CRE Clarity

Welcome to the Managing CRE Risk podcast, where we believe that if you can identify, understand, and manage risk, you can take huge leaps in your CRE journey and find more success along the way. Our guest today is Brian Adams, a syndicator, operator, investor, and former attorney. In this episode, we talk about the importance of contractual relationships, how to set clear expectations with your partners, and build strong teams to mitigate your CRE risk. Listening to Brian will change your thinking around contracts, the relationships you have with your partners, and the people you work with on your CRE investments.

Learn more about Brian and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“When we talk about risk, it's not volatility. When I think about risk, I think about the permanent loss of capital.” 

5:23

At the beginning of the conversation, Brian explains what the word risk means to him. He started his career as a lawyer, so he sees “death, disability, and divorce” as the biggest issues that you need to front-run in your personal and business life. That is why he suggests people always have clear contracts when entering a partnership.

The most important things to consider when establishing a partner relationship are the roles and responsibilities. The biggest risk is not establishing a good business plan and losing capital permanently.

Brian recommends having independent third-party counsel representing each partner’s interests in the contract negotiation and not just one general corporate counsel.

“When you go into partnerships, you're working with a human. And people are irrational, unpredictable, and they change.”

22:53

Brian shares his advice on how to adjust the structure if you are in an already established partnership.

• Review your real estate documents and contracts every few years.
• Create a clear plan for the next quarter, year, and 5 years.
• Do regular check-ins with your business partners to see if you’re still aligned on the same goals.
• Be open and transparent about your goals.

“Just hoping for time to solve the issue never works.”

29:57

At the end of the conversation, Brian talks about how to address your business partners if you want to end the partnership.

• In case you don’t have the proper documents or contracts in place, hire a third-party counselor to mitigate the situation.
• Don’t wait for the partnership to change because time won’t solve this issue.

About Our Guest, Brian Adams

Brian C. Adams is the President and Founder of Excelsior Capital, where he spearheads the investor relations and capital markets arms of the firm. He has 10 years of experience in real estate private equity. Prior to forming Excelsior Capital, Brian co-founded Priam Properties (an institutional real estate private equity sponsor) in 2010 and provided leadership and direction for the firm in connection with capital markets, investment management, and investor relations.

Mentioned in the show:

1. www.excelsiorgp.com
2. His LinkedIn
3. Colloquium Podcast
4. Shineinsurance.com
5. www.shineinsurance.com/managing-commercial-real-estate-risk
6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Brian Adams for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

Welcome to the Managing Commercial Real Estate Risk Podcast, where we believe that if you identify, understand, and manage the risk in your journey, you will exponentially increase your profits. Today, we’re talking about how to make good decisions. Jeremy breaks down the process into the “3 Es”, the foundation of every great decision.

Join us and learn more about managing CRE risks and unleashing your profits at shineinsurance.com/managing-commercial-real-estate-risk!

“Your network is your net worth. There are lots of different ways to say it, but the bottom line is that the people around you make your journey scalable.” 

Today, we talk about the “3 Es”, the foundation of every good decision. No matter where you are in your journey, you’re probably already engaging with all these Es on some level.

Our challenge for you is to think about where are you having success and where are you struggling on this 3 E journey. Share your insights with us on our social media pages!

If you haven't built out your 20-year plan, we recommend you do so. Imagine yourself 20 years from now at the Thanksgiving dinner. Who’s sitting around the table? How’s your relationship with those people been over the course of time? If you have a clear 20-year vision then you can work your way back and create solid 10-year, 5-year goals. Try it.

Let’s dig into the foundation of every good decision, the “3 Es”.

1. Education.
   This is the easiest to access and it is entirely based on your capacities. How are you educating yourself on the journey you’re at?
   
   
2. Experience.
   Education alone will never get you to success. Many people are stuck on the education piece and never move on to the second E.
   Take the leap, buy your first property, pull the trigger on a deal, and get some experience.
   
   
3. Entourage.
   Your entourage is 100% how you scale. It is scalable, and this is where success is found on a higher level. Your entourage is the people you put around you. A good exercise is to think about your team members and ask yourself - are they the right people in the right seats? Sometimes, changing up your entourage a little can make a world of a difference.

What do you think of these 3 Es? And where are you on your journey? Share it with us, and see you next Tuesday!

Mentioned in the show:

1. Shineinsurance.com
2. Jeremy’s LinkedIn
3. www.shineinsurance.com/managing-commercial-real-estate-risk
4. The REI Clarity Framework

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• 106: Avoiding Analysis Paralysis
• 107: Inside An $80M Exit, With Veena Jetti
• Rise By Lifting Others, With Nicole Pendergrass

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. We have a returning guest for today who is an absolute beast in the multifamily world, Veena Jetti. In this episode, we talk about how she creates safe deals, finds good property managers, and has an exit plan that mitigates her risk. By the end of this conversation, you’ll gain insight into how to identify, understand, and manage risk and why it is crucial to have a solid exit plan from the very beginning. Join us!

Learn more about Veena and her journey at shineinsurance.com/managing-commercial-real-estate-risk!

“I can make more seemingly aggressive decisions for our portfolio because I know enough about this field.”

03:59

At the beginning of the conversation, Veena explains what the word risk means to her. According to her, without risk, you can’t have reward. However, she considers herself risk-averse and underwrites conservatively for her investors.

Veena is an expert in commercial real estate investing so she can make more aggressive decisions because she thoroughly understands the risks involved. She also has a diverse personal portfolio with IRAs, mutual funds, precious metals, and occasionally tech start-up investments.

Veena’s advice to mitigate the risk in your investing journey is to surround yourself with experts in each field and create a strong team.

“Doing an $80M deal wasn't really fundamentally that different from doing a $20M deal. It actually was a little bit easier, because we had all our scale in one place.”

11:39

Veena is involved in bigger deals with 400-600 door properties. Her first bigger deal was an $80M deal at the beginning of the pandemic. She shares how she mitigated the risks to succeed in this significant deal. 

• Her team walked every unit of the property even during COVID.
• They underwrote the property way more conservatively than usual.
• They increased their reserves to be able to allocate more capital for possible vacancies. 

“Anything can happen the longer you hold an investment. It's always better to get dollars back in your pocket sooner rather than later.”

19:21

Veena explains how a lot of value-adds or forced appreciation comes after the exit. That is why they don’t just look at the cash flow when deciding on exiting a deal. They evaluate the market risk and exit sooner than later if possible.

When planning an exit, Veena looks at all possible outcomes and compares them to each other. The most important is which opportunity is the best for their LP investors.

At the moment, Veena is interested in new dev multifamily, self-storage, and warehouses mostly in Texas, Florida, Georgia, North Carolina, South Carolina, and Arizona.

About Our Guest, Veena Jetti

Veena Jetti (VEE-nuh JEH-tee) is the founding partner of Vive (rhymes with "five") Funds, a unique commercial real estate firm that specializes in curating conservative opportunities for investors. Veena brings a dynamic perspective to targeting, acquiring, managing, and operating assets using best practices combined with cutting-edge technologies. Her professional expertise includes driving corporate strategy and business development opportunities.

After graduating from the University of Illinois at Chicago with a degree in Finance at 20 years old, she pursued her passion for real estate. Veena has over a decade of real estate experience and over $1B+ in real estate assets over her career in both the startup world as well as the corporate world. Because of her diverse background, she is often a panelist and speaker for various podcasts, global conferences, and radio shows.

Mentioned in the show:

1. https://vivefunds.com/
2. info@vivefunds.com
3. Her LinkedIn
4. Shineinsurance.com
5. www.shineinsurance.com/managing-commercial-real-estate-risk
6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Veena Jetti for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• How To Work A 400 Unit Deal, With Veena Jetti
• 103: Should I Wait To Buy Apartments? With Jason Yarusi
• Why A Powerful Vision Matters, With Jasmine Ortiz

Welcome to the Managing CRE Risk Podcast with Jeremy Goodrich. Today, we dig into a topic that comes to the surface right from the beginning when we start thinking about risk - analysis paralysis. We talk about why you shouldn’t have a 100% analysis before making a decision and how to identify all of the most crucial risks.

Join us and learn more about managing CRE risks and unleashing your profits at shineinsurance.com/managing-commercial-real-estate-risk!

“Your thoroughness is going to be better. And at the same time, you will still have high efficiency, because you'll have studied beforehand about how this stuff works.”

Many commercial real estate professionals get into analysis paralysis at one point in their investing journey. Analysis paralysis is the inability to make a decision due to over-thinking a problem.

We all want to identify and understand the risks and truly know how to manage everything fully in our minds before we take any action. The problem with this approach is that if we go too extreme on it, we become too slow and miss out on opportunities. This means really low efficiency and an incredible slowness.

The other side of the spectrum is low thoroughness and high efficiency. Here you maybe only identify 10% of the risk, but you just keep moving forward. However, not identifying the potential risks sometimes means that that step forward might create two steps back.

So how can we avoid losing opportunities because of our slowness or getting into situations that are too risky for us? We have to make sure that our team and our decision-makers understand, identify, and are able to manage the risk.

Practice this method with small decisions first. Many people try to make gut decisions when it comes to real estate investing because they haven’t practiced identifying and managing risks. That can be dangerous.

As you think about your decision-making process right now, where are you on this spectrum? Are you high thoroughness, low efficiency, or low thoroughness, high efficiency? Let us know!

Mentioned in the show:

1. Shineinsurance.com
2. Jeremy’s LinkedIn
3. www.shineinsurance.com/managing-commercial-real-estate-risk
4. The REI Clarity Framework

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• 104: Making Sound Multifamily Decisions
• 100: Introducing Managing Commercial Real Estate Risk
• 101: Creating Good Deals, With Tim Bratz

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we have a seasoned investor with us, Agostino Pintus. Agostino is a multifamily investor, syndicator, and entrepreneur who really figured out how CRE can work best. In this conversation, we talk about how to diversify your portfolio thoughtfully and intentionally, how to make safe investments, and the difference between fear and risk. 

Learn more about Agostino and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“I want to make sure that the deals that my investors and I are getting involved with are good, safe deals.”

04:33

At the beginning of the conversation, Agostino explains what the word risk means to him. According to him, the level of risk people take is rooted in their fear. To eliminate fear, we have to educate ourselves and start with lower-risk deals.

Agostino diversifies his deals to make them overall less risky. His 3 different asset classes have 3 very different types of returns. His assets classes are:

1. Stabilized multifamily properties. They fix up value-add B and C class properties and hold on to them for cash flow. The investors get a quarterly return.
2. Development deals. This is either ground-up or redevelopment. The investors get a quarterly return after the property is leased.
3. Single-tenant Net Lease assets. These are corporately backed by publicly traded companies and therefore safer investments. The investors get a monthly return.

Cash flow is crucial for Agostino when evaluating a deal. Appreciation is just an added value. That is why he invests in Cleveland because it is a good cash-flow market.

“Fear comes from a lack of understanding. When you spend the time understanding what's going on in a market, and you build the right relationships, you can mitigate that.”

23:18

Agostino doesn’t charge an acquisition fee on any of his deals because he wants to be competitive for his investors. His advice is to take a lower acquisition fee to show your investors that you’re motivated throughout the whole deal.

Agostino is mitigating his CRE risk by educating himself, building a strong team, and aligning himself with the right people. That is why he’s able to manage large decisions in a way that might seem bigger than they really are from the inside.

About Our Guest, Agostino Pintus

Agostino Pintus is a multifamily investor, syndicator, and entrepreneur with more than 15 years of experience in real estate. He currently oversees strategic partnerships, capital development, and platform development for Realty Dynamics Equity Partners, an investment firm specializing in multifamily acquisition and asset management services.

Mentioned in the show:

1. www.bulletproofcashflow.com
2. His LinkedIn
3. Bulletproof Cashflow Podcast
4. Shineinsurance.com
5. www.shineinsurance.com/managing-commercial-real-estate-risk
6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Agostino Pintus for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• Mindset And Manifesting REI Success, With Agostino Pintus
• How To Build A Diverse Portfolio, With Jason Mittman
• How To Acquire Multiple $90M Properties A Year, With Dan Handford

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we have a seasoned investor with us, Agostino Pintus. Agostino is a multifamily investor, syndicator, and entrepreneur who really figured out how CRE can work best. In this conversation, we talk about how to diversify your portfolio thoughtfully and intentionally, how to make safe investments, and the difference between fear and risk. 

Learn more about Agostino and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“I want to make sure that the deals that my investors and I are getting involved with are good, safe deals.”

04:33

At the beginning of the conversation, Agostino explains what the word risk means to him. According to him, the level of risk people take is rooted in their fear. To eliminate fear, we have to educate ourselves and start with lower-risk deals.

Agostino diversifies his deals to make them overall less risky. His 3 different asset classes have 3 very different types of returns. His assets classes are:

1. Stabilized multifamily properties. They fix up value-add B and C class properties and hold on to them for cash flow. The investors get a quarterly return.
2. Development deals. This is either ground-up or redevelopment. The investors get a quarterly return after the property is leased.
3. Single-tenant Net Lease assets. These are corporately backed by publicly traded companies and therefore safer investments. The investors get a monthly return.

Cash flow is crucial for Agostino when evaluating a deal. Appreciation is just an added value. That is why he invests in Cleveland because it is a good cash-flow market.

“Fear comes from a lack of understanding. When you spend the time understanding what's going on in a market, and you build the right relationships, you can mitigate that.”

23:18

Agostino doesn’t charge an acquisition fee on any of his deals because he wants to be competitive for his investors. His advice is to take a lower acquisition fee to show your investors that you’re motivated throughout the whole deal.

Agostino is mitigating his CRE risk by educating himself, building a strong team, and aligning himself with the right people. That is why he’s able to manage large decisions in a way that might seem bigger than they really are from the inside.

About Our Guest, Agostino Pintus

Agostino Pintus is a multifamily investor, syndicator, and entrepreneur with more than 15 years of experience in real estate. He currently oversees strategic partnerships, capital development, and platform development for Realty Dynamics Equity Partners, an investment firm specializing in multifamily acquisition and asset management services.

Mentioned in the show:

1. www.bulletproofcashflow.com
2. His LinkedIn
3. Bulletproof Cashflow Podcast
4. Shineinsurance.com
5. www.shineinsurance.com/managing-commercial-real-estate-risk
6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Agostino Pintus for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• Mindset And Manifesting REI Success, With Agostino Pintus
• How To Build A Diverse Portfolio, With Jason Mittman
• How To Acquire Multiple $90M Properties A Year, With Dan Handford

Welcome to the Managing CRE Risk Podcast with Jeremy Goodrich. Today we dig even deeper into understanding the risk in commercial real estate. Jeremy shares some examples and practical advice about how to recognize the risk and successfully manage it.

Join us and learn more about managing CRE risks and unleashing your profits at shineinsurance.com/managing-commercial-real-estate-risk!

“How do you understand the risk, learn to manage it, and then pull the trigger on the decisions that you're making?”

Earlier this week we talked with Jason Yarusi about investing in apartment complexes. Even though this asset class is pretty tight right now, there are still many opportunities to invest successfully. Jason’s advice was to step outside of the box and find underperforming properties.

When you expand your perspective and look into underperforming properties, you may find something that you hadn't considered before. It may even be that the property is actually in really good shape. But you have to be more creative, underwrite more clearly, and do your due diligence in an exponentially more profound way. 

Your perspective on what makes a good deal should be based on clear underwriting, a clear philosophy on what you believe is profitable, and some historical experience associated with that idea.

So this week, we invite you to deeply think about your underwriting process. What are you doing to change your approach and expand your idea of what works? Are there ways to expand even more? Let us know what you found!

And don’t forget to join us next Tuesday when we chat with a returning guest, Agostino Pintus, an investor in Cleveland. Agostino does development and stabilized deals in multifamily, and triple net deals through a fund. We guarantee that you’ll love that episode!

Mentioned in the show:

1. Shineinsurance.com
2. Jeremy’s LinkedIn
3. www.shineinsurance.com/managing-commercial-real-estate-risk
4. The REI Clarity Framework

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• 102: Two Steps To Every Big Decision
• 100: Introducing Managing Commercial Real Estate Risk
• Mindset And Manifesting REI Success, With Agostino Pintus

Welcome to the Managing CRE Risk podcast, where we believe that if you can identify, understand, and manage the risk, you can take huge leaps in your CRE journey and find more success along the way. 

Our guest today is Jason Yarusi, a real estate syndicator and investor with over 1100 units in the Midwest. In this conversation, we discuss how to identify risks on the operation side and how to be an exceptional manager. We also talk about where the market is heading and if it’s a good idea to acquire at the moment.

Learn more about Jason and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“We need about 15 million homes for the decade between 2020 and 2030 but at this pace, we’ll only build about 11 million. So we have a way to go.”

04:36

At the beginning of our conversation, Jason shares the biggest risks in the current market.

According to him, on one hand, the market has high prices, so many investors are afraid that they could fall off soon. On the other hand, we still have a tight supply so the prices will probably stay high for a while.

Jason is still acquiring new units. He usually looks at 75-150 unit properties but in recent years he’s become more opportunistic and sometimes considers smaller deals.  

“You have to be open to pivot and just really constantly assess where you stand.“

14:06

Jason has more than 1100 doors, so he’s dealing with asset management a lot. He explains that the biggest risk to success in asset management is not tracking your processes. 

He has regular calls with his management groups and constantly reevaluates the management plans to make them more successful. It’s crucial to have strong values and shared direction across all the management teams.

Jason’s advice on how to make good investment decisions in this market is to either know the community or know someone who knows the community in the area you’re investing in. It’s very important for him to make the community a better place by making thoughtful renovations and bringing money back to the neighborhood.

About Our Guest, Jason Yarusi

Jason is the founder of Yarusi Holdings with his wife Pili. They have over

acquired over 1110 multifamily units since 2017. He is an avid ultra

runner and workout enthusiast. Hosts The Multifamily Live

Podcast. W  akes up daily at 4:32 am. Is an Aspiring Ukulele Player.

And most importantly Father of three amazing kids and husband.

Mentioned in the show:

1. https://www.yarusiholdings.com/website
2. Jason’s LinkedIn
3. Shineinsurance.com
4. www.shineinsurance.com/managing-commercial-real-estate-risk
5. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Jason Yarusi for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

If you enjoyed this episode, then you’ll love these ones:

• 101: Creating Good Deals, With Tim Bratz
• The Future Of Commercial Real Estate, With Shannon Robnett
• The 3 Principles Of Successful Investing, With Clint Coons

Welcome to the Managing CRE Risk Podcast with Jeremy Goodrich. In today’s solo episode, we talk about the importance of understanding risk and learning how to manage it. Jeremy shares a story about managing risk, we discuss ways to truly understand the risk in your CRE business, and we even have a little exercise for you at the end.

Join us and learn more about managing CRE risks and unleashing your profits at shineinsurance.com/managing-commercial-real-estate-risk!

At the beginning of the episode, Jeremy shares a childhood holiday story about a friend who didn’t realize the risk of a suspiciously cheap sunscreen. The story shows how we need to be able to see and understand the risk in every aspect of our lives in order to manage it effectively.

If you are a commercial real estate investor then you come across many risks in your business that you need to recognize and understand.

Understanding the risk is usually the hardest part. However, there are no new problems in the world anymore. Everything has been a problem before and anything worth solving has already been solved. 

Once you understand the risk, you have to manage it. Managing the risk is not always easy either, but it's always doable.

Our challenge for you today is to take the biggest issue you’re dealing with and ask yourself if you truly understand what the problem is and what’s the risk of failure or success in this situation. 

Write down what you do or don't understand and what actions you're going to take to understand the problem better. Then think about the next steps you can take to manage this issue.

Mentioned in the show:

1. Shineinsurance.com
2. Jeremy’s LinkedIn
3. www.shineinsurance.com/managing-commercial-real-estate-risk
4. The REI Clarity Framework

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the CRE Insurance Guy?

More great stories & information at:

Youtube – Blog – Podcast

Welcome to the first interview episode of the Managing Commercial Real Estate Risk podcast. Today, our great guest is Tim Bratz, a real estate investor and coach. In this episode, we dig deep into Tim’s investing strategy and how he manages risks. We talk about seller financing, how to navigate the current state of the market, and preparing for the biggest CRE risks.

Join us and elevate your investing game!

Learn more about Tim and his journey at shineinsurance.com/managing-commercial-real-estate-risk!

“You don't go to the gym and start benching 300 pounds right away, you have to work your way up.”

05:30

Tim got interested in real estate investing in college around 2007. He moved to Charleston, South Carolina and started investing in residential real estate soon after graduating. In 2012, he bought his first apartment building.

Currently, Tim has around 4000 doors and coaches other investors on how to succeed in real estate.

“Anybody can play with the numbers and make a deal look good on paper. You got to do your own due diligence.”

11:36

According to Tim, the biggest risk in the current market is the short-term mindset. Many investors are not disciplined enough and force a deal to happen.

Here are ways to mitigate this risk:

• Stress test all the numbers during your underwriting.
• Don’t use flat taxes and be conservative.
• Run the rental comps and the expenses.

In the current sellers’ market, many people buy high. Tim shares his advice on how to succeed in this environment.

• If you don’t have a big portfolio built up and you don’t know many brokers in your area yet, then go off-market. Reach out to sellers directly.
• Find hairier deals in B or C class properties.
• Look around in secondary markets. 

“The seller is an investor, right? And they're already comfortable with their asset and the location.” 

28:25

At the end of our conversation, Tim talks about how he sets up a deal to make it work for the seller by using seller financing. He asks the seller for an additional 20% on top of what he gets from the lender and essentially makes them the investor. This way he reduces the cost and unlike in syndication, he doesn’t give away almost any of the equity.

About Our Guest, Tim Bratz

Tim began his career in the competitive New York City real estate market working as a broker leasing ground floor retail units. Here, he saw the true potential of real estate to transform lives. Although Tim was limited in means, he spent his time reading, attending workshops, and networking with accomplished entrepreneurs learning that being resourceful was the ultimate path to becoming successful.

With this knowledge, Tim embarked on building his real estate company in Charleston, South Carolina, where he had relocated in search of a better quality of life. Arriving in 2008, after the real estate bubble burst, Tim quickly adapted and using a credit card, increased his limit and then wrote himself a balance transfer check to acquire the cheapest property he could find. Armed with his personal investment and plenty of sweat equity, Tim transformed a rundown duplex and turned a profit on his first deal. He then took those proceeds and reinvested them, while seeking private capital to expand his growing company. Today, Tim still uses this formula for success, which all starts with being resourceful and having the right mindset.

Mentioned in the show:

1. commercialempire.com
2. legacywealthholdings.com
3. Tim’s LinkedIn
4. Shineinsurance.com
5. www.shineinsurance.com/managing-commercial-real-estate-risk
6. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we'll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Tim Bratz for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Today, we have a huge surprise for you! The REI Clarity show is transforming into the Managing Commercial Real Estate Risk podcast. We’re shifting our focus to managing CRE risk and learning how to take bigger risks successfully.

Join us on this new journey!

Learn more about managing CRE risks and unleashing your profits at shineinsurance.com/managing-commercial-real-estate-risk!

“Being able to take risks is the key to success, we have to take risks.”

Over the course of the last two years, we interviewed some of the best real estate investors out there and gained information on how to take the leap from part-time investing to full-time investing. Outside of the podcast, as an insurance advisor, Jeremy is also talking with hundreds of clients about the hardships they’re facing in their work.

During that time, we’ve heard a recurring theme throughout every conversation - RISK.

Understanding risk is the key to unleashing the profits of a commercial real estate deal and ultimately creating a successful commercial real estate portfolio. We want to pivot this show to speak directly to that. We're saying goodbye to the name, REI Clarity, and moving on to the Managing Commercial Real Estate Risk podcast.

Jeremy’s going to be interviewing asset managers and seasoned investors, asking them specifically about the risks they take and how they find success while managing and mitigating those risks.

We’re super excited about this shift as we feel like it moves us closer to where our knowledge base is, where our understanding is, and where we can provide true insight for you. 

We want to help you to elevate your game and unleash your profits by managing the risks you take. 

Can't wait to go on this journey with you. It's going to be an exciting one! We'll see you in the next episode.

Mentioned in the show:

1. Shineinsurance.com
2. www.shineinsurance.com/managing-commercial-real-estate-risk
3. The REI Clarity Framework

Learn how to manage the risk and unleash your profits the right way! Visit us here for everything you need to know: shineinsurance.com/managing-commercial-real-estate-risk. 

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While you there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Let’s dig into passive real estate investing! Our guest is Matt Picheny, a real estate investor with thousands of doors and author of the best-selling book: Backstage Guide to Real Estate. In this episode, we talk about what to look out for in a sponsor, how to find the right market, and how to evaluate a good deal.

If you want to be a passive investor and learn more about underwriting, then we guarantee that this episode will help you!

Learn more about Matt and his journey at reiclarity.com!

“You should invest in things that you know and love.”

03:03

Matt is an investor with a huge portfolio. He’s passively invested in about 6000 doors and an active investor in 2300. According to him, real estate is relatively low risk with a potential of high reward. The key to mitigating the risk is to properly underwrite the property.

Matt believes that people should invest in things that they know. He was an actor for 5 years so he also invests in Broadway. 

“Never put more than 5% of your net worth into any single deal.”

14:08

Matt wrote a book called Backstage Guide to Real Estate where he shares his tips and tricks on passively investing in real estate.

He explains the 3 key aspects of a deal that should be evaluated and underwritten.

1. The sponsor 
2. 1. Look into the sponsor’s track record in real estate and business in general. If this is your first passive investing deal, then choose an experienced sponsor.
   2. Learn about the exit strategies. If there’s only one, that can be a potential red flag.
   3. Be aware of the sponsor's involvement in the deal. You want them to be involved in the deal and not just raise money. 

1. The market
   Location is key when it comes to a good deal. Find different submarkets within an area. Look for data about employment history, population growth, educational demographics, and household income in the 10, 5, and 1-mile radius of the property.
   
   
   1. Exit cap rate. Look for a higher cap rate when you’re buying the property and a lower exit cap rate. A little shift in that cap rate can greatly affect the valuation of the property.
   2. Projected rent growth.
   3. Projected insurance.
   4. Projected taxes.
2. The deal itself
   The main things to look out for in the deal:

Mentioned in the show:

1. www.picheny.com
2. Matt Picheny - Backstage Guide to Real Estate
3. His LinkedIn
4. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Matt Picheny for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Today we’re talking with an investor who is at the top of his game. Our guest is Ryan Webster, the founder of Equity Yield Group, which has $250M in assets under management. In this episode, we talk about how to transition from the development side to managing existing properties, the key fundamentals of finding a good deal, and how institutional money works.

If you’re looking to acquire stabilized assets and grow your portfolio significantly, then tune in to our conversation! 

Learn more about Ryan and his journey at reiclarity.com!

“There's a lot of inherent execution risk and market cyclical risk on the development side and I wanted to mitigate that.”

02:31

Ryan started on the construction side of real estate and had a construction development company. Over the years, he moved around within the industry and finally landed on the acquisition of stabilized assets.

Ryan talks about the difference between being on the development side and being an asset manager. Development has a significantly higher risk factor but it can have a better return. Stabilized assets are more predictable and reliable with a smaller potential return. The tax benefits are better with stabilized assets. 

“I think it's important to focus on the fundamentals of business and real estate investing and not just buying things because cap rates are compressing and the market is going crazy right now.”

8:52

Ryan’s company is acquiring 100+ doors in the large multifamily space. He finds investors through syndication and his investors range from retail to institutional investors.

Ryan shares his key fundamentals when looking for a deal:

• Stable population growth.
• Diverse and growing job market.
• Areas with not a lot of land to avoid new development.

“Real estate is a great asset class - it's always been a very low-risk stable investment and one of the greatest wealth builders over time that comes with maximum tax benefits.”

21:06

Ryan talks about the exit piece in his business plan. He always plans a 5-year hold with his properties. The actual exit is determined by the market conditions and asset performance. 

A long-term hold is not always possible with institutional investors as they usually have some control over the exit terms.

Mentioned in the show:

1. https://equityyieldgroup.com/
2. His LinkedIn
3. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Ryan Webster for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Our guest is Tim Vest, a multifamily investor with over 100 doors and the founder of Harvest Properties Group. In this episode, we talk about Tim’s investing journey, how to build your multifamily portfolio, and different strategies to succeed in the industry. If you’re planning to take the leap from single-family to multifamily investing, then this episode is a must for you!

Learn more about Tim Vest and his journey at reiclarity.com!

“I saw the power of real estate and the effect it had on my money, and that just got me going.”

02:26

Tim was always entrepreneurial. After graduating college, he started working in the tech industry. Soon, he got interested in real estate investing and jumped into land development around 2006. Ever since, real estate investing has been Tim’s wealth strategy. 

Tim is doing angel and crypto investing, but real estate is his primary source of income. For him, it’s the safest investment because it builds cash flow today but can also create generational wealth.

“There's a million ways to get a deal done. And in every one of those scenarios, there's a way to participate.“

13:19

Tim is still working in a tech company but he’s planning to leave this W2 job in a few months. Even though he makes a good income, he rarely uses his own capital for his deals. 

He‘s involved in syndications and JV deals. According to him, there are many ways someone can participate in a deal. Sometimes it’s bringing the money, but sometimes it’s finding the deal or bringing sweat equity.

“I'm not saying capital is not important but right now there's a huge premium on good deals.”

21:59

Tim is in the multifamily space. He talks about his experience with the industry in recent years. According to him, the focus has shifted from finding the capital to finding the deal. 

Tim’s advice on how to find good deals:

• Have a good relationship with smaller brokers.
• Don’t get into deals where the seller asks for hard earnest money. However, if the deal makes sense, build in a 30-day period or more before the deposit goes hard.
• Build a good relationship with your service team, like your property managers, insurance advisor, and accountants, as they can help you with your next deals.
• Underwrite deals very conservatively.

Mentioned in the show:

1. https://harvestpg.com/
2. His LinkedIn
3. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Tim Vest for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Our guest is Curtis May, wealth advisor and the owner of Practical Wealth Advisors LLC. Today, we continue the financial advice from last week and dig into personal finance. We talk about how to build smart financial foundations, the 5 pieces of a good financial plan, and the rules of successful investing.

Join us and elevate your personal finances!

Learn more about Curtis May and his journey at reiclarity.com!

“The financial plan precedes the business plan or the investment plan.”

03:08

Curtis was always entrepreneurial. After reading Rich Dad, Poor Dad, he got very interested in finance and became a wealth advisor about 10 years ago.

Curtis is helping people understand the difference between the accumulation of money and the velocity of money. According to him, many people accumulate funds through 401(k)s, IRAs, or mutual funds that only make a little return on investment. The risks are that there are too many moving parts, like a fluctuating market, government regulations, taxes, and depreciation. Curtis’s advice is to invest in real estate and create velocity.

“You can't get homeowners insurance if your house is on fire, right? You can't set up a corporation trying to move your stuff around. You have to do it while you don't have anything going on.”

14:52

Curtis shares the 5 principles of personal finance to create velocity and eventually financial freedom.

1. Savings. Have safe, liquid, accessible, and guaranteed funds, generally around 15-20% of your gross income.
2. Maximum protection. Use insurance, LLCs, and estate planning to protect your assets.
3. Legacy of wisdom and wealth. Have a well-planned life insurance plan to protect your legacy. 
4. Liquidity. Have 3 months of income available on your bank account to be able to access it quickly.
5. Velocity. Plan out different investment strategies to create more cash flow.

You can grow all these different areas at the same time. One strategy that Curtis is teaching is infinite banking.

“Banking principles drive strategy and strategy drives tactics.”

30:35

Curtis talks about the 3 rules of investing.

1. Invest in your number one asset, yourself. Work on your expertise, your mindset, and your skillset.
2. Invest in something you can influence the outcome of and that will cash flow. Entrepreneurs solve problems for others.
3. Don’t chase returns.

Mentioned in the show:

1. practicalwealthadvisors.com
2. The Practical Wealth Show
3. Text “Be the bank” to 55444 to subscribe to the Practical Wealth Advisors newsletter
4. His LinkedIn
5. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Curtis May for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Let’s talk about cash flow today. Our guest is Chris Miles, cashflow expert, “anti-financial advisor”, and the founder of Money Ripples. In our conversation, we talk about how to analyze investments, the relationship between cash flow and appreciation, and how to make sure that cash flow is king - as we all know.

Whether you’re an active or a passive investor, this episode will help you assess your cash flow better.

Learn more about Chris and his journey at reiclarity.com!

“The next thing I know, I went from a millionaire to an upside-down millionaire in 2008. I actually ended up being over a million dollars in debt.”

03:29

Chris started his career as a financial advisor, but he learned that the traditional way of advising people about their finances just didn't make sense for him. So he pivoted to real estate investing in 2006. 

Soon, Chris became a very successful investor. His strategy was appreciation play so he acquired many higher-priced properties, waiting for them to appreciate. However, during the 2008 financial crisis, he lost almost all his investments and ended up being over a million dollars in debt. This taught him a lot of lessons. The two most important were to not count solely on the appreciation of a property and to track his money.

“One of the worst things I did was locking up my equity in my house when I could have kept that money in cash reserves.”

13:26

Chris started a company that provides financial advice, Money Ripples, in 2012, using the lessons he has learned during his real estate career. He shares a few tips on how to create more cash flow.

• Get your money out of “prison”. Get out of the equity of your home, the stock market, and especially 401(k)s and IRAs.
• Invest in real estate, as that is one of the safest true assets that not only give you great tax breaks but massive cash flow as well.
• Be diversified to a degree, but make sure you’re still able to manage your investments. Don’t be overly diversified.

Chris talks about unconventional ways to invest. One of these is investing in life insurance. If the whole life policy is set up correctly, it not only has the common death benefit but also acts as a kind of bank account. It generates around 3-5% interest, it’s not getting taxed, and you can borrow from it.

Chris’ advice is to have a limited amount of equity in your properties and use that cash instead to purchase more and grow your asset base. Low-risk equity is better than high-risk cash flow.

“Don't make one-year, two-year, three-year goals. Just focus on the next step, that's all you need to know.”

31:36

At the end of the episode, Chris picks an action step from the REI Clarity Framework that is the most valuable to him. This is “Forecast Your Future”.

According to Chirs, the biggest problem people have is that they don’t really understand where they’re going in life. You have to be clear about the direction you’re headed so you can always plan the next step.

Mentioned in the show:

1. https://moneyripples.com/
2. The Chris Miles Money Show
3. His LinkedIn
4. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Chris Miles for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Our guest is Jacob Vanderslice, a real estate developer and investor with a diverse portfolio. In this conversation, we dive deep into succeeding in closing. We talk about the different ways to fund your deals, the benefits of self-storage investing, and what it's like to connect with institutional investors. Don’t miss out on this episode!

Learn more about Jacob and his journey at reiclarity.com!

“We're not seeing appraisal misses on the self-storage front.”

05:17

At the beginning of our conversation, Jacob explains the basics of a commercial real estate transaction and the closing process that he follows. 

• Underwriting.
• Submitting the letter of intent to the seller.
• Executing the contract.
• Depositing the earnest money (typically between $50k to $500k).
• Due diligence and ordering a variety of third-party reports about the property.

The appraisal is a very important part of the closing process. An appraisal is designed for lenders to get third-party validation on the value of the property. 

“We think the definition of wealth is durable, recurring revenue that gives you an above-market yield.”

11:22

Jacob has a very diverse portfolio and a big part of it is self-storage. According to him, self-storage has historically been very resistant to recessions and downturns and the revenue stream is very granular and dynamic. His company got into this asset class in 2015 and has only sold 1 out of their 35 self-storage facilities due to the steady cash flow.

“Raising capital is all about creating credibility. You’re not pitching or asking for money, you're educating someone on the asset class.” 

22:10

Jacob explains the difference between a syndication and a fund. Syndication is getting into one single deal, while funds are investing in a collection of assets. Syndications tend to be a bit more flexible.

Jacob likes the fund system and he has self-storage funds. Their first fund was just $10M and their most recent one was around $40M. This is a small amount compared to when institutional investors are involved, as those funds can be around $300M.

Mentioned in the show:

1. https://www.vanwestpartners.com/
2. His LinkedIn
3. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Jacob Vanderslice for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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Our guest is Shannon Robnett, a real estate developer and syndicator with over 35 years of experience. In this episode, we talk about the future of commercial real estate. Shannon shares his investing journey, how to adjust to changes in the industry, and why tokenization might be the next big thing in REI. 

Start 2022 right and plan out your next steps with the help of this conversation!

Learn more about Shannon and his journey at reiclarity.com!

“Solving your own problem is a very very smart thing to do because you need to be able to take care of that instance when something doesn't go right.”

03:26

Shannon is a fourth-generation realtor. For a while, he didn’t want to work in the industry, but after college, he realized how lucrative real estate was. In his 35-year real estate journey, Shannon has done construction projects, worked as a developer and multifamily asset manager, and invested in many deals.

Over the years, Shannon learned the importance of understanding every part of real estate investing, the benefit of building a team, and paying people more for the additional value.

“Tokenization creates a liquidity in that marketplace that I think the world is really craving.”

12:28

Shannon has invested in the Boise, Idaho market for most of his career. In 2020, Boise was noted as the least affordable market in North America. This made Shannon change his strategy and he’s now venturing out to other states and more industrial types of deals.

Shannon is building a tokenization platform for real estate which is utilizing blockchain technology. Tokenizing real estate has many advantages including increased efficiency, liquidity, and diversification.

“You can call it “forecasting your future” but I call it building your processes that keep you out of trouble.”

36:50

At the end of the episode, Shannon picks an action step from the REI Clarity Framework that is the most valuable to him. This is “Forecast Your Future”.

According to Shannon, the more systems and processes you have in place to take out the variables, the better you can forecast your future. Focus on building solid processes and follow them step by step.

Mentioned in the show:

1. shannonrobnett.com
2. https://www.myverticalequity.com/
3. His LinkedIn
4. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Shannon Robnett for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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More great stories & information at:

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Our guest is Susanne Mariga, a CPA, tax coach, chartered global management accountant and certified Profit First accountant. Today, we dive deep into entrepreneurship and the processes that you have to employ around keeping your money. Susanne gives us a clinic on how to keep your money with a method called “Profit First”, how much money you should spend on owners’ pay, and why you need to create the “illusion of scarcity” in your business.

Learn more about Susanne and her journey at reiclarity.com!

“Profit has to be intentional, the bottom lines have to be engineered before you even start your business.”

03:47

Susanne started working in her father’s CPA firm as a bookkeeper at age 14. She fell in love with the financial world and went on to become a certified public accountant and Profit First accountant.

Susanne shares the Profit First method that she uses in her business and coaches other business owners. Profit First is a cash management system, not an accounting system. It's designed to force intentional profitability and intentional owners’ pay.

How the Profit First method works:

1. As humans, the more we have, the more resources we’re going to use. That is why profit has to be intentional and accounted for in the business. The first step is to figure out how much money you want to make and then re-engineer your strategy backward.
2. You have to create the “illusion of scarcity” by creating different bank accounts inside the business. These bank accounts are for the revenue, profit, owners’ pay, tax obligation, and operating expenses.
3. Only use the operating expenses bank account for your expenses to avoid overspending.

For a healthy small company with under $250k revenue, around 70% of the revenue should go to owners’ pay and 30% for operating expenses. By the time the company reaches about $10M revenue, only 35% should go towards the owner.

“Minority business owners, even the ones that make 6-7 figures in gross revenue oftentimes do not even take home $100k.”

24:31

Susanne is very passionate about helping minority entrepreneurs succeed in their businesses. She recently wrote a book to help and educate them called Profit First for Minority Business Enterprises.

Susanne wants to empower business owners not only in the US but worldwide. That is why $1 for every book that is sold is going towards a scholarship for sending girls to school in Zimbabwe. Within the first 30 days of launching her book, she funded 22 scholarships.

“The reality is that growth only happens intentionally.”

41:27

At the end of the episode, Susanne picks an action step from the REI Clarity Framework that is the most valuable to her. This is “Find the Money”.

According to Susanne, finding the money for investing starts with your purpose. Define what winning looks like for you and what your end goal is. Then work backward and budget for the things that are important for you. 

Mentioned in the show:

1. https://susannemariga.com/
2. Susanne Mariga - Profit First for Minority Business Enterprises
3. Profit First Masterclass
4. Her LinkedIn
5. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Susanne Mariga for taking the time to share so many great insights with us

If you enjoyed this podcast, there’s a couple of things we need you to do right now: 

•   SUBSCRIBE to REI Clarity on Apple Podcast, Spotify, or wherever you listen to podcasts 
•   While your there, please RATE & REVIEW the show 
•   SHARE with friends
•   Finally, please, JOIN the REI Clarity Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

Need the REI Insurance Guy?

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Our guest is Josh McCallen, a capital syndicator, hospitality investor, and conference speaker. We had a great conversation with Josh last year and now he’s returning with even more wisdom. In this episode, we dig deep into hospitality. We learn about how to build the foundation of your REI strategy so you can succeed through hard times, taking care of people in your business while staying profitable, and thinking outside the box when it comes to real estate investing.

Learn more about Josh and his journey at reiclarity.com!

“Here's the deal - none of us caused COVID but we all had to make a choice how to deal with it.”

03:01

Josh and his wife, Melanie, purchased Renault Winery and Resort with a group of investors at the end of 2018. In our last conversation with Josh, we talked about the struggles of COVID in hospitality and how they planned to overcome them. Now, around a year later, they made it through the pandemic successfully and their resort is fully booked until 2023. 

Josh made many profitable changes in his resorts during the pandemic. By the end of 2020, they made $2M additional revenue and they continue to grow.

“We try very hard to build good teams, that's pretty much my calling in life is to build teams.”

15:45

Josh talks about his investment strategy around Renault. At the end of 2018, their plan was to modestly update the property and sell 100 weddings a year. However, in their first year, they sold 250 weddings. This prompted them to update the property even more.

Renault has around 350 investors. They raised $20M+ in the last 2-3 years. Josh and his team are still taking on new investors for their projects.

“The fact that we are not perfect creatures is not the reason why we should quit trying to seek the good.”

31:25

Josh describes the Why behind his business. He wants to revive the souls of their properties, team, and guests.

The 3 virtues that Josh lives by and runs Renault.

1. Joy. Josh only employs people who are passionate about hospitality and find joy in giving back.
2. Humility. This means seeking humility in every work situation.
3. Ministry. Doing simple tasks for a spiritual reason and making people feel loved.

Mentioned in the show:

1. http://accountableequity.com/
2. https://www.renaultwinery.com/
3. Capital Hacking Podcast
4. https://www.vivamee.com/
5. His LinkedIn 
6. www.shineinsurance.com/reiclarity

Learn how to grow your portfolio and reach incredible success the right way! Visit us here for everything you need to know: www.shineinsurance.com/reiclarity. 

Special thanks to Josh McCallen for taking the time to share so many great insights with us

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Until the next time, We truly appreciate you listening.

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