Summary:
What is the real deal with commercial real estate in this COVID era? Michael Brown, the founder of Red Fox Capital and Red Fox Wealth, is a commercial real estate investor and developer who’s on the show to give us the inside scoop. Listen in to hear Michael’s predictions about the future of commercial real estate, how he learned the secrets about investing (then published them!), and how Amazon and data centers are impacting industrial space. Michael has a free gift for all you listeners, so be sure to tune in and hear how to claim it!
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Time Stamped Show Notes:
- 00:50 - Introducing Michael, the founder of Red Fox Capital and Red Fox Wealth
- 01:05 - They are a commercial real estate investment and development company as well as a full-service wealth management company
- 02:15 - He learned the inside by working at Merrill Lynch for a couple of years; he couldn’t talk about real estate because it wasn’t a product
- 03:35 - REITs (Real Estate Investment Trust) operate like stocks, they fluctuate with the stock market
- 04:15 - He wrote a book called The Real Perspective: Secret Investments Your Financial Advisor Won’t Tell You About and published it
- 04:30 - They now talk to clients about private investments and created integrated portfolio management to control private investments that they can offer clients
- 05:45 - Commercial real estate
- 06:55 - The things that Amazon can’t control are going to be good for commercial real estate investing; dry cleaners, nail salons, etc.
- 07:20 - He’s also looking at Dollar General stores; they keep cost and prices in line with cheap building costs and prefabricated solutions
- 09:00 - Predictions for business districts: D.C. is protected because of government money but NYC is losing tenants every day
- 10:10 - There might need to be tax incentives to get people back into cities; there are also mixed-use solutions that are possible
- 11:30 - Opportunity zones: Tax incentives in areas that have been challenged
- 12:15 - They have not fully engaged in opportunity zones
- 14:05 - Michael’s CSIRE story
- 14:20 - He got into heavy industrial real estate; he drove into an ugly area, got a new listing, and never thought he’d sell it
- 15:15 - They sold it to an investment group and that group made another $2 Million; he never knew the opportunity was there
- 16:30 - He started working the industrial market and had a blast; Amazon has taken over and is pushing industrial users out of their areas
- 16:55 - Ecommerce is really making an impact on industrial space; they need space and will go anywhere
- 17:35 - Data centers are also taking over
- 18:15 - Michael’s take on the 1031 Tax-Free Exchange
- 18:30 - We are in the lowest tax bracket this country will see in a long time
- 18:50 - There are two options for the country: Stop spending or raise taxes
- 19:05 - There’s a short time frame to find another property and many clients get hasty and make more than a 15% capital gains tax mistake on the property
- 19:30 - He wants people to take a step back to make sure the 1031 is their best option
- 20:10 - The best way to reach Michael (and get your free copy of his book!): email him at mikebrown1757@gmail.com
- 20:45 - Visit his company websites at www.redfoxcapital.co and www.redfoxwealth.com
3 Key Points
1.) Diversify your investments.
2.) Don’t judge a book by its cover!
3.) Sometimes you can’t always see an opportunity that is right in front of you.
