Ginny Bolling Talks Due Diligence to find the Pearls, Perils, & Possibilities in Real Estate Deals

Are you one of the many busy professionals working in offices day in and day out? Do you wonder how some people grow their wealth fast, retire early and play on work days? Well, you're in luck because Ginny Bolling hosts this show Pivots of Prosperity where she interviews people that can do just that play on work days. Many guests have become financially free. She also interviews people that are on their journey and people that are in support roles like attorneys, contractors, brain brokers and others. Commercial real estate is the common element. She is on a mission to be sure. Busy professionals know they can own substantial commercial properties too, like apartments, self storage facilities and others, and not have to do the work managing them. Passive investing is the key. Syndications are the typical method. Tax write offs are some of the biggest rewards. Ginny and partners find the deals, build a strong team and business plan, then offer the investment opportunities to passive investors. New episodes are released every Tuesday at 12, so watch for new releases. If you want to get involved, let us know. You need to get pre qualified to hear about most deals. See the show Notes for contact information.

Hey there, this is Ginny Bowling with Pivotal Real Estate Investments and I am just going to talk about due diligence casually here today. I want to try to bring to light some things. I've already gone through our custom due diligence checklist and talked about the different things that you should be asking sponsors. And what I'm going to talk about today is more about the sponsors side of the due diligence diligence because there's a lot more that the sponsors obviously need to do so and that's kind of my specialty. The way I see it, I would explain it as that most of my career I have worked with attorneys and property owners and lots of their experts that put together a counter offer to negotiate with whoever my client is when I'm representing the state of Florida or a city or a county or some some governing agency that is looking to acquire property that you didn't plan to sell. And it's not a comfortable situation for anybody. It's not a an easy thing in any way. It's. It also gives rise to some ugliness sometimes. Basically what I want to tell you is I've learned to trust but verify to a bigger extreme than most people because especially when we get into having to cut buildings and take away property, there's some very serious things that we need to be sure we understand and compensate a property owner for. I kind of pride myself in being very good at that and that has Always given way to other ways to negotiate and to have an understanding of what you're actually getting into. And so oftentimes it runs into extra long contracts and agreements that at least address the sensitive areas, hopefully for a win win, you know, or something that's going to be manageable and contain risk. That's the whole idea. So if you don't know me, I think I kind of told you my background in a backwards way. That way. Most of my life I've worked in the eminent domain world and worked with attorneys and land planners and appraisers. And I myself was an appraiser in the 1980s. So savings and loan crisis. So I saw the ugly side of real estate first. And so. And that was in South Florida, Palm beach county area, and worked for the Florida Department of Transportation down in Broward and Palm Beach, Martin counties, all that south Florida vicinity. And so I will tell you that I'm very detailed as a result. And so I am trying to make it easy to think of and fun in a way that I look for the pearls and the perils. Right. So the glitter and the dimmer. Right. So that's, that's kind of me. I. I really like to find the things in both property and people that they might not even realize is a pearl too. And I think I'm pretty good at it. So I try to inspire people. I really, I really enjoy doing that and I really enjoy real estate. So, for instance, when I'm looking at a property, I do start very much so with the intrinsic elements of the location, because that's one of those things you cannot change. You have to be sure the location can support the type of asset, your plan, everything about it. You need to be sure. Regulatory environment, the legal environment, all of that will support what it is that you're trying to do with that property. And then you have to look at the people. And that is a variable. You can control that. But the team, when you put together a team for a property, want to be sure as best you can that it is the right people in the right seat who not how is a great book. If you haven't read it, you should really read it. And so we always look for each property for the right team members to be able to help make sure that that project and that property are going to get all the supports that it needs. And so that's a critical thing. That's that part about betting on the jockey or you betting on the horse. I love horses. I think the horse is a lot of it. But the daki's more of it. So then you also have the, like I say, the economic and the legal and the social frameworks that you have to look at. And so it's important that each piece get analyzed separately. And whenever there's some gut feeling or something that there's more to look at, I'm a biggie about diving in and deep. And so I pride myself in being resourceful. And I'll tell you what, AI is awesome. It's helping to get to databases and access information so much faster. And so I'm all for customizing your chat GPT so that it knows you, it knows what you're looking for and it, it knows the context when you tell it, you can change up the context. But. So for instance, I have been delving back into opportunity zones. I got very familiar when they first were launched and attended regular meeting talking about them and really met with a few different people on both the government side and private side that were creating funds. And it turned out that one of ours didn't quite work out, that we proceeded with it. But all that work and effort getting even close, you learn a lot. Yeah. And, and it's invaluable. And so now that I'm looking at property again and opportunity zones, I, I like redevelopment, so I am looking at that more and more. And so I am hoping that Trump is going to renew the opportunity zone legislation. It's scheduled to sunset next year. And so there's a lot of things that are up in the air, but it's been so successful that we have reason to believe it will be renewed. And it was initially geared towards capital gains, reinvesting capital gains so that you wouldn't have to pay taxes. And if you held the asset for a full 10 years, you would never have to pay taxes. If you had held five or seven, it would be, you know, that stepping kind of a situation. A pro rata share. But so we're thinking that it will be renewed and it will be not only just capital gains, but possibly allow people to just plain invest in depressed areas. And that would be awesome, wouldn't it? Because more people might do that and more people might come up with good projects for those areas. And so while those areas that were identified as opportunity zones before, it was like 25% of the needy census tracts in each county that were identified and got that kind of a, an entitlement, and that might not be the right word, but that, you get the idea many of those have risen, they're no longer depressed areas. So that shows the success. And so we're hoping that they'll follow that same concept, but put in other areas that need to be have that investment. And so banks have been on board. You know, lots of different organizations have been behind this. And one of the things though, that hit during this, so the opportunity zone would take, you know, you can invest in a business or a property. The office market went down. Right. Everybody knows that in areas, it's not throughout. It's all location, location, location, as you know. But so there are areas. And the more I've looked at some recently, the more I'm realizing, yes, okay, so offices have gone through that, and now, now people are having to come back to the offices. Right. So this is a good time to be getting into offices. Certain areas, you got to make sure it's the right factors, the right variables, the stars align and all that. But so another thing I would say is that the taxes or interest rates, I mean, we expected to be coming down. So a lot of the investors out there that are already struggling are going to have to hold on longer now. And so banks are having to face the music. They've been kicking the can down the road in some cases and modifying loans or doing this and that. But we do feel there's going to be more foreclosures in the commercial world. And it's a cleansing that is needed. Hate to say it, but that's one reason I wasn't buying the last couple years. There weren't that many that I was coming across that were passing, you know, some of my testing. And so I, I know that there's many more that are actually looking better. So I hope you'll stay tuned. If you want to be part of the inner circle, please join and follow us on the social media, especially the YouTube channel. I like to highlight people that are considered either local legends or pivotal people. They even get a little pell pin that says that's what they are, which is a great conversation starter when you're at meetings and whatnot. And so you can nominate somebody. And if you want to come on the podcast, that's great because we do also want to have people come on that have a message to share with people, whether they're in the apartment business, the industrial warehouse business, self storage. I'm comfortable with most all of them because I've been dealing with all of them most of my life. So I would say nothing's off limits. And I also like the vendors that are doing the. The renovations, the suppliers. They're all part of what we do and if they have messages to those syndicators or to those property management people this is a great platform to be able to do that and most especially I should announce we are doing a special series on property management companies and so we want to get our management companies to come on and tell us what they see out there, what they like and find troublesome as far as operations potentially and lots of things like that. There's so much to talk about so hopefully that helps you to know a little bit more about where I'm coming from. I dig deep I really check into a lot of things I'm used to doing things the old fashioned way so I don't rely just on the Internet and AI while it helps a lot I double check a lot of things too so kind of an old fashioned girl in that sense but hopefully that helps you to decide if you want to be part of the inner circle or support us on social media that thank you have a good day.