If you feel like you're doing everything right and you're still not finding good commercial real estate deals, it's probably not the market. It's not because interest rates are too high. It's not because there are "no good deals out there." It's because you don't have a system.
I see this all the time with newer investors. They're scrolling LoopNet and Crexi, hoping something jumps out at them, and then they get frustrated when nothing works. The problem isn't a lack of deals. The problem is that most investors have never sat down and defined exactly what they're looking for, how to quickly screen a deal, and how to find opportunities that aren't even listed.
Today, I'm going to walk you through the exact deal filter system that I teach inside the CRE Accelerator. It's a three-step process: build your buy box, learn the napkin math, and use public records to find off-market deals. Let's get into it.
Here's what we'll cover:
Step 1: Build Your Buy Box so brokers actually take you seriously
Step 2: The Napkin Math to screen deals in 60 seconds or less
Step 3: Finding Off-Market Deals using your local GIS and tax records
Step 1: Build Your Buy Box (And Actually Write It Down)
This is where most investors completely drop the ball. They say they want to invest in commercial real estate, but when you ask them what they're looking for, they say something like, "I don't know, whatever's a good deal." That's not helpful. Not for you, and definitely not for the brokers you're trying to build relationships with.
Your buy box is a one-page document that spells out exactly what you're looking to buy. And I mean specific. One of our CRE Accelerator members, Chris, put together a buy box that I think is the gold standard for how to find commercial real estate deals efficiently.
Here's what Chris included:
What he's buying: Retail and service flex space. If you're not familiar with flex space, it's one of the most versatile commercial property types out there.
Target location: Within 20 miles of his zip code in Gainesville, Florida.
Building criteria: Minimum 3,000 square feet, maximum 20,000 square feet. He's willing to go smaller on retail and larger on warehouse because a 20,000 square foot retail building is going to cost substantially more than a 3,000 square foot warehouse.
Construction type: Concrete block or steel (he's in Florida, so this matters).
Deal killers: Properties outside his radius, no septic (city water and sewer only), no environmental issues, no properties with shared utilities.
That last one about septic? Chris added that after we were looking at a deal for him that checked all the boxes. When he started digging in, the city told him he'd need to run city water and sewer to the property, which would have cost a fortune. Lesson learned. That's now a hard stop on his buy box.
And that's the beauty of a buy box. It's a living document. You refine it as you learn.
Why Brokers Love a Good Buy Box
Here's the thing most people don't realize. When you hand a broker a well-defined buy box, you immediately separate yourself from 99% of the tire-kickers they deal with every day. If I'm a broker and I get a property that checks Chris's criteria, he's the first person I'm calling. Because he clearly has it together. He's clearly done this before. This isn't some random "I want to invest in commercial real estate today" kind of thing.
So if you're struggling to build relationships with brokers, put a buy box together. I promise it will change the game.
Step 2: The Napkin Math (Screen Any Deal in 60 Seconds)
Once you have your buy box and deals start coming in, you need a way to quickly tell if a deal is even worth underwriting. I'm not talking about full-blown financial analysis here. I'm talking about a simple calculation you can do on the back of a napkin.
Here's how it works:
Take the cap rate you want to hit when the deal is stabilized. Let's say you want a 12% cap rate. Now, take the price per square foot of the building. Let's say $100 per square foot.
12% cap rate x $100 per square foot = $12 per square foot
That $12 per square foot is the triple net rent you'd need to achieve to hit your target return. So you take that number and you compare it to what comparable properties in the area are actually leasing for.
If the comps are showing $12, $13, $14 per square foot? It's probably a deal worth underwriting. If the comps are at $8 per square foot? Kill it and move on. Don't waste your time.
Now, this doesn't mean a deal that passes the napkin math is guaranteed to work. Underwriting gets nuanced when you start layering in financing, tenant improvements, vacancy assumptions, and buildout costs. But the napkin math tells you whether it's even worth opening the spreadsheet.
I always say, if you're going to invest in commercial real estate, you need to be able to look at a hundred deals and quickly narrow it down to the five or ten that are actually worth your time. The napkin math is how you do that.
Step 3: Finding Off-Market Deals Using Public Records
This is where it gets really fun. Most investors are only looking at what's listed on LoopNet, Crexi, or whatever their local MLS equivalent is. But the best deals? They're usually not listed anywhere. You have to go find them.
Here's exactly how I do it.
Every county has a GIS (Geographic Information System) or a property assessor's website where you can search commercial properties by specific criteria. In Nashville, I use the Davidson County assessor's site. You can filter by zip code, zoning type, lot size, building size, and more.
Let me walk you through a real example. Say I want to find commercial services properties in East Nashville. I go to the GIS system and filter by:
Zip codes: 37206 and 37207 (East Nashville)
Minimum lot size: 1 acre
Zoning: CS (Commercial Services)
When I run that search, I get 187 results. Now, 187 is still a lot, but think about what just happened. I went from every single property in Nashville to 187 that meet my exact criteria. And I guarantee most of these property owners have never been contacted by an investor.
From there, I'd narrow it down further. Maybe I only want properties that are owner-occupied, or properties where the owner has held them for more than 10 years. Every filter gets you closer to finding a motivated seller.
If your county doesn't have a GIS system you can access online, call your local tax assessor's office. Tell them what information you're looking for. They can usually pull the same data for you.
The Power of Direct Outreach
Once you have your list of properties, you reach out directly to the owners. A simple letter or phone call that says, "Hey, I'm an investor looking to buy commercial property in your area. Would you ever consider selling?" You'd be amazed how many people say yes when the timing is right.
This is how you find deals that nobody else is competing for. While everyone else is fighting over the same listed properties, you're creating your own deal flow.
Key Takeaways
Build a buy box. Get specific about what you're buying, where, and what your deal killers are. Write it down. Hand it to brokers. Update it as you learn.
Use the napkin math. Cap rate times price per square foot equals the rent you need. Compare to comps. If it doesn't work on a napkin, don't bother underwriting it.
Go find off-market deals. Use your county's GIS system or tax assessor data to identify properties that match your criteria. Contact owners directly. This is where the best deals live.
Be systematic, not emotional. The whole point of a deal filter system is that you're not bending your rules for every deal that crosses your desk. There are so many deals out there. You don't need to force one to work.
This article is based on a recent Office Hours episode on the Tyler Cauble YouTube channel. Want to learn how to find commercial real estate deals and build your investment portfolio? Book a call to learn about the CRE Accelerator, my step-by-step program for commercial real estate investors.