Commercial Real Estate Pro Network

J Darrin Gross I'd like to ask you, Ran Eliasaf, what is the BIGGEST RISK?   Ran Eliasaf   Our biggest risk is determining the value of the collateral we're lending on? It's never a scientific answer. You can get all the appraisals, you want third parties and all of your internal knowledge. But eventually, a value of an asset is only what somebody else would be willing to pay for it as a term at a certain point in time. So we spend a lot of time on the writing and diligence thing and trying to determine what's the value and then what's our LTV, what's our loan to value. And that's where we focus most of our engine, that's the biggest risk, because if you gave a loan and you find you're at 50%, LTV, and then you realize you're at 80 or 90, then then that's that's a big problem. That's a big risk. What we do to mitigate that risk, first of all, we lower their LTV. If you know two years ago, we learned that 65% LTV, now we're more around 54% LTV to we kind of focus on asset classes that are less volatile, like r

Today, my guest is Fernando Angelucci. In the past four years, Fernando has built a real estate portfolio of over $200 million and self storage assets across the country. And just a minute, we're going to speak with Fernando Angelucci about investing in self storage.

J Darrin Gross I'd like to ask you Fernando Angelucci, what is the BIGGEST RISK?   Fernando Angelucci   So I would answer that with actually there being three things that we look at in our business. So the first being compressed cap rates, the second being oversaturation of given markets, and the third being reconnaissance competition are basically competitors, they have unlimited capital. So let's let's dissect each one of those press cap rates, has been an issue in the storage space for the last 10 to 15 years. That's partially because of just the easy money policies that we've been in for last 10 years, and that capital needing a home that has yield, but then also the fact that self storage used to be kind of this ugly asset. And if you weren't getting a 15% cap rate, day one, you know, what were you doing, then all of a sudden fortune and Money Magazine start talking about it as an attractive alternative asset, and that cause this floodgate of institutional capital come in compressing all the cap rates. S

Today, my guest is Mason McDonald. Mason is a former hospital CEO turned full time land flipper that utilizes his profits to invest in commercial real estate. And in just a minute, we're going to speak with Mason about how you can profit from land flips.

I'd like to ask you Mason McDonald, what is the BIGGEST RISK?   Mason McDonald  34:58   Yeah, um, I expect my answer to be a little different than what people might expect. I mean, I was the CEO of a psychiatric hospital. So in terms of a risk management perspective, there's, you know, in terms of over regulation and high risk, there's about, that's about as high risk of an environment as you could ever imagine. But for me, the greatest risk that I have is, I fail at this entirely and have to go get a job again. So, you know, me being my own boss, and, you know, getting to live life on my own terms. And having financial and geographical freedom, the biggest risk for me is I fail, and I have to go get a job again, which is what 99% of the population already does, because the margins in this business where if I set my Buy Box criteria based on market data, which is what's available to everyone at 50% or less, I could liquidate and get all of my money back all of my investors money back and be able to walk away,

Today my guest is Henry Stimler.  Henry is the Executive Managing Director of global commercial real estate at the firm Newmark, whose team financed 4.4 billion in deals in 2022 alone. Henry's core focus is origination and brokerage in large multifamily debt and equity transactions. And in just a minute, we're going to speak with Henry about the impact of the current economic factors on the commercial real estate industry. And we'll drill down into multifamily housing.

J Darrin Gross I'd like to ask you, Henry Stimler, what is the BIGGEST RISK?   Henry Stimler   I think the biggest risk is not doing, I think more is lost by inactivity than activity. The biggest killer of deals is time, time and dalliance and not getting it done. So I'm a very big believer in that you have to jump in. Right, you have to be all the way in you can't be you can't be partially pregnant. And you have to have conviction in your decisions. And if you don't have conviction, that's the biggest risk. If you are Wofully. If you don't, if you want to buy it, if you don't know how you're going to run it. That's the biggest risk to me. So when I see clients who are unsure, who are not confident their decision, I see that as a red flag, I think you've got to make moves move quickly. That's the best way to mitigate risk. If you see a deal that you like them make sense. You got to move quickly, one to wrap it up to to get the right debt in place, rate, lock your debt, take that risk off the table and move qu

Today, my guest is Nick Prefontaine with Wicked Smart Real Estate and Common Goal. And Nick's an author, a trainer and investor. And in just a minute we're going to speak with Nick about how you can overcome the challenging times ahead.

J Darrin Gross I'd like to ask you Nick Prefontaine what is the BIGGEST RISK?   Nick Prefontaine   What is the biggest risk? So the biggest risk to me is not following that voice in the back of your head. Now I'd like to frame that in, in a few different ways if I can. So when I was in the hospital, that voice was no, they said, You're gonna make a full recovery. My parents were, that was their goal, you're gonna make a full recovery, I followed the voice that said, No, you're gonna run out, then all throughout my life, no matter what I'm doing, as a successful realtor, as a successful real estate investor. And then as I moved into being a coach, and a trainer with smart real estate coach, as well as still do deals, I've always had that voice in the back of my head, which has told me that I have to be speaking and sharing my story, and helping others that are going through a trauma life challenge or adversity and helping them get through to the other side. I think the biggest risk is not listening to that voi

Today, my guest is Todd Drouillard. Todd is the sector leader of the manufacturing and product development sector within the national architecture and engineering design firm H E D. And in just a minute, we are going to speak with Todd about how the pandemic has changed the supply chain.

J Darrin Gross I'd like to ask you, Todd Drouillard, what is the Biggest Risk?   Todd Drouillard   The biggest risks that we face, right, right now, and it's, it's nearly on every project both large and small, it's the the actual long lead times to get either equipment or the materials. And what that comes down to is that, you know, it's really risk to both cost and to, to, to the schedule, you know, it's been, the biggest thing is, is the, so what happens is, you know, a project gets started gets planned, you know, you know, the architect has engaged, we're doing the work, the engineering has been done, the project goes out for, for, for, for, for a bid. And long Behold, some of the equipment that's been best supplied for the project, it could be things like roofing, insulation, roof deck, mechanical, electrical equipment here, and we find out that it that it's a long lead time, and it's beyond the project time. So you'll never get at level one was just a accident, you know, in the amount of time that you th

Today my guests are Shawn Buchheit is the chief operating officer for Fountain Life, and Gloria Caulfield. Gloria is the Vice President of Strategic Alliances for Tavistock Development Company. And in just a minute, we're going to speak with Shawn and Gloria, about how Master Plan communities can lead to healthier living.

J Darrin Gross I'd like to ask you, Sean Buchheit and Gloria Caulfield, what is the Biggest Risk?   Shawn Buchheit   Well, for us, it's overextending, you've heard all the wonderful the ecosystem that's there at Lake Nona and Tavistock there's so many incredible opportunities to do exciting new things. For us, it's really important to us to remain focused on our core business, and while we are who we are, and prioritize all all the amazing opportunities that we have part of being part of an ecosystem like that, so just again, overextending for us and it would be our business, our biggest risk.    J Darrin Gross   Gloria, anything from you, or,   Gloria Caulfield   Yeah, I mean, I think our biggest risk is not being true to our mission. I mean, in, you know, we, we have this whole mission and vision statement that I mentioned earlier, to create the ideal place to inspire human potential through innovative collaboration. And when you have a mission statement like that, I mean, it's, it's a pretty lofty goal. An

Today my guest is Adam Sharif. Adam is the founder at nxt CRE an open bank FinTech supporting the CRE market.   nxt CRE partners with lenders to enable them to keep a line of sight on their borrowers activities, who are paying off a loan and seeking to enter a 1031 exchange. And in just a minute, we're going to speak with Adam about how FinTech can help you find 1031 buyers for your property.

J Darrin Gross I'd like to ask you, and I'm sure what is the biggest risk?   Adam Sharif  for us is the biggest risk for anyone else. And that is uncertainties. Okay, no one no uncertainties. It's the opposite of having a line of sight, right? There's no one, no one can sit there and tell you exactly what's going to happen. Everyone can guess. So that's one of them. But I liked it recently. One, this question was asked of Warren Buffett. And and I love his answer. Basically, he said political risks international political risks, like wars, and Ukraine, and such, and, and maybe the next pandemic, those are what he worries about the most, those are the things that he can't control. Those are things that that could create even greater uncertainty all over the place. So I'm gonna go with that answer. I like, personally, anyway. And when he when he gave that answer, I thought it was fantastic. We can we can talk about the micro, the, you know, the interest rates, and, and, you know, all kinds of stuff, inflation a

Today, my guest is Chris Larsen. Chris is the founder and principal of Next Level Income he has been investing in and managing real estate for over 20 years. While still in college. He bought his first rental at the age of 21. And from there Chris expanded into development, private lending, buying distressed debt, as well as commercial offices and ultimately syndicating commercial properties. He began syndicating deals in 2016 and has been actively involved in over 1 billion real estate acquisitions. And Chris is passionate about helping business investors become financially independent. And in just a minute, we are going to speak with Chris about why and how he invest in cash flowing businesses like car washes, in addition to real estate.   

J. Darrin Gross I like to ask you, Chris Larsen, what is the Biggest Risk?   Chris Larsen   Yeah, so I think everybody's talking right now out there, and about interest rates and cash flows. And you can mitigate those, you can lock in interest rates, you can set money, you can increase your reserves that you have out there. And those those are all good things. For sure. But I think the biggest risks that that we face, and we kind of talked about this in an indirect manner. It's people, it's people, you know, do you have the right people on the team? If you're an investor? Are you investing with the right people? Are you investing with somebody who's just a sole operator without partners? What if something happens to them? Obviously, I'm acutely aware of that I lost my father at age five, I lost my best friend in college at the age of 18. So I know that, you know that there's, there's things you need to put into play. So things like life insurance, estate planning, are probably more apparent to me when it come

Today, my guest is Franco Perez, Franco grew up in a family that experienced unstable housing. Today, Franco is on a mission to create affordable housing in Silicon Valley. And in just a minute, we're going to speak with Franco about how mobile homes are the easy answer to the housing crisis.

J Darrin Gross I'd like to ask you, Franco Perez, what is the Biggest Risk?   Franco Perez   I think, for this conversation is one of the biggest things is really the advocacy and you mentioned politics. You know, what one of the big risks are people not understanding the value of these mobile home parks, and them advocating for these to be closed down or redeveloped into rentals into rental property? You know, these. That's what I'm fighting for right now with our conversation on the Congress meeting. And that sort of thing is protecting these parks, making sure we keep affordable housing available. And that's one of the big risks that I see because a quick government change could really change the landscape of these opportunities for so many people. And we need to protect these mobile home parks and create guidelines and policies to make sure that there's always going to be opportunities and social mobility for the middle class to be able to, to to own assets and stuff like that as well. So that's, to me, I

Today, my guest is Mike Kaeding. Mike is the CEO of Norhart, where they design build and rent apartments. Norhart is transforming the way apartments are built and managed by incorporating technologies and efficiencies that have revolutionized other industries. And in just a minute, we're going to speak with Mike about how Norhart is disrupting the housing crisis.