Passive Income Pilots

Welcome back to another exciting episode of Passive Income Pilots! This week, Tait and Ryan talk with Jules Sneddon and Trevor Moss from the National Real Estate Insurance Group to explore everything you need to know about insuring your real estate investments. From protecting against storm damage to navigating the rising insurance costs in high-risk areas like Florida, Jules and Trevor break down the essentials. They share expert tips on choosing the right coverage, avoiding common pitfalls, and how to vet a reliable insurance carrier.

Jules Sneddon is the Executive Vice President of Sales and Marketing at National Real Estate Insurance Group, with over 32 years of experience in the insurance industry. She is also a licensed real estate agent and soon-to-be broker. Jules is known for her expertise in helping real estate investors navigate complex insurance needs, ensuring they have the right portfolio coverage.

Trevor Moss, the Director of Program Sales with 3.5 years at NREIG, is dedicated to ensuring investors are fully protected and educated about their insurance options.

🤝 Meet us in person on November 11th in Atlanta, GA. Space is limited, so be sure to RSVP: https://bit.ly/PassiveIncomePilotsATL112024.

Show notes:

(0:00) Intro

(5:20) Why flood insurance is crucial in storm-prone areas

(7:33) Impact of hurricanes on the insurance industry

(10:28) How to vet a reliable insurance carrier

(13:21) Red flags in property insurance policies

(17:19) What is the National Real Estate Insurance Group?

(19:35) Pros and cons of umbrella policies

(26:30) Evaluating risk vs. reward in Florida property insurance

(33:36) Choosing a higher deductible for a lower insurance cost

(36:55) Up and coming in the real estate industry

(41:10) Importance of documenting contents in rental properties

(43:45) Business interruption and loss of rents insurance explained

(46:31) Unusual claims and lessons learned

(50:41) How to contact National Real Estate Insurance Group

(51:22) Outro

Check A.M. Best for insurance company ratings: https://web.ambest.com/home

Connect with Jules and Trevor:

Visit the NREIG website today: http://affiliate.nreig.com/PassiveIncomePilots

Phone: 888-741-8454

Email: [email protected] (Trevor Moss)



—

You've found the number one resource for financial education for aviators! Please consider leaving a rating and sharing this podcast with your colleagues in the aviation community, as it can serve as a valuable resource for all those involved in the industry.

Remember to subscribe for more insights at PassiveIncomePilots.com! https://passiveincomepilots.com/

Join our growing community on Facebook: https://www.facebook.com/groups/passivepilots

Check us out on Instagram @PassiveIncomePilots: https://www.instagram.com/passiveincomepilots/

Follow us on X @IncomePilots: https://twitter.com/IncomePilots

Get our updates on LinkedIn: https://www.linkedin.com/company/passive-income-pilots/

Have questions or want to discuss this episode? Contact us at [email protected]

See you on the next one!

*Legal Disclaimer*

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions.

Today on Passive Income Pilots, Tait and Ryan dive into the concept of "yield on cost," highlighting its importance in evaluating investment returns. They provide a comprehensive guide on interpreting yield on cost numbers to help listeners make informed investment decisions. The episode covers common pitfalls during the lease-up period and offers strategies to mitigate risks and protect investments. Additionally, Tait and Ryan tackle the stigma surrounding development deals, debunking misconceptions and emphasizing the lucrative opportunities these projects can offer. Enjoy the show!

Timestamped Show Notes

(00:00) Intro

(01:44) Understanding the risk spectrum in investments

(03:14) What is yield on cost and why it matters

(09:57) How to interpret yield on cost numbers effectively

(12:28) Two ways investors can lose money during a lease-up period

(14:59) Key factors in evaluating investment deals

(16:28) The stigma around development deals and addressing misconceptions

(19:56) Outro

Related Episode

#15 - Why Commercial Real Estate Trumps Residential

---You've found the number one resource for financial education for aviators! Please consider leaving a rating and sharing this podcast with your colleagues in the aviation community, as it can serve as a valuable resource for all those involved in the industry.

Remember to subscribe for more insights at PassiveIncomePilots.com!

Join our growing community on Facebook

Check us out on Instagram @PassiveIncomePilots

Follow us on X @IncomePilots

Get our updates on LinkedIn

Have questions or want to discuss this episode? Contact us at [email protected] See you on the next one!

Legal Disclaimer

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as amended. Listeners are responsible for their own investment decisions and are encouraged to seek professional advice before investing.

On this episode of Passive Income Pilots, Tait and Ryan interview Trevor Flor, a seasoned real estate professional with extensive experience in residential and commercial transactions. A UC Santa Barbara graduate, Trevor founded his own brokerage firm and expanded into commercial real estate. With a background in underwriting over $1.5 billion in medical-related real estate and participating in over $200 million in transactions, Trevor's analytical skills are unmatched. A former Navy F-18 Super Hornet pilot and instructor, he holds an MBA from the University of North Carolina and an MS in Real Estate from Fordham University. At DAI Securities, LLC, Trevor specializes in due diligence for real estate investments and is an expert in 1031 exchanges, Qualified Opportunity Zones, and private syndications. He shares his journey from Navy pilot to real estate expert, explaining 1031 exchanges and Delaware Statutory Trusts (DSTs), their historical context, and their role in managing tax liabilities. Trevor also explores the evolution of syndication structures and the impact of the Securities Act. Enjoy the show!

Timestamped Show Notes

(00:00) Intro

(03:32) Trevor's background in aviation, finance, and real estate syndication

(11:22) Mitigating tax burdens through real estate ownership

(15:58) Understanding a 1031 exchange

(20:01) Three rules to identify properties in a 1031 exchange

(22:58) What is a Delaware Statutory Trust (DST)?

(25:27) Comparing TIC (Tenancy in Common) and DSTs: Benefits and limitations

(34:02) Downsides of the DST structure

(38:58) Understanding triple net leases (NNN)

(43:32) What does "spring out" mean and when is it done?

(46:59) Evaluating sponsors and DST offerings

(48:58) Investing in and setting up a DST

(53:22) Diversification strategies in DST investments

(55:09) Cash investors and DST opportunities

(59:57) Understanding additional basis in DST investments

(1:02:43) Debt and the exchange equation in a 1031 exchange

(1:07:43) How to connect with Trevor

(1:08:17) Outro

Connect with Trevor

LinkedIn

---You've found the number one resource for financial education for aviators! Please consider leaving a rating and sharing this podcast with your colleagues in the aviation community, as it can serve as a valuable resource for all those involved in the industry.

Remember to subscribe for more insights at PassiveIncomePilots.com!

Join our growing community on Facebook

Check us out on Instagram @PassiveIncomePilots

Follow us on X @IncomePilots

Get our updates on LinkedIn

Have questions or want to discuss this episode? Contact us at [email protected] See you on the next one!

Legal Disclaimer

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as a...

Today on Passive Income Pilots, Tait and Ryan share their candid experiences with passive and active investment deals. Inspired by the aviation industry's ASAP reports, they offer real-life lessons for pilots and investors. Ryan recounts his cautionary tale in real estate investing, while Tait discusses his blunders with his first passive deal. Together, they provide actionable advice and strategies to help listeners navigate their investment journey. Enjoy the show!

(00:00) Intro

(01:12) What is an ASAP report?

(03:14) Ryan recommends listening to your wife and having a plan when investing

(07:44) How Ryan does due diligence on a syndicator or operator

(10:55) Tait's first passive deal

(16:02) Interviewing referrals

(20:07) Transitioning to commercial real estate investing

(22:53) Legally avoid property tax increases

(25:00) Dealing with contractors

(34:00) Outro

Resources Mentioned

#9 - Demystifying IRAs: Transfers Vs. Rollovers with Carrie Cook

The Tax Advantages of Being an Investor

---You've found the number one resource for financial education for aviators! Please consider leaving a rating and sharing this podcast with your colleagues in the aviation community, as it can serve as a valuable resource for all those involved in the industry.

Remember to subscribe for more insights at PassiveIncomePilots.com!

Join our growing community on Facebook

Check us out on Instagram @PassiveIncomePilots

Follow us on X @IncomePilots

Get our updates on LinkedIn

Have questions or want to discuss this episode? Contact us at [email protected] See you on the next one!

Legal Disclaimer

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as amended. Listeners are responsible for their own investment decisions and are encouraged to seek professional advice before investing.

On this episode of Passive Income Pilots, Tait and Ryan interview Charles Krawitz, a financing industry veteran with over 30 years of experience. Charles has held leadership roles at ABN AMRO, KeyBank, and Fifth Third Bank and is currently the Senior Vice President, Chief Capital Markets Officer, and Head of Commercial Lending at Alliant Credit Union. He discusses the benefits of working with credit unions, yield maintenance, commercial real estate market trends, and the role of commercial mortgage brokers in securing optimal financing terms. Charles also shares insights on Alliant's due diligence process and the advantages of exclusive partnerships. Enjoy the show!

Timestamped Show Notes

(00:00) Intro

(04:57) A brief history of the credit union and Charles' backstory

(10:39) What's the difference between a bank and a credit union?

(12:19) Why should you bank with a credit union?

(17:44) Thomas' background

(19:10) How Thomas figures in facilitating Spartan loans

(22:01) Yield maintenance and the debt landscape

(25:18) The advantage of working with a credit union

(28:15) Transactional activities

(29:40) The health of the commercial real estate market

(32:15) Alliant's due diligence criteria and process

(39:25) Working with commercial mortgage brokers

(47:56) Benefits of exclusivity

(49:05) How does a borrower qualify for a loan?

(52:26) Common objections and how to overcome them

(55:55) How much negotiation can you do?

(57:11) Levers you can pull when negotiating for a loan

(58:23) Loan docs and when you know the loan is final

(1:06:04) How to connect with Charles

(1:07:20) Outro

---You've found the number one resource for financial education for aviators! Please consider leaving a rating and sharing this podcast with your colleagues in the aviation community, as it can serve as a valuable resource for all those involved in the industry.

Remember to subscribe for more insights at PassiveIncomePilots.com!

Join our growing community on Facebook

Check us out on Instagram @PassiveIncomePilots

Follow us on X @IncomePilots

Get our updates on LinkedIn

Have questions or want to discuss this episode? Contact us at [email protected] See you on the next one!

Legal Disclaimer The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as amended. Listeners are responsible for their own investment decisions and are encouraged to seek professional advice before investing.