Turbocharge Your Real Estate Investing Strategies

[00:00:00] This week's Listener of the Week is Rachel Real Estate. Rachel, thank you for the five star review. DM us your mailing address and for all of you listening, if you leave us a five star review below, you might be next week's Listener of the Week. Week. I met a gentleman in a warehouse years ago, seeing the space, and this warehouse was once a grocery store, and it got converted into a warehouse, artist space, and now that warehouse is long gone, and it is a massive apartment development.

The gentleman told us the story of the property. His childhood home was on that block. And as every property came on the market, his parents would buy it. So, over the 1900s, when they were alive, living there, [00:01:00] and working and buying property, they accumulated property after property until they owned the entire block.

And this happens to be a major block here in Denver, Colorado. So one property at a time, mom and dad, of blessed memory, had bought this, what we call a real estate assemblage. Assemblage is when you take one property and you buy the property next to it, now you have an assemblage. And what we say with assemblage is, or in real estate in general, 1 ,plus 1 equals 3.

I'm going to say that again. In real estate, when you buy the property next door to your property, 1 plus 1 equals 3. And the reason is because of assemblage. The property, that Square block that I was telling you about, [00:02:00] sold for 20 million. Not only did mom and dad never put 20 million into that property. But one, they extracted rents from it the entire time they owned it, aside from where they lived.

And two, they bought it for way less, but since they had assembled the block, the value skyrocketed. As my friend and mentor Mikey says, buy your block. Essentially, if you own a property, buy the one next door. Now, I know it's really easy for me to be like, buy all this property. And I understand that for a lot of people, that's not necessarily reality.

But if it's your reality, you know, oftentimes people are looking and waiting for the perfect property. And then the property next door to theirs is on the market, gets sold to some other person, and then the rest of their lives. Or maybe just after they listen to this [00:03:00] podcast, they're going to drive by the property and say, I should have bought that property.

I've heard it so many times, you literally wouldn't believe it. So maybe you're waiting for the perfect property. Maybe you didn't realize that the value in real estate assemblage, or maybe you don't want to buy a house. right? Maybe you want to buy a commercial property instead. Maybe it's just a financial stretch, right?

But in real estate, if you play the long game the way mom and dad did to that warehouse owner, it's going to pay dividends in the long run. You and I've had this discussion before. Commercial real estate is a long game. If you want the quick fix. If you want the fast money with no effort, which doesn't really exist, commercial real estate is not for you.

This is a long game. If you want to live a 1% life, you have to do what 99% of other people won't do, and that's just [00:04:00] have patience. Like, what's funny is it's not doing anything. All the while they're catching the appreciation of the property and collecting rents along the way. Have you ever heard of the game Monopoly?

What's the goal of the game Monopoly? It's to buy your block. And have you ever landed on a block and you couldn't afford it and then the rest of the game you were like, man, I could have won if I had just bought Virginia. The folks who made Monopoly are not that creative, right? This is reality. This is how this happens.

My dad always said, you want to work in real estate, you want to own real estate, get in someone's way. Right. So think about that block that that gentleman's parents had bought. Imagine if there was one house on that block they couldn't buy. Okay. So now, hypothetically, the family inherits that whole block.

A developer comes and says, I want to buy this whole block. And they say, we're down. But then maybe there's a property [00:05:00] right in the middle. And it's the only property on the block owned by somebody else. That's getting in someone's way. Now, your property, when you're in someone's way, is worth so much more to that developer than if this property was just on another block.

So, another strategy, get in someone's way. We'll talk about that in another episode, but right now we're talking about buying the whole thing. So the question is, how do I do that, right? I own a home. I own a commercial unit. How do I buy my block? And the answer, my friend, is right in front of you. Go talk to your neighbors.

Go knock on their door. Give them a call. See what's up. Get friendly. And I know people who tell their neighbors, like, I want your house. I will buy your house. And, you know, as long as it's fair market, anything goes. Learn your block. Think with [00:06:00] assemblage in mind. I wish I knew how much the family had bought those individual properties for, but I guarantee you it was not

anywhere near 20 million dollars. I'm gonna be really honest with you. I think it's kind of ironic when like parents put in a ton of work and then their kids get to inherit it all and fight over it. However, generational wealth like that is an unbelievable gift. And the assemblage in and of itself is truly incredible.

And so mom and dad up there watching them sell off the family farm, tear it down and build a high rise of luxury apartments here in Denver. I'm sure they're smiling because their kids just bought Park Place and Boardwalk Avenue or whatever those two most fancy monopoly properties are. So, what questions can I answer for you?

DM me at @avivarealestate. If you want to learn [00:07:00] more about either brokering commercial real estate or real estate in general, head to the show notes for the freebie. It's a really good freebie. I spent a lot of time working on it. And next week, we're going to be talking about the number one mistake to avoid while investing in real estate.

Thank you for your time today, and we'll see you next week.