The Stoler Report – Young Real Estate Pro’s and Their Views on the Market

The Stoler Report – Young Real Estate Pro’s and Their Views on the Market


♪ [THEME MUSIC] ♪>>YOU GOT YOUNG GUYS. WHY DID THEY GO INTO REAL ESTATE? WHAT DO THEY WANT? WHY ARE THEY IN THIS BUSINESS? WHAT DO THEY SEE THE FUTURE IS? WHERE DID THEY SEE THESE OPPORTUNITIES? I HAVE ASSEMBLED THESE FOUR INDIVIDUALS ALL UNDER 36 YEARS OF AGE, AND WE WILL ADDRESS EACH ONE’S AGE. THEY WILL TELL US HOW THEY GOT INTO REAL ESTATE AND WHAT THEY SEE AS THE OPPORTUNITIES. MY GUESTS INCLUDE AUSTIN KAY, WHO IS THE PRINCIPLE AT AGK DEVELOPMENT GROUP. JOE BERTE, VICE PRESIDENT AT M&T BANK, COMMERICAL REAL ESTATE. VICK SOZIO, WHO IS A CO-FOUNDER AND A PRINCIPLE AT ARIEL PROPERTY ADVISORS. AND LAST BUT NOT LEAST, HERE FROM PITTSBURGH, PENNSYLVANIA, MARK SIMON, WHO IS THE VICE PRESIDENT AT MADISON REALTY CAPITAL. YOU ARE THE FIRST. YOU ARE 29.>>29 YEARS OLD.>>HOW DO YOU DECIDE REAL ESTATE WAS THE BUG? WHAT WAS THE OPPORTUNITY?>>HAVING GROWN UP IN NEW YORK CITY, YOU HAVE INCREDIBLE REAL ESTATE AROUND YOU 24/7. NOT ONLY THAT, MY FAMILY HAPPENS TO BE IN COMMERCIAL REAL ESTATE, SO GROWING UP I ALWAYS KNEW THAT I WANTED TO BE INVOLVED IN THE REAL ESTATE INDUSTRY IN SOME RESPECT.>>DID A LOT OF THE KIDS, WHEN YOU WENT TO SCHOOL, HAD FAMILY INVOLVEMENT IN THE REAL ESTATE BUSINESS?>>THERE WERE SOME. MORE SPECIFICALLY, WHEN I WENT TO COLLEGE, THERE WERE MORE KIDS OUT THERE THAT WANTED TO BE INVOLVED IN REAL ESTATE.>>YOU WERE SAYING IN THE GREEN ROOM THAT ONE OF THE PART-TIME JOBS THAT REALLY GAVE YOU THE BUG, TELL ME ABOUT THAT->>WHEN I WAS A SENIOR, RATHER THAN FINISHING OFF MY LAST SEMESTER I DECIDED TO TAKE AN INTERNSHIP JOB WITH A CONTRACTING COMPANY, WHERE THE JOB TOOK PLACE ON THE 76 AND 77TH FLOORS OF THE TIME WARNER CENTER, WHICH WAS A BRAND-NEW BUILDING. BEING ON-SITE IN THAT HIGH OF A BUILDING REALLY PUT NEW YORK CITY REAL ESTATE IN PERSPECTIVE FOR MYSELF, AND IT GAVE ME THAT ITCH, AS YOU WERE SAYING. I REALLY WANTED TO PURSUE THAT.>>WHEN YOU WERE AT GEORGE WASHINGTON — BECAUSE I HAVE TWO ALUMNI — HAD YOU TAKEN COURSES INVOLVED WITH REAL ESTATE?>>BACK THEN, THEY DID NOT OFFER ANY REALTY CLASSES. I DID CONVINCE THE DEAN OF THE SCHOOL THAT I WANTED TO TAKE A GRADUATE-LEVEL SECURITIZATION COURSE, WHICH GAVE ME SOME INFORMATION INTO WHAT I WOULD DO IN THE FUTURE.>>YOU ALSO SUBSEQUENTLY GOT YOUR MASTERS AT THE NYC REAL ESTATE INSTITUTE. DID YOU FEEL THAT GETTING YOUR MASTERS HELPED ENHANCE YOUR BUSINESS CAREER?>>IT CERTAINLY HELPED EXPAND MY EDUCATIONAL KNOWLEDGE OF REAL ESTATE, AND IT CERTAINLY HELPED ME IN THE NETWORKING ASPECT OF REAL ESTATE DEVELOPMENT. THERE ARE KIDS TO THIS DAY THAT I STAY IN TOUCH WITH, THAT I DO DEALS WITH.>>IT WAS A GREAT OPPORTUNITY.>>IT WAS A GOOD OPPORTUNITY AT THE TIME.>>WHERE DID YOU GROW UP?>>CENTRAL MASSACHUSETTS, MARLBOROUGH. WENT TO SCHOOL UP IN MAINE, BOWDOIN COLLEGE.>>A GOOD BASEBALL PLAYER?>>IT WAS THE CHANCE TO COMBINE MY EDUCATION WITH BEING ON THE FIELD AND BEING ABLE TO PLAY.>>HOW DID YOU GET INVOLVED WITH BANKING AND HEAVILY REAL ESTATE BANKING?>>I WAS A GOVERNMENT AND LEGAL MAJOR SO CLEARLY NOTHING TO DO WITH BANKING. M&T RECRUITS HEAVILY AT BOWDOIN AND THEY HAVE THE MANAGEMENT DEVELOPMENT PROGRAM THAT I JOINED OUT OF SCHOOL. I TOOK A TRIP TO BUFFALO AND STAYED THERE FOR A YEAR, STARTED IN THE RETAIL BANK AT M&T. I REALLY WANTED TO BE IN NEW YORK CITY.>>THEN THEY SEND YOU TO FISH KILL.>>BUT THEY SENT ME TO FISH KILL WHERE I WAS TASKED WITH TRAINING REALLY. TO LEARN THE BUSINESS AND LEARN REAL ESTATE AT A BASIC LEVEL AND PROVE MYSELF BEFORE COMING TO THE BRIGHT LIGHTS DOWN IN NEW YORK.>>AUSTIN IS MORE IN THE DEVELOPMENT. YOU ARE MORE IN THE LENDING. A DUAL MAJOR OVER HERE, FORMER MARINE. YOU GREW UP WHERE?>>I GREW UP IN THE BRONX.>>WHAT WAS YOUR FIRST TASTE OF REAL ESTATE YOU WERE SAYING BEFORE?>>GROWING UP, I DID NOT HAVE MUCH EXPOSURE AT ALL TO REAL ESTATE AND THE INDUSTRY OTHER THAN HANGING OUT ON THE STOOPS IN THE BRONX. THAT IS WHAT WE DID. THE SEED WAS PLANTED IN HIGH SCHOOL AND DURING THE SUMMER, DOING ODD JOBS FOR A GOOD FRIEND’S FATHER WHO OWNED PROPERTY IN YONKERS. IT REALLY SPARKED MY INTEREST. I ASKED A LOT OF QUESTIONS, AND IT SEEMED LIKE IT WAS A LUCRATIVE BUSINESS TO BE IN. FAST-FORWARD FIVE OR SIX YEARS LATER, WHEN I WAS ATTENDING MANHATTAN COLLEGE I APPLIED FOR AN INTERNSHIP AT MASSEY KNAKAL AT THE TIME, WHICH NO LONGER EXISTS. I INTERVIEWED WITH A PARTNER DURING THOSE DAYS. HE WAS ALSO A FORMER MILITARY GUY. I THINK THAT WAS ONE OF THE REASONS WE CONNECTED RIGHT AWAY. I WENT ON TO HAVE AN INTERNSHIP WITH THEM AND REALIZED THAT THIS WAS A GREAT INDUSTRY TO BE IN. I LOVE THE COMPETITIVE NATURE, LOVE THE FACT THAT IT IS SOMETHING NEW EVERY DAY. I FIGURED OUT THAT I’M PRETTY DECENT AT IT. I ENDED UP REALLY TRYING TO BUILD A CAREER.>>NOW WE GO TO THE OTHER GEORGE WASHINGTON GRADUATE, TELL US A LITTLE BIT ABOUT YOU AND HOW YOU GOT INVOLVED.>>AS A CHILD, MY GRANDFATHER WAS A DEVELOPER IN PITTSBURGH. I SPENT SOME TIME WITH HIM AT A CONSTRUCTION SITE.>>ALSO IN THE AUTO BUSINESS.>>HE WAS, VERY ENTREPRENEURIAL. I SPENT A LOT OF TIME WITH HIM ON THE CONSTRUCTION SITES AND THAT GAVE ME A SPARK. THROUGH COLLEGE, I HAD INTERNSHIPS WITH VARIOUS REAL ESTATE DEVELOPMENT INVESTMENT FIRMS IN NEW YORK. GOING INTO MY SENIOR YEAR I GOT AN INTERNSHIP AT MADISON REALTY CAPITAL WHERE I AM TODAY.>>LET’S LOOK AT IT THIS WAY — MADISON IS A DEBT AND EQUITY PLAYER IN DEVELOPMENT. YOU’RE IN INVESTMENT SALES. SO YOU TOUCH UPON ALL OF THESE PEOPLE. YOU ARE BUYING AND SELLING PROPERTIES. YOU ARE LENDING AND YOU ARE DEVELOPING. HOW DIFFICULT IS IT TO BE, TO TRY TO BE DEVELOPING TODAY, WITH BANKS STILL A LITTLE TIGHT, DIFFICULTIES TO FIND PROPERTIES, DIFFICULTIES BECAUSE CERTAIN OWNERS DO NOT WANT TO SELL THEIR PROPERTIES, THEY WANT TO GET THEIR PRICE, HOW HARD IS IT?>>IT IS CERTAINLY HARD. YOU HAVE TO HAVE A LOT OF PATIENCE. IN THE MIDDLE MARKET TO LOW MARKET THAT I’M DEALING WITH NOW, CAP RATES ARE LOW. SELLERS MAY NOT GET THEIR PRICES.>>YOU MENTIONED IN THE GREEN ROOM THAT YOU HAVE TWO PROJECTS TODAY. WE WERE RELATING TO THE SUBJECT OF NETWORKING AND THE IMPORTANCE. ARE THESE PROJECTS FROM PEOPLE YOU MET FROM EARLY EXISTENCE?>>THEY WERE FROM NETWORKING. ONE WAS, AS I MENTIONED IN THE GREEN ROOM, A PROJECT, A MULTIFAMILY PROJECT THAT IS EIGHT UNITS IN CROWN HEIGHTS IN BROOKLYN, WHICH BACK WHEN I WAS YOUNGER, I KNOW MY MOTHER AND FATHER WERE ALWAYS TELLING ME THAT IS WHERE PEOPLE WOULD GET SHOT AND KILLED. TODAY, I AM WALKING AROUND IN A SUIT, NO PROBLEM WHATSOEVER. MY OTHER PROJECT IS IN HARLAN ON 116TH STREET WHERE WE ARE DOING A JOINT VENTURE WITH A CHURCH, WHICH IS A NEW WAY THAT DEVELOPERS ARE TRYING TO ACQUIRE LAND AT A REASONABLE BASIS IN NEW YORK CITY.>>LET’S TALK ABOUT YOU AS THE BANKER. M&T IS A PROMINENT BANK, VERY INVOLVED IN THE REAL ESTATE COMMUNITY. HOW DO YOU MAKE A BET ON AUSTIN KAY OR MARK SIMON?>>I THINK IT IS REALLY IMPORTANT AT M&T, WE PRIDE OURSELVES ON BEING A RELATIONSHIP LENDER. WE WANT SOMEBODY WHO HAS EXPERIENCE AND WE ARE VERY ACTIVE IN THE DEVELOPMENT.>>HOW DO YOU GET EXPERIENCE? YOU HAVE TO START SOMEWHERE, RIGHT?>>YOU HAVE TO START SOMEWHERE. AS AN M&T BANKER, WE REALLY LIKE TO DO BUSINESS WITH THOSE YOUNG GUYS WHO HAVE DONE IT BEFORE. IF SOMEBODY HAS DONE TWO OR THREE REHABILITATION PROJECTS AND THEY ARE DOING A GROUND-UP CONSTRUCTION PROJECT, MAYBE NOT NECESSARILY FOR US, BUT IF THEY HAVE DONE REHABS AND BRING US A REHAB DEAL, WE WILL DO OUR DUE DILIGENCE BUT SOMETHING WE WOULD TAKE A LOOK AT. I THINK EXPERIENCE IS REALLY KEY.>>SO IN ESSENCE, I WILL GO TO YOU AFTERWARDS BECAUSE PART OF MARK’S LIFE AT MADISON IS TO LEND TO THE PEOPLE WHO DO NOT HAVE THAT MUCH EXPERIENCE, CORRECT? OR WHO HAVE LESS CAPITALIZATION.>>IN TODAY’S MARKET, WE HAVE BEEN FINANCING MORE LARGER SCALE PROJECTS. IN THE PAST, IT HAS BEEN MOSTLY MIDDLE MARKET DEALS. OUR AVERAGE SIZE IS AROUND $70 MILLION, WHICH BRINGS IN MORE INSTITUTIONAL SPONSORS.>>AT ONE TIME YOU WERE DOING SMALLER DEALS.>>AT ONE TIME WE WERE, MORE ASSET BASE DEALS. SPONSORSHIP WAS STILL STRONG BUT IT MIGHT NOT BE AS EXPERIENCE OR AS LIQUID. WHAT YOU ARE SEEING IN TODAYS ENVIRONMENT WITH HVCRE RULES AND ALL THE RED TAPE ASSOCIATED WITH CONVENTIONAL LENDING, YOU ARE SEEING A LOT OF HIGH-QUALITY INSTITUTIONAL SPONSORSHIPS COMING TO US FOR FINANCING.>>WHAT ABOUT ON THE OPPORTUNITY SIDES OF BUILDING, ON THE DEVELOPMENT SIDE? HOW DIFFICULT IS IT TO FIND?>>IT IS NOT EASY ON THE CONSTRUCTION SIDE. YOU REALLY HAVE TO BE WITH A RELATIONSHIP KIND OF LENDER OR HAVE A REALLY GREAT PROPERTY THAT YOU OWN AT A GOOD BASIS THAT YOU CAN GET LOW LOAN TO COST FINANCING. IN THE MARKET WE ARE SEEING 50% TO 60% OF COSTS ON THE CONSTRUCTION SIDE. WE ARE OWNER OPERATED DEVELOPERS OURSELVES. ON THE DEBT SIDE, WE ARE GOING A LITTLE HIGHER THAN THAT, BUT STILL VERY LOW LOAN TO STABILIZE VALUE.>>HERE IS THE SITUATION. THE REAL ESTATE COMMUNITY IN NEW YORK, AND ALSO AROUND THE COUNTRY, ALWAYS HAS THE ESTABLISHED, LET’S CALL THEM THE FAMILIES. I DO NOT WANT TO CALL THEM THE FIVE FAMILIES OF ORGANIZED CRIME, BUT YOU HAVE THE CBRE, EASTHILLS, CUSHMAN AND WAKEFIELD, AND THEN YOU HAVE THE NEW KID ON THE BLOCK. HOW DID YOU DECIDE TO GO INTO THE BUSINESS, AND ALSO YOU WENT IN IN A TIME THAT THE WORLD WAS COMING JUST OUT OF THE RECESSION YOU WENT IN IN 2011. HOW DID YOU GUYS DECIDE TO GET INTO THE BUSINESS AND HOW DIFFICULT IS IT TO BE IN THE INVESTMENT SALES BUSINESS?>>IN TERMS OF THE TIMING, YOU ARE RIGHT. THAT IS WHEN THE GATES WERE JUST STARTING TO OPEN AND THINGS WERE STARTING TO HAPPEN AGAIN.>>IN 2009, THEY WOULD HAVE KILLED YOU.>>RIGHT. YOU WANT TO TRY TO MINIMIZE YOUR OPPORTUNITY RISK AND TIME IT APPROPRIATELY, NOT WHEN YOU ARE AT THE PEAK OF THE MARKET. I WOULD SAY THE PRIMARY FACTOR IN WHY WE WANTED TO OPEN UP AND WHY WE DID IT AT THAT TIME IS BECAUSE OF THE TEAM WE HAD IN PLACE. IF YOU LOOK AT MY OTHER PARTNERS WE ALL BRING A DIFFERENT SKILL SET TO THE TABLE. WHEN WE WERE AT MASSEY, WE WERE PRETTY MUCH WORKING AS OUR OWN TEAM OR UNIT WITHIN THE COMPANY.>>IT WAS JUST IN A WAY A CONTINUATION.>>IT WAS A NATURAL PROGRESSION FOR US. WE WANTED TO BE ABLE TO SPREAD OUR WINGS AND FLY. BY OPENING OUR PLATFORM, THAT IS HOW WE WERE ABLE.>>AUSTIN BROUGHT IT UP EARLIER, HOW DO YOU NETWORK SO YOU CAN GROW YOUR BUSINESS TODAY IN WHAT YOU ARE DOING? HOW DO YOU BUILD, HAVE YOU MEET MORE PEOPLE? HOW DO SUCCESSFULLY NETWORK THAT YOU CAN GROW YOUR CAREER IN A POSITIVE WAY OF NOT BEING OBNOXIOUS ALSO? HOW DO YOU SEE THAT?>>THERE ARE GREAT EVENTS THAT PEOPLE PUT TOGETHER, AND I CONSTANTLY FIND MYSELF AT THOSE EVENTS TALKING TO PEOPLE, MEETING NEW PEOPLE. IT IS ALSO IMPORTANT TO STAY IN FRONT OF BROKERS SUCH AS THE GUYS OVER HERE. I USUALLY SAY, LET’S TRY TO MEET AT LEAST TWICE A MONTH EVERY MONTH JUST SO WE ARE UP TO DATE IN TERMS OF WHAT IS GOING ON IN OUR BUSINESS LIFE. GENERALLY, IT SPARKS SOMETHING.>>IS AUSTIN IN THE SAME GROUP YOU ARE INVOLVED WITH? THE NETWORKING GROUP?>>NOT YET, BUT SOON.>>TOO EXCLUSIVE FOR ME.>>IT IS AN IMPORTANT SITUATION. EXPLAIN THE GROUP YOU’RE IN.>>I AM INVOLVED IN EMPIRE, A NETWORKING GROUP OF UP-AND-COMING YOUNGER REAL ESTATE PROFESSIONALS AGED 27 TO 35. EVERYBODY WORKS WITH ABOUT 50 REPRESENTATIVE FIRMS, ONE FROM EACH FIRM. WE MEET AROUND EVERY OTHER MONTH, AROUND SIX TIMES A YEAR. WE ARE SPONSORED NOW BY JLL. THEY SPONSOR OUR EVENTS, WE BRING IN SPEAKERS. YOU WERE ONE OF OUR SPEAKERS LAST YEAR. IT HAS BEEN GREAT NETWORKING EXPERIENCE. THERE IS SMALL DINNERS YOU GET TO KNOW PEOPLE, DRINKS, AND OTHER EVENTS.>>WHAT ABOUT YOU?>>IT IS GETTING INVOLVED IN ORGANIZATIONS THAT WILL FOSTER A NETWORKING ATMOSPHERE. PERSONALLY, I’M AM INVOLVED IN THE YOUNG MORTGAGE BANKERS ASSOCIATION. WE HAVE FOUR OR FIVE BENEFICIAL REAL ESTATE EVENTS A YEAR. TO GIVE AN EXAMPLE, WE ARE GOING TO HAVE A FIRESIDE CHAT WITH GARY BARNETT NEXT WEEK, WHICH WILL BE A NICE EVENT, AND A LUNCHEON WHERE YOU MEET OTHER LIKE-MINDED REAL ESTATE PROFESSIONALS. I ALSO THINK IT IS IMPORTANT TO STAY IN FRONT OF PROSPECTIVE BORROWERS AND CLIENTS, AND GETTING OUT FROM BEHIND THE DESK. IT IS SORT OF THE OLD ADAGE THAT YOU CANNOT DO REAL ESTATE LENDING BEHIND A DESK, AND I THINK GETTING TO DINNERS, LUNCHES, SPORTING EVENTS, ANY OF THE SORT OF EVENTS THAT ARE GOING TO GET YOU OUT OF THE OFFICE, ARE IMPORTANT.>>VIC?>>I THINK YOU WANT TO BE STRATEGIC WITH YOUR TIME. IT IS GOOD TO CHOOSE THE LOCATIONS THAT YOU LIKE TO PLAY IN. WHEN THEY HAVE EVENTS, IT IS GOOD TO CHOOSE TOPICS THAT YOU ARE INTERESTED IN. IT IS GOOD TO GO TO PLACES WHERE THE PEOPLE YOU WANT TO MEET ARE. IT IS GOOD TO BE INVOLVED IN ORGANIZATIONS THAT YOU HAVE A PASSION FOR.>>ONE THING ABOUT ARIEL IS THAT YOU CREATE YOUR OWN NETWORKING EVENTS IN THE MANNER OF WHEN YOU HAVE THE COFFEE AND CAP RATES. THERE ARE A LARGE NUMBER — YOU HAVE 150 TO 300 PEOPLE COMING TO THIS EVENT — WHERE THEY ARE GAINING INSIGHT ON WHAT IS HAPPENING IN THE MARKET, AND IT IS A GOOD WAY FOR YOUR PEOPLE TO MEET MORE PEOPLE.>>THERE IS A LOT OF PRINCIPLES. YOU WANT TO BALANCE THESE EVENTS. IT HELPS WHEN YOU HAVE A GOOD MODERATOR.>>I HAVE NO IDEA WHO HE IS. HERE IS THE NEXT QUESTION. HOW HARD IS IT TODAY, WITH THE DIFFICULTIES, TO GROW YOUR BUSINESS?>>IT IS A GOOD QUESTION AND A LOADED QUESTION, LITTLE BIT. IN TERMS OF GROWING YOUR OWN PERSONAL BUSINESS, IN TODAY’S WORLD, WITHOUT QUESTION WE ARE IN A MARKET THAT IS MUCH MORE ACTIVE THAN LAST YEAR. THERE’S MORE OPPORTUNITIES AVAILABLE, MORE TRANSACTIONS HAPPENING. THINGS ARE GOING INTO CONTRACT MORE FREQUENTLY, BUT EVERYTHING IS ARDUOUS. FROM SELLING TO FINANCING, SO IN TERMS OF GROWING YOUR BUSINESS, YOU HAVE TO PUT THE TIME IN. THERE IS NO SHORTCUTS, REALLY. IT TAKES A VERY KIND OF OPPORTUNISTIC APPROACH, STRATEGIC DEVELOPMENT. YOU HAVE TO CHOOSE WHERE YOU WANT TO ALLOCATE YOUR TIME AND WHERE IT IS MOST EFFICIENT. IN OUR BUSINESS, THE BEST WAY TO GROW A BUSINESS IS TO HAVE OTHER PEOPLE THAT CAN PRODUCE. THAT IS A VERY DIFFICULT TASK. NOT EVERYBODY IS A PRODUCER.>>ONE OF THE REASONS M&T IS SO SUCCESSFUL IS THEY HAVE A GREAT TEAM. SO IS ARIEL, AND MADISON ALSO. AUSTIN IS TRYING TO BUILD UP A TEAM ON HIS OWN. I THINK THE M&T MENTALITY OF THE TEAM EFFORT WAS REALLY AN IMPORTANT THING.>>ABSOLUTELY. ANY BUSINESS IS CHALLENGING TO RUN BY YOURSELF. I THINK M&T REALLY PREACHES A TEAM MENTALITY. WE HAVE A LARGE GROUP OF LENDERS THAT FEED OFF ONE ANOTHER, AND IT IS A CULTURE WHERE AS A YOUNG LENDER IF YOU HAVE A QUESTION ABOUT A NUANCE TO A DEAL, YOU HAVE FOUR OR FIVE SENIOR PEOPLE WHO ARE WILLING TO JUMP IN AND HELP YOU WITH THAT PROCESS. I THINK CERTAINLY CREATING AN ENVIRONMENT THAT FOSTERS TEAMWORK.>>HERE IS THE QUESTION THAT I HAVE REALLY FOR AUSTIN. YOU ARE WORKING BY YOURSELF IN A DIFFERENT WAY.>>ESSENTIALLY, YES.>>WHAT HAPPENS IS WHEN YOU WORK SMALL ON A SOLO BASIS, YOU SOMETIMES DO NOT HAVE THE BENEFITS OF WHAT JOE HAS, TAPPING THE NETWORK FOR ADVICE.>>I WOULD LIKE TO THINK I STILL HAVE THOSE RESOURCES.>>I THINK IN A WAY YOU HAVE, AS OF WHAT YOU HAD WITH GEORGE WASHINGTON. ONE HAS TO TAP THOSE OTHER RESOURCES THAT YOU HAVE ACCUMULATED OVER THE YEARS, TO BE ABLE TO BE SUCCESSFUL.>>RIGHT.>>YOUR INVOLVEMENT, BESIDE THE ASSOCIATION, THE EMPIRE GROUP?>>NETWORKING. I JUST FOLLOW YOU AROUND, THAT IS THE BEST WAY TO NETWORK. BESIDES THAT, IT IS ATTENDING THOUGHTFUL EVENTS AND BEING THOUGHTFUL WITH YOUR TIME. WITH THE ADVENT OF TECHNOLOGY, IT IS EASIER THAN EVER TO FIND OPPORTUNITIES. WITH LINKEDIN AND REAL ESTATE RELATED RESOURCES THAT WE HAVE AT OUR FINGERTIPS, IT MAKES FINDING OPPORTUNITIES THAT MUCH EASIER AND MAKES THE MARKET THAT MUCH MORE COMPETITIVE.>>I ALWAYS ASK THIS QUESTION ON MY LIFE STORY SHOW. WHERE DO YOU WANT TO BE IN 10 YEARS? IF YOU HAD TO LOOK IN MY CRYSTAL APPLE, DO YOU WANT TO BE A DEVELOPER? A BANKER? DO YOU WANT TO REMAIN IN THIS FIELD? DO YOU WANT TO GROW TO A COUPLE OF OFFICES?>>I THINK THE GOAL IS TO DEVELOP A PORTFOLIO OF MULTIFAMILY ASSETS AT A LOW BASIS, AND CONTINUE TO REFINANCE THEM. YOU HAVE STEADY CASH FLOW AND OWN REAL ESTATE FOR A LONG TIME.>>MR. BANKER?>>I AM VERY HAPPY WHERE I AM AT MY ORGANIZATION. DEFINITELY HAPPY IN THE REAL ESTATE BUSINESS AND WANT I CONTINUE TO GROW IN MY ROLE AT M&T AND TAKE ON MORE RESPONSIBILITY.>>DO YOU THINK IT IS IN THE SAME WAY THAT AUSTIN DID TO GET HIS MASTERS, IS IT IMPORTANT TO HAVE A MASTERS IN REAL ESTATE?>>A MASTERS IN ANY INDUSTRY HELPS YOU FURTHER YOUR CAREER, CERTAINLY, GIVES YOU THAT CLASSROOM EDUCATION. AS GREAT AS A MASTERS IS, IT IS ALSO REALLY LEARNING ON THE JOB. ACTUALLY BEING IN THE CRUX OF A DEAL AND GOING THROUGH DIFFERENT NUANCES, I THINK YOU LEARN BY DOING. THE MORE DEALS YOU SEE, DIFFERENT ASSET TYPES AS A LENDER, YOU GET THAT OPPORTUNITY. IT IS A GREAT LEARNING CURVE.>>VIC?>>I LOVE COMING TO WORK AND I LOVE MY PARTNERS, SO IN 10 YEARS I WOULD LIKE TO STILL BE TOGETHER AS A PARTNERSHIP. I WOULD LIKE TO SEE ARIEL CONTINUE TO GROW.>>YOU ARE IN A DIFFERENT BUSINESS. HOW DO YOU GROW YOUR BUSINESS? THE BANK GROWS BY ONE-WAY. AUSTIN GROWS BY ANOTHER WAY. YOUR MAJOR BUSINESS IS IN THE INVESTMENT SALES. YOU ARE IN FINANCING, BUT THAT IS NOT THE MAIN BUSINESS. HOW DO YOU GROW AND GET THE NEXT VIC, THE YOUNGER GUY? HOW DO YOU FIND A KID WHO IS AT MANHATTAN COLLEGE OR GEORGE WASHINGTON, TO MAKE A DECISION TO COME TO WORK FOR ARIEL?>>YOU PUT YOURSELF OUT THERE AS A COMPANY AND TRY TO RECRUIT FROM WHEREVER YOU CAN. WHEN SOMEONE COMES THROUGH THE DOOR, YOU CULTIVATE A LOT OF RESOURCES TO DEVELOPING THAT PERSON AND GIVING THEM THE SUPPORT THEY NEED. WE ARE NOT THE SHOP THAT TAKES A WARM BODY AND THROWS THEM IN THE OCEAN AND SAYS, GOOD LUCK, SINK OR SWIM. EVERYONE WHO COMES IN THE DOOR, IT IS VERY STRATEGIC AND A DELIBERATE DECISION-MAKING PROCESS, BECAUSE WE KNOW WE WILL DEDICATE A LOT OF RESOURCES TO CULTIVATING THAT PERSON IN THEIR SKILL SET AS A SALESPERSON, ANALYST, CAPITAL SERVICES BROKER, MORTGAGE BROKER, OR RESEARCH DEPARTMENT. IT IS BY DEDICATING RESOURCES AND CULTIVATING PEOPLE YOU HAVE.>>I AM VERY HAPPY WHAT I DO. I LOVE WAKING UP IN THE MORNING AND SEEING YOU, MICHAEL. THE BEST PART OF WORKING AT MADISON. IT HAS BEEN A GREAT LEARNING EXPERIENCE, BEING BOTH ON THE DEBT AND EQUITY SIDE OF THE BUSINESS. YOU GET TO SEE THINGS FROM BOTH PERSPECTIVES AND THAT HELPS ME GROW MY PERSONAL BUSINESS, SEEING THINGS ON BOTH SIDES.>>WHEN I WAS DOING THE LINKEDIN RESEARCH ON EVERYBODY, AUSTIN WORKED FOR COMPANIES IN THE BROKERAGE BUSINESS. THE OLD BROKERAGE WORLD, IF YOU WANTED TO GET INTO REAL ESTATE, THE IDEA WAS THEY GIVE YOU A PHONE AND A DESK, IF YOU WERE LUCKY TO GET A DESK, AND THEY NEVER GAVE YOU ANYTHING ELSE. YOU HAD TO SINK OR SWIM. TODAY I BELIEVE WITH TECHNOLOGY, IT MAKES LITTLE EASIER, BUT THE WORLD OF REAL STATE IS ENLARGED. IT IS REAL ESTATE TECHNOLOGY. HOW DO YOU SEE TECHNOLOGY TODAY? MANY FAMILIES ARE INVESTING IN REAL ESTATE TECHNOLOGY AND SO ON. YOU SEE TECHNOLOGY AS A BIG MARKET?>>AT M&T WE ARE USING THINGS TO HELP US WITH OUR UNDERWRITING AND DUE DILIGENCE. IT IS DATA THAT IS AT YOUR FINGERTIPS. A COUPLE CLICKS AWAY AND YOU HAVE COMPS FOR A RENTAL BUILDING ON LONG ISLAND CITY. IT IS A POSITIVE TREND FOR THE INDUSTRY AS TECHNOLOGY CONTINUES TO IMPROVE AND GETS MORE COMPETITIVE. CERTAINLY, A POSITIVE.>>I THINK REAL ESTATE IS A GOOD BUSINESS FOR MEN AND WOMEN. THERE ARE OPPORTUNITIES OUT THERE. YOU MAKE YOUR OPPORTUNITY. I AM HAPPY I’M WITH THE NEXT GENERATION OF REAL ESTATE LEADERS WHO WILL ALL DO WELL. I WOULD LIKE TO THANK AUSTIN, JOE, VIC, MARK, AND I WILL SEE YOU NEXT WEEK. ♪ [THEME MUSIC] ♪

Leave a Reply

Your email address will not be published. Required fields are marked *