The Real Estate Reality Show
Business & Economics Podcasts
At GowerCrowd, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and opportunities they can invest in. You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype. Real estate investing for passive (accredited) investors is turning messy with vast swathes of loan maturities approaching which is going to send many sponsors into default causing their investors to lose capital. While this is nothing to be celebrated, it will also bring in a period of wealth transfer and opportunistic investments. We’re here to guide you by looking at the harsh realities of real estate investing, examining the risks and the rewards in conversations with some of the world’s top experts so you can make informed decisions. You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn. Each week we add new episodes that provide you with access to the foremost specialists in commercial real estate investing with a focus on discounted distressed real estate and the associated market dynamics. We provide interviews and explainer videos that dive deep into the trends driving today's real estate industry, how the economy impacts returns, how to access and invest in distressed real estate deals, and how to protect your capital by mitigating downside risks. There’s no doubt that it is a very challenging time right now for the average investor. With the impact of COVID still being felt and the era of record low interest rates behind us, commercial real estate is experiencing severe headwinds. This creates financial distress for many CRE owners who did not include contingencies in their original business plans and who now face dramatically increased debt costs, increased construction and maintenance costs due to inflation, and reduced revenues from rents as the economy slows down. Is the commercial real estate world on the cusp of a major correction? Is it 2007 or 1989 all over again? Will passive investors (limited partners) who have invested in syndications (through crowdfunding or otherwise) see losses they had not predicted? How can you access discounted real estate opportunities this time around that were only available to a select few during prior downturns? Let us help you prepare your real estate portfolio no matter what the future holds, whether it be business as usual for real estate investors or a period of wealth transfer where those less prudent during the good times, lose their assets to those who have sat on the sidelines, patiently waiting for a correction. Be among the first to know of discounted investment opportunities as the market cycle plays out by subscribing to the GowerCrowd newsletter at https://gowercrowd.com/subscribe Subscribe to our YouTube channel: https://www.youtube.com/gowercrowd?sub_confirmation=1 Follow Adam on Twitter: https://twitter.com/GowerCrowd Join the conversation on LinkedIn: https://www.linkedin.com/in/gowercrowd/ Follow us on Facebook: https://www.facebook.com/GowerCrowd/ *** IMPORTANT NOTICE: This audio/video content is for informational purposes only and should not be regarded as a recommendation, an offer to sell, or a solicitation of an offer to buy any security. Any investment information contained herein is strictly for educational purposes and GowerCrowd makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. Real estate syndication investment opportunities are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Past performance is not necessarily indicative of future results. GowerCrowd is not a registered broker-dealer, investment adviser or crowdfunding portal. We recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Unless otherwise indicated, all images, content, designs, and recordings © 2023 GowerCrowd. All rights reserved.
Location:
United States
Description:
At GowerCrowd, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and opportunities they can invest in. You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype. Real estate investing for passive (accredited) investors is turning messy with vast swathes of loan maturities approaching which is going to send many sponsors into default causing their investors to lose capital. While this is nothing to be celebrated, it will also bring in a period of wealth transfer and opportunistic investments. We’re here to guide you by looking at the harsh realities of real estate investing, examining the risks and the rewards in conversations with some of the world’s top experts so you can make informed decisions. You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn. Each week we add new episodes that provide you with access to the foremost specialists in commercial real estate investing with a focus on discounted distressed real estate and the associated market dynamics. We provide interviews and explainer videos that dive deep into the trends driving today's real estate industry, how the economy impacts returns, how to access and invest in distressed real estate deals, and how to protect your capital by mitigating downside risks. There’s no doubt that it is a very challenging time right now for the average investor. With the impact of COVID still being felt and the era of record low interest rates behind us, commercial real estate is experiencing severe headwinds. This creates financial distress for many CRE owners who did not include contingencies in their original business plans and who now face dramatically increased debt costs, increased construction and maintenance costs due to inflation, and reduced revenues from rents as the economy slows down. Is the commercial real estate world on the cusp of a major correction? Is it 2007 or 1989 all over again? Will passive investors (limited partners) who have invested in syndications (through crowdfunding or otherwise) see losses they had not predicted? How can you access discounted real estate opportunities this time around that were only available to a select few during prior downturns? Let us help you prepare your real estate portfolio no matter what the future holds, whether it be business as usual for real estate investors or a period of wealth transfer where those less prudent during the good times, lose their assets to those who have sat on the sidelines, patiently waiting for a correction. Be among the first to know of discounted investment opportunities as the market cycle plays out by subscribing to the GowerCrowd newsletter at https://gowercrowd.com/subscribe Subscribe to our YouTube channel: https://www.youtube.com/gowercrowd?sub_confirmation=1 Follow Adam on Twitter: https://twitter.com/GowerCrowd Join the conversation on LinkedIn: https://www.linkedin.com/in/gowercrowd/ Follow us on Facebook: https://www.facebook.com/GowerCrowd/ *** IMPORTANT NOTICE: This audio/video content is for informational purposes only and should not be regarded as a recommendation, an offer to sell, or a solicitation of an offer to buy any security. Any investment information contained herein is strictly for educational purposes and GowerCrowd makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. Real estate syndication investment opportunities are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Past performance is not necessarily indicative of future results. GowerCrowd is not a registered broker-dealer, investment adviser or crowdfunding portal. We recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Unless otherwise indicated, all images, content, designs, and recordings © 2023 GowerCrowd. All rights reserved.
Twitter:
@nreforum
Language:
English
Website:
http://www.nreforum.org/
Episodes
You can't eat IRR!
4/16/2024
Today’s podcast is with Irwin Boris, head of acquisitions and investor relations at Heritage Capital Group, a 3rd generation family office with over $750MM in assets under management, whose Number 1 investment priority is Don’t Lose Money!
Irwin does not believe in basing investment decisions on the IRR but focuses on underwriting investments to prioritize stable, ongoing cash flow while aiming to at least double equity through appreciation during the lifecycle of any deal. Evidence of the prudence of this approach, Irwin says, is seen in the current market where many sponsors and their investors who were chasing high IRRs are now facing serious cash crises and, in the worst cases, complete loss of invested capital.
Heritage Capital Group has an extensive history of investing through multiple economic cycles and multiple asset classes including multifamily, having owned over 7,000 units at one time, office, and today, industrial of which they currently own and manage some 6 million square feet.
Irwin shares his insights into the broader implications of rising interest rates and their impact on the real estate market and he discusses how Heritage’s cautious approach to debt, favoring longer-term fixed debt structures, has helped mitigate the risks associated with macro-economic market volatility.
Wrapping up, Irwin shares his projections for the industrial real estate market as we move into 2024. He provides a nuanced perspective on the opportunities and challenges that lie ahead, offering strategic advice for navigating the complex landscape of commercial real estate investment.
This podcast is an essential listen for those interested in gaining a deeper understanding of industrial real estate investment, market trends, and the strategic considerations crucial for successful real estate ventures in any asset class or during any phase of the economic cycle.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:43:11
A New York City real estate success story
4/9/2024
My podcast guest today is New York City's top investment sales broker, Bob Knakal, a gentleman and scholar, who has sold 2,276 buildings in the city with value of over $21 billion, the most ever for an individual broker in the city’s history and guess what, as soon as we started talking I knew all I wanted to hear today was Bob’s inspirational story so we barely discuss real estate at all.
Instead, you are going to be learning how this charming man built his company, Massey Knakal that he sold for some $100 million despite having gone through hard times when he had to run the business entirely on credit card debt. Bob discusses the secrets to his success; describing how to build strong, cooperative teams that drive profit, what to do when the economy goes sideways on you, how to hire, what to avoid, and how to keep people motivated and driven to succeed.
Though the foundation upon which Bob's journey sits is New York real estate investment sales, and while it is easy to be awed by the scale of this success, his story is not just about numbers; it's a tale of strategic partnerships, the importance of neighborhood specialization, and a firm belief in servant leadership. He shares how a focus on information and relationships catapulted Massey Knakal to the top of NYC's real estate market.
Bob also reflects upon a period of introspection after selling his company and he discusses the challenges and opportunities presented by technological advancements, his late but impactful entry into social media, and how traditional practices like direct mail remain relevant in a digital age.
Join us for an insider's look at the story behind New York City’s most prolific real estate investment sales professional, with beneficial insights for investors or anyone in the field. A must-watch for anyone looking to learn the wisdom served up by one of the real estate industry's true legends.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:44:08
How NOT to raise capital for real estate
4/2/2024
Did you know a staggering 70% of real estate General Partners have less than three years of experience?
So sayeth my guest, Mauricio Rauld, a securities and real estate attorney, expert in syndications and founder of Premier Law Group, while clarifying what lies beneath that statistic. Specifically, and equally astonishing, is that Mauricio has seen syndications with dozens of co-general partners as a way of bypassing securities regulations which prohibit results based compensation for capital raisers.
The guidelines for who can raise capital i.e. sell securities, are pretty clear and it seems that either some sponsors are unfamiliar with the regulations (no defense), don’t understand the regulations, (also no defense), or believe they have figured out ways of circumvent the rules while staying compliant (no excuse!)
Our conversation also looks at how sponsors can raise red flags with their online marketing efforts and how to avoid these pitfalls, as well as what investors should keep in mind before placing investments, particularly with sponsors they have little or no prior experience working with.
This episode is a detailed review of some of the biggest issues facing real estate capital formation and is a must watch for sponsors and investors alike.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:47:06
Opportunity Zone tax incentives for real estate investors
3/26/2024
Today we are continuing our series on the tax benefits of investing in real estate, with a focus on Opportunity Zones with guest Mike McVickar, general counsel at Origin Investments.
Mike has encyclopedic knowledge of Opportunity Zone laws, regulations, and benefits. There wasn't a single question that I could put to him that stumped him. Not that I was trying, of course, but, having spoken to a lot of folk about Opportunity Zones already, I have come to realize that this particular topic does require a very high degree of knowledge and expertise and that is exactly what you’re getting with Mike today.
Don’t worry though, our conversation starts at a high, general overview level and only then dives deep into the nuances of how to benefit investing in Opportunity Zones. Mike shares his insights on how investors can leverage the unique benefits of OZs to not only defer and potentially eliminate capital gains taxes but also make a meaningful impact on distressed communities across the United States.
Born out of the Tax Cuts and Jobs Act of 2017, OZs offer a powerful incentive for investors to channel their capital gains into designated areas, spurring economic growth and revitalization. With over 8,760 zones nationwide, the potential for both financial returns and social good is immense.
Mike breaks down the mechanics of OZ investing, highlighting the flexibility in investment options, from real estate developments to business ventures, and the importance of adhering to substantial local engagement and investment guidelines. He also shares examples of Origin Investments' successful OZ projects, demonstrating the tangible impact these investments can have on communities and investor portfolios alike.
If you are interested in learning more about how Opportunity Zones can help you defer and potentially eliminate capital gains taxes while making a positive difference in communities across the country, this episode is a must-listen. Mike McVickar provides a comprehensive guide to unlocking the potential of OZs and offers valuable insights for investors looking to merge financial gains with social good.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:43:14
A deep dive into 1031 exchanges
3/19/2024
When properly utilized, 1030 exchanges can be an invaluable tool in the savvy real estate investor's arsenal. Joining me today are Amanda Han and Matt MacFarland, husband and wife team at Keystone CPA, who expertly break down the complex web of rules surrounding these tax-deferral strategies.
Our conversation begins with the foundational principles of 1031 exchanges, where Amanda and Matt illustrate how this mechanism allows investors to sidestep immediate tax liabilities, fostering portfolio growth. They compare the process to a game of Monopoly - upgrading from green houses to a red hotel without the tax burden, a concept that's as strategic as it is financially beneficial.
Yet, the devil is in the details, from the stringent monetary and timing requirements to the tactical deployment of depreciation and the nuanced approach to syndication investments, you’re getting some serious details on this important benefit afforded by the tax Code for real estate investors.
You’ll hear about the pivotal role of strategic planning and will be guided through potential pitfalls, learning about common missteps that could jeopardize the tax-deferral benefits.
Whether you're an experienced 1031er or contemplating your first, this episode is a detailed overview, not just about deferring taxes but about amplifying your investment potential through strategic, informed decisions.
Join us as we unravel the complexities of 1031 exchanges and get the tools you need to harness their full potential.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:57:31
The short term rental loophole revealed
3/12/2024
What is the short-term rental loophole and how can investors benefit?
In this, the next in our continuing series on tax benefits for real estate investors, guest Tom Castelli, CPA, partner at Hall CPA, explains the short term rental (STR) loophole and explains in detail how investors can leverage the rule to get advantageous tax treatments.
What makes the STR rule so interesting is the ability to use cost segregation studies to get bonus depreciation creating paper losses that can offset other taxable income. It's a potent strategy that, when wielded correctly, can lead to substantial tax savings but it is not without its nuances, as you might expect, or its complications – all of which are explained in this episode.
For example, record keeping is a consistent theme with these real estate related tax incentives, and Tom underscores the importance of maintaining detailed records to substantiate one's active involvement in property management, a critical defense should the IRS come knocking.
If you are interested in learning more about the potential of STRs and want to learn more about how you can leverage investing in them to reduce you tax burden, this conversation provides a detailed guide. Tom doesn't just present the STR loophole; he offers a blueprint for real estate investors seeking to optimize their passive income using this corner of the Code.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:38:39
Tax Efficient Strategies for the Real Asset Investor
3/5/2024
Today's episode is the next in our series on tax incentives for real estate investors and my guest, Dave Zook of the Real Asset Investor is a true master of the art of minimizing taxes while maximizing passive income streams. His career started investing in multifamily real estate, but he has successfully migrated into other tax efficient asset classes.
You're going to hear from Dave his personal experiences of how high-income earners can develop programs for themselves for investing and living life tax efficiently. Dave describes the specific investments he makes personally and, without making any recommendations (of course) he also provides direct access to resources for how you can research and do the same yourself.
Specifically, Dave talks about the tax and income benefits of investing in multifamily real estate, car-washes, ATM machines, self-storage, gas and oil, and other asset classes you may have never thought about before or imagined were within your reach.
Dave's approach stresses the significance of picking the right types of investments and collaborating with top-notch professionals for managing these investments effectively.
Join me as Dave Zook lays out his blueprint for strategic investment—emphasizing tax smarts, diversifying assets wisely, and the essential practice of teaming up with the industry's best.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:46:05
Examining the tax code's 'Real Estate Professional Status'
2/27/2024
Are you actually maximizing your tax deductions as a real estate investor?
In this episode of our series on how the tax code applies to and benefits real estate investing, we investigate the complexities of Real Estate Professional Status (REPS) with Brandon Hall, a leading CPA specializing in real estate.
Brandon breaks down the intricate details of REPS, offering a comprehensive explanation of its impact on tax deductions, and how it significantly enhances cash flow by allowing professional investors to offset passive income and capital gains with tax 'losses'.
For those unfamiliar with REPS, Brandon begins with a 101 explanation, clarifying that this status is not so easy to qualify because it requires meeting specific IRS criteria, including a 750-hour annual activity requirement and other benchmarks that Brandon discusses. He then dives deeper into the nuances, revealing strategies for documenting and substantiating one's active participation in real estate to meet IRS scrutiny.
Tune into this episode to gain invaluable insights from Brandon Hall on how REPS can bolster investment portfolio profitability for real estate professionals. Whether you are a novice in real estate investing or seeking to refine your tax strategy, understanding how to navigate these complex tax laws could be crucial to optimizing your returns.
This discussion is a must-listen for anyone looking to make informed decisions in their real estate investments, emphasizing the significance of REPS in the broader context of tax planning and investment management.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:51:10
Tax Hacks for Real Estate Investors
2/20/2024
In today’s episode you are getting insights into the world of advanced tax strategies and asset protection for real estate investors with Mark Swedberg of Royal Legal Solutions. Mark shares a wealth of insights, drawing from his company’s unique model that he likens to a "fractionalized family office," providing high-level tax and legal strategies not just for the ultra-wealthy but for anyone earning over $150,000.
You’ll learn about the underutilized potential of private foundations, a strategy often misconceived as only for billionaires. Mark also shows you how setting up a private foundation can offer substantial tax benefits and charitable opportunities, proving it's within reach for many investors.
We also help you better understand the complex landscape of entity structuring, emphasizing the crucial role of LLCs and S Corporations in asset protection and tax minimization. Mark illustrates how these entities can be strategically used to enhance deductions, protect investments from legal threats, and optimize tax efficiency.
We also cover some lesser known and utilized tax strategies like the Augusta Rule, employing short-term rentals for tax advantages, and the concept of paying family members for legitimate business tasks to reduce taxable income. Mark emphasizes the importance of seeking tailored advice and education in navigating these strategies, ensuring they align with individual financial goals and lifestyles.
Tune in to gain Mark Swedberg's expert insights on leveraging legal and tax strategies to bolster your investment portfolio. Whether you're new to real estate or seeking to refine your strategy, understanding these sophisticated tax maneuvers is key to maximizing your returns, making this episode a must-listen for all real estate investors aiming for financial success.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:45:40
The Real Estate Syndication Nightmare
2/13/2024
My guest today is Aleksey Chernobelskiy who is principal at Centrio Capital Partners. Aleksey helps Limited Partners (passive investors in real estate syndications – aka ‘LP’s’) with existing and future investments, writing tips, and advising or providing educational content to help them navigate the current market, as well as make decisions on how to act and what to look for as they consider investment opportunities going forward.
Aleksey is a prolific writer. His background includes having run a $10 billion commercial real estate portfolio and he has a quadruple major, (gasp), from the University of Arizona in finance, mathematics, economics and accounting.
The insights he shares in today’s show are largely based on conversations that he has been having with LP’s who are facing issues with some of the deals that they've invested with and who are seeking guidance. He also offers independent third party counsel on how investors should be thinking about the commercial real estate environment in 2024.
Aleksey and I explore the essential aspects of LP investments, focusing on both the opportunities they present and the pitfalls that uninformed investors might encounter. We discuss how LP’s’ lack of knowledge can lead to avoidable mistakes and heightened risks, plus we talk about capital calls dynamics, managing investment dilution, and making informed decisions during a capital call.
Our conversation today provides invaluable guidance for LP’s looking to successfully make their way through the often complex world of real estate syndication, particularly during a downturn, while also providing a roadmap for comprehending the terms and status of an investments before contributing additional money during a capital call.
Watch this episode to learn from Aleksey Chernobelskiy's extensive experience in LP investments. Learn about his approach to tackling the intricacies associated with these types of investments, his tips on risk management, insights on maintaining an informed perspective throughout your investment journey, and his advice on leveraging knowledge to make sound investment decisions.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:53:27
Boosting cash flow and increasing profits
2/6/2024
Are you maximizing your tax deductions as a real estate investor?
In this episode of our series on how the tax Code applies to and benefits real estate investing, we are doing a deep dive into cost segregation with Yonah Weiss, Business Director at Madison SPECS. Yonah provides an in-depth explanation of how engaging in cost segregation studies can increase cash flow by accelerating depreciation deductions resulting in tax ‘losses’ that can be used to offset passive income and capital gains.
For the uninitiated, Yonah explains cost segregation, an advanced tax deferral method that enhances depreciation deductions that effectively reduce the amount of taxes owed by property owners, in 101 terms and then provides a deep dive into the details, explaining how it can be used to dramatically increase cash flow and profitability.
We talk about the differences between residential and commercial properties in terms of their depreciation schedules (as well as explaining what ‘depreciation schedules’ are) and discuss the specific implications for each. Yonah explains how he and his company actually conducts a cost segregation study and, for what it costs (and I am not being paid to say this!), Yonah’s company engages in some highly skilled and what sounds like laborious and detailed analysis to run their cost segregation studies using engineers and tax professionals to look at assets.
Using case study examples, Yonah discusses how to manage potential longer-term liabilities like ‘depreciation recapture’ when selling a property – something I have always thought of as the defining characteristic of the tax code that, ‘what the IRS giveth, the IRS taketh away.’
We also discuss how the benefits of a cost segregation study can apply to both sponsors and their limited partners (investors) as well as under what circumstances there may be variances in how the benefits are applied across the entire investor cohort.
Tune into this episode to gain valuable insights from Yonah Weiss on employing cost segregation strategies to enhance your investment portfolio's profitability by boosting cash flow and profitability through savvy tax planning. Whether you are new to real estate investing or looking to refine your approach, understanding how to navigate these complex taxation strategies could be key to optimizing your returns and are one of the driving factors that make real estate so important an option for all investors.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:50:18
Real estate investing tax benefits overview
1/30/2024
Are you paying too much in taxes each year?
In today’s episode, the first of a series covering (in detail) the tax benefits of real estate investing , my guest, Chris McCormack, CPA, and I discuss how real estate investors are leaving money on the table by not optimizing their tax strategies and what you can do to avoid paying too much tax.
Chris and I review the main tax benefits of investing in real estate, for both sponsors and passive investors, as well as looking at some of the lesser-known tax saving strategies.
Chris loves reading and understanding the tax code (thankfully, there are people like Chris!) and today you’ll learn about depreciation, cost segregation, and the utilization of 1031 exchanges to defer capital gains taxes. He explains in detail how these strategies can significantly reduce your tax liabilities and increase cash flow.
His insights into leveraging tax laws to benefit from real estate investments make him a valuable resource for investors seeking to maximize their returns through tax-efficient strategies.
Watch this episode to learn Chris McCormack's specialized tax strategies for real estate investors, his approach to dealing with the seemingly never-ending complexities of the tax code, insights on the pivotal role of tax efficiency in investment success, and his perspective on leveraging tax advantages to optimize returns in the real estate space.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:50:10
How to short multifamily real estate
12/19/2023
Digest this stark statistic: a Collateralized Loan (CLO) portfolio with over 300 loans is showing a weighted average debt service coverage ratio of just 0.63. It is basically a disaster and one that my guest today is shorting – heavily.
Gabe Bernarde is co-founder of Viceroy Research and has written a report called “Slumlord Millionaires”, that covers a well-known bridge lender who has been doing a lot of lending to multifamily sponsors. The report reveals an entire portfolio of multifamily loans that appear to be underwater and that are wrapped up in CLOs.
In theory, CLOs are bullet proof because the lender who owns/manages them can swap out poorly performing loans for better performing ones, protecting the integrity of the entire portfolio. It’s a bit like having a fund with apartment buildings in it where the sponsor can swap out sub-performing assets for others to keep the funds’ finances healthy.
What Gabe's research concludes is that this structure is fine until all the loans in a portfolio, or a substantial majority of them, are bad. Then you have nothing good to replace the bad.
I've been researching CLOs ever since I spoke to James Eng of Old Capital for the podcast a few weeks ago. He reported having brokered $2 billion and told me 90% were underwater. Then I spoke to Dan McNamara at Polpo Capital, who is famous for having successfully shorted malls in 2020 who also thought that some CLOs were in dire straits and ripe for shorting.
Look, there are multiple ways to make money in a real estate downturn.
You can buy discounted assets from sponsors who are forced to sell or buy non-performing loans or REO from banks. You can provide rescue capital or set up a debt fund.
Or you can short the stock of real estate companies you think are overvalued and that is exactly what my guest today, Gabe Bernarde at Viceroy Research, is doing.
Learn what he is doing, how he's doing it, what he sees, why he thinks there is a very significant likelihood that multifamily real estate assets are going to hit rock bottom in the next few months, and discover his angle to making money in this market.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:51:18
The value-add multifamily disaster
12/12/2023
Today’s guest, Jeremy Roll, president of the Roll Investment Group, is a seasoned multi-cycle real estate and alternative asset investor who is a voracious reader and analyst of market conditions, what's going on in the market, what's going on in the broader macroeconomic world, and in the industries that he invests in.
I've known Jeremy for a long time, and what you're going to hear from him today are some insights into just how conservative he is in his investment approach, what he has been doing for the last few years and what he has not been doing, where he sees the market going and where he sees opportunities emerging over the next few years.
Jeremy talks about how the market transitioned around 2016, prompting investors to adopt value-add strategies due to soaring property values. He shares why he chose to step back from value-add deals, preferring stabilized, more conservative investments.
You’ll hear why prudent investors exercise caution particularly towards the tail end of economic cycles and why Jeremy believes this is the most perilous time to engage in higher risk/return strategies like value-add – and why he thinks it’s like an aircraft running short on take-off runway, highlighting the risks when market prices are at their peak, and an economic downturn is on the horizon.
Jeremy discusses the challenges he faced finding opportunities during 2021 and 2022, a period dominated by floating-rate, value-add apartment deals and why his unwavering preference for ten-year fixed-rate debt meant walking away from deals others were piling into as they chased high, short-term returns.
You are going to hear insights about the current state of the market, the importance of positive leverage, and why now is the time to wait for sellers to adjust their price expectations.
If you are like Jeremy and me who prioritize protecting invested capital over chasing high risk, higher returns, you’ll find the conversation today makes a lot of sense. And if you are now facing capital calls on deals you’ve invested in, Jeremy’s insights, though too late for this cycle, will help you prepare to make money in the next cycle – and to be better prepared for its ultimate, inevitable downturn.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:43:07
Bad news for commercial real estate financing
12/5/2023
My guest today is Brian Pascus, finance reporter at Commercial Observer. Brian wrote a detailed article comparing CMBS (commercial mortgage backed securities) with collateralized loan obligations (CLO) as ways to finance real estate and so I asked him if he would talk about the differences between these two financial instruments, and what has been the impact on them of interest rate increases and other market forces over the last couple of years.
You’re going to learn about the difference between CLO and CMBS, how both are being hit with significant defaults, and that the market for both has pretty much collapsed, creating a liquidity crisis for CRE.
Brian provides a detailed explanation of both types of finance, explaining their structures, risk profiles, and how they differ in the commercial real estate market. He explains the impact that economic factors, particularly the rise in interest rates, have had on the attractiveness and issuance of these securities and how this has led to changes in borrowing costs and influenced the overall dynamics of the commercial real estate market.
This episode is an advanced discussion about real estate finance where you’re going to gain a thorough understanding of the complexities and challenges associated with these financial products, as well as discovering who invests in CMBS and CLOs, including pension funds and high-net-worth individuals.
Plus, you’ll also learn what is the single most important thing in commercial real estate finance that will bring the market back to some semblance of normality.
This is an important episode for anyone tracking opportunities in the market and who wants a deep dive into how we have got to where we are today, and where we are headed in the coming months.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:33:35
The coming banking crisis
11/28/2023
Today’s guest, Lew Feldman, is a prominent figure in real estate crowdfunding and the founder of Heritage CRETech. Lew shares insights from his time in the world of real estate crowdfunding and his role on major advisory boards, discussing its current state, trends, and future prospects.
Lew begins by examining the challenges and adaptations within the real estate crowdfunding industry, especially under the pressure of rising interest rates. He discusses on the performance of leading platforms like Fundrise, RealtyMogul, and CrowdStreet, highlighting how their business models and investor bases have responded to the fluctuating market conditions. This discussion provides a view of the sector's resilience and adaptability in the face of economic shifts.
Our conversation then pivots to the broader real estate market, exploring the impact of increased interest rates and liquidity issues on financing options and Lew discusses the struggles facing sponsors and investors due to these challenging conditions.
A significant portion of our conversation covers governmental interventions in the real estate industry. Lew elaborates on historical and current government programs, emphasizing their role in supporting and stabilizing the market during downturns. Additionally, he touches on the transformation of crowdfunding entities into broker-dealers, bringing more fiduciary responsibility and transparency to the industry.
Venture capital's influence on real estate crowdfunding is another critical topic Lew addresses. He explores how this type of investment shapes the business strategies of crowdfunding platforms. Moreover, he provides predictions for the future of the sector, considering the ongoing economic and regulatory changes.
Lew also discusses sustainable development initiatives and contrasts publicly traded REITs with private real estate markets, highlighting their differences in liquidity, transparency, and market responses.
Concluding with his predictions for the commercial real estate market in 2024, Lew offers a unique and informed perspective on navigating the complexities of today’s market. This podcast is a must-listen for anyone interested in real estate crowdfunding, market analysis, and strategic investment planning in the real estate space.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:46:24
Getting an Edge in Real Estate Market Chaos
11/21/2023
My guest today is David Moret, founder and president of Highline Real Estate Capital. David brings a wealth of experience and a unique perspective especially in the wake of the Federal Reserve's rate hikes.
His insights are particularly timely as we weave our way through a market that's shifting from its previous exuberance to a phase marked by strategic caution and adaptation.
David discusses the launch of Highline’s Real Estate Fund One, set up as a direct response to the current market dynamics. He talks about the fund's objectives and strategies, emphasizing the need for agility and foresight in today's economic climate, and discusses how the fund is positioning itself to capitalize on market dislocations.
You’ll learn about Highline’s take on the current significant decline in deal flow and transaction volumes and why owners are reluctant to sell at this point in the cycle. David discusses the 'extend and pretend' strategies adopted by banks, a trend that's creating a unique set of challenges and opportunities for investors.
David's approach to sourcing deals is a masterclass in strategic thinking and adaptability. He talks about leveraging a network of brokers, forming strategic partnerships, and using advanced search tools for targeted acquisitions.
In this episode, you'll gain a comprehensive understanding of the current commercial real estate market dynamics. David's expertise offers insights into managing investment portfolios, adapting strategies in a fluctuating economic environment, and the art of identifying and capitalizing on investment opportunities in a market that's constantly evolving. Join us for a deep dive into the world of real estate investment with one of the industry's most astute investors.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:45:50
The Hidden Risks of Real Estate Crowdfunding
11/14/2023
Today’s guest Ian Ippolito, a seasoned investor known for his conservative investment strategies, discusses his take on the real estate market's first significant recession since the advent of real estate crowdfunding.
Ian draws parallels between the initial impact of COVID-19 on multifamily properties and the current challenges facing the office sector. He discusses the office market's decline as a direct result of the remote work revolution leaving a surplus of vacant office space and a swatch of struggling deals, and talks about the impact on multifamily of the end of the rent increase era and the ensuing strain on investment models that failed to anticipate the current trends.
You’ll hear about the importance of taking a conservative investment approach and how fixed vs. floating rate debt and leverage levels measured against value (LTV) are used to protect principal as a priority to the lure of exponential but risky returns.
In light of the recent troubles CrowdStreet has had, Ian talks about the critical role of due diligence for investors even (or especially) when investing via a platform. He reflects on the recent incidents of fraud within the industry, stressing the need for investor vigilance and the responsibility platforms bear in maintaining transparency and integrity.
Offering advice to sponsors, Ian encourages a conservative approach, focusing on long-term survival and stability rather than short-term gains. His message is clear: in a market bracing for a potential massive repricing of assets and grappling with the implications of a high-interest rate environment, prudence is key.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:38:27
Are Office Buildings the Next Big Short?
11/7/2023
My guest today is Dan McNamara, co-founder and chief investment officer at Polpo Capital, who famously and very successfully shorted malls in 2020 and who is now training his sights on the office market.
Dan shares the story of his mall short and how similar strategies are being applied to the office sector. He also talks about the multifamily market's current state, discussing the challenges and potential investment opportunities that he sees in that asset class.
You’ll learn which resources Dan uses to conduct his market analyses, and you’ll hear more about how he and his team underwrite risk, how they use data to do that, and what he’s seeing as the market faces a significant maturity wall of debt.
Dan explains how banks’ common practice these days for ‘extend and pretend’ helps him hedge his investments, and he provides a nuanced view of today’s commercial real estate market dynamics, including the potential for a massive repricing of assets and the implications of a high-interest rate environment on his investment strategies.
In today’s episode of The Real Estate Reality Show, you’re getting a comprehensive understanding of the current commercial real estate market, will learn about the delicate balance required in managing investment portfolios, the timing of short positions, and the strategic maneuvers employed by seasoned investors like Dan to thrive in this challenging economic environment.
****
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:54:02
Capital call best practices for success
10/31/2023
Today’s podcast guest is Nate Trunfio, who is chief revenue officer at Lima One Capital, a bridge lender backed and owned by a REIT, MFA Financial.
Nate talks about the kinds of terms Lima One has been and continues to offer borrowers, he describes the trends in bridge lending he's been seeing over the last three years, and he talks about where he sees the market going through the end of 2024.
Nate also discusses the degree of distress the multifamily market today, where the distress is occurring, and he describes the characteristics of sponsors facing the hardest challenges to get out of this high interest rate environment.
Nate brings a wealth of lending experience and a unique perspective on navigating the current market’s complexities, emphasizing the importance of strategic asset management and realistic underwriting.
You’ll learn how lenders like Lima Capital are mitigating risk, how they are identifying opportunities as the market evolves, and you’ll gain a deeper understanding of the intricacies of commercial real estate market lending during this downturn.
**
In this brand new podcast series at GowerCrowd, The Real Estate Reality Show, we take a realistic view of commercial real estate investing, providing pragmatic insights for passive investors who are looking for sponsors they can trust and distressed opportunities they can invest in.
You’ll find no quick fixes or easy money ideas here, no sales pitches, big egos or hype.
You’ll learn how to build your wealth while protecting your capital investing as a limited partner in commercial real estate investments, even and especially during an economic downturn.
Subscribe to our free newsletter here.
Duration:00:46:01