Today my guest is Jake Marmulstein. Before grant before founding his company Groundbreaker, Jake held a number of roles involving real estate and technology, supporting the growth of early stage digital technology ventures, while working with the government on foreign direct investment by Fortune 500 companies. In 2011, he started his career in real estate underwriting hotel investments for Watermark Capital Partners. He graduated from Cornell University with a major In Hospitality Management and minor in Real Estate. And at Groundbreaker Jake owns the company strategic vision and execution. He is responsible for sales, management of the departments and people leading them. And Jake also manages the company finances and capitalization as well as the board. And in just a minute, we're going to speak with Jake about software automation, for real estate, fundraising, fundraising, and how it can be an asset to you.
I'd like to ask you, Jake Marmulstein, what is the BIGGEST RISK?
Jake Marmulstein 35:38
So Darrin, the BIGGEST RISK for Groundbreaker in as I as I look at our business, and what we're doing is really managing expectations with people. Software is a living, breathing thing. And it is very challenging for people to evaluate. who aren't typically Software buyers and a lot of people in real estate aren't. So our job is to be good stewards of the, you know, good stewards to other people, treat them with respect and give them the most transparent access to what's really going on and what really our product provides when they're evaluating it, and trying to understand how they can improve their business. And that's how we mitigate that risk of mismanaged expectations and somebody getting something that they think does "x" when it really does "y". And so it's about just education, mainly.
Today my guest is Yakov Smart. Yakov is considered to be the leading expert when it comes to attracting A list investors and raising capital using LinkedIn. He is the author of Disrupting LinkedIn and a sought after authority by top business owners and sales leaders worldwide. Yakov has shared the stage with Samantha DeBianchi of Bravo's hit TV show Million Dollar Listing. And he's been a guest on numerous media outlets. As a resident of Scottsdale, Arizona, today, Yakov is a proud leader of LinkedIn Enterprises, where his webinars on demand training programs and strategic consulting accelerators give people proven tools and techniques for transforming their LinkedIn profiles into priceless relationship building assets. And in just a minute, we're going to speak with jack off about how To raise capital and attract high net worth investors using LinkedIn.
I'd like to ask you Yakov Smart, What is the BIGGEST RISK?
Yakov Smart 41:51
Right and it's a it's a great question. It's not something that I you know, honestly think about on a daily basis. I guess I'm you're a little more. You know, you see, you see A lot more different scenarios as being an insurance than I probably do when it comes to risk. But I'm gonna I'm gonna give a bit of what might be a bit of a surprising answer here. I think the BIGGEST RISK is a combination of plagiarism and misinformation because in the space, let's call it mentorship or online programs or coaching, consulting. There's a lot of knockoffs. There's a lot of people who are trying who here's something, it's good, they claim it as their own, or they put a slightly different flavor on it and they go and they completely knock off content ideas, intellectual property. And they you know, sometimes do it without repercussions sometimes do it for a while. So, you know, it has a lot of people in the space that I met and also, you know, a lot of coaches in the real estate space as well specifically, a lot of us understand that the bigger we get, especially if we And scalability reach or impact that's just a risk that naturally comes up. So you know to mitigate that risk and what puts me at ease around it is somebody could duplicate content okay? I mean and plagiarize and and do whatever but you know what I know at the end of the day is the unique way that I have delivering it and also with working with people, that's just not duplicatable because that's personally my unique perspective, my insight, my approach my methodology. So and the other side of that is misinformation. Someone you know, can play the blame game and say, well, you they can do something stupid, for example, on LinkedIn and post their deal and, you know, not be compliant with the SEC not something that I would tell them to do first of all, but then they could say, well that that guy said I can mark it on LinkedIn. So I can't I post my deal and say invest now on it just to the public. Like it's, you know, obviously something that I wouldn't recommend anybody does. But sometimes there's misinformation or people misconstrue things and human error. So it's always a risk to I mean, humans are humans.
Today, my guest is Jason De Bono. Jason is the NuView Trust Company, Vice President and in a little bit he's going to share with us the benefits of using a self directed IRA.
So, with that, I'd like to ask you, Jason de Bono. What is the BIGGEST RISK?
Jason DeBono 44:22
I think the BIGGEST RISK for a self directed account is that you take responsibility for all the investments, and it's a risk of personal accountability, right? If you keep your IRA in the stock market, one really nice benefit is that when it goes up and goes down, you know, you can kind of finger point your way around around it. Risking in a self directed account means you're taking on all the risk. There is no broker, there's no third party, you know that that's making your investments on your behalf. Now, in a self directed account, you can certainly rely on professionals right. Commercial brokers that can give you guidance and Advice insurance agents that can help you walk through the process. So you can get professional opinions, but at the end of the day, you're the one saying I want to buy that. And so that is your risk that you're inheriting. Obviously, you know, I love your, your example of kind of the three approaches, right? Which is to, to, you know, to look at risk, and understand whether or not we can avoid it, minimize it or transfer it. And I think excuse me, in a self directed account. From an investment standpoint, you can do all three of those things, you know, you can certainly, you know, avoid the risk by buying investments that have less risk, right? You can minimizing it, minimize it by educating yourself, right? So many people look at investing and wonder what went wrong and you know, there's a good saying I rely on all the time and that is the cheapest lesson that you'll ever learn is somebody else's. And you know, we we all learned lots of lessons the hard way and some of those can be very costly in terms of time, energy and money. So when it comes to Investing seeking advice and counsel and knowledge and expertise is is a wise thing to do, literally and figuratively. So you can minimize your risk by investing into what you know and understand it. And then transferring risk, you know, make no mistake, if you move money from stocks and bonds into the real estate market, you're transferring risk, right? you're transferring the risk and exposure in the stock market to the risk and exposure in the real estate market. And that's a personal decision that each and every person that makes that, you know, choice has to look at. And for a lot of our clients, they're reducing risk by moving it right. They're transferring risk from one asset class that they don't know a whole lot about to an asset class that they in most cases know a good deal about. So all of those kind of long answer to a short question. But But without a doubt, if you're going to self direct your account, the risk you're taking on is that you are 100% responsible, NuView will not offer you an investment put you in an investment recommended endorse it, approve it. It's 100% self directed
Today, my guest is Jon Bell. Jon is an IT professional turned real estate investor. He's a he specializes in vacation rentals, and today we're going to speak with him about Airbnb. He's also got a podcast he hosts the podcast Vacation Rental Machine Podcast. And he's also the co founder of the Vacation Rental Machine Formula an online training.
I’d like to ask you, Jon Bell, what is the BIGGEST RISK?
I'll answer it and maybe the most common risk that people assume when they think of short term rentals or specifically Airbnb s and that is major parties. People messing up your your place. With my experience, it's not the major risk, it is something you can hedge off. And this is how you do it. You pretty much need to make sure that you have proper systems in place and technology. And that really looks like you need to have some type of external camera and a noise monitor or a noise monitor, in general in every place if you cannot put a camera that lets you know before anybody else is pissed off enough to contact anybody else or call the police that something is going on that you need to pay attention to. And you can back that up with evidence and you can evict the guests and keep the revenue without creating a major problem.
Today, my guest is Michelle Bosh. She and her husband are real estate investors, entrepreneurs. They have multiple businesses and they have taken businesses multiple businesses they've built from scratch to seven and eight figure income revenue streams. And their business platforms include land auctions, rental portfolios, they've all authored a an Amazon number one bestseller called Forever Cash. And also, they host together the podcast Forever Cash. And Michelle also hosts the podcast In Flow.
Michelle Bosch, what is the BIGGEST RISK?
You know, the BIGGEST RISK that we have right now is that for the percentage of the tenant base that is unemployed, or that has lost their job because it is worked for housing, we buy c properties and B neighborhoods you know, that that if they've lost their job and unemployment you know, kept gets cut down, that they might not be able to To make their rent payments, so though, that's a big risk right there. Another risk is that you know, the economic recovery is longer than expected. And that therefore, you know, we are seeing having to carry, you know, a delinquency or a vacancy, you know, well right now not even a vacancy because we cannot evict So, so you know, that we're carrying a delinquency for longer than we want to, you know, what I mean? And some of the measures that we've taken it, you know, in order to preserve cash is in the beginning we are funded in order to be able to have you know, well capitalized asset number one, but now we've we've pretty much you know, cancel any big CAP X project for all three properties. We stopped already immediately because we were coming to the point where we were going to have to make payments you know, cuz on two of those three properties, we we've syndicated the asset and it's So we we stopped, you know, payments to our investors just out of precaution. And the properties have had amazing collection rates that I could have paid them. But I continue to hold on to that cash, because I want to have a little bit more time and visibility into what happens right now come July, August, you know what I mean, in terms of where we're at, you know, with the economy where we're at with unemployment and, and yeah, so those those are some of the things that we're doing but we hope that by being a from an asset management perspective, a first in class community because that's what we strive for, you know, when we come across a sea, you know, class acid in the neighborhood, we want to become the best. C there is such that there is a if there is an economic pressure, you know, that even people that are in a B property right now, that might be slightly nicer that when they have to downgrade that they're going to downgrade into the next nicest C which would be us, you know what I mean? Um, so.
So that's kind of how we're going about doing that is just making sure that we're well capitalized. I'm not excited about forbearance at all, I believe in making pay if I can pay my bills, pay my bills. And, and yeah, so now our conversation is starting to shift actually with, you know, our investors and into opportunities, because we know that there, there are owners and operators, large multifamily that bought in the last year, even within the, you know, last quarter of, you know, to 2019 that we're expecting, you know, in forecasting in their models, rent increases, you know, 3 5 7 percent and now, those increases are not materializing. I mean, they are gonna leave and there'll be opportunities out there for us to go and Again, just like we bought here in Phoenix back in 2008. This time we're going to be buying large multifamily. So kind of positioning ourselves for that, you know, having that, you know, that conversation and opening that mindset to the investor that, you know, that wants to invest with us that, that this is the right time to buy, you know, when this happens, and even though everyone else is trying to sell and trying to get out that it's okay to be a contrarian, but it's okay to, you know, you have to stomach and go against the grain of what everyone else is doing, because we've done it before and it's, it's paid off tremendously. So, um, so that's kind of where we're at right now. Yeah.