The Real Estate Investing Club

Industrial Real Estate: 8-9% Cap Rates with One Tenant

Gabe Petersen Season 1 Episode 599

Join an active community of RE investors here: https://linktr.ee/gabepetersen

INDUSTRIAL REAL ESTATE INVESTING 🏭

Discover why industrial warehouse properties are becoming the secret weapon for smart real estate investors tired of dealing with hundreds of apartment tenants! In this episode, I sit down with Jens Nielsen from Open Doors Capital who controls over 2000 apartment units and 100,000 square feet of industrial space. We dive deep into why industrial properties offer 8-9% cap rates compared to 4-5% on apartments, and how managing one tenant instead of 200 can dramatically simplify your investing life.

MULTIFAMILY TO INDUSTRIAL TRANSITION 📊

Jens shares his journey from starting with small fourplexes in Albuquerque to syndicating 200+ unit apartment complexes, and eventually discovering the power of industrial real estate. Learn why the headaches of apartment management, rising insurance costs, and constant tenant turnover pushed him toward warehouse investing. He breaks down his recent 30,000 square foot industrial deal that went from vacant to fully leased in just three to four months with a national telecommunications tenant on a four year lease.

FINDING AND ANALYZING DEALS 🔍

Get insider knowledge on how to identify undervalued industrial properties in markets with 3-4% vacancy rates. Jens reveals his buying criteria for BC class warehouse space with 15-20 foot ceilings, why he targets 8-9% cap rates, and the critical importance of avoiding point of sale inspection cities that can hold your escrow money hostage. Learn about the shocking upfront broker commissions on industrial leases that can cost $100,000-$200,000 before you see a single rent check, and how to structure your deals accordingly.

Want to learn more about our guest? Connect here: https://www.facebook.com/jens.nielsen.5243 https://www.instagram.com/opendoorscapital/ https://www.linkedin.com/in/jens-nielsen-multi-family-real-estate-coach/

Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen

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