Real Estate Investing School Podcast Summary

Episode: 229. How to Own Your Investing Market
Host: Joe Jensen
Guest: Tyler Thorne
Release Date: January 20, 2025

I. Introduction

In this episode of the Real Estate Investing School Podcast, host Joe Jensen welcomes Tyler Thorne, a seasoned real estate investor with a diverse portfolio spanning direct-to-home consumer sales, commercial, and multifamily assets. Joe humorously recounts the challenges they've faced in recording the podcast three times before, highlighting their perseverance to deliver valuable content to listeners.

Notable Quote:
Joe Jensen [00:14]: "This is our third attempt at recording this thing. The world and the Internet and technology has been against us, but we're finally going to make it."

II. Tyler Thorne's Background and Upbringing

Tyler shares insights into his unique upbringing, which significantly influenced his approach to real estate investing. Growing up with an entrepreneurial father deeply entrenched in the real estate coaching and self-education space, Tyler was exposed to leading industry figures like Dean Graziosi and Grant Cardone from an early age. This environment normalized high-level real estate discussions and opportunities, shaping his investment mindset.

Notable Quotes:
Tyler Thorne [04:07]: "Our conversations at home as a kid have always been super unique... think about, you can get it done."
Tyler Thorne [04:58]: "They weren't like way outside our world. These were people that my dad was working with... your dude that sits at the dinner table."

III. Entry into Real Estate Investing

At 22, Tyler made his first foray into real estate by purchasing a new construction townhome. Despite not being particularly handy, he leveraged his analytical skills from his sales career to evaluate market data meticulously. His pride led him to execute the deal solo, encountering challenges like qualifying for the loan post-offer. Nonetheless, the investment proved successful, reinforcing his belief in the forgiving nature of real estate.

Notable Quotes:
Tyler Thorne [07:54]: "I bought a new construction townhome... there was super stressful for, for a moment trying to get everything to work out."
Joe Jensen [09:11]: "Real estate is so forgiving. You can get your feet wet even imperfectly."

IV. Transition to Commercial Real Estate

Building on his foundational knowledge, Tyler transitioned into commercial real estate, finding it more aligned with his business acumen and background. Influenced by his father's limited but impactful experience in commercial deals, Tyler sought to leverage existing relationships and his active income to explore larger investments. He emphasized the importance of financial statements and the ability to enhance asset value through business improvements rather than just physical renovations.

Notable Quotes:
Tyler Thorne [15:06]: "We were looking at every sale in this area for months... I just sent it, love it."
Joe Jensen [16:44]: "You can manipulate the value of it based on the net operating income."

V. First Commercial Deal and Due Diligence

Tyler recounts his first commercial deal acquisition, a 25-unit property, highlighting the importance of thorough due diligence. He collaborated with specialized professionals, including attorneys and engineers, to assess the investment's viability. This approach underscores his strategy of leveraging expertise to manage complex transactions effectively.

Notable Quotes:
Tyler Thorne [20:45]: "We start studying the Ray Dalios... but none of them are doing that. It's entire teams."
Joe Jensen [21:58]: "If the lender will go for it, you're probably pretty safe."

VI. Scaling Investments and Niche Focus

Over six years, Tyler has executed eight deals, primarily focusing on commercial and multifamily assets. His portfolio includes two 25-unit properties, a commercial retail plaza, and a developing 140-unit senior living community. This strategic expansion demonstrates his ability to scale investments while targeting specific market niches that offer sustainable income and growth potential.

Notable Quotes:
Tyler Thorne [22:48]: "We have two separate 25 units... developing right now for units for senior living, 55 plus communities."
Joe Jensen [23:25]: "Zero marketing, like no advertising, just buying out on the dirt while you're building."

VII. Market Strategy and Development in the Midwest

Tyler emphasizes his bullish stance on the Midwest market, driven by comprehensive research and understanding of local demographics. He identifies growing demand in senior living and multifamily sectors, supported by affordable land and favorable rent ratios. His projects reflect a keen awareness of market needs and trends, positioning his investments for success.

Notable Quotes:
Tyler Thorne [25:19]: "I'm really, really bullish on the Midwest market... 55 plus there's more high income and more of that age that's moving into multifamily maintenance-free units."
Joe Jensen [27:01]: "When you acquire the land, get it zoned and get it reappraised... you can explode the valuation of it."

VIII. Launching the First Investment Fund

Transitioning from self-funded projects, Tyler and his team are launching their first investment fund to scale operations and accommodate external investors. This move aims to professionalize their investment approach and meet growing demand from interested parties, enabling faster growth and broader impact.

Notable Quotes:
Tyler Thorne [33:16]: "We are actually launching our first fund... it's a really great experience."
Joe Jensen [34:18]: "We'll put that in the show notes... how cool is that?"

IX. Final Insights and Advice

As the conversation wraps up, Tyler imparts valuable advice to aspiring real estate investors. He advocates for continuous learning, team building, and leveraging specialists to optimize investments. Tyler highlights the importance of being a facilitator, enabling experts to manage specific aspects of deals, thus enhancing overall efficiency and profitability.

Notable Quotes:
Tyler Thorne [36:04]: "Get as much information, read as much... you might fall in love with someone's strategy."
Joe Jensen [38:30]: "It's almost like egoless... that's probably not always the best move."

Key Takeaways:

• Leverage Background and Relationships: Tyler’s upbringing provided a solid foundation and valuable connections in the real estate industry.
• Start Early and Learn by Doing: Entering real estate at a young age allowed Tyler to gain hands-on experience and learn from real-world challenges.
• Transition to Commercial Real Estate: Moving into commercial spaces enabled scalable investments and more sophisticated financial strategies.
• Build a Strong Team: Success in larger deals relies on a dedicated team of specialists handling various aspects of the investment.
• Focus on Niche Markets: Targeting specific demographics, such as senior living communities, can yield high demand and sustainable returns.
• Consider Raising Funds for Scaling: Launching an investment fund can facilitate growth and allow others to participate in lucrative deals.
• Continuous Learning and Adaptation: Staying informed and adaptable is crucial for long-term success in the dynamic real estate market.

Conclusion

This episode of the Real Estate Investing School Podcast offers a comprehensive look into Tyler Thorne’s journey from his unique upbringing to becoming a successful real estate investor. Through strategic transitions, meticulous due diligence, and a focus on building strong teams, Tyler exemplifies the pathways to owning and thriving in various real estate markets. His insights and experiences provide invaluable guidance for both novice and seasoned investors aiming to expand their portfolios and achieve sustained success.

Notable Closing Quote:
Tyler Thorne [42:14]: "If you can manage well, like, go play the game without knowing all of the real estate centric stuff."

Connect with Tyler Thorne:
Instagram Handle: TyThorne
Note: Tyler encourages listeners to DM him for information on credit investors and updates on their upcoming fund.

End of Summary