Today, my guest is Franco Perez, Franco grew up in a family that experienced unstable housing. Today, Franco is on a mission to create affordable housing in Silicon Valley. And in just a minute, we're going to speak with Franco about how mobile homes are the easy answer to the housing crisis.
J Darrin Gross
I'd like to ask you, Franco Perez, what is the Biggest Risk?
I think, for this conversation is one of the biggest things is really the advocacy and you mentioned politics. You know, what one of the big risks are people not understanding the value of these mobile home parks, and them advocating for these to be closed down or redeveloped into rentals into rental property? You know, these. That's what I'm fighting for right now with our conversation on the Congress meeting. And that sort of thing is protecting these parks, making sure we keep affordable housing available. And that's one of the big risks that I see because a quick government change could really change the landscape of these opportunities for so many people. And we need to protect these mobile home parks and create guidelines and policies to make sure that there's always going to be opportunities and social mobility for the middle class to be able to, to to own assets and stuff like that as well. So that's, to me, I'm finding is one of the biggest risks of our industry.
Today, my guest is Mike Kaeding. Mike is the CEO of Norhart, where they design build and rent apartments. Norhart is transforming the way apartments are built and managed by incorporating technologies and efficiencies that have revolutionized other industries. And in just a minute, we're going to speak with Mike about how Norhart is disrupting the housing crisis.
J Darrin Gross
I'd like to ask you Mike Kaeding. What is the Biggest Risk?
Such a good question. I'm going to answer it in three parts, three levels. The first level is the surface level, which is today's some of the bigger risks of the economy. Specifically rise in interest rates has that has a negative effect and debt proceeds used to fund new construction and just deals in general. But if we take it a step further deeper, which you realize is that those kind of problems happen all the time. It's this year, it's interest rates next year, it might be employment. After that it might be a supply chain, just something totally different. And so the deeper level, the deeper risk, there's level two, is making sure you have the right people. Because if you have an amazing quality team that can solve the biggest, most challenging issues, they solve those problems, they start unlocking doors and making things happen that you didn't know could happen. They have the capacity to pivot and change with the changing times and the changing market. So that's the level two tickets one step deeper, and maybe the deepest level for me, I think the biggest risk in life is not utilizing your life to the fullest potential. You know, as I mentioned earlier, my dad died at a relatively young age. And I haven't asked myself the question, how do I want to spend the minutes I have here on Earth? It For Me, a big part of that answer is I want to make some kind of meaningful, positive impact on the world. So I think the biggest risk we all face is selling ourselves short not trying to make the biggest impact we can and not living the life that we know we can live.
Today, my guest is Rick Kalvoda. Rick is the President of the Analytics Branch for the Americas of Altus Group, which is a service provider of intelligence to the global commercial real estate industry. Rick has over 30 years of experience in commercial real estate consulting with a focus on valuation and management. And just a minute we're going to speak with Rick about Data Insights into the Quickly Changing State of the Commercial Real Estate Market. But first, a quick reminder, if you like our show, CRE PN Radio, there are a couple of things you can do to help us out. You can like share and subscribe. And as always, we encourage you to leave a comment. We'd love to hear from our listeners. Also, if you want to see how handsome Our guests are, be sure to check out our YouTube channel. You can find us on YouTube at commercial real estate pro network. And while you're there, please subscribe. With that I want to welcome my guest, Rick Kalvoda. Welcome to CRE PN Radio.
J Darrin Gross
I'd like to ask you, Rick Kalvoda, what is the Biggest Risk?
Yeah, I think. So operating expenses of which, you know, insurance is is a big component, you know, the risk, I think, right now have ownership of commercial real estate. I think right now, and this kind of goes back to the uncertainty and what's going to happen with inflation, what's going to happen with interest rates, what's the Fed going to do is just, it's the uncertainty. And as the Fed continues with that increases, the biggest risk right now is is there, you know, is there a global financial crisis, you know, you starting to see the stress on some of the banks, you're starting to see, as I mentioned, with some of the, you know, blending or the borrower's, you know, handing keys back to the lenders, you're starting to see some of that, at the same time, slowing economic growth, you know, and also increase inflation, all that stress to the economy that if we go into a recession if we continue to have higher interest rates and that that's going to have an impact not just on commercial real estate, but across all asset classes, but then specifically, commercial real estate and especially with, you know, the amount of lending done by the regional banks, which you know, are, over the past couple of weeks have seen this stress is, that's probably the biggest, you know, concern out there is in biggest risk for our investor and for our clients, is just what happens, you know, the overall macroeconomic picture and there's just so many different things impact again, on top of that, you know, back to your comment just on insurance is just with the, you know, you just think of the climate risk and everything that's, you know, happened this year, and, and how that impacts, you know, commercial real estate, whether it's rising, you know, ocean levels, etc, is, all of that has, you know, so our clients, the owners and operators of that commercial real estate, not only have to think about that, but then the macroeconomic you know, side of it as well. So, so a lot of risks now, hence the uncertainty, but that's, we're all here to help the industry out, you know, in times of risks like that,
Today, my guest is Anne Hollander, and is the CEO of Lobby CRE, a Thirty Capital Company. And she is making an impression in CRE and tech as one of few CEOs with a background in both real estate operations and rapidly scaling technology companies. And as an expert in strategic strategic planning. And in just a minute, we're going to speak with Anne Hollander about balancing return and risk with data backed asset management.
J Darrin Gross
I'd like to ask you Anne Hollander, what is the Biggest Risk?
I am happy to take on this challenge. So over the course of our conversation, I think we've talked about a number of areas of risk, right, we're seeing expense growth, quite a bit in the operations, which, frankly, is a lot of ways the silent killer. We've talked to them about the debt side of this and understanding your positions within debt and understanding it a much deeper level where you sit today and what risk you're taking on within the debt that you have either existing today on the on your existing assets, or in the future as you're doing deals. Frankly, you know, when I begin to look at, I think there's also equity risk as well for capital call unexpected capital calls, if the to an asset and debt aren't mitigated particularly well. So opening up new risks potentially on the equity side, and either not being able to return as much as you're expecting, or potentially even being underwater in what those returns look like. The three of these things, though, can all be also, the other uncovered risk, or perhaps the area that we haven't talked about at this point is the fact that a lot of information is being sent around quite a bit very freely and openly within an organization and, and then outside of the walls of the organization that can be highly sensitive or are particularly damaging to organizations. If you think about, okay, when was the last time that I took a look at my models that I had that had all of my investor information in it. And it's all sitting in Excel, Excel can't be secured. We don't necessarily know where it goes, who it's shared with. We don't know how they access things. We don't know if they if somebody is modifying something within that document, sending it back sending it around. And so Excel becomes essentially a game of telephone where everybody's got their hands on it, and hands in it. For the most part, you know, fairly innocuous but not not in a place where we can necessarily even assess what if anything has changed or information has been borrowed or stolen back out of that document as well. I think the one thing that we don't talk about much in the commercial real estate space is the technology risk and the data risks that people run when they're using you know, tools that seem extremely convenient, but then have a complete lack of any level of accountability to them. Excel being probably the number one offender other potential tools also offender as well.