Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Today, we talk about the risk of falling behind in real estate. Our guest, Gary Wilson, has been an investor for over 30 years and shares how he has stayed on top of the industry. We talk about the 4 ways to limit real estate risk, how to build your property management team, and how to keep up with rapid market changes. You definitely don’t want to miss out on this episode!
Learn more about Gary and his story at shineinsurance.com/managing-commercial-real-estate-risk!
“Many property management companies are used to traditional long-term rentals. They’re not used to Airbnb and corporate housing, and that’s a risk.”
Gary has been investing in real estate for over 30 years. At the beginning of the conversation, he shares what he sees as the biggest risk in the current market. The world is changing and evolving rapidly and real estate investors have to keep up with all the changes in order to stay in business. One example of that is Airbnb as corporate housing which is a fairly new concept.
Another real estate risk is financing. There are new options for alternative financing for bigger properties, but investors need to be cautious and well-informed about them.
“Your lender, your insurance guy, your attorney, they’re all partners. So select your partners wisely.”
Gary shares his risk management process. He has 4 key ways to limit his real estate risk.
- Be a good landlord.
Make sure your property is up to code, safe, clean, and reliable. This is not only beneficial to your tenants but good for your reputation in the industry as well.
- Have solid property insurance.
Avoid injury or death on your property by making it as safe as possible. However, make sure to properly insure yourself if something does happen despite all of your efforts.
- Use an LLC for your real estate business.
LLC gives you anonymity and one degree of separation from liability. Any lawsuit will go to the LLC first and not you personally. A good rule of thumb is to not have more than $1M in assets in any one LLC. On higher levels, you can use trusts instead of LLCs as well.
- Have good property management.
Many people self-manage their properties. However, there’s some risk in that because if you’re the owner and the manager as well, you automatically tie yourself directly to the tangible asset. To avoid that, build a good property management team incorporated in a separate LLC.
About our Guest, Gary Wilson
At age 40, retired as Corporate Vice-President, Mergers & Acquisitions in National Banking;
- In the first 6 months after earning a real estate license, created 6 figure income working with Investors
- Completed over 100 transactions per year consistently every year without a sales team or assistant, with virtually no marketing costs
- Traded over 3,000 Investment properties in less than 5 years
- Developed five real estate holding companies, owning more than 250 Rental Units
- Self-made multi-millionaire by building a real estate enterprise including: brokerage, rental management, investment services, settlement services, and appraisal services
- Award winner and accepted into Andron Apiphenon Order of Excellence for Real Estate
- Author of FIVE Real Estate Investment books: Rental Profits Without The Pain, Flipping For Profits Without The Risk, Turning Rental Problems into Real Estate Profits, Wholesaling For Profits so Everybody Wins, Investor Agent, Make More Money Not More Work
- Founder, Trainer and Coach of Path to Profit System, teaching more than 8,000 Agents and Investors;
Mentioned in the show:
- His LinkedIn
- 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 Gary Wilson for taking the time to share so many great insights with us
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