The Power of Relationships and Niche Focus in Commercial Real Estate with Cole Babcock

Cole Babcock is a commercial real estate broker and investor based in Decatur, Illinois. He started his career in real estate after completing an internship with a local real estate company. Cole's entrepreneurial spirit led him to focus on commercial real estate, where he saw the potential for bigger deals and higher paychecks. He joined forces with Tim, a seasoned commercial real estate broker, and together they dominate the commercial market in their area. Cole's portfolio includes various properties, such as an old gas station, a car wash, and a big box retail facility. He also partnered with Rafique Moore, another successful investor, to acquire and stabilize industrial buildings. Cole emphasizes the importance of being in the right rooms and building relationships with potential investors and tenants. He uses a combination of cold calling, mailers, and personal letters to stay top of mind and find motivated sellers and tenants. In this conversation, Cole Babcock shares insights and advice on commercial real estate investing. He emphasizes the importance of focusing on commercial real estate for long-term investment and scalability. Cole discusses the different ways to structure deals, including forming LLCs with partners or raising money and paying a preferred return. He also highlights the value of personal relationships in finding and closing deals, as well as the importance of underwriting and having a clear investment criteria. Cole encourages new investors to find their niche, stay in touch with local brokers, and practice underwriting deals.
Takeaways

• Entrepreneurial spirit can drive success in commercial real estate
• Building relationships and being in the right rooms is crucial for finding opportunities
• Timing and seizing the right deals can lead to significant returns
• Consistency in outreach efforts, such as cold calling and mailers, is key to staying top of mind
• Commercial real estate deals can take time to close, but the rewards are worth it Commercial real estate offers long-term investment opportunities and scalability.
• Consider structuring deals through LLCs with partners or raising money and paying a preferred return.
• Building personal relationships with brokers and tenants is crucial in finding and closing deals.
• Understand the importance of underwriting and having a clear investment criteria.
• Find your niche and stay in touch with local brokers to discover potential deals.

Hope you enjoy & God Bless!
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