It’s amazing how in real estate, you can create so much value without that much time spent. That is why Adam Gilbert, a civil litigation attorney, quickly found his passion in real estate. For him, there’s just so many opportunities to make money while you learn at the same time.
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One particular niche in real estate that Adam loves doing most is value-add entitlement deals. Few people know about it which means less competition. Plus, it is a good opportunity for value-add creation. You just acquire a property, change it to a higher and better use and make more money out of it. Sure, it involves a lot of risks which Adam will go into detail on in this episode, but if you know how to manage and ameliorate those risks, you will definitely become successful.
Key Points From This Episode:
- Adam starts off with how he transitioned from being a lawyer to real estate investor.
- Why does Adam love value-add deals and why is there much opportunity in this niche?
- The projects that Adam has mainly done are zone-change deals where he acquires a property then changes it to a higher and better use to allow for value-add creation.
- What are some of the steps to ameliorate risks to get the entitlements done?
- How does Adam make decisions on how to develop or manage a value-add deal?
- Why did Adam venture into a vacation rental management company? What are the pros and cons?
- When trying to invest in a vacation rental model, pick what market you want to be and then find out what that traveler is looking for.
- What, for Adam, is the biggest risk in commercial real estate moving forward in the next 12 to 24 months?
- For Adam, having a huge kind of presence for the media and being front of mind with people are keys to increasing deal flow.
- What’s the number one thing that has contributed to his success?
“[Entitlements] is not rocket science, it’s just kind of knowing what they want to see and providing it for them.” [0:08:22]
“I think real estate development, at least ground up as we’re discussing, is like the ultimate entrepreneurial concoction.” [0:08:55]
“Just kind of following the trail of the path of least resistance has been successful for me.’ [0:10:44]
“I think 71% of millennials, if they’re traveling, the first place that they’re gonna look for lodging is like an Airbnb or Vacation Rental model. So I think it’s definitely here to stay. And as long as you can get through the regulatory aspect and some of the risk inherent in that, I think it’s gonna be a profitable model for people on the management and investment side going forward.” [0:14:33]
“I think at any market there’s always opportunities and the ability to find deals.” [0:16:36]
“If you’re going to do any project just make sure you have enough capital to hold for four to five years if need be, make sure you have a good enough cash position or access to credit line or something to not get over your head on any asset.” [0:18:08]
“Leverage is the key to growth, but no one ever lost everything by having too much cash on hand.” [0:18:50]
Links Mentioned in Today’s Episode:
About Adam Gilbert
Adam Gilbert is an entrepreneur who began his career as a civil litigation attorney but quickly found his passion for real estate. As President of The Firm Commercial, Adam leads a team of agents specializing in commercial real estate sales, leasing, land acquisition, development, government relations, and value-added entitlement deals. As Co-Owner and Operator of Gilbert Avriette Vacation Rentals, Inc., Adam managed 35+ vacation rentals concurrently throughout the Coachella Valley. Gilbert Avriette Vacation Rentals was acquired by Turnkey Vacation Rentals in June 2018.
Adam is also an investor and consultant advising on development projects related to land acquisition, entitlement, and build-out. His personal successes include the rezoning of an entire city block to produce a better and higher use for a property, the purchase and revitalization of the iconic Bump and Grind Plaza on Highway 111 in Palm Desert, and is currently working on a number of value add deals including another zone change project, a hospitality deal, and a drive thru entitlement project.
In his personal life, Adam is married to Palm Springs Mayor Christy Gilbert Holstege, and they recently welcomed their first child, Aden. Additionally, Adam currently serves as the immediate Past President of the Board of Directors for the Palm Springs Boys and Girls Club and is an active member of Entrepreneurs’ Organization – Inland Empire.
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