Insight
Stepp: Female commercial real estate brokers have an advantage securing client meetings
“It's a, there's some benefits of being a woman in this business for many reasons. I mean, I think getting indoors where men can't get in. I mean, it's, they seem to say yes to women a little bit more than they do to men. If I say, call someone up and say, Hey,…”
Insight
Stepp: Generalizing across property types is fatal in commercial real estate
“I think being a Jack of all trades is really a kiss of death in, in, Any real estate, but commercial real estate in particular.”
Insight
Stepp: Professional CRE investors prioritize cost per square foot above all
“That's why most astute, and I'm not saying you're not astute. Investors tend to look at cost per square foot. That's the number one. The pros, all the pros do. That's all I care about.”
Assertion Contradicted
Stepp: Lenders Cap Commercial Real Estate Leverage at 50%
“Nobody's getting more than 50% loan. On anything. Underwriting.”
Opinion
Stepp: Women Represent Disproportionate Share of Top CRE Brokers
“I think there's a Small percentage of women, but the women that are in the business do very, very well. I think the top one percent of commercial real estate brokers that a lot of women are in that pool.”
Assertion Not checkable as stated
Stepp: Commercial sellers often reject full-price offers based on buyer reputation
“Many times I'll tell the seller this, the backstory of a buyer and sometimes they won't even count or even if it's at full price based on the personality and then the reputation of the person.”
Insight
Stepp: Buyers crossing submarkets have a lower probability of closing
“If they're just a person that came from, you know, Downtown Los Angeles that wants Santa Monica or downtown Los Angeles that wants the Valley. It's just it's not a fit. It's generally speaking. So there's a lower probability of closing.”
Assertion Not checkable as stated
Stepp: Over-Leveraged 2020-2022 Property Acquisitions Are Creating Distressed Deals
“Deals that were bought in 20 to 20, 20, 20, 22, they were over leveraged. Those are the opportunity because people are in distress situations now and that it's kind of like a feeding frenzy.”
Assertion Not checkable as stated
Stepp: Active Real Estate Buyers Require Cash-on-Cash Returns in the 7% Range
“Most of the guys that are doing deals, I'm hearing it's the cash on cash return must be in the sevens. You know, to get their attention.”
Assertion Supported
Stepp: 20x Gross Multiplier Deals Are No Longer Happening
“There's no more 20 times gross deals happening. There's certainly not. I'm shocked. I'm shocked. How low even the most prime locations are going on the gross rent multiplier level, cap rate level.”
Assertion Not checkable as stated
Stepp: Rent Growth Has Slowed in Prime Areas but Persists in B Locations
“The demand for affordable units, units in my business also remains very strong and rent growth has slowed very much so in the prime primaries, but not in the B locations.”
Disclosure
Stepp: Indiana real estate properties regularly yield 12% to 13% returns
“The like say in Indiana, I get 12%, 13% returns regularly.”
Assertion Not checkable as stated
Stepp: Out-of-state multifamily costs $50,000 per unit versus $500,000 in coastal markets
“Florida, Texas, Tennessee, Phoenix, some Nevada. It's just opportunities are, you can buy a heck of a lot more for your dollar. You know, the cost per units are like 50,000 a unit versus 500,000 a unit.”
Disclosure
Stepp: Deal sourcers receive an automatic 10% equity partnership stake
“We also incentivize, incentivize someone to bring us a deal. They immediately become a 10% partner.”
Insight
Stepp: Pros buy from mom-and-pops and sell back to mom-and-pops
“There's only two people in the food chain and commercial real estate do really is the pros and the mom and pops. So the buy mom and pops buy from the pros and the pros buy from mom and pops over and over and over again. It's just the way it is. So pros and pro…”
Assertion Supported
Stepp: Austin multifamily market became oversaturated, causing high vacancy
“Austin's a hip town that everybody was like, oh my god, you have to buy in Austin. And yes, it's cheaper than United, I mean, in Los Angeles, but it's, but it got oversaturated with too much product. And then you can't rent your units, you have high vacancies,…”
Assertion Supported
Stepp: Investors Can Easily Buy 5-Cap Properties in Los Angeles
“If you're in this market, you can buy a five cap. Easily.”
Assertion Not checkable as stated
Stepp: Westside LA Multifamily Lacks 100-Plus Unit Institutional Product
“Because Westside doesn't have many a hundred plus unit buildings. In the west side, but they, there exist, but not to a grand scale. So institutional buyers don't usually come and pick one off here and one off there.”
Disclosure
Stepp: Used cost segregation tax depreciation to fund new real estate acquisitions
“I mean, I did cost segregation on all our buildings and that was nice. Nice. Nice amount of change to go buy more real estate.”
