J Darrin Gross
I'd like to ask you. Chris Tiessen, what is the BIGGEST RISK?
Christopher Tiessen
The biggest risk, in my mind, is for our industry, that we're seen as a commodity is as seen as somebody that is not necessary between because before they go into the risk of getting mechanical parking and maybe the system not working, I will just, you know, let the whole project go away and not do the project. So that's our biggest risk that all of our companies in this industry are working against, and also that conventional parking is more attractive still than mechanical parking, even though we have so many advantages to it, and it's more of the company behind it to actually manage these risks, and, you know, take on these risks of the uncertainties of our client, and just put them in ease. That mechanical parking is the step to the future. It's only the step to the future. It is always already present here, and that with this, you can open doors to your development that you did not think before. And typically, if we have developers in there, have been using mechanical parking for the first time. They don't go back because it's just opened so many doors for them.
Today, my guest is Ashley Garner. Ashley is a seasoned real estate entrepreneur and founder of ABG and Associates with over 30 years of experience, he combines analytical rigor and hands on property management to consistently deliver strong, cash flowing returns to his investors. And in just a minute, we're going to speak with Ashley Garner about value add, deal making, real world stories and lessons from transforming underperforming properties into profitable, high yield investments.
J Darrin Gross
If you're willing, I'd like to ask you, Ashley Garner, what is the BIGGEST RISK?
Ashley Garner
I think the biggest risk is to be under capitalized and and ultimately, you know, a property can go up in value, or the the P and L can show a profit, but if you don't have enough cash flow to pay the bills or make the repairs that you need to make, or make the improvements you need to make, then you you're in a tight spot, and that puts everything at risk, and that's an avoidable risk to not be under capitalized. But the temptation is so great a lot of times to say, I'm going to just manage this myself and save that money, or I'm going to turn units out of operations. I'm going to use the money from operations to improve units. And then, unfortunately, then a water leak happens, or something happens, and you need to do 10 at once. Well, you don't have enough money to do 10 at once, and now you can't rent them, and you're in trouble and so, but if you've got a nice. Just reserve pile of cash, so to speak. Then you you may not enjoy spending it all right now, but you can, and you can stay online, and you know you can survive. So being without enough capital is 100% in my opinion, the biggest risk. And I know that's not necessarily an insurance thing, but I know you didn't ask for just an insurer. I do. I do have a I do have a physical risk that i is my number one but, but the under capitalization is my biggest risk.
Today, my guest is Kenny Bedwell. Kenny Bedwell is a seasoned real estate investor and entrepreneur known for helping high income professionals identify and acquire short term rental properties that generate strong cash flow. And in just a minute, we're going to speak with Kenny Bedwell about short term rentals versus boutique hotels.
https://www.instagram.com/kenny_bedwell/
https://www.linkedin.com/in/kenneth-bedwell-9680a8113/
J Darrin Gross
I'd like to ask you. Kenny Bedwell, what is the BIGGEST RISK?
Kenny Bedwell
So you know, I the biggest risk. I think that this the answer I was going to give you originally, and I kind of talked about it, so I'll move on from it, but it's regulation. Regulation changes. You're in trouble that is a huge risk to any investment. But the risk that I don't really hear often talked about. In our space is actually safety, guest safety. So I'll give you a stat. This is a real stat by there's a there's a guy Justin Ford, he's a safety expert in a short term rental space, and guests are so people are more, 10 times more likely to have an accident in a short term rental than in a hotel. And so there is an inherent amount of risk with hosting people in a property, especially people on on vacation. 70% of people that go on that stay at short term rentals admitted that they like to, you know, drink when they're on vacation. There's nothing wrong with that, obviously, but like, 70% of people, adults who are going and staying in a property are going to drink it when alcohol is involved. And there's, you know, the that increases the chances and the risk of things happening. And I personally, too, I mean, I could go and do a whole story with you that we could do a whole nother podcast episode on where I've had, I've, I've been in lawsuits before, of short term rentals for slip and falls and other things where people were not being careful. And I swear to this day I would, I would love to get the data and the metrics on this, how low people's IQs drop when they go on vacation, because they drop pretty fast. It's crazy. Some of the questions I get where it's like, yeah, just, you know, turn that on, or press that button that says on, and you're good to go. You know, like, people don't really think critically when they're on vacation. And, I mean, why would you you're kind of putting that, you know, putting everything on pause and taking a break, but that increases risk of accidents actually happening. And so I know, I know, you know, you know, you kind of mentioned, like, oh, about it, you know, it's not about insurance, but for short term rental host, it really is. It is very, very, I'm a testament to this personally, it's very important that you get really good insurance, because that it can save you on a rainy day. And you also need to make sure that you have you work with your insurance company and know, you know, if you need to have extra signage or, you know, the the smoke detectors, carbon monoxide detectors, fire extinguishers, is, are they easily accessible? All of my fire extinguishers are mounted in places that you can visibly see. And I've got multiple I put extra safety things in all of my properties because it's just to protect people, because the likelihood of that happening is so much higher than just a long term rental or someone staying at a hotel. And so all these things are super critical. And you know, the last thing that you want this is really, this happens every single year. It happens. Find out, you know a child drowned in your pool. You know, that's a big lawsuit on your hands, and so it's so important that we have these protections, especially short term rental hosts and hotel owners as well, that that protect us in the event of any of these worst case scenarios happen, because they really do, and we can't, you know, turn a blind eye to that other people happen and say, Oh, that won't happen to me.
https://www.instagram.com/kenny_bedwell/
https://www.linkedin.com/in/kenneth-bedwell-9680a8113/
Today, my guest is Joe. Downs. Joe is a lifelong entrepreneur with business ventures spanning securities, mortgage, hospitality and real estate industries. He co founded the bell Rose group to pursue opportunities within the niche Self Storage sector of commercial real estate, and in just a minute, we're going to speak with Joe downs about pro storage. What is it and why we need it.
https://selfstorageacademy.com/
J Darrin Gross
If you're willing, I'd like to ask you, Joe downs, what is the BIGGEST RISK?
Joe Downs
To me, it's, I'll give you, I'll give you, all right, you just want the biggest I'm gonna go right to base. To me, it's change. It's sort of what I just alluded to, if we were, if, if we still thought, because we weren't out there interviewing and investigating other third party management companies. If we refuse to do all that and just head in the sand, we would probably start falling behind other storage facilities, other competitors, who are managing their facilities better than we are. And the reason for that is because of technology. And I alluded to that earlier, and so that's just a small example, but to me, the biggest reason is AI. The single biggest reason is of change. The biggest change agent is AI. So if we're not, and you might say, What does aI have to do with storage everything? Because AI has AI can infiltrate if you allow it and choose to. And I highly suggest you do every, every part of your business in life, AI can have an impact on positive or negative. So you have to be, not only aware, you have to be in tune. So I I worry about, if you're asked, what keeps me up at night? It's not, we're well insured from an insurance standpoint, right? You know, I think when you're in commercial real estate, there's always that lender risk of a covenant and loan doc somewhere, you know, whatever. But that doesn't keep me up at night. It's because even then you could, you can negotiate, and you got attorneys to work you out of it. To me, it's falling behind the AI curve. And because that will directly impact how we find customers, how we source deals and pro storage, I'm using it not only to source locations for properties better and faster than we can do on our own. I'm we're creating a GPT right now to market to the businesses, the 17,000 businesses in Greenville, South Carolina, that are within 10 miles of our facility, that's, I don't think we've gone vertical yet. The grounds cleared and and I think they're, they're getting ready for pad sites. Maybe they started pouring. I haven't seen an update in last in a week, but we've got to fill that facility. So how are we going to do that before all the small bay flex guys get get the word out that they're putting that they're available to receive your business? Well, we came up with an ingenious way to create a GPT that's a relocator. So a GPT is just anyone can create them. If you learn how to win on chat, GBT, it's GPT is it stands for generative now I freeze when I put myself in the spot. Now I'm freezing generative performance transformer. No pre trained generative, pre trained transformer. So it's really just an engine. It's the greatest employee that you could ever have, right? It doesn't need to sleep, eat, take breaks, anything. It does what you tell it to do, but that's the key. It does what you tell it to do. If you don't tell it to do, it won't do it. So we have created a GPT that we will put out in front of every business market, to all the businesses out there and say, Hey, if you're say, Hey, if you're looking for space, here is a here's a simple tool that's free. Put in your name of your business, where you are, where you'd like to be, square foot, square footage you need for space in the entire Greenville market area. It will then, because we'll program it, go out, go on, crexie, loop, net, loop, net, everything. It'll find all the space that's available that meets the criteria for Darrin gross to move his ABC, XYZ widget business, because he's got 1000 square feet now, and he needs 2000 or he's got 500 or no square feet, and he needs something, right? It'll return those results for you, and included in it will be our facility with all kinds of unit sizes. So there is an example of how we're using AI, not only source the location, but also source the customers that will fill the location, right? So and that if we, if I was asleep at the wheel with AI, wouldn't have any of that, maybe I'd be successful regardless. I don't know. Maybe, if, maybe the if you build it, they will come. Principle would happen. I don't know, but I'm not willing to risk it. I'm not willing to risk it with my investors money. So the to me, it's, I'm I'm harnessing the power of AI. It is absolutely incredible. It keeps me up at night for good reasons. And I told you before the show, because it's like a drug. It literally, you know the saying, If you dream it, you can make it happen, or wherever that cliche is. This is literally, AI literally makes it happen. It's just up to you to program it. So I'm excited about it, even though you asked me what's what's a risk, the risk is not staying up with not learning it, not immersing yourself in AI, because if you don't I know everything, I just said, sounds cool and and proactive, but if I'm not proactive, someone else will be, and they might be, and I don't care what you're doing, what business you're in, someone who's doing what I doing, I'm doing, is going to have a direct effect on your business, probably to the negative if you don't not only get ahead of the curve, but keep up. So to me, that's the biggest risk. It's kind of that standing still and not evolving.
https://selfstorageacademy.com/
Today, my guest is Peter Roisman. Peter Roisman is the CO founding principal, President and CEO of REV, the multifamily leasing company, a Houston based venture established in 2019. Under his leadership, REV has become a trailblazer in multifamily leasing management and training, and in just a minute, we're going to speak with Peter Roisman about leveraging data for improved multifamily leasing results.
https://www.linkedin.com/in/peterroisman/
J Darrin Gross
If you're willing, I'd like to ask you, Peter Roisman, what is the BIGGEST RISK?
Peter Roisman
Well, the biggest risk, in my mind, for besides physical property itself, is the occupancy and and and the rental rates. So if you have an underperforming leasing team. And your occupancy drops into the 80s, you know. And at one point, 15% of the properties in Houston were under 85% you're at risk. That is, that is a high risk, too. So in to flip that, to address that risk, you have to be high performing at leasing, which, which means you're not at risk at all. You're lowering or reducing or removing risk. If you're a stabilized property performing at a high level, leading your sub market, yeah, that that one, you can check off the risk. You can still have storms, you can still have the other things that happen on a property. But if your revenue streams are solid. You You should never have a financial risk that way.
https://www.linkedin.com/in/peterroisman/
Today, my guest is Brent Kesler. Brent Kessler was a chiropractor, and after implementing the money multiplier method, Brent paid off $984,711 in third party debt in 39 months, he became so passionate about how powerful this concept was, he began sharing it with others, and in just a minute, we're going to talk with Brent Kesler about Infinite Banking through the Money Multiplier Method.
https://themoneymultiplier.com/
https://themoneymultiplier.com/brent-kesler