Commercial Real Estate Investment Outlook 2023 - US Economy Is Not Driven By Market, But By Policy

Janeen M., DE

1:01 pm EST

I have the property under contract!  Yeah!!!  I am responsible for finding the title company.  They want me to select one today.  With the last couple of properties, I had under contract, the broker hired the title company.  This required very little input on my end.

1. What do you think I should ask the title company?
2. Should I expect to make some type of upfront payment?
3. My EMD is in an escrow account with Keller Williams Realty Centre, but they are not a title company. Is that ok?

1:06 PM EST Cherif talks about how important insurance is

Tom T., IL

(New JV Partner)

1:10 PM EST

Up to this point, when contracting properties, I have had the Seller’s Agent provide a contract and I would request revisions as necessary.  This time, the Seller’s Agents insisted that I submit a contract. Since they accepted all my terms, I did not want to be totally inflexible.

I have been looking at the contract you provide for the JV Partners, and I am confident that it is very thorough!  However, it is a bit challenging for me, partially because it is much longer and in-depth than any contract I have worked with up to this point.  I will need to submit a contract next asap.  Should I get a lawyer?

1:11 Cherif talks about talking about “money” and how you should NOT be uncomfortable

1:12 PM EST Fernando has a question in the chat about insurance rates

Garrett T., FL

1:13 PM EST

1) Do you see another real estate downturn similar to 2008-2009 and if so how could we benefit from it?
Cherif answers with the 3 categories of people who will be affected by the market

He shows calculation.com

CHERIF TALKS ABOUT A TRAINING ON WRAP-AROUND MORTGAGES, SUBLEASE, OPTION TO BUY, ARBITRAGE

1:21 PM EST Cherif references Tiffany/Brian’s Fund (use for possible Cracking the Code promo)

1:22 PM EST Cherif talks about the Notes Business

Cherif talks about what he has been talking about. He reviews/reminds us what he discussed would happen in the market in 2023.

1:27 PM EST Solvency- you need cash flow to sustain

1:27 PM EST What is the trifecta of disaster?

1:30 PM EST Most of your problems in life come from liquor and leverage

You have to be very creative…

(When there is problem is LIQUIDITY)

1:31 PM EST Cherif compares 2009, to how and why he started a RE Fund

1:32 PM EST Residual value in your life

1:33 PM EST RECAP

1:33 PME ST Raising capital is two-fold

1:35 PM EST Garrett’s QA2- Cherif talks about the earnest money ALTERNATIVES

2)Whether someone is a JV Partner or not, do you have strategies and alternatives for EM when submitting a contract? What are alternatives to raising capital or negotiating out of putting earnest money down if the individual doesn’t have the money? This could be for any type of commercial asset.

1:38 PM EST Cherif talks about how the US economy is not driven by MARKET, but by POLICY

VOID ANALYSIS

1:41 PM EST

Anthony L., OH

I know Cherif has many years of experience in hotels. I have an opportunity to develop a Microtel hotel from the ground up with a team at Wyndham and other potential developers that I can bring in. My question is with Cherif’s experience how would a micro-tel hold up in a cyclical cycle? Or should an investor stick to higher-end brands such as Marriott or Hilton?

I would like to ask Cherif a question live to get his feedback. I would like him to give me a presentation for me to share with my Network of Investors who want to set up a Fund, like me.

1. What is Cracking the Code on RE Funds vs. syndicating?
2. What is the benefit of working with Cherif vs an attorney only?
3. Why is the timing right to Crack the Code on RE Funds?
4. Why are you helping people set up a RE Fund like you? Aren’t you creating competition?
5. What is the benefit of launching a RE Fund in 2023?
6. What advice do you give to new RE Fund Managers to launch in 2023?

1:42 PM EST 2 Factors to consider

1:44 PM ET Cracking the Code Presentation

1:52 PM EST WHY NOW

!:56 PM EST Oshin’s QA1

Oshin B., CA

1) Does seasonality play a role when contacting tenants as far as their response time is concerned (i.e.: Holiday Season such as the end of the year)?

Tenants Representative

2) What about the geographical location of the property and seasonality as far as weather is concerned since the majority of the tenants would want to do improvements on the property?

1:58 PM EST Oshin QA2

1:59 PM EST

Nat R., CA

1. I am starting a full rehab on a duplex in Modesto. I have narrowed it down to 2 designers and 2 contractors. What factors should I consider in making my decision?
2. How would you suggest I contract with each job? What advice do you have with your experience?

At 1:59 PM EST Cherif answers the question and gives his LIST OF 10 CRITERIA for working with CONTRACTORS/DESIGNERS

At 2:09 PM EST, He RECAPS it

2:09 PM EST Jay’s QA1

Jay W., Toronto

1. Hi Team, interested in your Joint Venture program. We are located in Canada, wondering if your boundaries extend this far, does this business model operate the same way in Canada as it does in the U.S.? If so, are you still taking on new partners?
2. (2:11 PM EST) We have a carwash business in Toronto. I would like to bring it to the US. From a business standpoint, what do you suggest? How can we break into the market? Is now a good time? What are the steps to start?
3. Do you suggest development?

2:13 PM EST Miles QA1

Miles M., NC

1. Would you buy a 5-unit strip mall building on seller finance or a master lease? Will I be expected to pay more if I’m buying it on seller finance terms or as a master lease option?

Master lease, find the win-win. Cherif prefers the master lease with the option to buy.

2:20 PM EST Miles QA2

2. What advice do you have for a broker outreach campaign to get pocket listing/off-market properties sent to us? What are the top 3 types of commercials I should focus on? I was thinking (of storage, apartments, and strip malls)

Seller financing and wrap-around mortgages. Cherif talks about how the banks react to this strategy.

2:23 PM EST TOP 3 TYPES OF CRE properties

Cherif likes small hotels

2:25 PM EST Position storage facilities against RETAIL

2:27 PM EST QA3

3. Some tenants I spoke to want to buy the building vs lease, how do you approach that? How much would you charge the tenant? Do you have a sample agreement?

2:31 PM EST Miles QA4

4. I’ve noticed in my area that tenants tear the whole building down to add new building concepts instead of doing a renovation. ex: a Vacant Payless with a bigger sq. ft and lot was torn down and turned into a Dunkin Donut. So, does it really matter if the building is bigger or it is a 2nd gen restaurant if some tenants are more interested in the lot size vs building size?

2:34 PM EST Miles QA5

5. I’m a broker, how can I take advantage of using my license when buying CRE buildings for myself? How can I get paid multiple times in one transaction? (get paid a wholesale fee and broker commission (purchase & tenant fee)

2:35 PM EST Jean’s QA 1

2:37 PM EST Jean’s QA2

JeanL., FL

1. I own multiple properties in an LLC. Can I put a lien on the LLC to strip the equity? I already have your KMAGB set up. I own most properties in my name, but these are new in an LLC. Please advise.
2. Also, what makes your asset protection different than setting up a Family Trust?

2:41 PM EST Todd’s QA1

Todd M., CT

(Can’t make the call)

I have a property management company. My team is managing 200 doors. There is a lot of stress right now on all fronts. Do you have advice to energize the team and motivate them going into the New Year? I am going to expect them to give a little more and I don’t have much to offer as an incentive money-wise.
How should I kick off the New Year before they take off for Christmas?

2:49 PM EST Cherif talks about the best structures for people investing in DUPLEX

2:56 PM EST Todd asks about the motivation for his team and Cherif goes into a great case study and feedback with emotion

CHERIFISMS: Connect your plan to the execution of 2023 and create a climate….

There’s nothing like having a purpose…