CRE Clarity
All successful commercial real estate investors have one thing in common, they make smart decisions quickly. In other words, they have clarity. This show is all about building that foundation for you. We ask the best investors in the business how they make decisions, how they manage risk, and how they've built their best systems and business plans. If you're a member of a GP team, CRE Clarity starts here.
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How to find your dream lender, with Vessi Kapoulian
05/07/2024
How to find your dream lender, with Vessi Kapoulian
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is Vessi Kapoulian, real estate investor and the founder of Dream Believe Achieve Capital Group. In our conversation, we dive into how to build solid relationships with lenders, Vessi’s top underwriting tips, and strategies for finding decent deals in today’s tough CRE market. Join us! Learn more about Vessi and her story at ! “Anytime I approach a new project or occupation, I always want to find purpose.” 01:00 Vessi started her career in commercial lending and transitioned to commercial real estate investing in 2017. She made the transition by educating herself and building connections in the industry. “Transparency and open communication are key.” 11:02 Vessi shares her insights on building strong relationships with lenders as an investor. Be transparent. The lender is trying to evaluate the risk profile, so share your and your partners’ track records. Be aware that some of the smaller lenders have lending limits that you might hit over time. Make sure that the lender is also open and honest with you. Vessi is very passionate about underwriting. She outlines her tried-and-tested underwriting tips to find decent deals in today’s tough CRE market. Partner with experienced operators with a good track record. Study your target market. Analyze 5 key deal aspects: Projected rent growth Volatile expenses Adequate reserves Downside protection Optimal debt structure “Stay true to yourself and your criteria. Maybe that means you're growing a little bit slower but I like to think slow and steady wins the race.” 33:14 Toward the end of the conversation, Vessi shares what she’s most excited about currently. She took on entrepreneurship because she’s looking forward to more time freedom and flexibility. Finally, Vessi shares one point of clarity with the listeners - be clear on your ultimate “why”! About our Guest, Vessi Kapoulian Vessi Kapoulian is the Founder of Dream Believe Achieve Capital Group, a real estate investment company based in Los Angeles, CA. Vessi helps busy professionals who are tired of working 60+ hours a week create passive income streams to reach their goal of leaving a legacy for their families, diversifying their investments from the stock market, and achieving tax efficiencies. Vessi’s professional background includes 15 years of commercial lending and 4 years of business management experience. Vessi started her real estate journey as an investor in 2017. Today Vessi manages a portfolio of investor real estate properties in Florida, Tennessee, and Georgia (415 doors, 12 properties, $44MM AUM). She is also passively invested in 5 other deals (405 doors in multifamily plus other CRE asset classes). Vessi’s mission is to help others attain their own financial freedom while at the same time providing a clean, safe, and pleasant home environment for residents and improving the local communities she invests in. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Vessi Kapoulian for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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Avoiding Large Project Pitfalls, with Scott Jolly
04/30/2024
Avoiding Large Project Pitfalls, with Scott Jolly
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Today, we deep into the world of high-level asset management with our guest, Scott Jolly, founder of Site Consulting Specialists. You'll learn Scott's 3-step renovation process, discover tips for finding top-notch contractors, and gain insights into extending the life of your properties through proper maintenance. Learn more about Scott and his story at ! “I've been in construction since I was about 12 years old.” 01:00 Scott's journey in construction began at a young age, starting at 12 through his grandfather's business. He took the entrepreneurial leap in 2008 by founding his first company, focusing on residential remodels and development. In 2010, he transitioned to working for a commercial paving and concrete company Scott started working in construction at age 12 through his grandfather’s business. He started his first company in 2008 focusing on residential remodels and development, then worked for a commercial paving and concrete company in 2010. Over the years, Scott has built an impressive portfolio. Currently, his company, Site Consulting Specialist is doing roofing and paving projects for larger apartment complexes. “We're always looking for companies that self-perform the work because we want to have a little bit tighter grip on what's happening” 05:30 According to Scott, most properties need significant renovations every 20-30 years. He shares his 3 step renovation process. Evaluation: Scott's company assesses the property's condition and understands the client's asset strategy to determine a budget. Procurement: Once they have a clear scope of work, they prepare bid packages and qualify contractors. Construction or Project Management: Finally, they create a detailed schedule and collaborate with tenants to minimize disruption during the renovation. “Curiosity is the single best tool anyone can have in the tool belt.” 30:45 Toward the end of the conversation, Scott shares what he’s most excited about in the construction industry currently. He's particularly enthusiastic about innovative new products hitting the market. For example, the private sector is seeing the introduction of reinforced asphalt in paving – a material that's both 100% recyclable and highly durable. However, Scott is concerned about the permitting processes that could add unnecessary costs and delays to construction projects. Finally, Scott shares one point of clarity with the listeners - be curious and don’t be afraid to ask questions! About our Guest, Scott Jolly Scott’s entire career has been in real estate and construction. As an investor, he understands the impact capital expenditures can have on ROI. SCS was a brainchild of combining his real estate experience with his concrete and paving experience to create massive savings for large portfolio owners. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Scott Jolly for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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The Art of Building Your Network, with Micah Walje
04/23/2024
The Art of Building Your Network, with Micah Walje
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is Micah Walje, a project developer, with more than 20 years of construction experience. In our conversation, we'll explore the best ways to resolve weather damage in your properties, how to find the right contractors for your deals, and why networking is key to building a successful business. Learn more about Micah and his story at ! “The only way I would hire an out-of-town person to do my claim or repair is if they were working in conjunction or partnership with a local contractor.“ 03:28 Micah has more than 20 years of construction experience. At the beginning of the conversation, he shares his best piece of advice on how to get weather damage resolved correctly. Don't start any work until everyone agrees! This means getting written estimates from both your contractor and your insurance company. These estimates should detail the scope of work, dollar value, and what will be covered by insurance. Hire local contractors to ensure that the work is done on time and that you can follow up with them later if needed. “If you don't have a good reputation for paying your trades or your subcontractors, that says a lot about all the other operational components of your business.” 09:30 Micah started his career in residential construction, then he shifted toward tenant improvement work, construction, defect repair, CapEx, and deferred maintenance. Micah shares the key elements property owners and developers should consider when hiring contractors. Their financial capability and bonding stability. Their transparency in the estimating process. If they had previous legal issues and how they got resolved. Micah’s advice for a successful development project is to always work with a team with experience in the building type you’re developing. “You can have everything in life you want if you will just help other people get what they want.” 22:00 Micah is an excellent networker. He enjoys listening to people and connect them. He explains why building trust is crucial in business. People won’t hire you for a bigger project unless they know, like, and trust you, and understand your process. Toward the end of the conversation, Micah shares what he’s most excited about in his business currently. He’s eager to scale and expand his company to new markets. However, he's also keeping an eye on the housing shortage and multifamily mortgage situation. Finally, Micah shares one point of clarity with the listeners - practice servant leadership; put others before yourself and go out of your way to help somebody anytime you can, without an expectation of return. About our Guest, Micah Walje Micah Walje is the project development manager for Ronco Construction headquartered in Omaha, Neb. Based out of the Kansas City, Mo. office, Walje focuses on business development, assisting preconstruction and project management for opportunities in the Kansas City metro market. Walje has more than 20 years of construction experience, with expertise in managing projects, leading business development efforts, and ensuring customer satisfaction through superior service and communication. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Micah Walje for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – Show produced by
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Circling The Wagons, with Tammy Sutton
04/16/2024
Circling The Wagons, with Tammy Sutton
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is Tammy Sutton, a managing partner of Quattro Capital. In this episode, we discuss navigating the current multifamily market, building high-performing GP teams, and the surprising power of philanthropy in real estate. You don’t want to miss out on this conversation! Learn more about Tammy and her story at ! “It's really easy to drop balls if you don't have all the hats in place in your business.” 01:01 Growing up in a second-generation real estate family, Tammy was exposed to the world of single-family investing from a young age. However, she worked as a teacher until 2019 when her career path took a turn. She transitioned into the family business, taking over the single-family operations from her sister. In 2020, Tammy made another exciting move, venturing into multifamily investing. This led to her becoming the managing partner at Quattro Capital. She explains that the company is thriving because of the strong team they built and how this resulted in managing an impressive nearly $200M portfolio. “One of the hardest things when you are getting started is raising that capital,” 12:30 Tammy shares her insight on how to get into the commercial real estate world without capital. Quattro Capital collaborates with aspiring investors who have a good deal but don’t have the right team yet. Finding a good deal is often the best way to break into the industry and build your knowledge base. According to Tammy, the multifamily industry experienced a period of significant growth between 2020 and 2022. However, in 2024, the focus has shifted towards protecting assets and the investors’ money. She shares how rising insurance costs and renovation expenses are impacting business plans. Despite the challenges, she has optimism for the future. “The philanthropy side of Quattro Capital is truly what motivates us to keep doing well.” 24:35 Tammy is a philanthropist. Her company established the Quattro Giving Fund which supports causes like veteran housing, human trafficking initiatives, foster care programs, and shelter and housing solutions. They are working with different organizations through donations from their investors. Toward the end of the conversation, Tammy shares what she’s most excited about in the industry currently. She anticipates a return to normalcy with interest rates, which will create more opportunities in real estate investing. Finally, Tammy shares one point of clarity with the listeners - Real estate's a long game. Quit worrying about the right now. Navigate through the waters, there is a horizon out there and that's your end game. About our Guest, Tammy Sutton Tammy Sutton serves as a Managing Partner at Quattro Capital, overseeing Transitions and Operations. Renowned for her organized, positive, and responsive nature, Tammy navigates the diverse personalities within operations with an adept and authentic touch. Her exceptional multitasking skills and creative vision contribute significantly to Quattro Capital's marketing needs. Moreover, Tammy's passion for multifamily investing and commitment to improving living environments for families and communities seamlessly align with Quattro's ethos. Her unparalleled mastery of operations truly embodies the essence of a master conductor, which has earned her the nickname 'The Maestro'. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Tammy Sutton for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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7 Steps of A Development Deal, with Alex Sanders
04/09/2024
7 Steps of A Development Deal, with Alex Sanders
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is developer extraordinaire, Alex Sanders. This conversation dives deep into the 7 essential steps of CRE development, guiding you through each stage from finding the perfect location to exiting the project successfully. Whether you're a seasoned investor or just starting out, this episode is packed with valuable insights to help you navigate the world of CRE development! Learn more about Alex and his story at ! “Being a mentor doesn't mean that they're geniuses or professionals in their fields. The big part is that they can help you to build up your confidence.” 01:00 Alex’s parents were residential real estate agents, but he knew from an early age that he wanted to do something different. He started his career as a CRE broker and eventually chose development as his career. According to Alex, the biggest help in his career were his mentors and he recommends working with one to everyone. “Always be open to learning. Listen to everybody, but choose what advice you actually want to implement.” 09:00 Alex dives into the 7 key steps of CRE development and how to do them right. Site search. The first step is crucial – identifying the right asset class for the specific site. This is a great starting point for new developers, as it sets the stage for the entire project. Entitlement. The key to overcoming common zoning hurdles is thorough research and building strong relationships with local authorities. Designing. Work with local architects and design teams as they have market knowledge and local connections. Financing. Align yourself with an equity partner who shares your vision for the project. Final approvals. This stage involves securing site plan approvals, project approvals, and permit approvals from the city. Construction. Ensure everything runs smoothly by working closely with the construction team and clearly outlining the project timeline in the contract. Having a solid insurance plan helps mitigate unexpected delays. Exit. Many options exist for exiting the deal, including presales, waiting a few years for the property to stabilize, or long-term hold. They are increasingly more risky. “Good developers are able to be a visionary, be persistent, and know the market.” 37:45 Toward the end of the conversation, Alex shares what he’s most excited about in the CRE world right now. He’s looking forward to the future of the Nashville market and highlights its stability due to steady population growth. However, he is concerned that deals might get harder to do requiring greater creativity from investors. Finally, Alex shares one point of clarity with the listeners - If development is something that you feel passionate about then surround yourself with a good team that can help you succeed. About our Guest, Alex Sanders As a Development Executive at Mortenson, Alex Sanders leverages his extensive knowledge and experience in real estate, investment, and development to create exceptional projects that embody financial prudence, long-term sustainability, and an enhanced quality of life for individuals. He has been involved in the development and sale of real estate across various sectors and markets, including life science, healthcare, industrial, manufacturing, multi-family, student housing, hospitality, sports-anchored mixed-use developments, and developer-led public-private partnerships. His ultimate goal is to drive transformative change within communities by spearheading initiatives that foster lasting positive impacts. Alex is dedicated to delivering exceptional customer experiences and generating innovative solutions that positively shape neighborhoods and communities. He brings expertise, leadership, and collaboration to the table, ensuring that each project demonstrates financial responsibility, long-lasting durability, and adds significant value to the lives of people. He is proud to be part of Mortenson, a top-20 builder, developer, and provider of energy and engineering services that is committed to helping organizations move their strategies forward. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Alex Sanders for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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How to Jump From Value Add to Development, with Venkat Avasarala
04/02/2024
How to Jump From Value Add to Development, with Venkat Avasarala
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is Venkat Avasarala value-add multifamily investor turned CRE developer. In our conversation, we delve into why development is the current hot spot in REI, explore what to look out for when investing in multifamily, and discuss the importance of monitoring the money supply. Learn more about Venkat and his story at ! “The one thing every investor should know is to watch the money supply.” 01:18 Venkat began his professional journey in the finance world in 2002. However, his interest shifted towards real estate, leading him to purchase his first 20-unit rental property in Dallas back in 2016. In 2018, he was able to leave his corporate job and pursue real estate investing full-time. His background in finance has helped him to become a developer for large properties valued at over $400 million. Venkat talks about the importance of monitoring the money supply. He explains that fluctuations in the money supply can influence buying patterns and available resources in the market. He points out the impact of money printing post-pandemic, and how inflation has risen faster than wage growth, putting a strain on affordability. “Pay attention to who you are serving. If you don’t understand your tenant, you cannot be successful.” 10:45 Venkat started investing in value-add multifamily properties in 2016, However, he transitioned to development in 2021 after exiting the multifamily market altogether. According to him, the landscape had shifted, making success more challenging. Despite his shift in focus, Venkat shares his insights on still finding success in real estate. Learn about historical trends to anticipate future market changes. Understand your tenant. Pay close attention to your tenants' spending habits and lifestyle preferences to be able to make informed rent projections for the coming years. Find your niche. Identifying a niche market allows you to cater to a specific tenant demographic. “You don't need to know everything. You just need to find people who know what you are missing and who are good at it.” 24:13 Venkat shares his advice on how to get into the development space. Build your network. Connect with experienced and successful developers and bring them onto your team to leverage their expertise. Learn to manage the risk. Always raise money conservatively and have solid underwriting. Toward the end of the conversation, Venkat shares what he’s most excited about in the CRE world right now. He anticipates a decrease in construction costs within the coming years in the Sunbelt states. Finally, Venkat shares one point of clarity with the listeners. Always watch the money supply! About our Guest, Venkat Avasarala After witnessing fellow employees’ deep despair caused by mass layoffs at “dependable” corporations, Venkat promised himself he’d never be fully dependent upon a W2 again. It’s easy for hard-working, intelligent people to accidentally become reliant on their paycheck and miss opportunities to protect and grow their wealth. That’s why Venkat loves sharing about multifamily real estate investments. Since he discovered the lucrative power of commercial real estate, Venkat has become passionate about spreading the word, so others too can protect their hard-earned savings and take action toward building sustainable wealth. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Venkat Avasarala for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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Right People Right Seats, with Joseph Cornwell
03/26/2024
Right People Right Seats, with Joseph Cornwell
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest today is Joseph Cornwell, multifamily investor and the host of the Best Ever Podcast. In our conversation, we talk about Joseph's transition from law enforcement to real estate investing, strategies for scaling a multifamily business, and tips for finding the right people for your business and stepping into a leadership role. Don’t miss this episode! Learn more about Joseph and his story at ! “Real estate at the end of the day is a people business. If you understand the people part, you can have success in any area of real estate.” 01:00 Joseph started his career as a police officer in Cincinnati. After working 5 years, he realized that he wanted something different in life and found his passion in real estate investing. His law enforcement background equipped him with many interpersonal skills, such as conflict resolution and understanding people's motivations, which have been useful in the real estate field. As his real estate business grew, Joseph recognized the need to build and manage a team. He focused on creating strong and scalable systems, so his employees always have clear instructions and understand their roles. “You're never going to find someone who cares about your business as much as you do. And if you do, that's a problem, because it's your business.” 17:30 Joseph shares the key steps for transitioning from working in your business to managing it: Define your goals: Identify what truly fulfills you. Do you want to be personally involved in daily tasks, or scale your business? Find a scaling strategy: Discover alternative ways to add value to your company while delegating operational tasks. Find the right people and trust them with the right responsibilities. It’s a number’s game, so you will have to hire and fire people before you find the right ones for your goals. Build your team: Find the right people and trust them with the right responsibilities. Be prepared to hire and fire people often before you find the right ones for your goals. “The Midwest is a “get rich slow” type of investment, and I think that's a lot safer and reliable.” 24:23 Toward the end of the conversation, Joseph shares what he’s most excited about in the CRE world right now. He sees a revitalization in the Midwest markets as many millennials move to the suburbs. It’s a stable and growing market without significant ebbs and flows and rents are steadily increasing. Finally, Joseph shares one point of clarity with the listeners. You have to be consistent in everything you're doing. Once you have some foundation, don’t be afraid to expand markets, locations, and asset types. About our Guest, Joseph Cornwell Joseph Cornwell has lived near Cincinnati, Ohio his entire life. He is a host on the BEST EVER CRE podcast and is actively seeking to acquire single and multi-family rental properties. As a real estate agent, he works with investor clients and also owns and operates a general contracting company in Cincinnati, Ohio, specializing in large renovation projects for other investors. Joseph has successfully flipped one home and currently owns 125 units across 15 properties. He possesses extensive experience in buy-and-hold real estate, creative financing, and has executed deals ranging from 1 to 99 units. Holding a license as a Real Estate Agent in Ohio, he has facilitated numerous commercial and residential transactions for clients, overseeing the purchase and sale of hundreds of investment properties over the past 7 years. Additionally, Joseph has managed millions of dollars' worth of large renovation projects, both within his own portfolio and for other clients. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Joseph Cornwell for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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How to Buy Industrial CRE, with Tom McCrossin
03/19/2024
How to Buy Industrial CRE, with Tom McCrossin
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Joining us today is Tom McCrossin, an industrial and warehouse investor and owner of New Lane Management. We'll be diving into the world of industrial investing, discussing how to get started, finding the perfect property, and why it's a hot market in 2024. Learn more about Tom and his story at ! “A lot of people think that all big buildings are manufacturing, but that’s not necessarily true.” 01:00 Tom started his investing journey in 2010 by househacking. He rented out half of his duplex. By 2020, he saw new potential and transitioned to acquiring industrial buildings and warehouses. The industrial real estate asset class covers a diverse range of properties, each with its own purpose. Warehouses and distribution buildings: Logistics hubs storing goods before export or distribution. Manufacturing buildings: These are where industrial work and manufacturing take place. Flex spaces: The perfect blend, offering smaller warehouse spaces with integrated office areas for increased functionality. Industrial buildings typically stand tall, with ceilings ranging from 15-17 feet, reaching up to 35 feet! “In multifamily, you look at the dollar amount per door. In industrial we look at square footage.” 10:22 Tom built a strong relationship with commercial brokers who are helping him find the right building and suitable tenants. Tom shares his preference for industrial investing over multifamily. He enjoys collaborating with like-minded business owners, fostering a sense of shared purpose. The tenants handle maintenance, simplifying the operation for him. He sees a rising trend of manufacturers relocating to the Midwest, creating new investment opportunities. “As you go into these bigger deals, you got to have multiple ways that you want to get out if it starts to go South.” 20:23 Tom calls himself the “Junior Warehouse Flipper”. He shares a risky deal that netted him a 185% return in just 7 months. Tom’s recommendation for new industrial investors is to partner with someone who’s already successfully done a deal. It’s also important to familiarize yourself with the lease language as it’s very different from residential real estate. Towards the end of the conversation, Tom shares what he’s most excited about in the CRE world right now. While he anticipates a stabilizing CRE market in 2024, he expresses concerns about potential shifts in the manufacturing landscape and their impact on tenant revenue generation. Finally, Tom shares one point of clarity with the listeners. Focus on maintaining a positive mindset and keep open communication with your tenants. This way you can plan ahead and make the most out of your investments! About our Guest, Tom McCrossin For Tom McCrossin, it all started in 2006 at the age of 19 when he purchased a condominium. With the opportunity to join the condo association’s board of directors, Tom learned about large-scale property management. His professional background includes serving as a property manager as well as managing the restoration of fire/water-damaged buildings. Tom has extensive experience rebuilding homes and renovating buildings, which started in 2010 by buying duplexes with his wife. The first industrial warehouse acquisition in 2019 inspired the business to buy vacant buildings with tenants in place to lease space once the property is acquired. In 2020 he added a duplex and a single-family home to the portfolio, while 2021 brought the addition of 100,000 square feet of industrial warehouses, along with a duplex and a whole home revitalization in Milwaukee. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Tom McCrossin for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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The Four Key Members of Your GP Team, with Matt Faircloth
03/12/2024
The Four Key Members of Your GP Team, with Matt Faircloth
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. Our guest is Matt Faircloth, a real estate investor and best-selling BiggerPockets author. Today, we dive deep into the key members of a successful multifamily team, how to scale up from single-family to commercial properties, and how the industry will change in the foreseeable future. You don’t want to miss out on this conversation! Learn more about Matt and his story at ! “What smaller real estate can teach you so you can graduate up into bigger real estate is tenant relations.” 01:00 Matt is managing thousands of multifamily real estate units. At the beginning of our conversation, he shares his insights about the differences between residential and commercial real estate investing. While larger apartment complexes of 50-100 units offer more diverse income streams, the fundamentals remain consistent. Matt shares some value add strategies like pet fees, laundry machines, or even trash valet. He also recommends renter’s insurance as a value add, as it is beneficial for both the owner and the tenant. “The four seats in the GP are the Hunter, the Brain, the Money, and the Hammer.” 12:08 Matt delves into the critical roles within a GP team, emphasizing the importance of recognizing each member's unique talents. He identifies 4 key personality types, each suited to a specific role: The Hunter: These types of people are good at acquisition. They are adept connectors, closers, and negotiators. The Brain: They excel at analyzing deals and running the numbers, making them suitable for the underwriter role. The Money: They are more extroverted and good at sales, so they should assemble the debt and raise capital. The Hammer: This type of personality is great at multitasking and project management. They should be asset managers as they are highly driven to implement and fulfill the business plan. “I think now investors want stability, some cash flow, and to get through the next couple of years while rates are really high.” 27:25 Towards the end of the episode, Matt discusses how to raise money successfully in today’s market and how to build good relationships with investors. In recent years, the focus has shifted towards cash-flowing deals, reflecting LP investors' preference for short-term gains. At the end of the conversation, Matt shares what he’s most excited about in the CRE world right now. He looks forward to the impending change in the industry. There will be a repositioning in America’s real estate, creating many opportunities for creative real estate investors. The innovation will also change many of the asset classes we’re familiar with now. However, Matt expresses concern that the current polarization in politics may destabilize the country. Finally, Matt shares one point of clarity with the listeners. “See the opportunities, hop in, and you'll figure it out.” About our Guest, Matt Faircloth Matt Faircloth has been a full-time investor since 2005. In that time, he has successfully completed projects involving dozens of fix and flips, office buildings, single-family homes, and apartment buildings. He commands thousands of multifamily units in partnership with millions in passive investor equity, earning him recognition as a trusted authority, regular contributor and podcast guest on BiggerPockets®. With an active YouTube channel dedicated to educating investors and a bestselling book, "Raising Private Capital: How to Build Your Real Estate Empire with Other People's Money," Matt offers invaluable insights and strategies to elevate your real estate journey. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Matt Faircloth for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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Multifamily & Hospitality - Experience Marketing, with John Casmon
03/05/2024
Multifamily & Hospitality - Experience Marketing, with John Casmon
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. We have a returning guest today, John Casmon, multifamily syndicator, podcast host, and marketing expert. In our conversation, we talk about the best multifamily markets, how to align your team with your goals, and how to minimize your tenant turnover with event marketing. Join us and get inspired! Learn more about John and his story at ! “The reason the Midwest is so appealing to me is because it's very stable. It doesn't get too high up when things are great, but it also doesn't get too low at bad times.“ 01:00 In the last decade, John has almost exclusively focused on multifamily investments in the stable Midwest markets, particularly cities like Columbus, Cincinnati, Louisville, and Indianapolis. He emphasizes the importance of evaluating market fundamentals and considering factors like population growth, job market strength, and rental market trends before making investment decisions. John explains that in 2023 the most amount of new units come to the market in the last 36 years and 2024 is expected to surpass that number. This trend forces rents to compress. “With my team, we're all aligned with our goals. They're clear on what success means to me, and our strategies and goals are based on that.” 08:42 John loves multifamily but he’s looking into different asset classes as well, like boutique hotels or residential assisted living. His goal is to create memorable experiences for his tenants by focusing on community and organizing community events. This mentality stems from John’s event marketing background and is leading to remarkably low tenant turnover. John is very clear on what success means to him, and his team has to be aligned in their goals. He primarily focuses on the NOI, and the compensations are tied to that as well. “I'm excited about the overall market dynamics because it's a great time to grow.” 30:48 Towards the end of the conversation, John shares what he’s looking forward to in 2024. He’s excited about new opportunities. In the last couple of years, it was challenging to come across good deals, but he sees 2024 as a year of opportunity, noting that investors are returning to fundamentals, making it easier to identify cash-flowing deals. Finally, John shares one point of clarity with the listeners. Understanding goals and visions is key to clarity and success. Make sure your investing strategy aligns with your actual goal. That's going to help you get the most clarity. About our Guest, John Casmon John Casmon is a real estate entrepreneur, who has partnered with busy professionals to invest in over $100 million worth of apartments. John also consults active multifamily investors to help them start or grow their business. He hosts the Multifamily Insights podcast (formerly Target Market Insights) and is the co-creator of the Midwest Real Estate Networking Summit. Prior to becoming a full-time investor, John worked in corporate America, overseeing marketing campaigns for General Motors, Nike and Coors Light. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to John Casmon for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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Financing NNN Deals, with Miguel Jauregui
03/05/2024
Financing NNN Deals, with Miguel Jauregui
Welcome to the CRE Clarity Podcast with Jeremy Goodrich. In this episode, we delve into the net lease investment space with expert guest Miguel Jauregui. From mastering tenant selection to navigating the current lending landscape, Miguel shares valuable insights you don’t want to miss out on. Learn more about Miguel and his story at ! “Some of those Amazon-proof businesses are where people want to be today.” 01:04 Miguel is specialized in the net lease asset class. He’s drawn to this asset class because of its lower management responsibilities and long-term stability. Miguel explains some hurdles new investors should understand about the net lease investment space. Understand the lease and the tenant. Choose tenants with a strong credit profile and high FICO score. Be prepared for a potential vacancy if you’re investing in a single-tenant property. “The state matters. The city matters. It's something that you have to consistently consider because you're gonna see different cap rates in different places.” 11:34 Miguel is a debt expert. He shares his best advice on putting together the best debt stack for a property. Location matters. Don't solely base your decision on the tenant. Always run your deals through a financing professional, especially in today's volatile lending market. Build a strong profile and have a well-organized PFS. “The bank is in the business of doing loans, not declining loans. They need to do loans, so be transparent with them.” 21:45 Toward the end of the episode, Miguel talks about how to navigate the lending process. The key is to be transparent with the lenders. Hiding any issues can ruin your long-term relationship with them. There are still a lot of opportunities in today’s market. View high interest rates or potential vacancies as opportunities to find value and negotiate favorable terms. Miguel thinks that the market may be near its bottom. He anticipates market stabilization and potential improvement as interest rates decrease. About our guest, Miguel Jauregui Miguel has over ten years of real estate experience, developing his career from an analyst to his current role leading the capital markets team. Before joining SAB Capital, Miguel worked as a CRE Relationship Manager for Wells Fargo, as a Director of Investment Sales for Besen Partners, and was the NYC Co-Lead for Greysteel. In these roles, Miguel worked in multiple areas of the industry where he monitored over $170 million of real estate assets, brokered over $200 million of deals throughout New York City, and created relationships with capital market partners to support and educate his investor clients properly. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Miguel Jauregui for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to CRE Clarity on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – –
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Always Underwrite to an 8 CAP, with Shannon Robnett
04/25/2023
Always Underwrite to an 8 CAP, with Shannon Robnett
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest is Shannon Robnett, a real estate developer and syndicator with over 35 years of experience. Shannon shares his advice on becoming a successful syndicator, selecting top-notch service providers, and managing risk in the current market. You don't want to miss out on this episode! Learn more about Shannon and his story at ! “I don't like paying taxes. I'm very patriotic, but to me, that's not a patriotic duty.“ 01:13 Shannon is a fourth-generation realtor. For a while, he didn’t want to work in real estate, however, after completing college, he recognized the immense financial potential within the industry. Over the course of his 35-year career, Shannon has taken on various roles, including overseeing construction projects, working as a developer and multifamily asset manager, and investing in many deals. He started syndicating in the last few years. “The first thing that I try and do when I talk with an investor is make sure that they understand who they are.” 06:23 Shannon shares his best pieces of advice on how to become a successful syndicator. Find a mentor and work up to your goals slowly but steadily. Understand what kind of investor you are, how high your risk tolerance is, and what type of deals fit your lifestyle. If you've lost money, figure out why, and don't do that again. “When you're underwriting correctly, if everybody's doing it, it’s probably a really good time to not be doing it.” 20:40 Shannon shares his insights on selecting top-notch service providers while minimizing associated risks within your team. His advice is to prioritize expertise and experience over cost. Also, always think at a higher level about your business and look for the most dedicated service providers with good track records. Towards the end of the episode, Shannon shares his risk mitigation strategies in the current market. He’s always managed risk from an 8-cap standpoint. If he can’t get an 8-cap on the investment, he won't pursue it. He’s emphasizing not being influenced by the market and having a solid underwriting strategy. About our guest, Shannon Robnett Shannon is a Real Estate Developer and Syndicator with a principal focus on Multifamily and Industrial real estate in the greater Boise area. His accomplishments include: Involved in Boise Real Estate Market for 35+ years 2nd Generation Builder & Developer 4th Generation Realtor Involved in over $250MM in construction projects ranging from multi-family, office buildings, and municipal buildings to schools, industrial projects, and mini storage A history of over $140MM in successful developments Has under management over $100MM with a wide range of investors Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Shannon Robnett for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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How Integrity Led Jaques Bazinet to Over 7500 Units Managed
04/11/2023
How Integrity Led Jaques Bazinet to Over 7500 Units Managed
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Jacques Bazinet, a mammoth in the CRE world, with over 7500 units under his management. Listen in as we delve into the topic of manifesting who you want to be in your career, understanding the significance of your team as your key asset in the real estate business, and navigating the current multifamily downturn by identifying lucrative investment markets. This episode is a must-listen! Learn more about Jacques and his story at ! “Mental creation precedes physical creation.” 02:09 Jacques started his career in the training and development field alongside Stephen Covey. However, his passion for commercial real estate eventually led him to pursue it full-time, and now he is the COO of Tallos Holdings. He talks about Stephen Covey’s famous book, The Seven Habits of Highly Effective People, and highlights the most important lessons from it. Have a clear framework for what you want to achieve mentally. Begin with the end in mind. Have high level of integrity with yourself before extending that same level of integrity to others. Before beginning to manifest your desires, figure out who you want to be and what you stand for in life. “Organizations are perfectly aligned to get the result they're getting.” 08:37 Jacques talks about the 50% rule. According to this rule, 50% of the information you hear in your industry is false. His advice is to prioritize your integrity and truth-seeking abilities to discern the factual information from the misinformation. Drawing from this principle, Jacques shares valuable advice on collecting accurate information and managing real estate risks effectively. Work with people who have more experience than you. This gives you the flexibility to do a lot more. Start creating a reality where you're seeking answers from others, welcoming their answers, and trying them out. Be curious and willing to learn. “I think a life of integrity is like several lives of moving forward without integrity.” 19:35 Jacques offers insights on managing risks in large multifamily projects. He emphasizes that being trustworthy attracts trustworthiness, and investors seeking to build relationships with developers, engineers, or other project-related people should prioritize building trust through their actions. Towards the end of the episode, Jacques talks about the growing inventory and decreasing occupancy in multifamily from a builder’s perspective. He shares his best pieces of advice to find the right market. Build in the top five cities and in the number one sub-market within those top five cities. Build a class A product that is affordable. Choose an area where there might be oversupply in the general market, but not within the sub-market that you're in. Jacques’ prediction is that the general market will be much more stable in the next 2 years. About our guest, Jacques Bazinet Jacques Bazinet serves as Chief Operations Officer of Talos Holdings. With over 30 years of experience in operations and 25 years of experience in human performance, Jacques brings a unique perspective and ability to assist Talos Holdings in achieving its overall corporate vision. With executive and director roles at companies like Franklin Covey and InsideOut Development, Jacques has been instrumental in helping 10x revenues while also providing consulting, strategy, and a clear vision for 98 Fortune 1000 companies. In addition to assisting businesses to thrive, Jacques has a personal goal to create environments that foster personal and professional growth for residents of Talos Holdings' developments, yielding maximum, consistent returns for investors. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Jacques Bazinet for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Suburban Office & Specialty Storage, with Stewart Heath
03/14/2023
Suburban Office & Specialty Storage, with Stewart Heath
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Join us in this episode as we chat with Stewart Heath, the CEO of Harvard Grace Capital and a seasoned commercial investor. Discover valuable insights on investing in customer-facing offices, creating an effective proforma, and managing risks through property management. Learn more about Stewart and his story at ! “We have a hard line that we're going to maintain 6 months of reserves in our syndications.” 01:46 Stewart initially ran his own CPA practice and witnessed the success of his real estate clients. Inspired, he started investing in duplexes and condos too, and eventually had almost 200 residential properties in his portfolio. Unfortunately, during the 2007-08 financial crisis, he lost a large portion of his portfolio. When Stewart started over, he decided to invest in retail properties instead of residential ones. His advice for anyone starting a business is to include six months' worth of operating expenses as reserves in their business plan. This way, even if the business experiences high vacancies or low profits, it can still survive for a year. “We do the property management ourselves. It is the only way that I can guarantee that I'm delivering on the proforma as much as possible.” 09:56 Stewart mainly invests in Alabama and Tennessee. He prefers investing in stabilized properties and avoids multifamily investments. His preferred asset class is customer-facing suburban offices. To manage real estate risk, Stewart emphasizes the importance of property management. The tenant selection process is a crucial factor that can make or break a property's success. Aside from his primary investments, Stewart also invests in self-storage, which is a profitable asset class and has a strong correlation with multifamily. About our guest, Stewart Heath Heath sits on several boards, including HGC, Winsome Truth, The Shepherd’s Call, and Second Chance Sober Living. In 2016, Heath was recognized as a finalist for the Nashville Business Journal’s CFO Awards. Currently, Heath holds several fractional CFO positions. Heath previously held positions as COO and CFO for companies in retail, real estate, manufacturing, corporate services, entertainment, and digital media. He earned his CPA license in 1987 and has since held several senior financial and operating positions. Heath also holds a B.S. in Business Administration from Auburn University. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Stewart Heath for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Streamlined Systems, with Tommy Brant
03/08/2023
Streamlined Systems, with Tommy Brant
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Tommy Brant - a once electrical engineer, now a dedicated full-time real estate investor. Join us in this episode as we delve into the art of building a solid syndication team, uncovering potential pitfalls in multifamily deals, and the importance of establishing reliable structures and processes in your real estate business. You don’t want to miss out on this episode Learn more about Tommy and his story at ! “We're in a business where we can't be buying with emotion when it comes to other people's money so if I can't buy with the spreadsheet, then I'm not going to buy.” 01:53 Tommy began his professional journey as an electrical engineer, dedicating 12 years to this field before moving on to real estate investing. His experience as an engineer taught him the importance of paying close attention to details and establishing effective systems. Initially, Tommy focused on investing in single-family homes. In 2021, he made the switch to becoming a full-time real estate investor. Currently, his main focus is on multifamily syndication. “If it's not a “hell yes” for our investors, then it's a “hell no” 09:15 Tommy shares a deal that appeared promising but ultimately did not pan out. Despite finding a property with potential and assembling a strong team, they soon discovered fraudulent activity committed by the property manager. As a result, the contract was canceled and legal action against the manager was recommended. From this experience, Tommy learned valuable lessons about the importance of risk management for asset managers. He advises implementing weekly property management calls, closely monitoring financials for inaccuracies, and avoiding entrusting financial responsibilities to a single individual. Despite this setback, Tommy persevered and successfully syndicated a 49-unit property in Louisville in 2022, which proved to be a profitable venture. “Every deal is different, every structure is different, and every type of investor is different, so you've got to classify things appropriately.” 21:39 At the end of the conversation, Tommy delves into the topic of syndication structuring, which is divided into three key domains: acquisition, investor management, and asset management. Tommy is known for his meticulous approach to process management, having invested significant time and effort in developing detailed checklists for each of the three domains. He emphasizes the importance of building an experienced team and participating in masterminds to gain valuable insights and experience. When it comes to market predictions for the next couple of years, Tommy believes that we will be experiencing an elevated inflationary environment, which could manifest in the form of supply and inventory fluctuations. About our guest, Tommy Brant Tommy Brant is a ‘recovering‘ electrical engineer and data scientist turned full time Real Estate Investor. Based in Nashville, TN. He started TB Capital Group as a tool to buy real estate with family, friends, and partners. He helps busy professionals accelerate their wealth through passively investing in real estate. His goal is to help others achieve ULTIMATE freedom (which can’t be done without being financially free) Portfolio of LTR, STR, and apartments - invested in 400+ units, totaling $36M in assets. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Tommy Brant for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Brilliance in the Basics, with John Ballenger
02/28/2023
Brilliance in the Basics, with John Ballenger
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. You're in for a treat today as we have a remarkable guest, John Ballenger, joining us. John is not just a CRE developer but also a former Marine Corps member who served as one of the select seven individuals responsible for flying Presidents around the country. In this episode, John shares his insights on his 20-year journey in the Marine Corps and the concept of "brilliance in the basics" that he's applied in his real estate career. He also dives into the secrets of building a high-performing real estate team that can make all the difference in your success. Learn more about John and his story at ! “How you do the small things will eventually compound and that's what will get you to the goals that you set down the road.” 02:18 John's journey began two decades ago when he joined the Marine Corps. Over the course of his career, he rose through the ranks to become one of just seven elite individuals entrusted with the monumental responsibility of flying Presidents. John's outstanding success can be attributed to his commitment to a powerful concept called "brilliance in the basics." It’s a theory that by doing something down to the smallest action you get good at it. Following his retirement from the Marine Corps, John pivoted to the real estate industry and established himself as a CRE developer and coach. His team operates in multiple states, including Colorado, Oklahoma, and Pennsylvania. “I had been around highly effective teams long enough to know that it's better to form a team of individuals that are proficient in a few things, then find people that are okay at a lot of things.” 09:33 John shares insights on managing risk from his military and real estate experience, emphasizing the importance of mitigating risk to an acceptable level. He advises focusing on the small things that can be controlled and ensuring they are done well to make risk manageable. Around 5 years ago, John became a passive investor in syndications and recognized the value of collaborative teamwork towards achieving ambitious goals. Inspired, he partnered with an investor in Pennsylvania and learned real estate development. “One thing I learned in marine aviation is the OODA loopthe idea of constantly adapting and modifying your actions based on how others respond or the situation unfolds, and reengaging with a different strategy.” 22:25 John shares his best piece of advice on how to find the right individuals to do syndications with. Remember that even highly efficient and successful individuals are still people. Be humble and willing to help and ask questions. Trust is a crucial factor, so prioritize reliability when selecting business partners. Don't hesitate to follow up with potential partners, but do so thoughtfully to engage them effectively. About our guest, John Ballenger John Ballenger was born and raised in Tulsa, Oklahoma where he later attended and graduated from Oral Roberts University in 2002 with a B.S. Degree in Marketing and minor in Management. After graduation, he departed for Officers Candidate School in Quantico, Virginia where he was commissioned as an officer in the United States Marine Corps before starting a successful 20-year career as a Naval Aviator. Over his career, he was deployed on four different occasions to locations including Eastern Africa, the Pacific, Iraq, and Afghanistan. John finished his career back in the Washington D.C. area where he had the privilege of flying Marine One over the last 5 years for both the Trump and Biden Presidential administrations. John has recently retired from the Marine Corps and relocated to Colorado Springs, CO with his two boys Lincoln and Hudson, and the love of his life Riann. Transitioning from the military, John started success consulting focusing on “Brilliance in the Basics” which leverages his experience from his time in the military, multiple combat deployments, and the loss of his daughter Brooklyn. John is a partner in the commercial real estate development company Aspire Development Group which focuses on the Oklahoma and Colorado markets. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to John Ballenger for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: · SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts · While you there, please RATE & REVIEW the show · SHARE with friends · Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Follow the Money, with Mitch Provosty
01/31/2023
Follow the Money, with Mitch Provosty
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we have a special guest, Mitch Provosty, an industry veteran with over two decades of experience as an investor, developer, advisor, and general contractor. In this insightful conversation, Mitch shares his wealth of knowledge on how to effectively manage insurance risk, make smart decisions in your acquisitions, and offers his market outlook for 2023. This is an episode you won't want to miss! Learn more about Mitch and his story at ! “I'd rather be lucky than good.” 01:57 At the beginning of the episode, Mitch shares the most pressing risks in the industry. He talks about the risk of the deal and insurance risk - two of the biggest areas to keep an eye on. To mitigate insurance risk, Mitch shares 3 key tips: Make sure you fully understand your insurance policy. Be cautious of any potential code issues. Surround yourself with knowledgeable insurance advisors. Later on, Mitch also shares his expert advice for acquisition managers when it comes to underwriting. Get to know your market - don't make the mistake of entering a bad market. Aim for a market with a diverse base - look for areas with strong education, healthcare, government, and manufacturing sectors. “My gut tells me that interest rates are going to peak here in the next three to six months.” 21:04 At the end of the conversation, Mitch shares his insights on the real estate market in 2023. Cap rates in multifamily haven't caught up yet due to high interest rates In light of this, he recommends diversifying your investments and exploring other asset classes such as hotels or schools. The cost of buying start to get up there with the cost of building, making ground-up development a potentially lucrative opportunity. Interest rates might start to go down in 3 to 6 months, however, a recession may be on the horizon. It’s important to be cautious with our investments. About our guest, Mitch Provosty Mr. Provosty has over twenty years of experience in the commercial real estate industry as an investor, developer, advisor, and general contractor. Mr. Provosty has ten years of experience in the residential and commercial construction industry in Florida and he is the founder of Antebellum Construction in the Florida panhandle. Antebellum is licensed to build residential and commercial construction projects throughout the State of Florida. Noteworthy projects in which Mr. Provosty brought his talents include the acquisition and re-development of the Beachside Resort in Panama City Beach, FL, 13 flagged hotels in the Texas oil play including two ground-up development projects, Lotus Village Apartments in Austin, TX, ground-up development projects in Gallatin, TN, Amesbury Plaza Apartments in Dallas, TX, The Brook Hollow Apartments in Desoto, TX, Hotel Palomar in Dallas, TX and The Residences at Hotel Palomar in Dallas, TX. Mr. Provosty has been directly involved in the acquisition, re-development, and disposition of over $250MM worth of commercial real estate projects over the last several years. Mr. Provosty is also the founding partner of Ravenswood Holdings LLC. Mr. Provosty is a principal in RREAF Holdings LLC, Realty America Group Strategic Opportunity Fund and Realty America Development. Prior to his commercial real estate activities, Mr. Provosty worked as a project manager in manufacturing plants executing large industrial construction projects. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Mitch Provosty for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Concentrate to Grow, Diversify to Protect, with Peter Culver
01/24/2023
Concentrate to Grow, Diversify to Protect, with Peter Culver
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Joining us as our guest is Peter Culver, co-founder of Freedom Family Office and a wealth management expert. In this action-packed episode, you'll discover the top strategies for diversifying your portfolio, how to create a steady stream of passive income, and expert tips for navigating the market in 2023. Don't miss out on this opportunity to level up your investment game! Learn more about Peter and her story at ! “Concentrate, to grow, diversify, to protect.” 01:39 At the beginning of the episode, Peter delves into the key principles that help people succeed in their real estate investing journey. Focus on your ideal life. Start by figuring out what you want to achieve and then work backward from there. Take well-thought-out risks and focus on your risk management. Diversify your portfolio to protect your assets. Planning your exit strategy from the beginning is crucial. Peter recommends having a balance of 40% private investments and 60% public investments for diversification. “Have a model, stick to a model, and be disciplined.” 12:57 Peter talks about the concept of predictable passive income. According to him, there are two ways to generate predictable passive income: real estate and private debt. He emphasizes the importance of having multiple streams of income, especially for those in technology-oriented businesses, as the industry is constantly evolving. Towards the end of the conversation, Peter talks about some of the key things he’s doing to manage the risk in 2023. Stick to your business model and be disciplined because there’s too much money chasing too few deals right now. Focus on tertiary markets instead of major metropolitan areas. Invest in diverse funds to diversify your portfolio. About our guest, Peter Culver With over 25 years of experience in wealth management, Peter is responsible for building a custom wealth plan for each client. He begins with a detailed review of their current asset allocation, fees and performance, which culminates in a tailored strategy that realizes their goals and values. With experience in estate planning and facilitating family meetings, his presence among our firm is appreciated by all who work with him. After graduating from Yale University and the University of Connecticut School of Law, Peter practiced law in New York City and Connecticut for 12 years. His law practice led him into the wealth management field, where he represented trust companies and other financial institutions. He then served as Co-Founder and President of Sachem Trust, located in Greenwich, CT and later as President of State Street Bank and Trust Company of CT. For 14 years, he served as Senior Wealth Director at BNY Mellon in New York City. Peter’s passion is working directly with individuals and families to reach their personal and financial goals. He offers his clients deep experience in all facets of wealth management: financial and estate planning, investments and insurance, family dynamics and wealth transfer. To this technical expertise, he adds the ability to see the big picture and to integrate all the components into a cohesive plan. To both clients and other advisors, Peter is known as optimistic, an excellent listener and extremely responsive. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Peter Culver for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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How to Buy a Town, with Dwan Bent-Twyford
01/17/2023
How to Buy a Town, with Dwan Bent-Twyford
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Dwan Bent-Twyford, real estate investment coach, mentor, and podcaster. In our conversation, we talk about how to buy and revitalize an entire town, grow our risk tolerance, and the valuable lessons she learned during her 33-year-long investing career. You don’t want to miss out on this episode! Learn more about Dwan and her story at ! “One thing I will say in the last five years is the value of the downtown has gone up over 40%, which I'm pretty excited about.” 01:43 Dwan is a seasoned investor with 33 years of experience. She got her start in the rehabbing business and has primarily focused on investing in single-family homes and duplexes throughout her career. Recently, however, she's shifted her focus to commercial properties. Dwan's current project is located in Clinton, Iowa, a small town where her husband grew up. She's working to revitalize the area and currently owns 20 buildings, including a mix of retail, office, and industrial spaces. “As a real estate investor, you have to have a high-risk factor.” 07:53 Dwan talks about the challenges and risks of her project in Clinton, Iowa. She shares that her biggest obstacle was gaining support from the local community. Navigating the human aspect of the business proved to be the most difficult aspect of the project. Dwan shares her vision for Clinton, which is to create a family-friendly town with plenty of options for dining, shopping, and entertainment. In order to achieve this, Dwan has purchased several of the largest buildings in downtown Clinton and has evicted tenants whose businesses did not align with her vision. With a 5-year plan in place, Dwan aims to transform downtown Clinton into a shopping destination with a variety of boutiques, antique shops, and restaurants for visitors to enjoy. “You have to keep learning, going to classes, listening to podcasts, I go to other people's workshops.” 23:33 At the end of the episode, Dwan reflects on some of the biggest lessons she's learned throughout her career. She shares that she's learned how to make quick, well-informed decisions, even in the face of risk. Over time, her risk tolerance has increased, allowing her to take on more ambitious projects and have more fun with her investments. About our guest, Dwan Bent-Twyford Dwan Bent-Twyford and her husband, Bill Twyford, are professional real estate investment coaches, mentors, and top podcasters. With over 2,000 real estate transactions under their belts, they have created a duplicatable system to help you find the same success. Their goal is to educate you on everything related to real estate investing from short sale investments to real estate foreclosures to Subject-To's. Their home study courses, proven methods, internet training program, and live classes not only teach you how to become a multimillionaire real estate investor... they also hold you accountable for your progression along the way. Specialties: Teaching seminars to my many students and helping homeowners get out of underwater situations! Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Dwan Bent-Twyford for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Dirt Rich, with Mark Podolsky
12/13/2022
Dirt Rich, with Mark Podolsky
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is the Land Geek, Mark Podolsky, author, and podcast host. Mark picked up more than 6000 raw pieces of land during his 20 years in the business, and he shares with us his simple process step-by-step. We learn about how to start in this asset class and how to mitigate the risk of land investing. Learn more about Mark and his story at ! “This model is so simple that if the podcast listeners are driving they might fall asleep.” 03:38 Mark is the owner of Frontier Properties, a land investment company. He’s been in the business for over 20 years now. Mark has a simple process for how he picks up raw land and he shares it step-by-step. He picks up raw land from owners who are in a distressed scenario. He takes the land off of their hand, solving their problem. He then tries to sell the land to the neighbors at a discounted price. This creates a passive income for him for years. Mark’s advice on how to start a land business. Know where other land investors are buying land. Figure out your budget and pick your market. Start mailing out offers to property owners. A good place to create a list is datatree.com. Create a pricing matrix. Automate your processes. “At some point, too little money in this niche is a problem. But too much money in this niche is also a problem.” 25:10 Mark talks about how land investment can be a good passive income stream. It’s a very accessible asset class and can add passive income to any size of real estate portfolio. Mark’s purpose in life is to solve people's money and time problems and help with self-actualization. That's what motivates him every day About our guest, Mark Podolsky Mark is the owner of Frontier Properties, a land investment company. Mark (AKA The Land Geek) is widely considered the Country’s most trusted and foremost authority on buying and selling raw, undeveloped land within the United States. Since 2001 Mark has completed over 6,000 raw land deals with an average return on investment of over 300% on cash purchases and over 1000% on land deals that he financed. Mark is the host of one of the top-rated podcasts in the Investing Category on iTunes aptly titled The Art of Passive Income Model. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Mark Podolsky for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Sourcing Private Lending, with Edward Brown
11/29/2022
Sourcing Private Lending, with Edward Brown
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. On the show today we are talking about debt and all the risks associated with it. Our guest is Edward Brown, a capital-raising expert and podcast host. We learn about financing, how private lending works, and the best ways to choose a lender. Learn more about Edward and his story at ! “Even though our documents do have a one-year hold, there's no penalty for early withdrawal as long as you just give us 30 days' notice.” 03:44 Edward is working at Pacific Private Lending as a capital raiser. Investors are investing in his funds that are building up the capital and Edward’s company lending it out by mostly doing residential bridge lending. He assists with 4 different debt funds. The upside of his funds as opposed to traditional CRE investments is that the risk is very low. The investor’s principal is secured as the investor is the first person in the debt stack. “A few years ago, when interest rates were still fairly low, there was so much money abounding, people keep undercutting each other. This doesn’t happen anymore.” 14:38 Edward shares his top 3 things to look out for when choosing a lender Check out their portfolio and how long they’ve been in business. Get some referrals. Make sure to ask about the structure of the fund draw and if the funds will be available at closing. Edward reflects on the current market. Because the interest rates have gone up the refi market has dried up considerably. This has made even better opportunities to Edward’s company. “It's better to give bad news in your tax returns with an explanation than it is to have to come back afterward and say, Well, I didn't know you're gonna catch that.” 28:09 Edward talks about why investors choose their lending instead of agency debt. They are faster. They don’t require that much qualification. They don’t perform that many background checks. Edward explains what investors can do to make a perfect file. Make sure that all the forms, most importantly the 1003, are filled out as accurately as possible. When you send your tax returns, if there's anything out of the ordinary, send a letter of explanation. Know your tax return and your financials well. About our guest, Edward Brown For over 20 years Edward Brown was CEO of a $40 million alternative lending company based in Marin County. Today he assists Pacific Private Money with capital raising and investor presentations. Edward is also the host of two radio shows —The Best of Investing with Mark Hanf and Sports Econ 101, a national sports and business show. Edward earned his B.S. in Accounting and M.S in Taxation from Golden Gate University, and has held licenses and certifications including Real Estate Salesperson, Insurance License, Series 7 Securities License, Tax Preparation License, and Certified Fund Specialist. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Edward Brown for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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From Broke to Millions, with Mike Ealy
11/22/2022
From Broke to Millions, with Mike Ealy
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today we have a behemoth in the world of commercial real estate, Mike Ealy. Mike has over 23 years of experience in single-family, multifamily, and hotels and he shares with us how he mitigates risk in his businesses. We talk about the best markets in the country, how to get into the hotel industry, and how he made a 5M dollar profit on a deal during COVID. Join us and get inspired. Learn more about Mike and his story at ! “When you first start investing, you want to see the property and touch it. But as you get bigger and you start scaling, your team is everything.” 04:37 Mike has over 300 apartment units and 5000 keys in hotels all over the country. His main focus is the Midwest but he recently started to invest in the South East as well. Investing in the Southeast is riskier but the rewards are higher. Mike says that building a strong team enabled him to be able to invest in different states in the country. Mike explains that the downside of a market where the margins are greater is you get hit harder when the market corrects itself. These markets are also not cash-flowing during the hold period, however, they appreciate a lot every year. “I'm looking for deals that could potentially do a 3x multiple.” 13:14 Mike talks about a successful deal he picked up in 2020, mid-COVID. It was a 128-door deal in Cincinnati and he made 5M dollar profit on it. His biggest takeaway was to be consistent and persistent. Mike shares some of the biggest mistakes he sees people make going into a deal. Being too dependent on a low interest rate. Don’t buy a property just because the debt is cheap, but because it’s a great deal. Not having enough reserves and CAPEX. Put at least 3.5-4% of your gross revenue away monthly. Don’t be paralyzed by the recession. “I know multiple people that own hotels, and literally took home 2-3 million cash in revenue from it.” 30:34 Mike invests in hotels as well. They make more cash, depreciate harder, and have better tax benefits. It’s difficult to get into the hotel business, but it’s possible with a great team with credible and experienced team members. About our guest, Michael Ealy is principal and owner of a private equity fund investing in apartments and hotels. Me and my partners have acquired 3,000 apartment units since 1999. In addition, our hotel partner-operator has 5,000 hotel keys or $1.5 BILLION worth of hotels under management. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Mike Ealy for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Developing Self Storage, with Drew Dolan
11/15/2022
Developing Self Storage, with Drew Dolan
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Drew Dolan, a real estate investor with over 20 years of experience in self-storage. In our conversation, we talk about how to limit your risk in development projects, the best ways to get into self-storage, and the future of this asset class. Drew also shares his best practices that will make you a better CRE investor! Don’t miss out on this episode! Learn more about Drew and his story at ! “Although you might make mistakes, when you keep showing up, you're going to learn something.” 04:10 Drew studied engineering and started working in sales when he was 23 years old. In 5 years, he met a lot of developers and realized that that’s what he wanted to do. Although it took him a long time to learn the industry and build relationships, after 20 years he now has a very extensive network in Albuquerque, New Mexico. “If you always protect your downside, the upside takes care of itself.“ 10:21 Drew shares his best piece of advice on how to limit risk in development projects. Create sections of the work that you’re doing and focus on one section at a time. Have a solid strategy that you stick to but constantly reassess. Have someone on your team who looks at deals from a different perspective and plays devil’s advocate. Drew talks about the ways to get into self-storage. You can buy a value add. In the last few years, the performance of self-storage went up significantly so the value add prices are very high and the returns are low. You can build self-storage units. Self-storage has one of the lowest cost of capital development but you really have to understand the market. In the future, one of the biggest opportunities in self-storage is the influx of people investing in real estate. The biggest risk is that the market is changing very fast and money isn’t cheap anymore. About our guest, Drew Dolan Over his 20-year career in development and construction, Drew has focused on structuring real estate investments, joint ventures, and capital management. Previously he was President of Titan Development where he managed Titan's self-storage and multifamily divisions. In 2017, Drew helped launched Titan Development Real Estate Fund I a $112 million fully-discretionary fund focused on ground-up development. He served as Co-Fund Manager until 2019 when he became Fund Manager. Drew is currently a member of YPO, active on his ULI Council, and was formerly on NAIOP's national board. He holds a BS in Industrial Engineering from Arizona State University. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Drew Dolan for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Eliminate Risk in Your Systems, with Jon Darbyshire
11/08/2022
Eliminate Risk in Your Systems, with Jon Darbyshire
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Jon Darbyshire, the CEO and co-founder of SmartSuite. In this conversation, we talk specifically about one of our 4 quadrants - systems risk. We learn about how to elevate our processes by using simple and accessible technology and the key systems every CRE business should have. Learn more about Jon and his story at ! “In commercial real estate, people continue to run their business using older technology when newer platforms are available that are just as financially viable for them.” 03:46 Jon is the CEO of SmartSuite. SmartSuite is a work management platform that allows organizations to manage any business process inside of their organization. It is a no-code platform, which means that it doesn't require any coding or knowledge of programming languages. Users can use different managing templates and customize them to their needs. According to Jon, the biggest mistake people make in their real estate systems is using old technology to manage their business. Sometimes, even billion-dollar companies manage their portfolios on spreadsheets without any systems. When businesses switch to up-to-date technology, the people involved in the processes can collaborate better and tasks can be allocated easier. “We help organizations manage any process or any project on a single platform.” 16:08 SmartSuite helps manage many different processes. Due diligenceThere are a lot of standard due diligence questionnaires in SmartSuite that can be assigned to different people with due dates. Different properties can also be compared. Asset managementYou can do monthly, quarterly, or semi-annual reviews of your properties from a health perspective, an occupancy perspective, and a financial perspective. You can track maintenance activities as well. Exit strategyThere are a few ways an investor can prepare for an exit with SmartSuite. The first is tracking market economics in that particular geography. The second way is to look at the cash flow. At the end of the conversation, Jon shares the most important system features that a CRE investor should consider: You want to have a product that's accessible through the web and mobile. The systems have to be cost-effective. (SmartSuite starts at $10 per user per month.) You want to have integrations because you need to get data into the system. Ability to automate routine tasks in order to save time. About our guest, Jon Darbyshire Jon is CEO & Co-Founder of SmartSuite, a work management platform allowing realtors, property managers, and CRE companies to improve their operations, tenant relations, bids, and remodels. With Jon’s experience at EY and dozens of Fortune 100 companies, he has enhanced the productivity of people and teams by aligning their work around common goals. Throughout his career, Jon has been dedicated to automating everyday, essential business tasks to create smarter, more efficient organizations, no matter what the industry. Prior to Archer Technologies, Jon held leadership positions at both EY and Price Waterhouse, honing his skills in understanding the need to automate and simplify work for the enterprise. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Jon Darbyshire for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Is this a risk I can live with? with Ken Gee
10/25/2022
Is this a risk I can live with? with Ken Gee
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we have a veteran CRE investor with us who has more than 25 years of experience, Ken Gee. In our conversation, Ken breaks down risk in different parts of the lifecycle of a commercial real estate deal. He lays out how to succeed in the CRE world and mitigate the risks through due diligence, raising capital, and asset management. You don’t want to miss out on this episode! Learn more about Ken and his story at ! “I've always told our investors, it's my job to try to protect the downside and make sure we have a good upside plan in place.” 04:52 Ken has around 2000 doors in his portfolio and he’s been investing in commercial real estate for more than 25 years. He describes himself as a risk-averse person. According to him, one of the hardest aspects of real estate investing is bringing yourself to the awareness of the risks that you want to mitigate. Ken’s advice on how to successfully identify and mitigate risk: Educate yourself on the industry, market, and property. Focus on your operation and constantly evaluate your business plan. Have a solid insurance policy. Identifying risk comes easier with experience, so don’t give up. “There's going to be things wrong everywhere. It's just a fact of life. What our job is, is to identify risks that matter.” 12:40 Ken talks about how to manage the risks surrounding the lifecycle of the property. Due diligenceLook at the physical property and see if there are hidden things there that are difficult to correct or significantly impact your business plan. Ken’s advice is to find a mentor at the beginning of your investing journey to help you build out your due diligence process. Document the entire procedure. Raising capitalIt’s important for passive investors to understand what it means to be invested in a multifamily real estate deal. Ask all the uncomfortable questions from the sponsor to evaluate if they’re professional and knowledgeable enough. Figure out if they’re transparent and have a good track record. Asset managementGive yourself 30-60 days to learn everything about the property before you start the renovation. Based on this information, modify your business plan. Ken shares his insight on CRE risks in the near future. Interest rates have doubled in the last year and we might go into a recession. In the real estate industry, the most important thing is occupancy, so make sure you’re buying in a growth market and keep your occupancy high. About our guest, Ken Gee Mr. Gee is the founder and managing partner of KRI Partners and the KRI group of companies. He has more than 24 years of significant real estate, banking, private equity transaction and principal investing experience. Throughout his career, he has been involved in transactions valued in excess of $2.0 billion, much of which has included the acquisition, management and financing of various multi-family real estate projects as well as playing a significant role as a member of due diligence and transaction structure planning teams for several private equity firms specializing in the small and middle markets. Prior to forming KRI Partners, Mr. Gee was a tax manager with Deloitte & Touche LLP where he focused his practice on state and local tax planning, merger and acquisition due diligence and transaction structure planning for private equity and middle market companies. Some of his major clients included The Riverside Company, Key Equity Capital Partners, Blue Point Capital, Linsalata Capital Partners, The Zaremba Group, Charter One Bank and Applied Industrial Technologies, Inc. Prior to his career at Deloitte & Touche, Mr. Gee spent several years at National City Bank (now part of PNC Bank) where he served as commercial loan officer, credit analyst, branch manager, and mortgage loan originator during his career with the bank. Unrelated to his real estate experience, Mr. Gee also owned and operated several certified Cessna Pilot Centers in the Northeast Ohio area. These Cessna Pilot Centers operated an FAA approved professional pilot school and specialized in the sale of new and pre-owned aircraft. Mr. Gee is a licensed Ohio Certified Public Accountant. He received his master's degree from Case Western Reserve University's Weatherhead School of Management and his B.B.A. from the University of Toledo. He is a member of the National Apartment Association, Florida Apartment Association, Bay Area Apartment Association, Apartment Association of Greater Orlando, First Cost Apartment Association, Northeast Ohio Apartment Association, Ohio Society of Certified Public Accountants and American Institute of Certified Public Accountants. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Ken Gee for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Manage Risk Like the Military, with Vadim Rey
09/28/2022
Manage Risk Like the Military, with Vadim Rey
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Vadim Rey, a multifamily real estate investor and former US Navy Officer. In our conversation, we dig into a fascinating topic - how the military mitigates and manages risk, and what can we learn from their systems and strategies for our investing journey. You’ll hear some ideas on how to set up your operating systems better in your business, make sure that you have a strong purpose behind what you're doing, and positively impact the people around you. Learn more about Vadim and his story at ! “I joined the duty to really help others and create a positive impact on the world.” 04:05 Vadim joined the US Navy in 2005, right after college. He was an officer for 7 years and just got out of the Navy this year. He joined the military because he wanted to make a positive impact on the world and do something that was not the traditional 9 to 5 corporate job. However, over the years he realized that the military had a lot of corporate culture and bureaucracy as well. Around 3 years ago, Vadim decided to start investing in multifamily real estate because he was looking for more freedom for himself and his family. “There's a difference between being rich and being wealthy. Having a lot of money doesn't mean much if you don't have the time to do what you really want to do.” 08:58 Risk is something that’s talked about every day in the military and everything is about how to reduce risk to an acceptable level. Vadim shares what he’s learned from the military about managing and mitigating risk. Have strong procedures and policies in place and always follow them. Work with people who have common goals as you and build a strong team. Vadim talks about his Why. He wants to make the world a better place and positively impact as many lives as possible. Through multifamily investing, he can take care of his tenants and it also gives him enough free time to do impactful things. “There's only so much you can do with policies and procedures if you don't have the right people to actually do those policies and procedures.” 25:10 At the end of the conversation, Vadim shares his best pieces of advice on how to mitigate real estate risk. Always make sure to have appropriate insurance in place. Be conservative in your underwriting. Have a strong property management team that really cares about your property. Choose people in your team who have the same goals as you. About our guest, Vadim Rey Born in Ukraine and raised in Los Angeles, CA, Vadim graduated from Tufts University in 2015 with a Bachelor of Science degree in Mechanical Engineering and received a commission as a US Navy Officer. In his 5 years of Naval Service, Vadim has led almost 300 service members across 3 different branches of the military in a variety of Joint and Navy missions. Currently, he is serving aboard the USS HARRY S TRUMAN as one of the information systems officers. Vadim is leaving active-duty service in 2022 and has pivoted to multifamily investing as a means of helping other people live their best lives. He started his portfolio in 2018 with a single-family house which he rents to a Baltimore Regional Housing Program family and is currently house-hacking a duplex. He is a GP in 23 units in Norfolk, VA, and an LP in over 2,100 units across the Southeast. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Vadim Rey for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Risk Adjusted Returns, with Paul Shannon
09/20/2022
Risk Adjusted Returns, with Paul Shannon
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Paul Shannon, a multifamily investor from Indianapolis. In our conversation, we talk about how to mitigate real estate risk, how to succeed in the current market, and what metrics to focus on in your underwritings. What you'll gain from this conversation is a high-level understanding of how someone in the CRE world thinks about risk, so you definitely want to tune in. Learn more about Paul and his story at ! “Having different options gives you a margin of safety, where maybe if you just go into one avenue for success, and that avenue doesn't work out, you're in a pinch.” 03:59 At the beginning of the conversation, Paul talks about the biggest risk he’s taken in his life. When he was 37 years old, he left a well-paying sales leader position to pursue his career as a real estate investor full-time. He mitigated the risk by educating himself, saving up, and building a solid safety net for himself and his family. He started investing in the Midwest, specifically in Indianapolis, as it’s a historically cash-flowing market. Paul’s advice on how to mitigate real estate risk and build a successful portfolio is to always have options in your investing journey. Plan out multiple exit strategies with every investment to never be backed up in a corner. “When inflation is above 4%, and unemployment is below 4%, in every case, we've gone into recession. “ 15:30 Paul shares his insights about the current real estate market and how to manage its risks. We’re most probably heading towards a recession, so be prepared for the potential downside. In the current environment, cap rates are expanding a bit more than they have in the past. Therefore, be more conservative in your underwriting. Due to inflation, fewer people can afford to buy homes, which means that they're going to be renting. That's a solid indicator for multifamily. Multifamily has typically done very well in times of inflation. During a recession, vacancy affects A+-class (luxury tenants) and C-class (working class tenants) properties the most. B-class properties are a bit safer avenue. Paul is a passive investor as well. His favorite metric in underwriting is the yield on cost, which is the pro forma net operating income. It provides a way to compare the potential return on a value-add investment versus less risky alternatives. To calculate it, simply divide the net operating income by the project's total cost. About our Guest, Paul Shannon Paul Shannon spent his career as a sales leader and consultant for a large ophthalmology company, implementing surgical devices into operating rooms and health systems across the midwest. Since leaving his corporate career in 2019, Paul has acquired over 150 single-family and multifamily units by recycling his equity, using the BRRRR method, and/or joint venturing. Paul has experience in acquisitions, raising capital, property management, and project management, and is a licensed Realtor in Indiana. Along with being active in his business, Paul is a passive, limited partner in over 1,400 multifamily units, numerous industrial offerings, and ATMs. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Paul Shannon for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Giving Investors a Reason to Believe, with John Casmon
09/13/2022
Giving Investors a Reason to Believe, with John Casmon
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we dive into our 4 quadrants of risk and specifically the last quadrant - systems risk. Our guest is John Casmon, who knows a lot about marketing, sales, and delivery. In this conversation, we talk about how to create the right foundation for your CRE business, build a healthy successful company, and find your “Why”. Learn more about John and his story at ! “More than 50% of Americans who make six figures or more live check to check.” 04:01 John spent 15 years in corporate America doing advertising and marketing for big brands such as Nike, Coors Light, Mountain Dew, and General Motors. However, he didn’t just want to rely on a W-2 job, so to create multiple income streams, he started investing in real estate. John started with small multifamily investments of 2-4 doors and scaled up over time to larger deals of hundreds of units. “We're facing record-breaking inflation. You want to have your money parked in income-producing, appreciating assets, like real estate.” 08:32 John shares the best 3 ways to get into multifamily as an average working professional: House hacking. Buy a 2-4 unit property, live in one unit, and rent out the others. Joint venture. If you don’t have a lot of time or experience, partner up with somebody who has those. Invest in syndications. If you have more capital and want to be a passive investor, invest in larger deals through syndication. When you decide to work towards financial freedom through real estate, figure out your “Why”. Ask yourself what motivates you the most. Your goals, desires, fears, or frustrations. “We do business with people who we know, like, and trust, so you have to develop that relationship if you want people to do business with you.” 17:07 John is an expert in building real estate systems like marketing, sales, and delivery. He shares the biggest mistakes he sees people make in these areas. Not thinking about the service that you’re providing as a service. Take your time to understand your clients and the problems you’re solving for people. Trying to have a product or service for everybody. Focus on your specific customer avatar. Not keeping track of your connections. Make sure to have a CRM in place, so you can reach out to the people you meet. Always focus on adding value while you’re building your marketing funnel. About our Guest, John Casmon John Casmon launched Casmon Capital Group to help busy professionals invest in real estate without taking on a second job. We’ve helped families invest in close to $90M in multifamily apartments to create passive income, reduce their tax obligation, and foster generational wealth. John hosts the Target Market Insights: Multifamily + Marketing podcast. In addition, he is the co-founder of the Midwest Real Estate Networking Summit. As a former marketing executive, John oversaw marketing campaigns for General Motors, PepsiCo, and MillerCoors. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to John Casmon for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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How to Find Undervalued Markets, with Stefan Tsvetkov
09/06/2022
How to Find Undervalued Markets, with Stefan Tsvetkov
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. If you’ve been listening to this show you’re probably starting to get a hang of how we mitigate CRE risk. We analyze and manage the risk based on good data. Our guest today, Stefan Tsvetkov, a financial engineer turned multifamily investor and analytics speaker, is all about market data analysis. In our conversation, we talk about how the real estate market changed in the last 2 recessions, what markets are over or undervalued right now, and what to expect in the industry if another recession comes. Join us to evaluate your target market better! Learn more about Stefan and his story at ! “Market valuation is a measure of where a real estate market, city, county, or metropolitan area is valued relative to its key fundamentals.” 5:34 Stefan moved to the US in 2009 when he was 22 years old. He started his career as a financial engineer and over the years, transitioned into the real estate world and market analysis. Stefan explains how he’s evaluating a particular market. He looks at 3 key fundamentals: income, population, and housing supply. He measures if the market is overvalued or undervalued, and how would it handle a peak market cycle and subsequent fall off. “At the current time, the undervalued markets tend to be in the Midwest and Northeast.” 11:40 Based on data from the last 2 financial crises, the dot-com bubble and the 2008 financial crisis, Stefan can evaluate how a specific market would react to a potential recession. He shows us a heatmap of US real estate market valuations by state for 2020. This displays undervalued and overvalued markets. Stefan explains that the less overvalued a market is at the time of a recession, the more likely that market is going to do well in the coming decade. This means that investing in an undervalued state or city potentially has less downside in a possible recession, however, the 3 key fundamentals also have to make sense to evaluate these markets. About our Guest, Stefan Tsvetkov Stefan Tsvetkov is the Founder of RealtyQuant (www.realtyquant.com), a company that brings data-driven and quantitative techniques to the real estate industry. On a mission to add massive industry value through education, investment, technology, and analytics. Financial engineer turned multifamily investor, analytics speaker, and live webinar host. He holds a Master's degree in Financial Engineering from Columbia University, and during his finance career managed ~$90 billion derivatives portfolio jointly with colleagues. Featured on multiple Podcast and Webinar events including Elevate, Best Ever Real Estate Show, Investing in the U.S. etc. Host of Finance Meets Real Estate webinar series. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Stefan Tsvetkov for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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Get Ready for a Fire Sale, with Rod Khleif
08/30/2022
Get Ready for a Fire Sale, with Rod Khleif
Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we have an amazing guest for you, one of the country’s top real estate trainers, Rod Khleif. Rod is a real estate investor, author, multifamily mentor, and podcast host who owned thousands of units in his career. In our conversation, we talk about how Rod built his insane portfolio, what is about to come in the near future in the real estate industry, and how to mitigate risks in your investments. Learn more about Rod and his story at ! “Cashflow is everything.” 05:14 Rod moved to the United States from the Netherlands with his mother and brother when he was 6 years old. He had a humble upbringing, but his mom was very entrepreneurial and inspired him to invest his money from an early age. Rod chose not to attend college but go straight to get his real estate license. He became successful fast and built a huge portfolio. However, in the 2008 crash, he lost almost $50M in investments. This made him a more conservative investor, and over time created even bigger success for himself. “There's going to be an incredible opportunity in the near future. Some people say it could be the greatest transfer of wealth we experienced in our lifetimes.” 12:36 Rod talks about some of the risks he sees in the current market, and how these can cause complications in the future. Operators are overleveraging debt and bridge debt became common which creates skinny deals. The United States printed so much money in the last few years that it’s increasing interest rates and inflation. This can cause a recession or even a depression in the upcoming years. Rod shares his best pieces of advice on how to mitigate real estate risk in the current market. Be very conservative in your underwriting. Cash is king in a crisis so focus on cash-flowing deals. Your mindset is very important. Focus on your goals and learn as much about the current market as possible. Be a specialist and not a generalist. Specialize in one asset class and become an expert in it. About our Guest, Rod Khleif Rod Khleif is an entrepreneur, real estate investor, multiple business owner, author, mentor, and community philanthropist who is passionate about business, life, success, and giving back. As one of the country’s top real estate trainers, Rod has personally owned and managed over 2,000 properties. Rod is the Host of the Top-Ranked iTunes Real Estate Podcast which has been downloaded more than 13,000,000 times – “The Lifetime Cash Flow Through Real Estate Investing Podcast.” Rod is the author of the #1 best-selling book “How to Create Lifetime Cash Flow Through Multifamily Properties” considered to be an essential “textbook” for aspiring multifamily investors. As an accomplished entrepreneur, Rod has built several successful multi-million dollar businesses. As a community philanthropist, Rod founded and directs The Tiny Hands Foundation, which has benefited more than 120,000 community children and families in need. Rod has combined his passion for real estate investing and business development coaching with his personal philosophy of goal setting, envisioning, and manifesting success to become one of America’s top real estate investment and business development trainers. Mentioned in the show: Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: Special thanks to Rod Khleif for taking the time to share so many great insights with us If you enjoyed this podcast, there’s a couple of things we need you to do right now: SUBSCRIBE to Managing Commercial Real Estate Risk on , , or wherever you listen to podcasts While you there, please RATE & REVIEW the show SHARE with friends Finally, please, Then, please share the show with whoever you think it will inspire. Until the next time, We truly appreciate you listening. Need the CRE Insurance Guy? More great stories & information at: – – If you enjoyed this episode, then you’ll love these ones:
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