BCF 304: Investing in Industrial Real Estate
with Chad Griffiths
Real estate investing doesn’t have to be a mystery anymore. Successful industrial real estate investor, Chad Griffiths, gives us the pros and cons of real estate investing and how he’s grown his portfolio to $18M.
As a passive or active investor, you may want to consider investing in industrial real estate to diversify your portfolio. Today’s guest, Chad Griffiths, has 15 years of experience and has an $18M dollar portfolio and a $4.1M deal on the way. He says: “Investor real estate is perfect for people looking for steady returns and consistent rent growth without the volatility.”
Chad stumbled into industrial real estate investing after discovering residential real estate wasn’t for him. He joined a brokerage firm who was handling mostly industrial real estate and hasn’t looked back since.
Industrial real estate seems to be a mystery that no one is familiar with. Chad describes the basics of understanding industrial real estate into 3 steps:
- You first need to know everything about the property and what the tenants would potentially need.
- Get on brokerage websites, like NAI, and go through market reports. Going through the motions of looking through everything, you will begin to see patterns.
- Drive industrial areas on the weekend. Even after 16 years, Chad still does this once a month to keep up on the market. It’s all about taking the time to gather and hunt for information. Just like “driving for dollars.”
Real estate investing isn’t for everyone, but here are Chad’s 3 reasons why:
- The lack of understanding leads to a barrier of entry which equals higher returns.
- Less management with longer leases. Chad’s first investment had a tenant who leased for 10 years and he hardly had to lift a finger to manage it.
- A long term strategy with increased demand over time.
Demand is going to continue to be greater than supply over the next 12-24 months. Any concern would be beyond that if developers get greedy and overguild. But he is optimistic that there will always be demand in industrial real estate.
Bulletproof advice from Chad: Hire a broker that is exclusively devoted to your market. They will show you and teach you everything you don’t see. They protect your blind spots and their expertise will be invaluable to growing your portfolio rapidly.
Be sure to check out Chad on his YouTube and LinkedIn channels for more about real estate investing.
- Is it tough to find people to rent places out to in industrial real estate?
- An honest look at the outlook for industrial real estate in the next 12-24 months.
- Chad’s number one tip for getting into industrial real estate.
- Bullet proof advice on being successful in industrial real estate.
- Chad’s 3 reasons why YOU should get into industrial real estate now.