Today, my guest is Eric Voyles. Eric is the Executive Vice President and Chief Economic Development Officer of Tex America Center, which operates one of the largest mixed use industrial parks in the United States. in Texarkana, Texas. And in just a minute, we're going to speak with Eric about the COVID effect and the opportunities created from COVID in rural markets in an in an industrial and flex space properties. And, but be first.
J. Darrin Gross:
I'd like to ask you, Eric Voyles. What is the biggest risk?
For you? No, I'm looking at it from the perspective of my clients, you know, the people I work with their biggest risk is potential for failure. And if you fail, when you expand many times you drag your entire company down with you. And so I always try to help people understand that not only is being in charge of an expansion if you're in a larger company, a potential career limiting assignment. But, you know, you you could you could actually if it's your own company, you know, you could have complete financial failure of your business, if you make the wrong choice. And so that's why we focus most of what we do. I'm trying to help people drive down that risk of relocation. You know, we began the process I mentioned I come out of economic development. So we began the process of once I got here of assessing the property. We looked at what are our costs, and really have tried to understand our cost structure. Then we've and we've tried to understand what companies need that structure. Then we've tried to understand what, you know, the political risks that might be involved with our property. And so there weren't really incentives available. So we have worked aggressively to put incentives on the footprint that you can get access to. And again, that that kind of ties back to financial. But you know, it also demonstrates that we are 100% committed to your company, to work with you, in the long run to achieve not just profitability, but stabilization in the shortest time frame possible, then we'll work with you to grow profitability. So all of this is really important when people are making decisions, we try to understand our market so that you can build a business plan that you can have confidence in, you can take it to the bank, you can take it to your board of directors. So you know, we many times are helping people collect the data that they need to put into their business plan. And you know, if it's good, and you can make your decision favorable for us, that's great. If if it doesn't match up to something else, that's great, too, because we've helped you make a decision. So you can move on, it allows us to focus on other things. So my entire our entire thought process in this is risk mitigation. And by doing this, when someone decides that we're the right place, what we've seen is those companies tend to be successful, they usually are willing to come back and provide testimonials for us about what we've done, that they didn't realize they needed help with at the time, but the things we did made a difference in their startup and their stabilization and in their long term profitability. So that that's what we focus on. I think that is the biggest issue that that corporate executive or that business owner has to address when they're trying to expand, they need to think about what are the risks associated with making this decision, and they need to choose the right place.
Today, my guest is Matt Sullivan. Matt is the founder and full time Chief Executive Officer of quantum Mari, a serial entrepreneur. He's the founder of crowd venture.com, and a co founder of two real estate funds. And in just a minute, we're going to speak with Matt about how a home equity agreement works and what it can do for you.
J. Darrin Gross:
But if you're willing, I'd like to ask you, Matt Sullivan. What is the biggest risk?
Well, I think the answer is relatively straightforward, because from an investor's perspective, it's a real estate investment. It's an equity investment. And so the risk to the investor is that the value of the underlying real estate decays to the point where they no longer have an interest because their equity interest has been reduced. Now, as you quite rightly say, so that is the risk, how do you mitigate that risk? How do you reduce that risk? How do you remove that risk. So the way the contracts are written, there are protections in there for investors. So, when we value the property, in some cases, we'll build in a little bit of a discount so that if the value of the property doesn't go up very much, or in fact stays the same, there's still a return in there for the investors. But really, the way that we look at the risk for both sides is it is absolutely directly correlated to the value of real estate. And so there are no extraneous risks that I'm aware of, there's no sort of risks that would not be sort of directly related to whether the value of the property goes up or goes down. So that's actually quite easy to quantify. Because we know from an investor's perspective, what the returns are going to be if the property goes up, what they're going to be if the property goes down, and the same for the homeowner, if the property goes up significantly, they're going to have a bigger share of the equity that they're going to be going to be paying. If it goes down, the homeowner actually benefits because they may not have, they may have to pay back far less than they originally received. And the other thing to mention is for our business as a whole, the biggest challenge, which is a bit like a risk, is education is getting people to understand what this Anneli what this animal is, how it's not debt, how it is not too good to be true, how it is a viable financial tool. So I hope I'm not mixing apples and pears there. When I'm talking about sort of, you know, risks and challenges, but I didn't, you know, I, we are seeing far more interest and willingness from homeowners funnily enough to investigate these types of alternative funding options. So, I mean, risk is a word I, I'd like to finish on opportunity, rather than risk however, that, hey, you
Today, my guest is Rich West. Rich is the general manager at Lightbox, where he oversees their lender and valuation business. Prior to joining Lightbox, he spent 13 years at CBRE. Most recently running the Americas valuation business, the largest valuation firm in the world. And in just a minute, we're going to speak with rich about lending volume trends and commercial property tech tools like light box valuation.
I'd like to ask you, Rich West, what is the BIGGEST RISK?
Okay, so the biggest risk for me and I'm going to come at this from my years of experience, looking at buildings, right? And, and living through the, you know, the 2007 2009 era, living through this era. biggest risk in my mind is not talking to your tenants and understanding what your tenants are doing. What what your tenants mindset is how your tenants business is doing? Because in the end, that's really what drives virtually all value is what the heck, what value is the tenant getting out of the space? And how is their business doing and, and, and what are their problems? So So to me, the biggest risk is being disconnected from what your tenants are doing, you know, whether it's a building you own, or if it's a building that you're you're looking to purchase.
Today, my guest is Ari Rastegar. Ari is the founder and CEO of Rastegar Property Company has earned a reputation as a thought leader in real estate with his innovative technology driven investment strategies. And in just a minute, we're going to speak with Ari about opportunities that Biden's sustainability initiatives will bring.
I'd like to ask you Ari Rastegar, what is the BIGGEST RISK?
The biggest risk is ego, always to me, you know, and I say that in whatever instance that you're working on, you know, as you know, whether as a CEO, as a father as a husband, you know, early in my career, and I'd like to, I'd like to believe that I've improved on this a little bit. I don't know if my wife would agree with me entirely at home. But, but but the key is looking for the right answer. And we touched on that before, and it's really being collaborative, and it's really, you know, taking yourself out of the equation, because a lot of times I'm not the consumer, so there might be a countertop that I want to install. And I love this red, I'm just using I'm just using a random color, but I might not be the consumer. And so doing a focus group, you know, asking other believable people bringing up their, you know, using collaboration to find the right answer. And, you know, whether it's a father talking to our children, and I might think that, you know, this is the way that I should be talking to them or teaching them or disciplining them, but is that their love language? Is that the way they shouldn't they need to be spoken with? Is that the way that they need to be nurtured? Is that the way that I need to show up for my wife does she need me to listen to me listen to her, or does she need a solution and you know, and really taking myself out of the equation and and and that's been one of the biggest evolutions of Rasta Gar. Is is really that is that's the biggest risk, because when we think we're right, and Mark Twain said it best he said, it's not what, you know, we don't know that gets us in trouble. It's what we know for sure. That just ain't so. And and I think that's been the biggest learning experience for me. And the thing that I've really, you know, really focused on. I think, some of my childhood friends would say that was a little bit more of an arrogant man, earlier in life, and I'm looking to find a little bit more humility there, but not humility in the sense that I think less of myself or less of, you know, less confident, but thinking less about myself and thinking more about what that end user consumer is, our investors, the property themselves, investments themselves, and all the other facets that come together.
Today, my guest is Joe Bell. Joe is a real estate and wealth expert coach. He's been featured as one of Alaska's 30 nines. He's top 40 under 40. And Joe Bell is an expert in helping real estate professionals build legacy, retirement and wealth. He's the founder of Legacy Beyond Listings, and the author of Assets, Acquisitions and Abundance. And in just a minute, we're going to speak with Joe about how to focus on your market, build your team, and create real wealth and freedom in your real estate business.
J Darrin Gross:
If you're willing, I'd like to ask you, Joe Bell, what is the biggest risk?
Yeah, well, an insurance related answers sometimes a really good step. But beyond that, right? Um, you know, the some of the biggest risk is, is when you you think you know it, all right, you get to that point where you reach the pinnacle. And as soon as you start to feel like you're there is one of the biggest opportunities to actually get swept off the mountain. I think a lot of us out there, I know myself experienced that, when COVID hit, and we lost $900,000 in investment. It quite frankly, just caught a lot of people with their pants down, myself included. And I was I was to a point where I felt like, you know, I was doing pretty well. And I knew quite a bit of of what there was to know out there. But it was a humbling moment where I had to take a step back and go, No, we're not even close. Right. So, you know, the biggest risk is to get to that point and stop learning, stop progressing, stop evolving, both as an investor and as a human. You know, so that that, to me is one of the biggest risks outside of all your general pitfalls that typical new investors run into and, you know, trying to trying to do stuff before they really know what they're doing and that sense. So yeah, for me, it probably applies to a more seasoned individual that has been around the game for a little while, but there is there's no Pinnacle. It's a continual evolution and just focusing on that.