Santa Claus has his famous “naughty list” for bad boys and girls. No toys this year…just coal. Today, Fannie Mae - thru their DUS lenders- have a similar ‘list' that tracks the bad and good multifamily operators. If you are on this list; called the “A Check” you may have difficulties in getting another loan from Fannie Mae. Why is this important today? Because many apartment operators recently (in the last 24 months) have originated high leveraged, non-recourse bridge loans that were supposed to be sold after the rehab, rents raised and then projected NOI being much higher OR refinanced into a Fannie Mae or Freddie Mac loan. Today… you could have a problem to sell if your NOI didn't go up significantly or your sponsor didn't realize that they were on the “A Check” on a previous Fannie transaction that had a problem. Don't get coal from Fannie Mae. Listen to our conversation with two DUS loan servicers. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker's Real Estate Syndication business with SPI Advisory LLC. Please leave us a 5 - STAR RATING on iTunes; if you enjoyed this podcast.
This week the ladies have another F.A.B guest in the building who selected F.A.B. book to review! Please welcome host of "Queen Talks with Nerra", screen writer, educator and entrepreneur , Nerra Muhammad!!! This Queen helped dive into the book pick for the week, “A Woman is No Man” by Etaf Rum. Whew what a story!!! This candid conversation covered many topics such as gender roles, abusive relationships, the idea of culture, seeking personal fulfillment, and religion. Even though these are heavy topics the ladies somehow found a way to add laughter and fun… you won't want to miss this episode!!! Trigger Warning: This episode contains spoilers on the plot of the book, adult content & language. Do not listen if you want to read the book first. Please be advised this show is for adults 18 and up and the open minded. We are not professionals, or educators...just friends having candid conversations with no intention to cause harm. **Dedication: To our Patrons and supporters thank you!! To supporting local and black businesses this holiday season and to the fictional cartoon character Pizzazz from Jem and the Holograms of the 1900's, and her very real confidence. Her song's lyrics about confidence are etched in Kat's heart and still resonate in her soul today! https://jem.fandom.com/wiki/Pizzazz_(comics) *Side dedication to the women (people) of IRAN and Masha Amini
Flakko and Brother Ben talk about the community, their favorite YouTubers, $500K vs dinner with Jay-Z, monetize content and more. ------ 00:00 Intro 1:22 - Ben defines the meaning of “Islam” and “Muslim” 3:14 - Ben on who is responsible for the destruction of the hood and the meaning of “WD” 12:00 - Ben breaks down the fundamentals of NOI teachings 15:13 - Importance of uniting African-American and African people 28:26 - The agenda to feminize black men 43:56 - Ben calls out Flakko's past guest for false accusations 51:32 - Ben breaks down his take on $500K vs dinner with Jay-Z 57:25 - How content creation is like digital real estate 1:04:00 - How the community can benefit from the metaverse, NFTs, and Web3 1:10:50 - The importance of investing in knowledge and yourself 1:12:40 - Ben reacts to Flakko's favorite Youtuber gurus and how to add value to your favorite creators 1:18:12 - How to run ads and build online sales funnels 1:24:40 - Ben gives his take on Club House convo with Wack100 over the Million Man March 1:31:25 - Why Ben wanted to come on No Jumper ----- NO JUMPER PATREON http://www.patreon.com/nojumper CHECK OUT OUR NEW SPOTIFY PLAYLIST https://open.spotify.com/playlist/5te... FOLLOW US ON SNAPCHAT FOR THE LATEST NEWS & UPDATES https://www.snapchat.com/discover/No_... CHECK OUT OUR ONLINE STORE!!! http://www.nojumper.com/ SUBSCRIBE for new interviews (and more) weekly: http://bit.ly/nastymondayz Follow us on SPOTIFY: https://open.spotify.com/show/4ENxb4B... iTunes: https://itunes.apple.com/us/podcast/n... Follow us on Social Media: https://www.snapchat.com/discover/No_... http://www.twitter.com/nojumper http://www.instagram.com/nojumper https://www.facebook.com/NOJUMPEROFFI... http://www.reddit.com/r/nojumper JOIN THE DISCORD: https://discord.gg/Q3XPfBm Follow Adam22: https://www.tiktok.com/@adam22 http://www.twitter.com/adam22 http://www.instagram.com/adam22 adam22hoe on Snapchat Learn more about your ad choices. Visit megaphone.fm/adchoices
Il 10 dicembre si chiude il Festival Molichrom 2022 a Campobasso con la presentazione di “Anima Nomade, da Pasolini alla fotografia povera” il libro di Francesco Faraci edito da Mimesis con la prefazione di Franco Arminio. Noi abbiamo avuto il piacere di ospitare l'autore nel nostro podcast per parlare con lui dell'opera e dell'importanza della […]
#VN 166 🎙 26 noiembrie 2022 cu Dragoș Pătraru Noi nu trăim în lumea în care trăiesc și restul animalelor. Noi ne creăm lumile în care trăim. O ediție tribut pentru Sir Ken Robinson, autorul care a avut o contribuție uriașă la felul în care Dragoș vede educația, școala și învățarea. Audiție plăcută! -------------------------------------- Recomandări: Imagine if... Cum să construim un viitor pentru noi toți – Sir Ken Robinson și Kate Robinson
NOI per TE: https://www.segretibancari.com/Questa puntata del podcast racconta tre casi di aziende che hanno avuto un andamento anomalo ai danni di chi vi ha investito. L'obiettivo è rendersi conto che fare stock picking, ossia cercare di scegliere i titoli migliori in cui investire, è e sarà sempre un'attività rischiosa.RESTA SEMPRE AGGIORNATO- Iscriviti al canale YouTube: https://bit.ly/3vzNnzI- Segui tutti gli altri episodi del podcast: https://bit.ly/3p0C9Ba- Visita il Blog di Segreti Bancari https://bit.ly/3gbE7MU- Scopri INVESTO, la nostra newsletter settimanale premium https://bit.ly/3mMhXCiSOLUZIONI PER INVESTIRE- Investi con il nostro aiuto: https://bit.ly/3DpsWca- Impara ad investire in autonomia: https://bit.ly/3wTy5qx
Non siamo ai Mondiali, ok... ma c'è un Azzurro che sorride e ha la faccia di Ange Capuozzo, rivelazione dell'anno 2022 per World Rugby e noi oggi lo convochiamo insieme a Giacomo Bagnasco. Flop di Messi e Lewandowski e Top della Francia di Giroud, Hernandez e Rabiot. Di questo e di quanto abbiam visto sino ad ora a Qatar 2022 con Mister Nanu Galderisi. Tempi di recupero record che fanno discutere in questo Mondiale. Noi ne discutiamo con il nostro arbitro di fiducia Luca Marelli. L'Italbasket femminile impegnata a Napoli tra due match di qualificazione per EuroBasket Women 2023 e una serie di incontri per la Giornata contro la violenza di genere. Convocati coach Lino Lardo e Chicca Macchi.
Durante le giornate inaugurali del Festival della Fotografia Nomade Molichrom Giuseppe Nucci, fotografo documentarista, ha tenuto il “Workshop di fotografia documentaria incentrato sul racconto di un territorio – Antropologia e fotografia”. Noi abbiamo avuto il piacere e l'onore di intervistarlo e farci raccontare la sua visione fotografica. Molichrom: Festival della Fotografia Nomade nasce da un'idea […]
Being only an employee leaves you vulnerable to the ups and downs of the market. Real estate investing is one powerful defense against job loss and economic downturns. In this episode, Neil Timmons provides insight into the real estate business and shares his experience with overcoming economic adversity to secure a robust financial position. Neil Timmins is the CEO of Legacy Impact Partners, where they invest in real estate opportunities ranging from houses and apartments to industrial and medical offices. In 2021 Neil published his first book, Unicorn Hunting for Real Estate Investment Companies: How to Easily Attract, Screen, and Land a Unicorn. The book is tailored to helping real estate investors find and retain top talent through the strategic systemization of hiring. Neil also hosts his own podcast, “Real Grit” where he pulls back the curtain on real estate investing through interviews with industry titans. “Real Grit” provides listeners with the tools they need to secure their lasting real estate legacy! Episode Links: https://legacyimpactpartners.com/ https://legacyimpactpartners.com/podcast/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals. Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today with me I have Neil Timmins, who is an author, a podcast host, entrepreneur, real estate investor and he's gonna be talking to us about going from an agent and employee to building a significant business in the real estate space and what it takes to do so. So let's get into it. Neil Timmons what is going on, man, welcome to the podcast. Thanks so much for taking the time to come hang out with me today. Neil: Good. It's so good to see you again. I appreciate the invite. Looking forward to this for some time now. Michael: No, likewise, the pleasure is mine. I'm super excited. So you and I of course know each other. We were chatting offline just before we hit record. But for anyone who doesn't know Neil Timmins, give us the background quick and dirty. Who you are, where you come from, and what is it you're doing real estate. Neil: High level out of Des Moines, Iowa, born and raised, started as a residential real estate agent built a built a brokerage there on to REMAX for a number of years was a top REMAX guy with my 20s and then eventually found my way stumbled into investing worked my way through single family investing, we still do a little today but morphed into commercial investing. And that's a primary focus today. Michael: Love it and I hear this this theme so often with agents start as an agent, got my teeth cut, then went into the investment side. My guess if you're a top performing agent, in your local market, you're making a lot more money on an annual basis than you would if you're investing. So why did you make that transition? Why'd you make that jump? Neil: Yeah, no good question. Well, the not so fun story is I was probably 31 ish at the time. Maybe 32, I came home one day to my wife of a decade in our three little kids, all about five or younger, and my wife had them all packed up and said she was leaving, leaving for good. I had spent the better part of seven years or so working like a dog every day of the week, I worked. My second year in real estate, it worked 355 days. So that business was built, ultimately, you know, I was able to put his team in place and that business, but it largely was built on my back and my effort and so it was at that point that, you know, I had an ultimatum and I begged and pleaded with her to go, you gotta give me give me an opportunity. I understand. So give me an opportunity. She did thank God. 45 days later, I sold my REMAX and took a whole bunch of time off to decide, well, how am I going to how am I going to do this? How am I going to make a living in contribute because I like doing what I was doing and not the not to the degree in which I did it. But I enjoyed real estate a lot, right? The people, all the fun things around it. So it took some time off to evaluate things and then ultimately plugged back in largely on the investment side. Michael: And today you own a business around the real estate investing space. Tell us about that. Neil: Yeah. So I own a couple of things. On the on the investment side of things. We're primarily focused on commercial investing, right, we buy by multiple asset classes, you're on a primary ladder, Des Moines, Iowa, we still do fix and flip in the office. Although I'm not largely involved, we've got a nice little machine that runs that really good. Contractor base in place, literally same contractor. Don't quote me on how many but we've done probably nearly 200 with the same exact crew. So it makes running things and the efficiencies there of all awfully simple. I love talking to people going you know what I don't like flipping because then I gotta go pick the carpet, I gotta pick the paint whatever else I'm like, What do you mean, you have to do that we picked it once. It's the same carpets, the same paint, same countertops, the same appliance, nothing, nothing changes. You're not doing a whole block of these things. It's not like anybody notices. You just pick it once yeah and so then also, I run an education business, which we launched this year, which has been very well received from folks who want to make that bridge want to leap into commercial real estate and, you know, figure it out either how to do their first deal or how to do their next deal. Michael: And I'm curious, Neil, because I also come from the education space, and the folks that you're working with, are they the DIYers or are they the folks that have heard of commercial and want to get exposure to it in some form or another are a mix of the two? Neil: Yeah, no, it's really DIYers. Yeah, that's not largely the passive investors, if you will, it's people who are active in real estate like, like using… if you will, you know, in my career was it just laid out you know, as well cradle to grave if you will, coming through I'd like if you were to go, how should someone progress? Although most don't do that, you know, they end up in one thing and often stick there, but I kind of work my way through that. Is this constant evolution of how do we elevate oneself and one skill set to take it to a to a new level and that's where these folks are they know they've done, they've done single family, they've largely been exposed to it, maybe they've been exposed a little commercial, but just haven't gotten to the results. They haven't they haven't been on a foundation, a legacy had been on a foundation of financial freedom and, you know, arguably, in mice that that commercial gets you there faster and easier. Michael: And within commercial because it is such a diverse asset class and really name where do you see folks going that are having the most success? Neil: Oh, good question there. You know, we bring people in, and we do a lot of things from a training standpoint, want to be in an asset class exercise to go alright, well, fill this little asset class matrix out, we have my hand if answer a handful of questions to go, you know, do you resonate better? Would you rather work with people or businesses, and we just bring them through a series of questions, and that lines it up to go well, top to bottom ranked, we focus on six level six largest asset classes, there's top to the bottom, here's what here's what it looks like and then my encouragement from there is, Listen, if number two resonates a whole lot better with you than number one on that list, that's what you should do, because it's just easier and you know, this, if we were to go work on something you can get passionate about, it's a whole lot simpler, then put a little more effort into it and something you're just like, huh, maybe? Michael: Totally, totally and, you know, I'm curious, so many folks, I think can go invest in single family on the side as a project as a test as an experiment, the DIYers that are doing commercial real estate, are they doing it on the side? Are they really jumping in with both feet, kind of like you did, and making this their full time gig? Neil: Yep, great question most are doing on the side, most are either stacking it on to their single family business or, you know, if they've got a day job and several folks do is they're doing this, you know, in the evenings, nights and weekends, side hustle, if you will and you think about you know, from makeup, a number of you were to go market to single family or markets or commercial just by being in commercial, the number of available prospects has been largely diminished. It's a much more manageable group of makeup, an asset class, let's say self-storage, you're going to go market self-storage is in your county, well, in comparison to houses, it is a mere fraction. So your ability to call text or you know, mail somebody or connect with a broker, perhaps it's very manageable. You don't have to do it full time. In fact, that would not encourage it, because you're gonna sit around, you're gonna get discouraged. Because there's candidly not enough to do versus the single family side, you could always find something to do. Michael: Interesting. Talk to us about kind of the exits and the thought process around the exit from that business. Because in my mind, and I think in a lot of other investors' minds, a house is a house is a house, you know what it is? I know what it is everybody on the street, you know, that you bump into knows what it is, and knows how to buy it, versus a self-storage unit. I could maybe Name one person that I know that's involved in that business and so if I'm trying to sell it, who's gonna buy it? Neil: Yep, no, exactly. So that's, you know, what I do on the training side is bring people through, even if you know, largely set some goals, understand why you want to be in this business, and perhaps what you'll do get through the training go, I don't want to be in the business. And that's okay, too. That's okay because what you don't know or what you what you now know, empowers you, right? To make a better decision about what the path you should be going down. So we bring people through that large infusion for retraining to expose them to what this world looks like, and then how to, you know, identify an asset class that really resonates with you how to price something up, how do we get leads, so largely from a marketing standpoint, from a lead standpoint, what do we say then? How do we value it? How do we actually put something a price to it to go alright, this looks like a potential really good deal, then how do we put it under contract and then from there, you know, the exit plans largely are or we get to resell the property. Occasionally, we get a property that comes in our wheelhouse, what I call, it's not our perfect seller, so it's a good deal, just not for us. Now, can we move that along, so to liken that to single family wholesale it double close it novated right, do all the same things in the commercial side or, you know, we decide, hey, this is our perfect seller with the property we want to own. So how do we how do we close it up or we get to raise equity? How do we go get debt and then how do we bring the whole thing together to properly manage it? So that's what we show folks how to do and ultimately starts you know, on the front end of the process to go Alright, how are we buying this because I know what our required returns are and if it doesn't hit that I'm that's gonna lead us down a different path to either go it's either a non-deal or we're gonna get this moved along to another investor and cash up the big check that we can utilize for the next year. Michael: Yeah, that makes a ton of sense and you use the term that I'm not frankly familiar with novate. What does that mean? Neil: Novation is that this has become very popular on the single family side. So there's a lot of buzz on the single family side, especially for those in the wholesaling business. Okay, it is to replace one contract with one another with another contract. So essentially, if I was to, you know, say, for example, I was to buy a property from Mr. Jones, I have a contract in place with Mr. Jones, I decided I want to move this property along under innovation process, you would then provide me a contract that would replace mine, there's typically a difference in pricing, right, you're gonna pay more than what I've just paid and that delta ultimately gets paid back to me. As part of the process. I'm high level in here. There's some moving pieces but high level? Michael: Yeah, okay okay. Great to know. Neil, I'm curious if we can zoom out for a little bit, because you went from realtor agent, which is a kind of a unique profession and that, yes, you are an employee, but also you are kind of the business owner, your own of your own little business, your own little domain, and then you went and put a team in place, and then you ultimately sold that business. But for so many people that are employees in a traditional nine to five w two employee position to make the transition from employee to business owner, I think is a big leap for a lot of people. What was that like for you mentally going from? I'm going to be an agent to now I'm going to start and run and operate a business. Neil: Yeah, no good question in it. I think that's, it comes in incremental gains, right. So how do you how do you elephant, right, one piece at a time and so the same thing occurred from me mentally and I think that is? It's a terrific question because I think so much of this business, in business in general is mental, right? It's a six inch game in between your ears and so how do you combat that I read a book when I was probably 20 to 23 years old. The Millionaire Mind by Dr. Thomas Stanley. He wrote The Millionaire Next Door, that's probably his most famous book, The Millionaire Mind was incredible and it broke it down to, you know how millionaires think and my thought process, of course, is well, if you just think like a millionaire eventually, and then, therefore, act and operate like a millionaire, I will eventually become one, right. So it's not it's not hard success leaves clues. So there was a lot of things in there that that impacted me at a very deep level and one of them, the biggest takeaway for me was, the largest risk that one has is being an employee. They can let you go any day of the week, this is what I came to believe in, it's still my operating beliefs today are just risky, if you have no control and I, I am well aware that as a business owner, as an operator, as a real estate investor, we take tremendous risk. There's no doubt about it but I still think they pale in comparison to putting all eggs in one basket, men have an employer of someone else. Michael: Yeah, it makes total sense. So as you started moving things along, and created and formed and founded your business, how did you figure out who the right people were to put on the proverbial bus because I think, again, so many people have either a great idea, and they're really good at maybe doing that one thing. But doing that one thing isn't a business and so how do you scale it and have a proper functioning, running operational business? Neil: Yeah, no, great question and that's, that's probably, if I was to attribute any of our success over the course of last three ish years, two and a half years, somewhere in that range, we've had significant success in that period of time, it's largely been correlated to my evolution as a leader, knowing that the only way forward is ultimately with and through other people. And so I've had a focus internal so go back to a question you just asked earlier, from a mental attitude of taking that leap. For me, it's how do I develop as a leader how to become a better a better person, somebody that people look up to somebody that people want to be around, so many people want to listen to, and, and be on the same bus with going rowing in the same direction and so that has largely, that's been a big focus over the course the last couple of years. When I was at a spot where he's gone, it's time to grow. You can't hire and retain a player's unicorns as I call them. You can't hire and retain unicorns if you're not one. So how do you how does one improve their personal self to be able to get to that level? That other a players want to be around? Michael: Yeah, that makes total sense. So what it what did you do? Can you open the vest a little bit, let us peek under the curtain… Neil: Yes, you know, it's, I wish there was a silver bullet here, but it's largely just been, you know, what do they say what's mentionable is manageable and for me, it's just having that Cognizant thought that okay, well, now, I'm mindful of this and so now I need to give thought to this. How do I say things how do I handle things? How do I handle certain situations? What is the impact when making this isn't with an employee or with a team or with a customer in front of folks, how's this gonna resonate? What does this look like and then having the vision as a leader, as any leader, doesn't any organization, that vision to go, where are we going and this isn't about me, this is about us and so oftentimes you'll hear me say, we did this, I almost, you know, I try very hard to say that 100% of time, I didn't do anything. We did this collectively, all the results are collective right. It is us together and that reading, continuing to stay focused on that, stay ahead of what's transpiring, trying to, you know, hosting a podcast being around other people like yourself, other people in the industry having an understanding what's going on. So been trying to be on that curve from a knowledge base standpoint about what's transpiring that's helpful, too. Michael: Yeah, yeah. I love that and asking for a friend. I hate people and I don't think I want to interview people and screen people and that sort of thing. Does that mean that I shouldn't start a business with my great idea? Neil: The first part is I don't like people. So let's just call that the introverted, right? They don't want to interact with other people. My right hand gal is an introvert. She's not very gregarious as it relates to people. She's very good with people. But she wants to she's far more task oriented about how do we execute on what we're doing? I think that's terrific and now, what hadn't you hire her because she's the Yang, right? It's Ying and yang. She complements me in a perfect opposite fashion and I do the same thing. The other way around. Yeah, it's, I think that's terrific. I think it's wonderful, if you can, what you just expressed was, you know who you are, if you know who you are, you can identify a path forward and I would encourage you absolutely. Knowing what your deficiencies are is wonderful. We're all we're all given strengths someplace, just balance this balance your weakness with somebody else. Don't try to what are the what don't master in the weaknesses, right? So anytime we have a weakness here in anybody, you know, largely for me, it's going just don't do it. Don't master in the minors, because at the end of the day, you're still going to be a d minus for you, no matter how good you get at your weakness focus on your A's. Michael: Yeah. Oh, that's such a good expression. I can't tell you how many times I've heard people say, oh, I wanted to visit with my best friend. We're so similar that I'm like, that doesn't sound like a good partnership. Neil: Sounds like sounds like a great bar and I but not a good business decision. Michael: Yeah, I know. Totally, yeah right. Neil, if we zoom back into the commercial side of real estate coming from the single family space, what is it that you see is the biggest hurdle of barrier to entry for folks that want to make that leap into commercial but utilize someone such as yourself to help them get there? Neil: You'll never guess us? Are you ready for this? Michael: I hope so. Neil: I know, you're it's a mental barrier. It's all made up in their head. It's they don't think they can't. Yeah, but they don't think that that is it because past that, the ability to go well, okay. Well, if you've ever let me let me liken it to single family. A duplex is like a single family rental house, right? It's just two doors and the numbers change a little bit? Well, a 20 packs is the same thing. There's largely, there's not much difference in these things you're adding some zeros are calculated a little differently, but it's pretty much the same. In fact, management, in my opinion, gets easier. The more doors you have, right, you get professional management, you get it, it becomes simpler. Yeah and then to make a change to go into some other asset class, we just have to make a bridge. What does that look like? They have to go to an industrial buildings on a triple net lease, which is probably the simplest thing to calculate and get one's head around when you're going, well, they just pay a lease rate, and then they fix all the stuff that goes wrong with it, right? That's it your true and your true and why is the rent, we've got multiple properties like that and we're the management company, which means we just get the rent and never hear Yeah. Michael: Yeah, that's by far the easiest piece of property in my portfolio is triple net. Neil: Yes, correct. But people are, you know, we're scared about what we don't know and that's true of all of us, right? We're scared about what we don't know, afraid to make mistake, which is totally understandable and so we just help folks, we educate them as we go answer questions as we go and show them the exact path to be able to get from, you know, I want to learn more about commercial real estate, I'd love to be able to buy a deal to actually get to a close. Michael: That's awesome. And I'm curious, Neil, what's your favorite asset class and why? Neil: My favorite asset class, although I own I'd have to calculate up four or five different asset classes, but my favorite today is going to be industrial. Michael: Industrial why is that? Neil: Yeah, industrial is in demand like crazy. Secondly, in 2021, had the second largest rent increase across all asset classes, only trailing two apartments. But in comparison to apartments, they're far easier to manage, right, I get a triple net deal, or a double no deal, there isn't much to do, there's very few moving pieces you end up with, on average, let's say a five year to 10 year lease is pretty straightforward. Michael: Okay. So if I'm playing devil's advocate here, and we're looking at this industrial building, this is suited only for a business. This is not for people can't come live here and the type of business you might have to build to suit it out for that particular business 5-10 years down the road, that might be a future Neal problem. But let's drive down that path that tenant leaves goes out of business, what have you economy turns? If businesses aren't doing well, in the area, are you stuck with this vacant building now? Neil: 100%. If businesses are doing well in the area, meaning they're laying off or not employing people, my thesis is you still have you still have an apartment problem relative to occupancy and or rent rates. This goes back to earlier question is, admittedly, we have to take a risk someplace, right? It's just my comfort level and I like the box, you know, not a somehow engineering building has been added on to or defined for one, one person's exact use, I like a big giant box, just a rectangle, that's it, a business of multiple businesses come into that and fill it out in which way they want to. So like the fact that if I can buy my, my preferred buying is for buying some older not buying brand new stuff, buying some older buying something with a value add or on buying at a discount of some managers, the intent is to buy it correctly. And if I can buy a property, let's call it make up a number right now 70 to $80, a square foot brand new construction is gonna be 120 to 130 a square foot, I think I'm in pretty good shape over the course of coming years, I think that my dollars, and my rent rates get pulled up to the fact that sheer cost of new construction is gonna be 60% higher. Michael: All right, I dig it, I dig it and for anyone, I'm just realizing now, some of our listeners might not be familiar with the term double net triple net lease, can you give us a quick definition of what it is? Neil: Yeah, it just defines what people pay for double net, for example, is probably one of the least likely terms that use but let's say triple net triple net means ultimately that the tenant pays for everything, there may be some nuances inside the lease, but taxes, insurance, repairs maintenance, the tenant pays for that. So if your releases 100 grand a year, your net is 100 grand a year before, before your mortgage, any sort of debt payment you have on it. A double net means they don't pay for everything they pay for perhaps taxes and insurance, but not all the repairs and all the maintenance, and therefore your NOI is gonna be a little lighter, depending on what you have to maintain and pay for. Michael: Okay, perfect and I'm sure some of our listeners are hearing that and thinking like, this is the best thing since sliced bread. I'm gonna go put all of my single family homes and all my apartments on Triple Net leases. Why is it only a thing that's been heard of in the commercial space? Neil: Yeah, no good question. You know, to liken it to single family, you're like lease with an option or a contract sale, that's probably the closest thing you get to a triple net in the in the single family house side, right? So you kind of contract sale, somebody that mean that contract buyer is now responsible for everything associated with that house, right? That's what it looks like. If you look at the closest thing, there's some differences there. Obviously, a contract sale into a down payment interest rate. That's not the same as a triple net lease on the industrial side but that's probably the easiest way to liken it to single family. Michael: Yep. Yeah, that makes total sense and for anyone listening, like Neil mentioned, it's just the cap rate is like the easiest thing ever in the Analyze easy thing ever, you got a million dollar building cap rate 6% they're paying 60 grand a year, then bam, boom, end of discussion. You're not paying taxes, you're not paying insurance, you know, capex and maintenance. So you can calculate your true return, and then look to calculate what your debt service payments gonna look like and determine what your return looks like after that, versus the traditional single family rental or apartment or traditional residential space. They pay you a set fixed amount, the rent, and then you have to go figure out the taxes, insurance, repairs, maintenance, capex, that sort of thing. Neil: So hey, just because I like it or you know, in other investors likes something else doesn't mean it's right. There's only what's right for you. Michael: Yeah, yeah. I love it. Neil, this has been so much fun, man. I want to be very respectful of your time. Let's get you out of here. But before we go, like where can people reach out to you find out more about you continue the conversation if they're interested? Neil: Yeah, no, great question. Well, if you want to learn more about commercial real estate getting rich in what I call the 20x niche, why do I call it that? Well, because our target internally is to produce in a monthly return that's 20 times that of us Single Family return so we're scaling up largely is just go to my website give you a free download free report just you can learn more about the industry getting into commercial. So www dot legacy impact partners forward slash gift JF T legacy impact partners Ford slash gift: https://legacyimpactpartners.com/ Michael: Right on thank you so much and before I let you go I mean I'm not gonna let you out of here without mentioning your podcast you're also the host of a podcast was that was a you're kind enough to have me on what is that called and what can people expect to hear on it? Neil: Real grit is the name of it it's about the trials tribulations anybody from real estate. So we talked about single family talking about commercial talk about everything in between. But really, so that we fully admit that you know, life isn't all about Lambos and big houses on cash and checks and everything on Facebook that or social media wherever you'd see it right? That there's ups and downs there's, there's we have to go through stuff and many times to be able to find our own personal success and so we talk through that and people's personal stories and how they got there because all bunch people, they get their different ways and it's really exciting. It's, we get into some really interesting, very dynamic conversation a lot of fun, love it. You and I had a great conversation. Michael: I had a ball. I had a ball. Neil: It was a blast, man. Michael: Awesome. Well definitely go check out that podcast, real grit, a lot of fun, really cool stuff going on there. Neil, thank you again. Any final words thoughts for our listeners? Neil: No, you're going to find me you know, like I shared it though the website I'm also on all the all the social media platforms. Facebook's the best place to find me Neil Timmins, or there are many Amin just spell it right you got me Michael: Right on, many thanks again. Appreciate you, see you soon. Bye. Neil: Bye, bye. Michael: All right, well, that was our episode. A big thank you to Neil for coming on the show. Really, really interesting stuff that Neil's been through seen and experienced. As always, if you enjoyed the episode, we'd love to hear from you with a rating or review wherever it is get your podcast, and we look forward to seeing on the next one. Happy investing…
Ryan Gibson is the President, Chief Investment Officer and Co-founder of Spartan Investment Group (SIG). He has organised over $250 million of private equity for Spartan's projects. Ryan has experience managing and developing SIG projects in challenging markets. For SIG Ryan is responsible for Investors relations and capital raises for projects. In this episode we talked about: Ryan's Background and Journey into Real Estate Self Storage World Self Storage Asset Classes: Benefits and Downsides Purchasing Real Estate Key Metrics Finding Acquisitions Investors Relations Interest Rate Environment Underwriting Deals 2023-2024 Opportunities Useful links: https://spartan-investors.com/ E-mail: Ryan@spartan-investors.com Linkedin: https://www.linkedin.com/in/ryan-gibson1/?trk=public_profile_browsemap Transcriptions: Jesse (0s): Welcome to the Working Capital Real Estate Podcast. My name's Jessica Gall, 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 Jess Fraga. You're listening to Working Capital, the Real Estate Podcast. My guest today is Ryan Gibson. Ryan is the president, chief investment officer and co-founder of Spartan Investment Group sig. He has organized over 250 million of private equity for Spartan's projects. Ryan has experienced managing and development of s i's projects in challenging markets for Sig Ryan, who's responsible for investor relations and capital raises for projects. Ryan, how's it going? Ryan (49s): Good, good, thanks Jesse. Thanks for having Jesse (51s): Me. Yeah, pleasure. The pleasure is mine. Thank you for being on. Really interesting. Today we're gonna be talking a little bit about your background, what you do for Spartan, and I think we're gonna dive into self storage and some of the, you know, the different applications of self storage and maybe demystify some of the, some of those topics for, for listeners that are not as familiar with that asset class. But why don't we start from the beginning. You're at Spartan now. You mentioned prior to the show you had some friends not too far from my neck of the woods. How did you get started in, in our industry or, or was it in a different industry and you and you came over from there? Ryan (1m 32s): Yeah, I was kind of over by your geographical side of the, of the United States in Pennsylvania was where I went to college. But actually I had a background as an airline pilot. Flew for about 17 years and then transitioned into commercial real estate investing. And the way that the kind of, the way that it happened was I actually met my neighbor who ended up being my business partner. And so kind of a unconventional way of meeting a neighbor, one of the houses for sale next to me came up and I wanted to really get the buyer in there and I convinced my neighbor to this guy to buy this house next door to us. And then he convinced me to start a business. So it was a nice exchange. And then we just started flipping houses and building condos in Washington DC and that was kind of where we got our start. And then we really loved the economics and the, the overall business thesis for self storage. So we jumped into self storage as soon as we could and we built one of the largest, 40th largest self storage platform in the United States. So super excited about, you know, the industry and, and everything that it's done in general with self storage investing. Jesse (2m 43s): So do you still fly or was that, was that a clean break? Ryan (2m 47s): Yeah, still get some flying in from time to time, especially privately. But yeah, mostly a clean break from the airlines, so yeah. Jesse (2m 54s): Right on. Yeah. Ryan (2m 55s): So Jesse (2m 56s): In terms of the, the work that that Spartan does, is it, is it exclusively self storage or do you do raises for other asset classes in, in our space? Ryan (3m 5s): Yeah. So we, we built a mobile home park, one of the only mobile home parks that's been built in the state of Washington last year and sold that. And that's kinda a one off deal. And we've also raised money for RV parks. We have two RV parks in west Texas, and then we've done syndications for condo developments. But that's all of yesterday year. Right now we just raised for self storage and inevitably when we buy like big self storage portfolios, we might get a car wash that comes with one or we even have a chicken wing store that, that, that came with another one. But you know, for the most part that, you know, 95% of the portfolios are, are self storage. And that's primarily what we're focused on. Jesse (3m 41s): Just, just the, an an addendum to the, the crown jewels of a portfolio chicken wing store. Ryan (3m 49s): Yeah, we're actually under contract to sell it. So we, we will no longer own kicking wings here at the end of the end of the year. So there you go. You Jesse (3m 54s): Can, you can put that on the, on the cv. Ryan (3m 57s): Exactly. Jesse (3m 58s): In terms of the, so the self storage world, maybe for, for listeners, we've had a few guests that have talked about self storage. It's still kind of, you know, it, it's, it's almost for a lot of people that aren't as involved in it, it seems more like a kind of an operating business as opposed to a real estate, pure real estate play for those, you know, you're, you know, we mentioned before the show you're in front of an audience and you know, you pitch on self storage. You know what, what, what's your typical, you know, conversation on how you outline how you think about self storage? Ryan (4m 32s): Yeah, so I always ask, you know, I, and I'm, you know, obviously when we pitch from, we're in front of high net worth investors, we're ahead of, you know, local Rios, everything in between, right? So I always ask the same question, which is, you know, how many people in the room have used a self storage and pretty much every hand goes up, it's pretty surprising, you know, or at least 90% of the room. And then the second question I say is, keep your hands up. If you used your self storage because you just simply have too much stuff and the hands go down, well, most of them go down, some of the, some of the people admit that they maybe needed to get rid of some things. But my point in that is, is people use self storage, not because they have too much stuff, but because they have something that happens in their life that creates an event for self storage needs. And so I always give the personal story where I was just my wife and I in Seattle, we moved out of our apartment and bought a house and then we moved out of that smaller house and bought a larger house when we had our first kid. And we put our stuff in stuff in sell storage and we moved because we were in between selling a house and needing to stage it and prepare it for our, for, you know, to put our best foot forward to get it on the market. And then, but we hadn't quite closed down our new house yet. And of course, you know, inevitably those things get delayed or there's things that take longer than you anticipate. And so you end up in sell stores for a little bit longer than, than you'd like. And then we moved into our larger house and wanted to renovate cuz we had a second child and then we had this thing called covid hit where we wanted to build an office in the house. We wanted to free up a room to work out in. We wanted to just kind of make better use out of the space that we have in our home. And so we kicked off a renovation and we ended up putting our stuff into self storage. So it's amazing what life events do to drive the use of self storage. And I think people kind of look at the asset class, they kind of overlook it as like something that, well, you know, when times get bad, people will cut their, their memberships and cut their use of self storage and you know, I like multifamily or like another asset class because that's something that, that somebody's always going to be needing a place to live. But I think what people overlook is that self storage is a tool that people use during tumultuous times to rent when, when they have some kind of disruption and likewise when they have some good things happening, like an expanding family or a business that's booming, et cetera. So I think it's, you know, it's, it's life events is probably what I would, what I would, you know, encourage people who are learning about the space to consider. And then the other thing is, you know, I always get the feedback that, you know, Ryan, they're just building them all over the place. You know, I see 'em going up on every single street corner and I feel like they're just building too many of them, but yet I go to them and they're full. And so I think what's interesting is from 2010 to 2020, they actually built more facilities, self storage facilities in the United States than they had in the previous asset class history of the, of the space. But yet occupancies actually went up 10% on the average over time. So not only did they add all that inventory to the market, but it was absorbed and higher occupied at the end. And I think what Americans, especially c cell storage as is, is that tool to use in a, in a certain time of disruption. So it's an asset class that's here to stay and I think it's gonna perform really well as we head into a newer recession or, you know, a terrible time with interest rates getting jacked up. So. Jesse (7m 57s): So on the, kind of, on the topic of individuals requiring self storage, it seems to be like with those stats, do you see any geographical stats or any trends in terms of urban versus rural in terms of the need for self storage or not? You know, when you're looking at portfolios or you're looking at purchasing sites, what does that look like? Ryan (8m 19s): Yeah, I think life events are consistent, whether it be rural or urban. And I think that some of these more rural markets are building, you know, track developments of, of new subdivisions and homes that come with covenant restrictions that disallow you from putting that branded, you know, utility truck in your driveway after work or having tools or equipment in your driveway. And you know what's interesting, I think about self storage is 66% of Americans that run a self storage also have a garage. So just because you have that bigger stable to put your stuff in doesn't necessarily mean that you don't have a need for for storage. And so an alternative to parking your truck or car, your work car in your driveways, a lot of people use self storage for auto, auto storing as well. And also like, and obviously in the urban areas it's the same thing. It's, you know, you have a, a rising cost per square foot for apartments and housing and so you look at self storage as maybe an alternative option to more efficiently storing belongings in, in cutting costs that way by having that into a self storage. But also I think rural areas we see, you know, when you talk about rural, I mean how far out are you really talking? We like to be within 30 minutes of accessing a major population density center. So you know, 30 minutes south of Seattle or 30 minutes south of Atlanta, et cetera, where we can be, you know, where where there is a big population, maybe a bedroom community that lives in that area, but then drives into a city court to work. Jesse (9m 51s): So you mentioned before the this idea of, you know, when people get self storage and the idea of actually, you know, saying, okay, I, I don't need it anymore. So the stickiness of, of self storage for the, you know, the technical term, what do you find when people are actually, you know, they, they have a life event, they have self storage. Like to me it's a lot to do with Parkinson's law. You know, when you, if you have enough space or if you have a a certain time, you end up using all of it somehow people fill the amount of storage. Like I just recently had, you know, storage at the front of my place. I'm like, oh, this is now gonna be more than enough and two weeks later it's full. So, you know, how do, how does, how does that look from a, from a stickiness standpoint, it seems like when individuals do purchase or start or start leasing self storage that they stay, you know, for the long haul, if not add more to it. Ryan (10m 43s): Yeah, it happens for a number of different reasons, but you're absolutely right. I don't think anybody intends to stay in there for just a few months. I think our average portfolio occupancy is 38 months right now. And so I think a lot of people move in with the intention of, oh, I'll just get it and need it, you know, temporarily. And then of course a year goes by or two years goes by and they think, well I've had it this long and what's, what's another couple of months? And when they, or when they go there, they open up the door and go, I don't wanna deal with this right now. So it's not like quitting a gym membership where well they make it difficult to quit a gym membership. But, but, and there's other aspects at play, but I think it's the same thing in quitting your, having your unit I think is the sa is is the same, you know, and needs change and you know, things get swapped out. But you know, typically I like, I like what you said about Parkinson's law actually at work we've, at Spartan, we've actually started to take one hour meetings and turn them into half an hour meetings because Parkinson's law, if it's an hour meeting, you're gonna take the whole hour, right? So we've reduced that down to 30 minutes and I think people think the sa I think you're dead nuts on, I think it's the same thing in storage where you know, I have this, I have my storage unit so I can get more stuff and be a little bit more lackadaisical about getting rid of things or moving stuff around or what I really actually need because I have this space to use. Jesse (11m 58s): So yeah, then for those interested just Google Parkinson's law and one, I actually, I can't remember which book, but recently the, the Law of Triviality and in just talking about how, you know, simple decisions like your example with work when you know, have a committee on, you know, picking the best lunch place for work, those things can take forever because everybody has opinion, but if something more technical people will, you know, you find that other people don't chime in as much. But anyways, two, two interesting little quirks. How do you, how do you look at self storage as compared to our other asset classes, whether that's hotels, office, retail, industrial, where does it line up in terms of the kind of the benefits and maybe some of the cha challenges or drawbacks? Ryan (12m 44s): Yeah, I would say I would, I would compare it most as far as what is it really like to operate a self storage business. I would compare it most to being like retail, when you're picking a location you have to think about retail. Like you have to think about in, in a retail mindset, you know how many people live around the three or five mile radius of a site because that is, that is, that's the market. You could be in Seattle, but it doesn't really matter where in it matters where you are in Seattle, not that you're in Seattle. And so people aren't gonna drive more than a few miles to rent your facility generally. So you want to, you want to think about what are the characteristics of the population that immediately surround the property. And then the other thing, you know, comparing to other asset classes, I think that what makes us unique is that we actually have collateral on people's belongings. So if you don't pay, we actually can put a lien on what's inside of the units and auction off the, the storage contents if they don't pay after 30 days too. So we don't have the lean law or the eviction moratoriums or rent controls that a lot of the, as other asset classes do. And I think what what makes it really powerful is the 30 day lease that we get. So, you know, they signed one, one lease agreement, it's good for into perpetuity but it's a 30 day lease meaning that we have control over the pricing of what we can charge that unit every 30 days. So when you think about inflation times where the CPI is going up, you know, seven to 9% and you're stuck in a triple net lease on some industrial tenant or some long term triple net lease, we're in a very good situation cuz we can increase our rents every 30 days to keep up with inflation. And it's a very sticky business like you mentioned where once a tenant moves in, they're unlikely to move out. And with all the other facilities going up in cost and kind of keeping up with this trend, you can really increase that NOI advantageously for, for self storage. Some of the downsides, you know, obviously, and you know, when I think of the downsides I think of, you know, competition, people moving in, people building facilities around you, that's always gonna be be, you know, an a thing. So you just have to consider that when you're doing your feasibility study, you know, what building permits are in the pipeline and what demand and saturation numbers do I have and what is my competition charging. You really have to do a good feasibility study to help mitigate some of that risk. Jesse (15m 5s): So when you're looking at actually purchasing from the, the company standpoint or the acquisition standpoint, are you, what's the key metric for you? Are you breaking it down to a per square foot cost or is it more so a monthly income? How do you, how do you analyze that? Ryan (15m 22s): Yeah, so I would say the first thing we look for are the ability to raise rents to market. So we'll look at what all the competitors are charging and we'll look at their occupancy and look, pull the data on that and see if there's an opportunity based on the current rent role, based on what people are paying currently to bring like kind valued properties to market rents. That's the, that's your lowest hanging fruit. The other thing that we like is we charge 10 insurance. So we can actually sell tenant insurance to our customers for in between 15 to $20 per month. We're, we're retaining about 70% of that revenue. So we look at, you know, is the, is there an opportunity to add tenant insurance cause maybe the mom and pop that we're buying from didn't have tenant insurance to begin with. Then the next thing that we look at are the ability to expand the facility. So typically we like to go into a market that's underserved and we're buying a facility with excess land in which we can develop additional square footage on, thereby increasing the NOI and the overall value. And then the, you know, probably the last thing that we look at is just operational efficiencies that the mom and pop isn't taking advantage of currently. Like good marketing, maybe they have a fully occupied facility, they haven't raised rents in a long time, they haven't done any fix up to the property, they haven't really made it look nice or they don't have a call center or they're not answering the phone or you know, just little quirky things that might be happening where it's like, man, I can't believe they're not doing that. That seems, seems obvious to, to, to implement that. So those are kind of the four things that we look at in any given opportunity. Jesse (16m 53s): So not too dissimilar from other asset classes and buying, you know, where you can add density, you have potentially an operator that might be under utilizing some of the, what they're doing or not doing certain things that you would put in place. And seems like the systems are a big component of that. In terms of the, so on the other side of things where people investing with you, are you doing a funds model? Are you doing, you know, portfolio or asset specific raises for capital? What does that side of the business look like? Cause the hat, one of the hats you wear is, is investor relations. Ryan (17m 27s): Yeah, so we do both, we do deal by deal syndications and we do a fund. So we really have good options in as far as that goes. The other thing that we do is we don't, we not only raise equity, but we also have separate offerings where we can raise private debt and you can actually invest in notes, promissory notes with a personal guarantee on the debt side, you know, we have short term debt needs across the portfolio to buy existing facilities that are already well occupied and cash flowing to, you know, needing to add on additional units and just kind of bolting on that private debt in the back. But we, we do both and, but, but most recently we had a fund that targeted very specific types of value add self storages, but that's winding down. And in the new year we'll have a new offering that is a single asset syndication. So it's, you know, it's a one offering with limited properties, but it's a large portfolio of about 30 properties. So our offerings, while they're, while they're not funds pretty much in self storage, you know, when they, you know, typically it's rare to find a one deal one, one facility syndication just because the dollar amounts on these facilities are so small or like a multifamily, you know, it's easy to find a 20 or 30 million building. It's, it's less common in storage and more common to find more of a portfolio purchase. Jesse (18m 47s): And I guess from that point of view, if it is a fun model or multiple properties, you know, to, to avoid drag on your capital, it looks like you have to have, you know, some, a good pipeline of deals coming in. What does that process look for you in terms of actually sourcing, finding acquisitions? Ryan (19m 3s): Yeah, we buy a facility about every other week on the average and we have a team of about five people on our acquisitions team. And we're looking at both off market and on market opportunities with listed with brokers. And so we've got deep relationships with our sellers, deep relationships with our brokers and just your standard, do what you say you're gonna do attitude about, you know, sticking to contracts and closing everything that we've purchased is really important to get, you know, quality deal flow for our investors. Jesse (19m 31s): Yeah, no, not not getting bogged down in re trades and, and filling Ryan (19m 35s): Around. Well it's interesting time right now. Interest rates going up, that's for sure. Jesse (19m 40s): For sure. And, and on that note, I'd like to talk a little bit about the, so we've talked a little in terms of the inflation head hedge. I think in general, you know, I think listeners know real estate, part of the reason we do, you know, you have that other piece of the puzzle when you have the state of the economy where it's at right now, inflation going up, you know, at the very least you can download that to your renters in this case download to your customers with probably more flexibility, flexibility given the short-term nature of your contracts. In terms of the interest rate environment, I'm not gonna ask you to crystal ball things here, but how are you preparing, how's the company preparing for, you know, the next year, you know, what steps have you taken, if any, and, and has, has that affected your investment philosophy? Ryan (20m 28s): Yeah, so I, I think this started five years ago when we started buying self storage. We only took on fixed rate debt and for the most part long term fixed rate debt. And we didn't have the, we don't have a need to buy interest rate caps or a need to be in a, in a, a panic with expiring loans right now. I think our next, I think our first expiry of an interest rate and you know, we've been buying storage since 2017 is in 2026. So, and that was one of our early on that was like one of our first sell storage loans that we've ever taken on. So, you know, fixed rate debt is really important and I think we're seeing that in the market right now where some of these multifamily bridge loans maybe becoming, coming to the end of their, of their term and they need to be refinanced into higher interest rate debt and maybe the rents haven't gone up or the business plan can't support that higher interest rate. So we're not subject to that. We do have one portfolio in our entire ecosystem that has a variable rate and that was only because it was recently negotiated and you know, unfortunately, you know, we had no other option, but that also was done at a very low, you know, sofa index. So not, not terrible, you know, four and a half, 5% effective rate even with today's interest rates, which is, which is not as good as we thought it was gonna be, but, but definitely not great. So I think going forward, you know, I'd encourage, you know, you know, others that are looking at buying or looking at investing, you know, make sure that you're investing in fixed rate debt, obviously that's really important to, you know, to strategize against and you know, we're seeing obviously rising interest rate environments. We're also seeing, you know, a bigger spread on prime or on sofa that would even further drive up the interest rates. You know, the banks just don't want to take the, the risk of fixed rate debt and getting into, into a high interest rate environment where they've locked you in really low. So Jesse (22m 23s): Yeah, and, and for future acquisitions, you know, as where we're at right now in terms of the underwriting, I imagine it's just going to be something where there's a little bit more of a conservative nature going forward. I, I had a discussion with one of my colleagues and we're talking about the trade off between your, you know, return on equity, you know, when you're putting more down, obviously there, the cash flow is going to be better, your return on equity is going to be lower, but you know, from my standpoint, especially living in a very expensive market for us, you know, if you've ever experienced negative cash flow or, or you've ever lived in an area where people will buy negative cash flow because the appreciation has been a hockey stick graph, once you start getting burnt on that, you start realizing that, you know, what, 14% IRR doesn't sound so bad when, when the world isn't, when the world's blowing up. So what's your view on that when you go forward in terms of, you know, cash flow, the amount of equity you raise and just, just, you know, conservative underwriting in general? Ryan (23m 26s): Yeah, I would say that going forward, I think it's, you, you are going to have to put more down or you're gonna have to find a seller finance transaction if the seller wants top dollar or you'll see a decrease in the amount of deals that you can actually make work if they don't have enough value to add add. You know, we set out this year to buy 400 million and we've only purchased about a hundred million and that's because we got into an environment where the interest rate was so high and the cap rate was so low and cap rates have not really changed all that much in our, in our industry. You know, you look at the last Green Street report that came out, you know, the end of October, cap rates have only gone up in self storage 20 basis points since all this started, but yet interest rates are up, what 350 basis points from the start of the year. And so the, the pricing has not adjusted to what the Fed funds rate is, and that's, that's slowing down acquisitions or it's creating a need for some kind of seller financing. But, but also I gotta throw out there that there's a lot of equity still in the market. There's a lot of wealth that's been created over the last decade in sell storage or in just in the industry in general where there's groups out there still paying cash. So there's still a, a a, you know, a stockade, there's still a bunch of buyers out there that are transacting. We're selling two properties at the end of this year, like I mentioned earlier, for full price. I mean we're, we're getting every dollar we, we, we would've gotten that price a year ago. We're getting it today. We're, we're really not seeing any discounts yet in the market. And I think, I don't, I don't know if we're ever really gonna get to that point. So if you're a buyer that relies on financing to transact from traditional banks, you know, you might just see your margins go down a little bit or again, like you said over equitize or get creative with seller backed financing. Jesse (25m 13s): Yeah, and I think there's, there's also a limit to, you know, seller financing. Even if you can do it at a certain point, it's, you know, your debt service coverage is still still impacted if, you know, unless you have somebody giving you free money. But I think, yeah, I think, I think we're seeing that across the board right now. It's funny what you said for, for Green Street report, like it comes down from, from our point of view is that the bid ask spread, it's just we haven't, we don't have buy we don't have sellers yet. Not across the board acknowledging that their prices need to come down or they just, you know, whether it's taking off the market weighted out. But I think we're, in our, especially in our more expensive markets, I think we're gonna start seeing them fatigue a little and it's gonna be the ones that didn't do what Spartan has, has done it seems, and have that variable debt or that, you know, that refinancing coming up and that'll probably trigger a little bit more slack in the, in the, in the market in terms of actually getting some stuff at a bit more of a discount. Where do you see the opportunities for, for your team 20 23, 20 24? Whether that's asset specific or geographically? Ryan (26m 23s): Yeah, I would say, you know, sticking to fundamentals of what, where we buy the Sunbelt high growth states, what makes self storage really attractive I think is the fact that it doesn't matter if it's a blue state or red state. You know, our rental landlord laws are nonexistent pretty much. I mean we, we all have the state law that we have to comply with for lean, lean auctions and lean rule laws, but they're pretty consistent nationwide. So we really like that. So we're gonna continue to go in places like the Pacific Northwest, Texas, Florida, Georgia, Tennessee, where population is going. I think those fundamentals aren't gonna change at all in that, in that regard. I think opportunities are gonna be in development. I think opportunities are gonna be in, you know, deep value add. I think that's gonna be a a, a play. I think buying what we've, what we've typically purchased for at a discount based on the current financing in today's market is still an opportunity. As much as I say prices haven't changed, sometimes they do sometimes, like you said, you stumble on that, that transaction and we bought a portfolio this year and we re traded two and a half million off the price because of interest rates and you know, maybe today, yeah, the cash flows okay, you know, maybe mid single digits, but in a year or two from now and rates adjust and go back down, you know, our NOI is increasing and we're gonna be able to pull out, you know, you know, potentially a lower interest rate loan with great proceeds essent, you know, at some point in the future. So I think, I think investors wanna think short term sometimes, but really long term, I think there's a really great opportunity to be in commercial real estate in general, specifically self storage based on what was purchased today at maybe a little bit less of a, of a premium than what would've otherwise transacted because of the temporary environment of interest rates. Jesse (28m 13s): Yeah, it's kind of rare too. You have this asset class that's pretty apolitical. I think that part of the reason, at least in kind of the Canadian sphere, we're seeing more self storage is the fact that most areas, we have such strict laws when it comes to rent control that, you know, investors are like, well, this makes more sense. We can, we can actually raise rent, you know, when a contract ends. Which is not a crazy idea, but it's definitely something I think we're seeing, we're definitely seeing more of up here, you know, it's, it's exploded over the last five years in the states, but no, those are, those are great points. Ryan (28m 49s): Yeah, and I, I think, you know, that's, I always like to say, you know, we got into this, one of the reasons why we got into this space is because we never wanted to be in the business of kicking somebody outta their house. You know, that, and, and you know, when we go into c and other, you know, economic downturns, the government doesn't wanna see that either, which is why they put all these restrictions in place. But I always joke that nobody really cares about grandma's dresser, you know, so no problem, no, no problem kicking somebody outta their unit, but, you know, again, their home is a, is a much more serious matter. So I don't, I don't think you're gonna see that go away anytime soon, so let's hope not. Jesse (29m 23s): Yeah, yeah. Well it's funny, even like during the, during the pandemic here, I remember having buddies working out at some of their self storage cuz they were big enough and we just had such strict shutdowns. But no, that's funny. I wanna be mindful of your time here, Ryan. I basically, in terms of kind of going forward, maybe before we, you know, we'll ask for where people can reach out to you, but in terms of kind of investing or learning more, where, where would you direct listeners to, and we'll put some show notes and links up as well. Ryan (29m 55s): Yeah, we put out a really nice self storage blog and just state of the economy. We actually put a new article up every week in our, on our website, spartan hyphen investors.com. It's S P A R T A N hyphen investors.com. And there's a newsroom that we have that we put out articles in. So if you're just interested in doing that, you can subscribe to our newsletter too. We do a print and digital version of our newsletter, which is kind of fun and, but my email address is ryan spartan hyphen investors.com. You can catch me on all the social media channels too. So Jesse (30m 31s): My guess today has been Ryan Gibson. Ryan, thanks for being part of Working Capital. Ryan (30m 35s): Thank you. Jesse (30m 49s): Thank you so much for listening to Working Capital, the Real Estate podcast. I'm your host, Jesse Fraga. If you like 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 Fali, F R A G A L E. Have a good one. Take care.
Today hosts Braden Cheek, Brain Duck and Joel Thompson discuss 8 major things you need to know when considering profit & loss in commercial real estate. Time stamps: 0:00 - Introduction 1:52 - Our new Owasso co-working space is coming soon! 2:35 - Today's topic: understanding profit & loss! 3:27 - Gross Income / Revenue 5:18 - Different types of expenses! 8:11 - Net Operating Income (NOI) 10:23 - CAP Rate & how it interacts with the NOI & purchase price. 11:55 - Debt Service 13:55 - Is there a difference between profit and cash flow? 15:37 - Amortization cash flow, & depreciation! 18:56 - Final recap! *Be Sure to check us out on Spotify and Apple Podcasts for the Audio version of today's episode!** https://open.spotify.com/show/08KmNvqGV5HjmHUC8fLuce https://podcasts.apple.com/us/podcast/how-to-invest-in-commercial-real-estate/id1543470290?itsct=podcast_box&itscg=30200 Links mentioned in this episode: www.TheCriterionFund.com www.HowToInvestInCRE.TV Invest.HowToInvestInCRE.com To sign up for our exclusive investor list, click below. https://www.thecriterionfund.com/join-our-investor-list
L'inverno si avvicina, il caro gas impatterà sui bilanci familiari e i condomini si organizzano. Noi siamo andati a vedere tra i condomini in bolletta: c'è chi riduce l'orario di accensione dei termosifoni e chi si interroga sul futuro. Nel quartiere San Giovanni, la cooperativa Case tranvieri, 925 alloggi e una sessantina di locali commerciali disseminati tra l'Appio e la Prenestina, ha fatto un sondaggio fra i proprietari: il 75% per la prima volta ha detto sì a ridurre l'accessione a 5 ore e mezza al giorno. "Riscaldarci un po' meno ma riscaldarci tutti" è il nostro slogan. La bolletta energetica sale anche nei condomini dei quartieri un tempo a costo zero, come Torrino e Mezzocamino, dove l'Acea, società partecipata dal Comune di Roma, gestisce dagli anni Ottanta il teleriscaldamento, un progetto pensato per abbattere spese e inquinamento. "Nell'ultimo anno le bollette sono esplose", racconta il presidente del Comitato di Quartiere Torrino-Decima, Genesio Pino. A Torrino Mezzamino, aggiunge il presidente del Comitato di quartiere, Francesco Aurea "ci si ritrova a fare i conti anche con le dispersioni di calore e non possiamo neppure cambiare operatore".
Jeff Brown from Loma Homes is talking numbers and operations for STRs. From sourcing data to managing an on the ground turnover team, Jeff is taking us through his experience in real estate and giving inside information on how he looks for properties.Learn more about Loma Homes at their website: https://loma-homes.com/Jeff's email: email@example.comBlue Gems Management: https://bluegemsmgmt.co/Short Term Rental Meetup: https://bluegemsgroup.com/[00:00] Episode intro[00:23] Show intro[00:56] Welcome to Jeff Brown[01:14] Jeff's journey into real estate[02:06] How Jeff found Joshua Tree before it was on the map[03:22] Where Jeff sourced his data[05:34] Determining the annual gross revenue[06:38] Markets Jeff is excited about[09:08] Running the pro forma at a high level[09:52] What is a good comp for an STR?[11:46] What does the on the ground team look like for Lome Homes?[15:19] Breezeway for turnover management[16:17] Blue Gems Management[16:44] Is the cost of Breezeway worth it?[17:52] Target returns when looking at a new market[19:16] Selling based on NOI vs. comps in the area[22:25] Advice for STR newbies[23:38] A day in the life of Jeff Brown[24:12] One last blue gem[24:52] Where to connect with Jeff[25:11] STR meet up/outro
"Il nuovo governo si sta giustamente ponendo il problema se mantenere, ridurre o correggere il Superbonus 110%, ma prima di prendere una decisione penso sia necessario inquadrare correttamente il problema, che non è cosa fare di questo singolo incentivo ma piuttosto come affrontare la questione enorme della transizione energetica green del patrimonio immobiliare italiano". Spiega Silvia Rovere, presidente di Confindustria Assoimmobiliare, secondo la quale il Superbonus, così come immaginato non funziona: "Per risolvere il problema energetico del patrimonio immobiliare, la Germania ha costruito migliaia di edifici in classe A+ e ha demolito quelli di classe inferiore. Noi invece mettiamo una pezza incentivando il passaggio dalla classe G alla classe D di una porzione limitata del nostro patrimonio. È come se, anziché costruire auto elettriche, avessimo dato incentivi per sostituire le marmitte. E lo facciamo spendendo una quantità enorme di denaro pubblico che potrebbe essere utilizzato in modo molto più efficiente". Approfondiamo il tema proprio con Silvia Rovere, presidente di Confindustria Assoimmobiliare. Ocse: disoccupazione eurozona mai così giù,a 6,6%.Italia 7,9 Il tasso di disoccupazione della zona euro è diminuito di 0,1 punti a settembre 2022 rispetto al mese precedente, raggiungendo 6,6%, il livello più basso mai registrato dall'inizio della serie nel 1990: è quanto afferma l'Ocse, precisando che il dato è rimasto stabile o è diminuito in 80% dei Paesi di Eurolandia. I cali più cospicui della disoccupazione, precisa l'organismo internazionale con sede a Parigi, sono stati registrati in Austria, Francia, Grecia e Lituania. In Italia, la disoccupazione è rimasta stabile al 7,9%. Dato stabile a settembre anche nell'insieme della zona Ocse, al 4,9%, leggermente al sopra del punto più basso di luglio 2022 (4,8%). L'occupazione quindi tiene, sia in Europa che in Italia, ma con alcune criticità all orizzonte. Denunciate ad esempio da Fipe-Confcommercio che, durante l'Assemblea annuale, avverte che sono 30mila le imprese a rischio chiusura, con la conseguente perdita di almeno 130mila posti di lavoro, in un contesto di instabilità, insicurezza e preoccupazioni. Ne parliamo con Francesco Seghezzi, direttore fondazione ADAPT. Arriva l'Aiuti-quater Sale a 5.000 l'uso del contante e arriva un bonus per chi installa il Pos. Ma non solo: superbonus da subito a quota 90% per condomini e villette, mentre sui crediti di imposta è previsto un allungemento dei tempi di copertura oltre la fine del 2022. Sono solo alcune delle misure contenute in una bozza del Dl Aiuti-quater in arrivo questa sera alle 19 sul tavolo del Consiglio dei ministri. Il governo intende intervenire contro il caro-energia con una cifra complessiva di poco superiore ai 9 miliardi di euro. Parliamo di cosa si deciderà nel Cdm con Gianni Trovati de Il Sole 24 Ore.
Maximizing the value proposition of new tech in your asset portfolio requires hard data. In this episode of Code 53 – The Apartment Podcast, Mariana Estrada, Chief Strategy Officer at RPM Living, explains how a robust data set like NMHC Renter Preferences Survey, helps her identify opportunities and make decisions that improve resident experience and NOI across 112,000 units in 39 markets across the U.S.
Noi umani abbiamo molti soprannomi per i cani, ma come ha fatto "Fido" a diventare uno di questi? Scopri la storia di questo termine in questo episodio.See omnystudio.com/listener for privacy information.
The Investor Relations Real Estate Podcast Episode 151 - Happiness And The Passive Real Estate Investor; A Deep Dive On The Fulfillment Of Real Estate Investing Host: Jonny Cattani Guest: Prashant KumarProducer: April MunsonJonny Cattani is joined by Prashant Kumar to discuss: Assisted Living Personal / Professional developmentPrashant has a goal to acquire and hold stable, income producing multifamily apartment complexes in emerging US markets with long term capital appreciation through superior asset management.He applies his 25+ years of experience in corporate America to analyzing Income & Expenses, calculating Net Operating Income (NOI) and calculating Purchase Price based on NOI and Market Cap Rate. He also has experience in sourcing multifamily properties, analyzing deals, negotiating, contracts, and closing the deal. Prashant has equity in multiple properties via JV, GP and LP structures.He runs meetup in NY and runs online masterminds with a couple of groups. He lives in Long Island with his wife, daughter and son.Linked material referenced during the show: Book: The Heartfulness Way - Kamlesh D. Patel https://www.amazon.com/Heartfulness-Way-Heart-Based-Meditations-Transformation/dp/1684031346Connect with Prashant! Website: www.myrealtygains.comConnect with Jonny!Cattani Capital Group: https://cattanicapitalgroup.com/Invest with us: firstname.lastname@example.orgLinkedIn: https://www.linkedin.com/in/jonathan-cattani-53159b179/Jonny's Instagram: https://www.instagram.com/jonnycattani/IRR Podcast Instagram: https://www.instagram.com/theirrpodcast/TikTok:https://www.tiktok.com/@jonnycattani?lang=enYouTube: https://www.youtube.com/channel/UCljEz4pq_paQ9keABhJzt0AFacebook: https://www.facebook.com/jonathan.cattani.1
Welcome to Syndication Made Easy with Vinney Chopra! Mr. Chopra explains the importance of NOI (Net Operating Income) and how to increase the net operating income. He also explains how NOI is different from net operating cash. The total rental income should be as close to the market rent as possible. Occupancy is key, and if you are buying 97% means you need to bring up the rent to match the current market rent. There are several value plays where the current owner was not operating the property the right way. By increasing amenities like dog wash, valet trash, upgrades to units, media centers, and workout rooms are all things that you can use as an opportunity to bring the property to the current market rent. Also, reducing concessions and reducing the loss of lease is going to increase your NOI. You need to consider other expenses like taxes, insurance, marketing cost, property management, and payroll. To increase the rent, you need to justify the increase by increasing the amenities. Vinney goes into such detail on how to increase your NOI and all the considerations that you need to take into account when taking over the property. Amazon lockers How to make income and increase the rent? Make sure that each unit is uniquely placed and charge for the difference. Putting in nests USB, cameras and making it more of a SMART property. Security equals peace of mind. Special events for the residents. The accounting department must be on point, don't get ripped off. Make sure the takeover is seamless or you will lose your tenants It's all about negotiations when dealing with contractors. https://vinneysbizcard.com/ Never forget to share this podcast, leave comments, and give 5 Star reviews! Thank you so much! ------------------------------------------------ About Vinney (Smile) Chopra: Vinney is a real estate investor, syndicator, International best-selling author, host of 4 podcasts, multifamily educator, mentor, dedicated husband of over 40 years and father of 2 children-Neil and Monica, residing in Danville, California (near San Francisco) for 40+ years. Vinney came to this country with only $7 in his pocket and a dream. Vinney has now built a portfolio of over 6,500 units amounting to over $650 Million in the multifamily, senior assisted living and hospitality arenas. He is passionate about helping others achieve financial freedom and giving back to our seniors who have given us so much. Learn more about Vinney: https://vinneychopra.com/ Learn more about investing with Vinney: https://vinneychopra.com/invest/ Apply for Mentorship: https://vinneychopra.com/mentorship/ Vinney's Youtube: https://www.youtube.com/c/VinneyChopra/videos Vinney's Linkedin: https://www.linkedin.com/in/vinney-smile-chopra/ Vinney's Instagram: https://www.instagram.com/vinneychopra/ Vinney's Free Book: https://vinneychopra.com/freebook/ ------------------------------------------------
Marcus Moufarrige, CEO of ility, joins Tech Nest to discuss all things no-code, frameworks, and building tools for those who run complex real estate businesses. Marcus' experience in the office flex-space gives him a unique advantage in understanding the needs for a flexible platform that is able to be molded to meet the unique needs of each operator's needs. ility is that platform. Being that ility is a no-code platform, built in a way to meet a large array of use cases, it may be one of the most versatile middle-wares on the market. More about ility and Marcusility is a no-code platform for operators to streamline their now complex business.Connecting new and legacy digital systems, ility's middleware gives companies like RXR, Legal & General and EQ complete control over their technology, operations and offer. ility also has a strategic partnership with Microsoft.By using physical rights management, operators have a simple framework for digitising their property, to increase NOI, improve efficiency and decrease operating expenses.Marcus is effectively leading property into the world of 'composability'. He's also the ex-COO of Australian property giant, ServCorp, alongside fighting with Justin Bieber (Google it!). Connect with Marcus on LinkedIn Check out ility
Il tradimento coniugale fa parte di quel vasto bacino di situazioni umane che va a costituire il materiale per storielle, freddure e barzellette più o meno piccanti, più o meno divertenti…Noi cerchiamo così di esorcizzare un evento che solitamente porta con se' dolore e risentimento.Ridiamo a questa o a quest'altra arguzia sulla infedeltà come se la cosa non ci riguardasse, non toccasse proprio noi, ma un'indefinita altra persona.Così sorridiamo al pensiero di Menelao, che ai nostri occhi appare come il classico rancoroso marito tradito, il povero cornuto, il becco…Se poi pensiamo che egli, dopo una pressoché infinita guerra, dopo oltre dieci anni, ha ancora voglia di riportare a casa la sposa fuggitiva… molti di noi esiterebbero ben poco a dargli dello sciocco…La questione, ben lo sappiamo, con il mito (e anche con la Storia) è un po' più complessa… e le motivazioni che si muovono in Menelao fanno parte di una visione del mondo che noi, uomini e donne del terzo millennio, stentiamo ad accettare….-.-.-.-Se ti va di dare un'occhiata al libro, ecco qui un link:https://amzn.to/3Ba1dv1
Non è passato inosservato il cambiamento della denominazione di alcuni ministeri del nuovo governo. Tra questi, quello dell'Agricoltura e della sovranità alimentare ha fatto discutere; proprio sul concetto di sovranità associata al cibo si è molto polemizzato e persino ironizzato sui social da parte di chi ritiene che questo Ministero poco avrà a che fare con i sistemi alternativi di produzione e distribuzione del cibo.Noi invece vogliamo dare il nostro contributo, per amor di Patria, al neonascente ministero e fare proposte concrete per difendere e rilanciare i prodotti alimentari nostrani, che in tempo di crisi economica sono di importanza strategica. Convochiamo i nostri ascoltatori a chiamare e adirci quale di queste proposte sentono di condividere e anche quali cambiamenti sono disposti ad accettare per rilanciare i nostri prodotti alimentari tra i seguenti: 1- Limitazione di kebab, sushi e involtini primavera: ogni italiano potrà mangiare in un ristorante straniero solo dopo aver dimostrato di avere mangiato 5 volte in uno italiano (NOTA basta accumulare gli scontrini) 2- Prevedere sconti e incentivi fiscali per chi al supermercato si presenterà alla cassa con un carrello della spesa che contiene l'80 % di prodotti italiani e il 20% di prodotti stranieri 3- In tutti i ricettari e nei menù' dei ristoranti obbligo di conversione in l'italiano dei nomi dei piatti stranieri : ad esempio l'hot dog dovrà chiamarsi il "cane caldo", la Cesar Salad l'insalata "Giulio Cesare".
In this episode, we welcome Christine Bellish. She and her husband founded The Bellish Team, an experienced group of Real Estate Syndicators, Fund Managers, and Equity Partners in over $84m of real property across asset classes and states. Together, they are currently GPs of 588 units and have been involved in 922 units as LPs. Christine shares her experience transitioning from a corporate advertising career to owning and operating their own real estate investment business. She also tells us how they joined a syndication, how they started as passive investors and eventually became co-GPs, and what interesting niche they are focusing on today. [00:00 - 11:34] From Marketing and Advertising to Real Estate Christine discusses why they decided to make the jump to real estate The lesson they learned from their nightmare BRRRR deals: It's better to hire someone with prior experience Understanding syndication and becoming a GP How they started to invest passively They used their marketing and advertising expertise to bring value to their partners [11:35 - 21:32] Diversifying into Different Asset Classes Christine discusses their multifamily redevelopment project It's important to examine deal structures and make it less complicated for investors Doing dollar stores on a net lease fund The leases are corporate guaranteed It's a hedge against inflation The landlord is not responsible for the business Investors are familiar with dollar stores and it's easier for them to understand the investment During the recession, more people are shopping at dollar stores [21:33 - 24:00] Protecting Yourself Against Runaway Inflation Consider shorter initial lease terms so rent bumps come sooner Negotiate higher cap rates Buy property at less than the average so you could have an area for markup Utilize the Blend and Extend Strategy Diversify accros properties that have different lengths of leases in other markets [24:01 - 25:17] Closing Segment Reach out to Christine! Links Below Tweetable Quotes:“If I only knew, I wouldn't have done it on my own. I would have been willing to give up half of whatever the return was and be to partner with somebody who had more experience doing it than me for sure.” - Christine Bellish “When we're talking about Dollar General as your tenant and they have a corporate guaranteed lease, that's a lot easier for people that are new to syndication to wrap their head around.” - Christine Bellish ---------------------------------------------------------------------------------- Connect with Christine on The Bellish Team website and find them on Instagram. You may also email her at email@example.com. 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 → firstname.lastname@example.org Want to read the full show notes of the episode? Check it out below: [00:00:00] Christine Bellish Yes, we are diversified in that we own multiple multifamily assets in different markets. But I wanted to diversify and into a different asset class. And part of it is the fact that my husband still works full-time and has a W-2. So he's still in the advertising industry working for Disney and I am not. I'm running our real estate investing business full time. Our goal obviously is for him to be able to join us. So it's a lot easier to do that and replace the steady income that you have with a salary with another stream of steady income. [00:00:44] Sam Wilson Christine Bellish is the co-founder of The Bellish Team, a real estate investment firm that focuses on large commercial and multifamily property acquisitions. Christine, welcome to the show. [00:00:54] Christine Bellish Hey, thanks for having me. [00:00:56] Sam Wilson Absolutely. Christine. Three questions. I asked every guest who comes to the show in 90 seconds or less, can you tell me where did you start? Where are you now? And how did you get there? [00:01:05] Christine Bellish Sure. So I started in the New York City corporate advertising industry. That is where I'm where I met my husband, who is my life partner, my work partner, my business partner, he is also the co-founder of The Bellish Team, we were doing well in our corporate careers that we wanted to get off, you know, that hamster wheel and in leave the corporate rat race, and we were really looking to build more passive income. So we got started by investing in small multifamilies here in New Jersey, which anybody who's familiar with the New Jersey market knows it's not very landlord friendly, knows it's very expensive, et cetera, et cetera, got ourselves into a couple of nightmare BRRRR deals that we learned the lessons from, which basically brought us to where we are today, which is working in the syndication world. We are involved in much larger property acquisitions these days, 291 units we closed in February. We are also building a net lease fund right now. So we've totally shifted gears. I'm sure we'll jump into how we got to where we are at now. But that's the quick 123 on me. [00:02:08] Sam Wilson I love it. That's great. Tell me about these nightmare BRRRR deals and I don't want to spend too much time here because I know you've probably spent already way too much time in your thinking about, but what were the things top high level that you're like, Man, these are the things that made this a nightmare? [00:02:25] Christine Bellish Yeah, so first of all, thinking that it was a smart idea to undertake a total gut renovation as our first project. That was our first mistake. Second mistake would be not following our gut when it came to working with the contractor that we were working with. He actually came recommended from somebody that I trust the most, my dad. Yeah, so he had done a lot of work for my dad, but it was smaller projects here and there, like replacing a vanity, like, you know, kitchen countertop or something like that. And he had all of the skills that we needed. But he really was not a business-oriented individual. He didn't care about the timeline, he didn't care about the schedule. He was kind of MIA in responding to us even before we got started on the project. And I kind of just used that as an excuse. Like, that's just how contractors are, like, it's fine. As long as he as long as he's good. at, you know what I'm hiring him to do. It's fine. But I should have seen the writing on the wall, we should, you know, cut the cord way sooner. And yeah, I just would have hired somebody else way sooner. And I would not have taken on that level of project as my first project, but no experience. [00:03:33] Sam Wilson Yeah. If you did, you'd have to do it with somebody that had had that experience ahead of time. [00:03:39] Christine Bellish Exactly. I wouldn't have done it on my own, I would have partnered with experts, you know, I would have been willing to give up, you know, half of whatever the return was going to be to partner with somebody who had more experience doing it than me for sure. [00:03:40] Sam Wilson 100%. Yeah, and those are two hard lessons that we hear repeated on this show over and over, which is the first one we just covered. And then the second one is on the contractor side of things where it's like, okay, maybe they're good at, like you said, replacing vanities, but maybe they haven't done a project of this scope. Or maybe they're good doing smaller projects, but then bringing on other contractors underneath them. Maybe they've never done that before. So yeah, having that prerequisite experience inside of whatever the project is to say, Okay, this, this is a good fit. [00:04:22] Christine Bellish The needed to be a sub and not a GC. And we made that mistake because he was not very business oriented, meaning that he wanted to do all of the projects himself and he didn't want to hire anybody out. And we thought that we were hiring a crew but instead we basically hired a glorified handyman and he took nine months to do our project. And it's a 1200-square-foot house just to like put things in perspective. Okay, so, yeah, I definitely spent a lot of time and many tears. But we did listen, we still own the prom. Pretty today on the flip side of things like it did end up being a good investment on paper. But yeah, I've had it with that. It's I'm good. [00:05:04] Sam Wilson Right. So you learned some hard lessons from that experience. But it sounds like maybe that was the catalyst. [00:05:11] Christine Bellish It definitely was. [00:05:13] Sam Wilson That, you know, there are greener pastures elsewhere. [00:05:17] Christine Bellish So and it's funny, it's funny that you, you know, that you call attention to that, for sure, we went to a meet up shortly. So like, at the tail end of that project, we went to a meetup that was in Manhattan, and it was right before the pandemic shut everything down in 2020. And it was about buying multifamily properties out of state. And we thought it was going to be buying, you know, like a duplex or a quad or something like that just in a more landlord-friendly state a more affordable area where we could afford to hire a property manager and have somebody else take care of it for us. But it wasn't it was about syndication. And that's actually where we learned about syndication. And so. So when they're talking about how syndication works, where you can be a passive investor, you can put money into a deal, you're an equity partner, you get all the benefits of owning real estate, right? You still get the depreciation, you know, you can benefit from cash flow, you can benefit from appreciation, it obviously depends on the strategy that's being implemented on that deal. But to hear that I could put money in and make a pretty awesome return for not having to do any work after just coming off of this project, where I basically put my life savings on the line and bet on myself who had zero experience. And I could trust somebody who has a decade of experience and a proven track record. And you know, all of the connections and all of the experience to bring that to the finish line. I was just like blown away. And truthfully, like, I was skeptical, because I had never heard about it before. So me being the New York, New Jersey person I am, I was like, I need to do some more research on this. I don't know, I haven't heard of this before. And if this really works the way that they say it does, then why are people not doing this? [00:06:55] Sam Wilson That's fair, absolutely fair. It's so funny, you know, to hear you say that in 2020, you went to a meet up and learned about syndications. And it's just a good reminder, I think, for anybody who is, one, listening to the show, but also in the I guess the content creation space, or you know, ‘cause that's a common theme I hear from people is they're like, gosh, what do we talk about? It's like, I'm just reminded, again, from your comment there that you know, there's still a lot of education that can happen in this space. I'm thinking like, gosh, anybody in real estate knows what syndication is, right? Although they're not necessarily. So getting into it in 2020 was a great time to start investing, as a passive investor in multifamily. [00:07:33] Christine Bellish Yeah, exactly. And that is exactly how we got started. So we went to this meetup. And basically the keynote speakers are people who are our partners today on the GP side of things, but we started by LP and with them so we heard about syndication, we wanted to do research about it. So you know, we got on bigger pockets, we listened to podcasts, we read books, we went to all of their webinars, we went to other people's webinars, we, you know, interviewed previous investors who had LP with them, we spoke with our attorney, I like read all of the legal documents, I was probably the most annoying passive investor that ever existed, honestly. But again, I selfishly was, like, you know, is this works, how they say it works, I feel like this is the path for me. So like, I need to really educate myself about how it works. And, also, I have never trusted anybody else with that amount of money before, right? So if I'm going to fork over 50 grand to somebody, I want to make sure that, that they know what they're doing that they have there, you know, their I's dotted and their T's crossed. And so we spent about nine months doing research and getting to know these guys and understanding syndication in general, what kind of deals are out there, how they're structured, right? Because sometimes the way that people structure deals is really complicated. They're like waterfalls that are included and like hurdles that you need to get over and, you know, split percentages and these views and those views. And so I wanted to get comfortable with understanding how that worked. But we took the plunge basically after, after nine months, and we invested passively with these guys. And during that time, we also really wanted to pick their brains and learn from them. But we understood that these guys are super successful. They're really busy, like, they don't have time to just like, you know, treat us like a charity case. Basically, they teach us everything that they know, right? So we volunteered, working for them basically for a year for free. So we consulted on their business for free for a year. Also, while we were spending time getting to know them, we invested with them passively. Basically, we used our marketing and advertising expertise, and we evaluated their business and we help them come up with a new marketing plan. Our partners are also you know, not from the East Coast and not from New York City. So so the pace in which they do things is a little bit different than us and so We were like, there's a lot of money in New York like, and if you want to get that New York money, you need to be responsive to people like now, right? So we also helped them with our investor relations strategy, and hire an investor relations person for their team. So after we invested basically a year went by we invested with them passively, a couple of times, we consulted on their business for free, built that friendship, built that trust. And then, you know, basically, a year in I was presenting the investor relations, you know, job role and like telling, telling them, you know, what I think about it and who they should hire. And at the end of the conversation, I was just like, less than, like, we want to do what we're doing, like, would you ever consider partnering with us? Can we come in on the GP side of things? What do you think about that? And they were like, Absolutely, let's go, we're about to close on 291 units and Cleveland, come with us. So that's that. That's how it happened. [00:10:44] Sam Wilson That's awesome. I love that. And that's, that's a question somebody asked me last week, there's like, hey, you know, I want to get started in commercial real estate, what do I do? And I was like, well, one, you're gonna have to find a way to bring value to somebody else already in this space. I was like, define what your skill sets are. And you know, there's common roles inside of every general partnership team, no matter the asset class common roles. And I was like, here they are. And you're going to figure out how to differentiate yourself in and fit into one of those roles. So anyway, I won't get into all that. But I love the way you did that, which was, hey, by the way, I got an awesome background in advertising. And I can make your brand is a really killer brand, because it needs a refresh, by the way, but at the same time, it gave you an opportunity to learn from them. So it's that that give and take there. I think that's, that's really fascinating. You guys are doing multifamily value add. But now more specifically, we talked about this off air, you're going into multifamily development and called it redevelopment. Is that right? [00:11:44] Christine Bellish Yeah. Yeah. So we are working on a deal. Soon. You know how that goes. That is basically right outside of Cleveland, in an area called Rocky River, I believe it's called it's a pretty affluent area. Basically, there is an old office building that we're going to convert to multifamily. And there's a below-ground parking garage that has a ton of parking. So it's basically going to be additional income for us, because obviously, the residents will need a place to park but it's way bigger than the residents would need. So our plan right now is that we're going to also rent that out to other people if they want to store you know, their cars. They're basically [00:12:25] Sam Wilson Yeah, yeah. Covered parking like that, that's hard, hard to come by. That's really cool. One thing I wanted to circle back on, because I do want to hear more about the net lease fund. But before we get there, there was, I had a note here that you had commented on the complicated structures that you were finding inside of deals, have you guys moved to a much more simplified structure? And if so, what is that? [00:12:53] Christine Bellish Yes, 100%. So that was part of the reason why we felt comfortable investing with our partners, because it was really easy for us to understand. And when we were looking at the underwriting and the way that it was presented, it's a straight 80-20 split for most of the deals. And so that just means 80% of all of the profits are going to the passive investors 20% is going to the GP depending on the deal. You know, there's asset management, that's, there's an asset management fee that's collected off of the gross rents, which basically helps pay for administrative stuff, right? Like the investor, Portal, and QuickBooks and, you know, keeping the lights on at the office, basically, it's minimal, right, it's 2% off of the gross collected rent. So we don't charge an acquisition fee, we don't charge a disposition fee, like, we're not making money on anything unless the project is making money. And so that's something that I feel really good about. It's something that I felt really good about as an LP investing with somebody that it was that straightforward. And it works the same way when there's a capital event to write. So if there's a refinance, basically, that is counted as repayment of principal, but we repay principal before we split any proceeds at 20. [00:14:08] Sam Wilson That's really interesting that you say that because I feel that's a conversation we're having currently on a deal that we're doing. And it's like, I feel like the confused mind says no, right? And simpler, we can make this because I'm part of both as a limited partner and a general partner part of deals where we've set them up in that complicated structure where it's 7030, and then we hit a 21 IRR, then we go to 5050. And then once there's a return, it's like, Oh, my God. [00:14:34] Christine Bellish Your own accounting is harder to like, I'm also trying to keep it easier for myself because like we are the ones who are calculating the distributions that we're sending to people and I don't want to be doing all this complicated math either. For the development deals, because there's a lot more that goes into it, we usually do a 7030 split. But again, it's a straight split, but for you know, the value add multifamily, or for the turnkey net lease, we're just doing straight at 20. [00:14:56] Sam Wilson Right. No, that's cool. I love that. And we are moving into a much more simplified version, just as you are just because I think that's something, one, our investors understand because the amount of time I spend answering questions on the water, it's like, This is dumb. Why don't you make it to where it makes sense? [00:15:17] Christine Bellish Oh, right. And to your point, if that was just an easy answer, or if it was something that they could even figure out themselves, they probably would have already written the check, like, we wouldn't be having the conversation anymore. [00:15:29] Sam Wilson Right .I don't need a spreadsheet or even a calculator to figure this out. I need a back of a napkin and go, Okay, I understand that. [00:15:36] Christine Bellish Exactly. Yeah. Yeah. [00:15:36] Sam WilsonLet's talk net lease with the remaining time that we have here. You guys are doing. Three, I think you said dollar stores in a net lease fund. Why? Why the, not left turn, why the different asset class? [00:15:55] Christine Bellish Yeah, no, It's hilarious. Because all my friends and family think what are you doing right now? And I think I think the biggest misconception is that we are buying the businesses and running the businesses. So I just want to be clear about that. Like, I'm not going to be running $1 store, okay, I am buying the land and I am buying the building. And I have and the existing tenant is in place. And it happens to be $1 store. So the reason why we pivoted is that we really want to diversify. And when I say we I mean my husband and I like we personally want to diversify our own portfolio. Yes, we are diversified in that we own multiple multifamily assets in different markets. But I wanted to diversify into a different asset class. And part of it is the fact that my husband still works full-time and a W-2. So he's still in the advertising industry working for Disney and I am not I'm running our real estate investing business full time, our goal, obviously is for him to be able to join us. So it's a lot easier to do that and replace the steady income that you have with a salary with another stream of steady income, anybody who's invested in multifamily, especially when we're talking about, you know, big construction projects, and most of the stuff that we're invested in are like CNB class. So there's a heavier lift up front with that, and especially during this time right now, even still feeling the effects of COVID. And, you know, the rental assistance programs that are still in effect. And it's a little bit more challenging to get non-paying tenants out. And you know, supply chain issues and the cost of goods and services, just being astronomically more expensive than they were before, it's a lot harder to, you know, count on reliable steady income from multifamily. And that doesn't mean obviously, once the assets are stabilized, it'll, it'll be a lot more steady at that point. But until we get there, it fluctuates a lot more, right? And we're and we're paying out quarterly returns on those, and we're receiving quarterly returns on those. So with a net lease fund, we're able to offer monthly returns, because the tenants that we're targeting here are billion dollar market cap companies. And the leases that these tenants have are corporate guaranteed leases, their long-term they have built-in rent increases. So it's a hedge against inflation, at least by nature, you know, the landlord isn't really responsible for very much. So you know, if a boiler blows out, like that's not eating into my cash flow, the tenant is paying for that. So, for us, we wanted to get a stream of steady monthly cash flow. And we thought that this is a great way to do it. The other feedback that we actually received from a lot of our investors was that, you know, a lot of them hadn't heard about syndication before. So we're talking to a lot of people that are not in the real estate game, or who are interested in getting involved in real estate investing. But to ask somebody to get involved in you know, a development project or even in like a heavy lifting multifamily is a little bit, especially if they're not in control of the project, right is a little bit challenging for some people to wrap their head around. So I think when we're talking about, you know, Dollar General is your tenant, and they have a corporate guarantee lease, and they pay their rent on time every single month at like on this date, and we basically have no expenses that's a lot easier for people that are new to syndication to wrap their head around and you know, it's a risk-adjusted return obviously and so we're not looking at you know, the big appreciation play that we would be looking at for a development deal. But a lot of people are just, like, looking for another source of income especially, especially these days with the stock market in the tank. And, honestly, like, you know, my husband and I have been approached to participate in other value add multifamily deals even in the past year and the returns that we're seeing, like the projected returns that we're seeing are just nowhere near where they were. So if I can offer a similar return, and I, you know, I use the word guaranteed loosely and nothing was guaranteed that this is an investment, there's obviously risk associated with it. But I think most people would agree that something like this is a lot more guaranteed, quote, unquote, than, you know, other asset classes. So I think, you know, those are the main reasons why we've pivoted to include that in our portfolio right now. [00:20:18] Sam Wilson I love it. And yeah, there's always compelling reasons to invest in a net lease deal like this, you know, and it's not maybe for everybody, but in the right scenarios, I think, it makes a lot of sense. And especially for dollar stores. I hate to say it, but as the economy weakens, or worsens, then there's the demographics that the dollar stores serve. Yeah, they just do better. [00:20:44] Christine Bellish Yeah. I mean, we were reading stats coming out of the 2008. Recession, was one of the major players I forget whether it's Family Dollar, or Dollar General, basically, but they were the best performing stock coming out of the 2008 recession. They were up like 60% when everybody else was crushed, right. And I just read a CNN article a couple of weeks ago, that was basically saying because of inflation, people that are making over $100,000 a year are shopping at dollar stores, like everybody shopping at them. So they're crushing it. So yeah, let's jump on the bandwagon. [00:21:17] Sam Wilson For sure. And maybe it's not even if not a bandwagon, it's still great downside protection with a stabilized cash flow. So it's like, okay, this, this makes a lot of sense. Certainly, you know, for the right place in the portfolio. One question for you. And this is a question I've asked a lot of people who invest in a variety of Net Lease deals, how do you protect yourself against runaway inflation? [00:21:44] Christine Bellish Right, so it's interesting, because when we actually first launched the fund, we had a different strategy in mind than what we're actually doing right now. So initially, when we set out, we thought that we were going to be targeting assets that had at least five years on their initial lease term, which would usually mean that there's not going to be a rent bump until year. But the three deals that we're currently under contract on right now, the lease, the initial lease terms are shorter. So that means that the rent bump is coming sooner, we are also negotiating, getting them at much higher cap rates than the average. So I think it's like any other asset class and that you make money when you're buying it right, if you buy it at the right price. So I think one way that we can hedge against that is making sure that we buy it for less than the average so that when we go to sell it, we can make up, you know, some extra money on the back ends, there are also and this is something that I feel like isn't talked about enough, but there's this thing that's called basically blend and extend. And it's a strategy that a lot of people will use before the actual lease term comes up. And so what you do is you negotiate with Dollar General or whoever, a couple of years early before their lease extension is up. And maybe they had a 10% rent increase that was like written into the lease that but it wasn't gonna happen for like five years, what you can do is you can talk to them, and you can say, Hey, would you take a 5% rent increase, and like, let's extend it out throughout that term. And that's basically a forced value add play at that time, right? So you might be able to get in and out of the asset a lot quicker, because you're basically forcing, you know, in an increase in value by increasing the NOI at that time. So that could be an opportunity to do a cash-out refinance, that could be an opportunity to sell it for significantly more than you bought it in a shorter period of time than you anticipated. So I think that there's a bunch of different ways that you can actually go about it. But one, you know, those are a couple of the things that we're considering. And I think the funding model in general is also just beneficial because you're diversifying across, you know, different properties that have different lengths of leases in different markets. And you know, they're going to perform differently, and they're going to come up for renewal at different times. So that balance of you know, maybe one lease is getting an increase next year. And then maybe the next one is getting an increase, you know, in year two, and then one is getting an increase in year three. So it's a combination of those strategies. [00:24:01] Sam Wilson Absolutely. Love it. Christine, thank you for taking the time to come on the show today and share with us your experiences so far of love learning your story, and how you got involved. The amount of research that you did was absolutely astounding and spending, would you say nine months I think reading and learning and going to meetups and webinars. I think it's absolutely awesome. So congrats to you and the success you guys have had so far, certainly been a very enlightening episode. If our listeners want to get in touch with you and learn more about you what is the best way to do that? [00:24:30] Christine Bellish The best way is to follow us on Instagram. It's @thebellishteam. You can also email me, my email is christine@thebellishteam or visit us at www.thebellishteam.com [00:24:42] Sam Wilson Fantastic, and we'll make sure we put all of that information also right there in the show notes. Thank you again, Christine. Certainly appreciate it. [00:24:49] Christine Bellish Thank you.
Jamie Kingsley (NCREIF and PREA) and Constantin Sorlescu (INREV) join the AFIRE Podcast to discuss how global data standards can improve real estate investing in the future—and how doing the hard-but-necessary work of standardization can improve operations and strategy right now. https://www.afire.org/podcast/202217/ For several years, institutional real estate investors have worked together to create better standards for the industry. How we define things like NOI, ROI, and cap rates matter no matter where in the world an investment is made, and yet different companies and even different people within those companies can often define those terms differently. Getting an industry of entrepreneurs and institutions around the world to agree is not easy and progress can seem glacially slow. But there is value in the journey. Jamie Kingsley, Data Governance and Reporting Standards Director for NCREIF and PREA, and Constantin Sorlescu, Director of Professional Standards for INREV, sat down with AFIRE CEO and podcast host Gunnar Branson in September 2022 to discuss how global data standards could transform real estate for good, and for better.
Salutare, prieteni. Urmează un episod fascinant în care unul dintre cei mai mari baschetbaliști români, Alin Savu, își povestește viața și pasiunile. Alin Savu a fost selecționat de două ori în echipa Europei și a fost unul dintre stâlpii clubului Steaua întreaga viață. De asemenea o discuție despre dietele noastre, dra și câteva cărți minunate. Nu uitați să dați like&subscribe. Și să-l mai dați la alții. 00:00 O să aflați aici cum arată primul nostru episod în afara studioului 11:07 Noi ținem tot timpul dietă și am ajuns la concluzia că e o bătaie de cap. De asta o ținem cu greu, uneori. 24:01 Povestea și poveștile fascinante ale lui Alin Savu. 1:36:20 Neașteptările sunt la cel mai înalt nivel. Și un pic eclectice. 1:50:17 Boarding Pass către Manaus. 1:56:02 Spuma filelor îi cuprinde pe Ross King - Librarul din Florența, Teru Miyamoto-Vis de primăvară, Ai Weiwei - 1000 de ani de bucurii și tristeți.
Ross Hubbard is a real estate investor who has been successful in turning multifamily properties into profitable investments. In Today's episode of How To Scale Commercial Real Estate Podcast, he discusses his strategy for acquiring undervalued properties and managing them profitably. He identifies two markets that he is focused on and uses a 2% rule to filter through deals. He also uses a CRM system to keep track of his relationships and follow up with sellers. In order to be successful in this business, It is important to have relationships with professionals in the space and be able to filter through deals quickly. Highlights: [00:00 - 06:41] How to Scale Commercial Real Estate with Ross Hubbard Ross Hubbard started investing in real estate in 2010 and has since managed a portfolio of over 1500 units Ross explains that it is important to have a systematic approach when investing in real estate, using data to determine where to invest and what to look for Ross transitioned from painting to real estate as a professional and now specializes in multifamily and asset-class conversions Ross feels that buying discount properties and converting them into apartments is a viable strategy in today's market [06:42 - 13:16] How to buy a property and make it yours Since 2015, the company has been intentionally targeting multi-family value add assets Using 2% rules and target markets, he has recruited other people to help him buy these properties The process of buying these properties includes contacting the seller, reviewing the deal, and putting it in a CRM system Wholesalers are a valuable resource because they are doing a lot of hard work and bringing things to sale that are not otherwise available [13:16 - 19:49] How to turn a hotel into an apartment How a hotel asset class conversion can be an effective way to enter the space, and how they did this by operating only as a partial hotel. They were able to get conventional financing for the construction loan and then undercut the market with full occupancy. They were also able to find a target demographic of young professionals who are underserved and want something nicer than what is available in the market. The market demand for studio housing is severe, so they were able to fill up their units quickly and make a profit. [13:59 - 14:57] Closing Segment Reach out to Ross Hubbard! Links Below ---------------------------------------------------------------------------------- Tweetable Quotes: “The asset class conversions were really interesting because they allowed us to undercut the market a bit. We're renting out studio units and we weren't quite sure how that was going to go. So undercutting the market. Getting full occupancy and then starting to stress that market's potential, was what we found to be very successful and that proved the pudding for us.” - Ross Hubbard Connect with Ross Hubbard by visiting their website at www.sageinvestment.group 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 → email@example.com Want to read the full show notes of the episode? Check it out below: [00:00:44] Sam Wilson: Ross Hubbard started with his first real estate investment in 2010 to today. He's managing a portfolio of over 1500 units. Ross, welcome to the show. [00:00:52] Ross Hubbard: Thanks, Sam. Appreciate [00:00:54] Sam Wilson: having me. Absolutely. Ross, there are three questions I ask every guest who comes from the show in 90 seconds or last, you know, tell me where did you start, Where are you now, and how [00:01:01] Ross Hubbard: did you get. Sure. Yeah. I started, honestly, it wasn't even considering getting into real estate. , I owned a condo at the time, had just gotten fresh outta college, and was working for my parents, a painting contractor expecting to take that business over. that was my goal and my ambition. My wife and I had moved just downtown Kirkland, the Seattle area, and I was listening to the radio one day and, uh, ended up hearing an ad from an auction company saying, Come into the auction, you, we can represent you, give you the hard money loan. You'll buy a house, you'll rent it out, and you'll make 300 bucks passive income a month for $0 down. So I was pretty skeptical, but I went to the Thursday night meeting and, about six weeks later, we ended up buying our first little auction property in CTAC Washington. [00:01:41] Sam Wilson: Just out of pure curiosity. Was the ad actually true? Did they end up doing the hard money loan or was that just, you know, the then [00:01:47] Ross Hubbard: version of click bait? Yeah, no, it was real. so in 2010, hard money was at 12% and four points still, and there was several companies in this area that were doing it. I worked with the company that represented at auction and then provided a resource as a lender to provide the hard money loan for getting that property taken down. And even then property management on top of that. So like, kind of a one stop shop. And I, I really liked that feel. Part of the hard thing that I had to deal with was just determining what was real, what was a good deal, what was not, what was gonna end up making me money and what was gonna end up costing me money. So I took a, took a lot of time to develop my own tool to understand, you know, conservatively where I was gonna go based upon actual data the market was experiencing rather than lofty for goals that may or may not be. [00:02:34] Sam Wilson: Right. Right. And if only you could rewind, I bet you would tell yourself today to buy everything that you looked at and quit [00:02:40] Ross Hubbard: underwriting it. Yeah, certainly. Yeah, no, that's absolutely the case. And , how could I have known, I did try to do more than what I could afford to do at the time, but, you know, at the time there is really difficult to, to get access to. To unique credit. You know, there was hard money that was asset based, but other than that, conventional lending standards very tight. So you had to do everything the right way after the 2008 financial crisis, which has been a blessing for, you know, what we're going through today in terms of the real estate market and how healthy it is right now. [00:03:07] Sam Wilson: Right? No, absolutely. Absolutely. In those are the defining characters between a speculator and an investor. I mean, none of us would've known, you know, in 2010, or in my case, when I got in 20. Team just to hit the buy button on everything and forget about worrying about what it's gonna be. You know, what I think it's gonna be worth. But again, that's just pure speculation. So it is always fun though to go back and kind of look at that and go, Wow, I passed on that for that [00:03:32] Ross Hubbard: Certainly, [00:03:32] Sam Wilson: yeah, we're giving it away, but that's, you know, that's, that's, that's the nature of the beast. When did you make the transition to multifamily and or commercial [00:03:41] Ross Hubbard: real estate? My first multifamily deal was in 2015 and I had shifted out of painting in 2014. I fall a ladder from 18 feet and decided that that wasn't gonna be for me anymore, which forced me to have that inflection point where I changed careers and just jumped into real estate as a professional. So I started to help other people do what I was doing for myself, which is. Buying investment property and, and doing so in a very methodical and systematic way. So, I gained a pretty decent following of people that wanted to continue to work with me and, became a real estate broker. Got into the business of brokering, continuing to buy for myself. That again, stressed me because I was a two-year dead to the banks, 10 99, no w2. So I had to figure out, wow, how I could invest. So I went across and looked at old deals, and tried to engage people that had owned a long-time property so I could have them seller finance, so in 2015 and got into my first apartment deal. 19 units and was able to get into it for only 10% down. And, had a relationship with the seller that developed from me meeting him and kind of hit it off and told him what I wanted to do and he seemed to trust me and believe in me. And a year and a half later, I refinanced out of that debt. at that point I had a cut a little over two years of, 10 99 income that justified my existence, so was able to get commercial debt on that property and refinance out my 10%, paid him off completely, had my cash back and. Amazed cuz that was my entire, strategy in single family. It's like, how fast can I create value here, then I can recycle that value into another investment. So we did that on the scale of multifamily and , continued to look for more opportunities to do so. So that's , where I found my niche. Got it. And so [00:05:21] Sam Wilson: you just kept acquiring, recycling that value. Is that a strategy that you feel like is viable in today's lending? Environ. [00:05:29] Ross Hubbard: Only if you buy, right? So it really depends entirely upon what type of inventory you're shopping for. If you're an average Joe and you're looking on. Mls or you're looking on commercial websites to find your real estate and probably not and hasn't been able to work for, I don't know, eight years. But if you're looking direct at seller, wholesaler, and broker relationships that are off-market in nature, which is what I spent. 2015 to present developing, then you're able to buy a discount because we're looking at properties that have severely underweight NOI. The rents aren't high enough. Operational efficiency is really bad. There's deferred maintenance. So now I can go and approach that seller. Understanding that the market value of that property is much less than it could be, and looking for the value add opportunity. we also stepped into asset class conversions, which are really unique. So we're able to take something like a hotel and convert it into an apartment, which entirely changes the financial, Perception of the asset, cuz the apartment building is much more secure. That's a very good way to create a value add equity play, allow yourself to get into a position where you can continue that strategy of burning out of something refinancing after . Renovating, and continue to repeat that cycle. But , of course, along the way we've injected new capital, very excited about what we're doing and, constantly looking to continue to increase our passive in. Ability to earn, so that eventually the active can become substantially. [00:06:55] Sam Wilson: So there's so much to unpack in everything you just said. Buying it a discount, I would or not make the assumption, but certainly hear more often than not that anything that's worth buying is probably already been a. Either forced, appreciated the value add has already been done. How are you finding assets that even today are still poorly managed, not picked over, not already had somebody else come in and done exactly what you want to do. [00:07:25] Ross Hubbard: Well, it takes a long time building the relationships, out. So since, since 2015 when we really started intentionally going after multi-family value add assets, I picked a few criteria, some 2% rules, and target markets to dive deep into. Then I started to recruit other people. So using my ability to show, you know, Here's what I made in real estate last year on 10 99. Why don't you come and do this for me? This is what we're looking for. You eat well, you kill, so you bring it to me, I'm gonna buy it. And then if it looks good, at least of course. And, we're just gonna turn over as much inventory as we can. There is a lot of real estate in the United States of America, in our target markets. There are seven states in total that we're going after. And, we're. Really hitting at heart. So that allows us to turn up, you know, from title lists, direct to seller, wholesaler, broker connections, a lot of options to look at and a lot of people use a rule of thumb for one property, get our contract on and close on. Probably looked at 200 deals. That's very accurate. It's just you're sifting through a lot of garbage. A lot of people don't have the right sales price expectations, their value is not substantiated by their NOI against the market cap rate, and, are looking to sell it for a higher price and what it's worth, but we're just not that buyer. So the combination of the diligent looking. And then patients and understanding that we know what our numbers are gonna dictate in terms of the sales value of that property. So I'm gonna present that and then I'm gonna wait. What often happens is that the seller will engage other buyers. Just give 'em what they want upfront, then try to retrade, and there I am, just Mr. Consistent, holding the same bag of money offered in the beginning. when the seller comes back, it says it didn't work out, the transaction failed. You know, are you still interested? [00:09:02] Sam Wilson: What's it been like? I mean, that's, that's entire. Process and business in and of itself, of having the deal sent to you or however it is that you set up those relationships, whether that's with a wholesaler, whether that's with a broker, or whether it's, your own direct-to-seller, leads that you've generated to bringing that across your desk, reviewing the deal, and then putting it in some sort of follow up CRM system where you say, Oh wait, you know, you offered on this and then, you know, circling back in 30 days. I mean, that's a lot to keep up with. Tell me about yeah, that system and, and what are some keys, I guess, that you've found to really making that thing work? [00:09:39] Ross Hubbard: You know, we've used several CRM systems over the years, but I think the key has always been in the individual. So some of the best people that are procuring property out there, I call 'em acquisition specialists. They're looking for exactly what I wanna buy, and they're only bringing me what meets my criteria. So they have systems that are built in for themselves. So what I've leveraged on. Is not, a specific system that I created that I've implemented and allowed everybody else to use. I've leveraged other people's, so they have their own unique way of interacting, keeping track of their people, and trying to engage sellers to sell. And once it rises to the top, I'm looking at it to make that ultimate decision about whether to acquire or take the next step. But in the middle. They're taking all that workload on just to get to the end where they can close on something with me and get paid. But the organization and the system of it is, you know, widely up to them for the start, you know, I really did focus on trying to create my own wheel, but I, I realized it just wasn't fast enough and I, I could do a lot more. Other people had already done the same thing, not recreating what they have already created and being able to build and expand upon that, just simply offering them a resource that they knew would buy as long as the criteria were met. [00:10:50] Sam Wilson: Right. And, so understand obviously working directly to the seller like that, that's a method that we've certainly employed. I understand working with brokers, working with wholesalers inside of the multi-family space has got to have some nuance to it. Am I Yeah, right in saying that, [00:11:07] Ross Hubbard: It's got a lot of nuances and it's hard to understand who actually has the right to purchase the property. It can get Daisy changed three or four times and have hundreds of thousands of dollars of, commission paid to the wholesaler assignment fee paid to the wholesaler as part of the deal that makes the deal possible. So , it certainly, you know, does depend, uh, it doesn't always work out, but, uh, they're a valuable resource because they are doing a lot of hard work out there and, ultimately bringing things to, to sale that are not otherwise a. How do you [00:11:35] Sam Wilson: know when you're dealing with a professional in the wholesaling space or just another hack? Because there's plenty of hacks that are just, and again, it got to the point, in the single-family space, back when I used to do single-family or it was just like, just don't send me anything else. Cuz if it's just so much of it's garbage, [00:11:53] Ross Hubbard: how do you through that? Quick filters that I teach all my guys and gals. It's the rules of thumb, you know, simple things you need to pay attention to. most folks have heard about them, the 1% rule for every hundred thousand dollars that you purchase a unit for. You have to have a thousand dollars in groceries in a month in order to meet that rule. So that's a simple standard. , then, you know, plugging into underwriting and then going a little bit deeper into the analysis after hitting a few of those rules will allow us to see if the math is making sense. And if it does, then we're gonna pursue it. Once we start to work with the wholesaler and engage them, we're always making a property visit, which is the fun part because the wholesaler is not gonna spend the money to get there. So we're gonna meet directly with the seller, and that's when we start unpacking a lot of things that we didn't know about because that wasn't disclosed to us from the wholesaler either from them not knowing, or them not wanting to say, which includes assignment fees and what the seller's getting out of the deal and things of that nature. That gives a lot of leverage. I don't want to shortcuts. Everybody gets paid, and the more that you bring me in, the more that, is valuable, and the more that I pay you. but ultimately, you know, it's all gonna make sense for the deal. The seller has to be on board, the wholesaler has to be on board. Everybody gets a fair shake that way. Got it. No, [00:13:05] Sam Wilson: that's really cool. Thanks for unpacking that for us. Tell me about asset glass conversions. you know, lots of questions on that front, but maybe if you can just tell me about a deal that you guys did, and. How you found it? You know, what were the keys to making it an effective, you know, the business plan, you know, getting the business plan actually, you know, working out and make it an effective investment. And then, love to hear financing on that as [00:13:26] Ross Hubbard: well. Yeah, sure. so, one of the first hotel asset class conversions that we did was operating only as a partial hotel. So it was a kind of, light step into the space. So half of it was already operating as an apartment, and the other half was nightly, weekly. So we simply changed that. when we bought it, we got conventional financing, and construction loan financing. Bear in mind, this was 2019. So fairly attainable and we were able to get it. Property fully kitchen out. So we put in full-size kitchens, renovate the bathroom, renovate the units, and renovate the entire community to make it really appealing. We love young professionals as a general demographic to target in almost any market that we're buying in. Because they're underserved. they're often provided that is not nice enough. You know, they're, they're not able to afford the A-class young working-class professionals, but they. Stand living in a C class that, you know, looks like a turd either, so they really want something in the middle. So how do you find that and, and still make a margin on it? So the asset class conversions were really interesting cuz they allowed us to undercut the market a bit. You know, we're renting out studio units and we weren't quite sure how that was going to go. So undercutting the market. Getting full occupancy and then starting to stress the market's potential, was what we found to be very successful. And that proved the pudding for us. You know, we were able to understand that there is a severe demand for studio housing and there is a very limited supply of it They didn't use to build studios. Because it was relatively inexpensive to build. Now that it's very expensive to build, they're building micro apartments. But one thing about those micro apartments is that they're downtown core. You're usually sharing a bathroom, you're usually sharing a kitchen. And it's still very expensive because they're a class and they're amenitized and they're in a downtown corridor. So, yeah, it's been cool to find something that, is very much in demand and then continue to press that. [00:15:12] Sam Wilson: That's an interesting point where you said it's, and what I hear is that it's not an A-class property and it's not amenitized, so , the tenant isn't ending up paying for features may be that they either A, can afford or B don't want. Is that right? [00:15:25] Ross Hubbard: Yeah, we bring 'em up to solid b plus, but it's hard to take a 1954 building and make it a class building. It's gonna be always reminiscent of that era of architecture and construction. That was what that property happened to be. But is well monetized. You know, we have a yoga studio, we have a workout room, we have a cool house, we have a pool, we have, a pool hall, we have a lounge. And so there's a lot of things that offer still, it's just not as fancy. [00:15:50] Sam Wilson: And you said that you're able to undercut the market, you're just able to bring rents down? I mean, it's, it's uh, basically your own version of affordable housing. [00:15:59] Ross Hubbard: Yeah. Yeah, it very much is. And that's, that's a huge benefit, uh, for the market that we're entering, but also for us, because we can expect high occupancy, right? So within a six-month timeline of getting to the point where we're renovated and ready to lease, we were 99.6% on 175 units. So only having that model unit open still, and I was shocked. Uh, and then the following year, you know, we increased strengths. Relative to what the market was showing us, which happened to be a 22 per 22% increase. So we went ahead and did that, and we lost about 12% and then we filled it up again within two months. So the, market demand is such that it just supported that and allowed us to continue to do it at a really reasonable pace, while still providing the market something that was desired because of the limited square footage. It's still relatively affordable. It's independent living. It's your own place, it's your own kitchen, your own bathroom, and you're paying less than a thousand bucks a month for it. How do you do that these days? [00:16:55] Sam Wilson: Yeah, yeah. You really, you really don't, you really don't. What are the considerations, you know, from exterior access? Are they interior access? You know, hallways? Is there, is there a certain type that works in a certain type, but does not? [00:17:09] Ross Hubbard: Yeah, sure. There's some debate on that. I mean, I think it's just an opinion issue really. For me. I spent a little bit, enough time, I guess in residential that, uh, I, I grew to not like the interior corridor. primarily with condominiums. So I look for exterior only. just a couple of simple reasons. I don't generally wanna smell what other people are cooking. And then the second is, We don't have exterior access. You know, if these hotels are traditional hotels, which they often are in the 1980s, or 1990s builds, they don't have balconies. They don't have decks. So you're gonna need to provide better access to the outside for people, and it'll keep your building cleaner. You know, if you've got a place that's a designated smoking area, they can leave and go do that without too much pain because it's an exterior cord entry. So that's why I focus on it. [00:17:52] Sam Wilson: Got it. Got it. And, why are these hotels coming up for sale? Why aren't they making it a hotel? well, [00:17:59] Ross Hubbard: hotels are difficult to sell. I think, generally speaking, hotel years are a unique breed of folks that have, definitely spent the time, building out their hotels and managing them and operating them, but not, it's not for everybody. For a hotel, you're gonna be running between 60 and 70% expense ratio. You're gonna have 24 hours, seven days a week staff. And you're gonna have all the fun that comes with 24-hour, seven-days-a-week staff, you know, people get sick, have families, et cetera. So it's a lot to manage. because of that, it just demands a lesser price per unit, a lesser price on GM, and cap rate. And as a hotel that's not converted yet, we can still buy it as a hotel. So coming out of 2020, it's been really interesting cuz they had a significant uptick in, in hotel rentals. for a while, the revenue was very high. Crashed, you know, the free money stopped being printed. There were things that were not going well any longer in local economies that were not aligned them to support, you know, people paying for these units on a nightly basis. , so they started to decline in total revenue, which makes their value go down. So there I answer the picture and solve a problem really for the seller, which is that their revenues are down, they want out the business, and they wanna liquidate for as much as they can. Now, a typical hotelier is probably gonna look at that property and go, Oh, I'm gonna pay like three or four gr. This is a bad property, but I am still in that four to five GM because I know I'm gonna take it to double that total value. It's whatever I'm buying it for. with a modest amount of renovation, we're gonna turn it into an apartment building that it's gonna sell at a 10 to 12 m [00:19:27] Sam Wilson: right now. That's really, really cool. Thank you for taking the time to explain that. When it comes to the construction side of things, I mean adding kitchens into a typical hotel room. Size. I mean, that's gotta be, I won a micro kitchen, I would imagine. Pretty compact. But then are there complications on the construction side when doing that? [00:19:48] Ross Hubbard: Yes. I think this is the most difficult part. It's probably the biggest area of pitfall. for a few reasons. Labor's impossible to find now. It was very expensive, right? Materials are very expensive, although they have been going in the right direction over the past few months. So it's an area where you can really misstep and it costs you a lot of money, especially if you don't know what you're doing. . Thankfully, with the experience that we have in general contracting and the resources that I have in general, contracting still, you know, most of the people that I employ are invested with me, and so, they're already fully knees-deep into the whole thing. Their interests are aligned, and they're making these projects the most efficient they can be. They know that the profit and overhead that they're covering right now are only a part of the pie. Their equity position is what they're really interested in. So they're looking for, a better opportunity to expand their potential, and therefore I get really good values on my, renovations. We also stay ahead of supply chain issues. We do a lot of warehousing, we do a lot of costs, and storage boxes so we can get materials on site. We don't need delays like that. We don't need costs going up just because time is passing. when we know that our project is going to require 200 units. Overhaul. Let's, let's go ahead and get those 200 units worth of stuff, put it on site securely so that we can depend upon it and not have the prices change on us. [00:21:02] Sam Wilson: Right. that's really, really interesting. I love that. And, is that one of your strategies moving forward, or is that your main strategy now? [00:21:11] Ross Hubbard: Now we have three verticals, so we're focused on value add repositions, but as you highlighted, it's very difficult to find those. then, of course, asset class conversions are a big opportunity for us. We're continuing to pound those hard and looking forward to more. But then storage units, another area that's difficult, to enter and difficult to find deals that are acquirable, where we're getting to that space in more tertiary markets right now that are gonna be very good cash flows. But, we're designed in a unique way where we're designed to balance where we have cash flow as a part of the emphasis because we're paying out a quarterly dividend to our investors, and then of course appreciation. Now how do we get your dollar to pop as much as possible over a fixed period of investment time? So we're targeting a really aggressive, equity multiplier as a result. A fairly innovative way to value add and then reuse the capital. So we're doing the ber model essentially at scale, uh, with the pool of investors that are primarily friends and family. But we do have, uh, several outsides as well. And, we've been doing that since 2016. I started intentionally organizing partnerships. But since then, we merged into the group Sage Investment Group, which is the company that we co-founded and manages about 23 apartment total, different properties right now across 1400 units, seven states. That's fantastic. [00:22:29] Sam Wilson: Ross, thank you for taking the time to come on the show today. I certainly appreciate it. If our listeners wanna get in touch with you or learn more about you, what is the best way to do it? [00:22:38] Ross Hubbard: Certainly, So Sage investment. group is our website, Sage investment. group and you can check it out there. Contact goes directly to my wife, Emily Hubbard. Definitely a family business. We are 13 strong, so we've got, an office here in Kirkland and over in Richland and the state of Washington. Uh, but we'd be happy to talk to you, understand what your real estate investing goals may be, and, help you learn more about how you can achieve them. Fantastic. [00:23:04] Sam Wilson: Ross, thanks so much. Appreciate it. Have a great rest of your day. Thank you, Sam.
Last week, the Louisiana Wildlife & Fisheries Commission released a Notice of Intent to increase the minimum size limit on sea trout from a 12” minimum to a 13.5” minimum, as well as reduce the bag limit from 25 to 15 fish per person.In the latest #TheGuidePost podcast episode, Capt. Bailey Short swings by the shop to discuss changes on the horizon for Louisiana outdoorsmen and how they may improve angling opportunities going forward.ASGA considers this NOI a step in the right direction towards managing for abundance. We are encouraged to see the Commission considering changes for a better angling future. We will continue to monitor stock updates and the upcoming stock assessment results for redfish.This podcast is presented by Costa Sunglasses.Follow ASGA on Social to stay up to date on current events!Instagram = @SaltwaterGuidesAssociationFacebook = American Saltwater Guides Association
Questa piccola storia, la terza della serie, è dedicata all'Aiutante di Battaglia dei Carabinieri Reali Giuseppe Enrico Tempini classe 1889 da Erbusco, piccolo centro della bassa bresciana. Giuseppe Tempini si arruolò anticipatamente rispetto la leva militare e scelse di entrare nei Carabinieri. Non era molto alto (1.66 mt), di professione muratore, sapeva leggere e scrivere, doti che offrivano opportunità insperate per un giovane destinato inizialmente a una vita piena di fatica e di privazioni. Diventato Carabiniere dopo il corso presso la legione Allievi Carabinieri Reali di Roma, fu destinato alla legione di Milano. Prese parte (non sappiamo se volontariamente o meno) alla guerra Italo-turca e quando sembrava che la rafferma stesse per terminare, Tempini fu fagocitato dall'esperienza della Guerra Mondiale tanto da scegliere successivamente di entrare nei "corpi speciali" di allora, il XXIX reparto d'assalto "fiamme verdi"; non era facile per un Carabiniere essere accettato da quei "fegatacci" dei reparti speciali e per questo si doveva dimostrare di essere ancora più tosti. Inizialmente divenuto vicebrigadiere dopo un anno ottenne il grado di brigadiere e poi fu promosso Aiutante di Battaglia per meriti di guerra. Cosa fece? Ascoltate l'episodio! Anche dopo la guerra si dovette distinguere in situazioni difficili di ordine pubblico ma poi ritornò a fare il Carabiniere della "Territoriale" di quelli che pattugliavano i piccoli centri ed erano in grado di scoprire rapidamente gli autori dei crimini più importanti, cosa che fece in più occasioni, il più famoso dei quali passò alla storia come il giallo di Vedano. Teoricamente congedato prima dello scoppio di un nuovo conflitto, la seconda Guerra Mondiale, fu richiamato in servizio e, all'8 settembre 1943, rimase in uniforme per garantire quella sicurezza pubblica sempre più precaria che fascisti e tedeschi volevano violare continuamente. Fu ucciso il 3 maggio 1945, da comandante di Stazione Carabinieri Reali di Lissone (all'epoca in provincia di Milano), dopo che il CLN locale lo aveva autorizzato a ricostituire il piccolo comando dell'Arma in attesa di una situazione più stabile. Un delinquente si volle vendicare, mascherando la sua come una azione di un partigiano, per la denuncia che aveva subìto quando Tempini lo scoprì coinvolto nella macellazione clandestina di animali. La giustizia fece il suo corso e, dopo essere stato rimpatriato dalla Francia ove era fuggito, l'omicida fu condannato a una pena esemplare. Noi di Storia dei Carabinieri siamo convinti che sia importante raccontare vicende come queste, allo scopo di far conoscere il ruolo, spesso silenzioso, che i Carabinieri ebbero nel corso della nostra storia nazionale. Si ringrazia Matteo Paderni, ideatore del profilo Instagram regio_esercito per aver supportato questa iniziativa e aver voluto registrare parte dell'episodio. Storia dei Carabinieri suggerisce a tutti gli ascoltatori di seguire su Instagram il profilo regio_esercito che posta regolarmente immagini fotografiche delle Forze Armate italiane durante il regno d'Italia. --- Send in a voice message: https://anchor.fm/storiadeicarabinieri/message
Noi l'abbiamo sempre sostenuto: non svegliare il ''Cordon Bleu'' che dorme.Se però non ti svegli e rispondi in modo corretto i 250.-- (duecentocinquanta) franchi restano a Melide.Ruben Bassi in diretta dal Ristobar l'Ulivo di Camorino ci porta a lezione di Crossfit tra un cambio di gomme e l'altro.
Noi, aka @Sapienne on TikTok, discusses her personal experience with learning she was intersex. Noi also goes deeper and talks about the medical, social and personal aspects an intersex individual faces. Resources:InterConnect (support group and educational information): http://www.interconnect.support interACT: Advocates for Intersex Youth: http://www.interactadvocates.org Support this Podcast to keep it going!Patreon - https://www.Patreon.com/LesbianSpeaking just $1.00 a month enters you in the monthly drawing!PayPal and Venmo - @lesbianspeakingTuck-Ins - tuck-ins.com/leheyeziks Discount code LEHEYEZIKS for 20% off!Pump Pals - https://top grip gear.com/?rfsn=6172592.f349c6Saint Nora - www.saintnoraco.comEmail - firstname.lastname@example.orgWww.lesbianspeaking.comSupport the show
Ha avuto inizio il 10 ottobre la Mental Health Week, la settimana dedicata al benessere psicologico. Noi abbiamo chiesto ai nostri ascoltatori cosa li aiuta a prendersi cura del proprio benessere mentale.
Summary: In the sixth episode of Season 10 of the Propcast, host Louisa Dickins is joined by Zachary Denning and Jerremy Spillman, co-founders of Hank. JLL's recently acquired AI-powered virtual engineering platform for buildings. Zach and Jerremy share how Hank is helping the commercial real estate world reduce emissions and assist clients in their transition to net zero. The guests discuss the geographical differences surrounding the adoption and consensus of technology that they have noticed since Hank successfully expanded to Europe. In this episode you'll hear about the ever changing appetite for efficiency within commercial real estate, how technology can help real estate meet its sustainability goals and what the future holds for Hank. Resources: LMRE Global Recruitment and Search Consultancy LMRE YouTube Interviews Shout Outs: Rob Baker, Head of Product, Hank Key Insights From This Episode: You could put a Ferrari engine into a building, but if you don't know how to drive it you're not going to get anything out of it - Jerremy If you're not able to satisfy both the ownership and the investor level as well as the property level, you're never going to have a successful product - Jerremy We're driving a culture of execution, everybody on the team is on the same mission to drive revenue, if we're not driving revenue then we're stagnant - Zachary I figured out that smart buildings aren't so smart, machine learning is the future of this industry - Zachary Why not be inside the largest, most progressive property management ownership firm in the world? There's no more strategic partnership than that - Zachary About Our Guests: Zachary Denning: Zachary Denning earned his degree in mechanical engineering and has always had a strong aptitude for software development. In his +10 years in the smart buildings industry, he was able to identify and solve core building engineering challenges using applied machine-learning and AI – Eventually leading to the development of a new market, virtual engineering. Zach has grown the Hank virtual engineering team to over 50 members under JLL and together they're pushing the boundaries of machine-learning in building operations to maximise client value. Jerremy Spillman: Over the last 12 years Jerremy has worked in the clean tech space ranging from utility DSM program management to battery powered electric vehicle charging stations. Most recently Jerremy co-founded Hank, an A.I. powered HVAC management tool for commercial office buildings. Hank was recently acquired by JLL Technologies as a key tool to meet their aggressive sustainability goals. About Hank: Recently acquired by JLL, Hank is a virtual engineering platform powered by artificial intelligence (AI) that autonomously optimises the management systems of commercial buildings to deliver increased comfort, air quality and energy savings. Hank's system applies machine learning and AI to solve many of the commercial real estate (CRE) industry's largest operational challenges, including HVAC programming inconsistencies and energy and equipment performance inefficiencies. Its cloud-based platform optimises energy efficiency, air quality, maintenance costs and tenant comfort - ultimately delivering increased net operating income (NOI) to real estate investors. About Our Host Louisa Dickins Louisa is the co-founder of LMRE, which has rapidly become the market leading global PropTech recruitment platform and search consultancy with operations across North America, United Kingdom, Europe and Asia-Pacific. To promote the industry she is so passionate about, Louisa set up the Global podcast ‘The Propcast' where she hosts and invites guests from the built environment space to join her in conversation about innovation. About LMRE LMRE is globally recognised for leading the way in Real Estate Tech & Innovation talent management. From the outset our vision was to become a global provider of the very best strategic talent to the most innovative organisations in PropTech, ConTech, Smart Buildings, ESG, Sustainability and Strategic Consulting. At LMRE we are fully committed at all times to exceed the expectations of our candidates and clients by providing the very best advice and by unlocking exclusive opportunities across our global network in the UK, Europe, North America and Asia-Pacific. Timestamps: [2:04] Zach: Can you tell us about your career journey to founding Hank and also how you know Jerremy? I started out as a mechanical engineer in the smart building industry. I learnt that the owners of buildings rarely know which control systems are in their buildings despite these softwares generating savings. I taught myself machine learning and realised that it has the ability to solve these problems in a long term capacity. I won a grant and spent time developing a software that proved that machine learning could drive substantial savings in buildings and we can generate huge economics for clients. I went out fundraising through several channels and that's when I met Jerremy and pulled him in as co-founder and CRO, and this carried us to JLL. [4:15] Zach: How long did it take you to develop the software? The first year I spent developing a solid foundation for the software so I had a product that I could test the market with. I received a grant in year 2 and by testing the market, proved that it had improved the comfort within buildings dramatically. By the end of year 3, we had viable proof of the product and concept and therefore the ability to go out and fundraise. [6:02] Jerremy: What has it been like since your introduction to Zach? I started my career in sales so since meeting Zach it has been really exciting understanding the new market that there is for technology and quickly picking up the nuances in the industry. This completely new way of managing the largest energy consumer and cost driver in a building has made me really passionate about what we're doing with Hank. [7:47] Zach: Can you explain a little bit about what Hank is? The Hank product itself is a true machine learning virtual engineer, we don't do any physical work in buildings or have an onsite team. Hank enables engineers in buildings to do their job more effectively and not have to worry about changing setpoints, tuning systems in or working with a variety of different stakeholders to solve their problems. We work alongside existing smart building systems that are already in place, we drive a saving on energy of at least 15% and sometimes as much as 50%. [11:50] Jerremy: How does Hank help investors meet their sustainability goals? Hank is a Software-as-a-Service, so there is no replacing of controllers, we just drive what is already in place to its highest efficiency and that allows them to build their sustainability plan for the future. If you're not able to satisfy both the ownership and the investor level as well as the property level, you're never going to have a successful product. We have utilised the data and found that we can fix comfort without sacrificing energy and we can save energy without sacrificing comfort. [16:06] Jerremy: How did your acquisition by JLL Technologies come about and what does it mean for your business? We align well with JLL because our number one priority for meeting sustainability is carbon reduction which JLL succeeds in with all of their vendors. Adding JLL's property management team to our virtual team adds an additional level of expertise and differentiates us from other management services. Zachary: For us to be primed to grow, the most strategic partnership we can use is to be inside the largest and most progressive property management firm in the world. [22:05] Zachary: What core values do you have in your business? We're driving a culture of execution, everybody on the team is on the same mission to drive revenue, if we're not driving revenue then we're stagnant. We have a very transparent approach, we have a mentality that we're building this together and all have an equal voice. When we bring people on board they can individually see the impact they're making and that drives them towards our common goal of producing revenue and growing as a business. [24:49] Jerremy: Now you have expanded to EMEA, what are the differences you have seen between the US and Europe? Europe is far more advanced and focused on emission reduction which has helped us fit in straight away. They have helped us learn what property teams and investors are doing to push sustainability efforts and what the US needs to do to progress. Buildings in Europe already have the infrastructure in place with other smart technologies that we can integrate into, to feed our machine learning models and produce more data. The market in EMEA is ready for a solution like Hank, whereas in North America we're having to get the market ready. [28:02] Zachary: What is next for Hank? We're in the midst of a complete redesign of a new user interface, we want to give our customers a new evolution of what building automation can be without an additional cost. We want to push forward on evolving this product whilst proving everything to our customers comes under one subscription with no additional fees, we want them to know that this is just an inherent part of our service that we will continue to improve. L – Touch on the main lessons you have learnt throughout your career. Jerremy: As long as you have got hard work and dedication you are always going to push things forward. M - Please give a mention to anyone / product / service. Zachary: Rob Baker, he was an internal JLL employee that gravitated towards our team, he was a project manager and now he is involved in everything, he has been phenomenal to work with. R – What has been the most rewarding aspect of working in PropTech? Zachary: Watching this product come to fruition and having Jerremy's team and our operations team execute it successfully. E - What are you excited about in the future of Proptech? Jerremy: I'm excited for Proptech and sustainability to become the norm in the real estate industry. Sponsors Launch Your Own Podcast A Podcast Company is the leading podcast production and strategic content company for brands, organisations, institutions, individuals, and entrepreneurs. Our team sets you up with the right strategy, equipment, training, guidance and content to ensure you sound amazing while speaking to your niche audience and networking with your perfect clients. Get in touch email@example.com
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