speaker 4 (32:08):
So on that note, then like, is there a benefit
to the tenant for doing that as well?
Speaker 2 (32:13):
Uh?
Speaker 5 (32:14):
I mean, I guess it depends on how you look
at it, but I think so because it gives them
a little bit more, a little bit more control of
understanding what's going on, right, and they can also they
can also ask for reconciliation to make sure, you know,
if there's cams being paid and those kind of things,
it's it's all transparent with.
Speaker 2 (32:29):
So I want to We're gonna take a quick break
when we get back. I want to dive a little
bit more into triple net. I have a question on that.
And then there's another word called cap rate that i'd
I'd like to figure out what the heck cap rate
is on the business Happy are with Senni Akisha from
Maharn Associates and Frank the Bank. We'll be back in
just a minute.
Speaker 1 (32:45):
Now, we're back with some serious real estate and business
talk with three of Tampa Bay's top experts, your host
of the Business Happy Hour, Frank the Bank, Coodo, Rosa Bahiti,
and Senia Akishna.
Speaker 2 (32:56):
Hey, guys, welcome back to the Business Happy Hour, number
one show for all things business. An entrepreneurial to theneurial,
and we're learning about commercial real estate today with Mac
from the Outlier Group, and now Roseavahiti is also with
Max's team focusing on commercial real estate. Not because Maharan
Associates is not awesome. They are extremely awesome, but they
(33:16):
don't do commercial real estate. And Rose over here just
keeps buying stuff and still still having inflatable beds. But
she's buying real estate.
Speaker 6 (33:26):
And I'm about to lease that property to all right.
Speaker 2 (33:29):
Another inflatable bed coming for the next house. So we're
having fun with Mac over here. O. The question before
we took the break was about Triple Net and I
think we kind of want to want to follow that up.
Sendy of what we're saying right before we left. It's like,
is it separated well, I was.
Speaker 4 (33:43):
Just curious because yeah, if you have a building and say,
you know there's multiple spots to lease, you know, see
half the square footage you know is going to you know,
one company and then you know the other fight into two.
So yeah, with the triple net and like the insurance
property taxes, that's still split up evenly. So the half
the portion, you know, they would pay half of those
(34:04):
expenses and.
Speaker 5 (34:05):
Then correct, yeah, those so on a single tenant, right,
they would pay everything. But to your point, like, if
it's split up and you have multiple tenants, they're going
to pay a proportional share of whatever percentage of that
building they take up, right, So if it's fifty percent,
then they're paying fifty percent, yeah, right, and then and
then based on whatever and some of these shopping centers,
you know, it might only be they might only be
(34:26):
taken up two percent of building, right because you have
so many tenants, and so that'll be their proportional share
of the expenses for maintenance.
Speaker 4 (34:34):
Like is there a say of the tenants, like say
there are three tenants, Like do they kind of decide Okay,
well maybe we want to save a little money and.
Speaker 5 (34:43):
Not really, I mean, depending on if they're paying it
directly and then they have the optionality of the contract
with the maintenance companies. But most of the time the
maintenance is already set up and so they'll pay a
certain cam fee for the exterior.
Speaker 3 (34:56):
And that's a common area maintenance.
Speaker 5 (34:57):
That could be you know, the lawnmow, you know, mowing
the law on hedge in the grass, parking lot stripes,
you know, things like that that come out from from
the tenants in a way.
Speaker 4 (35:05):
Okay, so it's a set fee up front. All the
things are still agreed.
Speaker 5 (35:08):
On and set fee, but depending on the least language,
it can have you know, escalations and things like that
because like after you yeah, especially like after the hurricanes,
right all the all the prices went up because the
cost of labor and you know, trying to supply a
demand right right, it makes total sense.
Speaker 2 (35:25):
All right, So what's the next week? Got five five
and a half more? Man as I'm trying to think
of what's.
Speaker 4 (35:28):
The most So I guess that why why invest in
commercial real estate?
Speaker 3 (35:32):
Yeah, oh, that's that's a great question.
Speaker 5 (35:35):
So commercial real estate is cash flow, right, and you
have you can get into the accounting of it where
you have like thirty nine straight year depreciation. You can
you know, you can look at it from an accounting level,
but really most people are going to look at it
a couple of ways. One is, uh, what is your returns?
Your capitalization? Right, that's where we.
Speaker 2 (35:55):
Get cap right, going to.
Speaker 5 (35:59):
Split it in, And so they're looking at their capitalization.
How much money can I get back? And you know,
and these these companies, pee companies, they don't want to.
Speaker 3 (36:07):
Leave their cash sitting in a bank account.
Speaker 5 (36:09):
They want it working for them, right, And so they're
deploying that capital.
Speaker 2 (36:12):
By the way, PE is private equity.
Speaker 5 (36:14):
Oh sorry, yes, correct, private equity companies and and so
so investing in commercial real estate gives them the advantage depreciation,
the advantage of capitalizing on their money making money. And
one of the good things is the tenants are very
easy to deal with because typically the tenants are nine
(36:36):
to five, right, they're business owners. They're not complaining much
because most business owners, you know, have have it cut
out what they're going to do from from the point
of the day to the end of the day, right,
And and so you don't get you don't get any
kind of you still get something. I mean, I'm sure
there's some commercial property managers on here are saying careful,
(36:59):
but but you know it's less and depending on the use.
You know, you got retail office, but you might also
have like storage units.
Speaker 3 (37:06):
Well those tenants don't complain at.
Speaker 5 (37:07):
All, they're not even there, they've ben there, so you know,
so that the hassle free part is is is a
big part of it too.
Speaker 2 (37:15):
I've always heard the storage units are a really good investment,
is there?
Speaker 4 (37:18):
Oh yeah, speaking at cap rates, is there like a
typical target cap rate?
Speaker 3 (37:23):
Like you know what, Yeah, that's a good question.
Speaker 2 (37:26):
It's a really good one.
Speaker 5 (37:26):
So it really it really changes, right the more infill
and by infill, I mean like the closer yard to downtown, right,
your cap rates are going to be suppressed. They're going
to be they're going to be you're gonna be making
less capitalization right, less percentage.
Speaker 3 (37:40):
You know, maybe a.
Speaker 2 (37:41):
Quick example of cap rate like like throw out a
scenario so somebody understands what we're saying when we're sture.
Speaker 5 (37:46):
So for example, you know, you buy one hundred thousand,
you know, just keep it easy, one hundred thousand dollars building,
and you know you're looking.
Speaker 3 (37:53):
For a ten percent cap rate. That's ten percent of
your return, right, so ten thousand dollars a year annually, right,
So that's what that's what the cap rate essentially is.
Speaker 5 (38:02):
So that means I can buy one hundred thousand dollars building,
and I know every year I'm going to be profiting
ten thousand dollars.
Speaker 2 (38:08):
Profiting ten thousand dollars. That's the key to cap rate correct.
And what is your like sending us asking, you know,
is there a magical number?
Speaker 1 (38:15):
You know?
Speaker 2 (38:16):
Okay, downtown you're probably what seven or eight cap rate
something like that, and then outside maybe you're getting twelve
percent correct.
Speaker 3 (38:22):
And again the variables depend on you know, the use type.
Speaker 5 (38:25):
You know, office has a higher vacancy rate right now,
so you'd factor in those kind of things.
Speaker 3 (38:29):
You know, it's probably twice of what industrial is right now.
Speaker 5 (38:32):
You know, I think like office vacancy right now is
you know, closer to fifteen and a half percent. It's
got to be at an all time high right now, yeah,
because they'll work from home, right COVID stuff is right
whereas you have industrial where the cap rate you know,
the vacancy rates only like five percent, you know, and
so cap is an easy indicator to just kind of
get like a rule of thumb, right, Like I'm going
(38:54):
to look at this property and I know, okay, I
need at least eight percent cap But getting into the
math and you get in to more of time, money
and IRR, you get a little bit deeper into the
numbers to understand really what you are getting after.
Speaker 2 (39:07):
So the cap rate is just kind of your surface level.
You're an investor, you have one hundred thousand, you want
to make ten percent on your money. Hey, you know,
mac and Rosa, go find me something with a ten
percent cap rate. But then you're talking about the other
stuff like the depreciation, the tax benefits of owning the
real estate, the appreciation of the real estate itself, those
are not factored in when you're calculating cap rate.
Speaker 3 (39:28):
Correct, got it? Because then you have your equity and
time value of money and that starts.
Speaker 2 (39:32):
So going back to the whole question of why invest
into commercial real estate, I would say it's probably because
you may have a higher rate of return in more
long term tax benefits and growth benefits.
Speaker 3 (39:45):
Yeah, yep, well exactly right.
Speaker 2 (39:47):
We get a minute last flow hit them with another question, girls,
what do we got?
Speaker 6 (39:52):
How is commercial real estate valued.
Speaker 2 (39:55):
Oh forty seconds to say that.
Speaker 5 (40:00):
So income approach which is going back to the cap
rate how much you want to make okay, And then
you have a use approach, which would be like comp
analysis what you guys are used to in residential right.
So depending on the buyer, it would it would go
to one of those things, whether it's an income roast
or you know.
Speaker 2 (40:16):
And that falls onto the finance because we can use
income or costs, which is a whole different world, or
we can do something called no income verification up to
twenty nine units. If you don't want to prove your income,
that's a whole nother thing. We left finance out of this.
But you know to call Frank the bank, you know,
to go to outlier group for your commercial real estate ROSA.
What's that number?
Speaker 7 (40:36):
Seventy seven six zero eight six two three five, got it?
Speaker 2 (40:40):
And Sania if we need our residential real estate, they're
going to call eight one three seven, five to five reel, seven,
five to five, reel. It's been a great show, Mac,
thank you for coming on, Thanks for having me.
Speaker 3 (40:49):
Frank.
Speaker 2 (40:50):
Let's buy some commercial real estate, guys and have a
great Christmas.
Welcome to the Business Happy Hour radio show with your host,
Frank the Bank Koto, president of Lincoln Lending Group and
eight one three Mortgage for twenty years right here in
Tampa Bay, joined by his incredible co host Rosa Bahiti
and Sinia Akishna, top producing real estate agents with Mahara
and Associates. These three bring nearly five decades of experience
(00:21):
in the local real estate market. If you're looking for
real estate or business advice, no matter what your experience level,
the Business Happy Hour team has been there for you
for almost a decade right here on NewsRadio WFLA. Now
sit back, relax, and get ready for some serious real
estate and business talk with three of Tampa Bay's top experts.
Speaker 2 (00:40):
Here's Frank the Bank. Hey, Tampa Bay, welcome back to
the Business Happy Are, your number one show for all
things business and entrepreneurial. I am your host, Frank Thebankkoto,
the owner of Lincoln Lending Group and eight one three
Mortgage dot com and most recently Reverse Guru dot Com.
That's right, guys, stop spending all that holiday money unless
(01:00):
you have enough equity in your house and you're over
sixty two and you don't want to lose your house.
You can get a reverse mortgage from yours truly. Go
to reverse guru dot com and check it out. It
is going to be an exciting show today. As promised,
we brought back an old guest from two weeks ago,
mister mac Autrey from Outlier Group. How you doing Mac?
Speaker 3 (01:20):
Great? Thanks for having me back on.
Speaker 2 (01:22):
Your second time on radio right, absolutely.
Speaker 4 (01:24):
Thanks for coming back.
Speaker 2 (01:25):
I thought you bailed. He did, he bailed and got
all that turkey. Good excuse little Thanksgiving we ran. I
can't remember what show we ran as our rerun last week.
I think I did think we reran Mac again.
Speaker 5 (01:39):
Yeah, so technically was my third time.
Speaker 2 (01:43):
I guess he does get credit. And don't forget my
amazing co host, Sennya Akesha. How you doing sendio?
Speaker 4 (01:48):
Hello, Hello, wonderful.
Speaker 2 (01:50):
Did you have a good Thanksgiving?
Speaker 4 (01:51):
I did?
Speaker 2 (01:52):
I heard you and Ray went out and did something fun.
You guys did a little family Thanks you doing this traditional?
Speaker 4 (01:56):
Yes, family Thanksgiving and at a rest so you know,
we all just get to mingle and you know, the
food gets brought, the drinks get brought.
Speaker 2 (02:04):
So yes, my wife has been begging and my mom
for that for years and years and maybe one day
I will do it. But it's just like, I'm like,
you know, every year, we only get together twice a year,
Thanksgiving and Christmas, and we only cook one big meal
together as a family twice a year. So I'm like,
come on, Mom, I'm like, come on, like I cook
(02:25):
the turkey. You know, it's like, you guys just got
to do the side. She's like, well, I'm standing up
all day doing the sides. I was like, and they're good,
they love them. So anyway, we're not gonna tell my mom,
who's probably listening now, that other people go to restaurants
for Thanksgiving because I told her everything's closed. Uh Cinya
with Mahara and associates. If you guys need a realtor
(02:45):
a real tour, I get in trouble sometimes. What do
you think of that? By the way, realtor versus real
tour do you even?
Speaker 1 (02:51):
Yeah?
Speaker 2 (02:52):
Yeah, that's the way I can, right Anya.
Speaker 4 (02:55):
You know, I got so many different pronunciations there, so
real tour realtor does not good.
Speaker 2 (03:00):
Point. You're like, nobody even pronounced my name right, so
I could care less if they say realtor or a realtor.
Now I actually did have an agent one time like
totally chastized me into the front of a room of
like eighty people and they're like, we are real tours,
we are not realtors, and I'm like, damn. So from
then on I try to be more correct and say
real tour, but I think realner sounds better. To be honest,
(03:22):
I just off the what do you say, real estate agent?
You know what, That's a good work around right there.
So every week Senya from Maharan Associates brings us statistics
and this is the month we've been waiting for. We've
been talking about what's gonna happen from October to October
for the last probably three months, right, or maybe at
(03:43):
least a couple months. We've been saying, well, where's the market.
We were saying, oh, it's getting better, and then we
had these hurricanes come through and the question is how
did it affect our market? And we might not even
really see until next month, you know, do you get
another one? But Senia I told her not to tell
me any of this before the show because I wanted
to react naturally. So what happened? How were looking over here?
Speaker 4 (04:05):
I mean, it's it's actually the closed sales because I
mean when we did the September numbers, okay, those were
you know, significantly down in that September to September of last.
Speaker 2 (04:15):
Year on closed sales.
Speaker 4 (04:17):
On closed sales. Okay, so for closed sales for October,
actually those numbers look better than Septembers really for our MSSA,
which is the market statistical area you know, Hillsborough County, Penela's, Pasco,
and Hernando, it's down nine point four percent total.
Speaker 2 (04:34):
Nine point four October at October.
Speaker 4 (04:36):
Yeah, September was down seventeen and a half percent. But
what I did see interesting, which I think we'll see reflected,
you know for November numbers, is that our pending sales
were down significantly are pending, so that means people are
going under contract, which I get it, you know, with
the hurricanes and everything, it just we think of it
(04:57):
as we pretty much just lost a month of activity.
You know, people were busy prepping for the hurricane and
cleaning up after the hurricane. Yeah, so just not a
whole lot of things going on. I'm sure people weren't
really showing houses. No, So yeah, those numbers are down
for the MSA, so it's down eighteen point three percent.
Speaker 2 (05:18):
Oh, I mean, I mean it could be a lot worse.
I listen, I'm a positive pony over here, right, But
we can hate that. But anyway, somebody calls the kid's school,
they say that crap all the time. But I guess
I am a positive pony because that doesn't sound as
bad as I thought. Yeah, I mean, looking at where
our applications were in the month of October and where
(05:38):
the closings are so far, you know, well what we
have on books for November, I saw a bigger decline.
I saw more like a fifty percent decline. So I
was ready for you to tell me that we were
worse than a fifty percent drop from last October to
this October. So one of two things happen. Either people
were not as scared from the hurricanes as I thought,
(05:58):
or man, we had a crappy October. Last October is well,
last October was it?
Speaker 4 (06:03):
I mean, as you will remember, I mean last year.
I think our own August is kind of when things were,
you know, stagnating.
Speaker 2 (06:09):
Yeah, well, I remember I listed this house for sale,
Oh yeah, and gave us God even Cinia knows the address.
It's like I want to shoot myself with this like it. Yeah,
we listed it, I think in like July, and then
literally the market fell out, and you know, I was arrogant,
and which here's a lesson to sellers. If someone offers
(06:31):
you close to the amount that you wanted, here's a
great piece of advice. Take it. Take it from a
guy who lost forty two thousand dollars on a flip Listen,
you don't win them all. And this could be part
of a conversation we'll have today together. You know, two
awesome agents in here in one mediocre mortgage guy. You
don't win them all. And the reason I didn't win
(06:52):
on that sale is because the market fell out from
under me, and I didn't believe that it was going
to be a continued thing, and I did not take
offers that were probably let's talk percentages. Like if you
list a house for four hundred thousand and somebody makes
an offer to you of or three hundred and eighty
thousand dollars, well, that's only five percent off of your
(07:13):
listing price. But a lot of time sellers or buyers
they look at that and they're like, oh my god,
that's twenty right, that's twenty thousand dollars. That's crazy. Well,
if you reject the offer at three eighty and you
end up selling it, let's just say at three hundred,
that's twenty five percent, right, So I would have much
rather lose five than twenty five.
Speaker 5 (07:35):
Yeah, my old broker used to say he would he
would say, well, before you reject the offer, would you
sell your property for the price you're rejecting, Because that's it,
that's exactly what's happening. Basically, you're you're giving you're taking
buy the property, You're purchasing the property back.
Speaker 3 (07:51):
I have that contract.
Speaker 2 (07:52):
Oh I see, yes, would you buy it at that price?
Speaker 5 (07:55):
And so it's like, you know, so essentially, if you're
if you're walking away from a deal, you know, if
it's three fifty and you're walking away from it at
you know, three twenty five, you're basically taking that property
back at three twenty five because you could have just
you know, you could have just had that deal.
Speaker 4 (08:10):
That's a good way of looking at it.
Speaker 2 (08:11):
Yeah, yeah, that is where the hell were you about
a year and a half ago, Mack, golly, I just
met this guy with this advice over here. No, but
I mean, this is this is great advice and what
do y'all think about going into the holiday season. I
want to get both of your perspectives on because I
tell you, when I go out in the in the
real real tour community, I hear polar opposites about what
(08:35):
we're going into with December. You know what, I'll start
with you saying, ladies, first, I mean when you think.
Speaker 4 (08:40):
Of December, For one, I think if you take the
country as a whole. You know, we live in Florida, right,
so I don't think seasonality here as you know, as significant,
you know, and parts of the country weren't snowing and
so cold, and people really kind of hunker down and
just you know, do the holiday staff.
Speaker 2 (08:55):
Good point, but I mean obviously, yes.
Speaker 4 (08:58):
You know, the fourth quarter is typically you know, our
slowest quarter, so you know, people kind of what do
you think the busiest quarter is spring?
Speaker 2 (09:05):
Spring? That's why I would present.
Speaker 4 (09:07):
So the second quarter, yeah, March, March to June, that's
the hot time of year.
Speaker 2 (09:12):
So I totally agree with that. Mac. What do you
think And I know you're mostly commercial, but you can
still give us your opinion on how does December look
with the real estate that you sell?
Speaker 5 (09:21):
Uh, typically we see we see a decline in business
in December, you know, in terms of transaction volume, right, So,
and I think that that's more emotionally driven than anything else.
So a lot of the a lot of these companies,
these uh PE companies and investment companies, or even the
small family groups that are looking to purchase as soon
(09:43):
as that. This could be purely my opinion, but when
that Christmas music starts playing in mid December, anyway, everything
everything turns to retail. So retail does really good, but
only in the terms of sales of their products because
everybody just s turns to Christmas shop and and take
can get easy, you know.
Speaker 2 (10:00):
Dude, Mac I was in. I was in. I was
Walmart or home Depot, both in late October and Christmas crowd.
This guy said, Christmas music starts in December. I was like,
where do you live. Yeah. I was like, they know,
they start paying it early. Oh my, it's every year.
Am I crazy?
Speaker 4 (10:15):
It's like no, And I feel like it gets actually
earlier every year too. I'm like, oh my gosh.
Speaker 3 (10:20):
Yeah.
Speaker 2 (10:20):
I was literally trying to get some discounts on Halloween
stuff during around Halloween, and dude, it's like and all
the ground, like I don't want Rootolf unless he's a
skeleton anyway, and then we try to leave that skeleton
in the yard and do the Santa thing. Yeah, bad idea.
So anyway, Yeah, those things don't do well in your
sprinklers and all that stuff. Anyways, I note so statistically,
(10:42):
I'm I would like to go on a limb and
we're talking to our buyers right now. I feel like
it's a good time for buyers in December because you
have right, yeah, definitely right, less competition and if a
seller is listing in December or or around there, they're
probably pretty motivated, right because I mean you two would
probably tell them how you need a little bit more time,
(11:04):
you know, or wait, wait until January or February or
something like that. Let's se weve got a minute left.
So how do you think the holidays translate into the
beginning of the year. What do you think, Senia? Do
you think do you think it's like an overflow, like
people don't start buying until late January, or think in Florida.
Let's think Florida, not in North Dakota.
Speaker 4 (11:21):
I think there are those that do try to actually
rush and close before the end of the year. Yes,
and then there are those you know that take their time,
you know, look and find something, and you know.
Speaker 2 (11:32):
Yeah, shop over the house because I think it's a
good time to shop. You got off work, you got
time with a family, you can go out and look.
Sellers are motivated. If you're shopping in December, you're gonna
have less competition. But to your point thirty seconds, why
do people want to close before the end of the year.
Go Why for the homestead of gignplanes That's it. She's like,
there's gotta be a trick question. No, it's a homestead
(11:53):
exemption because if you close by the end of the year,
then you get the lower tax rate with the homestead
exemption for the following year. But you have have to
close by December thirty first. And guess what, there's time.
You're gonna call Senia at.
Speaker 4 (12:04):
Oh eight one three seven five five.
Speaker 2 (12:07):
Reel seven five five reel. She's gonna find you the
real house. I'm gonna find you the real mortgage. And yes,
we're gonna close you before December thirty first, right here
on the Business Happy Hour. We'll be back in just
a minute with macawtry from the Outlier Group.
Speaker 1 (12:19):
Now We're back with some serious real estate in business
talk with three of Tampa Bay's top experts, your host
of the Business Happy Hour, Frank the Bangkoto, Rosa Bahiti,
and Senia Asha.
Speaker 2 (12:30):
All Right, Tampa Bay, I'm having too much fun on
the Instagram. There's a Rosa she is what are you
in the elevator? She's in the elevator. I think somehow
at the iHeartRadio buildings. I know, I thought it was funny. Well,
I saw her little invite and I'm like, I'll put
her on the air. Let's see what happens where she
look at her. That is iHeartRadio, guys, and you're checking
(12:52):
it out right there feathers out perfect that a balloon thing.
Not really sure that that caught the image of the
iHeart symbol. That well, I walked down here and you're
still working on it. Oh, good point, good point. I said,
what is that?
Speaker 1 (13:03):
Effen?
Speaker 2 (13:04):
I was wondering.
Speaker 4 (13:05):
I'm like, nunatil you said that. I'm like, what is that?
Speaker 2 (13:06):
I mean, like, well, I got out the elevator, lady
was set up. I'm like, what is that supposed to be?
Like it's supposed to be the iHeartRadio Some I'm so
little balloon Christmas.
Speaker 4 (13:15):
Trees though those are cute. I'm like, I'm gonna have
to go on Amazon and see if i can find
me some of those.
Speaker 2 (13:20):
You know, wait till tomorrow to the Christmas party, because
a lot of times those things just float away.
Speaker 3 (13:24):
I love that she's panning to all the Christmas stuff.
Speaker 2 (13:26):
Oh look, there's giving.
Speaker 3 (13:27):
The viewers a tour.
Speaker 2 (13:28):
So for you Instagrammers, you get to see a tour
of the studio. And here's Rosa Ahiti. How we don
all right, Welcome to the show.
Speaker 1 (13:35):
Kai.
Speaker 2 (13:36):
So we're in the second segment. Here we've got Mac
Autrey from Outlier Group and Senia Kenny Senya Ake should
not say I'm making stuff up with Mahara and associates. Senio.
If they need real estate, they're gonna have to call
you at eight one three seven five five reel seven
five five reel. That's the way we're gonna get in
touch with Sennia to find out what you can qualify
for on the residential side. Today, as promised a couple
(13:59):
of weeks ago, go or even last week, again, we're
going to learn about commercial real estate. We've got some
questions for Mac that we want to learn a little
bit more about what the differences are. We were just
talking about the market, if it's the right time to
buy or not. You know, a very rich guy told
me way back in the day. I won't use his
name here, but he said, we were talking about timing
(14:19):
right and and and you know, hey, when the time
is right, I'm going to do this. I had a
real tour say this to me yesterday. He goes, I'm
going to introduce you to this person when the time
is right. And I wrote back to him, I said,
you know, a very rich man told me once there's
no such thing as the right time. There's only right
now right.
Speaker 3 (14:33):
So great advice.
Speaker 2 (14:34):
It is great advice, and and I think it teaches
in a way stop procrastinating. You know, there's nothing you know,
it's not like you know, you're you're playing an NFL
football game and you know you have to make the
throw at then the next three seconds or you're going
to we're out of timeouse. It's not like that in
the real world. So it's just it's just Another guy
wrote a book speaking of called start Ugly. Chris Kremitzos.
(14:55):
We had him on the show many years ago. It
goes hand in hand. People think they got to do
things per they don't. The people who think they got
to do it perfect and never start are never going
to win. Just start ugly and get it done. And
he was like, you do that all the time, don't
you anyway, So Rosa, welcome back to the show. How
(15:16):
you doing over there? Got your mic on? She has
her chair so low, like literally you can't even see
your eyes. So before we get started with Mac, and
we do have some questions for him, Rosa, how was
your Thanksgiving friends Giving? Pot luck dinner?
Speaker 6 (15:31):
Everything was amazing. Friendsgiving was great.
Speaker 7 (15:34):
I had it all catered and my girlfriend who has
a catering business, came out and took care of all
the food.
Speaker 6 (15:39):
And then I had my bartender.
Speaker 7 (15:41):
Out so it was hands off for me so I
could actually be present and enjoy my time. And I
had my photographer there too. Your multicultural yeah, my second part.
Speaker 6 (15:56):
So that was great. And the Persian dishes were amazing.
Speaker 7 (16:00):
We had lamb and we had a Persian salad and
a Persian rice that has saffron and chicken and burberries.
Speaker 6 (16:08):
I think was in it.
Speaker 2 (16:09):
Burberries. It was really good, sounds great.
Speaker 3 (16:11):
I always just thought those were jackets.
Speaker 2 (16:13):
Yeah. I was like, I got a sweater that, like,
is that a six hundred dollars T shirt?
Speaker 1 (16:18):
That?
Speaker 2 (16:19):
It's a very How was the okra? Did you end
up eating the okra?
Speaker 6 (16:22):
Yes?
Speaker 7 (16:22):
And then we had some gumbo yesterday. I haven't tried
it yet. We got to bring you some.
Speaker 2 (16:27):
Too, Yeah, the gum and listen, I'll be honest, I
failed you today. Guess what came out the McRib? The McRib?
Did you hear the joke? I remember, ladies have never
eaten a McRib And I literally was in the drive
to McDonald's the other day and I was like, oh,
I gotta get them. At my wife's like, why are
you going to get that? I go because Rosa and
Sanny I have not eaten a mc rib And she's like,
(16:49):
where are they from Russia? That's the joke, but this
one really is from Russian. Oh my god. The guy
got called a Russian this morning at the Little later
Sta cafe. I was eating and they're arguing about Trump
and Democrats are rebull again and one guy calls the
other guy a Russian. I was like, I was like,
I know a Russian anyway. Oh God, I love this,
(17:09):
so let's see. How about stats any other stats that
we missed out on. I know you do a lot
of stuff. I don't want to cut it short. Anything
else that we have.
Speaker 4 (17:15):
Well, the one thing I do want to say is
and actually pivoting back to you know, your Davis Road
sale and the five percent you know off when you
look at it like that, And I wish sellers would yeah,
because I am in a situation right now where the seller,
for one, it is a licensed agent, but they own
the home. So essentially it's like I'm dealing with a
for sale by owner.
Speaker 2 (17:35):
Yeah, for sure, And that's interesting licensed agent and listening
with you huh.
Speaker 4 (17:40):
Well, we're trying to buy their home.
Speaker 2 (17:42):
Oh got I got to get.
Speaker 4 (17:43):
But it's pretty much I'm negotiating with the seller directly.
Speaker 3 (17:46):
Yeah, you know.
Speaker 4 (17:47):
And it's really hard that That is a piece of
advice and I've done it, even Rosa. I helped her
with one of her properties. It is just best to
go have your real estate friend help you with your sale,
even if you're an agent yourself. It's just so hard
to look at things objectively. Yeah, you know, because you're home,
of course, it's the best house on the market. You
you know, ignore all the facts that you would normally tell,
(18:08):
you know, a seller when you go on a listing appointment.
But the number that we don't normally talk about is
the list to sell price ratio okay, which has been
teetering around like ninety seven percent.
Speaker 2 (18:19):
Whoa okay? So this goes back to what I don't.
Speaker 4 (18:21):
Think it's unreasonable or a low ball offer. If you're
going in you know, three percent less than what you're
listed at.
Speaker 2 (18:28):
So that's some really great information. I'm going to use that.
So so you're telling me it's at ninety seven percent,
which means if somebody lists a house for one hundred
thousand dollars on average, just going to sell for ninety
seven Is that? Is that like normal? It's statistically wise?
Is it? Is it about work? I mean, that's.
Speaker 4 (18:42):
Pretty hell, you know what I mean? During comment, it's sure,
I mean, you know, there's crazy going on, but you know,
right now, I think sellers should expect and go into
it being willing to negotiate. Of course, if you want
to sell, if you just want to keep your you know,
house sitting on the market, then.
Speaker 2 (19:01):
If you like people walking in and out of your
house and like giving up your weekends to a real
itt or standing in there with some wine. Then yeah, yeah, yeah,
just do that, Just list it. That's what you should do.
That's that is a great stat and that that really
you know, slaps me in the face. Well thank you,
but anyway, I slap myself on the face on that.
But it's a good point. Is you know, if you're
only off by three percent, if somebody makes an offer
to you and they're five percent under, I mean, what
(19:22):
are you losing two percent? Maybe?
Speaker 4 (19:23):
Yeah? And I mean I don't consider that a low ball. No,
you know, if you're listed at six hundred thousand and
somebody's offering you five hundred thousand, okay, sure, low abolish,
But I mean.
Speaker 2 (19:33):
I think, Mac, what do you think is the is
the magic low ball percentage? Like like where where do
we call it a low ball?
Speaker 1 (19:39):
Like?
Speaker 2 (19:39):
What percentage? Under list?
Speaker 5 (19:41):
And that's that's hard. It's uh. I would probably say
super aggressive. We get offers a lot of times on
some of the properties that are forty percent Oh oh wow, really.
Speaker 2 (19:56):
I was going to say ten.
Speaker 5 (19:57):
You know what's interesting is is they a lot of
people come in trying to and they'll do that with
a lot of different properties hoping you just get one.
Speaker 2 (20:05):
Yeah, okay, so that's a whole other strategy. Guys. We
have to take a break here on the Business Happy How.
When we get back, where to learn more about commercial
real estate? What is commercial real estate, what's the difference
in residential, how do you finance it? And what's a
low ball offer? With Mac Autry from the Outlier Group,
with Senya and Frank the Lincoln Lending and Mahard Associates.
We'll be back in just a minute.
Speaker 1 (20:23):
Welcome to the Business Happy Hour radio show with your
host Frank the bank Kodo, President of Lincoln Lending Group
and eight won three mortgage for twenty years right here
in Tampa Bay, joined by his incredible co host Rosa
Bahiti and Senia Akishna, top producing real estate agents with
Mahara and Associates. These three bring nearly five decades of
(20:44):
experience in the local real estate market. If you're looking
for real estate or business advice, no matter what your
experience level, the Business Happy Hour team has been there
for you for almost a decade right here on news
radio WFLA. Now sit back, relax, and get ready for
some serious real estate and isn't this talk with three
of Tampa Bay's top experts.
Speaker 2 (21:03):
Here's Frank the Bank. Hey, Tampa Bay, welcome back to
the Business Happy Hour, your number one show for all
things business and entrepreneurial in studio with my amazing co
s Senya Keisha uh Rosea Ahiti, and our great guest
host over here is Mac Autrey from the Outlier Group.
How's everybody doing good?
Speaker 7 (21:22):
I'm excited to hear about commercial today too, and some
terminology maybe and understanding different parts of it.
Speaker 2 (21:29):
Yeah, how's that going?
Speaker 4 (21:30):
Because you're you know.
Speaker 7 (21:31):
Yeah, yeah, Honestly, Back and his team are great and
they're very supportive and hands on and always making sure
like a few steps ahead, which is great. And then
also a lot of opportunities and leads too.
Speaker 2 (21:47):
There you go for the commercial real estate space, and
I know, Rosa, You're you're diving in headfirst into this,
which I think you're going to be great at. You know,
you've already done the investment stuff. Remember back in the
show sen you know you and I did with her
and she was like, oh, I have four houses and
this and this. I'm like, what are you doing now? Oh? Well,
hopefully he didn't lose like Frank did.
Speaker 7 (22:06):
No, No, but I did see your closing happened. This
just happened last week, right, Yeah, and you got close
to four hundred dollars, yeah, three ninety seven.
Speaker 2 (22:15):
You know, it's it's interesting how that work. I don't
want to waste a lot of time on this because
I want to get the commercial. But the auction crap
they actually like the price is higher because that's the commission,
because the buyer has to pay the commission. Yeah, so
the buyer paid like whatever that difference was, like eighteen
nineteen thousand dollars of commission on top of what he
gave me, which you know, kind of makes me look
(22:37):
at it like maybe I should have just put a
sign in the yard. No, you're to call Citia and
Rosa and Mac when you guys need real estate agents.
Don't call me.
Speaker 3 (22:45):
I'll do the loon.
Speaker 2 (22:46):
All right, let's move into commercial here. I don't want
to delay Mac. Thank you for coming in first of all,
before we get started, Mac, if anybody's interested in commercial
real estate, who do they call or what do they do?
Do we tell them to call Rosa? What do we do?
Speaker 3 (22:57):
Absolutely call Rosa?
Speaker 7 (22:58):
Yeah, yeah, so you can reach just s at seven
seven six zero eight, six two three five.
Speaker 2 (23:03):
Seven two seven six zero eight six two three five.
That's six two three five. Check them out. And of
course you can always find Rosa on the social media
as well. Sennia has the residential, ROSA has the commercial,
Frank has the bank, so it is we can find
it in mode. That's how I get to be friends
with everybody. We all need the bank, we all need that.
(23:23):
I hated the acronym years ago, and now I just
have no choice. All right, So I'm going to style
start and we'll SENDI you and now you go. Let's see.
I guess here's the here's the first question that we're
talking about. What's a typical commercial real estate clientele?
Speaker 3 (23:38):
Like?
Speaker 2 (23:38):
Is that just anybody that buys commercial real estate?
Speaker 3 (23:41):
Yeah?
Speaker 5 (23:42):
So, so really it varies a lot, right because commercial
is a pretty robust field. And when you get into
the buyers and the different clienteles, the sellers, you're dealing
with everything from an individual right like ourselves that are
out there, you know, purchasing an investment property for the
first time, to PE funds, private equity funds, real estate
(24:03):
investment trusts, and then you can you know, those are
the like the.
Speaker 2 (24:05):
Larger kind again black Rocks and things like that, right.
Speaker 5 (24:09):
And they're going in there with a particular templated formula
and they're.
Speaker 3 (24:12):
Just buying up a lot of stuff, you know, like
black rock. So it's really it's really robust.
Speaker 5 (24:17):
There's a lot of different types of clientele in commercial
you know, in terms of buyers and sellers.
Speaker 2 (24:23):
So it could be a corporation, it could be a person,
it could be a corporation competing against a person. I'm
sure you have that happen on occasion. When it's a
corporate buyer, Are they low balling a lot.
Speaker 5 (24:34):
Of times or no, they're they're usually with the larger corporations,
so it's actually very rare to see an individual.
Speaker 3 (24:41):
So even with an individual, they'll have an LLC because
of liability reasons, right, they want to hedge their risks.
Speaker 5 (24:47):
So with the large corporations, these guys usually have analysts
that will work in the background on a particular property,
and they usually want to come to the table with
a strong offer because they want that reputation in the brokerage.
Speaker 3 (24:59):
Community that they're that they're buyers and that they're a buyer.
Speaker 5 (25:03):
And we have something called a surety of sale, and
that means, you know, depending on who you're dealing with,
how sure you that they're going to you know, go
through with it. And so the higher they're a surety
of sale level is, the more the brokers want to
work with them.
Speaker 3 (25:19):
You know.
Speaker 5 (25:19):
So going back to those people we were talking about
coming to forty percent off, nobody wants to work with them.
Speaker 3 (25:24):
Their shorty fills you, right, How do.
Speaker 6 (25:26):
You know what their surety of sale is?
Speaker 5 (25:29):
It's you know, it's it's kind of a small circle
commercial real estate, and so what happens is you're going
to come across a lot of these these institutions and
these private equity companies that are used to doing deals
in whatever subject it might be, whether it's shopping centers,
you know, you have a small group of people in
that area they're purchasing, or office buildings or whatever it
might be. And so so it's really just a word
(25:49):
of mouth and understanding what their previous projects were.
Speaker 6 (25:52):
Reputation reputation exactly.
Speaker 2 (25:55):
Which I'm sure that's a lot different rights any of
Like on the on the residential side, we don't have
a already of sale, you know, because because it's a
new person like every time. So and every person's different
and every day and every offer is different, and every
house is different.
Speaker 4 (26:09):
Uh.
Speaker 2 (26:09):
Is there more uniformity to commercial then or is it
kind of like residential every single thing is different.
Speaker 5 (26:15):
Uh, you know, I don't know how to I don't
know if i'd have the right answer for that. There
is uniformity for for sure, on on particular you know, purchasers, right, but.
Speaker 3 (26:27):
It is kind of all over the place at the
same time. You know.
Speaker 5 (26:29):
It's it's because you have you have the private groups
that come in the you've never heard of and they're
they're trying to buy this at the same time they're
trying to buy something in a different state, you know,
and you're trying and they're two different uses, so that
that kind of that part can get a little messy
depending on the bus.
Speaker 2 (26:42):
So I'm all this, I'm gonna ask this one that
I'm shut up and let you girls to ask some
ladies ask some questions. But what about you, you as
a company, and what would set apart uh outlier group?
If I am a commercial buyer or a commercial entity,
why do I want to come to you over I
don't know, CR is it CRE or CBRE or something
(27:02):
like that, is the only one that even comes to
my mind, to be honest.
Speaker 3 (27:05):
Yeah.
Speaker 5 (27:05):
So so they're the largest, right, cbre's probably the largest
commercial firm in the world, and they are global, they're players.
Speaker 3 (27:12):
Okay, you can buy and sell real estate in China
or United States. They have offices, got it. We're boutique.
Speaker 5 (27:18):
So the difference with us is we're going to be
giving a hands on approach. We're going to be tailoring
our entire experience to our clientele, got it. And because
we're a smaller firm, we get to commit a lot
more time to these clients than you would with the
CBRE or someone that has a lot of turn and
burn from people that are co calling and doing that
(27:39):
kind of thing, and they're they're turning over. There's a
lot of great agents at CBORY, but you know, when
it comes to local Florida real estate, we're going to
be able to tailor that experience a lot better.
Speaker 3 (27:49):
Got it.
Speaker 2 (27:49):
And I assume you're you're right here, so you're you're
knee deep in with the customers, so you're probably going
to get maybe some of those pocket listings, some things
that other people might not have.
Speaker 3 (27:58):
That's yeah, that's very popular this year, the.
Speaker 2 (28:01):
Word pocket list.
Speaker 5 (28:02):
So yeah, yeah, off market listenings and seller you know,
sellers working with brokers on their off market properties. You know,
so whereas previously, you know, off market would be a
for sale by own or they don't do that anymore.
You know, it's it's we still want it, you know,
pitched off market, but to a specific set of people.
Speaker 2 (28:21):
Now, cynya, isn't that like illegal on the residential side,
Like you can't really, I know, it's so grey, right,
but you're not supposed to market it unless it's listed
or something.
Speaker 4 (28:30):
There's all these weird rules. Yeah, and a couple of
years ago, like all these big changes came in. There's
a certain way to go about it. Oh okay, and
it's because it's MLS kind of came up with that
just because obviously they want to keep you know, on
that information within the MLS. So we do have to
have sellers sign you know, a document that if we
have a contract done, you don't want it on the MLS.
You know, they're specific things that we're saying, and you
(28:52):
could still do it like intra office.
Speaker 2 (28:54):
Right, intra office, like amongst the.
Speaker 4 (28:56):
Agents amongst the agents. Yes, but it's advertising to the
public that they don't.
Speaker 2 (29:00):
Want, yeah, which which is which is by the way,
a major benefit of Maharan Associates being that you guys
have over one hundred, right, so intra office doesn't mean
three people, it means a hundred. It means a residential realize.
Speaker 4 (29:12):
But things were so busy, you know, during COVID. That
was a great thing to have and a great thing
for buyers. It's like, hey, there are going to be things,
so you just let me know what you're looking for.
You know. Market was so hot, things were flying off
the shelves, you know. So we were able to get
in you know, some exclusive you know listings prior to
you know the public. Yeah, getting a shot at it.
Speaker 2 (29:32):
I like that word exclusive.
Speaker 5 (29:33):
Exclusive.
Speaker 3 (29:34):
People love that exclusive ex.
Speaker 2 (29:36):
I like boutique as well though that people do like that.
And I I framed my company. I say, well, we're
a Florida specialty lender, you know, and sometimes we'll say
boutique the same thing just kind of means, you know,
you're a small business. And I'm at the mall this
this weekend, and I could have gone to that to
that crumble cookie place. But then there's another little tiny
place that opened and called like American Cookie. You could
tell it was just like a mom who opened it up,
(29:57):
who's like working for the holidays. I'm like, well, I'm
I want to her. You know, I don't need to
give the money to crumble our associates.
Speaker 4 (30:03):
We're boutique too, very even though we have you know,
over a one hundred eight office. No, but I mean
we're a boutique firm. We're not you know, not corporate.
You know, we do things in a very like tailored
and you know.
Speaker 2 (30:17):
Right which both of you guys, it's the same things
is you're not You're not Keller Williams. You're not you know,
Caldwell Banker. And I'm not saying that they're bad, but
that's still big entities, right, you know.
Speaker 5 (30:28):
And I think a lot of people move towards the
local lately, even even on the retail real estate side,
like people are steering away from the Starbucks is moving
toward the local coffee shops that have great beans a
hundred percent.
Speaker 2 (30:40):
I actually look for that when I do Starbucks is like,
damn it, I have to go to Starbucks and then
Dunkin Donuts is on the bottom. Okay, right now, other questions,
what do you ladies have for MAC? I have a
few of them here.
Speaker 7 (30:50):
A huge one like I learned in the beginning when
I first started taking commercial listings and my residential real
estate career is triple net and learning about triple net
leases and what that actually means. And you have a
great way of explaining it.
Speaker 4 (31:04):
And she's still my question. I really done too much
of this, but that is obviously the biggest term that
I hear. You know, when you do try to dabble
a little bit and commercial, somebody wants to run an
office space and I'm like, triple net, Yeah, explain that
to us.
Speaker 3 (31:18):
So triple net. Yeah, you're right.
Speaker 5 (31:19):
I mean, that's that's a great question, and it's huge, right.
And so triple net stands for net net net, right,
and each net is net of something.
Speaker 3 (31:28):
Right.
Speaker 5 (31:28):
So you have CAM, which is comminary maintenance, think of
kind of almost like an h away, right, So exterior maintenance,
that kind of thing, Property taxes and property insurance, those
are your three ends.
Speaker 3 (31:39):
Those are net netnet.
Speaker 5 (31:41):
And so when you're leasing a building, it's great for
the landlord to do it as triple net because essentially
the tenant pays for everything and the only thing you
get is the you know, is the rent, which is
pure profit because it's triple net, right and back in
the day it used to be gross leases, and so
the landlords you know, would take on the property insurance,
(32:03):
the costs of the maintenance of the building and all
that themselves, and the tenant would just pay rent.
Speaker 4 (32:08):
So on that note, then like, is there a benefit
to the tenant for doing that as well?
Speaker 2 (32:13):
Uh?
Speaker 5 (32:14):
I mean, I guess it depends on how you look
at it, but I think so because it gives them
a little bit more, a little bit more control of
understanding what's going on, right, and they can also they
can also ask for reconciliation to make sure, you know,
if there's cams being paid and those kind of things,
it's it's all transparent with.
Speaker 2 (32:29):
So I want to We're gonna take a quick break
when we get back. I want to dive a little
bit more into triple net. I have a question on that.
And then there's another word called cap rate that i'd
I'd like to figure out what the heck cap rate
is on the business Happy are with Senni Akisha from
Maharn Associates and Frank the Bank. We'll be back in
just a minute.
Speaker 1 (32:45):
Now, we're back with some serious real estate and business
talk with three of Tampa Bay's top experts, your host
of the Business Happy Hour, Frank the Bank, Coodo, Rosa Bahiti,
and Senia Akishna.
Speaker 2 (32:56):
Hey, guys, welcome back to the Business Happy Hour, number
one show for all things business. An entrepreneurial to theneurial,
and we're learning about commercial real estate today with Mac
from the Outlier Group, and now Roseavahiti is also with
Max's team focusing on commercial real estate. Not because Maharan
Associates is not awesome. They are extremely awesome, but they
(33:16):
don't do commercial real estate. And Rose over here just
keeps buying stuff and still still having inflatable beds. But
she's buying real estate.
Speaker 6 (33:26):
And I'm about to lease that property to all right.
Speaker 2 (33:29):
Another inflatable bed coming for the next house. So we're
having fun with Mac over here. O. The question before
we took the break was about Triple Net and I
think we kind of want to want to follow that up.
Sendy of what we're saying right before we left. It's like,
is it separated well, I was.
Speaker 4 (33:43):
Just curious because yeah, if you have a building and say,
you know there's multiple spots to lease, you know, see
half the square footage you know is going to you know,
one company and then you know the other fight into two.
So yeah, with the triple net and like the insurance
property taxes, that's still split up evenly. So the half
the portion, you know, they would pay half of those
(34:04):
expenses and.
Speaker 5 (34:05):
Then correct, yeah, those so on a single tenant, right,
they would pay everything. But to your point, like, if
it's split up and you have multiple tenants, they're going
to pay a proportional share of whatever percentage of that
building they take up, right, So if it's fifty percent,
then they're paying fifty percent, yeah, right, and then and
then based on whatever and some of these shopping centers,
you know, it might only be they might only be
(34:26):
taken up two percent of building, right because you have
so many tenants, and so that'll be their proportional share
of the expenses for maintenance.
Speaker 4 (34:34):
Like is there a say of the tenants, like say
there are three tenants, Like do they kind of decide Okay,
well maybe we want to save a little money and.
Speaker 5 (34:43):
Not really, I mean, depending on if they're paying it
directly and then they have the optionality of the contract
with the maintenance companies. But most of the time the
maintenance is already set up and so they'll pay a
certain cam fee for the exterior.
Speaker 3 (34:56):
And that's a common area maintenance.
Speaker 5 (34:57):
That could be you know, the lawnmow, you know, mowing
the law on hedge in the grass, parking lot stripes,
you know, things like that that come out from from
the tenants in a way.
Speaker 4 (35:05):
Okay, so it's a set fee up front. All the
things are still agreed.
Speaker 5 (35:08):
On and set fee, but depending on the least language,
it can have you know, escalations and things like that
because like after you yeah, especially like after the hurricanes,
right all the all the prices went up because the
cost of labor and you know, trying to supply a
demand right right, it makes total sense.
Speaker 2 (35:25):
All right, So what's the next week? Got five five
and a half more? Man as I'm trying to think
of what's.
Speaker 4 (35:28):
The most So I guess that why why invest in
commercial real estate?
Speaker 3 (35:32):
Yeah, oh, that's that's a great question.
Speaker 5 (35:35):
So commercial real estate is cash flow, right, and you
have you can get into the accounting of it where
you have like thirty nine straight year depreciation. You can
you know, you can look at it from an accounting level,
but really most people are going to look at it
a couple of ways. One is, uh, what is your returns?
Your capitalization? Right, that's where we.
Speaker 2 (35:55):
Get cap right, going to.
Speaker 5 (35:59):
Split it in, And so they're looking at their capitalization.
How much money can I get back? And you know,
and these these companies, pee companies, they don't want to.
Speaker 3 (36:07):
Leave their cash sitting in a bank account.
Speaker 5 (36:09):
They want it working for them, right, And so they're
deploying that capital.
Speaker 2 (36:12):
By the way, PE is private equity.
Speaker 5 (36:14):
Oh sorry, yes, correct, private equity companies and and so
so investing in commercial real estate gives them the advantage depreciation,
the advantage of capitalizing on their money making money. And
one of the good things is the tenants are very
easy to deal with because typically the tenants are nine
(36:36):
to five, right, they're business owners. They're not complaining much
because most business owners, you know, have have it cut
out what they're going to do from from the point
of the day to the end of the day, right,
And and so you don't get you don't get any
kind of you still get something. I mean, I'm sure
there's some commercial property managers on here are saying careful,
(36:59):
but but you know it's less and depending on the use.
You know, you got retail office, but you might also
have like storage units.
Speaker 3 (37:06):
Well those tenants don't complain at.
Speaker 5 (37:07):
All, they're not even there, they've ben there, so you know,
so that the hassle free part is is is a
big part of it too.
Speaker 2 (37:15):
I've always heard the storage units are a really good investment,
is there?
Speaker 4 (37:18):
Oh yeah, speaking at cap rates, is there like a
typical target cap rate?
Speaker 3 (37:23):
Like you know what, Yeah, that's a good question.
Speaker 2 (37:26):
It's a really good one.
Speaker 5 (37:26):
So it really it really changes, right the more infill
and by infill, I mean like the closer yard to downtown, right,
your cap rates are going to be suppressed. They're going
to be they're going to be you're gonna be making
less capitalization right, less percentage.
Speaker 3 (37:40):
You know, maybe a.
Speaker 2 (37:41):
Quick example of cap rate like like throw out a
scenario so somebody understands what we're saying when we're sture.
Speaker 5 (37:46):
So for example, you know, you buy one hundred thousand,
you know, just keep it easy, one hundred thousand dollars building,
and you know you're looking.
Speaker 3 (37:53):
For a ten percent cap rate. That's ten percent of
your return, right, so ten thousand dollars a year annually, right,
So that's what that's what the cap rate essentially is.
Speaker 5 (38:02):
So that means I can buy one hundred thousand dollars building,
and I know every year I'm going to be profiting
ten thousand dollars.
Speaker 2 (38:08):
Profiting ten thousand dollars. That's the key to cap rate correct.
And what is your like sending us asking, you know,
is there a magical number?
Speaker 1 (38:15):
You know?
Speaker 2 (38:16):
Okay, downtown you're probably what seven or eight cap rate
something like that, and then outside maybe you're getting twelve
percent correct.
Speaker 3 (38:22):
And again the variables depend on you know, the use type.
Speaker 5 (38:25):
You know, office has a higher vacancy rate right now,
so you'd factor in those kind of things.
Speaker 3 (38:29):
You know, it's probably twice of what industrial is right now.
Speaker 5 (38:32):
You know, I think like office vacancy right now is
you know, closer to fifteen and a half percent. It's
got to be at an all time high right now, yeah,
because they'll work from home, right COVID stuff is right
whereas you have industrial where the cap rate you know,
the vacancy rates only like five percent, you know, and
so cap is an easy indicator to just kind of
get like a rule of thumb, right, Like I'm going
(38:54):
to look at this property and I know, okay, I
need at least eight percent cap But getting into the
math and you get in to more of time, money
and IRR, you get a little bit deeper into the
numbers to understand really what you are getting after.
Speaker 2 (39:07):
So the cap rate is just kind of your surface level.
You're an investor, you have one hundred thousand, you want
to make ten percent on your money. Hey, you know,
mac and Rosa, go find me something with a ten
percent cap rate. But then you're talking about the other
stuff like the depreciation, the tax benefits of owning the
real estate, the appreciation of the real estate itself, those
are not factored in when you're calculating cap rate.
Speaker 3 (39:28):
Correct, got it? Because then you have your equity and
time value of money and that starts.
Speaker 2 (39:32):
So going back to the whole question of why invest
into commercial real estate, I would say it's probably because
you may have a higher rate of return in more
long term tax benefits and growth benefits.
Speaker 3 (39:45):
Yeah, yep, well exactly right.
Speaker 2 (39:47):
We get a minute last flow hit them with another question, girls,
what do we got?
Speaker 6 (39:52):
How is commercial real estate valued.
Speaker 2 (39:55):
Oh forty seconds to say that.
Speaker 5 (40:00):
So income approach which is going back to the cap
rate how much you want to make okay, And then
you have a use approach, which would be like comp
analysis what you guys are used to in residential right.
So depending on the buyer, it would it would go
to one of those things, whether it's an income roast
or you know.
Speaker 2 (40:16):
And that falls onto the finance because we can use
income or costs, which is a whole different world, or
we can do something called no income verification up to
twenty nine units. If you don't want to prove your income,
that's a whole nother thing. We left finance out of this.
But you know to call Frank the bank, you know,
to go to outlier group for your commercial real estate ROSA.
What's that number?
Speaker 7 (40:36):
Seventy seven six zero eight six two three five, got it?
Speaker 2 (40:40):
And Sania if we need our residential real estate, they're
going to call eight one three seven, five to five reel, seven,
five to five, reel. It's been a great show, Mac,
thank you for coming on, Thanks for having me.
Speaker 3 (40:49):
Frank.
Speaker 2 (40:50):
Let's buy some commercial real estate, guys and have a
great Christmas.
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