David Gellner @GellnerDavid Twitter profile

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David Gellner

@GellnerDavid

2 years

A little about my real estate journey so far:

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David Gellner

@GellnerDavid

1 year

Last year an investor purchased a Target in Portland for $16,000,000 and a 4.25% CAP. Yesterday it was announced that due to crime and theft they are closing this location down and 2 others in Portland. What's the lesson here?

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David Gellner

@GellnerDavid

2 years

I bought this building for $450k and sold it two years later for $1,167,000. Here's the story and the lessons I learned along the way:

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David Gellner

@GellnerDavid

6 months

First time I've seen a permit like this... Single tenant fast food restaurant with a drive thru Apartments on top In a town of 10k people Anyone seen something like this before?

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David Gellner

@GellnerDavid

1 year

In my opinion the largest under-appreciated risk currently in the RE market has to do with the municipality and states that you invest in.

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David Gellner

@GellnerDavid

1 year

In 2017 I was in a 1031 exchange and bought my first apartment building. After months of searching for a property I couldn't have been more excited about this purchase. It ended up being my worst purchase (so far...) and here's the lessons I learned along the way:

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David Gellner

@GellnerDavid

1 year

Received a couple calls from Rite Aid owners this week who were contacted by 3rd party to negotiate existing lease on behalf of Rite Aid. Both said the same terms which where 50% decrease in rent with no extension of existing term. If they did not accept it was mentioned they

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David Gellner

@GellnerDavid

1 year

A few months ago I called an owner of a Jack in the Box to share a nearby sales comp. In the dozen times we've connected over the years it's always been an "ice cold" 60 second conversation or less. "No thanks - I'm good and don't need the information." and then would hang

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David Gellner

@GellnerDavid

1 year

I'm hearing from clients on a weekly basis that they want to get out of WA/OR and rotate their portfolio into more business friendly states like ID, MT, UT, NV, FL and TX.

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David Gellner

@GellnerDavid

2 years

You really are one deal away from changing the trajectory of your life. This one deal allowed my friend and I to go on to purchase 4 other properties over a 7 year period. Scary to think where I would be if I never did this deal... Feel the fear and do it anyways. #retwit

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David Gellner

@GellnerDavid

1 year

For a very long time core assets in the Pacific Northwest were seen as the safest and best assets to own. In Seattle and Portland crime and theft has risen substantially the last few years and its critical that these cities get their act together asap.

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David Gellner

@GellnerDavid

1 year

Had a call with a young broker today and he asked a question that I was not expecting. " If you were me how would you handle personal finances if the ultimate goal is to be an investor of commercial real estate" Here's what I shared from my journey:

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David Gellner

@GellnerDavid

1 year

Have had 2 vacancies for 30 days at one of my apartment buildings. Weekly manager report shows 3 to 4 apps a week. Solid traffic. Gave him a call to see what’s up… “No one is meeting the rent/income qualifications right now.” Feels like we have hit the inflection point

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David Gellner

@GellnerDavid

2 years

Shocking how many brokers don't call their clients after closing to say congratulations and thank you for the opportunity.

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David Gellner

@GellnerDavid

1 year

This is a direct cause and effect from the measures and bills that they been implemented or proposed in recent years: Defund the Police,Rent Control, Limited LL ability for lease guarantees, massive excise tax increases, headcount taxes, cap gain tax on stock, the list goes on..

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David Gellner

@GellnerDavid

5 months

Early in my brokerage career I asked a senior broker when his favorite time was to make calls. His answer surprised me... "Friday afternoons or before a holiday weekend. Most people are in a good mood and no one else is calling" 53 calls with a 50% connection rate today 🇺🇸😎

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David Gellner

@GellnerDavid

1 year

As a lifelong Washingtonian I really hope that our elected officials can get their shit together before it's too late. To assume that things will naturally heal or improve is a fatal mistake.

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David Gellner

@GellnerDavid

1 year

In Dec of 2021 my brother and I purchased a 34 unit apartment complex. The deal included a single family house across the street that was being used as an on-site residence. Here's a breakdown of the deal and how we were able to maximize the opportunity: 🧵

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David Gellner

@GellnerDavid

2 years

Not an open parking spot to be found Retail is dead y’all

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David Gellner

@GellnerDavid

2 years

Local Jack in the Box went vacant and was purchased last year. Drove past the property and a local attorney put their office in entire space. First time I've seen an attorney backfill a fast food location... Wonder if he's using the drive thru?

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David Gellner

@GellnerDavid

2 years

Bold Prediction: By end of 2023 retail commercial real estate will be the favored investment class. Why I can see this happening 🧵

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David Gellner

@GellnerDavid

1 year

A Chick-fil-A in Washington State just sold at a 4.22% CAP Rate. Sometimes it just comes down to one buyer falling in love with the deal. And that's the beauty of real estate. #cre #retwit

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David Gellner

@GellnerDavid

2 years

Lots of brokers this year about to learn for the first time that listings don’t equal an automatic paycheck.

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David Gellner

@GellnerDavid

1 year

Looking back I am extremely grateful for this experience because my 1st year of apartment ownership taught me more than years of reading, talking to mentors and going to seminars ever could. #cre #rewit

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David Gellner

@GellnerDavid

1 year

Thanks to technology and the internet it is easier for individuals and businesses to move locations to where they are most supported. This trend will only continue.

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David Gellner

@GellnerDavid

2 years

Lesson 2: If I was to do it over again I would give some Tenant Improvement money so that the starting rent/NOI is higher. Why? Every 1k extra NOI capitalized at a 4.5% CAP is 22k in purchase price.

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David Gellner

@GellnerDavid

1 year

4 years ago on this day we had our first date. Both of us went out the night before and almost canceled. 😬 Glad we didn’t!

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David Gellner

@GellnerDavid

1 year

Alright Mobile Home Park Friends... $5M+ for this thing right here which is around $100k a space. Another MHP hit the market today at $150k a space in an area I own apartments in. How do you make sense of this pricing when you can go buy value add apartments at $100k a unit

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David Gellner

@GellnerDavid

1 year

Always surprising to see who takes days like today off and who doesn't. 5 cold calls in and the phones working the same as any other day. Who in the #cre world is working today?

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David Gellner

@GellnerDavid

2 years

Happy Easter Sunday, y’all. No amount of worldly success is worth failure at home.

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David Gellner

@GellnerDavid

1 year

Pitched a competitive listing last week. For the past 48 hours I’ve been obsessing about whether I got it or not. Negative self talk and low energy. Got the call today that I won the assignment. 20 seconds of happiness. Really got to work on that… Is it just me?

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David Gellner

@GellnerDavid

2 years

We closed and 2 weeks later had a signed lease by the tenant. I could finally sleep. 6 months later the building looked like this.

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David Gellner

@GellnerDavid

2 years

Met with a new investment sales broker this week and here are a few things we talked:

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David Gellner

@GellnerDavid

1 year

@juancapore

Portland’s last 2 Walmart locations closing doors Friday

The last two Walmart locations in Portland are permanently shutting their doors on Friday.

www.koin.com

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David Gellner

@GellnerDavid

1 year

After the sale I completed a 1031 exchange, acquiring 2 value add apartment (50 units total) that changed that radically changed the trajectory of my life. A story for another day...

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David Gellner

@GellnerDavid

1 year

5 years of regularly staying in touch with this family Last week they reached out requesting a BOV Received this email today Solid start to the weekend! #cre #retwit

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David Gellner

@GellnerDavid

1 year

Observation this market cycle: The top 1% of #cre brokers in their respective segment are consistently getting 80%-90% of market share this year Everyone else doing little to nothing. Previous cycle (pandemic) felt much more sporadic with wider market share spread. #1 lesson

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David Gellner

@GellnerDavid

2 years

Lesson 1: If you find the deal but don't know how to do it. Get control and then ask an expert in the field to go in with you. If it's a deal 99% of the time they will be more than happy.

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David Gellner

@GellnerDavid

1 year

Brokers outside your firm are your friends and colleagues. In the hyper competitive world that is CRE investment sales this can take awhile to learn. Some never do. In a market like the one we are experiencing the relationships you have with other brokers are critical to

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David Gellner

@GellnerDavid

1 year

In October I saw more multi family properties in Washington hit the market than I’ve seen all year. Most MF deals on market now are 6 to 6.50 CAP. Today I was sent two deals in WA under $10m that were a going in 7.50 and 8.50 CAP. The crazy thing is retail inv cap rates

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David Gellner

@GellnerDavid

1 year

A large portion of banks own their retail real estate. In the last 30 days there have been a dozen or more former bank branches to hit the market in the Pacific NW. A good portion of these are in solid retail locations with drive thru. These will quickly be snapped up by

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David Gellner

@GellnerDavid

1 year

Lesson #1 : When a market or specific asset is the favorite of the day... Be very, very cautious. This should be a warning sign to be on high alert. Pricing is MAXED, reflecting the markets mentality, which subsequently reduces your 'margin of error'.

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David Gellner

@GellnerDavid

2 years

Two years later we both agreed to sell and 1031 our funds into an apartment building in Seattle. Lesson 5: I would have sold at 12 months of ownership. This would allow us to complete an 1031 exchange and get another year of added value from a larger property.

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David Gellner

@GellnerDavid

2 years

Owner just called me off of a card/letter I sent 10 years ago... Real estate is the ultimate long term game.

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David Gellner

@GellnerDavid

6 months

@NNNIncome I’ll make sure to send you a leasing flyer if it gets completed 😂

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David Gellner

@GellnerDavid

6 months

In September of last year I received every broker's favorite call from a client: "Hey David, I want you to sell Trestle Station for us" Here's how we sold the largest NNN gas station in WA State history in under 90 days

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David Gellner

@GellnerDavid

1 year

Can someone explain how M&M stock (along with other publicly traded brokerages) are not nosediving right now? Just posted an $8m loss for the q2 and doesn’t take a genius to bet q3/q4 transaction volumes will remain depressed Genuinely curious what’s happening here

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David Gellner

@GellnerDavid

1 year

This Taco Bell franchisee made over $1,500,000 in 3 months last year at this location. Here's how:

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David Gellner

@GellnerDavid

6 months

@jmwass Arby's sales through the roof!

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David Gellner

@GellnerDavid

2 years

No big deal, right? Well.. Insert Lesson #3 : It can easily take 6+ months to negotiate a lease once attorneys get involved. So Lesson #3 - Make sure you have a responsive attorney who is specifically familiar with retail leases. If you don't life will be hell.

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David Gellner

@GellnerDavid

5 months

Recently heard from an owner who had listed his property that did not sell. What he told me was pretty shocking... A few days after signing the listing agreement, he decided it was best to hold the property and not sell right now. He called the broker up and told him his

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David Gellner

@GellnerDavid

1 year

Appraiser called today asking for CAP Rate feedback on a single tenant Rite Aid… 613k NOI / 35 psf 4 year’s remaining on lease Located in town with less than 5k people 😳😳😳 #retwit #cre

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David Gellner

@GellnerDavid

2 years

While all this is happening a few other check lists: Talk to the city and make sure they will approve the usage of future tenant. Walk the property with the tenant and whoever will be doing their construction. Check the amount of power available on site and suitable for tenant

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David Gellner

@GellnerDavid

1 year

Building off of Lesson #5 - I realized quickly that the ideal situation was to own buildings of at least 24+ units. This would allow vacancy to happen without becoming negative cash flow. Larger properties also allow for more professional management and ideally on site mgmt.

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David Gellner

@GellnerDavid

5 months

When we first brought this Red Robin to market we initially experienced some of the strongest buyer and broker interest I’ve seen in a long time... However… outside of a couple low ball offers not worth considering it then became very quiet. No substantive feedback from all

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David Gellner

@GellnerDavid

1 year

70% of my current deal flow is being done by first time commercial buyers. Past 6 months of retail investment comps in my market appear to hold roughly same percentage. Can’t remember a time in the past when I’ve seen it like this.

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David Gellner

@GellnerDavid

2 years

We agreed to a "as is" deal with a strong Jimmy John's franchisee for a 10 year lease. Starting rent of 49k a year. They would put in roughly 400k into the building and make it suitable to their use.

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David Gellner

@GellnerDavid

1 year

I feel like I just gave birth to a meat baby Everyone excited and randomly stopping by 10/10 would recommend

David Gellner

@GellnerDavid

1 year

First overnight brisket Wish me luck 😬

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David Gellner

@GellnerDavid

1 year

Lesson #3 Find assets where you can add the value instead of buying 'turn key'. Because this was a 'turn key' asset with all the value add completed my hands were tied to overall market conditions. Thankfully market rents stayed flat and did not decrease...

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David Gellner

@GellnerDavid

2 years

Two of the best multi-family deals I saw locally in 2022 came from the residential MLS? Why? Who you hire to sell your property matters a lot.

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David Gellner

@GellnerDavid

1 year

Today we closed on the house for $253k. Single mom and first time homeowner who was overjoyed to purchase an affordable home to raise her family. Win - Win situation for everyone involved. #retwit #cre

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David Gellner

@GellnerDavid

1 year

Wrote a 6% cap offer on a Dollar General this week. Broker calls me up: Seller is telling me they will lose close to a $1M if they take the offer. Absolute Insanity. How does that even happen?

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David Gellner

@GellnerDavid

4 months

It seems it's that 'time of the year' when a new anonymous account starts taking shots at those within the retwit community... Here's one thing I know for sure: I have NEVER met a truly successful person that has publicly posted shit about others online.

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David Gellner

@GellnerDavid

1 year

Dutch Bros might giving Chick Fil A a run for their money on largest drive thru stacks Wild!

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David Gellner

@GellnerDavid

1 year

#1 - Give your heart and soul to becoming the best investment sales broker you can be. You are in a once in a lifetime position where you have no wife and kids. The amount of time you have now will only shrink from here on out.

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David Gellner

@GellnerDavid

2 years

Lesson 4: The right business partner can make or break you. He sat me down and told me if I don't buy this with him #1 he will buy it himself and #2 I will regret it the rest of my life. My ego couldn't let him buy it himself so I said screw it and jumped in.

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David Gellner

@GellnerDavid

2 years

Why would anyone buy a 5% CAP (or below) NNN Investment when you can just buy Treasury that yields more? Well... Here's why:

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David Gellner

@GellnerDavid

1 year

35 starting off right!

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David Gellner

@GellnerDavid

2 years

We wrote an offer of $450k, 60 day due diligence with a 30 day close. They accepted and struck the earnest money line. When I asked why they said they didn't need any earnest money from us.

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David Gellner

@GellnerDavid

6 months

@thevincampton 1st time I've used Dalle... It took me awhile but I'm happy with the results haha! If they build I really want to see how they handle the roast beef smell with apartments above..

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David Gellner

@GellnerDavid

2 years

While my friend was working on leasing the property I was reaching out to local lenders. Luckily I found a local bank who would loan us 75% of purchase price with a signed LOI from the tenant with the caveat that we needed a signed lease within 6 month of closing.

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David Gellner

@GellnerDavid

2 years

@aaronk7 Safe to assume the dentist no longer practicing after that sale?…

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David Gellner

@GellnerDavid

5 months

Today was my Dad’s 71st Birthday He’s always wanted to visit New York City but would never spend the money on himself to go. Tonight we surprised him with his dream trip that leaves in 3 weeks. Any recommendations for the best things to do, see and most importantly eat?!

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David Gellner

@GellnerDavid

1 year

U.S Citizenship & Immigration Field Office $2,380,000 7% CAP Rate 20+ Year Occupancy backed by US Government Recent 5 Year Renewal 1 of 3 USCIS Field Offices Serving All of WA State

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David Gellner

@GellnerDavid

6 months

@TripleNetInvest Red Robin!! Cmon bro…

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David Gellner

@GellnerDavid

2 years

At the time I was 3 years into brokerage, however, I did not have a ton of cash and was still getting on my feet in the business. I had been in contact with these owners over several years and they called to tell me the tenant is vacating and they wanted to sell asap.

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David Gellner

@GellnerDavid

2 years

Once the property was under contract my friend began marketing the property for lease. In 30 days we had 6 offers from tenants who wanted to lease the property. All with varying degrees of rents and tenant improvement allowances.

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David Gellner

@GellnerDavid

5 months

How's the single tenant market in the Pacific Northwest? --> Due to a limited supply of inventory, especially of quality NNN product with corporate guaranteed leases, we are seeing PNW sellers insulated from CAP rate movement when compared with other markets --> Price

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David Gellner

@GellnerDavid

1 year

Starting to hear on a weekly basis that Dollar General projects are underwater or best case at breakeven with current CAP rate environment. Going to be interesting to see how this unfolds. Seeing significant reduction in on market DG's in Western US as developers turn off.

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David Gellner

@GellnerDavid

2 years

I knew enough to be dangerous in #cre but definitely not enough to take this down myself. So I asked my leasing broker friend who had 10 years of experience if he wanted to buy this with me. Absolutely he said.

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David Gellner

@GellnerDavid

1 year

These principles are easy to talk about but very hard to actually do. In the long run though it is absolutely worth it. Always play the long game. #cre #retwit

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David Gellner

@GellnerDavid

1 year

Sold this asset in 2018 at a 5.75 CAP and we closed this week at a 5.50 CAP With very few newer construction, high quality assets on market in WA State the CAP rates have remained compressed. All cash 1031 buyer

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David Gellner

@GellnerDavid

1 year

We are now live on Mission Village in Wenatchee $7,400,000 - 7.25% CAP - $224 PSF - 95% Occ.

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David Gellner

@GellnerDavid

11 months

Email today on a new construction apartment in Portland: *NEW PRICE *2.6M less than construction cost *6M less than 2022 appraised value Feel horrible for the developer and makes me want to 🤮 If I had big boy $$$ I would be very tempted to place long term bets on these new

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David Gellner

@GellnerDavid

1 year

Lesson #6 - Management is everything. If your goal is to own long term (which I thought mine was) you quickly realize that the property manager you have dictates success. Leasing units quickly and keeping expense creep to a minimum is how you live or die.

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David Gellner

@GellnerDavid

1 year

#3 - Learn to think like an investor Start reading investment books like 'Rich Dad Poor Dad' and hop on Twitter to start observing what other people do. This will automatically force a perspective change and you will start to view deals in a certain way outside of brokerage.

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David Gellner

@GellnerDavid

1 year

First overnight brisket Wish me luck 😬

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David Gellner

@GellnerDavid

5 months

In a 6 month period of time this former drug store in Seattle now looks like this Very difficult situation for the current property owner as there is nothing worse than having a building sit vacant for periods of time The ultimate solve to this situation is getting a new

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David Gellner

@GellnerDavid

1 year

Had to check out the grand opening for Chipotle that came into my town. Safe to say I think this one’s going to CRUSH!

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David Gellner

@GellnerDavid

2 years

Only remaining item is the lease... 2 weeks out from closing I can't sleep because the lease isn't done. What if the tenant bails? What if the bank asks for more $$ I don't have? Etc, etc. I tell my friend I'm not sure I can do the deal...

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David Gellner

@GellnerDavid

1 year

Great having lunch today with top retail leasing broker @joshparnell31 to chat about biz, life and the past 10 years. Best part of this business is you get the opportunity to have long term relationships with quality people. Appreciate you my friend!

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David Gellner

@GellnerDavid

1 year

Lesson #7 - Know when to fold and get out of an asset. Especially one with less than ideal margin of error or where there is no value add to complete. Market/City conditions are mostly out of your control no matter how much praying you do things will change.

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David Gellner

@GellnerDavid

5 months

Today I went to a new Trader Joe’s location and was seriously impressed: - All the employee’s seemed genuinely happy to be there which lead to an overall store “vibe”. - Prices were much lower than other grocers. - Extremely busy store yet everything was organized and clean.

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David Gellner

@GellnerDavid

5 months

Feeling for the Tractor Supply developers today... Corporate just dumped a handful of sale-leasebacks on the market this week Meanwhile... I can't remember the last time I've seen a build to suit Tractor Supply sell in my market There are several currently offered for sale

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David Gellner

@GellnerDavid

1 year

- Talk to your CPA about setting up an S-Corp for your brokerage business. This will save on personal employment tax and help towards the #2 most important thing - SAVING.

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David Gellner

@GellnerDavid

2 years

Success in this business comes down to doing the 'one thing' consistently (every day) for a long time (years). The 'One Thing' in investment sales is making the daily calls.

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David Gellner

@GellnerDavid

1 year

@thenyboy Yes they are still on hook. However an item tbd is if they will pay LL for security, fencing and any fines city implements for having vacant building.

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David Gellner

@GellnerDavid

1 year

During the first year of ownership we had another vacancy come up during winter months (Oct-Jan). In a market like Seattle it's normal for rents to reduce 5%-10% on average and leasing demand lowers substantially. Lesson #4 : Try to time your renewals/leasing outside winter.

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David Gellner

@GellnerDavid

1 year

Acquire investment properties where the best thing that could happen is the current tenancy vacates.

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David Gellner

@GellnerDavid

1 year

#4 - Buy Commercial Real Estate Once you hit your savings goal it's time to start looking to buy your first deal. Focus on one asset type and geographic area. Review every deal that hits the market and talk to the brokers that are listing the deal.

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