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.