Why Smart Investors Are Buying Bank Notes Right Now

The Real Estate Investing Club

The Real Estate Investing Club
Why Smart Investors Are Buying Bank Notes Right Now
Dec 25, 2025 Season 1 Episode 612
Gabe Petersen

HOW TO SCALE FROM RESIDENTIAL TO COMMERCIAL REAL ESTATE 🏒

In this episode, I sit down with Brad Andrus from Northbridge Commercial to discuss one of the most powerful scaling strategies in real estate investing. Brad shares how he went from managing 20 individual single-family rental properties to owning just 5 commercial tenants while dramatically increasing his cash flow and reducing management headaches. This transition story is something every residential investor needs to hear because it demonstrates the power of trading up through strategic 1031 exchanges and focusing on commercial assets like light industrial and self-storage facilities.

SELF STORAGE INVESTING IN TODAY'S MARKET πŸ“¦

We dive deep into the self-storage business model and why it's become one of Brad's primary focus areas. He explains the covered land play strategy that led him into his first storage facility and how he discovered the power of having hundreds of month-to-month tenants instead of long-term commercial leases. Brad shares his current approach to managing occupancy during the soft market we're experiencing right now, including the strategy of prioritizing physical occupancy over economic occupancy during the lease-up phase. This is critical information for anyone considering self-storage development or acquisitions in the current environment.

THE HIDDEN OPPORTUNITY IN DISTRESSED COMMERCIAL NOTES πŸ’°

One of the most fascinating parts of our conversation covers Brad's recent shift into buying non-performing notes directly from community banks. He explains how 20-plus years of relationship building in his local market has created these off-market opportunities where banks are calling him first when they have problem loans. Brad walks through his process of acquiring notes, attempting workouts with borrowers, and ultimately foreclosing when necessary to acquire boat and RV storage facilities at significant discounts. This is a strategy that most investors never consider but can be incredibly profitable for those with strong banking relationships and local market knowledge.

LOCAL MARKET MASTERY VS NATIONAL DIVERSIFICATION 🎯

Brad makes a compelling case for the power of deep local market expertise versus spreading yourself across multiple markets. He operates exclusively within a 20 to 30 mile radius of Denton, Texas, and explains how this hyper-local focus has enabled him to build the relationships and market knowledge that create deal flow others can't access. We discuss the two camps of successful real estate investors: those who focus on becoming the expert in their local market across multiple asset classes, and those who become asset-class specialists operating nationally. Both strategies work, but trying to do both simultaneously is a recipe for mediocrity.


Want to learn more about our guest? Connect here: www.linkedin.com/in/brad-andrus

Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com or click here: https://linktr.ee/gabepetersen
#CommercialRealEstate #SelfStorageInvesting #RealEstateInvesting #AIinRealEstate #DistressedAssets

Send us a text

Join the Online Community here: https://linktr.ee/gabepetersen.

Support the show

Episode Artwork Why Smart Investors Are Buying Bank Notes Right Now 43:18 Episode Artwork The Bank Secret: When to Buy & Sell Real Estate 36:39 Episode Artwork Why I Stopped Buying Storage Facilities 2 Years Ago 37:34 Episode Artwork How AI Helped Me Close $100K Commissions in 24hrs 42:42 Episode Artwork LP Investing Secrets: $300K Passive Income Revealed 36:50 Episode Artwork How to Make $300K/Year as a Limited Partner (No Toilets!) 36:10 Episode Artwork Family Office Secrets: How the Ultra-Wealthy Invest 36:12 Episode Artwork Legal Landmines: One Lawsuit Could End Your Real Estate Career 32:19 Episode Artwork Debt-Free Industrial: 107 Buildings Without Banks 35:39 Episode Artwork She Built $5M Portfolio While Raising 4 Kids (Lazy Way) 38:25 Episode Artwork How to Raise $10M Without Cold Calling (Fund Secrets) 32:07 Episode Artwork $100M Developer Reveals Ground-Up Real Estate Secrets 27:21 Episode Artwork Co-Living: Triple Your Cash Flow on Single Family Homes 31:50 Episode Artwork Industrial Real Estate: 8-9% Cap Rates with One Tenant 29:49 Episode Artwork Affordable Housing: $36K/Door Properties at 98% Occupancy 37:39 Episode Artwork New Construction Mastery: Ground-Up Development Secrets πŸ—οΈ 30:05 Episode Artwork How She Makes $30K Per Deal Without Spending on Leads 25:27 Episode Artwork $873K From ONE Deal: Luxury Spec Homes & Multifamily Secrets 30:46 Episode Artwork $5K to $12M in Real Estate (Despite No High School Degree) 36:14 Episode Artwork Turn 3-Bed Houses Into 10-Bed Cash Machines πŸ’° 33:53 Episode Artwork 8 Rentals Pay All My Bills While I Travel The World 30:36 Episode Artwork $20K in 90 Days: Virtual Wholesaling Secrets Revealed 43:01 Episode Artwork Real Estate Tokenization Unlocks Instant Liquidity 37:05 Episode Artwork Property Management Goldmine: Turn Your Rentals Into Deal Flow πŸ πŸ’° 27:07 Episode Artwork How Brian Tibbs Retired at 44 While Living in South America 33:07