J Darrin Gross

I'd like to ask you, Spencer Hill, what is the biggest risk? 

Spencer Hilligoss  

Oh, my goodness. I love that question. And I say my goodness, because it is such a intelligent question. And I wish that someone could really couldn't go back in time yet again, and tell myself that every decision in life is a risk decision. Without exaggeration, and you and you already know this far, far better than I do because of your experiences, which is amazing. And I respect so much Darren, walk out the front door, you're making a risky decision, you know, drive your car and make an arrest decision. What is the biggest risk? I think the biggest risk as ethereal as this sounds. And I'm happy to drill down and make it less ethereal and make it more pragmatic or useful for people if they'd like, but this is genuinely what I believe. I think that the biggest risk posed to most people in life right now is a lack of curiosity. And what I mean by that is a lack of curiosity about their sources, like we're talking financially, of course, I would say they're not curious about how they make money and have what what is their money do like what they work for it. They know that they know what their income is, they know that they aren't really curious about well, do I need to does this have to be the way that I do this? What I'm curious, can I am I a human as a professional, capable of doing a different thing? Can I go do a side hustle? If I don't have any money? Could I be capable of generating a capital engine, fancy way of saying simply a way to build more investable capital outside my day job, which is more which is where most wealth is built. It's not in people's salaries. People don't build their net worth. In their day job. They build their net worth, by going out and building a business by going out and investing by going out and doing something on nights and weekends by It runs the gamut. And there's so many wonderful ways to go do that, that are free to start with and educate on now, like college courses. Sure. I'm talking pragmatic stuff. And so I encourage people to find a curiosity and that includes, I thought taxes were boring. I don't think they're always fun, but I certainly think they're pretty fun now compared to many years ago, and most people would hear that statement and think I'm absolutely crazy. And that's fine. But get sure is about your money and get curious about what you're capable of, if you are not happy with your circumstances, or if you don't have a plan B, C, D, E, F, to insulate yourself against the other many risks in the world. And so maybe I don't know if that's necessarily barking up the completely wrong tree in the wrong forest altogether. Darrin, but that's, that's what I chalk up if I had to give a single answer to what's the biggest risk is a lack of curiosity and people just sitting there to do the same thing over and over working hard, truly, is not working smart.

Today, my guest is Jacob Vanderslice. Jacob is a principal at Van West Partners, a Denver based real estate investment firm, focusing on acquisition and management of self storage centers and other opportunistic real estate. Throughout the United States, Van West has established a track track record with over 195 million in real estate assets. And in just a minute, we're gonna speak with Jacob, about self storage, investing in self storage during an economy of change. But first, a quick reminder, if you like our show, CRE PN Radio, there are a couple of things you can do to help us out. You can like, share, and subscribe. And as always, we encourage you to leave a comment. We'd love to hear from our listeners. Also, if you want to see how handsome Our guests are, be sure to check out our YouTube channel. You can find us on YouTube at commercial real estate pro network. And while you're there, and please subscribe. With that. I want to welcome my guest, Jacob Vanderslice, welcome to CRE PN Radio.

I'd like to ask you, Vanderslice,

JACOB VANDERSLICE  43:50  

what has got a few thoughts here on the biggest risk? Yeah, risk is a subjective thing to a degree based on who you're talking to. I look at risk as the as the mitigation of a loss of principle. So what is the story on this deal that would have to occur where we would see a loss of capital, and we look at that more carefully than we do the upside scenario. upside is a lot more difficult to quantify. But finding a story that creates downside is what we try to just eliminate. And having in real estate finance when someone crashes and burns. It is almost always because of a cashflow issue. It's always a cash flow issue. There's there's certain circumstances where you can fail not because of cash flow, but you know, something maybe bigger COVID, for example, but we watch our cash flow very carefully, specifically in self storage. And when we buy a given deal, there are two risks to that to that acquisition. I think outside of things we can't control interest rates and cap rates where rates going to be involved. yours where Cap rates going to be in five years, we don't know, right, we can make a forecast we can be conservative. But we can control is our is our net operating income and and our revenue, we have control over that to a degree. But the two risks on a given storage acquisition, we believe are rents where rents today and where rents going to be, and is that revenue stream achievable and reasonable that we've written into our model. And secondly, it's kind of getting in the weeds. But property taxes, I think, are a major risk. And property taxes and self storage are variable just like any asset class from market to market, they're a lot higher in the Midwest than they might be in Denver. But because storage leases much like multifamily are basically full service, meaning the the tenant doesn't pay the property taxes, those come straight out of the bottom line. So if you're accruing for property taxes incorrectly, and you get reassessed, that's going to be a material change in your net operating income as well as the total value of your property. So that's something rents and taxes are something we really analyze very carefully. And to mitigate the risk on the property tax side, we accrue for a tax bill, that's a worst case scenario. So that it is inconceivable the property taxes in the in the foreseeable future will ever go above this figure. And that's what we approved for. And typically, we come in well below that figure, sometimes we get lucky, sometimes it just doesn't get reassessed. We'll do some creative transfer, things where we buy the entity versus buy the deal. But I know that seems kind of in the weeds. But if you think your property taxes are gonna be 100 grand, and then 140. That's a massive Delta. If you put a six cap or a five cap on that 40k In noi, you've missed the mark on your deals value by lots of money.

Today, my guest is Oliver Fernandez. Oliver is a business owner and real estate investor that has successfully completed over 80 million worth of construction projects and accumulated a real estate investment portfolio valued at 150 million in the past nine years. And in just a minute, we're going to speak with all of her about adding value through quality construction and multifamily real estate.

J Darrin Gross

I'd like to ask you, Oliver Fernandez, what is the biggest risk?

Oliver Fernandez  

Yeah, this is a really interesting question. And, you know, my mind went a couple of different directions, but the direction that it just keeps going back to is the biggest risk is not being intentional about what you want to do. And the reason why that's the biggest risk is because when you become 8090 100, or whatever your time is, and you look back on your life, and you're like, did I do everything I wanted to do, I don't want to ever be in a situation where I was like, Man, I could have done this differently or I could have done that differently. Alright, I really, I didn't, I didn't really focus on what I wanted to do here. I didn't want to focus on what I want to do there. I want to look back and just say I was super intentional. I did everything that I said I wanted to do. And I didn't leave any stone unturned. I didn't, I didn't leave any, any any opportunity that I really was excited about it. But I didn't have the courage to go for it. Like I don't I don't want to be in that situation. So I want to focus on being extremely intentional about my life where I want to go or family go where team to go from my businesses to go. Because I also know the opposite side of that when you're not intentional and you're just letting the the world just kind of control you and put you in situations. You know, that's never a good situation. So the biggest risk is not being intentional about life.

Today, my guest is Zachary Beach. Zachary is the an Amazon Best Selling Author of The New Rules of the Real Estate Investing. And co host of the Smart Real Estate Coach Podcast is a partner, COO and coach at Smart Real Estate Coach. In September 2020, they released a revised edition of Real Estate On Your Terms, which Zach co authored. And just a minute, we're going to speak with Zach, about real estate on your terms, how to create continuous cash flow now without using your cash or credit. But first, a quick reminder, if you like our show, CRE PN Radio, there are a couple of things you can do to help us out. You can like, share and subscribe. And as always, we encourage you to leave common we'd love to hear from our listeners. Also, if you want to see how handsome Our guests are, be sure to check out our YouTube channel. You can find us on YouTube and commercial real estate pro network. And while you're there, please subscribe. With that, I want to welcome back my guest, Zack Beach. Welcome back to CRE PN Radio.

J Darrin Gross

I'd like to ask you, Zachary Beach. What is the biggest risk?

Zachary Beach  

Yeah, it's a fantastic question. Because it's something that we talk about quite often. And it's something that we talked about a lot with our, our students, and that's because we help a lot of students leave their corporate jobs, and become real estate investors or become business owners, because it's our big belief that the W two is the biggest threat. Who is the biggest risk because you have zero control over the outcome of whether or not you have a job or not, there's too many other parties involved. There's too many other people that that can control your destiny. It's not until you put the risk or you go outside your comfort zone and start building the life that you choose through either real estate investing or business. That way you can start taking control of your life. No, all the predictions are right now that we're about to go into a downturn. I mean, nobody can really predict me in the billionaires can predict, but the feeling is that we're shifting. And when there's a shift, there tends to be layoffs, there tends to be businesses out there cutting back on their labor, and they start really consolidating. So you just never know, if you're the one that's going to get cut back on as as being you know, instead of w two. So that is why there's a large group of people that are consistently and we're starting to see it are consistently applying to be you know, in our programs that have corporate jobs, and they're looking to first and foremost, offset expenses by building a real estate portfolio. And then secondly, once they go ahead and build that portfolio, create a transition plan to now be in control of their business, and be in control of their lives. And you the amazing thing is once you see people transition and escape that that job, the new life that's built into them in the acceleration process of their life, personal development, their wealth, how it dramatically starts increasing, once they have full control of it and can consistently day in and day out work on building that better life. So the W two in my eyes is always the biggest risk when it comes to you know, say real estate investment when it comes to you personally inside you live.

Today, my guest is Jason Stubblefield. Jason has been investing in real estate for over 10 years. He started with single family homes and have since moved into the multifamily real estate space, he scaled his portfolio to over 100 multifamily units. In just a few years. Jason grew up in a lower class family and was always mindful of the tenants he served. That concern led him to the transition company into the affordable housing space. His company is now devoted to helping solve the affordable housing crisis while maintaining strong returns for his company and his investors. Prior to becoming a full time multifamily entrepreneur, Jason spent over 11 years in the software development, and has a Bachelor of Science degree in computer science from the University of Memphis. He is also a United States Marine Corps veteran.

J Darrin Gross:

I'd like to ask you, Joe Moffett, what is the biggest risk?

Joseph Moffett  

Well, I'm going to answer it from the perspective of a mindset. And because I think it applies in insurance, real estate, the economy, politics, whatever it might be. And the biggest risk I see as individuals not being flexible. And what I mean by that is having the flexibility to see things in different ways than they would traditionally look at it from, it takes courage to look at both sides, or all sides of a story, a situation and investment, a product to really have your due diligence on what's the best way to go. So people that I find that say, it's one way, it's this way, let's go it's my way, or the highway type people like they are in so much danger, they are at such higher risk of failure, and even under the illusion that they're going to be successful because of it. And they may be but at what expense, but they are at a higher risk. And someone who is more flexible, they're open to seeing both sides, or all sides are open this, you know, change direction or going down a path. I know. For me, I remember I had a term policy, and I realized, you know what whole life was a great insurance policy, that product for me, and then I actually unknowingly because I didn't know all the details, I actually went through my whole life policy, when I didn't know that the product was designed to be able to take out a loan against my principal that was compounding annual. So anyway, you live and you learn. But I wasn't I wasn't flexible enough to see all sides and understand it. So I would say the biggest word I can say is are you flexible? And if you're not, how can you be even more flexible? Because in today's times, you know, the strategy in real estate last year in the last two years, that strategy isn't working now. And if you think it's good enough, you're not flexible and adapting with the market, you're not going to have the success you're looking for. In fact, you could actually harm yourself and or cause yourself to go in the opposite direction. So flexibility is my answer.

Today, my guest is Joseph Moffett. Joe is a he received his master's in performance psychology. He is an entrepreneur, a real estate investor, a co best selling author. And he's worked with Tony Robbins for almost a decade. He is also the CEO of master life by design. And he's done over 22,000 Peak Performance calls. And today we're going to speak with Joe about business mindset coaching in life and real estate.