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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: Page 1
Sep 29, 2020

 I'd like to ask you, Glen Mather, what is the BIGGEST RISK?

 

Glen Mather  39:19  

is this? Are you asking us for my clients and self directing?

 

J Darrin Gross  39:23  

Yep, I'm gonna let you define it for you to kind of, however the BIGGEST RISK, you see, what would you see that is, if it's a client's that's, that's great.

 

Glen Mather  39:33  

I think when you go well, with any kind of investment, you kind of have two choices. You can invest based on the recommendation of others, or you can invest based on your own knowledge. And certainly, maybe alongside recommendations for others where you can actually do your own due diligence on the process. That's what self direction is all about. And if you just get tagged if you're just coming along and doing an alt with a recommend from somebody else, that you don't really know the basis of it, then you might as well be in the stock market. It's no different. I think the the risks, the risks are no greater or less, it's when what you're doing is you're mitigating some of those risks, as you said, or lessening some of those risks through your own knowledge. And, you know, I've certainly heard that Warren Buffett say several times about he won't invest in any business he doesn't understand and I take that to heart is I don't invest in anything and I get some pretty creative things that are thrown at me. And I just recall something if I can tell a brief story, there's a new freeway that's going around Orlando, on the on the west side of Orlando, and it's it just completed almost all of its stops. And, but when you when you build a ring around the city, you generally go through wilderness, right? There's nothing there yet. The freeway effect which we learned in LA right, which is you put a freeway houses are going to come When you own the land around interchange, it's valuable beyond belief, right? So I had I invested in something like this similar that worked out and then the guy told me, he said, I got another interchange, I go great. Bring it in and show it to me. You know, and by the way, it's only for me, it's not for my clients, I don't share it with my clients. And he talked about how he has a land option is going through this company and then you taking that you're splitting the depreciation off and you're moving it to a third company. And then there's a developer who gets 15% of the back end load. My head was about to split. You talk about being the slow guy in the room I was I couldn't get it and I I stopped it after about 30 minutes of trying to sketch it out on a pad and I said I can't invest in it. You guys got a phenomenal track record. All I'd be doing is throwing you money and I trusting you and I don't want to do that I promised I'm not going to do that my with my IRA and or my any over my retirement. So that's been my mantra, the less I know, the more I'll go to partnering until I know, without a lot of money, so, so my risk is mitigated by the fact that generally on my investments until I get to an educated state, is that I'm in it with you. If and if I'm in it with you, Darrin, I suggest that you're probably pretty interested in your money and your segment, you're going to make sure it's as good as your education. So that's kind of as close as I get to risk is, I may look at a deal. I'll educate as much as I can, and then I'll go in at 20% with Darrin. And if Darrin is screwed me is screwed himself 80% you know, and you're not going to do that. So I think it's a pretty fair and easy way to learn and to reduce the risk. But make no mistake, it's on you. No one else is making these selections. It's on you. So that's where the risk lies. And and I don't think that you should be somebody anyone should be scared. Do it with their retirement plan and be Cavalier enough to shove it to somebody else and say go manage it for me. We're in it's stunning because I talk to well educated people. And they're very quick to wave off and say, I don't know anything about investing. I make 600,000 a year but I don't know about investing. So I have my buddy take care of it. I just like it.  It shocks me.

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