Why Smart Investors Are Buying Bank Notes Right Now

Join an active community of RE investors here: https://linktr.ee/gabepetersen
0:00 Introduction and Brad's Background
4:30 From Single Family Rentals to Commercial Real Estate
9:15 The Self Storage Business Model Deep Dive
16:30 Managing Occupancy in a Soft Market
19:20 Distressed Asset Opportunities and Note Buying Strategy
27:35 Quick Fire Round: Networking and Building Relationships
31:10 Biggest Lessons from the 2008 Downturn
35:00 How AI is Transforming Property Management Operations

HOW TO SCALE FROM RESIDENTIAL TO COMMERCIAL REAL ESTATE 🏢

In this episode, I sit down with Brad Andrus from Northbridge Commercial to discuss one of the most powerful scaling strategies in real estate investing. Brad shares how he went from managing 20 individual single-family rental properties to owning just 5 commercial tenants while dramatically increasing his cash flow and reducing management headaches. This transition story is something every residential investor needs to hear because it demonstrates the power of trading up through strategic 1031 exchanges and focusing on commercial assets like light industrial and self-storage facilities.

SELF STORAGE INVESTING IN TODAY'S MARKET 📦

We dive deep into the self-storage business model and why it's become one of Brad's primary focus areas. He explains the covered land play strategy that led him into his first storage facility and how he discovered the power of having hundreds of month-to-month tenants instead of long-term commercial leases. Brad shares his current approach to managing occupancy during the soft market we're experiencing right now, including the strategy of prioritizing physical occupancy over economic occupancy during the lease-up phase. This is critical information for anyone considering self-storage development or acquisitions in the current environment.

THE HIDDEN OPPORTUNITY IN DISTRESSED COMMERCIAL NOTES 💰

One of the most fascinating parts of our conversation covers Brad's recent shift into buying non-performing notes directly from community banks. He explains how 20-plus years of relationship building in his local market has created these off-market opportunities where banks are calling him first when they have problem loans. Brad walks through his process of acquiring notes, attempting workouts with borrowers, and ultimately foreclosing when necessary to acquire boat and RV storage facilities at significant discounts. This is a strategy that most investors never consider but can be incredibly profitable for those with strong banking relationships and local market knowledge.

LOCAL MARKET MASTERY VS NATIONAL DIVERSIFICATION 🎯

Brad makes a compelling case for the power of deep local market expertise versus spreading yourself across multiple markets. He operates exclusively within a 20 to 30 mile radius of Denton, Texas, and explains how this hyper-local focus has enabled him to build the relationships and market knowledge that create deal flow others can't access. We discuss the two camps of successful real estate investors: those who focus on becoming the expert in their local market across multiple asset classes, and those who become asset-class specialists operating nationally. Both strategies work, but trying to do both simultaneously is a recipe for mediocrity.

AI IMPLEMENTATION FOR REAL ESTATE INVESTORS 🤖

As the host of the Weeks Ahead AI podcast, Brad shares practical examples of how he's implementing artificial intelligence in his property management operations. His team built a custom AI agent that analyzes their monthly financial reports for 80+ properties, reducing review time from two days to just two hours. This is the kind of operational efficiency that allows small teams to scale dramatically without proportionally increasing headcount. Brad emphasizes focusing on repeatable, monotonous tasks that don't require human intelligence but consume significant time, making them perfect candidates for AI automation.

Want to learn more about our guest? Connect here: www.linkedin.com/in/brad-andrus

Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen
#CommercialRealEstate #SelfStorageInvesting #RealEstateInvesting #AIinRealEstate #DistressedAssets