Real Estate Investing School Podcast, Episode 129:

"Commercial Chess: Smart Real Estate Moves with Dustin"

Release Date: February 5, 2024
Host: Joe Jensen
Guest: Dustin Young, GDL Capital

Episode Overview

This episode features Dustin Young, a Cedar Rapids native turned commercial real estate investor and founder of GDL Capital. Host Joe Jensen dives into Dustin’s unconventional career path—from a work accident that ended a decade-long FedEx contracting business to building wealth and pursuing time freedom through creative real estate ventures. The conversation is rich with practical insights into scaling investments, transitioning asset classes, lessons learned, and the mindset that drives long-term success.

Key Discussion Points & Insights

1. Dustin’s Early Journey and Critical Life Pivot

• Background: Dustin holds an industrial engineering degree but never worked as an engineer. His first post-college jobs included baggage handling, drafting, and working as a mover.
  • [03:08] Dustin: "My first job with my fresh engineering degree was a baggage handler at the airport. Four in the morning for like seven bucks an hour."
• Entrepreneurial Ramp-Up: Dustin organically transitioned from a delivery job to owning a FedEx route, which he grew to 30 trucks across three states.
• Life-altering Accident: A FedEx truck accident left Dustin with 15 broken bones and organ damage, ending his FedEx business but leading to four years as a stay-at-home dad.
  • [07:29] Dustin: "I really loved it until I got ran over by one of those trucks... Brought an abrupt end to my driving career.”

2. Choosing Real Estate for Impact & Freedom

• Time Freedom Priority: Post-accident, Dustin valued time with family and sought an entrepreneurial path that wouldn’t require constant onsite presence.
• Why Real Estate: After briefly considering a bowling alley/family entertainment venture, Dustin realized it would demand too many nights and weekends, so he pursued real estate.
  • [12:35] Dustin: "I wanted... time freedom. So yeah, I went back to when we bought our first property."
• First Investment: A $20,000 single-family home in a D-class neighborhood, which he later sold for a 4x gain after stabilization and rent increases.

3. Transition from Single-Family to Commercial Properties

• Scaling Strategy: Dustin accumulated six single-family rentals, then sold them to focus on larger, more efficient commercial assets.
  • [14:18] Dustin: "I saw the benefit, the potential of commercial real estate... sold them all to consolidate and move forward."
• Deal Examples:
  • Medical Facility Conversion: Turned a 15-unit medical facility into 25 apartments, more than doubling the rent roll, then sold it for further scaling.
    • [17:10] Dustin: "We took all of that out and turned it into 25 residential units."
  • Warehouse and Office Complex: Acquired a three-story warehouse and a three-building office compound, leading to his current focus on strip malls and syndications.

4. Commercial Real Estate & Value-Add Plays

• New Focus: Dustin’s current venture is syndication of value-add retail strip malls, targeting under-utilized or vacant properties with city support.
  • [19:28] Dustin: "Goal is to come in and buy it... there's the potential to like 5x the value."
  • City Involvement: He highlights the benefits of aligning with municipal interests for smoother approvals and potential public/private cooperation.
    • [20:45] Dustin: "I've never seen city involvement like this one. So it's going on, like, 30 years now... the city has actually paid to repair the roof and the parking lot along the way."
• Operational Differences:
  • Commercial properties allow wealth creation via leasing and improved NOI, not just market appreciation.
  • Business tenants often easier to manage emotionally than residential tenants, though projects involve larger capital expenditures and patience.
    • [25:58] Dustin: "In single family, I mean depending on the properties you're buying... just by, you know, going to walk a property and sending a piece of paper or sending an email... we save three, $400,000..."

5. Mindset, Challenges, and Habits

• Patience and Delayed Results:
  • [31:41] Dustin: "My patience has been tested... In real estate, you're thinking in years or decades. Just slowing down, being patient and not trying to force it."
• Continuous Learning:
  • Practices ongoing education through books, podcasts, masterminds, and personal development challenges (e.g., Miracle Morning, 75 Hard).
    • [34:35] Dustin: "Always learning... always be willing to be the dumb guy, I guess. Ask questions, don't be afraid to ask questions."
• Building Grit:
  • [36:57] Dustin: "The grit and the perseverance that you learn from not giving up... just it, it carries over into business."
• Balancing Big Ticket Risks:
  • [27:54] Dustin: "You're not wrong. Right. I just got an email this morning with some roof quotes... $178,000 for all three roofs."

6. Practical Lessons & Notable Mistakes

• Family Tenants: Most expensive mistake was renting to family, a situation that remains financially and emotionally complex.
  • [46:19] Dustin: "I don't know if I want to say it, but my most expensive one, honestly, has been renting to family."
• Contract Nuances: A technical error in a lease agreement (signature formatting on a personal guarantee) led to a failed recovery when a business tenant defaulted.
  • [48:15] Dustin: "Unfortunately, through some email formatting with the lease, the personal guarantee somehow was not enforceable..."
  • LESSON: Ensure proper legal review and signature placement; initial each page when in doubt.

Notable Quotes & Memorable Moments

• On Wealth Building Philosophy:
  • [15:54] Joe Jensen: "You never sell your assets for money. You trade them for better assets."
• On Emotional Side of Investing:
  • [22:11] Dustin: "I feel like... you definitely play more counselor, whatever, financial advisor, marriage therapist... helping people figure out what to do with their careers."
• On Timelines and Patience:
  • [31:41] Dustin: "FedEx it was get it done now, if not sooner. In real estate, you're thinking in years or decades."
• On Personal Growth Challenges:
  • [36:57] Dustin: "When you work on integrity and keeping your word to yourself... you can accomplish just about anything."
• On Purpose of Life:
  • [52:40] Dustin: "The big purpose of life is to honor and serve God, but I think while we're here, be the best human being you can be... be kind, be giving, be the best version of you that you can be for everybody."

Key Segment Timestamps

• Dustin’s intro and background: [00:13]–[04:25]
• FedEx business journey & accident: [04:28]–[09:09]
• Pivot to real estate: [09:47]–[13:03]
• First deals and strategy: [13:03]–[15:26]
• Scaling to commercial real estate: [15:26]–[18:10]
• New focus on strip malls & city partnerships: [18:46]–[21:24]
• Advice for investors considering commercial: [22:11]–[25:15]
• Risks & big ticket repairs: [27:54]–[29:00]
• Syndication and funding approach: [29:23]–[30:13]
• Mindset, patience, and learning: [34:35]–[37:50]
• Surprising differences in commercial: [31:29]–[32:21]
• Personal routines and growth: [34:35]–[36:57]
• Expensive mistakes: [46:19]–[51:59]
• Final thoughts and Dustin’s contact info: [42:00]–[42:44]
• Purpose of life: [52:40]

Book Recommendation

• The Honeybee by Jake Stenziano & Gino Barbaro
  • [44:34] Dustin: "I could relate to the character a lot. So Rich Dad, Poor Dad felt a little contrived... this made it a little more current, real world applicable."

Contact & Follow-Up

• Instagram: @dnamke (Dustin and Amanda in Milwaukee)
• Syndication Website: gdl.capital

Closing Thoughts

Dustin Young’s journey models resilience, patience, and creative problem-solving in real estate. Whether you’re thinking of scaling up, considering commercial assets, or just want to hear how business can bounce back from life’s worst moments, this episode is packed with actionable wisdom, candid advice, and the inspiration to keep growing—no matter where you start.