Today my guest is Mike Ciorrocco. Mike is the CEO of People Building Inc. He is a performance coach, author, dynamic public speaker, visionary and thought leader. He has been featured by Yahoo Finance as one of the top business leaders to follow in 2020 and is on a mission to build people. At his core. He's obsessed with success and helping others achieve greatness. C-Roc is a guy who had a fire lit in him at an early age that fires led him to inspire others to see greatness inside themselves using past life events to fuel their fire. In just a minute, we're going to speak with Mike about how you can turn setbacks into rocket fuel.
I'd like to ask you, Mike's Ciorrocco, What is the biggest risk?
By the way, my friends called me C-Roc, Darrin, and so you're more than welcome to call me C-Roc. But the biggest risk for me is I've been through business before where I've relied on people, I relied on their production what and even if they didn't buy into the culture that we were trying to establish, I would just put up with it and there were they're producing a little bit. And so the biggest risk for me nowadays is One, you know, I don't ever want to have to do this. But I'm always thinking to myself, if I have to do something myself, I will. And I don't want to ever risk my independence and ability to. So go back to zero and build a team by allowing people that do not buy into our culture to stick around our team. So in other words, have you heard of the term being held over a barrel? Oh, yeah. So I've been in this situation before, where I let that happen. And things fell apart in the company that we were in because I let the culture slide. And I was basically allowing the production to rule the roost, instead of people that are buying into the system that I know works. And so I was risking at that moment, our whole group, our whole team, everything that we built, based on production, rather than attitude and buying into a culture. So right now what as far as the biggest risk for me, to me is it's constant. It's I'm always looking at this, I deal with this right now, I have a few individuals in our company, I'm very open about it, that I'm not sure we're going to last here, even though they're doing business, because they think that that's the most important thing, rather than being a part of the team, and buying into what we expect. So it's very risky when you do this, because to me, you have to think to yourself, if I leave these people around the risk is that other people are going to see their complacency, the fact that they're not bought in, and they're going to start to buy into there, the people always start to buy into the band and the cancer, and that that risk is always present. And I have to weigh that and balance it, whether it's worth keeping the production on, and taking that risk that other other people are going to see these people not buying in. So that that's that's what I would answer that question with right now. And that's constantly on my mind.
Today, my guest is Meg Epstein. She's the founder of CA South. Originally born in California, she calls Nashville, Tennessee home now. She's a real estate developer, and has over a decade of experience creating efficient, modern lifestyles for people where it matters most, their homes and their neighborhoods. And just a minute, we're going to speak with Meg about it Opportunity Zones, and commercial real estate in Nashville, Tennessee.
I'd like to ask you, Meg Epstein, what is the biggest risk?
I think in Nashville, I think being only centered on one market. I think I'm you know, I need to closely monitor supply. And it is always unnerving when I drive downtown, and they see 15 tower cranes in the air, right, because we have been able to absorb that supply. But I think it's a metric we need to watch very closely, especially with the pandemic and how quickly the market changing in ways we haven't seen. So I think supply as is always going to be a fundamental risk for me. And in which case, you know, I need to change strategies. And hopefully we're nimble enough to.
Today my guests are Mark Childs, Principal with Capacity Commercial Real Estate, where he specializes in Industrial and High Tech real estate brokerage services. And joining mark our two members of his team, Daniel Sayles, and Daniel Helm.
I'd like to ask you, Mark Childs, Daniel Sayles, and Daniel Helm, if you could identify what is the biggest risk?
I can go first on that, I would say the biggest risk would be not making that last call. One more call that potential opportunity, at the end of the day, at last dial the day, the easy dial to just say, Hey, we're not going to do it. potential opportunity to help a client prospective client, someone that you know, has an opportunity, but all you need to do is pick up that phone. So to not make that last dial is huge. And one thing we preach here at Capacity is one more call.
Yeah, mine kind of ties into that as well. For me, the biggest risk for me is always being uncomfortable. I feel like in this job, if you're comfortable, and you think you know everything, there's something you're missing in the deal, there's something that you're not asking the landlord, there's something that you're not asking your client. So sometimes I just like getting uncomfortable and maybe asking the landlord for something I typically wouldn't do or asking my client, you know, or a prospective client when I walk into their business and talk to them. Just having that conversation with them and letting them know that I care and it might seem awkward at the time but it'll go far, you know, down the road if they start working with me.
Get comfortable being uncomfortable.
I would put it you know there's lots of risk everywhere. But to keep it simple, you know, in the biz, when you're out showing someone a property to start with the difficult questions. What What is the sprinkler rating here? You know, what is code? Will this use really fit here? Okay, it's a multi tenant Park. That looks like a lot of space. Let's go out and pace it off? Is that really enough room for your trucks to come in? You know, a conventional sleeper with a 53 footers 72 feet that takes a lot of room. Oh, by the way, you're gonna have a lot of parking. It looks like there's parking now, but we got to learn about the tenants nearby how much parking they're going to need. The flip side on the biz, I think what I've learned through the years is don't try to do something that you're not good at. I'm blessed, I have a lot of people calling me through time for advice on their real estate problem. And more often than not, I'm, I let them know yes call me first but by the way, odds are I won't be the one solving it but I'm going to know who to recommend for solving that. Not much anymore retail, restaurant or other food group category a problem.
Today, my guest is Jeff Love. Jeff is a partner at Gibbs Giden Attorneys at Law, and they focus on real estate transactions.
I'd like to ask you, Jeff Love, what is the biggest risk?
To me, it's the same for me, because I'm a real estate investor myself, as well as advising real estate investors. And to me, the biggest risk with with real estate is exposing my non real estate assets to a real estate related risk. And what I mean by that is, if I own a two unit apartment building, and the tenant has a party, someone slips and falls. Now I've got, I've got, I've got a claim against me as the landlord. It may be a really bad fall, someone dies. And they may want to they when they want to sue me. It's a $5 million claim. Now, I may have insurance, which I hopefully do, get it from someone like yourself, and that gives me protection. But what if that insurance isn't enough? You know, my property insurance, my umbrella? That only gets me to 3 million? How do I protect myself because I don't want my bank account. I don't want my car, my kids college bonds my home, I don't want that exposure for one particular investment, real estate, just one aspect of my portfolio. I want to try to keep it contained. And one of the ways we do that is through insurance. And that's you know, that's my, you know, first answer. But insurance may not may not always cover, there may be an exception. So how do we go one step further, and to our clients. That's part of our corporate practice or entity structuring and what those limited liability companies give you our limited liability, whether depending on what the form, whether it's a corporation, a limited partnership, and LLC, what that does is say, my exposure is only the company, I can't unless I do something wrong, and it pierce the veil, myself as the owner of that company, you can't come after my personal assets. So I take my two year apartment building, I put it into Jeff's LLC. Now there's that slip and fall, they may make a claim against me, they may get my $3 million insurance coverage. And they may take the property to cover the other $2 million of the claim. But that's all I lose, I don't lose my car, my bank accounts. That's all safe. And to me, that's the biggest risk is being able to really mitigate the risk of each property and segregate my assets to make sure that if one card falls, all of them don't. And so what we do with clients is help them segregate those risks, maybe even have different properties in different companies. One has specific environmental risk. Maybe one is an apartment building with lots of tenants and other Amazon deliveries, we want to keep that separate from my industrial property that's worth a lot more money or my personal assets. So I think that corporate structuring and understanding what an entity that grants limited liability protection, the benefits that that can really give you in mitigating risk and exposure.
Today, my guest is Nick Prefontaine. Nick is part of the Smart Real Estate Coach family located in Newport, Rhode Island. He recently co authored the best selling book, The New Rules of Real Estate Investing, 24 Leading Experts Reveal Their Real Estate Secrets.
Nick Prefontaine, what is the BIGGEST RISK?
The BIGGEST RISK is analysis paralysis, so not taking action. Thinking that you have to learn you have to learn XYZ or you have to you have to do something else or get to a certain point before you're ready to take action. I just think that that paralyzes people into not getting results if they're not taking action. So one of the things that I always say is ready fire aim. Like just get started. And then once you're started, you can course correct and that's, that's been my whole career. Door knocking, like I said, I get out there, I failed a bunch of times I didn't, I had limited information about what to do. But then once I had something to go off of, and I was able to fine tune in and get better and better. Same thing with cold calling and prospecting as a realtor. You know, once I got started, I was I was able to adjust and get better. Then there was a time when I didn't know I work primarily with the buyers in our business, the rent to own buyers and kind of out of the out of working with them I Distilled or developed a process that you have to put everyone through to ensure that they're able to be successful and get to the end of their lease and be able to get their own loan and get across the finish line. But there was a time when I didn't know any of that. I my dad listen to some of my first calls. I there was a time I didn't know any of that. So I was I just start that. That's my thing. Like take action.