Blue Dirt
Blue Dirt: Commercial Property Investing delivers expert insights and strategies for building and managing a successful commercial real estate portfolio. Whether you're a seasoned investor or just starting out, this podcast uncovers market trends, financing tips, and key investment principles to help you thrive in the industry.
Blue Dirt
Why Today Is Always the Right Time to Invest in Commercial Real Estate
Take a deep dive into the world of commercial real estate investing as we tackle the perpetual question: "When is the best time to invest?" The answer might surprise you—it's today, with a crucial caveat. The real question isn't timing the market, but whether you're buying the right asset at the right price.
We break down the psychology of investment timing and why so many people get stuck looking in the rearview mirror, lamenting missed opportunities rather than seizing present ones. Learn why successful investors focus on disciplined analysis and conservative modeling rather than trying to time market cycles perfectly.
The episode provides actionable insights on how to prepare for commercial real estate investment, from cleaning up your personal finances to building essential market intelligence. Discover why reviewing hundreds of properties—even ones you don't buy—builds the intuitive understanding needed to spot genuine opportunities.
Particularly valuable is our discussion of how to handle today's higher interest rate environment. Rather than obsessing over rate fluctuations, we explain why the focus should remain on whether a property still meets your return metrics after accounting for financing costs.
We also dive into the critical aspect of selecting the right investment partners. Learn why alignment of investment goals, financial capacity, and time horizons makes all the difference between successful partnerships and problematic ones. Our candid conversation reveals why someone who needs immediate returns or is investing all their available capital might not be your ideal partner.
The episode concludes with practical advice on building multiple banking relationships and handling rejection—a natural part of securing financing. Whether you're a seasoned investor or just starting out, these insights will help you approach commercial real estate with the discipline, knowledge, and relationships needed for long-term success.
Learn more about Blue Commercial Properties on our website.
Welcome to Blue Dirt, the podcast that digs deep into the foundation of commercial real estate investing. Unlike most real estate shows that focus on dealmaking and market trends. Blue Dirt gets into the nuts and bolts of what truly builds long-term value the building itself. We break down how to spot deferred maintenance before it costs you, why a solid preventative maintenance program is a game changer and how triple net leases can maximize your investment returns. We'll also explore the importance of strong landlord-tenant relationships and how they drive stability and growth in your portfolio.
Michael Carro:Whether you're a seasoned investor or just getting started, blue Dirt gives you the practical knowledge to make smarter, more profitable decisions in commercial real estate. It's time to get your hands dirty and build value from the ground up. Let's dig in. Welcome to the Blue Dirt podcast, where even idiots can make killing in commercial real estate. Today's questions that we're hoping to answer are one when is the best time to invest in commercial real estate? Two what do the current interest rates? How do the current interest rates affect our decision-making process and what can I do to properly prepare for my next investment?
Don Redhead:I don't know if we'll get through all three, but we'll try.
Michael Carro:What's the best time to invest?
Don Redhead:Uh, my motto is today Well, you know, uh, it's probably not the right answer, but I like it.
Michael Carro:So let's talk about psychology for a second before we dive into the question. Um, over the years I've ran into a lot of people and a lot of times what you always hear is is man, if I would have invested back, then I would. You know it's. Everybody operates in the rearview mirror and but if you look at the history of real estate over a long period of time, it has always seemed to gone up. Have there been a couple of blips? Yes, but if you are a, always seem to gone up. Have there been a couple of blips? Yes, but if you are a, we are a price per square foot buyers, so we typically buy opportunities and so if the market does drop, it typically doesn't drop below what we're buying things for. But everybody focuses on man, oh, man, if we would have bought that corner back, then, oh. And I'm going to tell you, stop looking in the rear view mirror. You can look at it from a historical perspective, but focus on the here and now.
Michael Carro:And I think Don, to some degree, is right. It's always a good time to buy commercial real estate. The question is are you buying the right asset, ok, and are you paying the right price? It's always the right time, but it doesn't mean it's the right price, the right location or the right asset, okay. So that's where preparing yourself for the acquisition process is important. So when is the right time? Well, take yourself, for instance.
Michael Carro:So if you were going to invest number one, are you prepared? Number one, number one have, are you prepared number one financially? Are you prepared time-wise? If you're the type of person that wants to purchase and then put all of the sweat equity into the property, do you have the time? Do you have the support from your family? Can you get away from the kids and the wife to go do this work? Are they involved with you? Are they supporting you? All right if you're the woman, are they supporting you? All right If you're the woman, is your husband supporting you? I mean, it doesn't really matter who you are, but is the time has to depend on what you are looking to put in. Don, it's his full-time job. So, don, if we buy a property okay, we're working on a property right now yeah, let's take that, that restaurant we're about to buy what type of time is now? That one's a little different, because that one seems to be in pretty good condition, so, so usually we buy a real big problem children. This oh yeah, but let's, but it's. Everything has issues yeah it.
Don Redhead:It does seem like I had some issues. They've done some, maybe expansion, uh, a little bit to the footprint of the building, and they've. However, they tied it in wasn't proper, but overall, uh, we just finished doing a lot of the inspections that we've talked about in the past. Right, uh, we've gotten the sewer lines.
Michael Carro:Forget the past, if somebody's listening to this podcast for the first time. What inspections have you already done?
Don Redhead:so what we've done so far was mechanical, electrical and plumbing we're just waiting on the roof.
Don Redhead:Now, right, um, if we see something that's of concern, that looks even a little bit concerning or or, uh, maybe sometimes even out of caution, depending on the size of the investment, we'll bring in the structural uh engineer just to look and and consult. But, uh, overall we've got those three complete and just waiting on the roof and all have come back overly positive. And let me clarify, they've come back very positive relative to everything else that we usually buy. Yeah, because we do. We just accept that.
Michael Carro:So let's assume that you were buying this by yourself and you had a full-time job doing something outside of real estate. What time and effort would you need to put into this property, away from your family?
Don Redhead:I don't think this one would take very much time. To be honest, um what?
Michael Carro:would you paint it, would you clean it up? What would you do? I mean there, I mean, while it may not need those significant investments, you still would want to do certain things.
Don Redhead:I would clean it up. What would you do?
Michael Carro:I mean, while it may not need those significant investments, you still would want to do certain things.
Don Redhead:I would clean it. That's one thing that I. It helps potential tenants really visualize what they're trying. And it's always a line that you walk right, you can get in there and do a bunch of stuff. You could paint it. But you may paint it and they their brand is a different color, right, they may want something totally different, a totally different vibe. So you're always walking that that line of do I improve it or do I, do I save that money and potentially offer it as TI to a new tenant? Or say, hey, I'm going to paint it. You know, when we're showing it, hey, just so you guys know I'm going to paint the property, but I'm waiting for a new tenant to confirm what color I'm going to go with. And of course we'll, we'll put parameters on that.
Don Redhead:But a lot of times you're walking those those lines with this one. I just get in and clean it up and that's, that's easy. I mean we could get the grandma to watch the kids for a few hours. The wife goes there, I go there there, roll up your sleeve, just clean it, and just just so it shows. Well, right, that's really what you're trying to get. Yeah, the biggest thing accomplished, because all the other stuff is relatively fine, as it is right and so then the timing has to do with okay.
Michael Carro:Well, when you're modeling out this investment, you have to assume that you're going to have a certain amount of vacancy. So in this case, this is a restaurant and lounge. When we model things out, we are ultra conservative. So this is something that I always recommend is don't try to fool yourself, because you'll fool yourself into bankruptcy. So if you believe that and you need to understand what the market rate is if you believe the market rate for this type of asset in this location I believe it's probably $15 to $18 a square foot I'm going to model this at $12 a square foot, right? So I'm going to model it below market, okay. And then I'm going to assume that it sits vacant for six months, and actually the way I modeled it was, I can separate the building into two. So I'm going to lease up half the building in six months and the other half in 12 months, okay? And then, even though I think I'll be 100% full in 12 months, I always keep 10% vacancy throughout the remaining term in my modeling process. And then we use the CCIM discounted cash flow analysis. So I buy day one of year one and I sell day one of year six, so it's a five year hold, and then I predict the sales price. So during that modeling, this is where you have to be very disciplined.
Michael Carro:And we look for a 20% internal rate of return after tax Well, I like it after tax, right? So that's? And why do we need that? And I've explained, and I will always explain this over and over, because if I miss, then we're probably still in the double digits and if I completely screw up, we're still probably getting a positive return in the single digits, right? What I never want is to lose money. You don't want to lose money, I don't want to lose money. So don't fool yourself Just because you can manipulate things and give it to, maybe, your lender and they'll buy it. That doesn't work, it doesn't matter. You want your lender to be your partner, and so don't model things in a way that is really difficult to attain. You want layups, because if you hit it right on the first one, then you'll do the next one. Right, you'll do the next one and then 20 down the road. You have all successes and that's what you want.
Don Redhead:So yeah, and the part too that shouldn't really be glazed over at all is that price per square foot. If you're modeling it at 15 or 18, right, that it's going to do wildly successful, but it still makes money at 12. It's so important because if you get into the next down cycle and you can drop your rate down to the $12 a square foot if it's vacant and you're still making money and you can beat out everybody else in the market because you have the space that someone can afford to slide into, you can weather the storm and get through that downturn. You may linger a little bit past it, but you made it through with this asset still producing some money or at least worst case, paying for itself and not costing you money to where you can retain it, get through the storm and then come out the other side and then increase rents, hopefully with another tenant.
Michael Carro:So the best time is? I do believe it's now, but I believe it's always now for me and for Don. But you still have to be extremely disciplined on what you're paying, what you're buying and the market conditions. You have to always be ready for that. Now, how do the current interest rates affect your decision making? Well, during the modeling we just mentioned, using the discounted cash flow analysis, we're going to put in the terms of the loan and it's going to still produce a certain return on investment. And if it meets your metric, produce a certain return on investment. And if it meets your metric, whether the interest rates are 3% or 8%, if it still spits out the positive cash flow that hits your mark, then you do the deal, the deal we did a couple of years ago. We had one loan that was 8%. We have a whole bunch of loans at four percent. It doesn't matter to me what the interest rates are. If it pencils during my modeling, I buy the property, so I don't care about that right. Um, now do we want free money at?
Don Redhead:four and four and a half percent well, of course we do.
Michael Carro:Who doesn't? But the reality of it is is it's not going to stop us from buying if we can still get the desired return on investment.
Don Redhead:Yeah, yeah, I mean, they had to live through that in the late 80s, right? High interest rates, extremely high interest rates. And you get through that. They are still making deals happen, still having things work, but you just have to. You may have to sharpen your pencil a little bit.
Michael Carro:You may have to. You may have to sharpen your pencil a little bit, you may have to to get a bit more creative, but there's always deals. There's always deals and high interest rates, you know, are higher. I'm going to let me just tell you the deal that we're talking about buying right now. We're getting at six and a quarter. I'm pretty pretty happy about that. The other deal that we're buying up the street here 6.43% I'm happy with that.
Michael Carro:I don't worry about tenths of a percentage. I mean don't get me wrong you always want it to be less. Who doesn't? But the reality of it is is, you know, some properties as investors, we're harder to underwrite, and and you know so. I'm just grateful that we have a lot of bankers that we consider good partners for us, and so that's my take on interest rates. Anything else on that, don, no, no, okay. So what can I do In this case? What can you do to prepare for your next purchase? A ton you should be preparing every day. And research, yeah, talk about research. Don does it all the time, that's probably there's.
Don Redhead:There's one part to it that is is, I think, really the most important part, which sounds like it doesn't make sense, is on the surface. You're looking at these deals and you're kind of comparing. You know the the price to purchase, what the current market is. If I was going to release it and you're you're trying to pencil all these deals. What you really need to be doing is just looking at vast quantities of these deals and getting just more familiar.
Don Redhead:I'm going to say on almost like a macro set, because if you look at 200 properties over the course of a month and you don't pull the trigger, if you look at another 200 the next month, you're going to get a lot more comfortable. And a lot more comfortable because you're seeing the trends, you're seeing kind of how the market's unfolding and you're just learning. You're really learning what's happening in the market for that type of maybe asset class or the location or all this stuff. Just keep looking at it as a source of interest and education and you'll be able to see where the deals are. They'll start showing up. Oh my God, I can't believe that price. That's phenomenal. I just looked at 200 retail centers last, last month, and they were all double and this one looks great. It's at least enough for you to to dive in a little deeper, right Um.
Michael Carro:So looks at properties and what you're. What Don's really articulating is you're gaining market intelligence, all right. So you need to understand the properties and the price per square foot that they're being sold for, and you need to look at those same like properties and what they're leasing for those same like properties. On what they're leasing for and there's a lot of variables, because one location should be higher and one location should be lower, based on supply and demand, traffic generators, traffic counts, a lot of factors, density, demographics there's a lot of factors. So, just because you see something for $150 a square foot and then something else for $75 a square foot, the $150 still might be the better deal. So it's important that you understand a lot of other factors. Now we're price per square foot buyers and so if I see something that, let's say, the warehouses right now are, on average, $100 a square foot, well, if I see something at $50 or $60 a square foot number one it's going to raise my eyebrows. I want to see what's going on with that, okay. Number two many times it's in a slightly degraded area. Okay, all right. So that would justify a devaluation in a slightly degraded area. Okay, all right. So that would justify a devaluation in a price per square foot, but maybe the devaluation should only be 90. Right, and so if I don't understand all of these data points, then I'm not going to understand a good deal. If it bit me in the butt.
Michael Carro:Okay, so that's what Don's talking about. You got to get a lot of looks on these properties in the butt. Okay, so that's what Don's talking about. You got to get a lot of looks on these properties. Also, if a property, a warehouse in this area is leasing up at $10 a square foot and we see them selling at a hundred and in this area it's $8 a square foot, but selling at $60 a square foot, well, this ROI might be a lot better. Right, you know, $8 a square foot on $60 is actually better than $10 a square foot on a hundred.
Michael Carro:So you have to understand both the sale and the lease to make for it to really make sense and bring it home. And then, of course, you know, then you have the demands based on areas, because certainly distribution points along interstates and highways might be better suited than a location that's in a residential neighborhood. So there's a lot of factors, but that's why, when you say take a look at 200 properties you have to. Over time it'll become this intuition and we are very fortunate because this is the space we work in, so we're seeing properties every single day and I think that's our biggest advantage. Yeah.
Don Redhead:And something a little bit related. But you know, I love looking at kind of the random things too, that you may find where someone really didn't know what they're doing when they're listing it. Yeah, you can go on Facebook, you can go on, you can check land and they may have a building on there that they're attributing no value to. And you can go in these other areas and you'll find these deals that are not triggering anyone's searches. Talk about our one property. Oh, the land where they had it as that.
Michael Carro:Yeah, they may as well talk about it, because this is brilliant.
Don Redhead:So they had marketed it. Was it 10 years? 10 years it was on the market. So this piece of land was in an area where it really had no value but they were trying to use it as residential. If I'm not mistaken, they were saying, hey, hey, buy this larger parcel. It was about four acres, yep, and in a coast to downtown right, but it was. And it was like looking at it, I look at on the map and I'm like there's a, there's a building there. So you know, kind of run some, some back of the envelope math. I'm like, okay, based on what they're trying to sell it for the land, this is a phenomenal deal for this building and got over there Roof was actually in pretty good shape. It needed a lot of extra work but it was mislabeled. I'm sure we'll dive into this one more on a deep dive one.
Michael Carro:But that just shows you. Just to clarify, it was not mislabeled. It's just that this broker did not attribute any value to the building. That's right. So they were marketing it as purely four acres of land for about $300,000. It had a 12,000 square foot building on it. That was a piece of dung, but Don and I love those types of assets. So we get it under contract at $250,000. We put another 160. We have about $400,000 into the property after renovation. We had just put it on the market for lease. So now we have $400,000 into it. We've owned it for about four months and we get an offer and decide to sell it for $760,000 in less than six months.
Don Redhead:Yeah, you know, we were finishing the construction as it was closing. Right, it was that.
Michael Carro:And so it was one of those random things. Now again, we weren't planning on flipping it, because we really liked the asset and we don't flip many properties. In fact, we had got, we had paid extra to get a 10 year term. But when we got this offer, we're like, well, golly, we can, we can turn around and make a good lick here, and then we sold it. So. So there's, this property was on the market for 10 years. Everybody had seen it. You know, we hadn't seen it because it was kind of the in this residential neighborhood, but it was only one block off of a main street and it really worked out well and the and the guy who bought it had a perfect use for it and it he's really maximizing that asset. So it was really worth it for him. It was really worth it for us. We took that profit and actually bought two properties and then we brought 415, right, and then we brought Maxwell.
Don Redhead:Correct.
Michael Carro:So we took this profit and bought two other properties, paid cash for them, so now we own these other two properties debt-free. So it's just a little monopoly and having a good time with it. So how can you prepare for the deal? Review the market, look at properties, clean up your personal financial situation? Ok, because you're going to have to go to a lender, or even to a partner, and ask for for money in all likelihood, unless you're going to pay cash right. And so get rid of these randomness and be disciplined. Don't live beyond your means. You want to live beyond your means. Be disciplined now. Enjoy saving money so you can then invest it into this passive income that you're going to try to make, because that's what we're all working here for is we're working for passive income. So I go to work every day, work my tail off at my day job, which is being a commercial real estate agent for other people, and then the money that I make from my commissions I then invest into commercial real estate. Don goes to work every single day as a property manager for commercial real estate, and then he takes the money that he makes and he invests into real estate as well. So don't quit your day job. Lean into your day job, but make sure you take that money and you save it.
Michael Carro:Ok, so, clean up your personal financial situation. Also, pay your bills. Pay your bills. Pay them on time. Pay them quick. Don't carry credit card balances. Pay your stuff off. Be financially responsible.
Michael Carro:I know that's tough for a lot of people. Everybody wants everything to be get rich quick. I'm telling you we don't deal with get rich quick, we deal with get rich over time. And I'm going to tell you you don't have to be highly intelligent, I'm an idiot, don's an idiot, and we're making a killing in commercial real estate. All right, if you like partners.
Michael Carro:I love partners. Personally, now, I don't seek blind money. I like to bring in my best friends into the deals. You know, and, and I really enjoy the camaraderie. And why do I do that? Because to me it's fun. Everything I do is relationship driven. I love having Donna as my partner. I love having my best friends as my partners. So you know, and, and, and we all put our own money into these deals, and so it's relationship.
Michael Carro:So if, if you are the type of person that enjoys having partners, well then start lining up these partners in advance and make sure that you guys build a model together. But when you build these relationships for investing, make sure your goals are aligned. If you are the type of person that wants to invest for long-term investing, don't go and bring on an investor that expects you to flip the property in six months. Ok, if your goals aren't aligned, it doesn't mean that they're right and you're wrong or you're right and they're wrong. You just have to have alignment in your goals, that's all. So make sure whatever your goals are, it's aligned with what your partner's goals are. Ok, especially if you're the one who's going to be doing the work. You have to be in a line.
Don Redhead:OK, and don't be afraid to share that. Some people want to get a little sheepish when it comes to that. It is a lot better just to go full open book right then and show hey, this is how I'm viewing this process. I'm viewing investing. This is what I plan to do viewing this process. It's how I'm viewing investing. This is what I plan to do. Don't get into this and then have to figure a way out of it. In a year when your goals aren't aligned, Just fall on the table. Let it all there. It's definitely beneficial.
Michael Carro:One more thing on that. I'm glad you mentioned that If you bring on a partner that this is all the money that they have, that's probably not the right partner. And the reason why I say that is because if this does not produce the return on investment in the timeline that you expect, you don't want them coming to you saying, oh you got to buy me out, you got to buy me out. Bring on a partner that can afford to be patient in time. You know I think I mentioned it before that you know our average investments starts to pay back by the end of the third year and then, from that point forward, it typically pays something every year. Right, we don't? We still work every day, so we don't need this money to pay our bills. Ok, so if you find an investor that needs this money to pay their bills, you may not want to have them as an investor. Ok, make sure that the money that they give you is something that they can live without. They can live without Okay. Also, hopefully they have more in the tank because on occasion you need to go back to them for a capital call.
Michael Carro:Let's say, you begin your renovation and you discover something that takes more capital. Well, if you didn't raise enough on the initial raise, then you have to go back and do what's called a capital call, where you go back to your partners and say, hey, listen, we need to do another capital call for $20,000, $50,000, $100,000. You need to put in your pro rata share and if they don't have the money, then your operating agreement will have clauses in there. But that's not what you want, right? You need to invite people into your deal that can afford to invest and they don't need that money right away. Okay, um, anything to add on that?
Don Redhead:there's probably a lot, I mean. Another one that comes to mind is you know you can go to people who will, who will, as you begin this kind of journey, as you're looking at things they're all about you know, hey, yeah, let hey, yeah, let me know. I want to give you money.
Michael Carro:I want to give you money.
Don Redhead:Right, and then, and then, when it comes down to it, it's, it's okay. Hey, I got this under contract and, and you know, this is what the points. You know, this is the price per point. How many do you want? Uh, now's not a good time. Now's not a good time you know it's that.
Michael Carro:So I would say probably have more partners that you're looking to go to than you need or you think you initially are going to have. Well, I tell you, I've got, I think, over 40 deals under my belt and I'm very fortunate that I've never had to go to somebody that didn't come to me first. The only people I ever call are people that reached out to me and said hey, listen, you know, I really want to invest with you. And when I select a property or get a property under contract, I kind of look at the property and say you know who do I think would be a good investor for this asset class? I could have a partner over here that is a partner of mine in five properties that I don't think would enjoy this asset class. So a lot of times I just kind of decide and I say you know, I typically invite one other high net worth investor maybe two, depending on the asset and then many times I'll invite my team in my office who then might take you know, who may not have as much money, but they might take one, two, three, five points on a deal, but they wouldn't otherwise have the opportunity to invest and they're not on the bank note. They're not personally guaranteeing. The personal guarantee is what I do, but then that allows everybody to share in ownership and share in the pride of of of ownership.
Michael Carro:Now I'm fortunate in what I was going to say is, if I select in my mind these two people, I pick up the phone and Now I don't know if I'm a jerk, but if they say no, they're probably not getting another call. And to Don's point, I've had people say yeah and so I give them a call. Oh, no, it's not a good time, they're off the list. Ok, because if I have orchestrated in my mind that I think you're the right fit or I want to give you an opportunity, I don't need your money. I do it because I love relationship with other people and I really enjoy that process. So to me it's really fun. And because at the end of each year Don and I put together a big partner meeting. We celebrate that evening, so we have people that come in and fly in from out of town. We have we have a big celebratory day where we do all the financial review and then we go and have a wonderful dinner and we break bread and really just enjoy each other, and I mean my best friends from childhood, are involved in these deals and and I love that, I love the fact that they can come in and share in in in all the in the investments, and then sometimes we'll just kind of go around and tour the properties and some of these guys have never even seen the properties that they've invested in.
Michael Carro:And now listen most of my partners on on on properties. It's it's one or two of us, okay, so we don't. It's not like it's offered to 50 people, so one we may own. Two of us will typically own 80 to 90%, and then, if we offer it up to the whole team, they might take 10 to 20%, but the 80 to 90% are we're on the loan, and so all that to be said is make sure you find partners that are in alignment, and if you're new to this, like Don said, you might have to line up three or four people because the timing for them may not be right, and so you might have to make several calls to get that, to get that money. Six or seven, six or seven, okay.
Don Redhead:Aaron, that's out of caution.
Michael Carro:And the last thing the last thing I wanted to talk about is banking relationships. So and you'll hear this throughout all the podcasts when we talk about banking, your favorite banker does not guarantee that they're going to give you that loan. While they might have a lot of loyalty to you as an individual, they have things within their bank that may not allow them to give you a loan on that particular asset or at this particular time. So you need to have a good stable of bankers, and what I do for my clients is I will make an introductory email to eight to 10 different bankers, giving the banker a breakdown of the asset that's under contract, what type of loan and the terms that the client is looking for, and then I say contact them directly. I just make an introduction. I don't need to be a part of their back and forth, but I needed to caution. My client, as well as you, is you're going to get a lot of rejection from lenders. That's okay.
Michael Carro:I tell everybody I love a fast no. You just need to get to one or two good yeses to get this across the finish line. So don't be depressed when you get five or six quick no's. That and you might tend to take it personally, I get no's all the time. I don't care, you know. So just make sure your balance sheet is cleaned up. Make sure you get rid of all the riffraff on there. Pay your bills. Make sure you're always working to improve your credit. Don't spend money that you don't have. Don't waste money on things you don't need. The only thing you need is commercial real estate in your portfolio for the long term passive income.
Michael Carro:Yeah, I was going to say what was.
Don Redhead:I going to say Can.
Michael Carro:I go back to my seat right now.
Don Redhead:Oh, it was when you're talking about the lenders and getting the nose quickly, and just one thing that it just had stuck out, because I'd heard it so many times. You know, when you're talking to somebody, an outside client, who may have something under contract, and they do that, they reach out to their friend, who they've known, their banker, and they'll get the no and they go into a dark place Psychologically. They're depressed, they're done, their dreams are, to a degree, squashed right then. And I remember hearing you follow up with them a few times, a few different people follow up with them After a couple weeks, hey, how's it going? No, I can't do it. I can't do it. I got declined. Oh, okay, so you got declined by one, but how many? Well, that was the only one.
Don Redhead:Don't stop there, just keep going. There's, like you said, there's, there's, it's beyond their control. It has to fit into their diversified portfolio of the bank and how they have their, their, their you know metrics lined out for the upcoming future. So don't, don't let that know, don't let the no's of the people that you may call who you believe will be the initial partners. Luck favors the prepared, so get your financial house in order and then just be prepared to get told no a lot by everybody all the time. No's are good.
Michael Carro:Well, that wraps up another episode of the Blue Dirt Podcast where even idiots can make a killing in commercial real estate. That's a wrap for episode of the Blue Dirt Podcast where even idiots can make a killing in commercial real estate. That's a wrap for this episode of Blue Dirt. We're here to help you build smarter, invest wiser and create long-term value in commercial real estate, one solid foundation at a time. If you found today's insights useful, be sure to subscribe so you never miss an episode. And if you know somebody who could benefit from these discussions, share Blue Dirt with them. Got questions or topics you'd like us to cover? Reach out. We'd love to hear from you. Until next time, keep digging deep, stay sharp and remember real value is built from the ground up. See you on the next episode.
