The Legacy Wealth Code Podcast

Building a Real Estate Empire in Commercial Real Estate

December 15, 2022 Michael Notbohm & Andrew Hoek Episode 2
The Legacy Wealth Code Podcast
Building a Real Estate Empire in Commercial Real Estate
Show Notes Transcript

Our guest has accumulated a massive portfolio of cash flowing commercial properties that has allowed him to live life on his terms.  David shares with us some great insights on how he got started, what kinds of things to look for when considering a commercial property purchase, and the outlook on what opportunities he sees in the future as our market is shifting.


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Episode #2: Building a Real Estate Empire in Commercial Real Estate 
Hosts: Michael Notbohm & Andrew Hoek
Guest: David Donofrio

Episode Summary
Welcome to this episode of the Legacy Wealth Code Podcast, a platform aimed at helping you build long-term wealth and a lasting legacy through real estate investing, tax strategies, and motivational stories from successful people. Meet our hosts, Michael & Andrew.
Our guest today is David Donofrio, a real estate investor with a multi-million dollar portfolio of properties, who got into real estate in 1988 and had a development company starting back in 1992. David started out working for Whiteman Realty for about a year and later started brokering for clients like Chevron who he represented on the disposition of their excess properties. 
In this episode, our hosts sit with David Donofrio as he describes an early passion for real estate, and his systematic intentional entry into the space with specific insights on how to identify good deals and practical tips that helped him grow successfully in his career.   

Episode Topics
[00:34] Meet today's guest, David Donofrio. 
[01:01] Getting into real estate from senior year 
[05:04] About David's investment approach; develop and hold.  
[08:08] Metrics to determine a good deal; Focus on the site
[10:07] Structuring a deal
[13:03] David's advice to new investors. 
[15:30] What properties have you let go of, and why?
[16:48] How David handles his biggest challenge over a 30-year career; local governments. 
[18:41] How do you go about tenant management? 
[20:48] Vetting construction workers and the efficiency of their work. 
[23:42] What has been your best investment so far?
[26:20] Is there any investment people should currently be considering? 
[30:51] Being semi-retired, do you see yourself doing more projects? 
[37:10] What real estate opportunities are you excited about on the horizon?

Notable Quotes
"Let's face it, you get a lot of 'No's in real estate, especially on the commercial side" - [David Donofrio]
"What is value; value is your time and your health, especially the older you get those are the two most important assets you have" - [David Donofrio]
"If you buy the site right, you buy the land right, you'll be okay" - [David Donofrio]
"You have to look at the fundamentals, you've got to love the dirt, you've got to love the site, you've got to love the real estate; if that component isn't there, don't do it" - [David Donofrio]
"Scared money never makes money" - [David Donofrio]
"Die with zero because you can't take it with you" - [Michael Notbohm]
"You make money on the buy, not on the sell" - [Andrew Hoek]