Commercial Real Estate Pro Network

if you're willing, I'd like to ask you, Charles. Hansel, what is the BIGGEST RISK?

Charles Hadsell  32:36  

Yeah, sure. Darrin, I think, you know, when I thought about this, I think the biggest risk I think about is technology rescue, you know, even even alluded to it a little a little earlier in our discussion, right of kind of the early generation water bugs having so many like false alerts that it kind of caused the owner to like be dead in because the alerts and now you have a real issue. And now you're, you miss it. So I think technology changes rapidly, you know, and this kind of comes back to my time and some doctor as well, we look at the pace of innovation on putting more electronics into smaller places and asking like these, you know, end nodes of the network to do a lot more you rather than sending it back to some centralized server, you're having decisions made at the very edge of the network. So reliability is like is like very important for these, these these applications. And I think with semiconductor technology, reliability is continually improving. But there's always that risk of a component failing at the wrong time and leading to like a bad outcome. You know, so that's why we kind of like to take the approach of kind of layers of redundancy, you know, like, so for example, like to prevent, like water loss in your basement or in the basement of a building, have a sensor to tell you, if someone left the exterior door open, then have a sensor that tells you it starts to get cold, then a sensor to tell you that there's a water problem, you know, so you have kind of three layers of redundancy there that could kind of prevent, prevent a disaster. So So that's kind of how I think about risk is like a technology is changing rapidly, you need a platform that could adapt to that. So you're not kind of stuck in the stone age's with the platform that's, you know, out of date are no longer relevant. And then also like the kind of I say that the connectivity risk, you know, of a, that power outage happens, what happens to your system, we saw what happened in Texas, you know, a few months ago where all that led to all that damage. So that's why we covered this a couple different places on the show today, you know, cellular i think is the right technology medium for these IoT systems and these rental property and like landlord applications, just because it's up, it's up when everything else is not up. So that's kind of my overall kind of thought of you technology risk is kind of the big one and that's how we really like to wrap your head around minimizing the impact and putting redundancies in place.

Today my guest is Dave Spooner. Dave Spooner is the co founder of Innago, a property management software designed to simplify life for small to mid sized landlords. He's been involved in the real estate technology space since 2013. Working to enhance the way landlords and tenants communicate. And in just a minute, we're going to speak with Dave about property management software and how it can make your life better.

J Darrin Gross

I'd like to ask you, Joseph Woodbury, what is the BIGGEST RISK?

Joseph Woodbury

Yeah, isn't an easy answer. For me. Ironically, I think most people's largest risk is is is in their industry or in their business itself. And, and I certainly think of risks there. But we've kind of talked about the storage industry, it's it's very robust, it's not going anywhere. It doesn't respond to recessions. You know, during the oh eight recession, when most real estate asset classes contracted by 60%, storage grew by 5%. So it's very, like, counter cyclical and recession proof. And so actually, I identify our biggest risk as a company is, is we're influenced not just by the storage industry, but because we're a software technology company, we're influenced by the venture capital industry. And if you look at other large marketplaces that have gone before us, they've raised a lot of capital to get to where they are. Airbnb is a $80 billion company, they just joined the s&p 500. So they are, you know, one of the most important companies in the United States of America. But they raised about $10 billion in capital to get there. You know, Uber raised north of $15 billion, and capital Instacart and DoorDash have both raised I want to say six or seven or $8 billion in capital. So most major marketplaces raised large amounts of capital today, you know, we operate in every city in all 50 states, we've raised a measly, you know, $65 million in capital. So I often ask myself the question, you know, will we be able to raise, you know, those those billions of dollars in capital, like marketplaces that have gone before us to reach the potential that they have, they have reached as mainstay brands in the United States. I think that's, that's the biggest risk. You know, when I, as the CEO, sit down and think it's not the storage piece. Renters love us hosts love us host earning money. renters are saving money, they keep growing, they keep transacting, they keep coming to the platform. It's, it's, you know, we're dependent on this venture capital industry. And it goes through different cycles. It's in a pretty bear cycle right now. And that'll continue to happen and it'll keep going through bear and bull cycles. But will that affect us, you know, years down the road? You know, what we go through some bear cycle that forces us to use other means of funding and that sort of thing?

Today, my guests are Alison Williams and Anna Ramos. Allison is the Senior Vice President and Chief Production Officer at Walker Dunlop. And Anna is a managing director for the West Coast and mountain regions. And in just a minute, we're going to speak with Allison and Anna, about commercial lending strategies for multifamily.

Today, my guest is Mark Khuri. Mark is the co-founder or co-founder SMK Capital Management in 2010. SMK is a boutique private equity real estate investment firm, focusing on recent recession resistant investment opportunities. Mark has created and managed over 65 Real Estate partnerships with investors. And in just a minute, we're going to speak with Mark Khuri about strategies to create a recession resistant real estate portfolio.