Diversifying with sale leaseback industrial real estate with Drew Wahlgren
- E70
- 42:57
- August 17th 2021
Join Duc and Steve as they chat with Drew Wahlgren about diversifying investments with sale-leaseback deals and their rise in popularity in today’s industrial real estate market. Drew is a real estate investor and the Director of Capital Markets at MAG Capital Partners. The commercial real estate firm specialises in industrial sale-leaseback structured investment and development. At MAGCP, Drew provides private, cash-flowing direct assets of commercial real estate. He also works with investors and lenders alike to provide the equity needed for their investments. After all, Drew believes that aligning capital markets in both debt and equity can help scale acquisitions in commercial real estate. Today, he shares with us his experiences, from managing different tenants to working with an in-house credit analysis team. There’s a lot to unpack here, so stay tuned and enjoy the show!
Learning is Half the Battle
Drew Wahlgren has had numerous entrepreneurship experiences. Among those experiences, one valuable lesson he has learned is that the best way to get started in real estate is to be interested enough to ask questions. People often know enough about a business before getting into it, and while this may be true to a certain extent, some people take preparations too far that they forget to even start in the first place. After all, everyone starts somewhere, and the best way to learn is to find out what works for you in practice. Sure, there may only be 24 hours in a day, and you don’t have to do everything in those 24 hours.
About Drew Wahlgren:
After eight years of working as a risk analyst and passively investing in real estate, Drew Wahlgren left the corporate world and jumped into commercial real estate. He started his journey as an entrepreneur at 21, after earning his BS in Finance from CSU Hayward. Nowadays, Drew enjoys educating investors on alternative investments, specifically net lease real estate at MAG Capital Partners.
Outline of the episode:
● [00:51] What led Drew to pursue entrepreneurship.
● [01:52] The fundamentals of sale-leasebacks and how secure it is for cash-flow.
● [04:10] Why a tenant would take a sale-leaseback deal as opposed to others.
● [08:08] How to conducts credit analysis on tenants and the benefits of an in-house team.
● [13:46] The different tenants who occupy their properties and their buyer’s perspective.
● [19:01] What do their hold periods look like as they managed varying tenants.
● [23:32] The biggest risk in managing time during holing periods for value-added units.
● [26:00] Where Drew sees the future of the sale-leaseback space going.
● [28:57] How sale-leasebacks are growing in popularity due to the influx of investment opportunities.
● [31:55] The best book Drew recommends other than Rich Dad Poor Dad.
● [33:19] Drew Wahlgren’s superpower of being a fantastic cook.
● [34:08] The most important lesson he has learned over his career.
● [35:57] His advice for the busy working professional to achieve financial freedom.
https://www.millionairesmindsetblueprint.com/
Resources:
● Website
● Am I Being Too Subtle by Sam Zell
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The Cashflow Project
This is for busy professionals who are looking for financial freedom through passive income, with a focus on cashflow assets in Multifamily Real Estate. We will be covering a variety of topics such as buying, managing, and selling real estate assets, specifically apartments.
To learn more about us, visit tricityequity.com