From Petroleum to Property Ft Andrew Schaper

SummaryAndrew Schaper started his career in the oil and gas industry as a petroleum engineer before transitioning into investment banking. In 2018, he started his own oil and gas consulting business. However, he became interested in commercial real estate, specifically boat and RV storage, and started a development project in 2020. The first phase of the project involved acquiring land, obtaining permits, and constructing the storage facility. Financing was a challenge, but they were able to secure construction loans from a bank. The project is being phased, with each phase being financed separately. Andrew spends more time on the real estate business now and sees it as a long-term investment strategy. In this conversation, Andrew Schaper and Tanner discuss financing options for real estate development projects. They explore the importance of having a sufficient spread between long-term financing costs and the desired yield on cost. They also discuss the challenges of using the Small Business Administration (SBA) for financing and the benefits of working with community banks. Andrew shares his approach to finding deals, conducting due diligence, and managing environmental risks. He emphasizes the need for an outside source of income to support the development business and discusses his plans for the future.Chapters00:00From Oil and Gas to Real Estate06:10Understanding the Oil and Gas Industry09:59Potential for Direct Oil and Gas Investments12:31Venturing into Boat and RV Storage22:03Phasing the Development and Financing25:28Stacking Construction Loans and Long-Term Strategy27:17Balancing Real Estate Development and Other Ventures28:12Financing Options and Building Relationships with Community Banks32:04Land Due Diligence and Dealing with Environmental Issues34:00The Importance of an Outside Source of Income for Development Projects36:11Supporting Investments Through the Full Cycle50:50Balancing Multiple Businesses: Oil and Gas Consulting and Commercial Real Estate