Commercial Real Estate Pro Network

Today, my guest is DJ McClure. DJ McClure is the VP of sales and business development at National Flood Experts driving strategic growth through partnerships and tailored cost saving solutions. And in just a minute, we're going to speak with DJ McClure about innovative flood insurance solutions.

J Darrin Gross: I'd like to ask you, DJ McClure. What is the BIGGEST RISK?   DJ McClure: I think right now, one of the BIGGEST RISK that I see among many is the number of properties that are, you know, approaching a debt restructure, you know, there's a lot of short term bridge that for a lot of properties that's coming due. And so one or two things are going to happen, obviously, they're going to be able to, if they're able to put together the funds to structure a refinance, you know, it's likely going to be into a different loan structure or excuse me a loan program, predominantly, your Fannie and Freddie type programs being, you know, the more fixed set options in a lot of cases. And this has a dramatic increase on the flood insurance coverage requirements. And so you could take a property that's only paying maybe a few 1000, a building, and the new requirements, you know, could add and more than double or triple the cost of what they're having to pay per building. And this isn't always something that some

Today, my guest is Joey Klein. Joey is the host of Tech Talk podcast or the Tech Talk podcast. Joey is a seasoned commercial real estate broker focusing on representation of corporate tenants across a range of industries. based in Atlanta, he is deeply involved in urban focused developments, and transit expansion advocacy, particularly in Georgia and the Southeast.

J Darrin Gross:  I'd like to ask you, Joey Klein, what is the biggest risk?    Joe Kline: Sure. I don't have an insurance related answer. So that's, that's good. I have to say, I do think that your industry is a very fascinating one. And I think if we had more time, I'd love to throw some of these back at you. Because insurance is a very rapidly changing industry over the past couple of years as well. I look, I think that any Anyone, anyone who makes their money solely via Commission has to constantly be thinking about risk. And if you're not, you probably won't be doing it for very long. So it is something that I think about a lot, sometimes too much. And Atlanta is as well as the commercial real estate in general, right? Unless you're in a really small tertiary market. Valdosta, Georgia, right, you kind of have to be a jack of all trades, okay, there's not enough of one food group to really, you know, feed you. In a market like Atlanta, you really have to specialize. Okay. What I've tried to do is within my

Today, my guest is Jeremy Friedman. Jeremy is with Stoic Equity Partners. And they have a portfolio of 10 Self Storage Flex Industrial assets in the southeast, totaling $48.8 million assets under management and 500,000 square feet located in Georgia, Mississippi, Florida, Alabama, and Arkansas. And in just a minute, we're going to speak with Jeremy Friedman about Why Invest in Flex Industrial Real Estate. 

J Darrin Gross  0:00   And I'd like to ask you, Jeremy Friedman, what is the BIGGEST RISK?    Jeremy Friedman  0:05   But as we discussed before the call, that's actually the one largest risk item that we that does keep us up at night and that we're working diligently on at the moment is our insurance. And I think it's so this is not to be clear to your listeners, you did not prompt me for that at all this is this is our biggest risk at the moment, as we see it. We being located on the coast, the Gulf Coast of Alabama, and we have several coastal properties in Pensacola, Florida, Baldwin County, Alabama, we are being hit with tremendous increases in all of our property insurance, especially in the wind policies. And they're becoming increasingly hard to get. And to give you a couple and give your listeners a couple of examples we have we have a property in Pensacola, Florida and we put it under contract the insurance was in this was under contract and 2022. The insurance policy was $27,000 a year. By the time

Today, my guest is Christian Gore. Christian is the founder of G1 Capital Partners. And in this industry expert who have orchestrated real estate transactions worth approximately 9.5 billion across the across the United States. And in just a minute, we're going to speak with Christian Gore about leveraging AI and Machine Learning or Data Aggregation to make informed decisions about where and why to invest.

J Darrin Gross  I'd like to ask you, Christian Gore, what is the BIGGEST RISK?   Christian Gore  That's a great question. I would say, generally speaking, I would say geo geo political risk, that, that can significantly kind of affect what the Fed does or doesn't do. Yeah, we've, there's a lot of things going on overseas. I know we were fortunate enough not to kind of have to, you know, be involved with it daily. But there's there's significant geopolitical risks in our view going on right now. That, you know, who knows what, what what can happen, but there's a direct correlation with the Fed and kind of seeing what what they have the ability to do negatively to our business. So yeah, that would be off the cuff that that would be my, my biggest fear or risk looking forward and really in the near term in the next 12 months, in my opinion.  

Today, my guest is Dan Thompson. Dan is a seasoned financial advisor and investor. And in just a minute, we're going to speak with Dan Thompson about Tax Advantaged Investing.

J Darrin Gross I'd like to ask you, Dan Thompson, what is the BIGGEST RISK?   Dan Thompson   I think the BIGGEST RISK is to sit idle and do nothing to be so paranoid of risk that you take no risk. And there are some very predictable ways to get your money working and invested. And still keep the risk down. But it just kills me sometimes when I talked to somebody felt, in fact, they just talked to a potential client just yesterday, who's sitting with $1.7 million in a 4% CD. And just like said, That, to me is more risky than putting the money out at, quote, unquote, risk and having it grow for you. Because if you're not at least going to keep up with inflation, you're going backwards every single year.  

Today, my guest is Joel Friedland. Joel has been in the industrial real estate world for over 40 years. He buys industrial properties, all cash and no mortgage. And in just a minute, we're going to speak with Joel Friedland, about syndication of industrial properties in the Chicago area.

J Darrin Gross I'd like to ask you, Joel Friedland, what is the BIGGEST RISK?   Joel Friedland   I'm afraid I can't give you just one. Because there are actually multiple risks. I've been doing this for 40 years, and I can tell you exactly what I struggle with with risk. Number one risk debt. If you have debt and anything goes wrong, you are screwed. So that's why we do our deals, debt free, no mortgage, that's number one. Number two in industrial, vacancy.  When a building's vacant, and it's a single tenant building on a net lease when the tenant leaves. It's either 100% vacant or it's 100%. Leased. So vacancy vacancy vacancy, it's it hurts us so badly. We need to keep our buildings occupied. The third one is your area, which is risks that have to do with losses, trucks hitting the sidewall of a building, which happened to us two weeks ago. Flooding roofs that a tree falls on, you know, those insurable risks. Those are really big for us. So Basically, it's almost as if we are a homeowner. And we have all the

Today my guest is Ben Spiegel.  Ben Spiegel is a successful investment manager with a decade long track record deploying over 300 million into special situations across diverse asset classes. And in just a minute, we're going to speak with Ben Spiegel about Syndication of Luxury RV Parks in southern Alabama and Mississippi.

J Darrin Gross  I'd like to ask you, Ben Spiegel, what is the BIGGEST RISK?   Ben Spiegel   So, land, like I said, we were talking on our economy. When we started our conversation before the podcast began, landlords are Sue land that landlords sued 25 times more than the next business than the next highest sued business. So we're already in a very elevated risk, risk type of business. So I think the major form of risk obviously, when you have ambulance chasers out there looking to profit off of almost any opportunity they can. And so it depends really, it for example, I own a multifamily in Bridgeport, Connecticut, which is, you know, about an hour away from me, and I found a tenant was putting marbles in the lobby, to try to encourage a slip and fall because she's unhappy about her current lease situation. I mean, I've really, I've seen it all. And so but what I went, I think what it comes down to protecting yourself is, when I first started and to give advice, when I first started in this business, I'm just

Today, my guest is Maxwell Wu. Maxwell is the founder of Fulcrum Lending a direct balance sheet lender for multifamily properties nationwide. And in just a minute we're going to speak with Maxwell about nationwide multifamily lending and credit investing.

J Darrin Gross I'd like to ask you, Maxwell, Wu, what is the BIGGEST RISK?   Maxwell Wu   I think the BIGGEST RISK, you know, right now in this market It is price fluctuation, right? investors do not like uncertainty. It's almost like a natural thing that the universe wants some order there. And we don't have a threshold to go off of a baseline they go off of it's very hard to see what the future looks like. What do all those words mean? Right? You know, again, you mentioned insurance. And I think a lot of investors, and I'm sure a lot of your listeners have noticed insurance costs skyrocket 3050 100%, of what it was previously. And that's for a multitude of reasons that, you know, we can drone on about, and maybe that's something you're able to add in here. But besides in middle class materials, labor, unexpected, you know, natural events, natural disasters happening. These are all things where, you know, folks didn't think there'd be such a destructive hailstorm in Texas, right. You know, these are things t

Today my guest is Matthew BrodnIk. Matthew is the Chief Investment Officer for EQT Exeter's North American industrial real estate platform. EQT Exeter, is the real estate division of EQT, a purpose driven global investment firm with 244 billion of total assets under management. And in just a minute, we're going to speak with Matthew Brodnik about the current North American industrial real estate space.

J Darrin Gross  I'd like to ask you, Matt Brodnik, what is the BIGGEST RISK?   Matt Brodnik   I mean, I think I mean, I've been harping on tenant demand all this time. And as I mentioned, you know, tenant demand hasn't disappeared, it's, it's still there. I mean, you know, we talked about demand, kind of reverting to the mean. And right now, I'd say demand is fallen below the mean, a little bit, which is expected. I mean, tenants lease a lot of space and 21 and 22 leads to more than it turns out, they may need now, but they, they're not giving it back, they still still need it. And I think what happens in recession, which we haven't seen, we're not in a recession right now. And there's talk right now with the Fed that, that this whole idea of a soft landing, you know, employments near 100% Here, you know, we still have economic strength and growth, and as long as we do tenants are going to need space. And I think the biggest risk for us right now is is is recession, and, you know, tenants actually giving spac

Today, my guest is Frank Xia. Frank is an ex engineering director in tech startup where he specialized in pricing and decision making. He is passionate about AI and investing in real estate and alternative assets. And in just a minute, we're going to speak with Frank Xia about deal underwriting and raising capital for B and C Class multifamily deals in Dallas, Texas. 

J Darrin Gross  I'd like to ask you, Frank Xia, what is the BIGGEST RISK?   Frank Xia   I think the biggest risk for me is, I think, interest rate right now, and how I choose to, I don't think I can transfer that. But I think I can minimize it number before for a few for a few strategy. Number one is I just invest less deals, because the less you invest, the less risk you expose, right. But if you don't invest anything, then you have no income. That's not an option. So you have to participate in debate, but you can participate very strategically. So that's number one. Number two is you can use a fixed rate mortgage to alleviate your risk, right. Instead of few years back, everybody is using floating interest rate with two years of recap. So we learned the lesson, we're going to be more conservative using a fixed rate mortgage. So that's number two. Number three is that we are looking for a cheaper price. We're giving us more buffer so that we can tolerate this kind of waste. So these are the three things we'r