Episode

383. 100 Doors. 35% Returns. Why He's Walking Away.

Podcast
The Commercial Real Estate Investor Podcast
Published
May 28, 2026
Duration seconds
2232
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not_requested
Canonical source
https://www.tylercauble.com/podcast/episode383
Audio
https://static1.squarespace.com/static/5c115fec9d5abbba78a23c93/t/6a178eb49f59236fea99ea8c/1780095387388/Ray+Smith+Interview+-+Final.mp3
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/v1/public/podcasts/the-commercial-real-estate-investor-podcast-1247143/episodes/383-100-doors-35-returns-why-he-s-walking-away
Markdown
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Summary

Key Takeaways Private money + confidence Ray rebuilt after 2009 by using private capital from friends/family and backing it with confidence and a clear story. Buy cheap, cash-flowing assets Single-family play: buy well below rebuild cost , add light renos, and rent Section 8 for strong cash flow. Principle carries forward: hard to lose if you buy under value. Why exit 100 SFRs Headaches and damage from low-end tenants scaled with door count . Commercial/triple-net tenants maintain the space and see it as part of their brand. Early commercial wins First commercial: $30k office with $80k in liens , made workable via city lien-relief program . Realized niche opportunity in turnkey restaurant/first-gen spaces → higher rents, strong demand. How he picks markets/locations Follows directional growth and “vibe” by driving day/night. Buys one street off the main corridor for better pricing + similar zoning. Watches zoning meetings and parking/transit changes to front-run value jumps. Renovation & risk lessons Always add 20–30% contingency on value-add deals. Fully vet tenant equipment + code requirements (his tenant’s oven added ~$50k in surprise work). Best “first commercial deal” for SFR owners Start with a small office / multi-tenant office (possibly occupy one suite). Use it to build bank credibility and learn commercial without jumping straight into a big, complex project.