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Buying Land in Cash, Industrial Outdoor Storage, Is Syndication Worth It? (Office Hours)
Description
Key Takeaways:
- It can be advantageous to pay cash for land/property and then take out a construction loan against it rather than bundling acquisition and construction into one loan. This makes the financing process easier for banks.
- Industrial outdoor storage is a good "covered land" investment that provides cash flow while waiting for future higher/better use development.
- When evaluating value-add deals, Tyler looks for 18-22% IRR and 20% annualized cash-on-cash returns over 3-5 years.
- Tyler sees opportunities in high-end residential house flipping over the next 2-3 years given the strong housing market, with margins of $50k-$150k per flip.
- If Tyler had unlimited funds, he would not syndicate deals and prefer to execute them solely with partner(s) who handle the capital/financing aspects.
https://www.tylercauble.com/podcast/episode160