Commercial Real Estate Pro Network

Informações:

Synopsis

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.

Episodes

  • BIGGEST RISK with Doug Marshall - CREPN Radio

    18/06/2019 Duration: 01min

    Q: I'm asking all of my my guest if they could identify the biggest risk that they face.  This could apply to this topic, or as you as an investor or even you as a lender. If you could identify a BIGGEST RISK and then if there is a strategy that you recognize to minimize or manage that.   A: I'm going to probably give you a different type of answer. I think DarrIn, the greatest risk is the risk of not doing anything. I look back on my life and it's when I take the risk to do things that are outside of my comfort zone.   Sometimes it works and sometimes it doesn't.  But I'm trying. And, I look at it, like I said before earlier in this podcast, that I have friends that I know that are so fearful of taking risks that they won't do it.  Even though, they might be miserable in what their particular situation is at that moment. But to to risk failure is is worse than staying in the status quo. So my personal opinion about risk is is to go forward and and try things even if you feel uncomfortable doing them.

  • BIGGEST RISK with Josh Welch - CREPN Radio

    17/06/2019 Duration: 01min

    Q: What do you see is your biggest risk that you face? A: I think the biggest risk I face is kind of ties into what I was saying earlier is that I think the biggest risk is thinking or pretending that you have a crystal ball and knowing or thinking that the market has topped out and then letting that turn into fear of buying anymore, or continuing to grow your business model.  Which, for us is acquiring property and growing the portfolio. I get asked almost weekly now, “Well, don't you think the markets too hot and where the ceiling?”  I'm like we could be but you know people were saying that three years ago and here we are and we're higher than we were then. You can always play that game where well. “You know, things seem too hot. I'm just going to go and wait it out”.  Well, you could be waiting it out for the next 10 years. So the question is do you want to wait it out and let 10 years pass you by or do you want to take a calculated risk now? As long as a deal makes sense and the numbers make sense and you

  • BIGGEST RISK with Scott Hollister - CREPN Radio

    14/06/2019 Duration: 01min

    From an investor and rehab standpoint the two big issues that people get hung up on are under estimating the rehab cost and under estimating the time to complete the project.  You'll find that if you go forward that type of lending, they're always going to ask, “What’s your exit strategy? What's your backup exit strategy? What’s your third exit strategy?  That's what I try to find. If I can't refinance out, can I quick sale? Can I fire sale it? Can I do some type of creative strategy? What does it look like on a commercial note? What does it look like on a fixed 30-year, you know Fannie and Freddie note?  I try to play out that worst case scenario, “can I weather that storm?” Then I back into the deal.

  • 6 Headaches Faced by Centimillionaires with Richard Wilson - CREPN #199

    12/06/2019 Duration: 35min

    Headaches faced by Centimillionaires, really? If you had $100,000,000 would you really have headaches? Richard Wilson is the authority on wealth challenges faced by the ultra wealthy.  He is the founder of he The Family Office Club, and author of the best seller, The Single Family Office where he helps Family Offices deal with the challenges of preserving and transferring the family wealth to the next generational.   By design, centimillionaires, families with net worth in excess of $100,000,000, keep a low profile.  They don’t do interviews, nor share publicly about the the challenges of managing and maintaining their wealth.    In today’s episode on CREPN Radio, Richard takes us through the 6 Headaches Faced by Centimillionaires detailed in his new book, Centimillionaire Migraines.  Family Offices Prior to starting The Family Office Club, Richard worked in risk consulting for publicly traded companies and then as a placement agent working with hedge funds calling on investment managers.  During his investme

  • BIGGEST Risk with J. Darrin Gross - CREPN #200

    12/06/2019 Duration: 08min

    What is the BIGGEST Risk Real Estate Investors face? Merriam Webster defines risk this way: possibility of loss or injury In Real Estate, Risk is everywhere.  It’s what you don’t know can hurt you. That can be a problem when you are talking about millions of dollars. This is why so many wise, experienced investors place a premium on knowledge and so much effort is spent in due diligence.   Most investors agree that you can never know everything, but you can dig in and ask questions and get answers that make sense for you to go forward. By day, I am an insurance broker.  My focus is working with Real Estate investors to assess their exposure to loss and help them manage the risk. Risk Management Process Risk Management is a continuous process.  There are four basic steps to risk management: Identify Assess Manage Review Risk Management Strategies In insurance, we utilize three specific Risk Management strategies: If the situation is too risky, Avoid the risk If there are things we can do to Minimize the Ris

  • Digital Marketing Growth Strategies for Real Estate Professionals with Lael Sturm - CREPN #198

    30/05/2019 Duration: 33min

    A digital marketing growth strategy is needed for any real estate professional looking for more clients and sales.  If you have no web presence, you are invisible to your prospective clients looking for you. Prior to the internet, Sales and Marketing were lumped into one sentence.  In many companies, they were the same department. The internet provided separation.  Now your marketing efforts can be tracked and measured while you attract and nurture prospective clients. Sales is measured by sales presentations and closings.   Lael Sturm founded LPSS Digital Marketing to deliver effective growth strategies and tactics to real estate professionals and other profitable businesses.  Below he shares some strategies & tactics that you can implement in your business to attract new clients. Digital Marketing Growth Strategies Digital Marketing channels are invaluable for Real Estate professionals who market to individuals.  Whether you sell single family homes, commercial buildings or you seek investors to partici

  • Challenges with Scaling in Multifamily with Krista Testani - CREPN #197

    23/05/2019 Duration: 50min

    The Challenges with scaling in Multifamily faced by investors trying to grow are avoidable, if you are willing to learn from others.     Krista Testani quit her law practice cold turkey for real estate.  Together with her firefighter husband, they started flipping single family homes on Long Island, NY, in 2007.  Initially the margins were healthy, and the number of opportunities were unlimited. By 2011, competitors were everywhere.  The profit margins were shrinking and the supply of available properties started to dry up.  It was at this point that Krista recognized, in order to scale her real estate investment business, she needed to get into larger properties.   Flipping single family homes does not naturally lead to multifamily.  While both flipping and multifamily are real estate, they are dramatically different.  Flipping homes is buying, fixing and selling, quickly for a profit. Multifamily is a business with ongoing operations.  It requires you to dive deep into due diligence to find the operational

  • Asset Management vs Property Management with John Wilhoit - CREPN #196

    16/05/2019 Duration: 39min

    Asset Management versus Property Management, what is the difference? John Wilhoit is an experienced real estate investor, multifamily asset manager, author and returning guest to CREPN Radio.  His true expertise is Multifamily Asset Management.  In this interview John makes the distinction between Asset Management and Property Management.    In every real estate deal, there are three components.  The property, people and paper.  Knowing and understanding each are key to the successful operation of any property.  Following is a description of each and their relation to the deal. Property Every property has a specific street address.  In addition it is a part of the ecosystem for that neighborhood, market, city, and submarket.  Additionally, it has a relation with area comparative assets and competitive assets. People The people are most important part.  People include Asset Management, Property Management and Ownership which make up the investor people.  Additionally, there are the Residents who live at the pr

  • Why He Sold All His Multifamily Real Estate with Jonathan Twombly - CREPN #195

    09/05/2019 Duration: 01h04min

    Why he sold all his Multifamily Real Estate is a question Jonathan Twombly answers.  If so many are buying, why did he sell? Jonathan Twombly is a former Wall Street attorney who specialized in corporate contract disputes between hotels and property owners.  When the Great Recession happened, his employer waited for legal activity that never materialized. Since billings were down, cost had to be cut and Jonathan was turned lose to become a real estate investor. The Case for Buying Multifamily During the Great Recession people were losing their jobs and homes as their mortgages came due.  Replacement financing was unavailable. What were these former homeowners to do? They still needed a place to live.  With their credit trashed, and no financing available, their only hope was to rent. Nationwide, multifamily is one of the most affordable options for renters.  As more and more borrowers defaulted, the demand for rental housing was grew.  Multifamily is a proven business with predictable income and operating cos

  • Multifamily Value Add Rebranding with Reed Goossens - CREPN #194

    02/05/2019 Duration: 49min

    Multifamily Value Add Rebranding is one way to recapture hidden value for investors looking to increase the value of their multifamily property. Reed Goossens, an engineer by training, has put his project managing skills to work in his multifamily syndication projects.  The normal syndication hurdles include; pick a market, find the property, get it under contract, raise capital, assemble the team, manage the asset, operate the property and make a profit for the investors.   Reed and his team at Wildhorn Capital, have employed a value add strategy where they have created additional value through rebranding their multifamily properties.  Wildhorn Capital has identified the following as its investing parameters for properties where they can add value for their investors: 1980’s and newer Class B assets Neighborhood Median income $50,000 - $60,000 Primary market with population growth   In the path of progress They have determined that properties matching this profile are the most stable housing during downtur

  • Commercial Real Estate Due Diligence with Brian Hennessey - CREPN # 193

    25/04/2019 Duration: 50min

    Commercial Real Estate Due Diligence is the key to buying right.  If you fail to underwrite properly, you will learn the hard way. Brian Hennessey, is a 30 year commercial real estate veteran.  He has learned and authored multiple books on commercial real estate, including, “The Due Diligence Handbook For Commercial Real Estate”. FREE 14 Page Comprehensive Due Diligence Checklist for Real Estate Investments TEXT “CRE” to 444999 After  18 years as a commercial real estate broker, Brian took a position as VP of acquisitions for one of his clients.  How different could it be from the broker role versus working for the investor making acquisitions? The first large office deal almost got Brian fired.  The seller quickly realized Brian did not know what he was doing and took advantage of Brian’s lack of experience.  The steps Brian missed during due diligence his boss dearly and almost cost Brian his job. Brian had a choice to make.  He could either walk away and go back to the broker side, or he could create syste

  • How to Underwrite a Multifamily Market with Anna Myers - CREPN # 192

    18/04/2019 Duration: 41min

    Underwrite a Multifamily Market before you invest in a property.  Before you fall in love with a property, you have to learn what is driving the market.   Anna Myers, Vice President of GroCapitus, identifies key indicators of a healthy housing market.   When these are present, you protect yourself and your investors from financial loss.   Since 2006, Anna has been a long distance real estate investor.  She invested in single family and land before focusing on the benefits of multifamily. Today, she and her investors focus on class C properties where they can do value add improvements and force appreciation. The Multifamily Market First things first; there is not a national multifamily market.  Every Metro Statistical Area, MSA, is its own market and must be underwritten separately.  Each market has its own economy which are influenced by geography, resources, area businesses and population. Population size Population size reflects potential number of renters.  While it is best to be in a larger market with mu

  • Seller Financing with Larry Goins - CREPN #191

    11/04/2019 Duration: 37min

    Seller financing is a viable strategy for real estate buyers and sellers. Since 1986, Larry Goins has been buying and selling real estate.  He has bought and sold residential, multifamily, commercial, developed subdivisions, mobile home parks and more.  For financing, he has utilized multiple methods including traditional banks, partners, hard money, lease options and seller financing. Generating Prospects - Sellers To generate multiple leads, requires a sophisticated marketing campaign utilizing postcards, Facebook, and pay per click Google Ads.  This is all in an effort to make the phone ring. When the phone rings, a screener will qualify the opportunity. If it sounds plausible, Larry makes a call and offers a full price cash offer.   The typical marketing campaign numbers look like this: Postcards mailed to identified suspects: 25,000 per month Inbound calls from postcards: 200 per week / 800 per month Average response: 3% Results: 5 - 20 deals per month Developing a Buyers List Developing a large buyers

  • Spendthrift Irrevocable Trust with Bruce Mack - CREPN #190

    04/04/2019 Duration: 41min

    A Spendthrift Irrevocable Trust might just be the the asset protection strategy you have been looking for.  It allows you to own nothing, but control everything. Bruce Mack is a real estate investor, Licensed Financial Advisor and student of how Trust work to provide maximum asset protection and tax benefit.  He utilizes Spendthrift Irrevocable Trust offered through Platinum Trust Group.  His primary clientele are Real Estate Investors. When Insurance is Not Enough Insurance is a recognized first line of defense for protecting your assets.  But when you read a policy and find the exclusions, you realize there is a potential gap in what could happen, and the coverage the policy provides.  Bruce has multiple examples of clients who found out the hard way that their insurance was not enough. And, because they had assets, the court award required that their assets be liquidated.  Here are a couple of examples: Client owned rental homes.  When their son was at fault in an ATV accident, they were forced to liquida

  • Multifamily Asset Management with Vinney Chopra - CREPN #189

    28/03/2019 Duration: 54min

    Multifamily Asset Management is the rarely talked about, but vitally important, required aspect of multifamily investing success.  It is key to realizing the profits investors expect. Vinney Chopra shares some of the critical steps successful operators take to  make their multifamily investment operate to achieve peak performance and maximum returns for their investors.   What is Multifamily Asset Management Multifamily Asset Management is not property management.  Asset managers manage and work with property managers. The asset manager is hired by and reports directly to the syndication principal / sponsor.  They are not responsible for interacting with investors. or Originally, Vinney sub contracted out the property management.  After some dissatisfaction, Vinney’s company, Moneil took the management in house. Asset Management Duties Asset managers engage weekly with property management to keep them focused on the immediate operational task at hand.  Additionally, they make certain progress is being made to

  • CREPN #188 - Multifamily Investor Lessons from 2 to 2400 Units with Ivan Barratt

    21/03/2019 Duration: 48min

    The lessons learned while growing from 2 to 2400 Multifamily Units are many.   Growing up, Ivan Barratt saw his father collect rent checks from renters and recognized that getting paid from renters was a great way to get paid. After college, Ivan started his career in real estate working for an Indianapolis area developer.  While working for this developer, he learned all facets of real estate development, and made a lot of money.  His real estate fortunes seemed certain. When the 2008 crash happened, everything stopped.  With the path to easy riches closed, Ivan had to find another way to create his real estate fortune.   Through the Wreckage When the dust settled, Ivan found himself several hundred thousands dollars in debt.  Instead of taking the easy way out, filing bankruptcy and walking away from his pile of debt, he committed to repay all his debt.   To survive the crash, Ivan and his family had to make some sacrifices.  Without the big paycheck, they had to reduce their living expenses. They turned th

  • CREPN #187 - Technology Disrupts Multifamily Property Management with Neal Bawa

    14/03/2019 Duration: 56min

    Technology is disrupting Multifamily Property Management, and the results are impressive.   Neal Bawa, founder of Grocapitus Investments and Multifamily U is a technologist by education, who came to real estate investing out of necessity.  It was when his boss elected to purchase a building rather than continue to pay rent, that Neal was forced to learn on the fly how to make the new property ready before their lease expired and penalties ensued. Like most of us, the lessons learned under pressure are permanent.  Having caught the bug for real estate, Neal first invested in single family homes, but soon realized the challenge to scale.   Then he found and invested in thirteen syndications as a passive investor. However, he was not getting the returns he expected. Realizing there was a vacancy problem that was preventing him and his fellow investors from receiving distributions, he asked the syndicator if he could market for prospective residents.  Soon, he developed a system that was generating qualified pros

  • CREPN#186 - Financial Freedom through Self Storage with Ross Stryker

    07/03/2019 Duration: 35min

    Financial Freedom is the end goal for every working American.  Some day, you hope to have enough to feel secure that you can live comfortably without the stress or worries or need to continue to work. Dr Ross Stryker realized that working as an orthodontist until he died was not the path to financial freedom.  The decision to go to a financial freedom seminar about real estate, changed his outlook forever. Wall Street vs Real Estate The American worker has been indoctrinated to regularly invest in the stock market for retirement.  Buy dollar cost averaging, starting aggressive, and as you reach the age of concern, dial back the risk to some municipal bonds that pay 3 to 4 percent.  Then when you retire, withdraw up to 4% and live happily ever after. If you study this model closely, you will come to the conclusion that this will not allow you to continue to live the lifestyle you are accustomed.  You need to consider an Alternative Investment, maybe cash flowing real estate. A Better Way Passive income is the

  • CREPN #185 - Multifamily Due Diligence for Class C Properties with Matt Hawley

    28/02/2019 Duration: 39min

    Multifamily Due Diligence for Class C property investors can be the difference between paying extra attention prior to the sale, or paying dearly for unplanned capital improvements after the purchase.   Matt Hawley with Multifamily Inspection Services, provides some insight to help investors avoid costly, unplanned expenses.   Multifamily Due Diligence The Due Diligence clock starts as soon as you have a signed Purchase and Sale Agreement.  Typically, the seller will agree to 20 to 30 days for you to inspect the building for its physical condition.  This is your chance to determine the condition of all systems, and determine what expenses you need to plan for or negotiate away prior to sale.  NEVER, NEVER, NEVER skip inspecting each and every unit. What to Look For When Walking Older Properties Value Add vs Capital Improvement Most Class C investors hunt for a property they can make improvements to that translate to increased value.  Management, rent increase, renovations, add dog park, RUBS, charge for stor

  • CREPN #184 - Syndication Profits from Multifamily Sale with Vinney Chopra

    21/02/2019 Duration: 52min

    Syndication Profits are proportionally the greatest when the property is sold.   Multifamily Syndicator, Vinney Chopra, takes us through a recent property sale, providing insight to investor earnings, including payment during operation and through the disposition. Preferred Return Most multifamily syndicators provide a level of preferred return to the investors from operating the property.  These proceeds are distributed either monthly or quarterly. Vinney pays his investors quarterly, providing a level payment for three quarters, with bonus returns paid after the fourth quarter. When you buy a value add property, you have to implement your value add plan in order to increase the value.  Renovations, rent increase, etc, are all examples of ways to increase the net operating income and the property value.   Syndication Profits When You Sell When investors invest their money into a syndication, they are informed of the exit strategy and a  window of time for when the property will likely sell. It is upon the sa

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