YOUR DAILY REAL ESTATE INVESTMENT SHOW
July 14, 2022

The Ins and Outs Of Industrial Real Estate with Darren Smith

The Ins and Outs Of Industrial Real Estate with Darren Smith

In the 85th episode of Cash Flow Pro, we talk with Darren Smith, CEO of Solid Growth Properties. Darren went into military service straight after high school, where a colleague introduced him to real estate. After six years in the service, he educated...


In the 85th episode of Cash Flow Pro, we talk with Darren Smith, CEO of Solid Growth Properties. Darren went into military service straight after high school, where a colleague introduced him to real estate. After six years in the service, he educated himself on real estate and began investing in properties. In 2008, he was struck by the crash, but that did not stop him from getting back into real estate – especially – industrial real estate. Today, Darren will share his knowledge and how we, too, can learn from his mistakes and take on the industrial real estate sector.

 

Solid Growth Properties buys industrial and commercial properties in desirable areas for long-term stable returns. They work directly with sellers to create tailored solutions that maximize ROI. Solid growth prides itself in acquiring millions in real estate while prioritizing seller relationships and customer service.

In this episode, we discuss:

  • Over expanding your investments
  • Industrial real estate – how it works and what to look for
  • The importance of cultivating relationships and networking
  • The Philly industrial real estate market

 

Tune in on this episode to learn more about the industrial real estate world!

 

Find your flow,

Casey Brown

 

Resources mentioned in this podcast:

  1. solidgrowthproperties.com
  2. https://www.linkedin.com/in/darren-smith-cre-investor
Transcript

Casey Brown  00:06
Hey there, and welcome to today's episode of cash flow Pro, your daily real estate investing podcast and YouTube channel. I am here today with Darren Smith of solid growth properties. And we're going to take it a little bit different today than we normally do because Darren knows quite a bit about industrial. As, as most of the listeners know, we tend to shy toward the side of multifamily and some self storage and some consumer based, you know, real estate and real estate syndications and capital raising. But this is going to be we're going to talk a little bit more about industrial today, what folks look for maybe in due diligence for industrial and maybe you can take something that you learn here and put it into practice in your business. So Darren, how are you today?

Unknown Speaker  00:59
I'm doing fantastic, Casey, thank you for having me on.

Casey Brown  01:02
Absolutely. Man, we're always glad to have guests of bringing different angles to the real estate business. And, and of course, as you and I were talking before the show, there's not the we really have have done very little, if any industrial discussion on on this podcast, just simply because I feel like the industrial capital raisers in the industrial real estate investors are a little fewer and far between mostly because it takes it takes almost a whole different set of skills, I guess, if you will, different things you look for in a market during due diligence, obviously are different than what you would what you would look for if we were looking at doing a residential development or, or a multifamily development. So anyway, so tell us a little bit about yourself, and how you got started in real estate. And then we'll kind of lead into the discussion and see where the where the talk takes us.

Unknown Speaker  02:01
That sounds great. I'll, I'll keep the history part to a minimum because I know people want to hear just what am I doing industrial what's what's working, what's not. And in the current state, sure what my history goes back to did the military service after high school for a little bit. And that was a lot of fun, took me around and really glad that I went that route, got into real estate after almost six years in the service. And I did that because I was sitting next to a guy I was working in a computer job at the time. And he owned a couple of rental properties. And that kind of sparked the interest right there. I got every book that I could I followed that guy around, I picked his brain and we sat next to each other. So I would talk to him all the time, go to his crappy little grill in downtown Baltimore. And just watch what he did and learned it all. So I was handwriting letters, I did it all and that was through the mid 2000s. And like a lot of people back then I made some good money in real estate in the mid 2000s. And then I got crushed pretty badly. In the crash. I got way over extended I was investing in mobile home parks out of my state. So I had to like fly to get there. Thought I was big stuff and and learn that I wasn't and God took away some good lessons. So got out of real estate for a couple years. Fortunately, my computer job, he did really well. And so that was I was I was fine. But I just always had the bug and I really never lost it. And it was only maybe two, three years. And in about the 1213 year, I got back into it. I signed up for some wholesalers lists in my town, I was still doing residential at the time, I single family homes, trailers, that kind of thing was what I was interested in. And one of the wholesalers call me back and say hey, what kind of properties you're interested in. And by the way, if you're a wholesaler, you want to call everybody signs up for your list. You never know what you're gonna learn

Casey Brown  03:43
dry, you never know what you're gonna find either.

Unknown Speaker  03:48
Fine, but But I became his assistant. And here I was making really good money in computers and I basically worked for this guy for free for about a year doing everything I could answering phones, taking keys, pictures of properties, you know, whatever it was negotiating with sellers as well and made almost no money in that but learned a lot. And then just to cut to the chase.

Casey Brown  04:09
I just before we get too far separated from the discussion of of I want to go back and I know it's if you're like me, we've all been there where we're down we're out we're knocked on our feet or we're knocked off our feet where we thought we were big you made the statement I thought I was big stuff learned I wasn't I had had much the same type of story, as do I assume many people out there and I don't want to at all act like hey, if you've never been broke you're gonna go broke before you ever make it because that's not necessarily the case. But I I want to go back to that because what do you feel as Do you feel like over extension or over leverage was really like the key mitigating factor to that to what happened there? Or was there other like for For instance, my mitigating factor was a divorce. Okay? It was pure, plain and simple a divorce that just got ugly over some over over kids and some other stuff. And I think everybody has their mitigating factor but but without getting too far into maybe your personal business, I just would like, because I feel like if people know potentially what to look for, that maybe there's a chance we can help one person avoid something like that. That's the case. But what do you feel like was the main was the main thing there?

Unknown Speaker  05:31
Excellent question. And trust me, I spent a lot of time thinking about that. Because it was painful, oh,

Casey Brown  05:37
I have to mind as well, I just, you start questioning because you're like, Man, if I would have just stepped a little to the left, I might have been able to if I could have just made it another two weeks, or whatever, you know, so I know, man, it's not anything to be ashamed of, necessarily. It's like you said they're lessons.

Unknown Speaker  05:55
They are lessons and I and I took a couple weight away from that, that I still use today. Actually, the biggest one for me is as as investors as anything you do in life, you play this balancing act of stretching beyond your comfort zone, trying new things, taking risks, but not getting too far out over your skis to where you end up in a snowball. And I absolutely went as a retirement cup, I guess is the way you want to put it because I went outside of my area. And so my geography was one I went outside of an asset class that I was experienced with. And I went I went big when I did it. And you know, thinking oh, big numbers, people will probably use the 1% rule 2% rule, whatever they use, this was like the 3% rule. And when you see these numbers, you think, Oh, my gosh, this is amazing. And it really it sucked me in the lower of that. And so the main lesson I would give people is you want to push you want to try things, you want to put yourself out there, but do it in a way that that also can minimize your risk. And also the risks of if you're borrowing capital, the risks of the capital, the people that you're using. So the wait a couple of ways that I do that are the primary way is geography location. I have owned businesses in several different states doing flipping wholesaling, but I always had a presence there, I always knew the area really well had people on the ground that I knew really well. And now all I do is commercial I'm can get to that story. But I'm no longer in the residential side of real estate, I only do industrial. And everything that I do, I can get there within two hours, I want to drive I sit down, I just met with someone this morning, I was on the phone with them yesterday, set the appointment, and I'm there shaking his hand at eight o'clock in the morning. And I'm able to do that. And so when you're investing in something, learn when you limit yourself to the geography, you can learn it really well you can make the relationships, the connections, the repair people and just know stuff that you're never going to get when you are flying to a different city or driving way out of your way to do that. So that's what I do right now, even with industrial that was that was, if I had done that locally, and I could have gone and put my hands around some people's necks in two hours versus having to catch a plane ride, I could have headed off a lot of problems that I ran into.

Casey Brown  07:59
Sure. And then it's tough to you know, and that's what I think a lot of people, they see some of these bigger guys zipping across the country. And, and and while when you mimic yourself, and you become reckless to try to mimic somebody that may seem reckless, but really things are very calculated and very poignant and write direct. But you don't see that when people are sharing Instagram posts. If I'm not saying that's what you went off of his Instagram or Facebook, I'm just saying that, that so many times, people see like, like social media becomes your highlight reel, really, if you will. And I think a lot of people see that. And they think well, man, I can own 250 units in Austin, I can own them too. And while that's great and wonderful. The thing is, is that not all, not all residential real estate is created equal by by any far stretch, and I don't think I'm telling you, everybody's like, well, you don't need to tell me that, well, there's some people out there that do need to be told that, that when you you know, you really need to know these areas that you're investing in, and that you're looking at, because again, it's just not all created equal. And I think there's some of that going on right now. And particularly I know of a few deals that that man, it's just like, all it's gonna take is is for that lilypad to shift one little bit to the right or the left and then all of a sudden everything's off balance and it's gone. So that's really respectable that you that you were able to kind of put your finger on exactly what it was, what it is and then as as we're always so familiar with it's not necessarily how you got down in the dumps, but it's it's What what makes you is how you built back out of out of what you had out of what you had. And in the situation, you were given so much respect for that for sure. Because like I said, we've all been there. Well, I say we've all been there, at least I have. And obviously you have and some other folks that we know in the business have as well. So alright, so So going forward, I think we kind of cut you off a little bit there, you were getting into potentially how you you you had worked for, for the guy for a year at basically for free or minimal cost or whatever, to learn. And, and in some, some senses if you're like myself, we we jump in, we start learning things before I know it, I've accumulated the equivalent of an associate's degree in, in how to work my printer or something, you know, it's like, you just you dive in and you get things done. And you go, go, go until you learn it all. And then you move forward. So I guess let's kind of pick up there and, and let's talk about how specifically you got into the industrial space.

Unknown Speaker  11:02
Yeah, that's I'll segue into that by going back to a comment you made earlier on how different the residential multifamily is from industrial. And in some ways, it absolutely is. But in other ways, it's not in the skill sets that it takes. You have to learn a whole new language, so to speak, just getting into commercial it absolutely. There's a lot of new terms that you need. Industrial, especially all sorts of things you look for, and properties and locations that make a big difference. But for me, coming from the residential side, having bought or wholesaled, hundreds of homes through that business, the skill sets that I had for the processes for the marketing for the sales conversations, how to talk to a seller, that was stuff were working for free for a year, I said I learned and Associates in that and I got it for free, because I don't have to go pay for it. I got to work for this guy for free, and go do all those things. And then I built that through my business. I've been in several masterminds, you know, high level ones that have helped me grit through those. And I took those skill sets. And when I was looking at the commercial world, I got into commercial because I had some friends that were doing it or maybe I listen to podcasts like you people and just heard a little bit about it, it piqued my interest. And how I dipped my toe in was I took the same skills that I was using in my residential side. And I started applying to the commercial only at a higher level. So the same CRMs In fact, I use really simple stuff now. I've used all the big fancy was Bings and Salesforce is is Google Sheets now but that's another conversation. Sure. My for my marketing right now 90% of the properties that I buy and conversations I have are from very nice, those auto pin mailers, with handwritten and then a business card and with my pictures, my you know, the tracking and the follow up systems of everything is follow up. Everything is relationships. So I have sales. For customer, you know, for building owners, I have that CRM and I track that with follow up dates and calls and letters and things like that. But I also do it for my relationships. I have what I call a relationship management system. So all the brokers, all the contractors, you know, a friend of mine, she rents dumpsters to commercial properties. And you know, what a great person to talk to to know who's moving and who's moving out.

Casey Brown  13:09
Sure. There you go. There's your nugget for the day, right there. There it is. Everybody wants to know, well, how do you find this, that or the other? There you go. That's it. That's the answer. Look at the dumpster people they know.

Unknown Speaker  13:26
They know, email to Casey. So build those out. And so anybody who's doing residential right now, even if they only bought a couple of houses a year, something like that, how are you finding those houses you're finding through relationships, you're talking with people you're building, you're sitting down, face to face with someone across the kitchen table, if you can do that, just get out and start talking with people take the same things, apply them to the commercial world talk with brokers. One of my best brokers I've worked with, even to this day, it just because I went I saw I went and toured a 200,000 square foot office building. Why did I do that I have no business being in that building. But I met him. And through that conversation, I've learned a lot of other things. And he actually, I've hold a wholesale commercial as well. And on the industrial side, and he's wholesaled a building for me last year that I cleared over a quarter million dollars on that one, just because I started talking with people that I you know, it was no risk. What was the risk, being embarrassed, you know, getting in front of them not know what I'm doing. I was used to that from the residential side you've had sure your listeners already have that skill set.

Casey Brown  14:27
Well, and so many people spend so much time chasing the little money that the big money is being made by other people. I mean, there's just it's just It's unfathomable to me that people could ever and a lot of times people want direct immediate what am I trying to say they want they want direct immediate validation, whether that be in the form of somebody paying them for their time or somebody paying them to drive an hour away to go meet with somebody, when in fact That meeting could lead you to any number of different things. And so without, and that's part of part of what we do in the business. And I had somebody tell me that one time on the real estate sales side, we were talking about our I don't know, how much money somebody made doing whatever. And she said, you know, in real estate, when I look at the amount of hours like, like, on the sales side, and look at the amount of hours that I actually, every week spin doing this job, I ended up she's like, I make like, what, $800 an hour or something, it was some stupid figure. And obviously, there's a lot of other little things that fed into that going to lunches and going to dinners and, you know, the things that surrounded it that maybe weren't being figured into the direct hourly time that it took to do that business. And so it's just, but they're again, man, I mean, look at that. I mean, you hit a homerun on something that that just, you just were fine, I'm assuming was probably unexpected. But it came from a relationship that you had nurtured and and walked down the road to do it. So where So you told me before the show that you're in Pennsylvania? What does that two hour window kind of look like and what types of industrial stuff is going on there right now.

Unknown Speaker  16:23
Pennsylvania, in 2021, there's a corridor along 78 and 81 interstates that had the second most million square foot leases of anywhere in the country, but la last year. And so last year, this is absolutely exploding, we're within. I don't know the numbers, but we're really close to a huge percentage of population in the country, and also to a lot of ports along New York. So I love the industrial space around here. And now that said, I'm not doing a million square foot leases, I am a very little fish in the sea. I've only been on the commercial side for four years. And so I'm still learning, I'm still you know, I consider myself pretty new at this game. But really enjoyed a lot. So what I focus on is, I will talk to those people, I had a conversation with someone last week that had a million square foot building, but I'm not the buyer for them. I know a lot of people that are so I focus on anything that's 10,000 square foot and up. And I really liked the 20,000 200,000 square foot range. Those are, I'll tell you why I like those properties is they're not being built, there is a ton of building going on right now millions and millions of square feet. Within 20 miles of my house being built right now. The smallest building is 300,000 square feet and up. And the only exception to that are people who are owner operators will own the buildings or own the land for a long time. Prices are so expensive, and the economies of scale don't make the build something that's 50,000 square feet. So I'm closing on a 55,000 square foot building at the end of the month. And I couldn't be happier with it. Because nobody's building that. I know that even in a downturn, those are the types of buildings if you can subdivide it out and get an even smaller spaces that are always going to be in demand. Whereas if I owned if I owned a 30 year old 19 1970 built 300,000 square foot warehouse that's a couple miles off the highway. I'd be a little nervous right now, because there's so much new product coming on that yes, you're in Super demand right now. But what happens in that recession? What happens? You know, another Oh, 809 scenario. And it's not a matter of, of if but when, and it's not going to look like the last time I have a lot of people say what's going to happen in this market. I pat myself back, I called the last one, you know, a couple years out, I saw that coming. I still got hurt. But I call I saw that coming. I don't see what's happening right now I don't have that my crystal ball is a whole lot fuzzier, because so many things have happened with with between COVID Between all this artificial stimulus coming in which is now causing, you know, inflation and how does the economy work in an inflationary market? I know people that did deals back in the 70s that talked to me, like we got loans 15 18% And it still worked. But what does that look like? Obviously cap rates are and cap rates for your listeners are the percent return that someone's looking for on their investment. So if it's an eight cap, they're looking for an 8% Return on the NOI of what they're making on that property. If you as your cap rate as your interest rates go up, your cap rates also go up, which means your prices go down. But that can be a great time to buy as well. So everybody's scared oh my gosh, the sky is falling and the market is going to crash. We'll make sure you have some reserves in place. But this could be an opportunity to buy some things that are still solid properties solid tenants at a high cap rate so that when things do return back to normal, that you'll still be good. And I would say for somebody saying I'm going to sit on the side right now I'm going to put on everything in cash and not do anything well here's would be my advice. First off still stay out there still be talking to the seller still build up your let your CRM with three people you're talking to so your communication when that time comes. Learn everything you can, but number two, as long as you have some solid tenants in place with a solid Location. Location is critical. I think in industry for opening close to highways and on off access, but also long term debt on the property, I had the opportunity in this building and closing into the month to get a great rate for five year fixed or a decent rate at 10 years and I absolutely went with the tenure. I don't know what's gonna happen in five years, but I know that whatever happens I'll be able to ride that out. And as long as your property cash flows for that period, you'll be okay so there's a couple things I'm doing to protect myself for whatever happens here that I'm not sure what that's going to look like.

Casey Brown  20:32
Alright, so a couple of different things that I am trying to pick through here. So the first thing let's talk a little bit about the 55,000 square foot building that you said you're closed on into the month if you don't mind I mean can we go into without I don't obviously want you to be like is it 123 Main Street because you don't mind is by the time this airs it's gonna be it'll be it'll be closed but what was the capital raise? Did you do a capital raise on that? And then what was the purchase price what was the amount of the raise and how did because I think that the biggest at least for myself and again, I'm not an industrial guy so So Bear Bear in mind that whatever questions I asked are probably likely questions you get from from beginner in industrial as it is, but my first objection or reserve to even considering industrial is it seems to me that so all right. We had here locally ebonite used to build bowling balls here in our town, we were the main not only no we were the main place where they built them or whatever. And they had probably a building that much the same size that you had 55 out just 50,000 square foot building I guess I'm assuming again, I'm very much so a beginner at this in the industrial side. And so the thing that I witnessed when ebonite was was bought by somebody another company and they were like alright, we're closing the Hopkinsville plant now when they left basically there was a building there it had a roof it had you know it was it was a ton of square feet ton of square footage it wasn't didn't have high enough rafters for them to stack however many however many pallets a lot of the the factories use or want to be able to stack on top of one another. Now the roofs the roof lines weren't high enough. And so while that's just one little nuance of that particular deal industrial to me just seems like those properties become so ingratiate it in what are ingrained I don't even know if ingratiate was right where but ingrained in the day to day operation of that specific product. That now Hey, man, we're out peace. We'll give you we'll send you your last six months rent, well, then there you go. You've now you've got to build in those specifically had everything done for that particular company or whatever. And now you're like, Okay, now we got to try to rerun it. And it just, I guess to me, all of that has to come in and underwriting like that's the logical thought process that, hey, we need to underwrite for say two years vacancy or whatever afterwards? Because we don't know what's going to take place. But how does that work? I mean, just tell me a little bit dive into that a little bit?

Unknown Speaker  23:41
It's a great question. And it's probably one of the biggest barriers for people considering industrial or even even office and retail. In some cases, if you have one or just a couple of tenants, we're taking up the majority of your space. And so a couple of ways that I try and mitigate risk on things. So the first one is, when I'm looking at the building, the absolute most important thing for me is the location. If I'm if I'm in a good spot, if I can get to this building easily, if I can get a tractor trailer that backs in off of the road, and can we get completely off the road in those are important, does that have enough parking? So so the structure itself needs to be one that one that is valuable, and would be sought after? Even if this tenant leaves? The other thing I do look at for in just for the building is how adaptable is this to multiple tenants potentially. So I bought a building in January, it's 48,000 square feet. And there's one tenant in there. So if that tenant moves out, can I take that building and split it up into a couple of them? A couple smaller spaces so that I can least rent out part of it or at least cover my expenses at that time? And the answer on that one is absolutely yes. In fact, that was at one time for different tenants in that building. So that's another way that people can mitigate their risk on something like that. The other way to mitigate that for what I do is if I'm getting tenants in there, and this is what matters for the tenant. And this also matters for my financing is I want something long term enough and secured enough by the tenant that I know I can get to a point somewhere. Okay, if that happens, I have paid down the debt enough, I build up enough reserves, it's cashflow enough that time and be conservative with what you're putting aside, and the building that that I'll be okay. So when their lease expires, you know, fine, that's great. If it's, if it's empty for a year, it's in for two for two, not that big a deal. And I say that when the lease expires, but everybody's sitting there thinking, Oh, my gosh, what if they leave earlier, they're they're bought out. So if you have a low credit worthy tenant, you absolutely have to factor that in, if it's just if it's a mom and pop, or somebody who's newer, or maybe their finances aren't as, as good. Or if they have some clauses in the lease that allow them to get out very easily without any repercussions. That's a big risk factor. And you need to either account for that with a much higher cap rate, we're going to say, hey, look, if they move out, one of the important things I look at is what is their what is their rent that they're paying compared to the market rent for that building. So in industrial, we go by the price per square foot. So let's give a range of two bucks, eight bucks per square foot, it's in some areas, it's much higher, when you're when you're in cities, it can be even more. So we'll say if it's $6, a square foot is what they're paying right now, if you have a 50,000 square foot building, that's $300,000 per year is the rent. And we'll just assume that's triple net rent, triple net means they're paying for all the taxes, insurance utilities, you know, and a lot of the maintenance on those things. We get into triple nets and grocers and things if you want as well, sure, sure, sure, you have that $3,000 a year that's coming in, well, if the market rate for that building is five bucks a square foot, well, now I'm gonna be a little bit scared. Because if they move out, I'm not gonna be able to get another tenant in there at the same price that they were paying, I don't have to discount my rent that I'm charging. But if market rents for that building are seven bucks a square foot or 750, and they're paying six, I know that, hey, great, I take the single market and I bring it out at six. Or maybe I have to drop it down to 551 way under what the markets bearing. And you still have to account for some leeway in there. But I don't want to get it rented for a lot faster than another building that is at market at the seven or 750. So those are a couple things I do to to mitigate risk, and then making sure that it's it's long term enough for the debt that you have, make sure that secured for something that gets you through whatever, whatever rough times might come.

Casey Brown  27:25
Sure. Yeah, that's just again, I couldn't imagine that that wasn't one of your biggest objections to saying, Hey, let's go on board. So real quick, is we're getting we're getting close to the to our time here. About the how much capital Did you raise for this last deal? And how did that go? And was it a 506? B, or C? And how what what was that like?

Unknown Speaker  27:51
capital raising to be perfectly honest, Casey, you're gonna be some of your other guests, I'm sure gonna give a lot better advice on this, I've, for years been a guy where I buy it, I buy with my own money, and I played that game where I would make money. And then I go buy a building, and I'm very happy with my portfolio and the cash flow from that, but then I'd be broke, I wouldn't have cash. And I got tired of that. And so I have just only in the last year switched over to bringing on some small partners for buildings. And so this was you asked about this billing, specifically, it's the first time where I've tried to raise over a seven figure number for purchasing a building. And I was able to, I thought I had it lined up, this was a little bit of a roller coaster. For me going through this process, I had it lined up with a couple different people. And we were we were good to go. But it was one where the cap rate on this with the bank rates, it's a little bit of a thinner deal. It's it's an excellent property from location tenant, the condition of the building is almost everything's brand new. So from a long term perspective, this is this is an Class A for me, it's not a Class A building, but it's right up there with what I want, but it was a little bit thinner. And so the raise was a little bit tougher, and I had a situation where I was getting close to the end here. And one of the people that I was was gonna invest with me, they own some other properties and their their portfolio and they said, hey, look, I don't know what's happening. I'm not cash flowing these other properties, I really want to keep something on reserve and they backed out and honestly I encouraged them to do that because once they talked about their situation I said you absolutely need to back out of this because you're not someone that I want two years from now saying oh crap, I need money.

Casey Brown  29:24
Yeah, I need out I need I need some cash, I need this or, Hey, I'm going broke my trustees gonna be in touch with you.

Unknown Speaker  29:31
That's it. That's it. So you got to vet your your investors as well. And I'm learning that so I have several dozen people and I build that list out as well. By the way, my CRM I have a separate one for that. And I'm always talking with people and

Casey Brown  29:42
we've got basic you got three CRMs you've got broker relationship, just relationship CRM seller and then potential investors.

Unknown Speaker  29:53
That That's correct. That's great. Yep, sellers are my work with and then I use three You platforms. And by the way, I probably overcomplicated a little bit, I try and get as few systems as, as possible for my sellers, I use Google Sheet and I just put a follow up date column and I sort by that and I make sure I follow up with them. You know, wherever that's to

Casey Brown  30:12
say, Man everybody gets so everybody gets so tied in and I'm guilty of it as well, I get the latest and greatest Oh, man, this does this. And this does that. And at the end of the day, nothing substitutes the grid for dish. You know, no matter what system you got, you got to pick the damn phone up and call. And that's there. There's everybody wants to emulate whatever, but then then they don't want to actually thanks to it. And so anyway, I want to

Unknown Speaker  30:46
just just because you fish that that is probably one of the biggest things when I'm talking to people is they want all the features and all the auto thing in that commercial. If I had to say one thing, it is personal it is how can you make something as high touch and personal as possible, you're not dealing with lists of lists of hundreds of 1000s of people on residency sites. I list right now, I think it's about 12,000 properties total. And so I don't need to automate, I don't need some system that sends these texts and stuff. And people hate that crap. You want to you want to really get to know these people. And I, I could probably name dozens of people that I'm calling on a regular basis with their properties. And so that's why Google Sheet works for me. I've had sales for I mean, I've spent over $10,000 sending my Salesforce thing before I could use that I don't, because I want it simple. I want to I want to touch and how can I get to know these people? Well, so for all you people out there, don't spend all this time and effort on this, the back end stuff. You're here's one number if you're gonna here's here's your takeaway, we talked about the dog don't talk cars, people, how many sellers are you talking with every single week? That's your metric that you need to be tracking right now. All Yeah, your CRM, who cares?

Casey Brown  31:51
Yeah. And just and then it's the same as the same as when I started my podcast, they always said episode one is better than episode none. And when you look at it like that one, you know, I don't want to advocate that you need to call one seller a week by any means, but you don't make the make the first phone call. And once you make the first phone call, then concentrate on making 10 phone calls. And then once you make the 10 phone calls, the next week, concentrate on making 50 phone calls, whatever it is just start somewhere, start and get comfortable and figure out where what questions people are asking so that then you can come up with their objections, and a list of how you need to do it. So all right, as we're getting close to the end of our time, here, we have a couple of questions that we ask every guest that comes on the show. And there's no right or wrong answer, just answer them however you feel necessary. And then we will get to your contact information. And we will call it a day. So the first question is what is the best book that you have recently read or are currently reading

Unknown Speaker  32:49
best book I recently read I should I read so many that was good to be a model after I'll just say that one of the most impactful my mind for how I've changed my life in my business projection last year. And that was vivid vision. That's one were sitting down and don't just read it and kind of think about a little bit like I truly was the guy that I sat for hours at a time brain dumping everything I want and then putting that into a true vision. And doing that for my commercial business doing that for my residential business doing that for other things in my life. And it's made a huge impact. And I still to this day, I wrote that out and I read it at least every single week. And I do I do a bit of a vision for my day, just taking five minutes to mentally walk through that day. And that's sure I love it.

Casey Brown  33:35
That's great, man. And that's that's something and that's what I always try to tell folks to focus on people that come to me for education or like education, like I'm going to teach somebody something but I mean when people that call and say, Hey, can you tell me how we do this or how we do that and it's repetitive, instantaneous, you have to set that the next go way up, or the next way out there. And when you when you recycle that or rehash that every day and have a vision, you just tend to get there. So that's great. That's awesome. Next question, what is a dream vacation that you have either taken or hope to take?

Unknown Speaker  34:13
Oh, gosh, my couple of really good ones. I have to say my best best vacation was wife and I went visit my parents they were living in Egypt at the time and we did a Nile cruise and so I highly recommend the history of that the people are unbelievably amazing, so nice. It was very high class and and just just loved everything about it.

Casey Brown  34:34
That's awesome, man. Yeah, Egypt is definitely on my bucket list. That's there's just there's so much there. We went to Rome and I thought man the history was gonna walk my shoes right off of my feet because I just the walking was normal, but if you could take an hour cruise and see some of that stuff, and man I bet that was that was awesome. So All right, well then listen, if the listeners heard something that resonated with him today, or maybe they want to reach out and be in touch with you or have some questions, maybe about an industrial deal they're looking at, how can they reach out and talk to you or just get in touch?

Unknown Speaker  35:13
I'd love for anybody to reach out if they need any help looking for a partner just or just how to get started. My email is Darren da r r e n at solid growth. properties.com.

Casey Brown  35:26
Awesome. Well, Darren, thank you so much for your time this morning. We really do appreciate it. And listeners, if you enjoyed what you heard today, please, please please head over and leave us a five star review and tell us what you think about the episode. And Darren again for from myself, I want to thank you so much for being with us today. Again, industrial is not something that we touch on or law from so maybe hopefully the listeners heard something and maybe that maybe that's the direction they want to go and they can reach out and get some advice or talk or invest or whatever. So anyway, hope everybody has a wonderful rest of the day. And Darren thanks again. Thanks, Casey.


Transcribed by https://otter.ai

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Darren Smith

Solid Growth Properties