Welcome to the Managing CRE Risk podcast, where we believe that if you can identify, understand, and manage risk, you can take huge leaps in your CRE journey and find more success along the way. Our guest today is Brian Olson, a real estate broker who specializes in 1031 exchange. In this conversation, we dig into one particular market, Kansas City, and talk about how to find the best deals, create good relationships with brokers, and make sure that you’re running your 1031 exchanges correctly. His great advice applies to any market in the country, so you don’t want to miss out on this insightful episode!
Learn more about Brian and his journey at shineinsurance.com/managing-commercial-real-estate-risk!
“There are a lot of the reasons why Kansas City’s drawn a lot of investors here recently.”
At the beginning of our conversation, Brian explains how the Kansas City market works and why it’s a particularly good market to invest in. Kansas City is very landlord-friendly, has low taxes, and has many cash-flowing assets.
Currently, every market in the US has issues with the inventory of multifamily properties. The triple net assets are a bit easier to find and have better cap rates. Brian is specialized in 1031 exchange, which has great cashflow opportunities in Kansas City’s stable market.
“In real estate, the brokers are typically not like your used car salesman. They’re there to help you and to build a long-term relationship with you.”
For people who want to invest outside of their states, Brian has some great advice on how to lower their risk.
- Get referrals and find a good off-market broker by using your network.
- Be proactive. Have constant communication with your broker. Tell them why you like or don’t like a deal and what you’re looking for.
- Try to understand the market and have realistic expectations.
“Your Qualified Intermediary, broker, and lender are going to be key team members for you.”
Brian explains the biggest risk he sees people taking in commercial real estate that creates concern. They overpay 10-50% on smaller assets rather than finding off-market deals. The best way to reduce your risk is to build a relationship with a broker, especially in a 1031 scenario.
The biggest mistake people make around a 1031 exchange is closing out on a property but not putting their funds within a Qualified Intermediary. It’s also important to make sure to know and engage in a market that you’re going to exchange into.
About Our Guest, Alex Olson
As a 1031 Exchange Real Estate Agent, Brian helps clients identify and close real estate transactions in the Kansas City market, St Louis Market; and the states of Kansas and Missouri. An expert in assisting buyers and sellers (in-state and out-of-state) looking for multifamily properties in Kansas City, St Louis, Kansas, and Missouri.
Mentioned in the show:
- His LinkedIn
- Jeremy’s LinkedIn
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
Special thanks to Alex Olson for taking the time to share so many great insights with us
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