J Darrin Gross
I'd like to ask you, Andy Gurczak, what is the biggest risk?
I think my answer if it's not insurance related would be fear. Fear would be the biggest risk. Like you said, Fear is what holds people back is you want to transfer that risk. You said you want to minimize that risk. Fear. To me, when I look at the what's the risk? Well, the risk is fear. If I don't do something and being scared to go out there and do something, we'll call that PA or to me, that's a risk. Because your your fear is holding you back. And you're you can't avoid risk. Right? You can minimize it, you can transfer but you can't avoid it. So I would I would say fear is what kind of was in my head the whole time. I don't know if the right answer. Quick, quick answer.
Today, my guest is Brad Hansen. Brad has been in the mortgage business for 18 years helping clients meet with home financing goals. He also is a real estate investor and loves to educate others on how to build wealth through real estate.
J Darrin Gross
I'd like to ask you, Brad Hansen, what is the biggest risk?
Yeah, that's a good question. You know, I think, you know, there's a couple of them. Number one, I mentioned a few of these number one, I think you have to be really careful. Trying to do too much too quickly, right? It's like anything, the more experience you get, the better you'll be at IT knowledge. So I always say, they walk before you run, right? And make sure that you're not, you know, if you're gonna buy an investment property, do it in an area that you know, do it, do it in such a way that you're going to minimize the risks, right? You know, that you have professionals help you, right? You know, the value of the home, you're not overpaying. It's going to cash flow, those kinds of things. So, you know, one of the risks is that you have a home that has a negative cash flow, right, let's say you overpay and rates are high right now, right? So your rates, your payments going to be relatively high, but let's say you have a payment, that's 3500. But you can only rent it for 3000. Well, now all sudden, you've got a $500 a month negative cash flow. So, you know, again, knowing what you're getting into and not just, you know, it can be as you said, it could be a little bit kind of glamorized a little bit, right. That's a lot of hard work. You know, are you going to are going to hire a property management company? Are you going to manage yourself? Are you going to hire a handyman to help take care of repairs, you know, those kinds of things? Because stuff goes out, right? Are you going to set aside money for maintenance? So there's a lot that goes into it, I would say, you know, that's a risk. But it can be mitigated by educating yourself, surrounding yourself with with professional so walk before you run is another one. The other risk potentially is home values might go down. Right. Now, while we don't necessarily think the environment similar to what happened in oh eight, where we saw 25 to 30% declines, because of the oversupply and the the lot of other things that were happening with the home financing wasn't great. We don't think that's the same environment we have, if you overpay, you could see values go down, but that I think that can be mitigated to a degree by what we talked about earlier. If you're going to buy it, don't expect it. It's going to give you the return on investment that you want to just the first year or two might take multiple years for that. So like anything, it is a risk. It's money that can be lost. But I think I mean, I honestly think the big Guess risk is that negative cash flow, maybe buying a property again, I always recommend that you get a really thorough inspection, you found a property that had that you didn't do an inspection. And you ended up having to put a new roof in or you had other issues, right. So like you, you know, again, I'm not insurance you there are things that insurance can protect you from, but insurance can't necessarily protect you from buying a home that is in disrepair and needs a lot of work. Right. So those are probably the biggest risks that I see. And there's ways to mitigate those and be prepared for them. But yeah, those are those are probably two of the biggest ones I've seen.
Today, my guest is Paul Neal. Paul is the founder and Principal Funding Strategist. At Vantage Point Commercial Capital. A firm that focuses on helping entrepreneurs and real estate investors win by funding their growth in dreams in non traditional ways.
J Darrin Gross
I'd like to ask you, Paul Neal, what is the biggest risk?
Well, I think the biggest risk that business owners and entrepreneurs face today and into the foreseeable future, is what I call big, big government, big technology, big media, even big banks. We've seen it over COVID, it's been in our face, that there's a there's a, there's a movement to sort of aggregate the power up into the hands of the few again, whether it's a government media, big business is, you know, is a threat to small business and entrepreneurs. Because, you know, we're, we're free agents, we're out there on the street, we're the ones that are building the community, we're hiring employees, we're caring about our customers caring about her families, giving back to the community, we're the ones that want to be able to exercise, you know, free and independent thought. And we have these forces that are aligned against us. And again, you COVID You know, who did they shut down? Well, they didn't shut down Amazon, they didn't shut down Walmart, but they shut down the, you know, the mom and pop that at a coffee shop, they shut down the church, they shut down, you know, anything they that didn't sort of fall into this, this large monolithic group that that could be controlled. And and I'm not saying there's any sort of force behind it, other than the fact that it's just natural, right, that, that, that, that we're sort of in a battle here that we all want control. And it's easier to control, the smaller the smaller number of levers that control, you know, sort of larger, larger economies, and without getting really deep and off of that, and I just think that we're in a fight, and I think as entrepreneurs, that for us to be to survive into the future that we need to stick together and realize that, you know, I don't I don't think our issues are, you know, most business owners that I know, regardless of the color, their background, their creed, whatever, they just, they just want to work with customers and serve people. And they want to do the best they can. They want to work in excellence, and we just have to stick together. And so we can all win together. Because I think when we win as entrepreneurs and business owners, our families when our communities win, and ultimately, society wins.
Today, my guest is Stuart Keller. Stuart is currently the head of Investor Relations syndication division, focused on senior living communities throughout the US.
J Darrin Gross
I'd like to ask you, Stuart Keller, what is the Biggest Risk?
You know, I would say, you know, I think what we all experienced, experienced collectively as a nation in 2020. And 2021, was, you know, a pandemic, that disproportionately impacted the senior population, you know, the impact to you and I was a lack of availability to get a haircut, you know, some small mom and pop a lot of a lot of small stores, and, you know, mom and pop businesses went out went out of business. For for the senior living population, there was COVID restrictions, not allowing new movements into the resident into the communities, you know, just a a significant impact, which hurt both occupancy, which drove down the net cash flow, but also the ability for new residents to want to move outside of their homes where they felt, you know, safe and secure. So I would say definitely, you know, if there was a repeat hope to god, there isn't of 2020 I would say that that's probably the single single biggest risk factor and senior living.
Today, my guest is Leonard Atlas. Leonard is with Mission Profitable Inc. Leonard is an author, speaker and sales trainer working with commercial real estate professionals around the world. And in just a minute, we're gonna speak with Leonard about the 80/20 Pareto principle. And he's got a presentation "From Brooklyn to Bel Air".
J Darrin Gross
I'd like to ask you, Leonard Atlas, what is the biggest risk?
Just a clarification, do you mean to me or to my clients,
J Darrin Gross
You can frame it for your for yourself or your clients, however you however you'd like to frame?
Well, I've spent so much time thinking about my clients. So the biggest risks of my clients is wasting the two commodities that you can never get back. You can only spend, you can never get back. And that's their time and their reputations. And far too many people have confided in me that they waste so much time with the wrong people. They didn't know what this qualification looked like they didn't know how to go about doing it tactfully and politely and not to burn the bridge. And when I say disqualification, it simply means to say to somebody, look, Charlie, this, this particular deal may not be the right one for us, you already got somebody on it. I'm a little late to the game, whatever. But does it make sense for us to stay in touch for future opportunities for future deals, so we're not talking about disqualifying them forever. We're just acknowledging if this current transaction, whether it's a renewal or next, or whatever it is, if this one's already allocated, and I'm too late, and I'm not getting it, why would I want to invest any more time, money and resources into it? So the time and again, that awareness I have reduced once people realize what the time is worth. Because let's face it, if you're making $10 an hour, you're gonna function one way, if you're making $100, now you're gonna function differently. And if you're 1000 miles now you're gonna function even more differently, and you're gonna delegate and more people do other things, and you're gonna stay focused on what you do to make 1000 miles an hour. So time, but about reputation as well. reputations? Well, and I'll tell you something in closing, I did a lot of interim things during COVID. Because there were no workshops, there was no trainings that whole this whole industry shut down for two years, two and a half years. And I met many wonderful people. But I met a group of people that I titled as fakes flakes and frauds. You have no idea? No, I avoided the entire PPP industry. And the PPE industry, I avoided those I was asked immediately masks and gloves because people don't have access to people in real estate. I want nothing to do with that at all at all. But ultimately, I would network and broker and do things and you know, make a living. And you have no idea how many fraudulent bios, fraudulent documents, Photoshop documents, absolute scam artists, people would send me a link and say, look at this person, they would just convicted a fraud from another state from another this from it. And other than that, I had one guy who claimed to buy and sell hospitals. And somebody checked it out to me. And he called me and said, This guy is wanted by the Orange County Sheriff on 89 counts of fraud 89 Counselor fraud. So I say that you because reputation is almost worse than time. Look, you spend time you can't get it back clearly. But when you burn a reputation, and you can't call that person back and they tell you never call me back, I never want to hear from you again. You know that kind of stuff. how devastating is that? And the way to reduce and minimize that is by using ad 20 and having a create a set of criteria. Who are the people that are acceptable for me to engage with and work with And I have no tolerance for fakes, flakes or frauds. That's my own personal thing. So my risk is falsely being associated with the with the wrong people that will waste my time, which equates to money and damage my reputation. So I got injured both for both my clients and myself. Life is too short, there's too much opportunity out there, there really is too much abundance out there. Once you determine your criteria for what is acceptable, what is not acceptable, all of a sudden, now you're guarding, guarding protecting your time and your reputation. I hope, I hope that helps answer the question.
Today, my guest is Jaspreet Baveja. Jaspreet is the director of funds strategies. And he has a BA in Management Information Systems from Florida International University and a computer engineering degree from Penn State University. He has been investing in real estate since 2013. And full time since 2019.