Do you feel like you have been caught flat-footed in overpriced real estate due to the volatility in the market? Real estate market cycles are inevitable, and what goes up must come down eventually. Trying to capitalize on short-term success with day-trading strategies can be a risky undertaking in the current market. Instead, consider adopting a patient approach. Investing in a long-term window can help you better navigate the changing landscape and ultimately find profitable opportunities that swing in your favor. That is why we have Shannon Robnett to talk about this very topic.
Shannon Robnett gives “investing in industrial assets” as the answer. According to him, Industrial assets are solid asset class and can help you create residual money. The triple net lease makes the asset class stable for investors. It allows them to pass the maintenance cost, insurance cost, taxes, and rent escalation, which can eat away all the profit in a long-term lease to the tenants. With the industrial asset class, you can stay current with inflation, and your rent is your profit. There are no direct expenses on your income. Shannon also shares that Industrial assets are a hands-off asset class that continues to monitor themselves. You can sign a 40-year deal on your property with a single tenant, get a 20-year note, and come back in 10 years and see how it’s doing.
Shannon grew up in a real estate family, but everything he learned at the kitchen tables besides his table manners was the 1031 exchange, how to avoid taxes, and how to make your investments work for you. With that background, Shannon thought he was smart and would go to college and do something real with his life, only to find himself watching his younger brother make handsome profits with just a high school education. Shannon rethought his strategy, got real estate, and started his investment journey in single-family homes but quickly discovered he didn’t want to be a homeowner. He pivoted to commercial construction but realized that the people he worked for were creating assets that made residual money. Shannon pivoted again in 2001 and built his first industrial investment, which still has 2 of the original tenants 22 years later.
That is what Shannon shares with Fuquan today. He emphasizes that understanding the versatility and the ability of real estate not only to pay you today but also to lower your taxes and create income for a lifetime can help you achieve financial freedom. Real estate is one of the few vehicles that, when approached diligently, can provide residual income for a lifetime.
Tune in to gain insights into Shannon’s industrial asset investment strategy and valuable tips on how to maximize your profitability in a volatile market, stay ahead of the game, and secure your financial future.
Highlights from the interview
- Shannon’s background and how he got into industrial real estate space
- How the volatility in the market has affected Shannon’s business model
- The depreciation, passive income, and tax advantages of holding real estate
- Why Shannon is passionate about investing in real estate
- Investing in a long-term window for long-term gain
- Why Shannon chose to invest in the industrial and not multifamily asset class
- Triple net lease strategy in industrial assets and how it makes them a stable asset class
- How to go deep in your market to find hot and strong markets
About Shannon Robnett
With over 25 years of experience, Shannon has been involved from start to finish on over $350MM in construction projects such as multi-family, professional office buildings to city halls, fire and police stations, schools, industrial projects and mini storage. Along with his knowledgeable team at Shannon Robnett Industries (SRI), Shannon is dedicated to sharing his expertise and delivering top-quality projects that bring numerous passive income streams to his syndicate partners.