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
J Darrin Gross
And so if you're willing, I'd like to ask you. Brent Kesler, what is the biggest risk?
Brent Kessler
Yeah, well, let me answer it a couple different ways on there. But so as far as a risk, okay, as far as in our business, and what we do when you have this type of policy, I tell people all the time, there is no risk at all, because nobody's ever lost money in a whole life insurance policy. But then I stop, and I say, wait a minute, there is one risk. The risk is you, the risk is you the client and how you use the policy. So you're the only one that can screw this up. You are the only one that can screw this up. The insurance company is not going to screw it up. So who do you know better than you. So you're the risk factor now, as far as a risk also when I because, again, I invest in in properties. I have short term rentals, long term rentals, Airbnbs, vrbos. I have raw land. And I do a lot of private lending in the real estate world. I lend to individuals for houses, even to cars. And I also lend into big property developments and to big communities, to real estate developers where I'm providing a portion of their financing to build these big developments, like we got one right now going in Covington, Georgia, another one in Fort Collins, Colorado, where these are big housing projects, right? Well, look, I've been doing this quite a long time, and I've learned a lot as I've gone through this, and the one thing I've done to really lower the risk, because anytime you invest money, you invest money, you are assuming some sort of a risk, okay? So that's why the insurance policy that I talk about is not, is, is just not an investment, because you can't lose money. See an investment, it can go up or it could go down, right? So there's a risk involved. But I would say to avoid risk, that's your greatest at right, just as far as, especially as far as in the real estate world, is to be in first position in everything that you do, be in first position. How do I know that? Well, I've been in second position. Did it always work out? No, as a matter of fact, and I guess if I would have known you were going to ask me this question, I would have wore this shirt that I have, and it says, if you're not first, you're last. That's what my T shirt says. If you're not first, you're last. So I protect myself by being in first position. And I want the collateral on any money that I'm loaning. I want that collateral to be, I want that collateral to be at least equal to, if not greater than, the loan amount that I'm actually loaning. Now I might have to spend some time and energy going out and chasing down and trying to get that or get the collateral, which is going to be a pain in the butt, but you would much rather have the collateral than not have it. One more thing I want to point out from my own personal experience. A couple years ago, we experienced hurricane Ian. Part of my portfolio of rental property is in Captiva Island, Florida, North Captiva Florida. I own a property. If you go out and you take a look at it, just for a rental it's called Captiva Beach, sunset.com beautiful property sits right on the Gulf of Mexico, and it sleeps 18 people. It's all short term rental. It gets about 350,000 a year in the annual rental. I pay back in 21 I paid 1,760,000 for the property. I'm about to sell it. I'm about to sell it for a very discounted rate, because I'm selling it to my son, who is a property manager, and he's buying it for $2.4 million in January, he's getting a great discounted rate, even though I paid one, seven, selling it for two, four, I did okay. Got all the rental income on top of that when Hurricane Ian came through. So I had insurance on the property. It didn't flood, but it had wind damage. And let me just tell you, if you live in Florida, you guys know you probably don't even want to buy flood insurance because it's so expensive. And if it and it does, and it's a lot of limitations of what it covers, but I had wind insurance on that property. It took me a while, but I almost got a million dollars on my insurance claim from the damage on that property. Now, a lot of people think, Wow, a million dollars. You got a million dollars from the property. Well, that property was shut down for about two years, which means it couldn't be rented. I had to do all the renovations. Had to pay for that, had to pay for that all out of pocket, because it took a while for the insurance company to pay on that property. So did I really make money? No, I didn't make money. I did okay, but I didn't make money because I lost all that rental income. But, but I but, but, but I do think my lucky stars that I had insurance on that property, because if not, I would have taken all of that hit.
https://themoneymultiplier.com/
https://themoneymultiplier.com/brent-kesler
Today, my guest is Travis Watts. Travis is a multifamily apartment investor, public speaker and the Director of Investor Development at Ashcroft Capital. And in just a minute, we're going to speak with Travis Watts about Lessons Learned Through the Market Cycle 2022 to 2025.
https://www.linkedin.com/in/traviswatts1234
J Darrin Gross
I'd like to ask you. Travis Watts, What is the BIGGEST RISK?
Travis Watts
I would say, in 25 we talked a lot about market and rates and the discounts, and you know why we're bullish, or why I'm bullish on multifamily, I would say it's more than ever. It's the operator that you're about to invest with. Okay, do they have a lot of distress on their books? Are they losing properties currently? Are they not? Not that any single answer to that is like a red flag and rule them out. But you want to dive a little deeper and make sure that they're dedicated to staying in this business. Because what we've seen is a lot of these student deals and programs and things, folks that got involved in 21 and 22 doing their very first deals are some of them are walking away from the business. You know, they gave it a few years. They're not making money. They're leaving it behind to do something else, and they're for selling properties or they're foreclosing. So you just want to be, you know, up on your due diligence with is this operator going to going to survive this storm, and do they have the dedication to stay in the sector, you know, for the next 510, years, whatever the business plan is for the deal you're looking at.
Today, my guest is Danielle Ash. Danielle Ash is a partner in the real estate group and co chair of the ground leases practice as well as the impact practice at Adler & Stachenfeld, a law firm based in New York that is solely focused on real estate. And in just a minute, we're going to speak with Danielle Ash about Demystifying the Reality of Affordable Housing Returns and Risk Profiles.
https://adstach.com/attorneys/danielleash/
J Darrin Gross
I'd like to ask you. Danielle Ash, what is the BIGGEST RISK?
Danielle Ash
Well, I'm going to give a self serving answer, and then I'm going to give more of an investor based type answer. So the self serving answer, I think, is, you know, people come to me from all different sectors of real estate and at all different parts of their career, from early stage developers, sponsors to, you know, super high net worth sovereign wealth funds, who've been investing for 50 plus years. And I do think one of the biggest mistakes or risks that people face is not having good counsel involved in their transactions, having transactional counsel who has the combination of wanting to explain the risk to you and able to do it in a way that you understand, and also not getting in the way of the transaction Just to look smart or kind of win the point. You know, there's a balance of trying to identify risk and be creative about how do we structure around that risk? How do we get you the protections you need? How do we think about all the different ways that bad things could happen and you need to address? And how do you help your investors? Protect your investors in the long run through those but at the same time, what good is it if you can't close the deal right and knowing the difference between what risk is worth cutting the deal over and what risk is something that you can find a mitigation for? So that's on the self serving side, because you know, all the time I see attorneys who aren't really doing that extra work, or where clients come to me and they they've done a deal, and they didn't see this issue before, and now they're facing it, and they need real explanation as to, like, why we have to think about it on the investor side, I will say that, you know, just thinking about policy for a second. Now, there's been a lot of change in policy at the federal level, at state levels, everywhere right now, it's a bit of a crazy time for trying to follow what's happening. And while there has been a lot of great gains for, you know, the Low Income Housing Tax Credit for changes in that policy, I do think that, and I'm borrowing this from one of my clients, Sharif Mitchell, at Northern Liberties, that the risk of a lot of those policies is actually on the populations being served by affordable housing. And we don't always think about those sort of tertiary elements. We don't always think about the fact that, you know, they still have to put food on the table, that they have to figure out how they're going to get you know their children to school, you know that they have to commute. All those costs come into play, and what we've seen over the last few years with a lot of affordable housing, especially coming out of covid, is you have a lot of high arrears issues coming up, because tenants have to choose, do I pay my rent, or do I feed my kids? And when you have policies that make those potential decisions harder, or where they're losing potential benefits, you know, in some states, it's very hard to get your tenants out for non payment, and so a lot of them are going to take the risk that, you know, maybe I'm just going to feed my kids instead. And so I do think that's something important to think about. That when you're putting together a capital stack, you're looking at the population, you're figuring out, how are you going to serve that population, how you're going to work with those people to ensure that they have the capacity, they have the other resources they need to stay in that housing is that really is going to impact the value of your asset in the long term as well?
https://adstach.com/attorneys/danielleash/
Today, my guest is Mark Goldfinger. Mark Goldfinger is the General Manager Head of North America at Mindspace, a global flexible workspace provider that redefines the workplace experience for companies of all sizes, and in just a minute, we're going to speak with Mark Goldfinger about flexible workspace solutions.
https://www.linkedin.com/in/mark-b-goldfinger-mba-7aa73928/
J Darrin Gross
I'd like to ask you, Mark Goldfinger, what is the BIGGEST RISK?
Mark Goldfinger
I think it's great question. I think in the co working ecosystem, or in the flexible office space, you know, ecosystem, I think one of the biggest risks is landlords starting to take on the opportunity to create their own turnkey sublet solutions for smaller companies, and kind of take business from us. Now, I don't think that they're able to really run the hospitality arm that we are, because that's not their business, and we put a lot of pride into that. But I think that's definitely one thing we look at. I think the other thing is really looking at, you know, do people continue to believe in human interaction and being back in the office environment with people, and I think as long as they are willing to agree that that is really valuable, then I think we can continue to run and drive this business and agree that the sky is the limit.
https://www.linkedin.com/in/mark-b-goldfinger-mba-7aa73928/