Behind The Bricks

Big real estate data is changing the playing field by closing the inefficiencies in the commercial real estate market. How will this impact investing in the future?

Today we sit down with Richard Sarkis, Co-Founder and CEO of Reonomy. Reonomy is a commercial real estate data platform that is transforming the world's largest asset class. It's all about analytics, data crunching, and AI for commercial real estate. Richard and his co-founder Charlie Oshman grew a chance coffee shop conversation into revolutionary company, which has raised over $70 million in funding and currently holds partnerships with all the top CRE firms.

So how does someone go from having zero real estate experience to creating a successful prop tech company? This episode is a great story about courage and walking away from something good (such as an associate partner position at McKinsey) to start something that could be great.

In this episode, we will hear about the hottest investment markets in US, how the integration of AI enabled Rich to scale his model nationally, and learn who are some surprising consumers making money with big real estate data. [hint: they're not investors] If you are interested in the future of commercial real estate, the future of real estate technology, and like hearing stories of founders, who are adding massive value to an industry, you will love this episode. It's a must for players who want a successful future in the business...

In this show, we discuss:

• How he decided to leave a promising career to follow his passion and what was his "eureka" moment
• What the future of real estate is going to look like in the midst of the 4th industrial revolution and why big data is here to stay
• What were the biggest challenged he faced and still faces as Reonomy continues to grow and evolve
• What are the hottest US real estate markets today and how he uses a heat map to find this out
• What is his unique super power and why it's a very trainable skill that anyone can do

For more information visit www.behindthebricks.com

Finding success in the NYC real estate business requires being creative with where and how to add value. One market that requires this skill is the bulk purchase of unsold units in condominiums and co-ops. In essence, it's about buying wholesale and selling retail, but it gets much more complicated from there... Today we sit down with Myles J. Horn, who has spent the last 35 years specializing in this part of the business. Myles has likely purchased more blocks of unsold condominiums and co ops than anyone active in the business today.

These "bulk purchase" opportunities can be attractive because investors can participate in the upside of ownership without actually having to manage it day to day. But it's not as easy as it looks and it's very capital intensive.

For listeners looking to dive into one of the more hidden corners of the industry, this episode is perfect. You can expect to find out the keys to analyzing new opportunities, why Myles has a 79-item due diligence checklist, and hear some jaw-dropping tenant stories. Additionally, we discuss navigating Co-op board politics, why he does his financial projections on the back of an envelope, and why--in deals--action is always better than inaction. I hope you take away as much as I did from this episode…

In this show, we discuss:

• How Myles' value add is a two pronged approach
• The pitfalls of differing personalities on the buildings' board of directors
• What to look for when analyzing new opportunities
• Why it is important to walk the neighborhood, observe the surroundings, and get a feel for the residents
• Why he would ask to see the garage before investing in a building
• For more information visit www.behindthebricks.com

One trait I have observed among the most successful investors, is they all have a keen ability to find scarcity and exploit its opportunities. In commercial real estate, title insurance is one of those less talked about areas. However, its $15 billion industry is a critical component to all transactions… that is why today's guest is Jarett Fein. He has made his mark in the title industry as the Co-CEO of Kensington Vanguard National Land Services (KV), one of the largest independent full-service title insurance agencies in the country. Over the past 16 years, Jarett (along with his partner Brian Cooper) has grown KV from a one person back-office start-up, to a 200-person firm that completes over 1,000 transactions each month.

So how did he do it? At one point this former club promoter was looking to transition from entertainment law into something that excited him. One night of drinks with an old friend started this career pivot and lead him to founding his own firm. It's a great story.

If you are interested in learning how someone grows a very successful business in the real estate world, you'll love this episode. You will hear actionable nuggets on how to spot opportunities, market yourself differently, and find your unique "value add" in the market. We also discuss how he strategically teamed up with a former competitor, (now partner Brian Cooper) which helped them expand their business even amid the financial crisis. Along with many industry anecdotes, we also discuss the value of private equity funding, the future intersection of blockchain and title insurance, and other predictions about the market. I hope you enjoy this talk about title, growing a successful business, and entrepreneurial determination as much as I did....

In this show, we discuss:

• Why the name "Vanguard" had huge unintended benefits
• The challenges of building a company in a completely foreign industry
• How investing in human capital directly impacts credibility and why Jarett needed to spend all his resources on recruiting talent
• Why it is important for a real estate entrepreneur to be a persuasive salesman, have an extensive network, and to find their own niche in the industry
• How title companies are viewed as commodities and the creative angle they took to diversify themselves from the competition
• What the financial downturn in 2008 taught him and why they were able to weather the storm
• His advice and warnings for any company seeking private equity funding
• The different scenarios that someone would need title insurance at a high level
• How Vanguard has become one of the largest consolidator's in the market and why M&A is an important stage in any companies growth
• For more information go to www.behindthebricks.com

Have you ever wondered what it would be like to see the future of the real estate industry? In Real Estate tech there are plenty of places to look. Today we speak to Zach Aarons, one of the most influential players in the PropTech world. Zach co-founded MetaProp, a leading accelerator and VC fund, that has backed over 60 real estate tech startups. These companies have collectively raised over $2 billion, and employ over 1,500 people around the world.

In this episode we deconstruct Zach's unique path to the RE Tech space. We will discover why would one leave a promising career as an investment banker to start a walking tour company? And how did that lead to metaProp? You will be surprised to learn his predictions for the most disruptive technologies and opportunities in the multifamily space. Learn why passing his "magic bean test" is the first step to becoming a successful entrepreneur. It all helps explain why Metprop is an innovative platform in the PropTech market.

As a result of this episode, you'll learn about building a successful accelerator program from the ground up, and some counter-intuitive advice for those trying to break into the industry. This episode is jam packed with useful content for anyone interested in the future of the real estate tech. Hope you enjoy!

In this show, we discuss:

• How Zach went from Investment Banking to becoming an NYC tour guide and what he learned from being an entrepreneur?
• Why going back to business school can have huge benefits
• How to build a start-up accelerator from scratch, it's functionality, and the tactics used to get companies on board without having a successful track record?
• What areas are going to experience the most transformation due to technological innovation?
• Why the he believes that the one-year lease will go the way of the Dodo
• How the access and transparency to information has impacted the rental market?
• Where do the best ideas come from? Real estate people who then link up with tech expertise or tech expertise who try to solve something in real estate?
• What is the "magic bean test"?

For more information visit www.behindthebricks.com

As we have recently passed the 1 year anniversary of this podcast and with the conclusion of Season 1, I thought we would treat everyone to a surprise this episode!

Frequent listeners and fans of the show know that typically during each interview I will ask the guest to share one or some of their most entertaining tenant stories. I always say, owning, investing in, and managing New York City multifamily real estate is a full-contact sport. With the mix-up of people and situations you find here, every owner has unforgettable stories. Not only are they funny, but some are educational as to how you address unusual situations and ultimately become a better operator of multifamily real estate.

Today, listeners will get a little gift as we share a compilation of the best answers to this question from season 1. We will hear from Adam Mermelstein, Jordan Vogel, Philip and James Eisenberg, and a few others...

Thanks for coming behind the bricks for the most "entertaining tenant" stories.

For more information go to www.behindthebricks.com

"Everyone has a plan until they get punched in the face" – Mike Tyson

Starting off in a windowless office on 55th street, with no experience, no money, and struggling to figure out how to buy their first building in NYC, the Jones brothers had no choice but to trust in themselves to make something happen. In this episode, we discuss how Greg and Graham Jones of GRJ, not only got their company off the ground but since 2010 have grown it into a very successful enterprise. They currently have holdings in Manhattan, Brooklyn, New Jersey, Philadelphia, and Florida.

We jump in speaking about an upcoming boxing match Graham has, and how dealing with the NYC multifamily market can be similar to going toe-to-toe in the ring. To be successful, you need to expect the unexpected, move and react, and have an uncanny ability to problem solve in unpredictable situations.

Greg and Graham, share their valuable stories and advice on what it takes to make it as an entrepreneur in NYC. We touch on many dynamic topics including raising capital, their business model for affordable shared luxury apartments, market trends, key metrics to look at, and why NYC is unlike any other market in the world.

These investors have been very successful in a very competitive and tough landscape. They share some insightful pearls of wisdom that are meaningful if you listen closely. I hope you enjoy this one as much as I did.

In this show, we discuss:

• The challenges of entering the market post-financial crisis, and raising capital at that time
• Why great relationships and a strong track record are critical for long-term success
• The value of specializing in a niche and how to capitalize on it
• How creative ingenuity, ambition, and self-confidence are critical attributes to be successful and make a name for yourself
• What is the most important metric when buying a property?
• What makes NYC real estate the most attractive for investors
• How the real estate industry has been affected by technology, and why it is one of the most resistant industries against change
• How timing can make or break you...and much much more
• For more visit www.behindthebricks.com

If there is anything that can give you an edge in the New York City real estate business it's being a better negotiator.

Chris Voss was the Lead International Kidnapping Negotiator in the FBI for 24 years. His book, Never Split the Difference: Negotiating As If Your Life Depended On It, outlines his field-tested tools for talking anyone into, or out of, just about anything. Currently, Chris is the founder and CEO of The Black Swan Group, a coaching and consulting group that strives to solve business communication problems with hostage negotiation strategies.

In this episode, I speak with Chris about his experience in the FBI and delve into the rules and techniques that he used to unwind some of the biggest terrorist plots in our country's history. Listeners will walk away from this episode with actionable tools you can use immediately. Chris also shares his advice for someone just starting in the business world who wants to be a better negotiator, as well as how his childhood environment and upbringing really impacted his work ethic.

In this show, we discuss:

• The experience gained after 24 years in the FBI as the Lead International Kidnapping Negotiator
• The ways human behavior is same for all people, no matter their gender or race
• How he was able to unwind the plot of international terrorists to blow up one of the NYC's busiest tunnels
• The Rule and Techniques of Effective Negotiation
• What is a real deadline?
• How is negotiating with terrorists similar to negotiating the price of an NYC building?
• What is the biggest mistake in a business negotiation?
• For more information visit: www.behindthebricks.com

Throughout NYC and the entire US, there is a serious lack of supply of affordable housing. This has a wide-ranging impact on cities and their growth. Any investor interested in the long-term health of their market knows how critical affordable housing is to the local community and future economy. Real estate entrepreneurs have a critical role in how cities develop, and we dive into this subject in this episode.

Knox LaSister is the CEO of World Urban Property Management. (His online job title actually describes him as a "World Urban Strategist"). With over 30 years of experience in New York City Real Estate, his impact and expertise in the affordable housing industry has been significant. He is a thought leader in urban development and consults on new public/private developments around the country and the world.

We also talk about potential impacts that new technology has on real estate and how this will change the face of urban development. This includes things such as vertical farming, self-sustaining development, and new ways of creating public/private partnerships. To Knox, it's all about a housing environment which encourages community, that is not only better for the residents, but also has business and financial rewards for the owners.

This episode brings up topics that are often left out of typical real estate conversations, and I hope you enjoy it as much as I did. I learned a lot.

We discuss topics such as:

• How have his early life experiences of being homeless and building his first home at age 15 shaped his career?
• The history and the current state of Affordable Housing in NYC
• How are the mindsets of renters and owners different?
• What is the future of public housing in NYC?
• How do you create self-sustaining communities?
• What's to come with vertical farming and the future of food in urban areas?
• How does home ownership in low-income areas create community? For more information visit: www.behindthebricks.com

Nav Athwal is the Founder of RealtyShares, one of the top real estate crowdfunding websites and businesses. For those new to the concept, crowdfunding provides private individuals the ability to invest on-line in commercial real estate opportunities, while giving the owners and principals a much easier way to raise capital from a larger audience. Nav is a pioneer in real estate technology and frequently writes about online investing, real estate, crowdfunding, and fintech. You can find his thoughts in Forbes and see him on CNBC and Fox Business News.

In this episode, we discuss RealtyShares and how it has become a successful real estate technology platform. Additionally, we chat about other emerging technologies, how they will impact the marketplace, macro trends on foreign capital, and why institutional investors are still an integral component of their company. Finally, we wrap up with some advice to those starting out in real estate and get to a few tips on building a company from the ground up. Anyone interested in future of the business will love this show.

In this show, we discuss:

• How RealtyShares was founded and how it's grown since its inception in 2013?
• Why emerging as the third platform of its kind was advantageous to the company's success?
• How will RealtyShares and technology transform the future?
• Macro Trends on Foreign Capital
• How RealtyShares maintains a 99% success rate?
• What property type is the majority of investments listed on the platform?
• What does it take to become valedictorian of UC Berkley Law School?
• Where are we in the real estate cycle today?
• How will emerging technologies, like blockchain, affect the real estate marketplace?
• What book should everyone read?
• What are the positives and negatives of building a company from the ground up?
• For more information visit www.behindthebricks.com.

Urban American is a pioneer in the world of raising private equity specifically for workforce housing investing. These underserved properties are attractive for their stable cash flow and occupancy - but harder to operate - and Urban was one of the first institutional investors to scale this segment of the market. Over the past 20 years, the firm has bought and sold thousands of units. Started by Philip Eisenberg, today we speak to him and his son James.

To begin, Both Philip and James spent time in the Army and we discuss how this unique background influenced their work ethic, mindset, and current business operations. We touch upon their first building purchase and how they created a proprietary process to meet high tenant standards in difficult environments.

We also speak about dynamics of the market today: What are the differences between foreign and domestic funds? What are the hottest (and not so hot) markets? What drives the real estate cycle and where are we in that cycle? Finally, we round out with some memorable tenant stories and personal recommendations for growth and opportunity.

In this show, we discuss:

• How did being in the Army shaped their work ethic and trained them to be super-focused?
• How did Urban American become the pioneer in the world of raising private equity to participate in owning and operating of workforce housing?
• When did they realize they were onto something with workforce housing?
• How did they design solid processes in order to meet high-quality standard?
• What are the differences between foreign and domestic funds?
• What is Urban American's superpower?
• How did a building fire test their expertise in the business?
• What submarkets are hot today? Which are not?
• What drives the real estate cycle? Where are we in the cycle?
• What is their internal process for acquiring new properties?
• and much, much, more

Please visit www.behindthebricks.com for more information