Today, my guest is Dale Wills. Dale is an experienced real estate developer who has been involved in the industry for more than 25 years. He is the owner and founder of Center Companies, and since 2011 he's overseen the development of more than 1500 homes across 50 projects. And in just a minute, we're going to speak with Dale about the investment opportunity in single family homes.
Contact:
Website: https://www.centrapartners.com/
Linkedin: https://www.linkedin.com/in/dalerwills/
J. Darrin Gross
If you're willing, I'd like to ask you, Dale Wills, what is the BIGGEST RISK?
I think there's two parts to this. One on the insurance side is I'm a huge believer in surrounding yourself by the best people, and insurance is huge risk. I'll use an example. In the Midwest, it's almost impossible to get mold coverage. So if I build a house, mold grows, I've got no insurance coverage. Now, I can get a rider, but if I don't have an insurance agent that's a pro that really knows their stuff, I've got massive exposure, because mold risk is one of the biggest risks in the Midwest, and so if you don't have somebody that knows their stuff, you almost might as well not even have an insurance policy, you know. So don't you know? I don't want to disparage agents, but you know, the guy you buy your auto insurance from and your homeowners insurance is not your guy when you start having rentals or you're in big trouble. So that's one thought I had from a risk standpoint.
I think the biggest risk is what you don't. Know, you know what? What do you not know? And that's where I think it's important you have experts around you, because even then, you can get in trouble. You know, where we've done projects and we thought we knew everything, and we tested the soils, and we tested the ground, and we had the best of the best experts, and we started digging, and we find five feet under the ground there was an old abandoned gas station that we should have known about. That's a pretty big risk. And so that's what I worry about it if a friend Keith Cunningham teaches a principle, when you look at any deal, identify what's the best that can happen. And you know, if that's really easy for entrepreneurs to do, we always can see the best that can happen. So we have this long list what's the best, then what's the worst that can happen? And then I we look at that. If there's not a long list of the worst that can happen, we don't do the deal, because there's always a negative to every deal you do. There's always a drawback. And if we're not seeing it, we're missing something. So we need to go back and look. What are we missing? Once we've done that, we say is the worst case scenario? Can I live with that in order to get the best case scenario? And if I can't live with the worst case scenario, we pass on that deal. But I but that still answer. What you don't know if is your biggest risk. For us, that's our biggest risk is the unknowns, and some of it, it's unknowns you can't predict, you know, we talked about the covid. You can't predict that, but you better be ready to be able to shift pretty quickly.
Today, my guest is Joseph Viery. Joseph is the founder of US Tax advisors Group Inc, a publicly traded company, and a firm that works mostly with real estate investors, helping them save hundreds of 1000s and sometimes even millions of dollars on tax and they do that by using cost segregation.
Contact info:
Website: ustagi.com\get-started
Free Estimate: https://ustagi.com/get-started/
Ph: (888) 263-1663
J Darrin Gross
Whatever it is that you identify and consider to be the biggest risk.
Joseph Viery
Politics.
J Darrin Gross
And again, for Yeah, and again for,
Joseph Viery
Sorry, it's really the big one, because, like, I'll give you a real good example. We're talking about there's a concept called bonus depreciation and and bonus back in the tax other than the Trump tax law was, remember, I said I find short life assets, they're they're primarily five, seven and 15 year assets. Any asset under 20 years is subject to bonus depreciation. It was 100% until 22 and then last year, 23 is 80. This year it's 60. Bonus depreciation, I think is completely overrated. Don't forget, we did not have bonus depreciation for my first 12 years of doing cost seg. So I don't consider it's just the timing of the benefits is all bonus means. But bottom line is, Congress passed bonus depreciation extension, and it's been sitting in the Senate since January or February, February, thing since February. So politics is just really one of the things that, you know, I don't have a crystal ball, and that's one risk, Boy, I wish I could buy from you Darrin, an insurance policy against bad mistakes by by politics.
Contact info:
Website: ustagi.com\get-started
Free Estimate: https://ustagi.com/get-started/
Ph: (888) 263-1663
Today, my guest is Michael Tran. Michael Tran is an Associate Vice President at Colliers International, specializing in Multi-tenant Flex Industrial Properties, with over 900 plus real estate transactions over the last decade. And in just a minute we're going to speak with Michael Tran about multi tenant flex industrial properties.
Contact: Michael Tran
https://flexbusinessparks.com/
Social Media X: @michaeltrancre
Instagram: @michaeltrancre
C: 817-501-0024
J Darrin Gross:
I'd like to ask you, Michael Tran, what is the BIGGEST RISK?
Michael Tran:
So BIGGEST RISK, I want to say our team has taken on this stuff is in 2018, we realized, and we felt bad when we would see these trade at $30 below what we could sell certain assets for. And I said, Hey, guys, like, we like this stuff. This is a product we believe in, you know, why don't we work it a little bit harder. And, you know, we started devising a plan back in 2018, to say, hey, this has got to be the next asset we are the forefront of and helping investors with. So that was one big risk, we we really took a step forward. And because we originally were doing 50%, office buildings 50% flat. And so it was good to have both the buyers are kind of the same already. But now they're all really just switching over to this just because it's easier to manage. And so, you know, 2020 heads still popular. 2022 are like, okay, we're making waves in this space. Now, what can we do that might pay off in the long run. And so I'm telling you about working with our research team, which has been a two year project at this point where we're building out the algorithm trying to find the heat maps of where to build these. And helping developers get into the states. A lot of those guys that we have helped. We did this service for free. And like I said, we've done over 40 of these in the last few years and doing you know site plans for them trying to help them figure out how much square footage you can put in there. That has been, you know, one of the ways we've put a lot of time and energy that we never knew we were ever gonna get back into this space as well. And then also our team we wrote a book flexpays domination, to help investors who are also looking to get into this if they don't feel comfortable reaching out to us yet. There's a book you can buy. It's on Amazon He has a 60 day fast action plan as well. And we wrote that book last year, released it a few months ago. And we just need more of these to sell. Just because we feel that, you know, we want to make sure you can capitalize on what you're investing, and make sure you get the most money for what you're building out there. Because we, it genuinely hurts me to see people sell these at below market value. And so, yeah, that's that's how we, that's been the risk on our end is, you know, the book, doing all those evaluations for free. I'm still doing some to this day, which I don't mind I'm just saying it's, it's been a risk that we all kind of took upon ourselves to say, hey, let's help these guys out. Let's actually get some of these some more parks on the ground and make sure that you know, we're helping investors do really well on their asset class that their switch into.
Today, my guest is Bishoy Habib. He's a highly experienced real estate and business attorney with over 12 years of legal practice in Florida and New York. And he has successfully represented prominent Developers Investors and Financial Institutions in more than 1000 transactions totaling $12 billion. And it just a minute we're going to speak with Bishoy Habib about Creative Deal Structuring.
Contact:
instagram:@attorneybishoy
Tiktok: @attorneybishoy
Linkedin: Bishoy M. Habib
Ph: 813-553-2699
J Darrin Gross
I'd like to ask you Bishoy Habib, what is the BIGGEST RISK?
Bishoy Habib
I think risk is a dirty word. And I don't think it should be, because I think that obviously, it has a negative connotation. But I tell my clients all the time, that I deal with business people, right i I like dealing with sophisticated parties like yourself and kind of people who can, you know, are a little bit more aggressive. That's just the nature of business people calculated risk. And that's the name of the game, I always tell them, anything we do is going to be a risk, any investment you make is going to be a risk. Anytime you place money. Anytime you buy a property, anytime you partner with someone, there's going to be risk. How much can you stomach? What's the potential return? What's the potential downside? Right? So I love that you asked that question, because that's a topic that comes up and a conversation that comes up with me and my clients, and then always ask have to ask them how much what risk are you willing to take? How much do you love this deal? If you want me to negotiate it more aggressively, because you don't care, it's less risk to you, but you probably don't get the deal versus the other way around. So risk is something I deal with every day as an all my all my kind of positions, but especially as an attorney. But I'll give you a good, you know, kind of a high level answer. I think the biggest risk is not taking a risk I do I think that the times that I've wanted to do something, whether it's in a personal professional capacity, and I've decided that I don't want to put myself out there or I don't want to, you know, embarrass myself or I don't want to take that risk and lose this money. A lot of times I've kind of regretted that. And so that's those are the lessons that I've learned is like, you know, it just go for it, just do it. And it was the same concept when I opened up my own businesses last year. I mean, it did take me 10 years to get to that point to build up that confidence. But I tell you what, within a month, I knew that that was the right decision. For me it was the best decision I ever made from a career perspective is to open up my own practice as an attorney. It's risk, right? You just got to take that chance. But the people in my opinion, who never succeed are the people who never take that risk and people who never put themselves out there. So, to me, the biggest risk is not taking a risk. I always tell you know, whoever will listen, it's like, you know, you calculate you think about it, but I will feel 100 times better trying and not succeeding and just know okay, well, this wasn't for me, or how do I get better and get to the goal versus just thinking about it in the back of my head like man, should I have done that? I should have done that. Right. So that's the biggest risk to me.
Today, my guest is Travis Watts. Travis is a full time limited partner investor and the director of investor development at Ashcroft Capital. He dedicates his time to educating investors who are looking to be hands off when it comes to real estate investing. And in just a minute, we're going to speak with Travis about mitigating risk and maximizing returns with portfolio wide insurance.
Contact Travis: