🗞️ News & Moves 🏠

Retail is heating up. Hotels are hurting.(Commercial Observer)

CMBS distress just fell for the second straight month — now sitting at 10.6%.

But this market is splitting in two.

Retail crushed it — distress dropped 210 bps to 8.6%, its best run in five months.

Strong consumer spend + creative reuse deals are driving the bounce.

Hotels?

Not so lucky.

Distress jumped 130 bps to 11.5% as travel shifts and rising costs squeeze operators.

Office properties have a 19.2% vacancy rate.

Multifamily properties are at 12.9%.

Both are facing major stagnation.

Industrial (0.5%) and self-storage (1.8%) continue to show consistent performance.

They aren't making big changes, just providing stability.

D.C.’s federal office fire sale is back — for real this time. (Commercial Observer)

Do you recall the nearly 1 million square foot federal office in D.C.?

The GSA took it off the auction block last month.

It’s back — along with six other government buildings across the country.

The feds are doing some spring cleaning.

They are getting rid of “non-core” real estate.

This will help cut costs and reduce their footprint.

FEMA intended the Regional Office Building at 301 Seventh Street SW to be its HQ.

Now, it stands as costly empty space.

The Trump-era effort to sell off federal offices is back.

It's gaining speed thanks to Elon Musk and DOGE.

🚨 The Fed Pulse 🚨

If you’re waiting for Jerome Powell to save the markets—don't hold your breath.

Investors love a Fed rescue story.

Cut rates, save the day, stocks moon.

But Powell just ripped up that script.

Inflation is still sticky.

Trump’s new tariffs aren’t helping.

The Fed is revisiting the old Taylor Rule.

This rule states that rates remain high until unemployment rises.

Translation?

No quick fixes.

No bailout button.

Powell’s message is clear: this isn’t 2020.

It’s 1970s energy.

Rate cuts might come — but only after real pain hits.

Until then?

You’re on your own.

Hey friends —

It finally feels like spring is here in Chicago.

And just like every new season, I’m getting ready to plant seeds for the next round of value-add deals.

But here’s the thing about real estate — every season looks a little different.

New conditions.

New challenges.

And you need a different set of tools to harvest what you’ve planted.

Right now?

We’re in a season of higher debt rates — and if debt is the lifeblood (or water) of commercial real estate, we’re basically farming in a drought.

That’s why today I want to talk about seller financing — one of the most important tools in the shed when cheap debt is hard to come by.

10 years ago, if you asked me how to finance a deal, I’d tell you what every banker tells you:

→ 75% loan

→ 25% down

→ Maybe 80%/20% if you’re lucky.

And I really thought that was the game.

But in 2019, I met Rafik Moore. (Facebook)

And it completely changed how I look at deals.

Since then?

Every single building I’ve bought had some version of creative financing layered into it — seller financing, contract for deed, substitution of collateral — tools I didn’t even know existed back then.

Fast forward to this week — we had a record turnout on our Seller Financing webinar with Rafik.

300+ people registered.

150+ people joined us live.

And what I loved most wasn’t just the technical knowledge — it was the mindset.

I want to share 5 big takeaways from that conversation — things I wish someone told me when I was just getting started.

And of course — I’ll drop the replay link at the end if you want to go deeper.

Let’s get into it.

1. Seller Financing Isn’t Just for Desperate Sellers

This was one of the biggest mindset shifts Rafik hammered home.

Seller financing isn’t some trick you pull when someone’s in trouble.

It’s a negotiation tool.

It’s a way to create options when traditional financing doesn’t fit the situation — or when you want to sweeten the deal for both sides.

And here’s the key — Rafik never offers seller financing upfront.

That’s something you bring in after due diligence — after building rapports — after really understanding what the seller wants.

Sometimes they don’t want to discount the price.

But they do want interest income.

Or they want to defer taxes.

Or they want to avoid the headache of a 1031 exchange.

That’s where seller financing wins.

2. Radical Transparency

Creative financing isn’t a problem.

Hidden financing is.

Get everyone on board — seller, buyer, bank, title — and get it all in writing.

No exceptions.

If you’re hiding something from the lender, the seller, the title company — you’re playing the wrong game.

In this business — your reputation is your brand.

When we structure deals creatively — we disclose everything.

We make sure everyone’s comfortable with the terms.

We invite the seller’s CPA and attorney into the conversation.

That’s how you build a long-term career.

Shortcuts don’t last.

Relationships do.

3. Every Seller is a Future Investor

Rafik dropped this line that stuck with me:

"Every seller I’ve done business with has later become an investor, partner, or mentor."

Think about that.

Real estate is a small industry.

People talk.

If you treat sellers right — create a win-win — pay them on time — over-deliver on your word — they’ll want to keep working with you.

Many of Rafik’s biggest deals came from former sellers calling him years later saying:

"Hey, I’ve got another building — want to take a look?"

Or

"I’ve got capital — want to partner on something?"

That’s the long game.

4. The Power of Substitution of Collateral

This one was next-level strategy.

Substitution of collateral means using one property to secure a seller financing loan. This loan has a clause that lets you replace it with another asset.

You can change collateral for a different asset later, but you need the seller's approval.

Why does this matter?

It gives you lots of flexibility.

And it’s something most new investors aren’t even aware exists.

5. Relationships Win Over Terms

You can document every term of the deal on a 10-page document with the highest paid law firm in town but that's not the best way to start.

At the end of the day — real estate is a people business and deal has to make sense for both sides.

Once you and the seller have a meeting of the minds, the attorneys should document it.

Rafik said this best — the first thing he does when approaching a seller is not talk numbers.

He asks to meet in person.

He takes them out for coffee or lunch.

He spends time getting to know them — their story, their goals, their pain points.

And once that trust is built — everything else becomes easier.

Borrow My Confidence

One of my favorite lines from Rafik on this call was:

"Borrow my confidence."

That hit me — because when starting out in real estate, it’s not that you don’t believe in yourself — it’s that you just haven’t done enough deals yet to feel ready to do it all alone.

And that’s normal.

This business is hard to play solo.

It’s built on partnerships, mentorship, collaboration.

So here’s what I’ll tell you:

If you have a deal that feels like a real deal — reply to this email.

Let’s take a look at it.

If it makes sense, maybe we can partner on it.

That’s how I learned.

That’s how I grew.

That’s how we all get better — together.

Final Thoughts

This business is simple.

Not easy — but simple.

Find good deals.

Structure them creatively.

Treat people right.

Play the long game.

And stay around the right people.

If you missed the webinar — it’s worth watching.

Rafik went deep with case studies, stories, and lessons I wish I had 5 years ago.

Until next Sunday — keep adding value!

Be Well,

Saul