How to Scale Commercial Real Estate

Mar 6, 2022

Why should you hire a virtual assistant (VA)?

Charlie Wessel realized that he could spend more time raising capital if he lets go of the tasks in his business that he is really not interested in. This is a reason he hired virtual assistants and it is why you should do the same. 

Imagine not worrying about what to post on your social media channels because you have someone who will do it for you or being confident you can reach out to your networks consistently because you have someone writing emails to them.

Charlie will share some tips on how to pick the right VA for your business so you can focus more on the things that really matter to you. 

 

[00:01 - 03:16] Opening Segment

• Investing in residential real estate was a “nightmare” for Charlie Wessel
• • He tells us why
• Charlie talks about his reasons for jumping to multifamily

[03:17 - 08:42] Why Hire Virtual Assistants

• A not-so-cheap investment that can scale your business
• Beware of gurus out there who might not be of value to you
• • Here’s how to spot them according to Charlie
• Charlie tells us the importance of hiring virtual assistants (VAs)
• • How to hire the right VAs

[08:43 - 15:16] Why Attend Conferences

• How Charlie finds his deals and what kind of deals he’s investing in
• Should you attend real estate conferences?
• • Charlie weighs in
• Charlie says he’s interested in self-storage and here’s why

[15:17 - 18:40] Closing Segment

• A tool or resource you can’t live without
• • ActiveCampaign
• A real estate mistake you want our listeners to avoid
• • Not measuring buildings while looking from a flex space
  • You should always measure the buildings
• Your way to make the world a better place
• • Giving to charities
• Reach out to Charlie
• • See links below 
• Final words

Tweetable Quotes

“You got to get out, meet people…your network is your net worth and vice versa.” - Charlie Wessel

“You really got to bet on the jockey, not the horse…that’s why I really only focus on doing deals with guys that have a really good track record, a really good work ethic…” - Charlie Wessel

“The easiest, smartest, safest way to [build real wealth] is through multifamily real estate.” - Charlie Wessel

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Email info@cordellcapital.com to connect with Charlie or follow him on LinkedIn. Check out Cordell Capital to start investing in multifamily!

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Email me → sam@brickeninvestmentgroup.com

Want to read the full show notes of the episode? Check it out below:

 

 

 

Charlie Wessel  00:00

I do see a lot of good opportunities in boat and RV storage, kind of like what you were talking about what we've been talking about, you know, I don't know a lot of self-storage sponsors, but you know that game has always killed it. That's always been a really good bet. I am more in the multifamily just out of default cap rates are just crazy compressed right now. So you really got to bet on the jockey, not the horse.

 

Intro  00:27

Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we will teach you how to scale your real estate investing business into something big.

 

Sam Wilson  00:38

Charlie Wessels started in commercial real estate in 2017. He is now a member of the general partnership on four deals in 486 doors. His primary focus right now is raising capital from accredited investors. Charlie's been married for 20 years has three kids and I had the pleasure actually meeting you, Charlie, I think at the Intelligent Investors Conference here just a few weeks ago in Los Angeles. So Charlie, welcome to the show. 

 

Charlie Wessel  01:02

Yeah, thanks, man. Yeah, the first time we met, we had breakfast together. We just kind of were standing there like two last puppies. And we're like, Hey, you wanna have breakfast together? Yeah, dude, let's do it.

 

Sam Wilson  01:10

Let's do it, man. Hey, I love it. Every guest who comes on the show, I ask the same three questions in 90 seconds or less, can you tell me where did you start? Where are you now? And how did you get there?

 

Charlie Wessel  01:18

I started in residential real estate had several rental houses, nightmare, complete nightmare. And then we moved into commercial real estate from advice from a real estate broker, a buddy of mine, I was in general contracting. And all I work for was the commercial real estate brokers, we did commercial construction. And he told me to build real wealth, you got to get into commercial, and the easiest, smartest, safest way to do it was in multifamily real estate.

 

Sam Wilson  01:46

Man, that's brilliant. And that's a good broker to give you those tips because I to cover a background in the trades. And you know, we did lots and lots of large-scale commercial construction projects. And I don't know what the disconnect there is right between the guys doing the work because we ran a flooring operation. We had 30 some odd guys doing millions of dollars a year in projects, but I never had that thought when I owned that company. Why don't I go buy the building and run the project myself instead of just being a contractor? So what was that transition? Like for you running a probably a successful commercial contracting company and then getting into multifamily?

 

Charlie Wessel  02:22

Yeah, it was a big firm, I actually sold it in 2016. All the guys that we work for, yeah, they were brokers that turned us on to them. But all the people that cut my checks, own the bills, Right. So they were tinted outfits. And I mean, these guys had they lived on Daniel Island or Sullivan's Island, or somewhere around here in Charleston, where there's big ass houses that are worth a lot of money. And they just, you know, they kind of float on their own beat, man. And yeah, I want to be like those guys. So anyways, yeah, that's kind of what got me started was seeing all these people that were writing the big checks to us,

 

Sam Wilson  02:58

Right. Yeah, I think that's really interesting. It's a point that I make, you know, more often than not, which is if you have an industry, or maybe it's not real estate, but want to get anything you want. Go find somebody 20 years further along in the business than you see what their life looks like and see if that's where you want to be in 20 years. If the picture that they present isn't the life you want to lead, don't go do what they want what they're doing.

 

Charlie Wessel  03:17

Absolutely, man, that's kind of why we got caught up. Why was that I rec was the conference was because of we're raised masters, and there's just so many guys there that have done hundreds and hundreds of millions of dollars worth of real estate that are actually in that program. You look at them, and you're like, Why? Why are you in here? You know, you raise $60 million last year, why would you be in here, Right. And, you know, they're like, man, we can always sharpen the game. Let's sharpen the sword and get out there. And you know, we get around people that have proven their methods. And it's like the Ray Kroc theory, man, don't reinvent the wheel brother. You know, he started McDonald's said, hey, look, if you want to own McDonald's, you do it this way. Right. And you'll be successful. I promise. So yeah, we just follow the lead of successful people. 

 

Sam Wilson  04:00

Man, is that one of the ways you know, that you've found, you know, the way to, I guess scale your portfolio is by just surrounding yourself with like, people?

 

Charlie Wessel  04:07

Yeah, absolutely. You know, we talked about it. It's not a cheap investment, but it pays itself off quite handsomely. And then just from surrounding yourself with the people, you know, deal opportunities, capital opportunities that come in to your deals. It's yeah, you got to pay to play man.

 

Sam Wilson  04:24

That's really interesting. How did you select, you know, the programs that you are a part of? I mean, there's so much out there and a lot of it, I'll just say it is garbage. So yes, you know, and I hate to say that, you know, publicly here on the show, but it is there's so much the people I call go route or guru, but no do you know they're gonna sell you a course but they can't raise $1 in their life.

 

Charlie Wessel  04:45

Right. And I went to their conferences. Yeah. So I went through their conferences, you know, and sat through their programs. And, you know, I do a lot of research on people, man. I mean, I can Facebook and LinkedIn stalk somebody in a heartbeat man, and really find out what the They have what they don't have what they say they have. And, you know, I started off going to one guy's conference who's a guru who really didn't. He had like two deals. And I mean, within the first year, I was where he was, and he had a slew of, you know, quote, unquote, guys, he was training to do what he does, which I guess after a couple of deals, I mean, you know, every deal is different. And it's kind of the same, you know, mindset and, you know, underwriting and stuff like that. But still, I want to be under somebody who knows what they're doing. I picked 100 Thompson's course, man, just because I listened to his podcast for a couple of years. And his podcast is just brilliant. I mean, it really is. It's like your podcasts. It's no-nonsense. It's to the point. And it's information. You know, I want information I want meat and potatoes, man.

 

Sam Wilson  05:47

For sure. Tell me about a mistake, you know, that you've made here in the last four years or so maybe, maybe not even a mistake, but something you could have done differently that would have expedited your progress.

 

Charlie Wessel  05:57

Hired a VA sooner? Hmm, yeah, I hired a virtual assistant sooner. I mean, I was doing stuff that I shouldn't be doing. You know, I mean, stuff that is not, you know, it's not worth my time to do social media marketing. I mean, I'm, I post on social media every day, and I'll post it on Instagram every day for two years, man, I just got Instagram on my phone, like, a couple months ago, I don't even know how, you know, like, I have to type my VA responses, because I don't know how to respond on Instagram. So that's how, you know, she does that we still get investors from it. And, you know, that's just one of my little dirty secrets, I guess is I don't really do the social media stuff.

 

Sam Wilson  06:36

And that's okay. I think that's a common question, you know, that I see batted around on social media is, hey, you know, should Is it okay, if somebody else posts for me, things like that, I think as long as the content is informational, and is you know, sharing something of value for other people. A, okay to have somebody else post for you. You know, absolutely.

 

Charlie Wessel  06:55

I mean, I approve everything that gets put out there before it goes, is that like she just blindly throwing stuff out? But you know, I'll go in and edit it or something like that. She puts it all and dumps it all in a folder. And then I check it out and sticking it on prove folder, and then she uses it. So wow,

 

Sam Wilson  07:11

hey, that's cool. How did you hire let's talk about hiring a VA. There's so many resources out there. Now. There are virtual assistants or I guess the new politically correct term is virtual professional, whatever you want to call it. But there's so many different platforms that you can select from and or just go out and do a direct-hire on your own. What was your…

 

Charlie Wessel  07:30

Yeah, for sure. I'm not a very PC dude. And I haven't heard that term yet. So I'll have to run that by Mafi today and see what she prefers to be called, I guess. Yeah, but yeah, we use rocket station. I mean, they kind of put the whole thing together. When I hired a VA, I didn't even really know what I was gonna have to do. I just knew that I needed one because all the big boys had one and I want the big boys have so we rocket station, they lined it all up, you know, getting interviewed me for about 45 minutes or so and found out what my day looks like what I do. And they were like, yeah, we can fill this VA up with stuff to do.

 

Sam Wilson  08:06

Wow, that's really cool. Now that you have that time freed up, what do you focus on

 

Charlie Wessel  08:10

raising capital? Man? You know, I've played golf twice a week with several investors. And you know, my wife always says it's gotta be tough being Charlie Wessel. I'm like, Yeah, I'm a bad, darling. But yeah, you know, I'm here in my office every other day. And we have making phone calls. I have about four phone calls lined up today, you know, trying to put some deals together. Like, you know, we were talking about some deals. I got a call with that guy later this week. And hopefully we can get together on that. Yeah, man, just, you know, trying to make some coin out there, man.

 

Sam Wilson  08:43

How are you finding deals right now? I mean, it's a crazy environment to be in. You're based in Charleston, South Carolina, which I mean, if you're in the Carolinas, the southeast anywhere, like it's people are duking it out for multifamily deals and cap rates just keep compressing, what are some strategies that you're using to find opportunity?

 

Charlie Wessel  09:03

Well, I'll be honest with you, man, we're more on the capital raising side of it. So I have teamed up with several really good sponsors, and we come in as the capital arm and bring money into their deals, and we get part of the GP and we usually do, you know, the investor relations part of it. So we'll send out you know, investor emails and stuff like that. And, you know, we still I still traveled all the properties that we bring our investors to just from a fiduciary responsibility for our investors capital, you know, I mean, we still do our own due diligence and underwrite each property ourselves. But these guys that I work with, man, they're pretty Stand Up Guys, and they have a pretty good track record.

 

Sam Wilson  09:46

That's really fascinating. What did you I mean, obviously, bringing capital to table is one thing taking the investor relations off of their plate is another. How did that conversation you know, evolve because you go in, you're like, Hey, my name is Charlie Wessel. I'm new. To multifamily, and I want to work with you, they're gonna go Okay, Charlie, tell me actually what happened.

 

Charlie Wessel  10:05

Hey, man, you know, you don't know what you don't know and you don't you know, I didn't do it until I did it. So it was kind of one of those things man where I just met some people at a conference and they had like 12 or 13 properties. And I was like, yep, these are the guys I want to get around because they know what they're doing. You know, I don't hang out with many people that have done one or two deals, we make sure that these guys, we vet these guys really well. And you know, I just met him at a conference, I've met every single one of them at a conference actually, that I work with. One of them was at a meetup group here in Charleston, that happens on Friday mornings at like, 6am. And we all break bread and have coffee and talk about it. And yeah, I met lawyer and developer down here in Charleston, and we have a deal in Greensboro that is just killing, I mean, killing it. So yeah, it's just all about making, you know, good relationships out there with the right people.

 

Sam Wilson  10:57

You know, that's interesting. And I found the value and like, we were talking about this, before we kick this off, was the value in conferences. You know, when I first started out, I think I've really found the value in the content being presented. Now, I don't go to conferences necessarily to sit and listen, you know, whatever is being talked about on stage, I go to stand in the hallway and talk to people like you. And it sounds like that's kind of your take on the matter as well. Yeah.

 

Charlie Wessel  11:20

100 sent out a survey and said, what was the best session of his conference that I thought that I had, because there was a lot of sessions there. And it was a lot of really good information. And I did sit through most of them. But the best sessions I had were out in the hallways and at breakfast with Sam Wilson. I mean, you know, I'll be honest with you, Sam, I mean, I plan on knowing you for a long time to come in. Right. And you know, if we can do some deals together, that'd be great. You know, if not, we can go hunting and go shoot animals again. Or something, man, I don't know.

 

Sam Wilson  11:49

Sounds like a winner. Man. That's fantastic. Yeah, I love that. What are some hints or clues you would give to people? Maybe if they haven't yet begun attending larger conferences? Somebody goes to one of these? What's the best way to maximize your time?

 

Charlie Wessel  12:03

I would say a roomful of big people, man, you know, I can freeze up pretty quick. One on one with somebody I can talk like nobody's business. But you know, around a bunch of people, I don't know, I can stand in a corner real quick and just look around at people. Right. But you got to get out there and shake some hands, man. I mean, you know, I was amazed at the first two conferences I went to, I found myself standing in the corner looking at everybody, I don't know. And I just, you know, just started walking up and talking to people. And it was a whole lot easier than I thought. I mean, being a contractor, you know, most of time we're kind of introverted, right. So yeah, you got to get out meet people, man. I mean, your net worth is your network, and vice versa. So…

 

Sam Wilson  12:45

Yeah, and I think the other interesting thing is that, in general, I'm totally an introvert. And so I have to really focus and say, All right, when I walk up to meet you, we're both standing in line. They're like, hey, this guy's looking for a manual, say don't eat breakfast. Yeah, let's do Yeah. Okay, cool. That is not my natural go to right when you get invited either, man, Right. But when you get in conference mode, it's like, Hey, wait, you just got to remember that everybody else probably wants to hang out and talk to people too. So you might as well just go up, shake hands. Hey, I'm saying I'm nice to meet you. And yeah, and just start asking questions. 

 

Charlie Wessel  13:15

See, it's easy to do after the conference when the drink start flowing. But before at breakfast, man, I really don't you know, I'm not looking to socialize.

 

Sam Wilson  13:25

Well, sorry, I ruined that breakfast for you. No, no, no, it was great. Let's talk a little bit about what you see happening here in 2022. I know you guys are focused predominantly on multifamily. Are there other asset classes that you're interested in? What do you see the next I guess what's left in this year? 10 and a half months remaining for 20.2?

 

Charlie Wessel  13:43

Yeah, I mean, me living by the coast, I do see a lot of good opportunities in boat and RV storage, kind of like what you were talking about what we've been talking about, you know, I don't know a lot of self storage sponsors. But you know, that game has always killed it, that's always been a really good bet. I am more in the multifamily just out of default, cap rates are just crazy, compressed right now. So you really got to bet on the jockey, not the horse. You know, these guys. That's why, you know, I really only focus on doing deals with guys that have a really good track record, a really good work ethic, and they put their nose to the grindstone every day, and they're really focused on making sure the business plan is followed on these properties. And you know, when you have to pivot, you got to pivot. But, you know, for the most part, we've done really well.

 

Sam Wilson  14:34

Right, I love your points there, of betting on the jockey, not the horse, because that is certainly the name of the game right now. And that's the first thing I always tell people to focus on. Like if you're looking at a deal passively. You got to look at first and foremost, who is the sponsor? Absolutely. Then you look at the market and then you look at the very last thing you should care about is the actual deal itself. So yeah, and I think the same thing holds true on when you're our Investor Relations and being part of the GP but also him The capital raising side is that you got to align yourself with the right people first and then the rest will fall in place.

 

Charlie Wessel  15:05

100% man because you know, I can lose my money. I can't lose your mind.

 

Sam Wilson  15:09

Right. Yeah, that's absolutely true. I will take risks with my own capital that I will not take with investors' capital. Absolutely. Yeah. I mean, I love that chart. Let us jump here in the Final Four questions. First one is this what is one tool in digital thing software that you find you can't live without? 

 

Charlie Wessel  15:25

Active Campaign. 

 

Sam Wilson  15:26

Ah, that's an interesting one. Did you figure that out on a pretty robust program? Have you figured that out on your own? 

 

Sam Wilson  15:32

No, that's why God made a VA. I love it. Okay. Very good. Active Campaign. Yeah, that's a good and very again, robust program. Love some ActiveCampaign. Question number two, what is one mistake you could help our listeners avoid? And then how would you avoid it?

 

Charlie Wessel  15:46

Measure the building? If you're looking at a flex space? Yeah, we got deep into a project, you know, had probably $7,000 and due diligence caught up on a flex space here in the Charleston area. And we never measured the building man. For some reason. It was so stupid. So something so small is taking out your measuring wheel and measuring it. It was 30% less square foot than was advertised. So no wonder it penciled out like a champ. Because I mean, you live and die by square footage and flex space. 

 

Sam Wilson  16:14

Wow. Was that from an assessor's office problem where it was just incorrectly measured there? Or was the broker incompetent?

 

Charlie Wessel  16:22

Yeah, no, it was a little self-entitled broker that just don't like to work very much. Wow. Never heard you say I bought a measuring wheel that day, went to the Hallmark store, bought a bow slapped it on the damn thing and dropped it off at his office.

 

Sam Wilson  16:40

That's an expensive measuring wheel.

 

Charlie Wessel  16:42

I mean, very expensive measuring wheel. 

 

Sam Wilson  16:44

Yeah, I hope it had a gold handle or something for 7000 bucks. Man. That's a great lesson to learn. Thank you for sharing that. I've not heard that. You hear all sorts of stories with that question. That's a painful one. So think…

 

Charlie Wessel  16:55

Yeah, square foot doesn't really matter that much in multifamily. But in flex space, or office or something like that. I mean, that's what the rent goes by.

 

Sam Wilson  17:02

Right. Yeah. 100%. That's tremendous. Thanks for sharing that question number three for you. When it comes to investing in the world. What's one thing you're doing right now to make the world a better place?

 

Charlie Wessel  17:10

I tell you what, man, we give to a couple of different charities here. One is the low country pregnancy center. It's a Christian-based organization that helps, you know, newly found pregnant women in a bind, and they go in and help them out quite a bit. We give them quite a bit of money every month, I really firmly believe in what they do. You know, they've saved 1000s of babies here in the Tri-County area. Another one is the Fellowship of Christian Athletes. I played football in high school. We give them money as well.

 

Sam Wilson  17:41

That's really cool. Yeah, both of those are tremendous resources. Thanks for doing that. Charlie. If our listeners want to get in touch with you or learn more about you what is the best way to do that?

 

Charlie Wessel  17:49

You can go to Cordell Capital and sign up our investor club list and in the top right-hand corner of the website, and we can meet that way. Or you can send us an email info at Cordellcapital.com.

 

Sam Wilson  18:04

All right, we'll make sure to put that in the show notes. And just for those of you who are listening that is Cordell, C-O-R-D-E-L-L, capital dotcom. Charlie, thank you for your time today. I certainly appreciate it.

 

Charlie Wessel  18:14

Thank you, Sam.

 

Sam Wilson  18:15

Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen, if you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners, as well as rank higher on those directories. So I appreciate you listening. Thanks so much and hope to catch you on the next episode.