Commercial Real Estate Pro Network Commercial Real Estate Pro Network

J Darrin Gross
I'd like to ask you, Dan, Brisse, What is the Biggest Risk?
 
Dan Brisse 
Yeah, I would say that there's a couple boats the the one biggest one is get your debt right. In this market, particularly if your debts wrong, they can blow up the deal, and you can lose the entire deal lose all investors equity. So I'd say that that right now is the most important piece if you're looking for the one biggest risk.
 

Today, my guest is Doug McKnight. Doug has over 30 years of experience in capital markets. He specializes in maximizing portfolio performance while maintaining balanced risk versus yield relationships. And in just a minute, we're going to speak with Doug about the future of the commercial real estate market in 2023.

 J Darrin Gross
I'd like to ask you, Doug McKnight. What is the Biggest Risk?
 
Doug McKnight  
Well, you know, when I think of risks, just in general, I think of what I said earlier, I think of what is my mission? What is my purpose? What's the end game?  And then I try to measure the risk that's involved in achieving that.
 
 

Today, my guest is Jay Conner.  Jay is a proven real estate investment leader and is known as the “Private Money Authority”, without using his own money or credit, Jay maximizes private money to buy and sell properties, with profits averaging $71,000 per deal. And in just a minute, we're gonna speak with Jay about how to find and access private money to grow your real estate portfolio.

J Darrin Gross
I'd like to ask you, Jay Conner, what is the biggest risk?
 
Jay Conner  
So let me get a little clarification on that there. And so are you asking what's the biggest risk from the standpoint of the borrower or real estate investor? Or what's the biggest risk from the standpoint and perspective of the lender, the private lender?
 
J Darrin Gross  
There's no no framing of this. It's how you choose to frame it.
 
Jay Conner  
Well, so I'll quickly I'll quickly answer both. All right. So what's the biggest risk for you, the real estate investor, that you're borrowing money? Well, one big risk is you better know what the real value of that property is? How are you determining what the value of the property is? Well, in my case, I've been doing business with the same realtor since 2004. My realtor tells me the after repaired value of my property, so you've got to have a firm grip, and and credible way of establishing wants to value the property number two, what's the risk? You need to know? What's the maximum that you should pay for a property all cash? What's the maximum you should pay? I mean, what is your formula? Right? You know, so you need to know. And of course, I got the formula. What is the maximum you should pay for a property? What's the third risk? Who's on your team? Who is on your team? Like, I still don't do this business by myself? My team. I mean, I'm like the orchestra director. Right. So who's on my team? Well, I can't do this business without my realtor and a relationship there. I for sure can't do this business without my real estate attorney. I mean, my business is that big risk, if I don't have a good real estate attorney, I've been doing business with the same real estate attorney firm since 2003. I get my title searches in less than 24 business hours, you know, speed, you can't make money in this business and you know, in slow motion, right? So I gotta get my inform, I gotta get my title searches quickly. Thirdly, if I'm in doing rehabs, who's who's on my team, as far as my general contractors, who's getting the job done. So my biggest risk, your biggest risk is number one, who's on your team number, and the team member is gonna give you the value. And number two, you got to have the knowledge on what's the maximum that you should be offering on a property, those are the risks for you, the real estate investor and borrower. Now let's talk about the risk for the private lenders, right? Number one, the private lender, better know what kind of loan to value they're loaning on that property. Right? You got a property that's worth $300,000. But they better not be loaning $300,000 on that after repaired value. That's why we give them we're only borrowing 75% of the after repaired value. Number two, what kind of security and again, are they really getting a deed of trust or mortgage, it's recorded on public record. I mean, I'm a private lender, I don't care who my relationship is, whether I'm not borrowing unsecured funds, I want my funds secured by the mortgage or the deed of trust. Thirdly, as the borrower I want and I require to be put on the insurance policy as the mortgagee. And guess what, as the as the as the lender loaning money out. If there's a claim against a house, I want my name on that insurance check. Along with the owner of that property, as the mortgagee, I want them to have the right to sign off on that check. Before who I loaned the money to get set check, I want to be named as the lender on the title policy, I want to be protected. And here is my final word on that. And that is depending on my relationship with the borrower, I may require as the lender a personal guarantee. Okay, so you know, when I loan money out, depending on my relationship with the borrower, I may or may not require them to sign a personal guarantee. Again, that's going to come down to how well you know that person and you know, in this world of private money, I don't care how many safe

Today, my guest is Dr. Pranay Parikh. He's a medical doctor serial entrepreneur and a podcast host. His unconventional journey to medicine helped him learn the skills to excel in entrepreneurship and real estate. Over the past 16 months, he's bought over 200 million in real estate and helped hundreds of others invest in real estate without being a landlord. And in just a minute we're going to speak with Pranay about time management, real estate and entrepreneurship.