How to Syndicate Triple Net Properties, with Ben Kogut

Our guest is Ben Kogut, a real estate broker and capital raising specialist with a focus on commercial real estate. In this conversation, we talk about what it means to be a passive investor in commercial real estate and how to find CRE deals, make offers, and succeed as an active investor. If you’re interested in investing in office, triple net, or strip malls in particular, then this episode is for you!

Learn more about Ben and his journey at reiclarity.com!

“Our mission is first and foremost to protect and then grow our investor capital.”

04:20

Ben is a commercial real estate broker in Austin, Texas. He focuses on office, retail spaces and triple net properties.

For a new investor, Ben recommends investing in triple net properties. Triple net is the acronym for “net, net, net”, the net of the taxes, the insurance, and the maintenance of the property. The tenants are responsible for these expenses. 

Ben compares multifamily and commercial real estate in the current market.

  • With apartment complexes, tenants usually sign 12-18 month leases. Retail and industrial leases are more complicated, however, they are more stable.
  • Currently, the profitability of multifamily deals is fairly low. The cap rates are better on office and retail properties.

“Timing is everything.”

21:19

Ben’s company has a large funnel and is looking at 800-1500 deals every week. They’re looking for high credit tenants, long-term leases, and deals that come on the market with around a 7.5 or 8 cap rate. They do around 16 offers a week and on average put 1 under contract.

Ben shares his best practices on how to win a deal.

  1. Send the offer within 24 hours after the property comes on the market.
  2. Send a long list of references along with the offer.
  3. Promise the seller that within 2 weeks of being under contract, you will physically be on site.
  4. Always do what you say you’re going to do.

Ben wrote a book recently called The Five Things to Consider when Investing in a Commercial Real Estate Syndication. In the book, he describes the 4 rules of cash.

  1. More cash is better than less cash.
  2. Cash sooner is better than cash later. In multifamily syndications, investors get their money at the final sale. CRE syndications pay a monthly dividend. 
  3. Less risky cash is better than risky cash.
  4. Never run out of cash. Make sure that you have reserves when you are involved in a commercial real estate project. 

“ I knew that my one thing was commercial real estate.”

37:48

At the end of the episode, Ben picks action steps from the REI Clarity Framework that are the most valuable to him. These are “Know Your Strategy” and “Find the Money”.

Ben was really inspired by Gary W. Keller and Jay Papasan’s book The ONE Thing. He learned how to simplify his life and find his true passion and mission that he can focus on. This reflects in his strategy as well.

Mentioned in the show:

  1. hjhinvestments.com/book
  2. His LinkedIn
  3. Gary W. Keller and Jay Papasan – The ONE Thing
  4. www.shineinsurance.com/reiclarity
  5. The REI Clarity Framework

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity

Special thanks to Ben Kogut for taking the time to share so many great insights with us

 
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Until the next time, We truly appreciate you listening.

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