Today, my guest is Brian Seidensticker. Brian Seidensticker, he founded Tax Sale Resources, TSR in 2010 and in 2017 Brian partnered with software developer SDA solutions, a comprehensive workflow management system. And in 2020 Brian launched mount North Capital, a 506 C fund, providing capital to tax deed investors. And in just a minute, we're going to speak with Brian Seidensticker about Delinquent Tax Investing.
https://www.taxsaleresources.com/
J Darrin Gross
If you're willing, I'd like to ask you, Brian Seidensticker, what is the BIGGEST RISK?
Brian Seidensticker
I guess, you know, as far as buying tax deeds or the fund itself, it's for you to to, for me to interpret. Well, I think it's, it's from a tax, just tax sale properties, taxes and taxes in general, the biggest risk is the underlying property value, right? That That alone addresses the you know, is this, is this lien going to am I going to be able to make a return on this lien or this deed at the end of the day, or not? And that that is your number one risk? Right is, is assuming that you can, can make sure that your underwriting process addresses that right, and that you can't eliminate it, because things can happen right? I've certainly seen and been and been involved in a property that was purchased and then, for whatever reason, gets demoed, or, you know, has a fire break out, or whatever, what you thought that property value was right is no longer there, right? And so, you know, either your model has to address that loss, right, or you have to, you know, accommodate for that loss in value. And so, you know, for example, tax lien folks try to ensure that okay, the loss in value from things that could happen like that, ultimately, still, you know, if I'm willing to that property less than 5% a lot of things can happen and you're still okay. Right? In the worst case scenario, on the tax deed side, it's not that easy, right? A lot of things can happen, and all of a sudden you thought you're in a great position, and all of a sudden you're upside down. But managing that asset value, underlying asset value, is the number one risk by far.
https://www.taxsaleresources.com/
Today, my guest is Eddie speed. Eddie speed is the founder of Note School, and in just a minute, we're going to speak with Eddie speed about opportunities in private, note investing.
J Darrin Gross
I'd like to ask you. Eddie Speed, what is the BIGGEST RISK?
Eddie Speed
Losing my money and losing my money means that I bought a note and I don't get enough recovery to go pay off my investment and still make a yield. So that could be that that could relate to non performing notes. Performing notes, it does everything down the line. It's like at the end of the day. That is why I like buying first mortgages with a cushion between what the collateral is worth and what I invested in the note. And that's the simplest form to say at the end of the day. That's my safety net, that cushion between what the collateral is worth and what my investment is in that note.
Today, my guest is Sandeep. Patel Sundeep is the CEO and co founder of Avana companies, an asset management and fintech firm that specializes in commercial real estate, private credit, lending and investing. And in just a minute, we're going to speak with Sundip about the impact of return to Office trends on the hospitality industry.
https://www.linkedin.com/in/sundipbpatel/
J Darrin Gross
I'd like to ask you Sundip Patel, what is the BIGGEST RISK?
Sundip Patel
That's a great question. Darrin, by the way, so the biggest risk that I foresee, and in our business, is the underestimating of the impact of AI and to our business and everything we do, from assessing risk, evaluating risk, to, you know, funding that risk, the entire process. So we as a company have taken some bold steps to get ahead, to understand how we can apply AI and what it will mean. As as you remember when we started the conversation, my mission was to create jobs and maintain jobs. I live with that fear today, because you're asking me, what's the biggest risk? This is the risk that keeps me awake in the middle of the night when I think that I'm underestimating the true impact of AI that's coming really fast upon us and the sweeping impact it will have across all businesses, not just mine, but even others. And right now, I'm focused on making sure mine and my employees are upskilled and ready and changing fast so we can do more with less, but at least be ahead.
https://www.linkedin.com/in/sundipbpatel/
Today, my guest is David Blumenfeld. David is the co founder of Next Rivet, a Silicon Valley based consultancy dedicated to assisting traditional physical businesses and leveraging digital technologies. And in just a minute, we're going to speak with David Blumenfeld about how AI is transforming real estate.
J Darrin Gross
I'd like to ask you. David Blumenfeld, what is the BIGGEST RISK?
David Blumenfeld
We're going to answer it a couple different ways, if that's okay. So I think I mean, and this, this first one might, might seem like a self serving answer, but I think the risk for real estate companies in general for not looking at technology. And again, it doesn't have to be the biggest, you know, the biggest, the newest, the the flashiest, but if you're not incorporating technology into your your your day to day operations, whether it be from a marketing perspective, a company, a leasing perspective, Building Management, etc, you are getting left behind and and the good news for you is that the real estate industry moves slow, but as it gets more and more competitive from insert certainly In certain asset classes, office being one of them to not be investing in kind of future proofing your building and your company is going to come back and bite you in the long term and so and both from a just an operational perspective, but also eventually, eventually from a recruiting perspective, where people who are going to you're going to want In your company are not going to want to work. Want to work at your company if you're not forward thinking. From a tech perspective, I think the biggest concern right now, excitement and concern certainly is with AI and things like conversational AI, like chat GPT, we have, we have clients who their legal departments come in and we can't use AI at all. And I think the concern, the practical concern there is, there is a risk of, if you're using kind of a, you know, chat GPT, or Microsoft co pilot, one of these, or Google Gemini, is it, depending on the information you're putting in to have, let's say you're like, I want to put, you know, I use it a lot for writing better copy, maybe of writing a better email than I wrote already, because I realized I'm just not saying that quite right. But you know, there's it's much more powerful than that. You can put in financial data, for example, that would spit back a spreadsheet for you, or different analysis that might you know normally take hours on in Excel. There is risk when you start to upload proprietary information from a financial perspective, but the but you need to kind of balance that risk with what you're what you're using those tools for, because they are very powerful and very efficient as well. So I think it's making sure you don't swing the pendulum one way or the other, like you need to certainly use AI in your business. But I think if you're going to start to do a lot of things through AI, you know, there are ways to protect the information that you're you're putting out there, and you don't have to just throw something in chat GPT. You can have an application that's specific to your company, that leverages AI, but may be able to spit out kind of your your own private version of chat GPT, so to speak. So you just need to be, you just need to understand the implications and the risks of of if you're using kind of a generic service, you know, be, you know, there is a risk that you're putting that data, not it's not necessarily means that those companies are going to use it against you, but you are uploading that information into into the cloud. And I think it's funny, you've seen a lot in America around like, Oh, we're going to ban Tiktok because we're worried about China, you know, stealing all this data. Well, China's come out with a lot of new AI platforms. Lately, nobody's talking about the data privacy implications. Like, I would be much more concerned about using, putting anything in a in a Chinese AI software platform versus, you know, my social media via Tiktok. So it's, it's just funny how people are not thinking about things holistically. And I think that's, that's just what you need to make sure you need to do. But again, as I said in my earlier very common beginning of, you know, the beginning of the conversation, don't get into analysis paralysis, where you justify doing nothing because you have to overthink it over and over again.