BIGGEST RISK with Vince Gethings
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, Vince Gethings, what is the BIGGEST RISK? Vince Gethings What I've seen, it'd probably be over leverage. I know it's kind of the easy answer, but a lot of the issues that I've seen of people being forced their hand is forced to take action is because they're an over leveraged position and they don't have they don't have the working capital. They don't have the liquidity to kind of weather the storm. So they're being forced to take action where a lot of kind of more seasoned investors are sitting on their hands right now, and they...
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Delinquent Tax Investing with Brian Seidensticker - CRE PN #509
Commercial Real Estate Pro Network
Today, my guest is Brian Seidensticker. Brian Seidensticker, he founded , TSR in 2010 and in 2017 Brian partnered with software developer SDA solutions, a comprehensive workflow management system. And in 2020 Brian launched mount North Capital, a 506 C fund, providing capital to tax deed investors. And in just a minute, we're going to speak with Brian Seidensticker about Delinquent Tax Investing.
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BIGGEST RISK with Brian Seidensticker
Commercial Real Estate Pro Network
J Darrin Gross If you're willing, I'd like to ask you, Brian Seidensticker, what is the BIGGEST RISK? Brian Seidensticker I guess, you know, as far as buying tax deeds or the fund itself, it's for you to to, for me to interpret. Well, I think it's, it's from a tax, just tax sale properties, taxes and taxes in general, the biggest risk is the underlying property value, right? That That alone addresses the you know, is this, is this lien going to am I going to be able to make a return on this lien or this deed at the end of the day, or not? And that that is your number one risk?...
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Self-Directed IRA Note Investing with Eddie Speed - CRE PN #508
Commercial Real Estate Pro Network
Today, my guest is Eddie speed. Eddie speed is the founder of Note School, and in just a minute, we're going to speak with Eddie speed about opportunities in private, note investing.
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BIGGEST RISK with Eddie Speed
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you. Eddie Speed, what is the BIGGEST RISK? Eddie Speed Losing my money and losing my money means that I bought a note and I don't get enough recovery to go pay off my investment and still make a yield. So that could be that that could relate to non performing notes. Performing notes, it does everything down the line. It's like at the end of the day. That is why I like buying first mortgages with a cushion between what the collateral is worth and what I invested in the note. And that's the simplest form to say at the end of the day. That's my safety net,...
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Return to Office Trends on Hospitality with Sundip Patel - CRE PN #507
Commercial Real Estate Pro Network
Today, my guest is Sandeep. Patel Sundeep is the CEO and co founder of companies, an asset management and fintech firm that specializes in commercial real estate, private credit, lending and investing. And in just a minute, we're going to speak with Sundip about the impact of return to Office trends on the hospitality industry.
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BIGGEST RISK with Sundip Patel
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you Sundip Patel, what is the BIGGEST RISK? Sundip Patel That's a great question. Darrin, by the way, so the biggest risk that I foresee, and in our business, is the underestimating of the impact of AI and to our business and everything we do, from assessing risk, evaluating risk, to, you know, funding that risk, the entire process. So we as a company have taken some bold steps to get ahead, to understand how we can apply AI and what it will mean. As as you remember when we started the conversation, my mission was to create jobs and maintain jobs. I live...
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AI in Real Estate with David Blumenfeld - CRE PN #506
Commercial Real Estate Pro Network
Today, my guest is David Blumenfeld. David is the co founder of , a Silicon Valley based consultancy dedicated to assisting traditional physical businesses and leveraging digital technologies. And in just a minute, we're going to speak with David Blumenfeld about how AI is transforming real estate.
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BIGGEST RISK with David Blumenfeld
Commercial Real Estate Pro Network
J Darrin Gross I'd like to ask you. David Blumenfeld, what is the BIGGEST RISK? David Blumenfeld We're going to answer it a couple different ways, if that's okay. So I think I mean, and this, this first one might, might seem like a self serving answer, but I think the risk for real estate companies in general for not looking at technology. And again, it doesn't have to be the biggest, you know, the biggest, the newest, the the flashiest, but if you're not incorporating technology into your your your day to day operations, whether it be from a marketing perspective, a company, a...
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Real Estate Trends with Simon Isaacs - CRE PN #505
Commercial Real Estate Pro Network
Today, my guest is Simon Isaacs. In 2015 Simon moved his family from London to West Palm Beach, Florida, where he became more involved in the local real estate market after seeing an opportunity, and in just a minute, we're going to speak with Simon Isaacs about the real estate market trends.
info_outlineGene Trowbridge. What is the BIGGEST RISK?
Gene Trowbridge:
Okay, well, you talked about avoiding minimizing and transferring. Okay? So avoiding the risk. In my best legal language; Don't do this! That's how you avoid the risk of being a syndicator. Just don't do it. And what is the biggest risk, the biggest risk is really, the investors. Never the property properties will get empty and go into foreclosure and all that you can always deal with that. Excuse me, but you can't deal with the investor whose life changes in the middle of a project.
That's really the BIGGEST RISK.
So simply how to avoid the risk is to don't do it. Well, if you're going to do it, then the question is how do you minimize it? Okay, you might minimize it by the investors you choose. You could have a strategy of only dealing with accredited investors who are rich and smart, who have enough money where they can handle the risk of your investment. That might be a good one. Another way to minimize it is make sure your manager LLC is free form correctly so that people can't get at you. If there's trouble, and maybe two, this is kind of an asset protection answer. Maybe you want to be an LLC yourself, and then that LLC becomes the member of your manager LLC. So they really have to go through multiple loops.
Every once in a while, I think asset protection gets a little carried away, you can have two very too many of these LLCs and tax returns and all that stuff. But that's not uncommon for the manager to be an LLC and have the member of the manager be LLCs the one thing you don't want to be, is an individual manager. Yet 30 investors up there, and Gene Trowbridge is the individual manager. There's no protection for Gene Trowbridge from those 30 investors. I'm in the LLC with all the other investors are kind of protected from the outside world. But any investor can go after me for everything I have. So we want the manager to be have the layer of protection the LLC.
When I did it, it was a sub s corporation. Same protection, but today different issues that I was trying to deal with insurance and employees and all that stuff. But today almost everyone is ais aan LLC.
And then the last one How do you transfer the risk?
I don't know if you do.
I don't know if you do I think one thing I would say is the manager LLC is constructed in such a way that it has no assets. All you want you don't want your let's say there's a commercial real estate broker listen to us and he has an office with 20 salespeople and own some buildings. That's not going to be the managing member. We're going to form a brand new entity that's clean. And the only thing the managing member actually ever gets his some cash distribution for the fees and some stuff subordinated interest that might occur in the future. Okay?
So there's nothing in there. Okay? So don't syndicate.
Minimize your risk by having limited liability protection around you at least one or two layers. And then make sure that nothing in your syndication world, really at any time has any value. Now I do get I do get asked this question, should we buy directors insurance?