Todd Nepola is the president and founder of “Current Capital Group” and a real estate veteran with over 25 years of experience as an investor, manager, and director. He shares why complacency is a killer, why you should rent instead of owning a home, and why he’s so bullish on buying strip malls.
Todd’s first real estate deal back in 1998:
“Too many people think I had this vision of building a real estate empire one day, and it was nothing like that. I was just looking for something that would distribute cash flow, because my primary job as a stockbroker was on commission. So, literally, I was driving down the street here in South Florida on State Road 7 and there was this beautiful warehouse that was 13,000 square feet and it had a for sale sign that said, ‘Bank Foreclosure.’ So, I called the bank. They said the property was $600,000 and if I could close faster, they would do a little bit better, and I thought I stole it for buying it for $575,000.”
Why he is bullish on buying retail buildings:
“In the last five years (I’ve primarily bought) retail. And the reason why is because people didn’t want it. When Jeff Bezos came along with Amazon it was supposed to be the death of retail, but I didn’t actually believe that to be true, because I never understood how you were going to go to the chiropractor (for example) online. So, my shopping centers aren’t filled with big box centers … it’s really primarily the chiropractor, the dentist, the Dollar General, the grocery centers. So, I believed in them, and I kept on buying them.”
How to make money buying office buildings:
“You have to be the operator who knows what they’re doing. If you think you can just buy an office building right now and hire a management company and sit back or just put up a ‘For Rent’ sign and think that it’s going to work, it probably won’t. You’ve got to be creative.”
The downside of home ownership:
“The problem I have is that far too many people say, ‘I bought a house. This is the best investment I could make.’ And I try to recreate the point that it’s a terrible investment. And then they want to preach to me, ‘But listen, Todd. I’m paying off my mortgage versus paying rent and wasting the money.’ And they’re not understanding the dynamic that your real estate taxes are out the window, your maintenance and landscaping are out the window, your roof repairs are out the window. The equity you’re paying down is simply money you’re putting there from your savings. That doesn’t make it an investment.”
On why you must stay hungry, even after you’ve been successful:
“It seems like once you have some money you get scared to make decisions. Yet, there’s a kid out there right now getting a credit card for ten-grand that he’s going to use to start an online business. He’s going to risk it all. And the rich guy just wants to buy bonds and stay safe. So, I always say that you have to get uncomfortable and get used to being uncomfortable or you are going to get complacent, and you know what happens then.”
His book, “Keeping it Real on Commercial Real Estate”:
“I wrote the book for the basic person who doesn’t have any understanding of investing in properties. So, I gave you everything from how to invest in retail, industrial, office, even if I don’t do it. And all the other options: investing in publicly traded companies, investing as a limited partner, there are so many different ways to do it. So, the whole book is great for the average person who just wants to learn about investing in real estate. … And all (of the book’s proceeds) goes to charity.”