147: Always Underwrite to an 8 CAP, with Shannon Robnett

147: Always Underwrite to an 8 CAP, with Shannon Robnett

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest is Shannon Robnett, a real estate developer and syndicator with over 35 years of experience. Shannon shares his advice on becoming a successful syndicator, selecting top-notch service providers, and managing risk in the current market. You don’t want to miss out on this episode! 

Learn more about Shannon and his story at shineinsurance.com/managing-commercial-real-estate-risk!

“I don’t like paying taxes. I’m very patriotic, but to me, that’s not a patriotic duty.“

01:13

Shannon is a fourth-generation realtor. For a while, he didn’t want to work in real estate, however, after completing college, he recognized the immense financial potential within the industry. 

Over the course of his 35-year career, Shannon has taken on various roles, including overseeing construction projects, working as a developer and multifamily asset manager, and investing in many deals. He started syndicating in the last few years.

“The first thing that I try and do when I talk with an investor is make sure that they understand who they are.”

06:23

Shannon shares his best pieces of advice on how to become a successful syndicator.

  • Find a mentor and work up to your goals slowly but steadily.
  • Understand what kind of investor you are, how high your risk tolerance is, and what type of deals fit your lifestyle.
  • If you’ve lost money, figure out why, and don’t do that again. 

“When you’re underwriting correctly, if everybody’s doing it, it’s probably a really good time to not be doing it.”

20:40

Shannon shares his insights on selecting top-notch service providers while minimizing associated risks within your team. His advice is to prioritize expertise and experience over cost. Also, always think at a higher level about your business and look for the most dedicated service providers with good track records.

Towards the end of the episode, Shannon shares his risk mitigation strategies in the current market. He’s always managed risk from an 8-cap standpoint. If he can’t get an 8-cap on the investment, he won’t pursue it. He’s emphasizing not being influenced by the market and having a solid underwriting strategy.

About our guest, Shannon Robnett

Shannon is a Real Estate Developer and Syndicator with a principal focus on Multifamily and Industrial real estate in the greater Boise area. His accomplishments include:

  • Involved in Boise Real Estate Market for 35+ years
  • 2nd Generation Builder & Developer
  • 4th Generation Realtor
  • Involved in over $250MM in construction projects ranging from multi-family, office buildings, and municipal buildings to schools, industrial projects, and mini storage
  • A history of over $140MM in successful developments
  • Has under management over $100MM with a wide range of investors

Mentioned in the show:

  1. shannonrobnett.com
  2. Robnett’s Real Estate Rundown
  3. His LinkedIn
  4. Shineinsurance.com
  5. www.shineinsurance.com/managing-commercial-real-estate-risk
  6. 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 Shannon Robnett for taking the time to share so many great insights with us

 
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Until the next time, We truly appreciate you listening.

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