StripMallGuy

Four-year-old's been playing with a friend non-stop all summer. We decided to invite the parents over for dinner. Met them a couple times briefly. Really nice people, but didn't know much about them. They come over, we start chatting, and turns out they operate a small chain of mom-and-pop retail businesses in New York City. I ask a few questions, and their faces light up as they talk about the business. They had no idea their story is exactly why I fell in love with the strip center business 22 years ago. In 2019, the wife wanted to start a simple business. She was curious about it, and ran the idea by her husband. Neither of them had previous experience operating the business, but the more they dug in, the more they wondered why the opportunity was so wide open. They studied the industry, the suppliers, the customers, and the costs, etc...moving forward made sense based on the numbers. So, with no previous experience running such a business, they dove in. Business started booming, and they opened location 2, and then 3, and they just signed a lease for number 4! As we spoke, we finally asked for the name of the business. So they revealed the name (which I won't do here, because it really doesn't add to the message, and I want to protect their privacy). As soon as my wife heard the name: "I love that place, I go there all the time!" Bottom line, I can tell the business is a huge success, with 4 locations just 5 years after the idea. I can tell there will be many more. So, what stood out to me? What do they have that sets them apart? First, they are both warm, nice, normal people that are easy to relate to right away -- I can tell this is the culture of the business, and the customers must feel it. Second, the wife has had a natural passion for the business since she was a teenager. It was a hobby she loves, and had no idea it could be a business. The way they spoke about their employees stood out very quickly. Many of the employees are in their early 20s, and they took pride in being there for the employees, work-related or not. When I asked how many locations they wanted to open, they were proud of their pace of around one per year. They learn something each time, and let the business grow organically, with the next store selection based upon how ready they feel, and ensuring the last location is up and running. This is something I commonly see with lots of great operators. They never say "I want 5 next year, and 8 the following year." Great operators open the next location when it feels manageable to do so, and after stabilizing the last one. They also show up every day. They know a business can't run itself, and are involved in all aspects. So, the formula: -pick a business you'd do as a hobby -study the business deeply -be friendly and down-to-earth -care about your employees -open next location only when ready -show up -stay involved in all aspects Yup, seen this as the winning approach over and over.

Much of success simply comes down to consistently doing things you don’t feel like doing.

Who has the easiest sales job in the world?

Happened again. We pass on a deal that’s so obviously non-sensical, and months later a buyer will gloat on social media about buying it, and celebrate it as a win. I’ll never stop being surprised at how often investors overpay for mediocre properties with no upside.

Great brokers are curious. They want to know why the buyer is pursuing a deal, and what returns they’re after. They’re naturally curious about where things stand in the due-diligence process, and what the bottlenecks are. They want to know if the title report’s been ordered, and call the escrow officer when they notice it still hasn’t been received a week later. They want to know if the appraisal’s been ordered, the results of the roof inspection, and which lenders are being considered. They’re monitoring if the escrow’s on track per the contract, know the deadlines by heart, and they get ahead of any requests for additional time. They’re aware of surprises that may impact the price, and help come up with solutions. They’re not just outside observers of the process, they’re proactive participants. They love the journey that is the deal. And it shows up in their numbers at the end of the year.

Owners: If you don't have a clean Phase 1 environmental report, and you won't allow a buyer to test the soil, don't bother going to market. Keep your property. Save everyone the time and effort.

Very common: Grandpa was an incredible businessman, built a huge real estate empire. Sixty years later, the grandkids just want to liquidate it all as fast as possible and each do as they choose with the cash. They don't care about Grandpa's empire. They want their freedom.

Multifamily GP pivoting into retail

Reality is, lawyers know how the redlining process is going to play out with very high certainty. They know which clauses the other side is going to push back on, how they’ll respond to those responses, and where the language will likely end up. They largely go through the back-and-forth motions, as they have countless times with similar documents, and in the end, they’re left with a few business points where the clients need to give direction. So, the obvious question is: Can’t artificial intelligence handle that whole back-and-forth process, have a lawyer do a quick review of the final document, and then reach out to the client for feedback on the final business points? Would sure save clients a ton of money as related to document review, and a whole lot of time. Result: More deals, much faster, for less money.

Join us tomorrow 🙌🏻