Today, my guest is Trevor Bacon. Trevor is the CEO of Parcl a blockchain based platform that allows users to invest in digital squarefoot physical real estate and neighborhoods around the world. And in just a minute, we're going to talk with Trevor about utilizing digital real estate as a hedge against inflation.
J Darrin Gross:
I'd like to ask you, Trevor Bacon, what is the biggest risk?
Great question. Yeah, aside from the table stakes, which is just execution that we're focused on every day, I think there's their security is the security and transparency is something that we take very seriously. And we obviously identify that as, as a risk point, both for the actual product, but also for our community and reputation. So we take security on both the data side and the blockchain side. Very, very seriously. We've had multiple, multiple audits, we have audit firms on retainer, to make sure that every line of code is audited before we put it on the blockchain. And expose it. So that is something that we view as a risk, we do our best to manage it. And as you say, mitigate it through checks, protocols, just time spent in development. And then that's something that we'll continue to make more robust as we expand.
Today, my guest is Charles Chandler. Charles is the co founder and CEO of My Tennessee Home solution, a real estate solution company composed of veterans dedicated to hard work and service in the civilian world, just as they were during their time in service to their country. Currently transitioning out of the military. Charles looks to help others use their God given gifts and talent to help themselves and others.
J Darrin Gross:
I'd like to ask you, Charles Chandler, what is the biggest risk?
As a as an officer risk mitigation, risk management is a daily thing that gets communicated because we have risk at certain levels that we can mitigate and whatnot. So definitely appreciate that question. Because it again, it just ties into multiple things that I'm involved in. And so for us, and our team, really the biggest risks that we that we've experienced on and I can say this probably for both single family and multifamily has been not contacting the correct people and more so meaning on the multifamily side, getting into Build playing architects code, permitting, all kinds of different departments that we didn't even know existed at all, and then on the single family side, somewhat the same as far as zonings. What, what can or can't be done to certain houses, and again, that just being more So internally, kind of putting blinders on thinking of us individually, we have to solve this and figure this out and not. And that might be inherent as well, kind of a as a weakness on the military side, and more type a strong willed, will I'll get this done kind of thing, and not realizing that there are so many outside resources that are that are postured to really take down a lot of those potential obstacles that you're going to face. And so that on the multifamily side, that's been a continuous learning experience, especially right now with who it is that we need to talk with. And so biggest risk was kind of tied to not only taking a ton of massive action, which is great, but almost too quickly, and not realizing who is it that we need to talk to, who's out there who's available, who's a resource, or at least pausing just to even think of that question. And so that is the biggest risk for us, because that could potentially lead to where you're at a point of potentially no return, or there's going to take even more cost to potentially fix or mitigate something that that has happened. So thankfully, we've we're not at that we're not there and reach that that point. But we definitely saw that as a big learning lesson in internal conversations as far as risk.
Today, my guest is Dave Dubeau. Dave Dubeau is a real estate entrepreneur, best selling author, speaker and investor, attraction expert. And in just a minute, we're gonna speak with Dave about raising capital.
J Darrin Gross:
So Dave Dubeau, what is the biggest risk?
The biggest risk in my mind, for real estate investors is relying solely on their own financial wherewithal to create their portfolio. So this might sound self serving, because I'm in the business of helping people to raise capital. And maybe it is, but you know, that's what I focus on. So just like you focus on insurance, so I see so many people get stuck and stay stuck with a real estate portfolio that just doesn't really do much for them. Because they don't know how or they're not willing to grow using other people's money. So they stay stuck with one or two or three properties in their portfolio, which is better than nothing, for sure. But it's not, it's not going to allow them to create that real estate dream they had in the first place, which is usually to create enough passive income to be able to quit the jlb. Right, or be able to retire early, or whatever it is. So that that is the biggest risk is just staying stuck. Because you're not willing to expand by partnering up with other people.
Today, my guest is Aviva Sonenreich. She is the owner of Warehouse Hotline, leveraging advanced marketing techniques to maximize your commercial real estate results. She is also the number one commercial real estate broker on TikTok. Where her handle is @realestatesource and has over a million views. And in just a minute we're going to speak with Aviva about Warehousing and TikTok.
J Darrin Gross
I'd like to ask you, Aviva Sonenreich, What is the Biggest Risk?
I genuinely feel like the biggest risk is not taking risk at all. And not learning the pros and cons to risk that I think in our lives, our risk tolerance, can and will change and you need to assess what risk makes sense, when, for example, I feel like I can be riskier now because I don't have kids, that could change in three to five years, and I will have mouths to feed so I can't maybe make some of these really risky decisions in investing or working or any, in any capacity. But what I've noticed is that the I love the thought thinking about risk and reward and the I find the biggest and the best things happen with the most risk, right? The bigger the risk, the bigger the reward. And so understanding that and doing it in a way that is comfortable to me or you I think not having that conversation with yourself is the biggest risk of all.
Today, my guest is Dale Watchowski. Dale is the President CEO and COO of Redico. Dale has more than 30 years of real estate experience in both local and national platforms with a diverse spectrum of expertise in acquisitions, development, capital markets and operations. And in just a minute, we're going to speak with Dale about trends in real estate trends in commercial real estate development.
J. Darrin Gross
I'd like to ask you, Dale Watchowski, What is the Biggest Risk?
Yeah, so Well, I could speak on on this topic for hours. But but I'll start by by just you know, offering a general thought and it's it's nothing that that that I'm sure your listeners haven't haven't heard already and in know very well but, but risk is inherent in our business. Being in the real estate business as an investor is, is you know, we're no strangers to risk and, and, you know, as developers, you know, I'm part of a pretty optimistic lot. And I think you've probably heard it said before that you have to be a dreamer. And you have to be a very, you know, an optimist to be a developer. And, and I would say that I'm probably the exact opposite of that. So I tend to focus on the downside, and, and, you know, my team here, as always temper that, you know, because I'm always pointing out the risks inherent in everything that we do, but but I'd say that, you know, you know, speaking outside of, you know, the risk inherent, you know, that inherent in the insurance industry, I'm gonna, I'm gonna go to kind of market risks right now, and I'm going to tell you that, that to our conversation earlier, my biggest concern is around, you know, our Office users and, and, you know, are we going to be able to retain them? You know, will, you know, will we go back to the office? What form? Will we go back to the office? And what's it going to cost me, you know, to build out space that is attractive to my office users? And, and, you know, what did we do during this time of transition, you know, when your users are only looking to renew on a short term basis, which is really what's happening right now. So, you know, so what the, the impact of, of all of that might be is that is the capitals becoming much less scarce, you know, for Office owners and developers. And because the, you know, like, the capital markets are pricing in the risk inherent in that business. And so, and so I see the development of capital playing significantly into the office market. And, and so, I also see on the residential side, I'm gonna move to another area of our business. And in this translates into, you know, both our market rate, you know, traditional multifamily uses, you know, of any age, right through, you know, a multi generational platform, that will include senior housing, but, but affordability is a major factor. And, you know, while we were not acquiring bundles of properties, you know, in multifamily, you know, over the course of the last five years, you know, we certainly were looking at, you know, the trades that were being done out there, and, and you know, what had happened is we took a, you know, an affordable stop, and we said, Okay, we're going to, we're going to improve a kitchen, or we're going to improve the common areas. And what we're going to do is we're gonna increase the rent by 20%. Okay, and now you factor in inflation, and what's that going to do to, you know, the housing stock that's out there that would have otherwise been affordable? And then the other factor is, how are we going to build housing that, you know, that that our our tenants can afford, you know, given inflationary pressures? So, so I'd say that there's a lot of pressure on the residential space, in that, in that we're going to have to be responsive to the needs of the general population, which is, you know, how do I afford to live? And maybe that's why multifamily or rental housing is so, so attractive, and probably the reason why we're looking at single family rentals. You know, it's an alternative to single family ownership. And so, you know, what I see, you know, as a trend right now, in this is intergenerational, is that is that people are underemployed. And so that'll probably change, but, but then kind of moving over to the senior space. You know, what I've seen is a trend is that many of many of the boomers throughout this recession, or this throughout the pandemic.
By the way, I happen to believe that we're probably in a recession right now, but at least the real estate recession but, but that said, many of the boomers have have retired, or they've left the workforce. And, and then those same boomers that we're trying to attract into our senior business. They're not like, you know, the greatest generation in World War Two generation, they don't have savings. They don't have equity in their homes. They don't have pensions, and they don't have 401 K's, you know, which is what really drove our business and enabled us to maintain occupancy levels, you know, over the course of the last 10 years. So we have very few of those residents left and, and very few of our residents now, you know, how the kind of money that they would need to move into one of our properties. So what's happening is that they're moving in on a need driven basis, and they're moving in at, you know, 85 rather And then 75, which is where they were 13 years ago when I came into the business. And so and because of that, they have more health needs. So we have to find employees to serve their needs. Okay. And, and those employees are out there. You know, so, you know, how do you, you know, how do you mitigate that risk, and I think you mitigate the risk by trying to play in the middle markets and build a product that's affordable, you, you know, you try to, you know, not just attract and pay your employees well, but you, you try to retain them by, by offering them a great, you know, work environment, and, and then what you're going to have to look for is a way in which to retain your talents, even after they, they don't have the ability to pay any longer. And so we're, we're looking for different forms of assistance to bring into our business. So a lot of factors play into this. And I think I could, you know, as I said, I could talk about it for an awful long time. And, and that doesn't even, you know, bring up the risks that we have today, that present themselves, you know, as a result of, you know, geopolitical pressure and in the environment that we're dealing with. In the US, we started our conversation before this call, the environment that we're dealing with is one that's quite obvious through, you know, the heat that were that were incurring right now. And in the fact that we have to keep these buildings running well, throughout, you know, extreme temperatures. So So there are a lot of challenges. I think you hit on a interesting topic.