BIGGEST RISK with Rob Finlay

J Darrin Gross:

I'd like to ask you, Rob Finlay, what is the BIGGEST RISK?

 

Rob Finlay:

So not sure if there's one specific one and just so you know, hopefully, I I can give you one right now, that is top of mind for me, right? Because insurances. Property Insurance is property insurance that has been spoken about and and fortunately, we have people like you that help us, real estate owners get through that through that mess. The one thing that that property insurance people aren't going to help us with is what I see as this great risk is compliance and corporate risk. There is this thing out there for anybody who's in real estate, I want everybody who's in real estate, who are all your listeners to understand, if you have not heard of what this corporate Transparency Act, or CTA, whatever it's called, is right at CTA, look it up. But actually make sure it's corporate Transparency Act. The corporate Transparency Act is where anybody who's in commercial real estate, anybody who's in real estate, anybody who has an LLC, and it must file with the US Treasury, any type of beneficial ownership, any type of direct control any type of indirect, like, all these different requirements. And I think where most real estate people are, they're like, Okay, you know, my attorney will deal with this, or my accountant will deal with this, the accounts don't want to touch it, the attorneys will have to do an incredible amount of research to see. And then you have to track it and do all this stuff. If you don't, so right now, if you file an LLC, if you create an LLC, I think you have like 60 or 90 days to file. But in 2024, so this year, you must file this, this, this, this form with the Department of Treasury for all of your entities. And if you don't, it's a big one. These are like you're talking about, like, hundreds and 1000s of dollars of per day, fine. So what I would say is, for me, from a risk standpoint, is one, this is administrative and corporate risks. That typically will fall under the radar until probably December, probably last week in December, when I will now need to go get information and do all this work for all of my entities and try to load it up into some US Treasury database, right? So for me, like I'm gonna have to go sit there and put out by the systems are going to crash. It's like, it's like all of a sudden telling everybody, Hey, you have to file your taxes. But we're not doing it until the last possible second, and you don't know what you're not All right, you don't have none of the paperwork. So, to me, there are a lot of risks out there, right? You could go into data risk, you can go on, you know, all this other stuff. But quite frankly, this is risk that can be avoided, well, actually, I don't know, can you avoid you can't avoid it, because you have to do it. Right. You can minimize it by being proactive. And third, you could probably transfer it There are companies out there that that will handle it for you. So yeah, you can't avoid it. But you can minimize it by being proactive and looking at it now, not December 31.