J. Darrin Gross:
Brent Bowers, what is the biggest risk?
Yeah, I want to talk about a property we buy. It was late 2017. It was the last vacant parcel of land in a mobile home park. And it was from a lady her husband had died. And he was a builder. And he pretty much he went bankrupt. So long story short, we had to reactivate his his LLC to be able to take ownership of that piece of land. And we went through all these steps and I had a buyer already lined up for $16,000 that I found on Craigslist. So I had about $900 into reactivating this LLC back tax his lawn service fee from the city and paying the seller so the seller really only made like 200 bucks off of this parcel land. Well, when I had sold this parcel for 16 grand to another builder that was going to put a brand new modular home on that title company found out that there was $157,000 IRS tax lein on it. So I did not do my due diligence in the beginning and run, like owners and encumbrances or O & E is what we call it, or even a title search at that point, you know, I was kind of just shooting in the dark. So I was just, I was so sad because I mean 2000 beginning of 2018 at this point like that, that was life changing, like I had just had I had a brand new baby, first first child. And actually, no, that was my second child by then let me let me back up that second child. But that would have been game changer, you know, a profit of 15 grand basically. So what I did was I waited a year I cried a bunch now, continue refining my system continue buying land, but I never took that deed into my name. Like, I never took ownership of that. And this poor lady would call me and never return a call. She's like, are you ever going to record that deed? Because I'm still receiving calls from the city and blah, blah, blah, I would just ignore because I was scared. I didn't know what to do. $157,000 IRS tax lien I didn't want to take on that I was like, Man that would bankrupt us from the very beginning. So long story short, I found a title company A year later, heritage title. They said, Listen, these things sometimes fall off, let's figure it out. So they cleaned everything up. I still did not take ownership of this. But it was good to go. So like go ahead and sell it, you're good. It's dropped off. The IRS drops these things off every so many years. I don't know how it works, just called dumb luck, or God blessed me I would say it was probably God, God's blessing, which we you know, you get lucky. The more you do that, the more God bless you. Um, so long story short, I found another buyer I think this time was on Facebook marketplace or buy sell groups, but found another buyer for 35,000. So one year later this I got confidence in myself in my process. So I doubled the price basically, I also got $5,000 down, I only had 980 into the property. So I got $5,000 down and it's a 52 and a half month term at 534 a month so I'm still getting $534 a month and I will be for another I think two two years two and a half years on this property but that's the biggest risk not checking the chain of title making sure that if J Darrin Gross leaves this property to Brent Bowers and you leave out Jay we just broke the chain of title so that's that's one risk and two is doing your background your due diligence and your title search and making sure there's no IRS tax liens or encumbrances or city liens. You name it. So there's my risk story.
Today, my guest is Jonathan Tuttle. Jonathan is the principal at Midwest Park capital, a mobile home park fund. And in just a minute, we're going to speak with Jonathan about trends and opportunities going forward in 2021 and beyond, in commercial real estate.
Today, my guest is returning guest Vinney Chopra. Vinney is a real estate investor. He's a syndicator. He's an author. He's gone full cycle on multiple syndications. And in just a few minutes, we're going to talk to him about the new venture he's invested in, which is the senior multifamily living and why Senior Living multifamily is so essential.
J. Darrin Gross:
Vinney Chopra considered to be the biggest risk?
You know, I'm so glad I mean, you know, I've raised $140 million I was just counting in my wife. My wife is my Investor Relations. As many of you know, our daughter, Monica is now VP of operation, and we just grown so much. But the key thing is, as the investor gives you money, you know, Darrin, they want to know, Vinney, what if you die tomorrow, right? So we have to really as business owners, and I highly recommend everybody listening to us to really sit down with Darrin or anybody who can really change you and tell you, what are the risks involved in your business? You know, it could be your death, it could be your transferring of the wealth, right? It could be like, we're into ground up construction, what are the different risks involved, when the GC runs out, or runs away, or doesn't have or slip and fall and, you know, anything, fire is there or wrong, mechanical, you know, systems are put in. So those things are very, very important. Of course, buying the multifamily, the renter's insurance is so, so huge. Not only that, also the property has to be properly insured. And the lawsuits and the directors insurance, I mean, I got, I had three or four lawsuits in the last 12 years, and I cleaned up, I totally didn't have to pay with $3 million lawsuit was going on with me, mediation came and the insurance setting for 500,000 I think I have to pay zero money. Zero money. If I had really said, Hey, I'm totally bankrupt, you know, I wouldn't be bankrupt. But the thing was, I just didn't let it bother me. I just kept on going kept on going in my thing. I knew my insurance company's gonna take care of me, right, you know, so it's very important that we get the best of the best. And, you know, like the GL general liability, right? umbrella policies on every property, I've had 6 million to $10 million, even the smallest of the smallest properties, because I believe paying that small premium is well worth the nighttime sleep, which I like to have really good sleep. And then it takes the risk of a you know, I can racial discrimination lawsuit. I got mechanical lien on property. So things like those happen right there. Yeah.
Today, my guest is Johnny Merritt. Johnny is an equity partner of Hajjar Peters LLP. He's an attorney with over three decades of experience in complex corporate and real estate matters. And in just a minute, we're gonna speak with Johnny about how a on demand fractional General Counsel relationship can work for you.
J. Darrin Gross:
Johnny Merritt, what is the biggest risk?
Very sincerely in this comes from my relationship with this $1.52 billion company that I've represented for over two decades. I think the greatest risk of business has is not having a good relationship with an insurance person. There are a couple of, as general counsel, what what you what you've learn to do, is you, your're a generalist. You provide those services that the the business typically would need. You review contracts, you you attend board meetings to you. You look at real estate transactions. But then then you get calls on for instance, intellectual property. But that's when you call them the expert. They're all there are a handful of people that I that I rely heavily upon. One is accountants. And you need to be able to call your accountant. Another one again, for my clients, I have a great IP attorney and intellectual property attorney. But I also have a an insurance broker, that, frankly, I am in constant contact with. Weekly is probably an exaggeration, but it's over four times a month, it is I believe strongly that that you that every business needs to have a relationship with somebody who understands can they can recall and rely upon. And in frankly, this comes from experience, we represented an entity that did not have enough insurance. And in it, we found ourselves with a substantial liability, they had not allocated the kind of using your formula did not evaluate the risk properly. They had not and then they had not allocated or taken care of. So I it sounds like it's so self serving in your favor. But it's just the truth is is having just like having a great attorney, and having a great accountant. You need to have a great insurance person who you trust to who you understand is not just out to sell insurance, but is there to help you protect and minimize your risks.
Today, my guest is Dave Foster. Dave is the founder and CEO of The 1031 Investor. Dave is a degreed accountant and serial real estate investor, who is a Qualified Intermediary and consultant for tax saving strategies such as the 1031 exchange, and the section 121. Homestead Exemption.
Dave Foster, I'd like to ask you, what is the biggest risk?
What a great question. You know, I like to think of risk as having been a coin that has two sides. And on one side, I think the greatest risk in both my life. And in my investors, life has been the risk of inaction. We want we had a goal of moving on to a sailboat and living and living out here raising our boys. And oh my gosh, that was the greatest period of our lives. But boy did we have to overcome a lot of naysayers, and a lot of fear, to take that risk. But the risk of inaction had far greater consequences than the risk of actually doing it. And that's something that Mark Twain actually said it 20 years from now, the things that you regret are not going to be the things that you did, they're going to be the things that you didn't do. So I see that risk of inaction has been huge. But the other side of that coin, is that with the 1031 exchange, and with what to build wealth, the greatest risk you've got is not exercising patience, and let your money work for you. Everybody talks about passive income, but passive income doesn't happen overnight. It happens in stages over time. That's my coin of risk.
Today, my guest is Chris Miles. Chris is the cash flow expert and anti financial advisor and is a leading authority teaching entrepreneurs and professionals how to get their money working for them today. He's an author, podcaster podcast host of the Chris Miles Money Show. He's been featured in US News, CNN Money, EO Fire and has a proven reputation with his company Money Ripples for getting his clients fast life altering financial results. In fact, his personal clients have increased their cash flow by over 200 million in the last 10 years. And in just a minute, we're going to speak with Chris about how to create an Anti Financial Plan.
J. Darrin Gross:
I'd like to ask you, Chris Miles, what is the biggest risk?
I think the biggest risk and this would apply to me or my clients, or anybody really, is ignorance? Right? Like, I always tell people, if you think education is expensive, try ignorance. You know, ignorance is seriously the most expensive thing in your life. I mean, that's really this whole conversation about you mentioned Trump, right? You know, people are mad about his tax turns. That's ignorance, you know, like, it's, it's what you know, and what you can do that actually creates the most money creates most protection, people can say, Hey, I don't need that insurance, right, like that protection. But if they're ignorant to the risk they're already taking, it doesn't matter what they think it doesn't matter how positive thinking you can do. That risk is still there, you know, you stuff to manage, and figure out what to do with that risk. And so I think that really is the biggest risk is just ignorance is what what you don't know is what hurts you. And also what you don't know is what keeps you being hurt. It keeps you living a life of struggle and lack. And if you can find the answers, if you can find out the information you need and act upon it, not just know it, but act upon it. You now you become somebody who's actually more unstoppable doesn't mean you don't have risk in your life. But it just means that if you're always in the mindset of, Hey, I'm ignorant about something at some time all the time, right? You'll start to realize I need to keep learning and if you keep learning, you have a much better chance of success than those that think they know it all. They think that whatever they've been told, that's the truth. And that's, to me is the biggest risk.