E35: Flex Industrial - Meet Alec McElhinny with Land Play
Summary
In this episode of ALT Investing Made Easy, Alec McElhinny shares his journey from being an actuary to becoming a commercial real estate investor. He discusses his current project in New Braunfels, Texas, focusing on flex industrial space and its advantages. The conversation explores the growth potential of New Braunfels, the benefits of investing in flex space, and the importance of lease structures in commercial real estate. Alec also provides insights into his investment strategy and projections for returns, including his approach to real estate investment, focusing on the importance of understanding cap rates, market projections, and cost-saving strategies in construction. He emphasizes the significance of operational control in development and highlights the unique selling points of industrial flex spaces. Alec shares his personal motivations for pursuing a career in real estate and the importance of capital formation in the industry. The discussion concludes with insights on investment goals and future collaborations.
You can reach Alec McElhinny at: linkedin.com/in/alecjmcelhinny2027747777
Sponsored by:
Real Advisers Capital, Austin, Texas
Real Advisers Capital, Austin, Texas
Special thanks to:
For more information: AltInvestingMadeEasy.com
Please contact us: info@AltIvestingMadeEasy.com
Roland Wiederanders: Roland@grablemartin.com
Sarah Florer: sflorer@grablemartin.com
Takeaways
- Alec transitioned from an actuary to real estate investing due to dissatisfaction with traditional career paths.
- Understanding interest rates is crucial for achieving retirement goals.
- Flex industrial space offers flexible use and is considered recession-proof.
- New Braunfels is strategically located for real estate development between Austin and San Antonio.
- Alec's current project focuses on building flex space with quick approval timelines.
- FlexSpace can be built quickly, often within four to six months.
- Investors can expect a 12% preferred return and a target IRR of 22%.
- Triple net leases are advantageous for property owners as tenants cover additional costs.
- Projections in real estate should be approached with caution and not seen as guarantees.
- The growth of the I-35 corridor presents significant opportunities for real estate investment. Cap rates are essential for making educated investment decisions.
- Market projections can be conservative to ensure investor safety.
- Sourcing materials and negotiating prices can lead to significant savings.
- Operational control is crucial in real estate development.
- Finding the right brokers can make a difference in leasing success.
- Flex spaces are in high demand and offer unique opportunities.
- Planning ahead is vital for successful investment projects.
- Personal motivations can drive success in real estate.
- Capital formation is facilitated by favorable securities laws in the US.
- Collaboration and responsiveness are key in real estate partnerships.
Chapters
00:00 Introduction to ALT Investing and Alec's Background
02:54 Alec's Journey from Actuary to Real Estate Investor
05:47 Exploring Flex Industrial Space and Its Benefits
08:53 The Growth of New Braunfels and Its Real Estate Potential
12:00 Overview of Alec's Current Project in New Braunfels
14:52 Understanding FlexSpace and Its Market Viability
17:49 Investment Opportunities and Project Projections
21:01 The Importance of Lease Structures in Commercial Real Estate
23:58 Understanding Cap Rates and Market Projections
24:52 Cost-Saving Strategies in Construction
26:45 Operational Control in Real Estate Development
28:42 Unique Selling Points of Flex Spaces
30:18 Investment Goals and Project Overview
32:31 Personal Motivations in Real Estate
35:17 The Importance of Capital Formation
36:42 Closing Thoughts and Future Collaborations
Disclaimer: “This production is for educational purposes only and is not intended as investment or legal advice.”
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Creators and Guests
Host
Roland Wiederaenders
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate securities attorney with expertise in private investment funds, corporate/securities issues, mergers and acquisitions, partnership structuring, and federal income tax matters. Roland is also a member of Grable Martin PLLC.
Host
Sarah Florer
Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate attorney with expertise in corporate finance and securities, structuring and restructuring, and commercial matters. Sarah is also a member of Grable Martin PLLC.
Producer
Anthony Carrano
Co-founder of the Alt Investing Made Easy podcast, fractional Chief Marketing Officer, entrepreneur, and Managing Partner at Dunamis Marketing.
