Podcast appearances and mentions of Brian Burke

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Best podcasts about Brian Burke

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Latest podcast episodes about Brian Burke

Global Investors: Foreign Investing In US Real Estate with Charles Carillo
GI164: The Hands-Off Investor; Passive Real Estate Investing with Brian Burke

Global Investors: Foreign Investing In US Real Estate with Charles Carillo

Play Episode Listen Later Aug 11, 2022 20:58


Since 1989, Brian Burke has acquired over 800 million dollars' worth of real estate; including over 4,000 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. He has subdivided land, built homes, and constructed self-storage, but really prefers to reposition existing multifamily properties.   Learn More About Brian Here: Praxis Capital - https://praxcap.com/ . Connect with the Global Investors Show, Charles Carillo and Harborside Partners: ◾ Setup a FREE 15 Minute Strategy Call with Charles: http://ScheduleCharles.com ◾ FREE Passive Investing Guide: http://www.HSPguide.com ◾ Join Our Weekly Email Newsletter: http://www.HSPsignup.com ◾ Passively Invest in Real Estate: http://www.InvestHSP.com ◾ Global Investors Web Page: http://GlobalInvestorsPodcast.com/

The Bob McCown Podcast
BRIAN BURKE on the Pittsburgh Penguins

The Bob McCown Podcast

Play Episode Listen Later Aug 2, 2022 52:02 Very Popular


President of hockey operations for the Pittsburgh Penguins and friend of the podcast, Brian Burke takes some time out of his summer to talk with Bob and John. On todays show, the three discuss the Penguins off-season and the moves they have made so far. Bob and John pick Brian's brain about the salary cap and how to stay under it. We discuss the idea of teams "trading cap space" and how the hard cap influences trades and free agent signings, and Brian shares his opinion on handing out incentives during contract negotiations. We also get into the deal that brought Jeff Petry to Pittsburgh as Brian talks about the process it took to get him before moving on to his philosophy when it comes to building a team, his relationship with the Pens current GM Ron Hextall and the nuances of working with a former player in the front office. Before we go we talk to Brian about the shelf-life of NHL coaches and his time in Calgary, getting his opinion on the growing discourse aboutAmerican players not wanting to play for a Canadian organization.  See omnystudio.com/listener for privacy information.

The Real Estate Syndication Show
WS1378: Winning Off-Market Deals | #Highlights

The Real Estate Syndication Show

Play Episode Listen Later Jul 30, 2022 12:30


What is there to do if you can't find opportunities out there? What goes into buying deals off-market? In today's #Highlights episode, we look back at our conversations with real estate entrepreneurs Brian Burke and Darin Garmin, and they answer these questions.Brian starts by exploring the nature of off-market deals and talks about the conundrum of establishing oneself in the market. Meanwhile, Darin sheds light on communicating and building relationships with building owners, which is the key piece of off-market purchases. Tune in now and find out how you can find that elusive off-market deal today!

Working Capital The Real Estate Podcast
Step by Step: Raising Money for Real Estate with Dave Dubeau | EP113

Working Capital The Real Estate Podcast

Play Episode Listen Later Jul 21, 2022 32:21


Dave Dubeau is a Real Estate Entrepreneur, Best-Selling Author, Speaker and Investor Attraction Expert based in Beautiful British Columbia, Canada.  He began his real estate investing career in 2003 doing 18 deals in 18 months.  He later switched his focus to client-first rent to own deals, and nowadays he invests in multi-family (apartment building) properties.  For the last several years Dave has been a leading authority on helping mom and pop real estate investors to find money partners and raise capital. Using his proprietary 5 Step Money Partner Formula™, Dave helps his real estate entrepreneur clients to grow their portfolios significantly and in record time by attracting investors (instead of chasing after them).    In this episode we talked about: Dave's Bio & Background Real Estate Business Evolution Legal Aspect of Raising Capital Three Biggest Mistakes Real Investors Make when Raising Capital Lineup Resources   Useful links: How to raise capital 101 show https://www.raisecapital101show.com/ https://www.linkedin.com/in/davedubeau/?originalSubdomain=ca Transcriptions: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name's Jessica gala, and you're listening to working capital the real estate podcast. I'm happy to introduce a returning guest to the show. Dave, Dubo a fellow Canadian and Dave was on the, a working capital podcast episode 1 0 3.   If you want to see the older episode we did about raising capital. Dave is a podcast host and creator of the money partner formula. He and his team work with mom and pop real estate investors providing done for you marketing services to help them raise capital. He's a best-selling author and speaker based in British Columbia, Canada. He began his real estate investing career in 2003, doing 18 deals in 18 months. We talked about that last time and he invest passively in multifamily properties. Dave, welcome back,   Dave (1m 6s): Jesse. Great to be here. Thanks for having me, bud.   Jesse (1m 8s): Yeah, it was a pleasure to have you back, you know, nothing's changed in the last two years, so we won't have much to talk about, but yeah, I mean, I, I thought it would be, it'd be good to, you know, we're doing another, I guess, multi or a podcast swap here and always, always great to speak with you. So I guess first how's everything going out in Western Canada? How have you been, have you been fairing over the last a year, year and a half?   Dave (1m 38s): Well, you tell, I tell you what, if people are watching this video, they can see it's been hair back for me a way back too far back. No, it's good. Good life is good. Can't complain Jesse. It's it's always good in beautiful British Columbia.   Jesse (1m 52s): Absolutely. Well, I mean, it's, it's also nice to speak to a fellow Canadian. We can talk about, you know, Canadian real estate, but it does, you know, pretty much pairs up with most north American real estate. A lot of the similarities, even when raising capital and even some of the legal nuances, but we're not giving accounting or legal advice, but I felt   Dave (2m 12s): No.   Jesse (2m 14s): So maybe a good place to start would be for listeners that haven't listened to the prior episode, which I believe I mentioned one episode 1 0 3, for those interested, you could give listeners a little bit of a background and you know, how you got started in real estate and where you're at today.   Dave (2m 32s): Sure. Well, thanks Jesse. So actually kind of grew up around real estate. My family home was one unit in a sixplex that my grandfather and father built a then when my parents split up, I was living with my mom. She was a real estate investor as well. She was a full-time school administrator and she still managed to build up a portfolio of about 50 rental units while doing that and taking care of her snot-nosed kid. Here's truly, and, but you know, like a typical teenager, I didn't pay much attention to it.   I didn't really get involved. And then I went to school, went to university, started traveling around and lived overseas for 13, almost 14 years. And actually my first little dabble into real estate investing was in San Jose, Costa Rica of all places. And what I did there, I guess we would call kind of like a couple of little pre-foreclosure deals. I was kind of a passive partner there. Just kind of put the money up for those deals that worked out pretty well. And then I, I moved my Costa Rican family to Canada, back to Canada, to BC and had to start all over again from scratch.   Hadn't been able to sell my business or I didn't have much money had been gone for so long. I had zero credit had been self-employed for so long. I was pretty much unemployable. So there I was in a brand new city wondering what the heck am I going to do? And you're too young to remember these things, Jesse, but there used to be these things called late night infomercials. And it'd be like this, you'd be up with insomnia late at night. Wondering how the hell are you going to make a living? And then you'd see this guy, come on TV and go. You too can get rich in real estate with little or no money down.   I said, perfect. That's what I got little or no money. So I said away from the course, it was some American guru and a, I got a whole bunch of at that time, binders and CDs, maybe a VHS cassette or two, I don't know, but a bunch of stuff and put this all all to work. And that's when I started doing creative real estate investing deals around 2003 in the smallest city of Kamloops. Did those 18 deals in 18 months? Sounds impressive. But they aren't where they were. They weren't all impressive deals, Jesse, by any stretch. Some of them were crappy, little mobile homes and mobile home parks and stuff like that, but they were all creative type deals.   So that's, that's how I got started.   Jesse (4m 50s): I can just see the infomercial. Aren't you tired of not making money and your job   Dave (4m 55s): There. Might've been bikini's and Lambo. I   Jesse (4m 57s): Was going to say   Dave (4m 58s): A red   Jesse (4m 58s): Furrion and five blondes on the arms. You can be rich like me.   Dave (5m 2s): Yeah. Something like that. Yeah. But it did. It did the stuff did work.   Jesse (5m 6s): Yeah. So we talked a little bit about this last time kind of starting, starting out the 18 deals that you did and you know, you'd be in the you're in this industry long enough, you know, that 18 deals can be amazing. 18 deals can be an absolute nightmare. It could be a reason to stay in or to leave the industry. Yeah.   Dave (5m 23s): Well, I left for a while. So that might tell you this.   Jesse (5m 27s): Yeah, maybe, maybe it was those 18, but I, I guess the, the background and we touched a little bit on this last time, the background was, was somewhat related to real estate. You had individuals, you know, obviously close to you that were, that showed that it's a, it's a viable place to, to build a career. And today, you know, a lot of the focus that you do have is raising capital for real estate. And yeah, I think what would be great for our listeners is to talk a little bit about how business has evolved or your investing has evolved from way back then to kind of having a niche.   I love talking to a Canadian, I can say niche instead of niche. I taught, you know, how it evolved and how you've kind of carved out a niche where your focus now has been on the multi-family side and raising capital. What did that evolution look like?   Dave (6m 18s): Yeah, good question. So I did those creative deals took a few years off, jumped back in around oh nine, 10 give or take. And I'm focused on single family homes at that point. And I was doing a different strategy. So I actually bought them. So I had to come up with down payments and all that kind of stuff after doing a couple hundred, my own steam ran out of cash, run out of credit. That's when I started trying to figure out this whole OPM other people's money idea failed miserably at the beginning.   Absolutely. Was it painful? Just even think back on that, but that's how I got started with the whole thing and, you know, talk about making almost every mistake in the book. I, I definitely did that. So yeah, I've learned, I learned a lot of things that you shouldn't be doing when you're, when you're starting to raise capital. And then that kind of transition did that for a couple of years. And then I realized it kind of came to the realization Jesse, that I don't really enjoy dealing with tenants or toilets. I'm about as handy as a foot. You know, I don't like hearing people whine about the problem.   So I decided maybe it'd be better for me to be more of a passive partner and invest passively in other people's multi-family deals. I had a good friend that was involved in multi-family. So that's how I got started there.   Jesse (7m 35s): And on the multifamily side, we're the first properties that you started to invest? Was it a more formalized thing where it was kind of roles and responsibilities were clear? Was it, or was it something that was, you know, shooting from the hip?   Dave (7m 50s): No, it was quite a formalized situation. So there, how many of us were there seven of us involved in that deal? Myself and my business partner and five investor partners in, in that particular deal. And that was a 54 unit building actually in Ontario.   Jesse (8m 9s): So on the raising capital side. And, and again, we'll, we'll speak fairly broadly here because the, the actual intricacies of, of the legal aspect of raising money are very similar, you know, whether it's the, the OSC, Ontario securities and exchange, whether you're out in BC or whether you're in the states. So, you know, you don't just go into real estate and then kind of figure out how to create these structures. So when you first moved to that, was there somebody in this group of seven that introduced you to this idea of, of raising in a structure that what we see today in Canada, a lot of times it's limited partnerships with an LP, with a number of LPs and a general partner or sponsor very similar in the states with the exception of them having LLCs limited liability companies, which we don't have up here.   Yeah. Can you talk a little bit about, you know, where, where you got that knowledge and, and how that, you know, transitioned?   Dave (9m 7s): Yeah, for sure. So the, fortunately for me, the gentlemen that I was working with, my partner on that deal had a lot of experience in multifamily. Also had a lot of experience working with other investors and he had a very good legal team. So we had everything structured properly, right from the get-go. I didn't really have to figure much of that stuff out. So I got to focus on my strengths, which were the, you know, the marketing side of things and the investor relations side of things.   Jesse (9m 35s): So we talked a little bit before the show, you've got three of the biggest mistakes that you see real estate investors re make when they're raising capital. Maybe you could speak to, to a few of those, a few of those mistakes for our listeners benefit.   Dave (9m 52s): All right, Jesse, well, these are all big mistakes that I made. This is why I'm generalizing, I think a lot. And I see a lot of people making these mistakes. The biggest one is this, this guru talk that I hear all the time, even today, which is, Hey, just find a good deal. If you find a good deal, the money will find you don't worry about. Right. So I bought into that hogwash early on, and that's how I lost a really good deal, but, you know, laziness as well for, and my philosophy has completely changed.   So now my philosophy is if you do anything, get your investor ducks in a row first and then go looking for deals, or at least do both at the same time. Right? You don't want to have one or the other. So in a perfect world for me, I would have my investors lined up and then I'd go make offers on properties. Cause then you've got so much of our confidence. You've got your mojo, you're ready to rock and roll, right? And, and you can go in, you can negotiate harder. You can have better positioning.   You can close faster because you've got the money to back you up. So chicken and the egg, which comes first, the money or the deal, I'd say the money comes first.   Jesse (11m 5s): So you're, you're cooking with oil at that point when you got the investors. So I, I can hear listeners saying, you know, lined up, what is lined up mean to you? And maybe just as a, just a caveat there, oftentimes we hear of getting a partial commitments, full commitments. Are you having people sign things? W w w what does that look like to you?   Dave (11m 27s): For me that looks like getting people to sign off, at least on an expression of interest indicating how much they're willing to invest and within what timeframe. Right? So it's not a legally binding agreement. However, anytime you get somebody to sign off on something, but they're John Hancock on a document it's so much more powerful than just a verbal commitment, right? Like, like the joke says verbal agreements worth the papers written on kind of thing. So if you get them to mark it down, that goes a long way.   And then the other thing I had to learn the hard way, I don't know if you've ever found this, Jessie not everybody's ready to pull the trigger when the rubber hits the road. So lineup more capital, more investors than you think you need. And I'd say at least a 50% margin there at least a hundred percent would be the better, because that way, when the smoke clears, then you're, you're going to be safe.   Jesse (12m 22s): If you're in a situation where you are, you're pushing money away from the deal. I think you're in a good spot. So   Dave (12m 28s): Beautiful spot. Yeah.   Jesse (12m 30s): And, and we were, you know, on our last raise, we, we did have a situation where we, we needed to make room and, and it's because we followed a bad ideology that it it's listen at the end of the day. Things happen, even if it's completely in good faith. And, you know, somebody, something happens in there with their family. Something happens with their career. You know, when I said, I was going to give you $150,000, four months ago, what that looks like today, a hundred   Dave (12m 57s): Percent. That was before I lost my job. Right?   Jesse (12m 60s): Yeah. Well, you know, it's like, you know, if it happened two years ago, a year later, you know, that was before there was a global pandemic, right? Like you can't, you can't control those things, but it's a good rule of thumb. So one of the challenges I find with people that are raised in capitals, there's this question, especially if they start once, you know, you've raised for your first dealer, second deal is this idea that you're raising for asset specific raises. So for instance, you have a property, you identify the property route there, then kind of a rolling fund.   So the challenge I find with that is you kind of, you really have to make sure everything's set up and then once a deal is there and you kind of, we're all running to get everything put together. So on that end, I think that's probably why you have this commitment that even though it's non-binding for you, is it something that it at least psychologically gets them connected to the deal?   Dave (13m 53s): Oh, a hundred percent. Get some connected, not necessarily to the ideal, but to ideal with me. Right? So there, at the end of the day, Jesse, when your investors are investing with you, a huge part of what they're investing in is, is Jessie. It's not just the deal, it's the team that's putting the deal together, right? So it's, it's that trust that's coming to the table. So that's my goal for, for our clients is to get them a number of investors waiting in the wings, so to speak kind of their investor ducks in a row, people, people that have signed off, not on necessarily on any specific deal, but on the idea of what the kind of deals are that they're doing.   Right. Because, you know, in your case, you're focusing on multi-family properties, are our clients have different, different focuses. Some of them do, multi-family some of the new burrs, single family flips, whatever it is, but their investors are signing on to that kind of deal.   Jesse (14m 51s): Yeah. I think it was had Brian Burke on the show a bout a year ago. And he called it the partnership structure. It's a trust vehicle, right. You're Dave Jibo or Jesse for golly, you know, there's, there's no investors that come in, if there's a lack of trust for the sponsor of the dealer or the team.   Dave (15m 7s): No. Like, and trust man got out of those three and in place for sure.   Jesse (15m 11s): No, like, and trust. Okay. So Dave, what was that? That was number one or the,   Dave (15m 15s): Yeah, we're having so fun. It's hard to keep track of what's going on here. So yeah, that's one of the big mistakes. The other one, again, that I made, it kind of goes in tied hand in hand with that, you know, you got to deal now, you got to raise the money for it. And that is just rushing in cold, hitting people up for cash. And, and this just brings back a nightmare for me, that that's exactly where I was at. I had this deal, it was a single family home, but you know, I need to raise whatever 85 grand, something like that for the deal.   But I only had like 14 days to remove the subject. So I had to get my you-know-what and gear pretty quickly. And that just brings a whole new sense of urgency, but also desperation. Right. And I don't come from a strong sales background. Most people don't, it's very, very few people that come from a sales background and can do the old Wolf of wall street thing and pick up the phone and start dialing for dollars. Not very many regular human beings can do that. Well. Okay. DiCaprio made it look like a lot of fun on the movie, but in real life, it's these by experiences, nowhere, nothing like that.   Yeah. So I tried that, I made picking up the phone dialing for dollars, doing those creepy networky type things, like turning every conversation into a real estate conversation, 32nd elevator pitches or commercials or whatever you want to call them. Right. All of that kind of stuff. In my opinion, just kind of smacks of desperation. Right. And it, and it's back to that whole thing. So I've tried all of this stuff and I had a deal on the go, but the challenge is you're coming from a position of weakness, right?   You need the money quickly and no matter how good that deal is, unless you're amazingly gifted actor, that desperation is going to ooze out of you. It's going to, it's just going to, they're going to smell it on you. I think in sales, they call that commission breadth, right? You just, you desperately need that sale. And no matter how good the deal is, the other person is going to be turned off by it. So that's, that's a big challenge. I see, you know, people are trying to raise money for a deal.   They're calling up folks they haven't seen or heard of for years. And the first thing, you know, they're pitching them on a deal. It almost, I don't know if ever had anybody hit you up for a network marketing type thing or an MLM type thing, Jesse, he never had that experience.   Jesse (17m 42s): Absolutely.   Dave (17m 42s): Doesn't it isn't just like it's cringy, right. It just a hundred   Jesse (17m 46s): Percent. But   Dave (17m 46s): Yeah. So we don't want to be in that, in that boat. So don't just, you know, I highly recommend you warm people up first before you start pitching your deal. So when we're working with clients, we have a whole process for this. We call it the warm-up campaign. Once we target our specific group of potential investors, we don't go in with, Hey, I got deals. If we got dough, no, the first step is, Hey, it stayed. Chances are, it's been a while since we've seen each other or connected, just wanted to reach out, say, hi, see how you're doing.   Let you know a little bit about what I've been up to. And then do a quick little recap of what's been going on in the last 3, 4, 5 years. You yourself, more the personal side, right? Not talking about real estate, not talking about markets, not talking, not trying to NLP anybody into investigating, just having a legitimate reconnection. So the way we do this with our clients, we'll do a three step email campaign, drip, drip, drip, like over a period of a week or 10 days. And the whole goal is just to get some movement, get some, some interaction, get people kind of going back and forth with you a little bit there because there is definitely capital in those connections.   Plus now it sets the stage for all of the marketing. That's going to come down the pipeline.   Jesse (19m 2s): So last time we were speaking you, you talked about kind of doing an audit on your phone. I believe, you know, looking for, you know, different or your contacts on your phone. I found that when I first started raising capital, it was, you know, your, your student network, you know, people that you knew through work there. Like when you really start to think about it, you do have tentacles that go into a lot of different areas. And it's just about organizing those. Has that changed at all for you? Or is it   Dave (19m 31s): No, we still do that process. So basically we, we want to create a list, a focus group of somewhere between one and 200 people, a hundred to 200 people that we want to laser focus in on to get started with Jesse. So what we do with our clients is we'll do a data dump. We'll take all of their phone contacts, their email contacts, their social media contacts, get them all into one place, sift sort, merge, purge, deduplicate duplicate, get it all cleaned up. And then you're probably going to start with a list of, I don't know, a thousand or 1500 people typically, or maybe even more.   And then the job is you go through that list and quickly whittle it down to a couple of hundred people that you actually do have a preexisting relationship with. Right? So these are people that have you bumped into them in the street. They'd know, you you'd know them. You could have a conversation, you know, at least that's, that's what we're looking for. Genuine connections. So that's, that's what we do with our   Jesse (20m 26s): Client. They do a stop and chat.   Dave (20m 28s): Exactly. Yeah. You could have a nice little conversation in the lineup for Starbucks.   Jesse (20m 32s): So the F the first thing you said there, it's like, to me, it's, it's a lot like dating this aspect of when you're absolutely completely needy. You have a deal, you can smell it. You can just, you get that vibe right away. And if   Dave (20m 46s): It, did you see me in my dating days? Is that what the transit sounds like? It sounds like you're spying on me,   Jesse (20m 52s): But it, it really, it really is funny. It's it does feel like it's almost like you're in high school again. And there's this aspect of when you feel, when it comes off, that you don't need that commitment. All of a sudden that you get that opposite reaction to somebody that's interested.   Dave (21m 7s): It that's exactly what it's like beautifully said.   Jesse (21m 10s): So this, so I guess just to cap off that second one, there, the point that you start to make this touch point does not have to be right when you get a deal. If anything, it doesn't hurt for people that are looking to raise capital to start reconnecting, you know, now prior, And I think one of the, one of the challenges, like you said, you know, I'm in brokerage and even, you know, even in a sales environment, I can only imagine if, you know, if somebody is not comfortable with talking or reaching out or it's outside their comfort level.   But one thing that I was told very early on was just like, you know, just bite the bullet and let people know what you're doing. And, and if real estate is what you're doing, there's, there's people that will invest with you that don't didn't know that you, you were actually investing. And I find that if you put yourself out there, you make these connections. Then when you do have a deal, it's, it's like you said, it's not a, you know, at the 11th hour, you're asking somebody to fund something.   Dave (22m 6s): Yeah, definitely. Well, and here's the thing. You come from a strong sales background. I come from a strong marketing background. And when you combine the two of them, then you're really on fire. So the beautiful thing I love about marketing is it can do a lot of that heavy lifting for you. So when you, you get the right marketing out there, what I call edutaining communication. So a little bit educational, hopefully a little bit entertaining, always with a clear call to action, never specifically selling a deal that selling people on the idea of booking a call with you.   That's, what's super powerful because then here's the, here's the difference, Jesse, instead of us reaching out, trying to convince somebody to listen to us about our deal, we use marketing to create curiosity, get them to put up their hand and ask us about the deal. That is a complete 180 and as a complete 180, when it comes to positioning as well. Right? So they want to know more from us versus us pushing our thing on them. So that's, that's my whole goal when it comes to this whole marketing thing is to try to attract investors instead of chasing after investors.   Jesse (23m 16s): Yeah. I like that. Edutaining good. Good. A little portmanteau there, Dave.   Dave (23m 21s): I, I, I wish I came up with that. Somebody smarter than me did. I can't remember who fortunately, but that, yeah, that's, that's the way to do it, edutain them.   Jesse (23m 29s): Okay. So we are on the TWA with   Dave (23m 34s): A few Eastern Canadians with your French. Look at me. I got the French last name, barely put three words together and fresh.   Jesse (23m 41s): You know what? I got   Dave (23m 42s): This Italian guy talking to me.   Jesse (23m 45s): I appreciate just being next to Quebec. They're the only ones that get my last name, right? When they're on a national bank or something. He still, yeah. Okay. So, all right. That's number one. And number two, third biggest mistake you see,   Dave (24m 0s): Oh man, I'm sure you see this all the time, Jessie and that is people kind of spraying and praying, right? So they think anybody with a pulse and a checkbook could make a good investor. So they start posting on Facebook. They're posting stuff all over the place. They're soliciting people in these public forums. And again, caveat here. I'm not a lawyer. I'm not giving legal advice. I'm a real estate guy and a marketer. That's, that's why they, but my understanding, and I'm pretty sure it's yours too, is that's that's illegal.   We're we're crossing, crossing the line with the good old Ontario securities commission, BC securities commissions, securities, and exchange commission in the states, if you're proactively soliciting investors in public forums, right. Especially strangers people that you don't know. So that's a big mistake back in the day, when newspapers were a thing, I'd see people putting in ads in the classified section and the Western investor and all these different places. And, you know, they might get away with it for awhile, but once the law comes down on you, that can be a very, very stressful, painful, and expensive experience.   So again, that's why we're working with clients, just helping them get started with raising capital. That's why we laser focus on leveraging their existing network first.   Jesse (25m 19s): Yeah, I think for Canadians, I think we have the national instruments. If anybody's curious to know what our equivalent is on the security side, but you know, in the states, I'm sure some listeners would be like, well, I saw, you know, I saw different people, advertise and grant Cardone, these different, you know, they're, they're looking at very specific exceptions within the law. And I, I, I think I'm going by memory reg, reg, D, and the states where if you're investing to certain individuals, if it's all accredited investors, if there's are, there is advertising, you can do.   But the average person, when they're just throwing everything out there, you really gotta be careful about that because, you know, I venture to guess the OSC and BC secure, I think it's BC securities commission. Is that right? Or is it, yep. I think that they might be a tad friendlier than the sec, but I, you don't want to get in the cross hairs of, of either,   Dave (26m 12s): Oh man. I, I know of a company in Alberta that had a full-time league. Like they had a legal department in-house they had, they, all their sales guys had to get the securities, whatever Canadian securities course thing and all that kind of stuff. They got shut down by the Alberta securities commission for six months. And their whole business was raising capital that's. That's how they made a living. That's all they paid the bills, they got shut down for six months for an investigation at the end of the six months.   They said, oh, it looks like you're doing everything right. You can go back. Continue. Yeah. Well, yeah, no, they're dead in the water after six months. Right. So   Jesse (26m 55s): Sham down a, a restaurant for a year. Same exact you're good now.   Dave (26m 60s): Yeah, exactly. So, I mean, and that was a full-time legal team and a multi multimillion dollar company. So think about for you and I are a little mom and pop real estate investor. I mean, yeah, just Laura getting a lawyer and trying to do anything with that bang you're down 10, 20, 30 grand in no time.   Jesse (27m 20s): Yeah, for sure. And that was one of the things for, for us, you know, we started with, you know, although you pay for it, we started with the solid legal team and you know, one nice thing about being in the industry is we knew a lot of people on that side, real estate or, or syndication or securities lawyers where, you know, you make sure you're doing everything correct. Okay. So those are the three. And, you know, once, once you have investors or you kind of are, I guess, people that you're educating on this kind of stuff, once they kind of have a handle on those aspects of investing or passive, are there any other ones that during the process, once you have acquired, I'm thinking from an investor relations standpoint?   Cause I feel like a lot of times there's conversations about raising capital and you finally do, it's great. You, you acquire the place, but then there's this whole other business where sometimes your personality type is great for raising capital, not so much for asset management,   Dave (28m 19s): Right? Yeah, definitely. Yeah. That's, that's a big hiccup for a lot of people, they get off to a good start and then the communication just kind of dries up. So I think, you know, and, and we work with a lot of what I call mom and pop investors, just getting, going, doing joint ventures and that sort of thing. Right. So what I always recommend to people is treat your investor. Even if it's your brother treat it as if it's a complete stranger and better yet I'm an accredited investor.   So ask yourself, you know, would an accredited investor want the proper legal paperwork? Yes. So make sure you've got the proper legal paperwork, but an accredited investor get independent legal advice. Yes. Make sure your brother gets his own independent legal advice. Would an accredited investor want regular reporting? Yes. How often quarterly semi-annually, whatever it is, then do the same thing. Right? So excuse me, Jesse. I came down with a little something here, so sorry for hacking on your shelf, but that's, that's the whole thing, right?   You gotta, you gotta have that communication, but you need to decide upfront in conjunction with your investor. How often did he want to hear from me? Because what I found in, in real estate investing as well as a lot of people are on the analytical side, so they can overdo it with almost too much communication, too much data, too much information when the investor really doesn't want that much. So you got to find that happy balance with your investor partners, and maybe you start off with a quarterly meetings for the first year back it off to every six months, the second year, and then keep it going like that, depending on what you agree with your investment partners.   Jesse (30m 1s): Yeah. I think it's good. I mean, in any relationship, any business relationship or, I mean, just in general setting expectations at the outset is, is a helpful because whether the there the right expert expectations or the wrong it's people get anchored to them. So you want to make sure that you're not, you know, setting expectations that you know, that you can't deliver on, or you find out that you can't deliver on. So being, you know, being careful, careful, and prudent about that. I think that makes a lot of sense.   Dave (30m 27s): Yeah. Good point.   Jesse (30m 29s): All right, Dave, we did a little bit more of a power round today. So I think we're going to have to chat about private money and next time I see it, because I think I was saying before the show with interest rates where they're at, I feel like that is going to be, it's going to start to be an area where we're going to see a lot more activity. We're already seeing it on the brokerage side, whether it's in the form of hard money loans or vendor take-back mortgages. So definitely should, should schedule a time to talk about that maybe in, in the fall.   We'll see where we're at.   Dave (31m 1s): That sounds great. My friend,   Jesse (31m 3s): So Dave, for our listeners, aside from Googling yourself or looking in the show notes here, where can listeners get in contact with you? See what you're up to?   Dave (31m 12s): Oh, thanks Jesse. So I'm really excited because I'm launching a brand new podcast. It's called the how to raise capital 1 0 1 show. You can find that wherever you like to listen to your podcasts and the first nine episodes of the show are a mini course on how to raise your first six figures in a matter of weeks, your first seven figures in a matter of months, even if you're just starting from scratch. So again, that's my new, not my new show that I'm pretty excited about the how to raise capital 1 0 1 show.   Jesse (31m 45s): My guest today has been Dave Dee, both Dave, thanks for being part of working capital. Again,   Dave (31m 50s): My pleasure, my friend. Thank you.   Jesse (31m 59s): Thank you so much for listening to working capital the real estate podcast. I'm your host, Jesse for galley. If you liked the episode, head on to iTunes and leave us a five star review and share on social media, it really helps us out. If you have any questions, feel free to reach out to me on Instagram, Jesse for galley, F R a G a L E, have a good one. Take care.

Leaders in the Trenches
Being Honest with Your Team is a Path to Growth with Brian Burke at SellYourMac.com

Leaders in the Trenches

Play Episode Listen Later Jul 18, 2022 20:06


Being an honest leader may seem like a given. However, being honest with your team is not for every leader. Many leaders don't like to share the bad news. I believe in transparency. Today's guest is Brian Burke, Chief Mac Man at SellYourMac.com. Inc Magazine ranked its company #4794 on the 2021 Inc 5000 list. SellYourMac.com is a trusted buyer and seller of used Apple products, through a simple online platform. Brian gives you insights on being honest with your team. We discuss why leaders must be transparent. We also look at what gets in the way of being honest.   Get the show notes for Being Honest with Your Team is a Path to Growth with Brian Burke at SellYourMac.com Click to Tweet: Listening to a fantastic episode on Growth Think Tank featuring #BrianBurke with your host @GeneHammett https://bit.ly/gttBrianBurke   #BeingHonestWithYourTeam #GeneHammettPodcast #Inc2021 #GHepisode904 #buyerandseller #Appleproducts Give Growth Think Tank a review on iTunes!

RNZ: Saturday Morning
Brian Burke: putting the ‘wow' into the World of WearableArt

RNZ: Saturday Morning

Play Episode Listen Later Jul 15, 2022 25:03


Las Vegas show-maker Brian Burke has a reputation for creating incredible large-scale stage productions. Now Burke is bringing his magic to our very own World of WearableArt, having signed on as the show's creative director for the next three years.

The Industrial Real Estate Podcast
The Truth About Cap Rates

The Industrial Real Estate Podcast

Play Episode Listen Later Jul 13, 2022 51:34


In this week's episode I interviewed Brian Burke, President & CEO of Praxis Capital to discuss the following topics as it relates to commercial and industrial real estate: 0:00 - Introduction 1:10 - Cap rates are NOT a return metric 7:10 - Why are cap rates so popular? 8:38 - Cap rates vs unleveraged yields 12:30 - Cap rates & interest rates 15:01 - Valuating a deal (and how cap rates are used) 21:48 - Actual return metrics (IRR, cash-on-cash, equity multiplier) 30:20 - Looking for deals in today's market 35:50 - Active vs Passive real estate investing 39:44 - Manipulating cap rates 44:15 - Software for analyzing deals 47:40 - Forecasting rent growth 49:23 - A fantastic summary of cap rates -- About Brian: Brian Burke is President & CEO of Praxis Capital, Inc., a vertically integrated real estate private equity investment firm, which he founded in 2001. Brian is also a member of the Praxis Investment Committee. Praxis operates on multiple platforms, currently managing active syndications for the acquisition of single-family, multifamily and opportunistic residential assets in US growth markets. Over the course of a real estate investment career that began in 1989, the offerings Brian manages have acquired over 750 properties, including over 3,000 multifamily units, with the assistance of proprietary software that he wrote himself. Acquired asset classes include single family homes, self storage, mixed-use and large apartment complexes in multiple states. Brian has arranged well over $500 million in debt and equity for Praxis acquisitions. Praxis' current portfolio exceeds $200 million of real estate assets under management. Brian is the author of The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications, and a frequent public speaker at real estate conferences and events nationwide. Connect with Brian: LinkedIn: https://www.linkedin.com/in/praxiscap... Praxis Capital Website: https://praxcap.com/ -- ⚡ Become an Industrial Insider: https://www.youtube.com/c/ChadGriffit...

Apartment Investing Journey
TLS212: Recession Insights, Disaster First Deal, Acquiring over 4000 units, Selling over half his portfolio - With Brian Burke

Apartment Investing Journey

Play Episode Listen Later Jul 5, 2022 43:14


Brian Burke is President / CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm.Brian has acquired over 800 million dollars' worth of real estate over a 30-year career including over 4,000 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. Brian has subdivided land, built homes, and constructed self-storage, but really prefers to reposition existing multifamily properties. Brian is the author of The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications, and is a frequent public speaker at real estate conferences and events nationwide.Join Our Passive Investor NetworkDownload Our Passive Investor Guide to Multifamily SyndicationsWE DISCUSS:How he got involved in real estate.how his lack of funds became his starting point.How he transitioned to multifamily space.The lessons he learned during the last recession.What his business looks like today.How he was able to formalize his business model.What their business focuses on today.His thoughts on the market trends and coming recession.What he expects to see now from lenders moving forward.The details of his book.His biggest challenge.What's going really well with his business.CONNECT WITH OUR GUEST:https://praxcap.com/our-team/CONNECT WITH US! Visit our Website: https://www.canovocapital.com/podcastConnect with us on Facebook: https://www.facebook.com/theleadsponsorFollow us on YouTube: https://www.youtube.com/c/TheLeadSponsorFollow us on Instagram: https://www.instagram.com/theleadsponsor/Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-lead-sponsor-podcast-real-estate-investing/id1464256464LOVE THE SHOW? PLEASE SUBSCRIBE, RATE, REVIEW & SHARE!

Locked On Penguins - Daily Podcast On The Pittsburgh Penguins
Brian Burke speaks out, plus is Radim Zohorna ready to be up full-time?

Locked On Penguins - Daily Podcast On The Pittsburgh Penguins

Play Episode Listen Later Jun 30, 2022 27:41 Very Popular


Pittsburgh Penguins President of Hockey Ops Brian Burke spoke to some of the Pittsburgh media on Wednesday and yes, most of it centered around Kris Letang and Evgeni Malkin., Hunter looks at Burke said and gives his thoughts on what the "deadline" part means, and why Burke basically confirmed that Letang is currently the higher priority over Malkin. He also looks at when that final "take it or leave it" offer will be in and whether it's likely that either player circles back to the team when free agency opens. After that, Hunter reviews Radim Zohorna's season and looks at how he put up some of the best underlying numbers that he's ever seen in such a short sample size. Is there a chance he keeps that up for a full season? Hunter looks at that, plus touches on how he's on a one-way deal this season. Is the team expecting him to make the jump for the entire season? What attributes would he bring to the bottom six? Finally, he ends the show with some long-awaited draft talk and gives the top two players on his board that could be available for the Penguins to take. Support Us By Supporting Our Sponsors! Built Bar Built Bar is a protein bar that tastes like a candy bar. Go to builtbar.com and use promo code “LOCKED15,” and you'll get 15% off your next order. BetOnline BetOnline.net has you covered this season with more props, odds and lines than ever before. BetOnline – Where The Game Starts! Rock Auto Amazing selection. Reliably low prices. All the parts your car will ever need. Visit RockAuto.com and tell them Locked On sent you. Learn more about your ad choices. Visit podcastchoices.com/adchoices

SSAC
In the Trenches of Football Analytics

SSAC

Play Episode Listen Later Jun 30, 2022 52:22


Sarah Mallepalle - Player Personnel Analyst, Baltimore Ravens Kevin Demoff - Chief Operating Officer, Los Angeles Rams Mitch Schwartz - Former Offensive Tackle, Kansas City Chiefs Brian Burke - Senior Analytics Specialist, ESPN Kevin Clark (moderator) - Staff Writer, The Ringer Although NFL executives may have been slower to embrace the analytics movement than their counterparts in MLB and NBA, 2021 marked the first year that every team in the league had a dedicated analytics staffer and was capped with the first GM hire from a true analytics background in Kwesi Adofo-Mensah. With every passing year, there are cutting-edge statistics being developed: Completion Percentage Over Expectation, Pass and Run Block Win Rate, among others. Join former All-Pro lineman Mitchell Schwartz, LA Rams COO Kevin Demoff, Ravens analyst Sarah Mallepalle and ESPN analytics expert Brian Burke to explore the different ways NFL teams are using analytics from roster-building to playcaling, with a special emphasis on what has for a long time been very tough to quantify: line play.

DK Pittsburgh Sports Radio
DK's Daily Shot of Penguins: Brian Burke takes the bullhorn!

DK Pittsburgh Sports Radio

Play Episode Listen Later Jun 30, 2022 19:47


Brian Burke takes the bullhorn to send a clear (and public) message to Evgeni Malkin, Kris Letang. Hear award-winning columnist Dejan Kovacevic's Daily Shots of Steelers, Penguins and Pirates -- three separate podcasts -- every weekday morning on the DK Pittsburgh Sports podcasting network, available on all platforms: https://linktr.ee/dkpghsports Learn more about your ad choices. Visit megaphone.fm/adchoices

DK's Daily Shot of Penguins
DK's Daily Shot of Penguins: Brian Burke takes the bullhorn!

DK's Daily Shot of Penguins

Play Episode Listen Later Jun 30, 2022 19:47


Brian Burke takes the bullhorn to send a clear (and public) message to Evgeni Malkin, Kris Letang. Hear award-winning columnist Dejan Kovacevic's Daily Shots of Steelers, Penguins and Pirates -- three separate podcasts -- every weekday morning on the DK Pittsburgh Sports podcasting network, available on all platforms: https://linktr.ee/dkpghsports Learn more about your ad choices. Visit megaphone.fm/adchoices

Tip of the Ice-Burgh Podcast
Burke, Bjorkqvist, and Other Bits of News

Tip of the Ice-Burgh Podcast

Play Episode Listen Later Jun 30, 2022 53:03


Nick and Nick recap the few bits of Pittsburgh Penguins news from this week, including Brian Burke's discussion on the Jeff Marek Show. Tune In!! Topics Include: Malkin reportedly "Unlikely" to re-sign with the Pens (2:00) Brian Burke speaks on Penguins top players (7:15) Kasper Bjorkqvist Signs in Finland (13:30) Pens biggest areas of improvement (25:00) Shout Outs and Call Outs (37:30) The top podcast for the most avid Penguins fans! Tune in as hosts Nick Brlansky and Nick Horwat bring you all of the Pittsburgh Penguins top news and analysis every Monday & Thursday as part of SI Fan Nation Network and InsideThePenguins.com. Listen weekly and remember every day is “A Great Day for Hockey”! @IceBurghPodcast @InsidePenguins Watch segments and full episodes of the show on YouTube at Inside The Penguins!! Learn more about your ad choices. Visit megaphone.fm/adchoices

Hockey Central @ Noon
A Championship Conversation with Andrew Cogliano

Hockey Central @ Noon

Play Episode Listen Later Jun 28, 2022 69:11 Very Popular


Jeff chats with Penguins President of Hockey Ops Brian Burke about the impact of the Sedins in Vancouver, Herb Carnegie's deserving call to the Hall and the origin of the GM of the Year award (00:51). Later on, The Athletic's Joe Smith goes over the laundry list of injuries for the Lightning, how much the Anthony Cirelli injury impacted the club and what the market will be for Nick Paul this off-season (20:24). Finally, Andrew Cogliano looks back on lifting the Stanley Cup in front of his teammates, what the perception of Colorado was before he got traded there and when he decided he needed to change his style to stay in the NHL (48:43). The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the position of Rogers Sports & Media or any affiliates.

Donnie and Dhali - The Team
June 28th 2022

Donnie and Dhali - The Team

Play Episode Listen Later Jun 28, 2022 90:24


We have a loaded show today following the Hockey Hall of Fame announcement yesterday.Our guests include Brian Burke, Alex Burrows and Craig Button.

Tim and Friends
The Colorado Avalanche Are Your 2022 Stanley Cup Champions

Tim and Friends

Play Episode Listen Later Jun 27, 2022 93:50


Tim breaks down Colorado's dominant Stanley Cup run before NHL on ESPN's Kevin Weekes (28:35) gives his thoughts. Penguins president Brian Burke (1:12:31) hops on to discuss the newest Hockey Hall of Fame inductees. Ben Nicholson-Smith (52:03) joins from the Rogers Centre ahead of a big Blue Jays-Red Sox series and it's Monday, so Plays of the Week!The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the position of Rogers Media Inc. or any affiliate.

Working Capital The Real Estate Podcast
Real Estate Syndication, Scaling and Systems with Mark McGuire | EP108

Working Capital The Real Estate Podcast

Play Episode Listen Later Jun 16, 2022 33:07


Mark McGuire is a Chief Investment Officer, Hearthfire Holdings. in 2017 he started to build a real estate business. He hired and fired agents, learned from his mistakes, and then re-hired all over again with a new perspective. Since 2013, Mark and his team have brokered more than 300 homes with a total sales volume exceeding $83M. They have also raised over 15 million in capital for Hearthfire. Mark's biggest passion is wealth building and investing. He is a limited partner in 12 syndications, ranging from multifamily to industrial, hospitality to self-storage. He has invested in multiple private companies in the biotech, finance, and AI spaces. In addition, he currently owns 20 residential units in various real estate partnerships and oversees the management of 130 residential units his family owns. Mark has also executed multiple 1031 exchanges. He's seen up-markets and down-markets and discovered opportunities in both.  In this episode we talked about: * Mark's  Bio & Background * Building his Career in Real Estate * Limited Partnership Role * Real Estate Deals Outlook: the best Takeaways from Investors * Red Flags while looking for LP & GP * Multifamily Investments * Mark's Focus in Real Estate Right Now * Economic Outlook 2022-2023 * Mentorship, Resources and Lessons Learned Useful links: Slicing Pie: Funding Your Company Without Funds https://hfirecapital.com https://www.linkedin.com/in/investingwithmark/ Transcription: Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time   Jesse (23s): This is Jessica forgotten and you're listening to working capital the real estate podcast. My guest today is Mark McGuire. He's the C I O of Herth capital. He's a full-time real estate investor and operator that's when mark at the time plunge into real estate sales, after running hard on his own for three years, working 80 to 100 hours a week, mark realized he needed help. He transitioned his real estate practice to Keller Williams in 2017 to learn how to build a real estate business. He hired and fired agents learn from his mistakes and then rehired them all over again.   Since 2013, mark and his team have brokered more than 300 homes with a total sales volume exceeding 83 million. They've also raised over 50 million capital for her fire, mark, you and I were just talking before we want to get into a lot of what you're doing now, which sounds like general partner and sponsoring deals. First of all, welcome aboard.   Mark (1m 13s): Thanks for having me Jesse excited.   Jesse (1m 15s): Yeah, I really appreciate it. So lots to talk about here. You've had a pretty, a pretty interesting background in terms of where you started out in your career and what you're doing today. And I want to get into for listeners the different asset classes that you're working with, but before we do that, why don't you take us back to kind of where you got into real estate? How that your story unfolded at the beginning?   Mark (1m 39s): Yeah, so real estate was something that was in my family. You know, I tried to go the college route net that really didn't align with my way of being a really I learned hands-on and I could, I could do the school thing, but I just hated it. And my mom's a teacher, so that went over really well. And then, you know, transition to my first entrepreneurial venture was playing in a band and we played, I was in a band professionally for seven years. We ended up getting a record contract with RCA records and I had had my I'm sorry,   Jesse (2m 15s): Small outfit.   Mark (2m 16s): Yeah, yeah, just a little bit. And I had had my real estate license at the time. And when we got the record contract, I remember, you know, this real moment of clarity of looking at how much money I was going to get as part of the contract that was guaranteed. And then how much money I had commissions pending with my residential real estate sales business. And I just was like, well, why would I sign this 14 to 20 year contract? Like that makes no sense. I'm, I'm going to be a slave. So went into real estate sales full time and had the opportunity to, to really start to understand business and learned about this whole thing called like a profit and loss.   I never went to school for any of it. So it was kind of just a giant trial by fire and I'm kind of became obsessed. And then after that, it was just like, how much more could I could I build? It was just a constant pursuit of growth.   Jesse (3m 8s): Fair enough. So you kind of run through the process, you're in music, which is awesome. What a, what instrument or where you vocals? What did you play?   Mark (3m 16s): No, I was actually, I was, I played drums. I did sing background vocals, but drums was really my main contribution.   Jesse (3m 22s): Nice, nice. I'm a big, big guitar guy. Just, just, just bought a, a PRS recently. And so I'm pretty, I'm having fun with that somewhere in the background there. So that's really cool. So RCA, I, like I said, it's not exactly a, a small outfit, so congrats on that. But even with that, you kind of look back and you start real estate as a path. So bring us up to speed today. I know that you're continuing to build wealth through real estate and you are LP on a few deals in various asset classes and running point or general partner on others.   Maybe you could tell listeners a little bit about what that looks like and how that process kind of evolved.   Mark (4m 3s): Yeah. So when I was in residential real estate sales, I spent a lot of time, you know, getting to run numbers on just single families. One thing that I was really fortunate to have was a family that was in real estate. So my, my grandfather was the main driving force and he owned a bunch of properties and I got the opportunity to work and be the, the, the assistant to the maintenance man. So I was like the guy that just said, Hey, there's a pile of trash, go over there, go take it and load it in the truck and throw it out.   So I did that for a couple of years and, you know, that's what it took to be in the band and have the flexibility to be able to get up and go whenever I needed to, they either had to go for on the site or they didn't. So there, it was just a matter of, you know, as I made money and, and, and generated income from residential real estate sales, my grandfather always told me, you know, real estate sales, you know, will make you money, but it will make you rich. And I don't know if you've ever heard of the saying brokers died, broke because so many people in sales, they make good money in commission, but then they, you know, spend it all and they don't get into assets that help you defer some of those taxes   Jesse (5m 19s): And build wealth.   Mark (5m 20s): Yeah. So it really came down to saying, Hey, I want to, I want to be able to get paid while I sleep. And so I've started buying condos and single families. And because this was 2013, 14 when the market was, you know, really, really low and then just kind of wanted to grow it from there and got interested in the commercial loan space. And, you know, I lived on as little as I could without feeling like I was, you know, I'm going to say punishing myself.   I wasn't like sitting there and eating ramen. No, I was never the ramen noodles guy. There's a lot of those people that, you know, they, I mean, I like pain, but I don't like it that much.   Jesse (6m 0s): You know? And I don't understand that maybe we said Italian upbringing. I'm like, you know, pasta is just this chief.   Mark (6m 5s): It is. But Robin noodles is pasta. It's just possible of sodium   Jesse (6m 10s): A hundred percent, exactly. Dumping, just dumping a bag of salt in there.   Mark (6m 16s): So I basically took it from, you know, just doing small single family and getting introduced to the concept of syndication I was trying to buy up. And it was just, I didn't have enough income. I didn't really know the way that the game was played. So syndication was my way to be a part of bigger deals. And I got, it was a, it was a question of bandwidth because you only had so much time to operate so many deals the right way to execute on them. And syndications for me were a way to keep my money moving at a good velocity without having to actually be the one driving the ship forward.   Jesse (6m 50s): So in those syndications where you limited partner in like the first one,   Mark (6m 55s): Yeah, I was an LP in probably seven or eight before I started on the GP side.   Jesse (7m 3s): Yeah. Which is that's fascinating to me because some, some would argue that it's, it's easier to get into being the LPN and definitely in a sense it is right. You're just, you're just providing capital. But I think the analysis is for somebody that's breaking into the industry, it's pretty, you know, ballsy to just jump into LPs with, without doing your proper due diligence. And I'm not saying that you didn't, I'm saying a lot of people, they see an investment and then they go in and that's why we had Brian Burke on.   He wrote the passive, I think it's passive real estate investor.   Mark (7m 36s): It's a hands-off hands-on that's   Jesse (7m 39s): Right. So we were both talking at the last BiggerPockets conference and what I found fascinating about this book, not just to plug it, it's just from the LPs point of view, which you never really read in a lot of these books. A lot of it is you're the GP you're running the deals. So that's pretty awesome. And then the other thing I, I feel in tell me if this is what you experience, I've told partners of mine before that we should be an LPN, this deal. And it's not necessarily because I think the deal is great. Is I really like the sponsor. I really want to see what, what he or she does with the investment.   And you learn so much about, okay, they're using this software, oh, they're G they're doing updates this way. I, you know, the last person I invested in did, did them this way. So I feel like there's a lot to learn from somebody who has already established themselves as an LP. Was that kind of your experience in those first, you know, six or seven, whatever they were.   Mark (8m 27s): So it's funny. I never went into syndication, investing, thinking I was going to be the guy syndicating. So I always went, I went into it because, you know, I could do my own deals. I knew how to run them. I knew how I knew how to pull the levers. I mean, it started as single family, right. Which is buy it at the right price, fix it and understand what the rental value is going to be at the end. Now, syndications do that same thing on a scale times, 100, 200 times. Right? So that's, it's the same concept, but it's kind of like if someone just gave you a graphing calculator and said, Hey, tell me what the graph looks like for this, you know, inequality, if you don't know how the basic calculus or algebra works behind it, then, you know, giving it, given that calculator is great, but like, you need to know how the, the math, how, what the long form version is.   And that's what single family was for me was the long form version. Now that I'm in a syndication, it's like, okay, what are the levers that we're going to pull here? How are we going to pull them? How much do we need to pull in totality in order to get up to what we can project? And at that point, like, I can pretty quickly go like, all right, this, this will work. Or it won't.   Jesse (9m 38s): Yeah. And I find that the one thing with single family and I I've had a very similar kind of history or, or path that you took. I mean, it can, it's very binary. It could go that you have a terrible experience or that you have a great experience in that is really predicated on the fact that you don't have a hundred tenants. You have one or two in a certain investment. So if it goes poorly, you feel like the whole thing is going poorly, where that the nice thing with apartments is you do scale it up and you're able to have economies and, you know, the losses, the winds help with the losses and things kind of even note.   But I feel like a lot of it is, is that mental barrier, you know, when, when you're starting out buying that first condo, the idea of you owning 80 units is, you know, so far away from, from your reality. So tell us how you moved from. So you moved from kind of what you're doing originally in real estate, into being an LP on these deals of whatever it was, six, six to 10 or whatever you invested, what was the, your experience or what was your outlook after seeing different investors? Do these deals differently?   Mark (10m 43s): I mean, you know, Brian Burke covered a ton of it in his book. So if you haven't read that, read that, I mean, it's, it's, it really sums up pretty much everything you need to know in more detail than you need to know it. So if I were to boil it down to brass tacks and make it really simple, I learned who communicates well, cause I value communication. If you don't communicate well, I don't wanna, I don't want my money with you. I like quarterly communication, monthly communications, just too much for me, because at that point, like I don't, if I wanted to have monthly communication, I'd be, I'd run the deal.   I, I want to know that my money is okay, but I   Jesse (11m 20s): Don't from the contractor.   Mark (11m 22s): Yeah. I, yeah, not interested. I wanna, I wanna know, you know, who does what they say they're going to do. And by that, that can be with respect to distributions that can be with respect to execution of the business plan. There's different ways that that shows up, but I'm paying a lot of attention to do they execute and do what they say, do they deliver? Because so many people and anyone can put something on a spreadsheet, say here's what this is going to do.   And this is gonna be worth X by this time. But if you don't go and see you, those, you know, quarterly execution updates, demonstrating that they're tracking performer, tracking their execution timeline. Even if the NOI doesn't track because the market's not, you know, didn't pan out the way you thought, but you're executing to the business plan. I'm not going to fall to sponsor for that. I just, wouldn't   Jesse (12m 18s): Sorry. Go ahead.   Mark (12m 19s): Those were the two, those were the two big things for me. And then I would say the, the third thing is you get to see who actually underwrites, conservatively, everyone, underwrites, conservatively. It's like, everyone leads with that. And when you   Jesse (12m 35s): Conservative figures here, we're just going to change this exit cap rate here. And there's your 30% IRR.   Mark (12m 40s): Yeah, exactly, exactly. It all. It all comes down to that. You get to see, you know, as the tide is going out here, I think we're starting to see the high water mark. You're going out. You're about to see who's swimming naked. It is going to it's it's gonna, it's going to come.   Jesse (12m 58s): Yeah. Well, it it's to your point of, you know, I don't necessarily see that you're going to track exactly like your, you know, your memorandum or your deck. You showed everybody, but it is this idea of like communicating on a regular basis, tracking the progress. It sounds like when I hear guys like you talk, you can almost hear a sales background because if you're a good sales person and in this case, like real estate sales, the first, the, one of the most valuable a number of them, but one of the mentors I had, one of the most valuable lessons I ever got was listened, deliver bad news, quickly, deliver it fast.   And you know, you, a lot of people try to run away from it, but listen, like, I'm going to give you a quarterly report. This is what's going on. I'm going to give it to you every quarter. I'm not going to try to run away from, with what's happening. We're obviously gonna make sure that, you know, things go as smoothly as possible. But I think communication is huge. And in the long run, even though it hurts those days where you're delivering bad, you know, bad information, it's important that you do that for your credibility.   Mark (13m 58s): I don't, I would say not don't just deliver bad news, but deliver the solution, delivery, deliver your solution to the problem, along with the problem. Because, you know, coming from the days of residential real estate, if I went and delivered a home inspection report with a bunch of bad news and didn't provide avenues to solve it, then like there's full on panic. And everyone's like, wow, man, this is terrible. And people just go, you know, off the cliff into the deep end.   Jesse (14m 28s): Yeah, no, I couldn't, I couldn't agree more. So let's get into a little bit about the LPGP relationship. So for those that don't know, I think most of the listeners are familiar with the general partner and limited partners. Basically try to give me your, your perspective of what you're looking for. Let's start on the LP side when you're looking at a general partner. So you talked about somebody who's a communicator, somebody who's going to be, you know, tells you what the, what they're going to do is, is in communication with you.   But what are, what are a couple of red flags? You know, we can pull them from, you know, from Brian, but we've got you here and I'd like to get your thoughts on it.   Mark (15m 8s): Yeah, here's what I would say. I always want to know what are the assumptions in the model? I always ask, you know, what are your rent bumps? That's a big one because you can go and make revenue look a lot higher than it really can and, and will be if you're over aggressive, I want to know. And that kind of goes along with how are you to creating the value? So is it through, you know, rent?   Is it through adding additional square footage in self storage game? Or is it adding, you know, like converting units that, and, you know, chopping them up and making them a little smaller, but I also want to know, you know, what's your exit cap rate assumption. That's such a big lever. That's so just not understood it. The general person does not understand how exit cap rates are such a powerful lever in the value gaming   Jesse (16m 8s): Return.   Mark (16m 9s): Oh yeah. So that's a really, really, really big one. And if you don't know, the re the relationship net operating income divided by cap rate equals your asset value. So understand if you're going in buying, you know, a cap rate and it's, and it's hard to set it because just cause you're going in at a five cap on actual is there could be a ton of runway in the, in the, in the gross revenues because it's not being managed well. So, you know, sometimes people think that they're getting a steal, you're paying a high cap rate on something like that. But if, you know, as the operators, a ton of runway on the rent roll and fine, give them a five cap and just know that you're going to double the revenue and then you're going to sell it at a six, but the double revenue still generates the value.   Jesse (16m 50s): Yeah. I think one thing I'd tell a younger investors or people that are trying to understand the, the usefulness and sometimes the work you should throw cap rates out of perfect illustration is you can have a building with a 1% cap rate. And it's an absolutely amazing investment because you, you have vacant possession of a building in a great market. So, you know, this idea of, of cap rate being the be all and end all, you know, you have to really factor it into our, are we a stabilized asset? Are we fully tenanted the other piece too, of, you know, just so listeners are following along with exit cap rate, or sometimes you'll hear it called the reversion if you're in, in college and finance right now.   So this idea that you have to apply a cap rate to that last year, or say a five-year investment that last year net operating income, just like mark was saying here, that is an assumption in the deal. And the common wisdom is that that cap rate should be technically higher than your entry cap because the building has degraded over time or, or kind of, it has gotten older, the actual structure, not the land and that cap rate, you know, you can just do the math right now. If you have a million dollars NOI divide that by 4.5 or divided by 5.5, you're going to see a drastic difference in the valuation.   And that's going to really affect the levered return on investment. So that's a great point. Are there any, w you know, when you look at an investor or an investment, and you're seeing the, the debt side of the equation, the mortgage, what do you like to see there? Is there anything that you're looking out for that you're keeping your eye on specifically?   Mark (18m 22s): I mean, I'd like to understand recourse, is there recourse on it or is there not because if there's recourse on it, you know, the person who's running the deal has more skin in the game because when you're an LP, generally, I'm not going to say always, but pretty much always you're at risk. Capital is only the capital, the equity you contributed to the, your LP position. Whereas the sponsor who's on the GP side, they're the ones taking the risk, signing on the debt.   So most, you know, most, most people in, in multi-family, and, and in like industrial, they're going to go for CMBS or life insurance company, life code debt, and they're going to go for non-recourse, which is smart. It's very smart. But if someone like self storage, a lot of times we're going for like regional banks and regional banks don't want to give non-recourse, they'll give partial recourse. Yeah. So I still have skin in this game if I don't do this thing. Right.   And versus someone on a multifamily, if the project totally goes sideways, they hand the keys back and go, Hey, sorry, this is your problem. Like, I tried my best. And you as the investor who put up the check, you're out the money and the guy who ran the deal just lost the reputation. I mean, that's, that's what you're really losing, but they didn't lose cash. So to speak.   Jesse (19m 41s): Yeah. That's a great point. I, the last investment that we were running GP on, I remembered speaking with an investor and he said, and it's not a dumb question. It's a, it's a logical question. They said, well, you know, how much are you investing personally? You know, I thought it would be more. And I said, my answer to him was, listen, it's, it's the wrong question. I'll answer it. But it's the wrong question. And I'll tell you why. So I tell him how much we're investing in the deal. But then secondly, I'm saying that we're signing on this debt and it's, this is, this is not debt.   This is basically my unborn kids. If everything goes wrong here, that's what gets affected because we're personally guaranteeing the debt. I th that's a question I think is important because at the end of the day, if I know that the GP is really, like you said, has complete skin in the game, that changes the dynamic for me, for sure.   Mark (20m 30s): Yep. Yeah. I mean, and, and honestly, like I, especially right now, I will want to see lower leverage. Multifamily investments have been going 80% with a 24 month IO interest only period. And on a 30 year amortization schedule. So talking high leverage with very little principal pay down with, so your 30 year, the higher your amortization period, the, the slower you pay down your principal loan balance. And then when you go and you add a 24 month interest only period on the front of that, you're paying no principal for two years, and then you're paying small principal for the three years.   So if you're holding it for five years, you're really banking on the market to go up. So at the time of disposition, you're not in disposition to sale, you're not in a place where you're going to get, you know, you're gonna be under underwater. And then at that point, you're you got a deficiency. So you're paying to sell the property, or you're having to refi at that. Five-year mark. So I, I hate high leverage right now, like 80% leverage scares the shit out of me and interest only periods on loans.   Also equally terrifying right now for me, unless you're at a super low leverage point.   Jesse (21m 46s): Well, it's like when you describe it that way, you're like the big short 2.0 there where you have like this balloon, or, you know, you have an IO period. And then all of a sudden it kicks into to have whatever you're looking for, stabilize that after that. But I think, I think what we've learned over the last six months, or even shorter than that with interest rates is that LTV is important to a certain extent. But what most banks that we're dealing with, what they're looking at is that service coverage right now, how much more do you have to pay then than your actual servicing of the, of the mortgage or debt.   And I think that is a, probably a prudent way to look at it, but yeah, I think, I think you're right. I think most of the going forward this next year, I think these high, these individuals or companies that are doing very high loan to value are kind of setting themselves up to potentially be in a little bit of trouble if you know, the economy goes the wrong way.   Mark (22m 39s): Well, and so then the question becomes, okay, so let's say you got a five-year term with a 24 month IO at 30 year am. Well, do you have extensions beyond that? That will allow you to go and buy some time if the market doesn't, you know, the market's not cooperating with your exit timeframe that you originally intended. So that's understanding, you know, the ability to have extensions on the backend. Can you buy an extension or does the rate reset? Meaning like now you have to go and go to, you know, whatever prime is or prime plus, whatever the agreed upon amount is in the loan docs.   And this is the thing until you operate, actually, you don't even know how to answer these questions. You don't even know what this shit means. Let alone have the ability to ask the question to be able to actually ascertain that answer.   Jesse (23m 29s): Well, I, like you said earlier, just go on a podcast, here's your credibility. So I want to kind of jump to what you're kind of looking at right now. What are deals? You know, what, what's your target and are you doing more self storage? You're looking at apartments,   Mark (23m 46s): We're all self storage. I mean, you know, with hearth fire, all we do is self storage. That's, you know, singular focus. I mean, we just want to go and be fantastic in that space and just crush that space and know it inside and out that said the challenge right now is with rates ticking up, the more money you borrow, the bigger the deal, the rate hikes are because it's compounding a problem. So on a mortgage, as a residential, and you're borrowing 250 or 300,000 bucks, that's such a big deal.   It does impact, but not a huge deal. If you're going to borrow 5 million bucks that little, you know, half, half a point and rate can really impact your, your, your monthly debt service. And at that point, it impacts what you can pay and your debt service coverage ratio and what you can pay for, for the property. And right now, sellers, haven't adjusted to   Jesse (24m 45s): A hundred percent   Mark (24m 46s): New debt terms like seller sale price expectations are still at, you know, all time low rates. And there's a gap right now. And the thing is, is there's a lot of stupid that hasn't burned off yet. There's a lot of people still paying way too much. Yeah. I don't know when that stops. So it's like, we're just in a mode of sticking to our guns, putting in LOI, but being patient.   Jesse (25m 9s): Yeah. It's very, yeah. The price that pricing is so sticky because people, once they anchor to it, like, you know, just for on the kind of the sales side with real estate, once you stick to a price, you do not want to come off it. We have clients right now that we're actively, you know, we've marked down some prices depending on the asset class, but people are starting to say, well, here's my offers here because cost of capital is going up. And our clients are just like, no, like the prices that shouldn't affect price at all. It's like, no, it does. And it should. But the fact that there's that disconnect.   It'll be interesting to see how long this lasts. If we, if we stay in this kind of environment, even if the interest rates kind of stay stagnant, I feel like the prices have to reflect, have to adjust to it. But I think it's definitely the, there is a time period where people do not want to mark down because they're just used to what we've been living through for the last 10 years, to be honest.   Mark (26m 1s): Yeah. It'll be real interesting. I mean, we've been up until the right fence 2012. And so there's a lot of sponsors, syndicators, whatever you want to call it that have operated like crap that have gotten away with poor execution and poor operations and poor, poor deal management. And now that pricing is reverting and you're going to start. And I mean, I don't know. I think we're right now, we're kind of at the crest and now people are questioning like where value sits, right?   This instant, which whenever there's uncertainty in pricing, that usually means a price. The pricing is going to start to come down and how much it comes down, who knows that depends on rates and how much move, but prices are going to come down. And it really boils down to like, if you don't execute well on your business plan and you leave money in the table as a respect to your NOI, when it comes time to exit, it's going to cost you and that's going to be, that's going to cost investors that returns.   Jesse (27m 1s): Yeah. Yeah. I couldn't agree more. It's it's so hard to kind of do the analysis on, from an economic standpoint where we had Peter Lindemann, who's a professor at warden. He kind of wrote the book on like real estate finance. And we're talking about the economy and we have these kind of artificial, not artificial, but I think most people would agree. COVID-19 was not exactly a typical recession. It was a technical recession, but it was something that was more akin to like a, a natural disaster. So we're recovering off of that. And the question is, if the economy is going to go into recession where it naturally would have gone, or if it's going to continue along the way it is, that's really going to be the, you know, which way do we go on these things because interest rates where they're at right now, I think if the economy continues to be healthy, we can, we needed a little bit higher interest rates.   The question is if it starts running off from an inflation standpoint, but who knows? We, I, I don't, I don't crystal ball it. I just asked my guests to. So   Mark (28m 1s): W I'll be happy to tell you that we're in a recession and no one's actually said it yet. But as more business owners I talk to and, you know, cash is getting tight and all that excess liquidity that COVID created, or should I say the government created as a result of COVID, that's starting to burn off, except for like the craziest part is the people who got the most amount of money. Well, it's not that crazy. The wealthiest people who got the most amount of money are the ones who still have the money. And that's like the last bit of liquidity that's kind of hanging out and about, but all this stock market sell off and all this crap that's going on.   This, this, all this stuff in crypto it's, it's, it's all in response to people are starting to feel tight with respect to liquidity, and you wait, give it another 45 days and it'll come out officially.   Jesse (28m 44s): You know, I think this is the thing where you being a prudent investor really starts to pay dividends. And like you said, you can hide a lot with prices, just continually going up, like, Hey, I'm a great operator. Prices have gone up in my market 12% every year. So it hides a lot of poor management and poor operating. So TBD we'll, you know, we'll see what happens over the next little while. I want to get to kind of where people on listening can reach out to you and see what you're up to before we do. We typically, before we end the show, we ask our guests for questions, kind of a rapid fire, so to speak.   So if you're good with that, I'll lay them on. You   Mark (29m 22s): Let's do it.   Jesse (29m 23s): All right, mark. What's something that, you know, now in your investing career that you wish you knew when you first started out and you know, it could be something operational can be something on the investing side,   Mark (29m 35s): Any commercial asset, you control the value of your building based upon your net operating income. So the better you can a building, the more you can control the value of it when it's commercially based. So I would go commercial sooner.   Jesse (29m 49s): Yeah. That's great. What would you tell somebody that's looking to get into our industry, whether building a real estate business or going into, as an investor, whether it's LP or GP, you know, what would you tell that young, younger individual   Mark (30m 5s): Go find someone who's really good at it and work for free and learn everything you can and, you know, find a way to add value to their operation. And, you know, don't put your capital on the line, put your time on the line. Cause you got time to give you don't have money to give at that point.   Jesse (30m 21s): Yeah. Fair enough. Any resources or books you're reading right now that you think the listeners would get some value out of?   Mark (30m 30s): You know, it's interesting. I'm reading a book right now called slicing pie. It's by a guy by the name of Mike Moyer. It's interesting. Cause it talks about equity and what's fair and how to determine an equitable equity share. So I'm reading that right now.   Jesse (30m 47s): Sure. For some reason I thought PI like the math thing, once you brought up calculus.   Mark (30m 52s): No, it's I believe it or not. I'm not a math guy. I like addition, subtraction, multiplication, division, but stick letters in my math. And it all goes downhill for me.   Jesse (31m 0s): There you go. Well, luckily your PNL doesn't have a ton. It doesn't have any of the letters that don't form words. First car make and model   Mark (31m 12s): Man. The first one that I drove that was like kind of handed down, but like wasn't mine. The first one that I bought   Jesse (31m 20s): Was when you bought,   Mark (31m 22s): I bought a Mazda three   Jesse (31m 25s): Rotary engine.   Mark (31m 27s): Yeah. Mazda3 stick shift. There you go. Because I was cool like that   Jesse (31m 33s): Starting my buddy about this. I was just like stick shift. I had a million people have said this, but I watched this, I listen to his podcast, econ talk. He's like, it is a millennial security device. And it was just like, nobody drives stick. I, my first car was a, was a stick as well. And it's just like, yeah,   Mark (31m 50s): Well it's funny. I've, I've gotten in driven stick shift cards since I got rid of that car and then got another car. But it's now it's like, it's a little more herky jerky. Cause you know, not driving in every day. And plus every clutch is a little different,   Jesse (32m 4s): But yeah, you gotta, you gotta work. Awesome. So for listeners, aside from, as I always say an easy Google search, any specific places that you'd have people reach out, we'll put links in the, in the description for the show.   Mark (32m 19s): Yeah. Easiest way to find me is investing with mark.com, M a R K and then Instagram back slash investing with mark Facebook, LinkedIn. It's all there.   Jesse (32m 32s): My guest today has been Mark McGuire, mark. Thank you for being part of working capital.   Mark (32m 38s): Thanks.   Jesse (32m 45s): Thank you so much for listening to working capital the real estate podcast. I'm your host, Jesse for galley. If you liked the episode, head on to iTunes and leave us a five star review and share on social media, it really helps us out. If you have any questions, feel free to reach out to me on Instagram, Jesse for galley, F R a G a L E, have a good one. Take care.Jesse (0s): Welcome to the working capital real estate podcast. My name is Jesper galley. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time   Speaker 0 (22s): E   Jesse (23s): This is Jessica forgotten and you're listening to working capital the real estate podcast. My guest today is Mark McGuire. He's the C I O of Herth capital. He's a full-time real estate investor and operator that's when mark at the time plunge into real estate sales, after running hard on his own for three years, working 80 to 100 hours a week, mark realized he needed help. He transitioned his real estate practice to Keller Williams in 2017 to learn how to build a real estate business. He hired and fired agents learn from his mistakes and then rehired them all over again.   Since 2013, mark and his team have brokered more than 300 homes with a total sales volume exceeding 83 million. They've also raised over 50 million capital for her fire, mark, you and I were just talking before we want to get into a lot of what you're doing now, which sounds like general partner and sponsoring deals. First of all, welcome aboard.   Mark (1m 13s): Thanks for having me Jesse excited.   Jesse (1m 15s): Yeah, I really appreciate it. So lots to talk about here. You've had a pretty, a pretty interesting background in terms of where you started out in your career and what you're doing today. And I want to get into for listeners the different asset classes that you're working with, but before we do that, why don't you take us back to kind of where you got into real estate? How that your story unfolded at the beginning?   Mark (1m 39s): Yeah, so real estate was something that was in my family. You know, I tried to go the college route net that really didn't align with my way of being a really I learned hands-on and I could, I could do the school thing, but I just hated it. And my mom's a teacher, so that went over really well. And then, you know, transition to my first entrepreneurial venture was playing in a band and we played, I was in a band professionally for seven years. We ended up getting a record contract with RCA records and I had had my I'm sorry,   Jesse (2m 15s): Small outfit.   Mark (2m 16s): Yeah, yeah, just a little bit. And I had had my real estate license at the time. And when we got the record contract, I remember, you know, this real moment of clarity of looking at how much money I was going to get as part of the contract that was guaranteed. And then how much money I had commissions pending with my residential real estate sales business. And I just was like, well, why would I sign this 14 to 20 year contract? Like that makes no sense. I'm, I'm going to be a slave. So went into real estate sales full time and had the opportunity to, to really start to understand business and learned about this whole thing called like a profit and loss.   I never went to school for any of it. So it was kind of just a giant trial by fire and I'm kind of became obsessed. And then after that, it was just like, how much more could I could I build? It was just a constant pursuit of growth.   Jesse (3m 8s): Fair enough. So you kind of run through the process, you're in music, which is awesome. What a, what instrument or where you vocals? What did you play?   Mark (3m 16s): No, I was actually, I was, I played drums. I did sing background vocals, but drums was really my main contribution.   Jesse (3m 22s): Nice, nice. I'm a big, big guitar guy. Just, just, just bought a, a PRS recently. And so I'm pretty, I'm having fun with that somewhere in the background there. So that's really cool. So RCA, I, like I said, it's not exactly a, a small outfit, so congrats on that. But even with that, you kind of look back and you start real estate as a path. So bring us up to speed today. I know that you're continuing to build wealth through real estate and you are LP on a few deals in various asset classes and running point or general partner on others.   Maybe you could tell listeners a little bit about what that looks like and how that process kind of evolved.   Mark (4m 3s): Yeah. So when I was in residential real estate sales, I spent a lot of time, you know, getting to run numbers on just single families. One thing that I was really fortunate to have was a family that was in real estate. So my, my grandfather was the main driving force and he owned a bunch of properties and I got the opportunity to work and be the, the, the assistant to the maintenance man. So I was like the guy that just said, Hey, there's a pile of trash, go over there, go take it and load it in the truck and throw it out.   So I did that for a couple of years and, you know, that's what it took to be in the band and have the flexibility to be able to get up and go whenever I needed to, they either had to go for on the site or they didn't. So there, it was just a matter of, you know, as I made money and, and, and generated income from residential real estate sales, my grandfather always told me, you know, real estate sales, you know, will make you money, but it will make you rich. And I don't know if you've ever heard of the saying brokers died, broke because so many people in sales, they make good money in commission, but then they, you know, spend it all and they don't get into assets that help you defer some of those taxes   Jesse (5m 19s): And build wealth.   Mark (5m 20s): Yeah. So it really came down to saying, Hey, I want to, I want to be able to get paid while I sleep. And so I've started buying condos and single families. And because this was 2013, 14 when the market was, you know, really, really low and then just kind of wanted to grow it from there and got interested in the commercial loan space. And, you know, I lived on as little as I could without feeling like I was, you know, I'm going to say punishing myself.   I wasn't like sitting there and eating ramen. No, I was never the ramen noodles guy. There's a lot of those people that, you know, they, I mean, I like pain, but I don't like it that much.   Jesse (6m 0s): You know? And I don't understand that maybe we said Italian upbringing. I'm like, you know, pasta is just this chief.   Mark (6m 5s): It is. But Robin noodles is pasta. It's just possible of sodium   Jesse (6m 10s): A hundred percent, exactly. Dumping, just dumping a bag of salt in there.   Mark (6m 16s): So I basically took it from, you know, just doing small single family and getting introduced to the concept of syndication I was trying to buy up. And it was just, I didn't have enough income. I didn't really know the way that the game was played. So syndication was my way to be a part of bigger deals. And I got, it was a, it was a question of bandwidth because you only had so much time to operate so many deals the right way to execute on them. And syndications for me were a way to keep my money moving at a good velocity without having to actually be the one driving the ship forward.   Jesse (6m 50s): So in those syndications where you limited partner in like the first one,   Mark (6m 55s): Yeah, I was an LP in probably seven or eight before I started on the GP side.   Jesse (7m 3s): Yeah. Which is that's fascinating to me because some, some would argue that it's, it's easier to get into being the LPN and definitely in a sense it is right. You're just, you're just providing capital. But I think the analysis is for somebody that's breaking into the industry, it's pretty, you know, ballsy to just jump into LPs with, without doing your proper due diligence. And I'm not saying that you didn't, I'm saying a lot of people, they see an investment and then they go in and that's why we had Brian Burke on.   He wrote the passive, I think it's passive real estate investor.   Mark (7m 36s): It's a hands-off hands-on that's   Jesse (7m 39s): Right. So we were both talking at the last BiggerPockets conference and what I found fascinating about this book, not just to plug it, it's just from the LPs point of view, which you never really read in a lot of these books. A lot of it is you're the GP you're running the deals. So that's pretty awesome. And then the other thing I, I feel in tell me if this is what you experience, I've told partners of mine before that we should be an LPN, this deal. And it's not necessarily because I think the deal is great. Is I really like the sponsor. I really want to see what, what he or she does with the investment.   And you learn so much about, okay, they're using this software, oh, they're G they're doing updates this way. I, you know, the last person I invested in did, did them this way. So I feel like there's a lot to learn from somebody who has already established themselves as an LP. Was that kind of your experience in those first, you know, six or seven, whatever they were.   Mark (8m 27s): So it's funny. I never went into syndication, investing, thinking I was going to be the guy syndicating. So I always went, I went into it because, you know, I could do my own deals. I knew how to run them. I knew how I knew how to pull the levers. I mean, it started as single family, right. Which is buy it at the right price, fix it and understand what the rental value is going to be at the end. Now, syndications do that same thing on a scale times, 100, 200 times. Right? So that's, it's the same concept, but it's kind of like if someone just gave you a graphing calculator and said, Hey, tell me what the graph looks like for this, you know, inequality, if you don't know how the basic calculus or algebra works behind it, then, you know, giving it, given that calculator is great, but like, you need to know how the, the math, how, what the long form version is.   And that's what single family was for me was the long form version. Now that I'm in a syndication, it's like, okay, what are the levers that we're going to pull here? How are we going to pull them? How much do we need to pull in totality in order to get up to what we can project? And at that point, like, I can pretty quickly go like, all right, this, this will work. Or it won't.   Jesse (9m 38s): Yeah. And I find that the one thing with single family and I I've had a very similar kind of history or, or path that you took. I mean, it can, it's very binary. It could go that you have a terrible experience or that you have a great experience in that is really predicated on the fact that you don't have a hundred tenants. You have one or two in a certain investment. So if it goes poorly, you feel like the whole thing is going poorly, where that the nice thing with apartments is you do scale it up and you're able to have economies and, you know, the losses, the winds help with the losses and things kind of even note.   But I feel like a lot of it is, is that mental barrier, you know, when, when you're starting out buying that first condo, the idea of you owning 80 units is, you know, so far away from, from your reality. So tell us how you moved from. So you moved from kind of what you're doing originally in real estate, into being an LP on these deals of whatever it was, six, six to 10 or whatever you invested, what was the, your experience or what was your outlook after seeing different investors? Do these deals differently?   Mark (10m 43s): I mean, you know, Brian Burke covered a ton of it in his book. So if you haven't read that, read that, I mean, it's, it's, it really sums up pretty much everything you need to know in more detail than you need to know it. So if I were to boil it down to brass tacks and make it really simple, I learned who communicates well, cause I value communication. If you don't communicate well, I don't wanna, I don't want my money with you. I like quarterly communication, monthly communications, just too much for me, because at that point, like I don't, if I wanted to have monthly communication, I'd be, I'd run the deal.   I, I want to know that my money is okay, but I   Jesse (11m 20s): Don't from the contractor.   Mark (11m 22s): Yeah. I, yeah, not interested. I wanna, I wanna know, you know, who does what they say they're going to do. And by that, that can be with respect to distributions that can be with respect to execution of the business plan. There's different ways that that shows up, but I'm paying a lot of attention to do they execute and do what they say, do they deliver? Because so many people and anyone can put something on a spreadsheet, say here's what this is going to do.   And this is gonna be worth X by this time. But if you don't go and see you, those, you know, quarterly execution updates, demonstrating that they're tracking performer, tracking their execution timeline. Even if the NOI doesn't track because the market's not, you know, didn't pan out the way you thought, but you're executing to the business plan. I'm not going to fall to sponsor for that. I just, wouldn't   Jesse (12m 18s): Sorry. Go ahead.   Mark (12m 19s): Those were the two, those were the two big things for me. And then I would say the, the third thing is you get to see who actually underwrites, conservatively, everyone, underwrites, conservatively. It's like, everyone leads with that. And when you   Jesse (12m 35s): Conservative figures here, we're just going to change this exit cap rate here. And there's your 30% IRR.   Mark (12m 40s): Yeah, exactly, exactly. It all. It all comes down to that. You get to see, you know, as the tide is going out here, I think we're starting to see the high water mark. You're going out. You're about to see who's swimming naked. It is going to it's it's gonna, it's going to come.   Jesse (12m 58s): Yeah. Well, it it's to your point of, you know, I don't necessarily see that you're going to track exactly like your, you know, your memorandum or your deck. You showed everybody, but it is this idea of like communicating on a regular basis, tracking the progress. It sounds like when I hear guys like you talk, you can almost hear a sales background because if you're a good sales person and in this case, like real estate sales, the first, the, one of the most valuable a number of them, but one of the mentors I had, one of the most valuable lessons I ever got was listened, deliver bad news, quickly, deliver it fast.   And you know, you, a lot of people try to run away from it, but listen, like, I'm going to give you a quarterly report. This is what's going on. I'm going to give it to you every quarter. I'm not going to try to run away from, with what's happening. We're obviously gonna make sure that, you know, things go as smoothly as possible. But I think communication is huge. And in the long run, even though it hurts those days where you're delivering bad, you know, bad information, it's important that you do that for your credibility.   Mark (13m 58s): I don't, I would say not don't just deliver bad news, but deliver the solution, delivery, deliver your solution to the problem, along with the problem. Because, you know, coming from the days of residential real estate, if I went and delivered a home inspection report with a bunch of bad news and didn't provide avenues to solve it, then like there's full on panic. And everyone's like, wow, man, this is terrible. And people just go, you know, off the cliff into the deep end.   Jesse (14m 28s): Yeah, no, I couldn't, I couldn't agree more. So let's get into a little bit about the LPGP relationship. So for those that don't know, I think most of the listeners are familiar with the general partner and limited partners. Basically try to give me your, your perspective of what you're looking for. Let's start on the LP side when you're looking at a general partner. So you talked about somebody who's a communicator, somebody who's going to be, you know, tells you what the, what they're going to do is, is in communication with you.   But what are, what are a couple of red flags? You know, we can pull them from, you know, from Brian, but we've got you here and I'd like to get your thoughts on it.   Mark (15m 8s): Yeah, here's what I would say. I always want to know what are the assumptions in the model? I always ask, you know, what are your rent bumps? That's a big one because you can go and make revenue look a lot higher than it really can and, and will be if you're over aggressive, I want to know. And that kind of goes along with how are you to creating the value? So is it through, you know, rent?   Is it through adding additional square footage in self storage game? Or is it adding, you know, like converting units that, and, you know, chopping them up and making them a little smaller, but I also want to know, you know, what's your exit cap rate assumption. That's such a big lever. That's so just not understood it. The general person does not understand how exit cap rates are such a powerful lever in the value gaming   Jesse (16m 8s): Return.   Mark (16m 9s): Oh yeah. So that's a really, really, really big one. And if you don't know, the re the relationship net operating income divided by cap rate equals your asset value. So understand if you're going in buying, you know, a cap rate and it's, and it's hard to set it because just cause you're going in at a five cap on actual is there could be a ton of runway in the, in the, in the gross revenues because it's not being managed well. So, you know, sometimes people think that they're getting a steal, you're paying a high cap rate on something like that. But if, you know, as the operators, a ton of runway on the rent roll and fine, give them a five cap and just know that you're going to double the revenue and then you're going to sell it at a six, but the double revenue still generates the value.   Jesse (16m 50s): Yeah. I think one thing I'd tell a younger investors or people that are trying to understand the, the usefulness and sometimes the work you should throw cap rates out of perfect illustration is you can have a building with a 1% cap rate. And it's an absolutely amazing investment because you, you have vacant possession of a building in a great market. So, you know, this idea of, of cap rate being the be all and end all, you know, you have to really factor it into our, are we a stabilized asset? Are we fully tenanted the other piece too, of, you know, just so listeners are following along with exit cap rate, or sometimes you'll hear it called the reversion if you're in, in college and finance right now.   So this idea that you have to apply a cap rate to that last year, or say a five-year investment that last year net operating income, just like mark was saying here, that is an assumption in the deal. And the common wisdom is that that cap rate should be technically higher than your entry cap because the building has degraded over time or, or kind of, it has gotten older, the actual structure, not the land and that cap rate, you know, you can just do the math right now. If you have a million dollars NOI divide that by 4.5 or divided by 5.5, you're going to see a drastic difference in the valuation.   And that's going to really affect the levered return on investment. So that's a great point. Are there any, w you know, when you look at an investor or an investment, and you're seeing the, the debt side of the equation, the mortgage, what do you like to see there? Is there anything that you're looking out for that you're keeping your eye on specifically?   Mark (18m 22s): I mean, I'd like to understand recourse, is there recourse on it or is there not because if there's recourse on it, you know, the person who's running the deal has more skin in the game because when you're an LP, generally, I'm not going to say always, but pretty much always you're at risk. Capital is only the capital, the equity you contributed to the, your LP position. Whereas the sponsor who's on the GP side, they're the ones taking the risk, signing on the debt.   So most, you know, most, most people in, in multi-family, and, and in like industrial, they're going to go for CMBS or life insurance company, life code debt, and they're going to go for non-recourse, which is smart. It's very smart. But if someone like self storage, a lot of times we're going for like regional banks and regional banks don't want to give non-recourse, they'll give partial recourse. Yeah. So I still have skin in this game if I don't do this thing. Right.   And versus someone on a multifamily, if the project totally goes sideways, they hand the keys back and go, Hey, sorry, this is your problem. Like, I tried my best. And you as the investor who put up the check, you're out the money and the guy who ran the deal just lost the reputation. I mean, that's, that's what you're really losing, but they didn't lose cash. So to speak.   Jesse (19m 41s): Yeah. That's a great point. I, the last investment that we were running GP on, I remembered speaking with an investor and he said, and it's not a dumb question. It's a, it's a logical question. They said, well, you know, how much are you investing personally? You know, I thought it would be more. And I said, my answer to him was, listen, it's, it's the wrong question. I'll answer it. But it's the wrong question. And I'll tell you why. So I tell him how much we're investing in the deal. But then secondly, I'm saying that we're signing on this debt and it's, this is, this is not debt.   This is basically my unborn kids. If everything goes wrong here, that's what gets affected because we're personally guaranteeing the debt. I th that's a question I think is important because at the end of the day, if I know that the GP is really, like you said, has complete skin in the game, that changes the dynamic for me, for sure.   Mark (20m 30s): Yep. Yeah. I mean, and, and honestly, like I, especially right now, I will want to see lower leverage. Multifamily investments have been going 80% with a 24 month IO interest only period. And on a 30 year amortization schedule. So talking high leverage with very little principal pay down with, so your 30 year, the higher your amortization period, the, the slower you pay down your principal loan balance. And then when you go and you add a 24 month interest only period on the front of that, you're paying no principal for two years, and then you're paying small principal for the three years.   So if you're holding it for five years, you're really banking on the market to go up. So at the time of disposition, you're not in disposition to sale, you're not in a place where you're going to get, you know, you're gonna be under underwater. And then at that point, you're you got a deficiency. So you're paying to sell the property, or you're having to refi at that. Five-year mark. So I, I hate high leverage right now, like 80% leverage scares the shit out of me and interest only periods on loans.   Also equally terrifying right now for me, unless you're at a super low leverage point.   Jesse (21m 46s): Well, it's like when you describe it that way, you're like the big short 2.0 there where you have like this balloon, or, you know, you have an IO period. And then all of a sudden it kicks into to have whatever you're looking for, stabilize that after that. But I think, I think what we've learned over the last six months, or even shorter than that with interest rates is that LTV is important to a certain extent. But what most banks that we're dealing with, what they're looking at is that service coverage right now, how much more do you have to pay then than your actual servicing of the, of the mortgage or debt.   And I think that is a, probably a prudent way to look at it, but yeah, I think, I think you're right. I think most of the going forward this next year, I think these high, these individuals or companies that are doing very high loan to value are kind of setting themselves up to potentially be in a little bit of trouble if you know, the economy goes the wrong way.   Mark (22m 39s): Well, and so then the question becomes, okay, so let's say you got a five-year term with a 24 month IO at 30 year am. Well, do you have extensions beyond that? That will allow you to go and buy some time if the market doesn't, you know, the market's not cooperating with your exit timeframe that you originally intended. So that's understanding, you know, the ability to have extensions on the backend. Can you buy an extension or does the rate reset? Meaning like now you have to go and go to, you know, whatever prime is or prime plus, whatever the agreed upon amount is in the loan docs.   And this is the thing until you operate, actually, you don't even know how to answer these questions. You don't even know what this shit means. Let alone have the ability to ask the question to be able to actually ascertain that answer.   Jesse (23m 29s): Well, I, like you said earlier, just go on a podcast, here's your credibility. So I want to kind of jump to what you're kind of looking at right now. What are deals? You know, what, what's your target and are you doing more self storage? You're looking at apartments,   Mark (23m 46s): We're all self storage. I mean, you know, with hearth fire, all we do is self storage. That's, you know, singular focus. I mean, we just want to go and be fantastic in that space and just crush that space and know it inside and out that said the challenge right now is with rates ticking up, the more money you borrow, the bigger the deal, the rate hikes are because it's compounding a problem. So on a mortgage, as a residential, and you're borrowing 250 or 300,000 bucks, that's such a big deal.   It does impact, but not a huge deal. If you're going to borrow 5 million bucks that little, you know, half, half a point and rate can really impact your, your, your monthly debt service. And at that point, it impacts what you can pay and your debt service coverage ratio and what you can pay for, for the property. And right now, sellers, haven't adjusted to   Jesse (24m 45s): A hundred percent   Mark (24m 46s): New debt terms like seller sale price expectations are still at, you know, all time low rates. And there's a gap right now. And the thing is, is there's a lot of stupid that hasn't burned off yet. There's a lot of people still paying way too much. Yeah. I don't know when that stops. So it's like, we're just in a mode of sticking to our guns, putting in LOI, but being patient.   Jesse (25m 9s): Yeah. It's very, yeah. The price that pricing is so sticky because people, once they anchor to it, like, you know, just for on the kind of the sales side with real estate, once you stick to a price, you do not want to come off it. We have clients right now that we're actively, you know, we've marked down some prices depending on the asset class, but people are starting to say, well, here's my offers here because cost of capital is going up. And our clients are just like, no, like the prices that shouldn't affect price at all. It's like, no, it does. And it should. But the fact that there's that disconnect.   It'll be interesting to see how long this lasts. If we, if we stay in this kind of environment, even if the interest rates kind of stay stagnant, I feel like the prices have to reflect, have to adjust to it. But I think it's definitely the, there is a time period where people do not want to mark down because they're just used to what we've been living through for the last 10 years, to be honest.   Mark (26m 1s): Yeah. It'll be real interesting. I mean, we've been up until the right fence 2012. And so there's a lot of sponsors, syndicators, whatever you want to call it that have operated like crap that have gotten away with poor execution and poor operations and poor, poor deal management. And now that pricing is reverting and you're going to start. And I mean, I don't know. I think we're right now, we're kind of at the crest and now people are questioning like where value sits, right?   This instant, which whenever there's uncertainty in pricing, that usually means a price. The pricing is going to start to come down and how much it comes down, who knows that depends on rates and how much move, but prices are going to come down. And it really boils down to like, if you don't execute well on your business plan and you leave money in the table as a respect to your NOI, when it comes time to exit, it's going to cost you and that's going to be, that's going to cost investors that returns.   Jesse (27m 1s): Yeah. Yeah. I couldn't agree more. It's it's so hard to kind of do the analysis on, from an economic standpoint where we had Peter Lindemann, who's a professor at warden. He kind of wrote the book on like real estate finance. And we're talking about the economy and we have these k

The PM Team w/Poni & Mueller
JuJu's farewell, Mike DeFabo

The PM Team w/Poni & Mueller

Play Episode Listen Later Jun 13, 2022 39:25


JuJu Smith-Schuster made his final farewell to Pittsburgh. The guys discussed his lasting legacy in Pittsburgh and if he's remembered for hard-nosed play or being goofy off-the-field, or both. Penguins insider Mike DeFabo joined the show. Mike said the Penguins were upset about the plays made by the Rangers in the series against the Rangers that left multiple players injured, including the one that kept Sidney Crosby out of key time in Game 5 and all of Game 6. Mike talked about what has happened with the team since the playoff departure, including Brian Burke, who is still the current President of Hockey Operations. Poni asked Mike why Burke hasn't talked since season's end. Mike discussed the status of Kris Letang and if he or Evgeni Malkin return to the team next season. An interesting name Mike threw out was Vincent Trocheck to possibly replace Malkin if he departs.

The PM Team w/Poni & Mueller
Mike DeFabo with the Pens latest

The PM Team w/Poni & Mueller

Play Episode Listen Later Jun 13, 2022 13:33


Penguins insider Mike DeFabo joined the show. Mike said the Penguins were upset about the plays made by the Rangers in the series against the Rangers that left multiple players injured, including the one that kept Sidney Crosby out of key time in Game 5 and all of Game 6. Mike talked about what has happened with the team since the playoff departure, including Brian Burke, who is still the current President of Hockey Operations. Poni asked Mike why Burke hasn't talked since season's end. Mike discussed the status of Kris Letang and if he or Evgeni Malkin return to the team next season. An interesting name Mike threw out was Vincent Trocheck to possibly replace Malkin if he departs. 

Locked On Penguins - Daily Podcast On The Pittsburgh Penguins
Could the Penguins look to Chicago for some forward help?

Locked On Penguins - Daily Podcast On The Pittsburgh Penguins

Play Episode Listen Later Jun 11, 2022 33:43 Very Popular


Everybody's working for the weekend, right? Hunter starts the show with some Penguins front office news as Kevin Acklin is promoted to David Morehouse's former position. He discusses what that means for the short and long-term of the franchise, plus how he and Brian Burke look to be running the show for the Fenway Sports Group moving forward. After that, Hunter continues the season reviews with Casey DeSmith. Was it a tale of two seasons for him? Hunter looks at how he started and then how he finished as his season came to a close in the worst possible way. He then discusses the pros and cons of bringing him back next season and if the team should look to find someone who's more reliable and more steady. IF the Penguins do bring him back though, what would the AAV look like? Hunter gives his best guess before looking at another potential trade target that would make the Penguins: A) Younger and B) faster. He's a player that's had some struggles with the Blackhawks, but also someone who hasn't entered his peak years yet and is an RFA, similar to Kasperi Kapanen. Finally, Hunter previews Game 6 of the Eastern Conference Final and how the Lightning are taking a page out of the Penguins' book for slowing the Rangers down. Support Us By Supporting Our Sponsors! Built Bar Built Bar is a protein bar that tastes like a candy bar. Go to builtbar.com and use promo code “LOCKED15,” and you'll get 15% off your next order. BetOnline BetOnline.net has you covered this season with more props, odds and lines than ever before. BetOnline – Where The Game Starts! Rock Auto Amazing selection. Reliably low prices. All the parts your car will ever need. Visit RockAuto.com and tell them Locked On sent you. Athletic Greens Athletic Greens is going to give you a FREE 1 year supply of immune-supporting Vitamin D AND 5 FREE travel packs with your first purchase. All you have to do is visit athleticgreens.com/NHLNETWORK. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Kelly and Company
Book Club: Burke's Law, by Brian Burke

Kelly and Company

Play Episode Listen Later May 31, 2022 18:00


On our monthly Book Club, we review Burke's Law, by Brian Burke, recommended to us by Producer Jeff Ryman.

REI Clarity
The #1 Way to Manage Risk, with Brian Burke

REI Clarity

Play Episode Listen Later May 31, 2022 34:44


Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. On the show today, we have one of the behemoths in the CRE world, a returning guest, Brian Burke. Brian has been investing in real estate for 30+ years, he has tons of doors in his portfolio and he's a contributing member to the Bigger Pockets community. In our conversation, he gives us insight into how risk works in his portfolio, how he thinks about it, and how he navigates it. Learn more about Brian and his journey at shineinsurance.com/managing-commercial-real-estate-risk! “Nothing gives you a better education than experience. And especially bad experiences.”   4:10 At the beginning of the show, Brian talks about how he gained experience in real estate investing. According to him, adversity and difficulty are the greatest education and through them, we can gain a lot of experience.   During his long career, Brian realized that the best way to mitigate real estate risk is to not have too much debt and not be over-leveraged. His advice for new investors to avoid over-leveraging is to slowly keep expanding their base of investors and always invest within their means. “When you have a property that goes up in value as quickly as in this market, you have to sell it and cash in.”   14:44 Brian explains the most significant external pressures on investors in the current market.  The biggest risk is labor shortage. It's difficult to find good people to manage properties. Intense demand for income real estate is causing prices to run up incredibly high.   According to Brian, in this market, it's very easy to sell properties as everything is appreciating fast. His advice for buyers is to be thoughtful about the assets they buy. Some assets still make sense to acquire because the rents are also going up tremendously. About Our Guest, Brian Burke Brian has acquired over 800 million dollars worth of real estate over a 30-year career including over 4,000 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. Brian has subdivided land, built homes, and constructed self-storage, but he really prefers to reposition existing multifamily properties. Brian is the author of The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications and is a frequent public speaker at real estate conferences and events nationwide. Mentioned in the show: https://praxcap.com/ Brian Burke - The Hands-Off Investor His LinkedIn Shineinsurance.com www.shineinsurance.com/managing-commercial-real-estate-risk Jeremy's LinkedIn 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: https://www.shineinsurance.com/ballpark/    Special thanks to Brian Burke 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 Apple Podcast, Spotify, or wherever you listen to podcasts    While you there, please RATE & REVIEW the show    SHARE with friends   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group 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: Youtube – Blog – Podcast If you enjoyed this episode, then you'll love these ones: How To Passively Invest In Real Estate, With Brian Burke Define & Achieve Your Desired Outcome, John Blanton 110: 3 Silos Of Risk

Kelly and Company
Full Episode - 1329

Kelly and Company

Play Episode Listen Later May 31, 2022 106:22


The NHL playoffs are heating up with some enticing matchups in the conference finals. Brock Richardson tee's that up in his sports report. Eager to travel again? Frances Wong shares tips to stay healthy while traveling. Victoria Nolan highlights the new AMI Original series, We Are One, which begins airing this Thursday, June 2nd at 8:30 PM Eastern on AMI-tv. Montreal Community Reporter Mathieu Rochette features the new accessibility local business and services guide. Jaws offers a feature to configure settings based on websites. We get the details with Michael Babcock. On our monthly Book Club, we review Burke's Law, by Brian Burke, recommended to us by Producer Jeff Ryman.

Locked On Canucks - Daily Podcast On The Vancouver Canucks
Henrik & Daniel Sedin: The Greatest Vancouver Canucks of All-Tine

Locked On Canucks - Daily Podcast On The Vancouver Canucks

Play Episode Listen Later May 25, 2022 33:21


Welcome back to Locked On Canucks, the show that, of course, keeps you locked in on all things Vancouver Canucks.Justin has a very special today for all of you as the Greatest Canucks Series concludes as we talk a walk down memory lane and reminisce on the careers of Henrik and Daniel Sedin. There is no question that the Sedin twins were the two greatest players in Vancouver Canucks history. From the unique draft day moves from Brian Burke to acquire to twins, to the tough early years, and then the rise to superstardom Justin has it all covered. We will also discuss the Sedins legacy off the ice, their leadership within the Canucks franchise and their charitable actions towards the city of Vancouver were perhaps greater than their on-ice performance. Learn more about your ad choices. Visit podcastchoices.com/adchoices

How to Scale Commercial Real Estate
Retiring in 2 years Through “Aggressive” Rental Property Investing

How to Scale Commercial Real Estate

Play Episode Listen Later May 22, 2022 19:06


Do you want to work only because you want to and not because you have to?   Rachel Richards has built a real estate portfolio of 38 units by the age of 26 and is now passively earning $20,000 per month. In this episode, she tells us how she stopped trading time for money by investing and opening up passive income streams other than real estate. She also shares why she continues to work and find ways to challenge herself even after “retiring” and achieving financial independence.   Rachel Richards is the best-selling author of “Money Honey” and “Passive Income, Aggressive Retirement.” Listen in to know more about her journey!   [00:01 - 07:54] Living off of $20,000 in Passive Income Monthly Rachel on being a finance nerd and on her experience in the industry Why people should look for off-market deals This is how she found their first duplex From self-managing to hiring property managers to self-managing again The biggest mistake they made so far Don't be cheap! Owning real estate out of state   [07:55 - 14:15] Passive Income Strategies You don't have to own a rental property to generate passive income Self-publishing and making $4,000-$10,000 a month  Rachel's goal to make income more and more passive Being a limited partner Setting boundaries and being more intentional  Looking at opportunities in mobile home parks and self-storage Screening syndications and doing due diligence   [14:16 - 17:55] Creating Impact Through Her Work Living freely and having time for things that fulfill them Writing to inspire others, especially women Doing what serves them and the people around them   [17:56 - 19:06] Closing Segment Reach out to Rachel!  Step into the path of financial freedom with Rachel's FREE Passive Income Starter Kit! Links Below Final Words Tweetable Quotes   “Being cheap can cost you a lot more money in the long run. This is not the place to cut corners when you hire people like contractors and property managers.” - Rachel Richards “Don't be afraid to invest out of state. It really forces you to be an efficient property manager and owner of real estate.” - Rachel Richards “I want to make a big impact and help as many people as I can. That's what I'm passionate about, especially helping women.” - Rachel Richards -----------------------------------------------------------------------------   Connect with Rachel! Follow her on Instagram and visit her website, Money Honey Rachel. Get her FREE Passive Income Starter Kit, and check out her books, Money Honey and Passive Retirement, Aggressive Income, to know more about money management, personal finance, and investing!   Resources Mentioned: Rich Dad Poor Dad by Robert Kiyosaki HOLD by Steve Chader The Hands-off Investor by Brian Burke Connect with me:   I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.     Facebook   LinkedIn   Like, subscribe, and leave us a review on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on.  Thank you for tuning in!   Email me → sam@brickeninvestmentgroup.com Want to read the full show notes of the episode? Check it out below:   Rachel Richards  00:00 The great thing about moving away is that we've been forced to streamline, and systematize all of our processes and doing that has made self-managing so much easier. I was so afraid to move away. But owning real estate in another state is so freeing and it's a lot easier than I thought. So if that's anyone's hang-ups if you're listening, to don't be afraid to invest out of state, it really forces you to be an efficient property manager and owner of real estate.   Intro  00:27 Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we'll teach you how to scale your real estate investing business into something big.    Sam Wilson  00:39 Rachel is the best-selling author of Money Honey and Passive Income, Aggressive Retirement. She built a real estate portfolio of 38 units by the age of 26. Rachel, welcome to the show.   Rachel Richards  00:50 Hey, Sam. Thanks for having me.   Sam Wilson  00:52 Hey, pleasure's mine. Three questions I ask every guest that comes on the show: 90 seconds or less, where did you start? Where are you now? How'd you get there?   Rachel Richards  00:58 I started my real estate investing journey in 2017. My husband and I purchased our first duplex that year. And within two years, we scaled our real estate portfolio from zero to 38 units. When people hear that they make some assumptions. So I'll get those out of the way. I'm not a trust fund baby. And I never made six figures from a job or career. So let's see, where am I? Now I am now investing in syndications. I've invested in eight syndications as LP as a passive investor, and I'm now financially independent and living off $20,000 per month in passive income.   Sam Wilson  01:35 Wow, that is really cool. Congratulations and a job well done. Zero to 38 units in over how many months was that?    Rachel Richards  01:43 24.   Sam Wilson  01:44 24 months. Okay, so you're buying a property? We're actually more than one and a half properties a month.   Rachel Richards  01:50 It was six buildings. 38 doors.   Sam Wilson  01:53 Six buildings. 38 doors. That helps. So you're not, one and a half transactions every single month. Got it? Six buildings. 38 doors. That's cool. Absolutely. Love it. Is this tell me? Is this all you're based in Denver, Colorado? Is this all in Denver?    Rachel Richards  02:06 This was all in Kentucky where I lived for 20 years.   Sam Wilson  02:10 Okay, cool. So you had some experience, obviously, in the local market there? What did you do? I mean, to identify that many assets and that short of a time, what were you doing to do that?   Rachel Richards  02:21 So I've always been a finance nerd. And my whole life proud of it. And I read Rich Dad, Poor Dad in high school. I, after college, I was a financial advisor. I also took a couple of jobs, working with a real estate investor and learning from him, and then working under a realtor. So I did have some experience in the industry. And I read every book I could get my hands on. One of my favorite ones is this book called Hold by Steve Chader. That one was really helpful in learning how to analyze properties. One of the important things I think, for people to do right now is look for off-market deals because the market is so intense. The MLS is saturated and competitive. And it's really difficult to find good deals if all you're doing is looking at the MLS. One of the ways we found our first duplex was pretty much an off-market deal. So we looked at the withdrawn and cancelled and expired listings on the MLS. And I was reaching out to those list agents to find out what happened. You know, why did the seller take it off the market? Did they change their mind? Are they is it going to come back up? And I remember feeling like I was pestering this one list agent about this duplex for months. But really, I was just trying to be polite and stay top of mind. And when the seller was going to relist it, she reached out to me first and she said, Hey, this is about to come back on the market. Would you like to make an offer, which was really beneficial because I could make my offer before anyone else did. And that is how we got that first duplex.   Sam Wilson  03:45 Wow, that's cool. Now, did you self-manage these? Or do you self-manage these? Are these be plugged in the property management company? How do you handle that?   Rachel Richards  03:54 We self-managed until we got to about 26 units, I think. And here's the thing, my husband and I were working full time. So we were working 40 to 50 hours a week, I was writing my book in the evening. And we were acquiring and managing our rental properties on our own on the weekends and everything. So once we got to 26 units, we were like we definitely need a property manager. And we've made our share of mistakes, hiring property managers as well. But now to this day, we're back to self-managing.   Sam Wilson  04:20 Okay, that's really Yeah, that's interesting, because you at some point, you're right. You need that outside help. But it sounds like there were some mistakes made along the way where that help wasn't so very helpful.   Rachel Richards  04:30 Absolutely. This is our biggest mistake to date. So my mistake is that I tend to be too cheap and being cheap can cost you a lot more money in the long run. This is not the place to cut corners. When you hire people like contractors and property managers. You don't cut corners here. So what we did is we were looking for a property management company and we you know, they charge you anywhere from 10 to 12%. And we had this couple that was working for us doing things like maintenance lawn care, they were so hard working, some of the hardest working people we've met, and they always went above and beyond. So we figured let's make them employees of our company, and they can be our property managers. We can save some money and be a little more hands-on in the way that we are training them and managing them to manage our properties, felt like a win-win, right? It was not, it was not a win-win. It was a win-lose. So everything started off great. And then about six months in my husband went to pick up rent from the onsite lockbox is one weekend, and he noticed a lot of rent was missing. And it was not just the normal tenant or to paying late, it was a significant amount. So come to find out this couple had stolen $6,000 in rent that weekend. And we found out they had been squatting in vacant rooms and units in our properties for almost a year. Devastating. Yeah, it was one of those occurrences where I was like, we should quit. This is not meant for us. This is awful. And that lasted for a few days. And I got over it, but it was devastating and such a violation of trust. And the moral of the story is that, again, this is not the place to be cheap. You need to hire a licensed, insured, properly-permitted, you know, everything reputable property management company, because if we had done that, and one of their employees had stolen rent from us, they would have been liable for the damages, not us. So it's embarrassing to share. Because in retrospect, it seems so obvious. It's so naive of us to have done that, but I share it in the hopes that others will learn from my mistake.   Sam Wilson  06:24 Yeah, no, thank you for taking the time to share that that is painful. I mean, I'm curious, you said your husband had gone to pick up rent from the on-site lock boxes. Now you live in Denver, and these properties are in Kentucky. So were you flying back to go pick up rent monthly?   Rachel Richards  06:39 No, we were still living there at the time. So we only moved to Denver a couple years ago.   Sam Wilson  06:43 Got it. Okay, cool. Wow, that's really intense.   Rachel Richards  06:46 Yeah. Now, we're not quite that dedicated. But the great thing about moving away is that we've been forced to streamline, and systematize all of our processes. And doing that has made self-managing so much easier. I was so afraid to move away. But owning real estate in another state is so freeing, and it's a lot easier than I thought. So if that's anyone's hang-ups if you're listening, that don't be afraid to invest out of state, it really forces you to be an efficient property manager and owner of real estate.   Sam Wilson  07:16 You know, I've heard that and I, let's see, do I own anything? I own stuff that's four hours away. So it's, you know, I guess that's, I mean, obviously involved as a general partner on deals that are much further away than that. So I get it. Yes, I'm trying to remember what that state where you're mentioning, we're allowed to and maybe hearing this and going, Gosh, I can't quite wrap my head around it. But you does all the things you just mentioned, where it's like, oh, you know what, I've got to find a way to solve this without going to the property. Got a way, to find a way to solve this, we're now taking all electronic payments, there's no checks, there's no cash being dropped off, like this is the way we do business. That's, in fact, a very freeing, freeing thing to get in place. I think once you've done that, tell me about your self-publishing journey. I know you've written the book. And I know I read the title out here and we kick this off, and I can't remember what it was now. But tell me about the title of that book. And then tell me about what's in the book and why you wrote it.   Rachel Richards  08:08 Yeah, so one of the great things about passive income is that you don't have to own rental property to create passive income. And so a lot of the things that I hear from people is like, well, I don't want to be a landlord, Rachel, I want to create passive income, but I don't want to be a landlord. And the great thing is, you don't have to be a landlord to generate passive income. There's a lot of other ways to do it besides investing in real estate. I have found self-publishing to be an amazing way to generate passive income. So in 2017, I self-published my first book Money Honey and it was the thing I did because I used to be a financial advisor. All my family friends came to me for financial advice, which I loved. At the same time, I thought, Well, why aren't they learning on their own? You know, why aren't they reading books, listening to podcasts? And I had this aha moment where I realized, oh, yeah, personal finance is boring, right? It's overwhelming. It's complicated. It's intimidatin for most people. No wonder people don't like to learn about it. So I thought to myself, How can I make this topic sassy and fun and simple? And that's where the idea for Money Honey came from. So I wrote it. I was really excited. Something I felt very compelled to do. I didn't really think I was gonna make money to be honest. I was so hesitant to invest in it. So I spent like $560 on the book launch thinking I would never make that money back. It was just a passion project. But I published it in September 2017. And to my surprise, to this day, it just took off. It resonated with female millennials, it started selling, spread by word of mouth. I was making $1,000 a month in profit for the first year. And I launched another book. And last year, I believe I made about $99,600, or something and profit from my two books. I was like, so close to becoming a six figure author, but it's still really amazing to think you know, these books now bring in anywhere from four to $10,000 a month in passive profit and it's just an example of you know, you don't have to invest in real estate to create passive income streams.   Sam Wilson  10:05 Right. No, that's absolutely true. I mean, it can be books, it can be other businesses. It can be, you know, a variety of things that you do. Tell me on, since we're talking about the money side of things. I know you said you're making about 20,000 bucks a month off your rental property off a 38 units. That's over 500 bucks per month profit per unit.   Rachel Richards  10:26 Yeah, and it's not that's including all my passive income streams. Okay. Yeah. So at one point, when we had 38 units, we were making 10 grand a month from those 38 units. It was about $260 per door.    Sam Wilson  10:26 Got it. Okay. Yeah, I was gonna say that's, it sounds pretty incredible. 500 bucks a door in profit every single month. So that's really, really awesome. Now, you're a limited partner in eight syndications, why are you going this direction, and not buying more active real estate?   Rachel Richards  10:55 So great question, real estate investing for my husband and I was always a means to an end, we never wanted to build this huge empire. And our goal was to get to 10k a month in profit from our rentals. And once we did that we wanted to stop, that was sort of our fat fire number. We could become financially independent and not have to work anymore once we got that number. So in 2018, we achieved that, and we stopped acquiring real estate and it shocked some people, you know, they were like, Well, why not build an empire of 200 doors or 250 doors? And we were like, well, that's not what we want to do. So we stopped. And I'm proud that we were able to do that, because you can really get caught up in you know, enough is never enough. And sort of always moving that goalposts further, but we were able to stop and be intentional about what we wanted to do with real estate. So that was why we stopped acquiring. Now why we've transitioned things is because the goal is to always make the income streams more and more passive. And back then when we were building up this empire, we had a lot more time than money. We started off pretty broke, in my opinion. Again, we didn't have, like I wasn't a trust fund baby. I wasn't making six figures, we were just scraping the money together to get 20% down payments, right? We did have time and we were willing to hustle to make cash flow. Now that we have a lot more money, we would rather invest in syndications, which are a lot more passive. So last year, we sold three of our big multifamily buildings. And we've transitioned that money into syndications. And it's a much more passive way to directly own and invest in real estate. So that's why we sort of change strategies.   Sam Wilson  12:31 Gotcha. Let's talk about what you are investing in right now. Are there certain asset classes you're favoring? Where do you see opportunity as a passive investor?   Rachel Richards  12:42 So I favor multifamily, just because I'm so familiar with it. And I can easily analyze those syndications. So that's my comfort. However, I really want to invest more in self-storage and mobile home parks. Because I think there's a supply-demand thing with self-storage right now. And definitely with mobile home parks, because it's a scarcity thing. It's a limited resource. And there's only so many and you're not allowed to build any more mobile home parks. So I'm really wanting to invest in more mobile home parks.   Sam Wilson  13:07 Right, you obviously talk about mobile home parks, you know, commonly on this show, and you've hit a lot of the highlights that kind of go into why that's still a great asset class, a great asset class to be involved in how have you gone about picking the sponsors that you are working with?   Rachel Richards  13:24 Great question, because picking the sponsor is almost more important than picking which syndication you're investing in. Because really, when you're deciding to invest in a syndication, you're placing your money with the person, you're trusting the person, and you need to find somebody that has enough knowledge, who's done this before successfully, who has the experience, and who's trustworthy. I've heard horror stories of syndicators running off with you know, 50k of somebody's money. And yeah, they'll eventually get caught and get thrown in jail, but someone's not gonna get their money back. So I definitely want to find good trustworthy people. I was making the mistake at first to try to go on Facebook groups and LinkedIn and reaching out to people. But the problem with cold contacting somebody is that no one can speak for them. No one can vouch for them for me. So the best way in my opinion, to find good sponsors or syndicators is to be connected to them through a mutual contact or friend who knows them and trust them and has already invested with them. So that is what I now do. I have a good network. And a book that I really recommend is the Hands-off Investor by Brian Burke. It is so good. It's very dry. It's very technical, even for me, and I'm a finance nerd. But it's something if you read it, like have everything you need to know to screen syndicators and to do due diligence on a syndication.   Sam Wilson  14:43 Righ. Yeah, I think I've read that book before. It's been a while, but I'll put that back on the list. And we'll certainly make sure we reference that. And also the whole book by Steve Chader. Yeah, we'll reference both of those there in the show notes. Questions for you. You said earlier when you guys had hit you or number that you said, Hey, we had units, X number of dollars in passive income. And we don't want to grow any bigger. That's not what we want to do is go bigger. What did you want to do?    Rachel Richards  15:11 We wanted to just live a free lifestyle, we wanted to work when where and if we want, a lot of people get bothered by my use of the word retire, because I still work. I still work on my business, I teach women how to invest in real estate, I have books, I have courses, I have programs. But the thing is, I work now because I want to not because I have to. And we now spend a lot of our time hiking and traveling. And we have free time. And we work again, because we have the choice to work. And that's because we want to do so it's about having the time to do what is fulfilling to us and not have to trade our time for money anymore.   Sam Wilson  15:52 Right. Absolutely. So what does the next five to 10 years look like for you? Because let's presume I mean, at some point, forgive me for my projects, you might be like, I hate this guy. You know, at some point, you know, the book sales may drop off that income stream may dissipate. And then if you're doing courses or some other stuff along the way, do you just keep building some other things that are generating passive income along the way? Is that really the plan? Or is there something there that you guys are shooting big for?   Rachel Richards  16:18 There's I have a lot of ideas, I have a lot of ideas and not enough time to implement them all. But one thing I know about myself is if I'm not building and creating something, I'm bored, so I don't see myself ever stopping or slowing down from that regard, I want to make an impact. And I want to make a big impact and help as many people as I can. That's what I'm passionate about, especially helping women. So I want to write more books, that's for sure. One of my dreams is to write a fiction book, actually, I've thought about becoming a general partner and being a syndicator myself or helping to raise capital. So that's a thought that I have, I definitely want to continue finding ways to invest in real estate, maybe as a silent partner, hard money lender, just continue to find ways to just do more things and challenge myself.   Sam Wilson  17:02 Got it. I love that. I think that's the fun part about it. And I really appreciate how you guys have defined what it is that you want. I think a lot of people, you know, they keep doing like you said they keep adding on to keep moving the goalposts because they see, well, that guy has a billion dollars in assets under management, why shouldn't I? Like, you know, why should I go out and do this or do that. But in the end, it was not what it is that it serves you or the people around you, it's probably not that fulfilling. So you got to do what it is that's in your heart and in your goal list of things to do. So I really admire you and your husband's ability to set limits on it and say, This is what we're building. And then we're done. At least with the real estate, you know, portfolio part. Yeah, obviously, like you said, you're either building or you're bored. You're always gonna be building something.   Rachel Richards  17:47 I think that's my new tagline. I like that I'm either building or I'm bored...   Sam Wilson  17:52 Guys, that's me. I wrote, building or be bored. So yeah. So that's really, really cool. Rachel, I've certainly enjoyed this. Thank you for taking the time, really to come on today and share with us your story of what you have done, are doing in real estate, publishing and everything else. I think it's a really cool story. It's certainly inspiring to the rest of us. If our listeners want to get in touch with you, or learn more about you what is the best way to do that?   Rachel Richards  18:15 Yeah, thank you, Sam, you all can follow me on Instagram @moneyhoneyrachel. And what I'd love to do for your listeners is if anyone wants to download my passive income starter kit, I will give that for free so they can go to moneyhoneyrachel.com/passiveincome to download that.   Sam Wilson  18:33 Awesome. And we'll make sure of course that we put that also in the show notes. Rachel, thank you again. Appreciate it.    Rachel Richards  18:40 Thank you.    Sam Wilson  18:41 Hey, thanks for listening to the How to Scale Commercial Real Estate Podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen, if you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners as well as rank higher on those directories so appreciate you listening. Thanks so much and hope to catch you on the next episode.  

PensBurgh: for Pittsburgh Penguins fans
PensBurgh Podcast, Ep. 92: A New Beginning?

PensBurgh: for Pittsburgh Penguins fans

Play Episode Listen Later May 20, 2022 66:05 Very Popular


This is it, folks. The final PensBurgh Podcast of the 2021-22 season. Robbie and Garrett sit down to share their thoughts on the conclusion of the first-round series against the New York Rangers. In addition, they also look toward the future. Both hosts discuss the impending free agents, how likely it is some return, and whether or not some new faces (or old friends) could be added. A discussion is also had on the futures of some front office members. How safe are Ron Hextall and Brian Burke's positions with the recent Fenway Sports Group takeover? This week, the mailbag features six questions, ranging from potential Evgeni Malkin/Kris Letang replacements to us ranking the impending free agents, and much more. Enjoy this week's episode and, as always, thank you for listening! Don't forget to support us by rating and subscribing to the podcast on iTunes, Spotify, and Google Play. Make sure also to follow us on Twitter all season long to get updated every time a new episode drops: @PensburghPod *** Intro/Outro music courtesy of Sylendanna. Track title - Online Now! & I Think Its The Way I Walk Learn more about your ad choices. Visit podcastchoices.com/adchoices

DK's Daily Shot of Penguins
DK's Daily Shot of Penguins: Evaluating Hextall/Burke

DK's Daily Shot of Penguins

Play Episode Listen Later May 17, 2022 19:04


How Tom Werner, Fenway Sports Group are evaluating Ron Hextall, Brian Burke. Hear award-winning columnist Dejan Kovacevic's Daily Shots of Steelers, Penguins and Pirates -- three separate podcasts -- every weekday morning on the DK Pittsburgh Sports podcasting network, available on all platforms: https://linktr.ee/dkpghsports Learn more about your ad choices. Visit megaphone.fm/adchoices

DK Pittsburgh Sports Radio
DK's Daily Shot of Penguins: Evaluating Hextall/Burke

DK Pittsburgh Sports Radio

Play Episode Listen Later May 17, 2022 19:04


How Tom Werner, Fenway Sports Group are evaluating Ron Hextall, Brian Burke. Hear award-winning columnist Dejan Kovacevic's Daily Shots of Steelers, Penguins and Pirates -- three separate podcasts -- every weekday morning on the DK Pittsburgh Sports podcasting network, available on all platforms: https://linktr.ee/dkpghsports Learn more about your ad choices. Visit megaphone.fm/adchoices

The PM Team w/Poni & Mueller
Goalie situation, Rob Rossi

The PM Team w/Poni & Mueller

Play Episode Listen Later May 16, 2022 32:38


Tristan Jarry made his first start in over a month in Game 7. He did alright, unfortunately it wasn't a game with much room for error. By save percentage, Jarry was worse last night than Louis Domingue, but the eye test tells you Jarry was the better option. Where do the Pens go next with the goalie situation? A familiar name popped up. Marc-Andre Fleury is a free agent. The guys discussed if the Pens should consider the reunion. A caller made a great point back to Matt Murray.  Penguins insider Rob Rossi joined the show. Rob shared his despair with the Penguins series loss to the Rangers in 7 games. He referenced another bad performance by the goaltending – the third year in-a-row it derailed a playoff run. He said the management had a bad off-season coming into this season and mentioned they might not get another. He doesn't believe Ron Hextall is safe in his spot, but doesn't necessarily think he's gone. He thinks the role currently filled by Brian Burke could be open within the next few weeks. Rob said the smart money is on Kris Letang, Evgeni Malkin and Bryan Rust being done with the Penguins – saying Malkin is the only one he could see back. Rob dropped a bombshell – he said Sidney Crosby was cleared to play ahead of Game 6, but was told no by management. 

The PM Team w/Poni & Mueller
Rob Rossi with a Penguins bombshell

The PM Team w/Poni & Mueller

Play Episode Listen Later May 16, 2022 16:39


Penguins insider Rob Rossi joined the show. Rob shared his despair with the Penguins series loss to the Rangers in 7 games. He referenced another bad performance by the goaltending – the third year in-a-row it derailed a playoff run. He said the management had a bad off-season coming into this season and mentioned they might not get another. He doesn't believe Ron Hextall is safe in his spot, but doesn't necessarily think he's gone. He thinks the role currently filled by Brian Burke could be open within the next few weeks. Rob said the smart money is on Kris Letang, Evgeni Malkin and Bryan Rust being done with the Penguins – saying Malkin is the only one he could see back. Rob dropped a bombshell – he said Sidney Crosby was cleared to play ahead of Game 6, but was told no by management. 

The PM Team w/Poni & Mueller
Pens blow 3-1 series lead, Jeff Hathhorn, HOCKEY TALK!

The PM Team w/Poni & Mueller

Play Episode Listen Later May 16, 2022 41:19


The Pens blew a 3-1 series lead and their season ended with a 4-3 overtime loss in Game 7. The guys debated who was to blame in the loss and how bad is the taste of blowing leads in the last three games to lose the series. Is it the final time we see Sidney Crosby, Evgeni Malkin and Kris Letang with Penguins sweaters?  93.7 The Fan Sports Director Jeff Hathhorn joined the show. Jeff had boots on the ground last night in NYC as the Pens lost Game 7 in OT. Jeff said there will be questions from the new ownership group about Brian Burke and Ron Hextall. Jeff looked to the future – he said there will be significant changes, but they don't want to surround Sidney Crosby with a bunch of 20-year-olds. He expects new people to be in charge. He believes Bryan Rust will be a player that should stick around, despite being a free agent, and said Rust would be the top name on his list to re-sign. Poni asked about what the vibe was like around Kris Letang and Evgeni Malkin. Jeff said Letang will likely get a great offer from another team. He can see Malkin taking a discount to remain in Pittsburgh.   HOCKEY TALK! The guys talked about the faults of the Game 7 watch party.

The Fan Morning Show
DeFabo, Hextall report, Epic Ending

The Fan Morning Show

Play Episode Listen Later May 16, 2022 35:03


Mike confirms Jeff Hathorn's report that FSG could look into Ron Hextall and Brian Burke to see if they're the right fit. Mike was asked to evaluate the job of Hextall so far. He asked if he's done enough.  That Pirates game was bonkers yesterday! It's only happened six times. But of course it happens to the Pirates. There have been over 200,000 MLB games played all time.  We rehash Hathorn's report that Ron Hextall will be evaluated by management this offseason...How long does Crosby have left? How will management handle the rest of his career? EPIC ENDING

The Fan Morning Show
Mike DeFabo

The Fan Morning Show

Play Episode Listen Later May 16, 2022 13:57


Mike confirms Jeff Hathorn's report that FSG could look into Ron Hextall and Brian Burke to see if they're the right fit. Mike was asked to evaluate the job of Hextall so far. He asked if he's done enough. 

The PM Team w/Poni & Mueller
Jeff Hathhorn looks to gloomy Pens future

The PM Team w/Poni & Mueller

Play Episode Listen Later May 16, 2022 11:12


93.7 The Fan Sports Director Jeff Hathhorn joined the show. Jeff had boots on the ground last night in NYC as the Pens lost Game 7 in OT. Jeff said there will be questions from the new ownership group about Brian Burke and Ron Hextall. Jeff looked to the future – he said there will be significant changes, but they don't want to surround Sidney Crosby with a bunch of 20-year-olds. He expects new people to be in charge. He believes Bryan Rust will be a player that should stick around, despite being a free agent, and said Rust would be the top name on his list to re-sign. Poni asked about what the vibe was like around Kris Letang and Evgeni Malkin. Jeff said Letang will likely get a great offer from another team. He can see Malkin taking a discount to remain in Pittsburgh.  

Fly Penguins Fly
Episode 89: Stanley Cup Playoffs Rd 1 Gm 6: “Win. For Sid.” PIT@NYR 05/13/22

Fly Penguins Fly

Play Episode Listen Later May 13, 2022 8:46


Fly Penguins Fly Episode 89: Stanley Cup Playoffs Rd 1 Gm 6: “Win. For Sid.” The Penguins are home at PPG Paints arena playing host to the New York Rangers. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!It's time to "Win. For Sid." The Penguins look to close out Round 1 of the Stanley Cup Playoffs with a series-clinching victory on home ice, at PPG PAINTS ARENA.I have no more words. All I know is that every guy on that team needs to take some deep breaths and just play the best game they have in them. And in this kind of situation sometimes even that isn't enough. The hockey gods will speak - what will they have to say? My guess is they'll say:LET'S GO PENS!JEFF TAYLOR

Fly Penguins Fly
Episode 88: Stanley Cup Playoffs “DeFabo, Getzoff, Vensel, and ...Me?" Emergency Podcast 05/11/22

Fly Penguins Fly

Play Episode Listen Later May 12, 2022 8:49


Fly Penguins Fly Episode 88: “Getzoff, DeFabo, Vensel, and ...Me?" Emergency Episode … Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!I was at MSG for Game 5: It was BONKERS being there in person. Obviously the result wasn't what we Penguins fans were looking for, but regardless it was a true rush getting to be inside the world's most famous arena for such a consequential night of Penguins hockey. In this emergency episode, I briefly express my mini-rage about the non-call on Trouba's elbow to Crosby's head, plus I sit in and briefly chat with Josh Getzoff (play-by-play voice , Penguins Radio Network), as well as  Mike DeFabo and Matt Vensel (Penguins beat writers, Pittsburgh Post-Gazette).Just a little bonus content for ya in this haze of playoff madness we find ourselves in!LET'S GO PENS! (And heal up fast, Sid.)JEFF TAYLOR

Fly Penguins Fly
Episode 87: Stanley Cup Playoffs Rd 1 Gm 5: “Leaning On Experience: A Conversation With Salvatore Lobuglio of The Little Cupcake Bakeshop” PIT@NYR 05/11/22

Fly Penguins Fly

Play Episode Listen Later May 11, 2022 18:24


Fly Penguins Fly Episode 87: Stanley Cup Playoffs Rd 1 Gm 5: “Leaning On Experience: A Conversation With Salvatore Lobuglio of The Little Cupcake Bakeshop” The Penguins visit The New York Rangers at Madison Square Garden. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!I spoke to my good friend and beer league ice hockey teammate, Salvatore Lobuglio about NHL-themed cupcakes, what it takes to score on the ice, and of course: This opening-round playoff series between the Penguins and Rangers. Enjoy tonight's road playoff game versus the Rangers and of COURSE,LET'S GO PENS!JEFF TAYLOR

Fly Penguins Fly
Episode 86: Stanley Cup Playoffs Rd 1 Gm 4: “A Conversation With Rob Rossi” PIT@NYR 05/09/22

Fly Penguins Fly

Play Episode Listen Later May 9, 2022 36:12


Fly Penguins Fly Episode 86: Stanley Cup Playoffs Rd 1 Gm 4: “A Conversation With Rob Rossi.” The Penguins are at home in the 'Burgh, playing host to the New York Rangers. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!This is a chat I've always wanted to have. Rob Rossi's reporting adds another dimension to the way we're able to follow and interact with Penguins Hockey. He allows the eccentricities of his colorful personality to bleed over into his journalistic efforts - and it really works for me. Enjoy this conversation, have fun watching tonight's playoff matchup versus the Blue Shirts and of COURSE,LET'S GO PENS!JEFF TAYLOR

Fly Penguins Fly
Episode 85: Stanley Cup Playoffs Rd 1 Gm 3: “Keep The Pedal Down” NYR@PIT 05/07/22

Fly Penguins Fly

Play Episode Listen Later May 7, 2022 10:51


Fly Penguins Fly Episode 85: Stanley Cup Playoffs Rd 1 Gm 3: “Keep The Pedal Down” The Penguins visit The New York Rangers at Madison Square Garden. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!The Penguins put on a solid show this past week, over the course of two hard-fought playoff games in Madison Square Garden. It's time to do it on home ice, this time with #16 Jason Zucker suited up and helping lead the Penguins with his proven playoff-time scoring ability. Domingue goes in net again tonight for the Pens, and his world-famous Spicy Pork and Broccoli dish is available in the arena, IF you can manage to track down Regina's Bistro!ENJOY tonight's home game versus the Rangers and of COURSE:LET'S GO PENS!JEFF TAYLOR

Fly Penguins Fly
Episode 84: Stanley Cup Playoffs Rd 1 Gm 2: “Riding King Louis” PIT@NYR 05/05/22

Fly Penguins Fly

Play Episode Listen Later May 5, 2022 16:39


Fly Penguins Fly Episode 84: Stanley Cup Playoffs Rd 1 Gm 2: “Riding King Louis.” The Penguins meow and juggle soccer balls in the bowels of the world's most famous arena for game 2 against the New York Rangers. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!Enjoy tonight's playoff matchup with NYR and of COURSE,LET'S GO PENS!JEFF TAYLOR

Fly Penguins Fly
Episode 83: Stanley Cup Playoffs Rd 1 Gm 1: “A Conversation With Richard Cole” PIT@NYR 05/03/22

Fly Penguins Fly

Play Episode Listen Later May 3, 2022 28:46


Fly Penguins Fly Episode 83: Stanley Cup Playoffs Rd 1 Gm 1: “Drop The Puck.” The Penguins visit the New York Rangers for the opening game of the playoffs. It's time for Mike Sullivan's Penguins to put their very best game on the ice tonight and take it from there. Follow @flypenguinsfly on Instagram, and @penspod on Twitter!!ENJOY tonight's playoff matchup against the Rangers and of COURSE,LET'S GO PENS!!JEFF TAYLOR

The Al Galdi Podcast
Episode 302: Commanders Draft preview, Commanders conversation with Brian Burke of ESPN Analytics and more

The Al Galdi Podcast

Play Episode Listen Later Apr 28, 2022 94:15 Very Popular


13:22 - Commanders: thoughts on Montez Sweat off the Commanders' exercising the fifth-year option in his rookie contract, including why his 2021 season was better than you may think 23:44 - Commanders: final thoughts on the Commanders entering the 2022 NFL Draft, including reaction to a report that the Commanders are interested in Ole Miss quarterback Matt Corral 41:51 - Guest: Brian Burke of ESPN Analytics on possibilities for the Commanders in the first round of the 2022 NFL Draft via ESPN's Draft Day Predictor, NFL Draft theory, what we should make of Carson Wentz's 2021 Total QBR having been so good, what we should make of Washington's offensive line for the 2021 regular season having rated so well in ESPN's Win Rate metrics and more 01:09:26 - Nationals: analysis of the Nats' reeling hitting and much more from a 2-1 loss to the Miami Marlins 01:23:19 - Orioles: a look at two positives for the O's in a 5-2 loss at the New York Yankees - Anthony Santander and Tyler Wells Visit https://go.factor75.com/Galdi120 and use the code Galdi120 to get $120 off! Learn more about your ad choices. Visit podcastchoices.com/adchoices

Oilers NOW with Bob Stauffer
Penguins President of Hockey Operations Brian Burke (4/26/22)

Oilers NOW with Bob Stauffer

Play Episode Listen Later Apr 26, 2022 18:20


Brian Burke is back on Oilers Now to fill you in on all things Penguins, the team he's helping oversee from the front office. Get thoughts on Crosby, his rivalry with McDavid, former Oil Kings netminder Tristan Jarry and more before Pittsburgh hosts Edmonton. See omnystudio.com/listener for privacy information.

Cash Flow Connections - Real Estate Podcast
E424 - TT - The Value of a Community for Passive Investors

Cash Flow Connections - Real Estate Podcast

Play Episode Listen Later Apr 19, 2022 31:08


In this Topical Tuesday's episode, I spoke with Jim Pfeifer. He is one of the founders of Left Field Investors and the host of the Passive Investing from Left Field podcast. He is also a former financial advisor who now concentrates on investing in real assets that produce cash flow and is committed to sharing his knowledge with others who are interested in learning a different way to grow wealth. Be sure to tune in if you're interested in learning about: Why investing passively in real estate private placements is superior to investing in REITs or buying real estate directly What passive investing opportunities are the most compelling right now and how your passive portfolio should be adjusted given today's market What mistakes Jim made in some of his early passive investments and how we can learn from those mistakes How you can accelerate your investment learning process and avoid mistakes by being part of an investing community To your success, Tyler Lyons Resources mentioned in the podcast: 1. Left Field Investors 2. His Email 3. Brian Burke's book “The Hands-Off Investor: An Insider's Guide to Investing in Passive Real Estate Syndications” Interested in investing in ATMs? Check out our webinar.   Please note that investing in private placement securities entails a high degree of risk, including illiquidity of the investment and loss of principal. Please refer to the subscription agreement for a discussion of risk factors. Tired of scrambling for capital?  Check out our new FREE webinar -  How to Ensure You Never Scramble for Capital Again (The 3 Capital-Raising Secrets). Click Here to register.   CFC Podcast Facebook Group

MoneyBall Medicine
Fauna Bio Awakens Medicine to the Mysteries of Hibernation

MoneyBall Medicine

Play Episode Listen Later Apr 12, 2022 53:51


Why is hibernation something that bears and squirrels do, but humans don't? Even more interesting, what's going on inside a hibernating animal, on a physiological and genetic level, that allows them to survive the winter in a near-comatose state without freezing to death and without ingesting any food or water? And what can we learn about that process that might inform human medicine?Those are the big questions being investigated right now by a four-year-old startup in California called Fauna Bio. And Harry's guests today are two of Fauna Bio's three founding scientists: Ashley Zehnder and Linda Goodman. They explain how they got interested in hibernation as a possible model for how humans could protect themselves from disease, and how progress in comparative genomics over the last few years has made it possible to start to answer that question at the level of gene and protein interactions. The work is shedding light on a previously neglected area of animal behavior that could yield new insights for treating everything from neurodegenerative diseases to cancer.Please rate and review The Harry Glorikian Show on Apple Podcasts! Here's how to do that from an iPhone, iPad, or iPod touch:1. Open the Podcasts app on your iPhone, iPad, or Mac. 2. Navigate to The Harry Glorikian Show podcast. You can find it by searching for it or selecting it from your library. Just note that you'll have to go to the series page which shows all the episodes, not just the page for a single episode.3. Scroll down to find the subhead titled "Ratings & Reviews."4. Under one of the highlighted reviews, select "Write a Review."5. Next, select a star rating at the top — you have the option of choosing between one and five stars. 6. Using the text box at the top, write a title for your review. Then, in the lower text box, write your review. Your review can be up to 300 words long.7. Once you've finished, select "Send" or "Save" in the top-right corner. 8. If you've never left a podcast review before, enter a nickname. Your nickname will be displayed next to any reviews you leave from here on out. 9. After selecting a nickname, tap OK. Your review may not be immediately visible.That's it! Thanks so much.TranscriptHarry Glorikian: Hello. I'm Harry Glorikian, and this is The Harry Glorikian Show, where we explore how technology is changing everything we know about healthcare.It's April and spring is well underway, even though it's been a pretty cold one so far here in New England.It's the kind of weather that makes you want to pull the covers over your head in the morning and just sleep in. Or maybe just hibernate like a bear until summer is really here.But when you think about it, what is hibernation? Why is it something that bears and squirrels do, but humans don't?Even more interesting, what's going on inside a hibernating animal, physiologically, that allows them to survive all winter without freezing to death and without ingesting any food or water?And what can we learn about that process that might inform human medicine?Those are the big questions being investigated right now by a four-year-old startup in California called Fauna BioAnd my guests today are two of Fauna Bio's three founding scientists: Ashley Zehnder and Linda Goodman. I asked them to explain how they got interested in hibernation as a possible model for how humans could protect themselves from disease.…And how progress in comparative genomics over the last few years has made it possible to start to answer that question at the level of gene and protein interactions.We've always looked to the natural world, especially the world of plants, for insights into biochemistry that could inspire new drugs. But what's exciting to me about Fauna Bio is that they're shining a light on a previously neglected area of animal behavior that could yield new insights for treating everything from neurodegenerative diseases to cancer.So, here's my conversation with Ashley Zehnder and Linda Goodman.Harry Glorikian: Ashley. Linda, welcome to the show.Ashley Zehnder: Thanks, Harry, we're excited to be here today. It's going to be fun.Linda Goodman: Yeah, thanks for having us.Harry Glorikian: Yeah, I mean, well, you guys are someplace sunny and warm, and I'm actually I shouldn't say that it's actually sunny right now on the East Coast. So I'm not I'm not.Linda Goodman: Don't jinx yourself.Harry Glorikian: But the temperature is going to drop. Like to I think they said 18. So everything will freeze tonight for sure. So it'll, you know, it's one of those days, but. I want to jump right into this because we've got a lot of ground to cover. Like there's so many questions that I have after sort of looking into the company and sort of digging in and, you know, but even before we jump into what you're working on. Right, I really want to talk about hibernation. Maybe because I'm jealous and I'd like to be able to hibernate. I have sleep apnea. So sleep is a problem. But humans don't hibernate. But there's a ton of other mammalian species that that do. And sometimes I do feel, though, that my teenager hibernates, but that's a different issue. So, but, what what is interesting to you about hibernation from a physiological point of view. What what goes on with metabolism or gene expression during hibernation, that's that's not found in humans, but that could be relevant to human health?Ashley Zehnder: Yeah, I think this is a great question, Harry, because I think both Linda and I came to fauna from different backgrounds. I came from veterinary science, Linda from comparative genomics. We can go into our details later, but neither of us really appreciated the amazing physiology of these species. There are some of the most extreme mammals on the planet, and there are hibernating bears and literally every group of mammals. Right. This is something Linda specializes in. But there are primates in Madagascar that hibernate very similar to the 39 ground squirrels that we tend to work with. So it's this really deeply conserved trait in mammals, including primates. And, you know, it kind of highlights for us what our genes can do when they're adapted for extreme environments. And so that's kind of the lens that we take when we look at hibernation. It's how do these species protect their own tissues from being nearly frozen for six, seven months out of the year, having to protect their brains, their hearts, all their vital organs? They're not eating, they're not drinking. They're not moving for these really deep bodied hibernaters. When you think of 100 kilogram animal that's not eating for seven months, how do they survive that? Right. And it has to do with metabolic rates that change 200- to 300-fold over the course of a couple of hours. It has to do with oxygenation changes and protection from oxidative stress and ischemia reperfusion. And so if you look at a tissue by tissue level, you can start to see how these animals are finally adapted to protecting themselves from from damage. And then we can start to say, well, this is similar damage to what we see in human diseases. And that's why this is such an interesting system, because it's so dynamic and because it happens across so many groups of mammals, it really lends itself to this comparative genomics approach that we take to drug discovery.Harry Glorikian: Yeah. Because I was wondering sort of like what ways of healing from different sort of traumas and conditions do hibernating animals have that that humans don't, that we sort of maybe wish we did? It's sort of like, you know, almost Marvel or one of those things where you like go to sleep, you wake up, you've totally healed again, which kind of be kind of be cool. Yeah. So, you know. But when did scientists first begin to think about whether having a better understanding of hibernation might help us solve? Some of these riddles that we have in human health. I mean, it surely it can't be like a new concept. It has to go further back. I mean, what has changed recently to make it more actionable? I mean, is it, you know, omics, costs coming down that are making it easier, computational capabilities that are, you know, making all these come together? I mean, those. What do you guys. What's. What's the answer? You guys know the answer better than I do.Ashley Zehnder: I'll comment on a little bit on the physiology, and I will let Linda talk about the data revolution, because that's that's really what she knows very intimately. So from a physiology standpoint, these are species and not just hibernaters, but a lot of other species that we've been studying since the early 1900s, 1950s. I mean, these are some of our earliest biological experiments and our earliest understandings of biology. We're not necessarily done by studying humans. A lot of that was done by studying natural disease models, right? How did we figure out that genes cause cancer? So it's a little bit of a tangent, but bear with me, it was not by studying human cancer, it was by studying Rous Sarcoma Virus and how that virus picked up bird genes and then turn them on. Right and other in other individuals. So but then kind of this almost the same year in 1976 that we figured out that genes cause cancer by studying chickens. 1974 we figured out how to genetically modified mice. And we sort of figured out that like, okay, maybe we don't need to study natural biology anymore. And so I feel like we sort of lost a lot of those skills and figured out we had humans and we had model organisms and we were done. And I think now we're kind of in this renaissance where people are realizing that actually there's still a lot of natural biology that we can learn from. But it's being powered now by this data revolution and the decrease in cost and sequencing and availability of omics data like RNA. Seq and then I will pitch that over to Linda because that's really what she knows best.Linda Goodman: Yeah, yes, absolutely. You know, Ashley's right. And I think just to add on to that, that there was this issue in which there were a lot of field biologists out there working with these really fascinating hibernating animals. They knew a lot about what these animals could do, the extreme environments they were exposed to, that they could overcome, they could protect all of their tissues. And there was so there was a group of field biologists who knew all that information. And then on the other side, you have all of these geneticists who are studying the genomes of probably humans and mouse and rat. And they weren't really talking to each other for a long time. And I've been in the genomics field for at least a decade, and not until very recently did I even hear about all these amazing adaptations that these hibernating mammals have. So I think some of it was just a big communication gap. And now that the genomics field is starting to become a little more aware that all these exciting adaptations are out there that we can learn from, I think that's going to be huge. And yes, of course, it certainly does not hurt that there's been a dramatic drop in sequencing costs. We can now sequence a reference genome for around $10,000. That was unheard of years ago. And so a lot of these species that people would previously consider untouchables because they were not model organisms with a pristine reference genome, we can now start to approach these and thoroughly study their biology and genomics in a way that was not possible several years ago.Harry Glorikian: Yeah. I was thinking I was, you know, I was laughing when you said $10,000, because I remember when we did the genome at Applied Biosystems and it was not $10,000.Ashley Zehnder: Yeah.Harry Glorikian: Yeah. And it took I remember Celera, we had an entire floor of sequencers working 24/7 I mean, it was an amazing sight. And now we can do all that, you know, on a.Ashley Zehnder: Benchtop. Benchtop. Exactly. On a benchtop.Harry Glorikian: So. But, you know, it's interesting, like in a way, studying animals to learn more about disease mechanisms seems like a no brainer. I mean, we share a, what, about 99% of our DNA with chimpanzees. And for those listening. Yes, we do. You know, I'm sure there's people out there that, like, bristle when I say that. But what is it, 97.5% of our DNA with rats and mice. That's why we use all these things for sort of safety and effectiveness of drugs meant for humans. But. Still, I'm not used to drug hunters starting out by looking at animals, you know? Why do you think it's taken the drug industry, although I'm I say that very loosely, [so long] to wake up to that idea?Ashley Zehnder: Yeah. I think it's I think it's again, this almost reversal of the paradigm that exists today, which is let's take a human disease that we want to make a new drug for. Let's take a mouse and let's try to genetically manipulate that mouse to mimic as closely as possible what we see in the human disease. And those are always imperfect. I mean, I did a cancer biology PhD at Stanford, and there's that trope of like, Oh, if I had a dollar for every time you occurred mouse in a human right, it would need to work anymore. That's replicated across many fields, right? They're not good models. And so we're saying like obviously that doesn't really work for discovery. It's fine for preclinical and safety and you have to use those models. But for pure discovery, that's not where you want to be, right? Instead, you want to take the approach of saying, where has nature created a path for you? Where is it already solved this problem? And I think there are companies like Varian Bio who are doing this in human populations. We're saying, let's look at humans that have unique physiologies and a unique disease adaptations. And of course then you have to find those niche pockets of human populations.Ashley Zehnder: So that's not a not a simple problem either. But the approach is very analogous. What we're saying is we can use that rare disease discovery approach and just expand that scope of discovery. Look at highly conserved genes, look at how other species are using them to reverse how phosphorylation in the brain to repair their hearts after damage, to reverse insulin dependence. To heal, we'll heal their tissues or regenerate stem cells. Let's just see how nature did it right and just mimic that instead of trying to fix something that we artificially created. So it's literally reversing that paradigm of how we think about animals and drug discovery. But you have to know how to do that. You have to know which models are correct. You have to know how to analyze 415 genomes together in an alignment which is really complicated. Linda knows how to do that, so you have to know how to do it correctly, although you could screw it up very badly. So there's a lot of expertise that goes into these analyses and also again, the data availability, which wasn't there nearly a decade ago. So.Harry Glorikian: So I asked this question out of pure naivete, because I'm not sure that I could sort of draw a straight line. But, you know, which drugs were have been discovered through research on genetic mechanisms of disease in animals. Is there, are there?Ashley Zehnder: You know, I think directly it's a new field. Right. So I think, Linda, you and I have looked at some examples of looking at drugs for narcolepsy, looking at dog genetics and studies, looking at muscle disorders in certain species of cattle that have naturally beefed up muscles and translating those into therapies. I mean, there are examples of looking at animals for things like genotype, right, came from Gila monster venom, although that's not strictly a genetic program. Right? So I think this idea of looking at natural animal models is a source of innovation. It's just that, again, the data wasn't really available until fairly recently, but we know the strategy works by what's been done on things like PCSK9 inhibitors in humans, right? It's a very similar approach to that. It's just expanding that scope of discovery.Harry Glorikian: So because you guys raised money and you guys are moving this forward, sort of and I don't want you to tell me anything that's confidential, but. So what was the pitch when you when you put that in front of everybody?Ashley Zehnder: It was really that, look, drug discovery right now is really been hampered by a lack of innovation. And we're really stuck in looking at these very kind of currently limited data sources, which is humans and again, these handful of really imperfect animal models. But we can take what we've learned from working with human genomics and really greatly expand the opportunities for a number of diseases that still don't have good therapies. Right. We've had the human genome for really close to 20 years now. We spent a lot of money sequencing it. And still, if you go back and look at the FDA approvals in the last two years, which I did by hand a while ago, or more than three quarters of those are not new targets. They're new drugs for a new indication or new drugs, same drugs before a new indication or they're kind of meta pathway drugs or they're drugs for which we still don't know the mechanism. It's some small molecule. It's been around since fifties. And so like where is the innovation in the top ten diseases of people still have it changed? So like where I pulled these two headlines right not too long ago, one from 2003, which is like the era of the genomics revolution. Right? And then one from 2019, which was the genomics revolution question mark. Right. Like we're still sort of waiting for it. And so what is that missing piece of data that's really going to allow us to really leverage the power that's in the human genome? And to do that, we have to put our own genes in an evolutionary context to understand what's important. That's been that third dimension of genomics that's been missing. So it's really not necessarily about any particular species that we work on, all of which are amazing. It's really about using that data to shine a better light on what's important in our own genome. And so that's a lot of the pitches, like how are we going to use our own genome better and find better treatments?Harry Glorikian: Yep. Understood. So. You have a third founder, Katie Grabek. Right. So. Tell me about yourselves. I mean, did the three of you get interested in comparative genomics and hibernation? How did you come together? How did you decide like, oh, hey, let's do a startup and get this thing going in this area? So tell tell me the origin story.Ashley Zehnder: Linda, do you want to kick off?Linda Goodman: Sure. I think it all really started, Ashley and I initially started batting a few ideas around. We both had this understanding that that drug discovery today did not look outside of human mouse rat very much. And we both understood there was this wealth of animal data that's just waiting to be used and no one was doing it and we couldn't really figure out why. And we were having trouble figuring out exactly which animal we wanted to study and which diseases we wanted to study. And it just so happened that we lucked out. There was another woman in our lab at Stanford, Grabek, who had the perfect study system for what we were thinking about. She had these amazing hibernates our animals that have exquisite abilities in terms of disease, resistance and repair. And once she started talking about all the amazing phenotypes these animals have, we thought, wow, that would make a great study system to make the next human therapeutic. Yeah. And I think it's interesting that both Katie and Linda have human genetics PhDs. Right. So I think both of them and Linda can expound on this. But from Katie perspective. Right, she she went in to do a human genetics Ph.D. trying to understand how genes can be used to improve human health and shouldn't be rotating the lab of somebody who studied the 39 ground squirrel and said this physiology is way more extreme than anything we see in humans, but they're doing it using the same genes.Linda Goodman: What are those genes doing in these animals that we can adapt for human therapeutics? And so she brought that work with her to Stanford and was really one of the preeminent researchers studying the genetics and genomics of these species. My background is I'm of Marion, so my clinical training is in exotic species. So as a clinician, I treated birds, mammals, reptiles and saw that they all presented with different kinds of diseases or in some cases didn't present with diseases like cancer that were super interesting. And then coming to a place like Stanford to do a PhD, it was working with a bunch of human researchers, human focused researchers. They're all generally human researchers, but you know what I mean? It's a little bit tricky with the nomenclature. Generally, I have my doubts about, you know, maybe there's some chimpanzees doing research somewhere, people studying human diseases, right from a human lens who are completely ignorant of the fact that animals often also had these disease traits or in some cases were resistant to them. So there was this huge disconnect there of of biologists and veterinarians and physiologists who understood all these traits across different species and the people who knew the molecular mechanisms, even though a lot of those are shared.Linda Goodman: And so one of the things that I found really interesting just from a cancer perspective was that a lot of our major oncogenes are highly conserved because these are core biological genes that if you screw them up, will give you cancer. But there's an evolutionary pressure to maintain these genes. And so there's a reason why they're conservative, because they're really important biologically, and that's true across many other diseases as well. So from that perspective, I was really interested in this intersection of human and animal health. I always wanted to do more genomics myself and just never had had the training. Linda had always been interested in veterinary science, and so we kind of immediately started collaborating and saying, Look, look, there's a huge opportunity in this, again, third space, third dimension of genomics that people are not looking at. What do we do trying to start a comparative genomics company? I'm using air quotes here for the podcast listeners is a little bit broad. Where do you start? And I think Katie really gave us that start in saying, here's a model. We have a biobank of samples that are proprietary to fauna. We have an expert in this field. We have a model that's good for so many different diseases. Let's prove that the process works here and then we can expand into multiple disease areas.Harry Glorikian: You know, you got to love, people I think, underestimate that magic that happens when the right people get together and the spark happens, right? I mean, I'll take that. Any day. I mean, I love coming up with a plan and then, you know, working to the plan. But when it happens, when the right people in the room and they're all get excited, those are those are the most incredible start ups, in my opinion. Yeah. So you're starting off with targets in heart disease, stroke, Alzheimer's, diabetes, very different areas, right? Cardiovascular, neurodegenerative and metabolic. So. Why start with those areas in particular?Linda Goodman: So I think for us it was really again showing showing what we can translate from this model. So some of the phenotypes that we see, the traits that we see in the ground squirrel, which is predominantly one of the species we use for our work, is that they're exquisitely resistant to ischemia, reperfusion injury. So the kind of injury that gets, if you have a heart attack and you go and get the heart attack on block, you get this rush of warm, oxygenated blood back into your heart that can actually be damaging. And that's a lot of what causes damage after a heart attack, what these animals happen, they do this 25 times over the course of a 6 to 7 month hibernation cycle. And if you look at their hearts in the peak of one of these periods, there is an upregulation of collagen, which is cause of fibrosis. There's an upregulation, there's histologically, there's a little bit of damage. It's less than you would I would have, but there's a little bit there. But if you get to the end of that whole cycle and look at their hearts, they look normal and they do it again next year. Right. So you and I could not survive 25 of these attacks over six or seven month period, right? Obviously not. So let's pick the strongest phenotypes we have in these animals and let's show that we can use information from that and come up with genes and compounds that are protective in our more standard models of these diseases.Linda Goodman: And that's what we did really with the first round of data that we had is we generated four genetic targets and two compounds that came out of the heart data that we had from hibernating and that we tested them in human cardiomyocytes in a dish and said if we take oxygen and glucose away from these cells, they get really unhappy and die and we could double survival of human heart cells in a dish. And then we said, okay, great, let's actually move this into animals. And so we used AAV or some of these viral vectors to then knock down genes in vivo in hearts of rats. So we literally tied off a coronary artery and then let the blood come back in and saw that we could almost fully protect these hearts from damage by knocking down genes that we found in the hibernating data. So it was really closing that loop and saying, where are the strongest traits? Can we show that this works? And then it was really figuring out where are the really large areas of unmet need. And so in terms of metabolism, we end up connecting with Novo Nordisk, which is a publicly disclosed partnership. They are very focused on obesity. We have a model that increases this metabolism, 235 fold over an hour. Name another model that can do that, right?Harry Glorikian: I need that. I need that. I need like, because...Ashley Zehnder: We all need that!Harry Glorikian: I could get rid of a few pounds right around here.Linda Goodman: Exactly. So then it's really just figuring out where are the unmet needs, who is really interested in these areas we're looking at and do we have unique data that speaks to those models? And that's really we just try to be guided by the biology and saying, where do we have unique data sets that can answer high unmet needs?Harry Glorikian: Okay. Well, all I mean, all sounds super exciting if we can make the translation, you know, in the right way and find those targets. But. You guys have built up a significant biobank, right? I understand you have a huge database of genomic readout from various hibernating animals. Can you tell us a little more about the extent of that biobank? How did you collect the data and how unique is that database in the industry?Ashley Zehnder: Yeah. Linda, do you want to talk a little bit about the data sources that we're currently using at Fauna?Linda Goodman: Yeah. So maybe, you might be the best person to talk about the Biobank and then I can talk about all the other data sources layering on top of that.Ashley Zehnder: Yeah, I'll talk a little about the BiobanK. So we have yeah, we have a number of different data sources. The Biobank is one of them and probably one of the main ones that we use. So Katie, during her PhD, built a really unique biobank of very precisely time tissue samples from 39 ground squirrels across the whole hibernation cycle. And the reason why that timing is so important is because the cycle is so dynamic. If you don't have really precise sample timing, you end up with a big kind of smush of data that you can't tease apart by having really precisely timed data points, you can separate these genes into clusters and know exactly kind of where you are in time. And that timing relates to the physiological injuries that we study. So we know what time points their hearts are protected because those physiological studies have been done. We've looked at those time points very specifically. So we have that biobank of samples that we in licensed as founding IP at Fauna CANI literally drove it across the country in a U-Haul because we didn't trust anybody to move it. So that's that's now in our freezers and Emeryville with a cadre of backup batteries to protect it.Ashley Zehnder: So that's the founding data that we have. And that's been really crucial because I look at other companies trying to use data for drug discovery, particularly in the early stage. A lot of it is kind of publicly available data or cell lines or kind of shared data sources. And part of what is unique about font, as we literally have truly novel data sources that we're starting with that are wholly owned that we control and we know the quality of those. So that's really the Biobank that we have is and it's 22 different tissues. I mean, it's brain, it's kidney, it's lung, it's hard. It's liver or skeletal muscle. Right? Pretty much every kind of tissue you would want in that founding biobank. But then on top of that, I think what we've done with the other data is super important. Yeah. And so we layer on top of that all sorts of publicly available data and also data we've been able to source, such as human data from the UK Biobank. But I really want to hit on the point of, of why the model species hibernate or data is so different. All of the other data that most people work with is trying to compare animals that are healthy to animals that are diseased, or people that are healthy to people who are have disease. What's really unique about the model species that we're working with is we're trying to figure out why they have these superpowers in terms of disease, resistance and repair.Ashley Zehnder: So it's kind of the other end of the spectrum that we're making this comparison between a normal, normal hibernate or during, say, the summer months and then a hibernate or that has gene expression patterns that mean that it's resistant to many diseases and it can repair tissues when it gets damaged. So it's actually quite different from the normal types of comparisons that others would make. But yes, and then we integrate publicly available data from sources like Open Targets Reactance. And one of the other data sets that we work with that's that's valuable is that we go back through literature that is relevant to the disease, indications that we're going after. And we have a team of curators that mines these papers that where the biology is relevant and we integrate those transcriptomic studies generally into our database. And that that really helps with our comparisons. And I can kind of give you an example of the way that we would do this type of cross-species analysis compared to what other what others in the industry might do if they were just looking at humans or say, just looking at mouse and rat is that, you know, if you're if you're just looking at at a human study and you're trying to say, look, for what genes do we think are involved in heart failure? You would look at, say, transcriptomic, differences between healthy human hearts and failing human hearts.Ashley Zehnder: And then you would have some type of gene list where you'd see the genes that have differential regulation between those two groups. And it fa not we we look at that type of data and then we also look at hibernate or data and then we can compare that. And that's really where the magic happens because we can look at hibernate hours when their hearts are protected during the winter months. So we have an example of these are genes that are involved in protection and then compare that to the summer months where they're not protected. And then we can integrate both of those to analyses so we can say what's really different about a human heart when it is failing to a hibernating heart when it is protected. And we do very fancy types of network analyses and then we layer on all of these data from external sources and the really exciting moments where we see these networks light up with the exact regulation patterns we are expecting that is relevant to our biology. Those are really fun. And I would say the other data source, Linda, that would be good to touch on is the genomic data, right? I think the comparative genomics data. So maybe give a little context on that. I think that really broadens the the views point of what we work with.Linda Goodman: Yeah, absolutely. So that's another data source that we work with. We have a collaboration with the Broad Institute that is one of the leaders of the Zoonomia Project that has in the neighborhood of 250 mammals in a in a big alignment. So we can do comparative genomics across all of these animals. And what we like to look for are comparing the genomes of animals that have a specific phenotype to others that don't. So for example, what is different in the genomes of hibernaters compared to the mammals that cannot hibernate? And we typically do this with how fast or slow evolving genes are, right? So if a gene doesn't accumulate very many mutations in hibernate hours, then it's probably pretty important for hibernation because there's a lot of purifying selection on that versus say, in other mammals that are not hibernaters, like like a human or a rat. It got a lot of mutations in it because it didn't matter as much for those animals. So that's another way of pinpointing the genes that are really important to hibernation. And we know, of course, that some of those might relate to the overall hibernation trait, but many of them are going to be disease relevant because they've had to evolve these genes in a way to protect their hearts and their other organs from these extreme environments they're in during hibernation.Harry Glorikian: So that, if I'm not mistaken, so did the Zoonomia Consortium, there was a big white paper about comparative genomics published in Nature.Ashley Zehnder: Nature last year? Yep. Two years ago. Yeah. A little bit.Harry Glorikian: Yes. Time seems to blur under COVID.Ashley Zehnder: Yeah.Harry Glorikian: How long have I been in this room? Wait. No.Harry Glorikian: But. Can you guys I mean, because doing comparative genomics is not, you know. It's not new necessarily, but can you guys summarize sort of the. Arguments or the principles of that paper, you know, quickly. And then, you know, my next question is going to be like, do you feel that Fauna Bio is part of a larger movement in science and drug discovery that sort of gaining momentum? So I'll, I'll I'll let you guys riff on that launch.Ashley Zehnder: Linda, you're you're the best one to do a perspective on that paper for sure.Linda Goodman: Sure. Yeah. You know, I think this is really born out of the concept that in order to identify the most important genes in the human genome, we need to be looking at other animals and more precisely, other mammals to see their pattern of evolution. Because if you see a gene that looks nearly identical across all other mammals, that means that it's really important. It means that it has been evolving for somewhere in the neighborhood of 100 million years, not accumulating mutations, which really translates to if you got damaging mutations in that gene, you were a dead mammal. Those have been selected out. And that's really how you can tell these are the key genes that are important to to your physiology, the difference between life and death. And you can't understand those things as well by just looking within humans and human populations. We're all too similar to each other. But it's really when you get to these long time scales that the statistics work out where you can see, okay, this has been this mutation has not happened in 100 million years. We don't see it in anybody's genome. So that is obviously very important. And that's just this other way of looking at our own human genome that helps highlight the genes that are going to be important to diseases. And I think, you know, another side to this paper related to conservation and the fact that a lot of these animals with really exciting genomes, the ones that are exciting to people like us, are those that have these really long branch lengths where they're they're kind of an ancient lineage. And that's really where the gold is, because that helps us even more understand how quickly or slowly some of these genes are evolving, and it related to trying to conserve some of these species as well.[musical interlude]Harry Glorikian: Let's pause the conversation for a minute to talk about one small but important thing you can do, to help keep the podcast going. And that's leave a rating and a review for the show on Apple Podcasts.All you have to do is open the Apple Podcasts app on your smartphone, search for The Harry Glorikian Show, and scroll down to the Ratings & Reviews section. Tap the stars to rate the show, and then tap the link that says Write a Review to leave your comments. It'll only take a minute, but you'll be doing a lot to help other listeners discover the show.And one more thing. If you like the interviews we do here on the show I know you'll like my new book, The Future You: How Artificial Intelligence Can Help You Get Healthier, Stress Less, and Live Longer.It's a friendly and accessible tour of all the ways today's information technologies are helping us diagnose diseases faster, treat them more precisely, and create personalized diet and exercise programs to prevent them in the first place.The book is now available in print and ebook formats. Just go to Amazon or Barnes & Noble and search for The Future You by Harry Glorikian.And now, back to the show.[musical interlude]Harry Glorikian: I should say congratulations because you guys did raise a $9 million seed round last fall from a group of venture funds, some in life sciences, some more general. Right. What does that funding do? What is it? What does that unlock next?Ashley Zehnder: You. I will answer that question. I do want to jump back to your other question that was kind of is this part of a larger movement and comparative genomics? Right. I think that's an important question. I think you sort of hit the nail on the head there. We were invited to a symposium in August of 2019 called Perspective and Comparative Genomics that was held at NHGRI in Bethesda. And I think there's a recognition and actually some of our grant funding is also through NHGRI. And I think there's a recognition from the folks who sequenced the human genome, that they don't have all those answers. And so it's an interesting time where we realize that there is this kind of other data out there that can help us really understand that better. And it does feel a little bit like a rising tide. And so that's that's something that I think is important to recognize. But in terms of the seed round, really, that was meant to expand the platform and the pipeline that we built with our initial funding back from Laura Deming and Age One and True Ventures, who led around for us in early 2019. It's really saying like that initial $3 million or so is really to say like, does this work or is this crazy, right? Can we it's just a crazy idea.Ashley Zehnder: And that's what we really started to generate those first few animal studies that said, yes, actually we can find genes and compounds from this data that meaningfully affect not only human cells, but animal models of human disease. And now we're really expanding into new disease areas. We're looking at areas like fibrosis. We're looking at areas like pulmonary disease. We've got some really interesting data coming out of animal models of pulmonary hypertension with a compound that we found on our platform. We've got the collaboration with Novo Nordisk, which of the five genes that they tested in animals? We have one that has a significant obesity phenotype. So I mean, 20% hit rate on a novel target discovery in vivo is not bad, right? So we've gotten to the point now where repeatedly over multiple disease areas, we've seen that between 20 and 30% of our either compounds or genes are hits, which shows us that this is not only kind of a we got lucky in cardiac disease, but actually this is a process for enriching for important drug targets. And now it's a matter of really expanding the pipeline. We brought on a really experienced head of Therapeutics Discovery, Brian Burke, who spent 20 years at NIBR running very early discovery programs and then seeing programs go into the clinic.Ashley Zehnder: He worked on drugs like Entresto and then worked on a couple of startups after that. So he's kind of gotten both big pharma and startup experience, and his job at Fauna is to really look at the menu of things that we're presenting him from an early research and discovery phase and picking the winners and really figuring out how to take them forward and also killing the programs that are less exciting to him for a number of technical or practical reasons. So that's been really, really helpful to have someone come in truly from the outside and take a look at the science at Fauna and say this is as good or better as anything that I've worked on before. I'm really excited to work on this, and that's been kind of a nice external perspective on on the science and the pipeline at Fauna. So that's really what the $9 million is for. It's really expanding a lot of the computational expertise and and progress and Linda can talk a little bit about that, but also just expanding into new disease areas as well.Harry Glorikian: Understood. So, you know, on this show, like, I talk a lot about, you know, technology, data, and how it's all affecting health care, which this all fits into. But one of the things we talk about a lot is how crappy, terrible, I should use, you know, terrible, right, electronic health records are in the lack of interoperability between them. And Ashley, you actually wrote a paper.Ashley Zehnder: I did, yeah, veterinary medical records are just as bad, actually, veterinary medical records are probably a little bit worse, if it's possible.Harry Glorikian: And to be quite honest, I'm sorry, I just hadn't thought about Fifi or Rover and their...Ashley Zehnder: Their medical records.Harry Glorikian: EHR. Is like is the problem bigger, even, when it comes to functional genomics? I'm trying to think of like obtaining and storing and analyzing 'omics of different species. I mean, who's working on this? Is that part of the Zoonomia consortium? Right. I'm just trying to think it through, like, how do you get all this information and then look at it across all these different species. And at some point, you know, look looking at it against humans also.Ashley Zehnder: Yeah. I'll let Linda talk about the genomics side. I'll comment on sort of some of the validation, some of the externally curated data that Linda talked about. I think this is actually becoming a really important data set. It was a little bit of a slow burn to figure out how to get it and to curate it. But there are a lot of studies now coming out and not just your traditional model organisms, but naked mole rats and long lived rock fishes and primate studies and bats and all kinds of people looking at genomics and RNA seek metabolomics and proteomics across these species that have interesting phenotypes. The problem is, every one of those researchers really heads down on their own species of interest, right? Nobody's saying, oh, well, actually, we're seeing the same genetic signature in these bats that we're seeing in the naked mole rats that we're seeing in some of these long lived fish. Right. But that data is not in a very friendly format. So we were like originally we were like, okay, we're going to write some scripts, we're going to try to pull some of the stuff out of supplemental tables. It's going to be awesome. No, no, no. We have very highly trained curators who work on this data and bring it in. And we have a very standard pipeline and a process and a way to normalize the data across different studies and standard ontologies and ways to clean up this data in a way that it can be integrated with the genomics coming out of the platform. And that is a tedious and painful and ongoing effort to bring in all this data.Ashley Zehnder: Now, we have data from well over 330 individual studies, over 30 species. I think Linda, you told me it was like more than 800,000 gene entries at this point that's curated and that's kind of growing month over month. So now that's becoming part of our defensible moat, is that we've taken the last two or three years, again, slow burn, pulling all this data together in a way that it can be reused. And now we can turn a paper around and put it on a platform in a week or two. So we're kind of always scanning for these studies. But yeah, it's, it's, it's out there, but it's not always in a usable format without a lot of pain and effort. And so we've kind of put that pain and effort into getting that data in a place that we can use it. And then, of course, the comparative genomics is like a whole 'nother level of complexity.Linda Goodman: Yeah, so I can talk a little bit about how we do that within the comparative genomics community and how we've done that for Zoonomia. Because I referenced before that we like to do these sorts of studies to examine the genomes of hibernate ers and non hibernate and figure out what's different. And you'd think it would be a trivial question who is a hybrid nature amongst mammals? But it's actually not. And so along with our collaborators Alison Hindle and Cornelia Santer, as part of the Genome Project, Fauna tried to go through and categorize every every genome that was in Zoonomia. So we're talking about around 250 mammals for is it a hibernater, or is it not? And you'd be surprised how often it was digging through literature from the 1970s and someone would say, this animal is not often seen during the winter. So we think it hibernates and it's not always the most satisfying. And so it is an extremely tedious effort, but well worthwhile to go through and say this animal, I'm very sure, hibernates. This one, I'm very sure does not. And then there's this third category of animals that were unsure about we're going to remove those. And it's tedious, but you have to do that part, right? Because if you do the analysis with bad data, you're never going to find the genes that you want. And Linda, I remember you telling me when you were going through this very painful process, I think your threshold for being a perpetrator, quote unquote, was that you could drop your metabolism like 50%. Correct me if I'm wrong, and humans could go down to like 40 like in certain instances, like humans are almost there. You know, it's it's hard to know when there is only one paper about it, but certainly there are some really deep meditative states and humans and low oxygen environments where, you know, we're getting kind of close to the area where we might say that that's a hibernated, but certainly not the duration that you get out of hibernation. But it's it's it surprised me to see how close how much how much metabolic flexibility there really is when you start to look at it. Yeah.Harry Glorikian: Yeah. We've got to go talk to the monks.Linda Goodman: Absolutely. Absolutely. You know, we have that in mind. It sounds like an interesting travel experience. Yeah.Harry Glorikian: So I want to jump back for a second because. You guys don't necessarily have from what I have pieced together, the normal sort of like startup story. Right. First of all, you're an all female founding team, right? Highly unusual, right? Not something I see every day. You guys started at an accelerator program in San Francisco called Age One.Ashley Zehnder: Age One.Harry Glorikian: And then you moved to QB3 and the East Bay Innovation Center.Ashley Zehnder: Yep.Harry Glorikian: And then I think they helped you with some paid interns.Ashley Zehnder: Well, we got some from Berkeley. Yep, we did.Harry Glorikian: Yeah. And then you went through a SBIR grant.Ashley Zehnder: A couple of them.Harry Glorikian: From the Small Business Administration. And then a small business technology transfer grant from the Human Genome Research Initiative at NIH. Right.Ashley Zehnder: Yep.Harry Glorikian: I'm hopeful, hopefully my notes are all correct. Talk a little bit about the on ramp or infrastructure today for sort of seed stage startups like you. I mean, what were the most important resources?Ashley Zehnder: This is such an important conversation. I'm really glad you're asking this question. We had a call with a reporter from Business Insider yesterday who was talking to all three of us about this early founder ecosystems in biotech and sort of East Coast versus West Coast ways of starting biotechnology companies. Right. And that is a whole do a whole podcast on that, let me tell you. But I will say that there are a lot of resources for, let's call them founder led bio. Right. In the West Coast, which is kind of the buzzword these days, but people really supporting the scientists who originate the concepts and training them to be founders as opposed to assuming that you need to bring in an experienced CEO to run a company at this stage. Right. So I think we were very fortunate to meet Laura Deming at Stanford, who is one of the founding VCs. And longevity before that was a buzz word, right? She was one of the first longevity funds, literally Longevity Fund, and is really been a champion of founders, starting companies and really training founders to start companies who are deep science founders. So we started in age one. It was the first batch of age one. We're still very close to that cohort of companies doing interesting things from machine learning and image analysis through pure therapeutics development. And then Laura really helped us, her, her. We asked her later, like, why did you end up investing in us? She said, Well, the science was amazing.Ashley Zehnder: This is totally a field with so much promise. I just needed to teach you guys how to pitch. The science was there, right? So she helped me just how to pitch and how to use less science words in our pitches, which we're still working on to some extent. But then it was this balanced approach of taking in some venture money to really support the growth of the company, but balance with some of this non-dilutive funding for specific projects where it made sense and some of that was some of that in the early stage is validation, right? Having having funding through groups like NHGRI, having an early partnership with a company like Novo Nordisk, which provided also some non-dilutive funding for the company, really validated all of the science that we were doing because we were first time founders, because we're a little bit outside of the normal profile. For me, I don't feel weird being a female founder only because 80% of veterinarians are female. Like, I'm used to being in a room with all women. You go to a bio conference, it's not the same thing, right? So for us, we're just we are who we are. Right. But it's helpful, I think, to get some of that external validation and then really be able to use that to to start to build on programs and show progress.Ashley Zehnder: And then it becomes more about the data and the progress and what you can do with it. So that's a lot of how we started the company. There's I said there's a lot of support in the West Coast for this kind of thing. There's great programs like Berkeley Foreman Fund Talks, which I worked, which I was in as well, just about logistics around starting companies. There's a lot of good startup accelerators. I've got a really amazing all of us, how amazing a network of founders who we can reach out to on different. I got four or five different Slack channels of founders that I could reach out to for all kinds of advice. And usually it's always good to have a company that's one or two stages ahead of you, like talking to folks who IPO'd or something last year is is not as helpful as folks who recently raised a series B, right. And figuring out what those milestones look like and then particularly those that have taken mostly money from tech investors like we have all the lifeforce capital who led our last round is also has funded some very good therapeutics companies, Sonoma Therapeutics and Second Genome and other therapeutics companies as well. So I think it's it's helpful to see how people balance the needs of the companies at different stages in what you need.Harry Glorikian: But so do you guys think that you could have started Fauna ten years ago? I mean, did the support systems exist for starting a company like this?Ashley Zehnder: Well, no, for two reasons. We couldn't have started Fauna ten years ago. One is the data just simply wasn't in a place that the company was a tractable strategy. Everything was still too expensive and we had really shitty genomes for a few species at that point. And B, I think there really wasn't the kind of groundswell of support for deeply scientific technical founders to start their own companies and train them to be the kind of leaders they need to be to run those companies for a longer term. So I think it's a confluence of those things and being in an environment like Stanford that really encourages people to to try startups, it's not a crazy idea. Like people don't look at you like you're your heads backwards. If you start to start a company at Stanford, it's like, okay, cool. Like, when are you launching? You know.Harry Glorikian: I think it's the opposite.Ashley Zehnder: Yeah, exactly. Exactly. Like, why aren't you have a company yet? Whereas you know, a lot, many, many, many, many other places like that is seen as a very strange thing to do. So I think the environment plays a huge role. Yeah, for sure.Harry Glorikian: Yeah. I think between East Coast and West Coast too, there's.Ashley Zehnder: That's a whole, we should have a whole 'nother podcast on that.Harry Glorikian: Yeah. Yeah, exactly. Well, I live here and I was I was born and raised on the West and I remember there and I came here and I was like, Oh, this is where you are not in Kansas anymore. Like, this place is different. So, I mean, I'm hoping that the East Coast is actually embracing risk a little bit more and sort of stepping out on the edge. But it's really slow. They don't call it New England for nothing. So. But, you know, it was great having you both on the show. I this was great. I we covered a lot of ground. I'm sure people's heads are spinning, thinking about, you know, you know, different animal species and how that's going to play into this. And I mean. It really does sound like I know we have to do the hard work, but there's a lot of computational effort that has to go on here to sort of. Make sense of this and bring it all together and align it so that you can be looking at it properly and make the right decisions going forward.Ashley Zehnder: Yep. Millions of data points coming together to find drug targets for sure.Harry Glorikian: So thanks for being on the show. And you know, I wish you guys incredible luck.Ashley Zehnder: Thanks, Harry, so much. This was fun.Linda Goodman: Thanks for having us.Harry Glorikian: Thanks.Harry Glorikian: That's it for this week's episode. You can find a full transcript of this episode as well as the full archive of episodes of The Harry Glorikian Show and MoneyBall Medicine at our website. Just go to glorikian.com and click on the tab Podcasts.I'd like to thank our listeners for boosting The Harry Glorikian Show into the top three percent of global podcasts.If you want to be sure to get every new episode of the show automatically, be sure to open Apple Podcasts or your favorite podcast player and hit follow or subscribe. Don't forget to leave us a rating and review on Apple Podcasts. And we always love to hear from listeners on Twitter, where you can find me at hglorikian.Thanks for listening, stay healthy, and be sure to tune in two weeks from now for our next interview.