Oct. 5, 2021

Terry Hale Seller Financing and Commercial Real Estate

Terry Hale is an active investor and CEO of a private commercial real estate firm that provides acquisitions for all commercial property types and investment opportunities. The firm executes value-add strategies through direct and joint venture investmen...


Terry Hale is an active investor and CEO of a private commercial real estate firm that provides acquisitions for all commercial property types and investment opportunities. The firm executes value-add strategies through direct and joint venture investments, primarily with existing assets located throughout the U.S. Utilizing our extensive commercial real estate expertise to create value, reposition, and stabilize for long-term capital gains.

In this episode, Terry shares how he acquires property by going directly to sellers and not through MLS, specifically buying distressed properties that he adds value on and gets a good return on investment.

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What you'll learn in just 17 minutes from today's episode: 

  • Find out how to look for properties that are recession-proof and can withstand cyclical downturns
  • Learn how to structure deals through seller financing with non-recourse
  • Discover the six key steps to success in acquiring properties that provide a good return on investment

Resources/Links: 

Topics Covered: 

  • 00:54 - What is a commercial real estate
  • 01:48 - Which properties does he focus on
  • 02:19 - What makes multifamily and self-storage recession-proof properties
  • 03:44 - How self-storage become a demand for mom-and-pop stores that shut down at this time
  • 04:28 - Talking about what seller financing is
  • 05:40 - Properties he got through seller financing
  • 07:25 - How he creates value add to properties
  • 08:26 - Why he stayed away from capitalization rate formula and started looking at cost per net rentable square feet,
  • 08:14 - What distressed properties did he buy back in the day he was starting out
  • 10:34 - The six key pillars to success in finding properties that provide a good ROI
  • 11:36 - The one thing he has with brokers that made him the choice whenever they have distressed properties 

Key Takeaways: 

“When I go to the alternate lender who does non-recourse, it could point to higher interest. But it's great because it's non-recourse. And then it's on the loan to value. I lock it in for this price. I create value by filling vacancies, raising rents and adding profit centers and lowering my expenses. We don't have management on these, we've automated, modernized them. So, there's a fraction of the actual cost for management.”  - Terry Hale

“I had to get away from competition, I had to get away from the real estate investment trusts and any wall street money dealing with a huge property. So, I found this little cookie-cutter niche, and then I started looking at ownership. If somebody owned that thing for about 20 years, then at that point in time, they're probably more than likely ready to retire. So, I started focusing on those properties.” - Terry Hale

“I reverse engineer my thinking, I started looking instead of buying retail property on a capitalization rate, I started looking at more distressed property that is not bankable.” - Terry Hale

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