Retire On Rentals Podcast: Episode with Joe Squires - From Nuclear Submarines to Commercial Real Estate

Show Notes:

In this engaging episode of Retire On Rentals, host Nicholas Cook sits down with Joe Squires, owner of Admiral Properties, to explore his fascinating journey from an electrician on a nuclear submarine to a successful commercial real estate investor. Joe shares his unique path, practical insights, and strategies for building wealth through real estate, with a focus on commercial properties. From flipping houses in the 1990s to mastering the art of negotiation and leveraging long-term investment strategies, Joe’s story is packed with actionable advice and inspiring anecdotes. Whether you’re new to real estate or a seasoned investor, this episode offers valuable lessons on perseverance, creative financing, and the importance of relationships in the industry.

Key Topics Covered with Timestamps:

• Joe’s Background and Entry into Real Estate (00:00:45 - 00:06:30): Joe discusses his humble beginnings, growing up on food stamps, and how his early career as an electrician led him to flip houses in the 1990s. A pivotal mentorship moment with a seasoned investor introduced him to infill housing, sparking his real estate journey.
• Transition to Commercial Real Estate (00:12:45 - 00:16:20): Joe explains why he pivoted from residential to commercial properties, citing simpler tenant dynamics and fewer regulatory challenges compared to residential real estate.
• Negotiation and Financing Strategies (00:29:10 - 00:33:50): Joe shares his approach to owner-financed deals, emphasizing the importance of face-to-face negotiations and understanding the seller’s priorities to create win-win scenarios.
• Long-Term Investment Philosophy (00:20:15 - 00:24:00): Joe and his wife focus on buying, remodeling, and holding properties for long-term appreciation, often taking advantage of zoning changes and market shifts.
• Tax and Legacy Planning (00:24:30 - 00:27:45): Joe discusses using cost segregation for accelerated depreciation and setting up a generational skip trust to preserve wealth for his children.
• Lessons from Mentorship and Networking (00:18:50 - 00:20:10): Joe highlights the value of his involvement in the Entrepreneurs’ Organization (EO), where peer insights have shaped his approach to real estate and business.
• Personal Insights (00:35:20 - 00:40:15): From his love for collecting football cards to his passion for revitalizing neighborhoods, Joe shares what drives him outside of work and his preference for bourbon over wine.

Memorable Quotes:

1. On the Joy of Real Estate Development:
   “I really love saying yes to contractors. I love taking a crappy old building, you know, fixing it up, turning it into something that's viable, that revitalizes a part of town. What is it? A third of the economy is construction.”
   – Joe Squires on the economic and community impact of real estate (00:32:10).
2. On Learning from Mentors:
   “He was like, that’s the problem. Most people are too busy working and they don’t have enough time to learn something that could make them wealthy.”
   – Joe Squires recalling advice from his mentor Dan Jones, which inspired him to take a leap into real estate (00:06:00).
3. On the Simplicity of Commercial Real Estate:
   “Commercial is much more business. I mean, you don’t pay, rent’s due on the first, late on the fifth. If by the fifteenth, you start accruing penalties, it’s not a habitability thing.”
   – Joe Squires on why he prefers commercial over residential properties (00:14:30).
4. On Negotiation as a Rubik’s Cube:
   “It’s like a Rubik’s cube of debt and equity… How much money down do you need? How long can you carry it? What interest rate? It’s not about ripping anyone off; it has to be a win-win.”
   – Joe Squires on the art of negotiating owner-financed deals (00:31:00).
5. On Generational Wealth:
   “Every family should have property… You work your whole life to pay off a house and own it. And then the problem is you pass away and your three kids sell it, remodel their kitchen, go to Disneyland, or buy a boat. An entire lifetime of assets are poof.”
   – Joe Squires on the importance of preserving wealth through a generational skip trust (00:26:50).

If you enjoyed this episode, please like and subscribe to Retire On Rentals for more insights on optimizing real estate investments and creating passive income. Your engagement helps us bring you better content and top-tier guests like Joe Squires. Stay focused, stay driven, and start your journey to retire on rentals today!

Sponsor:

This episode is sponsored by SleepSound Property Management, a leading Portland-based company specializing in multifamily and residential real estate. Visit them at sleepsoundpm.com for help with acquiring, operating, protecting, and selling your properties (00:28:00).

Connect with Joe Squires:

Joe is the owner of Admiral Properties, a commercial real estate firm focused on revitalizing properties and creating long-term value. Learn more about his work and connect through his network in the Entrepreneurs’ Organization (EO).