Andrew and Dan welcome Brad Shepherd, founder and managing partner of Sugar House Investments. They dive deep into real estate investing and discuss how it can be a powerful tool for individuals to achieve their goals, such as financial security, tax benefits, and a flexible lifestyle. Brad explains that Sugar House Investments helps investors access commercial real estate's passive income without the hassles usually associated with it. He outlines their typical investment strategy, which involves vetting operators who have done at least a handful of deals already and looking for deals that will offer investors significant returns over 3-5 years while providing 6% income.    The conversation also covers other potential risks like deep value add properties, new construction elements, and hurricanes. Finally, listeners get insight into Brad's diverse set of real estate experiences, including vacation rentals, tourist spots, a hotel in Southern Illinois with retail, hospitality, and art gallery elements, plus his business experience gained from the construction scene in Illinois. [00:01 - 06:08] Opening Segment Introducing Brad to the show Brad has been in the real estate space for over 20 years and is passionate about helping individual investors access passive income without the hassle Real estate is a powerful tool to help individuals achieve their goals, whether that's more time at home or travel or sending kids to good schools Sugar House deals typically involve strip malls, apartment complexes, etc., with 3-5-year-olds and 6% returns   [06:09 - 11:05] Evaluating Operators and Building Trust for Maximum Impact Partner with multi-family operators, one in self-storage and one in industrial Looking for B-class properties to take to B+ Geographically focused in Phoenix, Texas, Florida, Carolinas, Georgia Equity amounts generally 5-15 million Vetting operators based on track record and integrity   [12:06 - 20:06] Lessons Learned from a Failed Real Estate Investment Doing background checks and deep vetting of operators Making sure they have the funds to cover any surprises Finding the right people on the team with financial acumen Brad's best deals involve a team sport with a general contractor and designer Brad's worst deal was an operator with poor communication systems and hurricane risk Do more due diligence and search for the suitable operators [20:07 - 24:57] Taking Risks and Reaping Rewards Focus on accredited investors with a decent chunk of cash at their disposal. Experience in hospitality investing in unique markets such as upstate New York, Southern Illinois, Utah, etc Built a 3-story building with retail and cafe on the ground floor, hospitality suites on the top floor   [24:58 - 31:27] Closing Segment What is your biggest win? Brad's favorite movie and food A plus content Brad is taking in these days Connect with Brad through the links below! Quotes:   "Operators are not rare. You're not lucky just by being able to write them a check." - Brad Shepherd   “You can't go from a lone wolf house flipper to a successful commercial operator as a lone wolf. You've got to put teams together. Some people are going to be great at finding the deals, the broker relationships, and managing the management." - Brad Shepherd Connect with Brad! Website: www.SugarhouseInvestments.com  Twitter: https://twitter.com/bradshep    --   LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, YouTube, or whatever platform you listen on. Thank you for tuning in, and Stay Tuned for the next episode COMING SOON!

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