Not Your Average Investor Show
Not Your Average Investor Show
408 | SPECIAL REPORT: McKinsey Blueprint For The New Real Estate Investing Edge Released (We Break It Down)
A new report from McKinsey has just been released, giving a blueprint for success in real estate in the modern era. Because it’s McKinsey, we know it’s worth paying attention to, but we all know that even the best consultants aren’t as big of experts as those who spend their lives in the field.
That’s why we’re going to dissect this report and extract the most valuable insights for your real estate investment decisions on the next episode of the Not Your Average Investor Show!
JWB Real Estate Capital co-founder, Gregg Cohen, and show host, Pablo Gonzalez, as they dive into the findings and add the perspective of 17 years investing in real estate to the data McKenzie has surfaced.
In this show, you'll learn:
- Tech-Enabled Strategies: How technology is differentiating average real estate investors from great ones
- Customer Experience: Key factors that contribute to building and maintaining a great experience for investor
- Loyalty: why long term relationships are key to investor success
The Comp Test: see how JWB stacks up in these key metrics
Don’t miss your chance to reset your expectations of what success looks like and gain a competitive edge in the ever-evolving real estate market.
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https://jwbrealestatecapital.com/nyai/
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Today is a special show because one of the biggest consulting firms in the world, would you call McKenzie? I would. McKenzie, maybe the, maybe the biggest, maybe, maybe the most influential, right? Consulting firm in the world has recently released. A study that is based on expert opinions, surveys, all the type of stuff that these big wig account consulting firms do about what the new real estate investing edge looks like. There's been a major shift. They've identified three key insights and essentially an eight step framework. Of what leads to success for real estate investors. And we are going to break it down for you today Welcome to the weekly edition of the not your average investor show. I'm your host, Pablo Gonzalez with me as always the man that I affectionately like to call GC cause he's got the genius concepts. Cause he knows that a general gas will cause him to Greg goes in. Cause his name is Greg Cohen. Say hello, Greg. Hello
Gregg Cohen:everybody. Fantastic to be with you today.
Pablo Gonzalez:It is great to be here too, buddy. I feel like I haven't been here in forever, right?
Gregg Cohen:and then we were so excited to go running as soon as you got back. We haven't run in like six four years ago. And and then I couldn't even run this morning.
Pablo Gonzalez:Couldn't even run this morning, but you know what? We're here in studio. We are ready for an awesome show again. I've been away for three weeks in a row. We're back, baby. And I'm super pumped about this one. And we also have a reminder, right? Like this isn't, this isn't just my time back. There's also. Two days left on the special incentive GC. Tell people what they got two days left about it.
Gregg Cohen:Absolutely. So if you haven't heard, we've been talking about it for the last couple of weeks, three weeks here. But we have a very large incentive package that we're offering for new clients and current clients. And you guys have been taking advantage of it. So congratulations. We've been having the largest number of sales so far. This entire year has happened in this month and it's because of you all. It's because of this incentive package and it's because it makes so much sense to take action. right now, especially with this, this incentive. So I'm excited for all of you. What we're doing is we're buying down the interest rate for all of you who put properties under contract through the end of July. So two days from now it's go time guys. JWB is buying down the rate on your mortgage. We're doing that at we're buying down the rate three quarters of a point, which may or may not sound like a light, a lot to you all, but it means a lot when you invest in a property and you hold on for a full market cycle. What this is going to do is bump your rate of return over one percentage point. Which, if you're investing hundreds of thousands of dollars, one percentage point over years and years and years adds up a ton. And in year one, what it does is it adds over$700 of cash flow to your bottom line. That's just in year one, over 10 years. That's over$7,000 of cash flow by taking advantage of this incentive. So. It's go time guys. If you are a current client and you would like to add properties to your portfolio, simply reach out to your JWB portfolio manager. If you're a new client, get on the phone with us today. Soon as you're done listening to this call, get on the phone with us, go to chat with JWB. com. And you can schedule a time to get on the phone with us, or you can just send an email to info at JWB companies. com. We will do our absolute best to help you acquire in the given timeline. And so I'm excited.
Pablo Gonzalez:Yeah. I mean, that was a lot of words because it's a very, very valuable thing. I like to describe it as. You have two days to lock in tomorrow's interest rates today. Well done. Right. What do you say? Well, we've realized that most people are holding back because they're thinking Our interest rate's gonna drop and you know Maybe they're a little bit intimidated for this like buy now and refinance later thing But at the end of the day what I think is genius that you and your team have figured out a way to do Is you take that off the table you allow people to lock in tomorrow's interest rates today And what that means is not only Do you get to buy now when everybody is afraid and knowing that when interest rates drop for the rest of the world? Property values are going to go up and you get to lock that in like that locked in that low price lock in that home price appreciation, but you also get to lock in the rate that everybody is waiting to buy. So not surprised that our community has taken action. I see some names in the chat right now that are here with us today that are. Some of the folks that have added properties to their portfolio, not going to blow you up today, but if you want to identify yourself in the chat, feel free to, because what I also see is people identifying themselves in the chat for the thing that we like to do, start the show with every time. What is it you see? We've got the MVP in the house. Mr. Lee Bishop. Mr. Lee Bishop. We got our community manager, Joanna in the house. We've got the fairy godmother in the house. Ms. Jen Filson. From Monterey, California. We got Mark Norman is back. Good to have you, Mark. We got the Patron Santoria of Northern Virginia.
Gregg Cohen:Michael Santoria, the Ringmaster true
Pablo Gonzalez:barn saying, good day y'all back from Europe. Mr. Traveling man, we Billy Green. Good morning from the Boer Sleeves. Soso Mountains of Colorado. Good to have you, Billy. In the house we got the shaman, NA sha naem sha. We got the Maven from the mountains of Denver, Leslie Wilson. We got Christopher Lee. From Fernandina Beach Lene. We got our user lead off hitter today, batting six seventh, something like that. Bottom of the order today for the lead off hitter bottom. John Hanney. It's all right that just send the order around. Bat around. Bat around. We got the Man of Steel. We haven't seen him in a minute.
Gregg Cohen:Vincent and Barber
Pablo Gonzalez:Vincent. Barbara, our favorite smile from the Pacific Northwest. Ms. Pamela Meyers. Ms. Pamela Meyers from Seattle. Who else we got in here? We got, oh, our favorite name, the Brunos Aeron in. It's good to have you, Aaron. We got the five F's. Our favorite, fee based, Sorry, our favorite flat fee fiduciary financial advisor friend, Calibear, of course. I'm not good at counting the F's. I just pronounce the F's, okay? We got our regulars, Gary and Rosalind Riley from Marietta, California. We regard you. I almost messed up on that one. Oh, we got Le Messier, celebrating the Olympics in Paris. Oh, Régé Foncé. From the Inland Empire of Southern California. Oh, this is great.
Gregg Cohen:I miss this.
Pablo Gonzalez:It's fun. It's so much better. Yeah, in studio roll call is a thousand times better than remote roll call. Not gonna lie. So I blame myself for that. I love this. Okay. Great roll call today. It feels like As the fairy godmother says, you're the gang's all here, right? Like our, yeah, the, the, you, oh, I forgot. We've got the first family of the non traveler's best show, the Patriarch. Kevin, the Patriarch, Carolyn, we salute you. We
Gregg Cohen:salute you. You threw that one awfully.
Pablo Gonzalez:I did, I did. My bad. We got T from Nashville. T in a C.
Gregg Cohen:All right. Yeah. There we go. From
Pablo Gonzalez:the T in Tennessee. T in Tennessee. That's a new name. That's a new name. Welcome to the party. Welcome to the party. We got the legend, the number one referral source for JWB clientele, the man with an arena named after him.
Gregg Cohen:Mr. Roger Voicenet. Mr.
Pablo Gonzalez:Roger Voicenet. We got Danette Coleman is back. How are you, Danette? Good to have you from Maryland. Right on. GC, before we get started, we also have breaking news today. What are we breaking GC?
Gregg Cohen:We do. We have, so a lot of you have been hearing and have been asking about Our special webinar series that we are, continuing to do. We have done three or four of them so far. Something like that. Yeah, and so we have another one that's coming up this Thursday. I want to invite all of you to attend. This is going to be a great one. We're going to be talking about this idea of buying your assets today and how it's going to be a win even if you have to refinance or you get to refinance later on and really walking through why it makes so much sense to buy while rates are higher like they are today. This is a not your average take on how to take advantage of market dynamics and one that we're going to dive into a deeper on Thursday. We're going to bring one of our best friends along with us. John Siebert is has been one of our lenders for probably over a decade. Now, many of you have worked with John. On your loans for your JWB properties. And John is going to be some of us
Pablo Gonzalez:have worked on loans with John Sieber for their personal property. That is true. You know, save me, save me 0. 8 percent of a percentage point on my mortgage. So yeah, as we know, this incentive is drying up at the end of this month. So what are we doing first day of the next month? We're bringing in John to explain the whole mechanics around the If you're going to buy today, refinance tomorrow, we're bringing our, we're bringing in our mortgage
Gregg Cohen:closer. The
Pablo Gonzalez:closer to explain the cost, the, kind of like the process behind it, obviously we're going to have GC explaining the genius concepts of how it all works and all that good stuff. So it's going to be a great one. As, as, as we all know, You know, we used to go live on Tuesdays and Thursdays. We've heard from the community that they miss having a Thursday show every once in a while. It's just an honor, another opportunity to like, hang out with us again. It'll mostly be tailored to new people. But we love having a community in the house since you are such a useful resource for anybody that is debating whether or not to go on this journey themselves, right? So we appreciate anybody that can make it. Joanna posted the link for the webinar in the chat if you want to register and you want to hang out. I see Leslie, Leslie Wilson registered. I see MVP Lee Bishop registered. Not surprised. And I see we got a couple new live listeners. Again, we got Ed Lowry, new live listener, investor from Jacksonville. Welcome to the fam.
Gregg Cohen:Thank you so much for being here.
Pablo Gonzalez:April Smith saying hello, everybody. That's a, that's a new name as well. Welcome. Welcome to the show, April and Charity Graham checking in. A return.
Gregg Cohen:We know, Chair. I mean, we know. Oh,
Pablo Gonzalez:we know, Chair. We know, Chair. Thank you all,
Gregg Cohen:especially the new folks. Thank you for saying hello, welcoming or being welcomed in the chat. It's, it's a, it's a big first step, so we appreciate all of you.
Pablo Gonzalez:Yeah, it's cool, it's cool. We appreciate you identifying yourself. Also for the new folks, if you're just chatting on the default, it's only coming to like the host and panelists, only us and Joanna see it. If you want everybody to see whatever your question is or whatever your genius insight is, you got to change that little box right above it to everyone from hosts and panelists. And that way you can chat with everybody. So I see more registrars for, for the show. We appreciate you guys showing up for us. Now, without further ado, the topic du jour, as Reggie Fonsey likes to say, it means topic of the day, GC. So this I'm going to put the, I'm going to put the article in the chat. So anybody can, anybody can look at it, right. But for anybody not familiar with McKinsey and company, again, they're kind of like the category Kings of business consulting. They hire people out of college, paying them an outrageous amount to give professionals Big advice. And, they you know, they put the resources behind this study about how success in real estate investing has essentially changed. They called it the new real estate and investment edge tech enabled brand. CX, which is short for customer experience. And loyalty and you know, they do what they do, right. They use industry research, expert interviews, data analysis, compile this report, put it in a highly digestible thing. As soon as I saw it, I dove into it, send it over to GC. Cause I think there's a bunch of really, really interesting things. And I want to, I want to talk about. Essentially three things today, GC. One is the main shift that they've identified. Two is the three key insights of like how this shift is working. And then this like eight stage framework of what they believe is the way to do it. Because spoiler alert, as I read through this thing, I was like, Oh, that's why they call you genius concepts. You've been doing this for a long time.
Gregg Cohen:Well, yeah, you know it was really fun to read through the article and kind Not just think about where JWB is today, but think about our evolution. You know, I think it was a really cool article because there are certainly some things that we were ahead of the game on and then there are a lot of really great insights in this article as to how we can continue to step our game up as far as the tech side as well. So yeah, it's a really, really great article and I would encourage all of you to read it.
Pablo Gonzalez:Cool. So it's in the chat. We'll also link it in the podcast if you're listening at some point in the future here, but the big shift. Right. The big shift that they identified, if you were to summarize it in one word is real estate companies have gone from really valuing this idea that they have to prioritize the physical attributes and location, right from location, location, location, house, house, house, house, house to customer experience through tech. Data analytics and strong brand and community. And that is essentially the thing that they're identifying that separates today, the real estate investment companies that are winning, that are creating higher returns for people versus average run of the mill people that like are the, the old industry standards you see when you, when you hear about that shift what goes through your head?
Gregg Cohen:I, I feel it at a, at a deep level. I, it means everything to me because the, the big thesis of JWB has been, listen, More people need to have real estate in their portfolio because we need to build a better retirement. So more people need to have real estate in their portfolio. And most people know that. But the reason that most people don't invest is not because of a lack of returns. It's not because of a lack of the opportunity to make money. The reason why most people don't have real estate in their portfolio It's because the experience has been hard, the experience has not been enjoyable. And in real estate, the way you win the most is by staying in the game a long time. So the big thesis for JWB, our aha moment, you know, 15 years ago when we went, completely head over heels into this turnkey experience was that if we could take this experience of being a real estate investor and making it enjoyable, making it something that you tell your friends and your family about, well, we could really create some, something really great, something that could make a big impact in our clients lives. We can make a big impact in our residents lives. We can make a big impact in our community. So it was never for us about saying, Hey, how are we going to take this return component and double the returns that we can drive for our clients? While we would love to do that. The big thesis for us is, Hey, listen, the returns in real estate, they're already good enough. The problem is we don't have access to it because it's too hard. How can we make the experience 10 X what it typically is and still continue to drive higher returns. And then, You know, we can make the world a better place through real estate. And so but that, that CX, that customer experience is the core of what the JWB thesis is.
Pablo Gonzalez:Yeah, man reminds me of our initial conversations, right? I remember sitting around this room and you, me, Cody and Kate, and us, you know, really going hard at this idea of, you know, the top of the website should say real estate investing made easy. Yeah. Right. Yeah. And it's been your message all along. I think as, as we have Kind of had more interaction with our community, have more interaction with folks that are trying to make this leap and really diving into like the core problem here. We've also surfaced this idea that really that. Retirement stats are broken, right? Like you've, you've had this like data point of people want to be in real estate, but they don't own real estate for a really, really long time. I think it was really easy to, to think that the, that the main issue and you know, April saying it right now, and this is a, this is an issue for people, right? Lack of funds to get started. For initial down payment and like that price continuing to go up, you know, that is an initial obstacle, but you've always held true to the idea that like finding the money is one of the most solvable issues there is. But at the end of the day, what really hurts people is this idea that the moment you tell someone, Oh, you know what? I just, I just saved. I'm thinking about using my 401k to put this much money into real estate. You're going to get people coming out of the woodwork saying, ah, you know what, man, they're going to promise you all this stuff, but it really actually sucks. And that's why people aren't doing it. So this idea that they've, that they've uncovered customer experience. Like the right data that you can, that you can really count on and this idea of community as like crowdsource, the real information and the true contextual experience for yourself and make you feel like you're not crazy because you're about to do this is like a, a, a, a key, key thing that, you know, is the reason why We now have a community that has, um, man, I was just, I was just looking at this math recently, but what is it like two people that have already generated over 2 million in wealth from real estate, like 16 people that have generated over a million and something like around the lines of Two to 300 of folks that have, um, I might be wrong. There's a Pablo
Gregg Cohen:curve in your numbers somewhere. I think it was 160 or 180 that have generated over half a million dollars.
Pablo Gonzalez:Over half a million dollars. Right. Well,
Gregg Cohen:JWB investments
Pablo Gonzalez:through JWB real estate investments. Right. And, and, and those are all folks that show up to this show. Yeah. So it's like they, they have figured all this stuff out. They're having experience. They have created an edge. So let's dive a little bit deeper into this, like. From this shift into like what's making it happen. And, you know, I kind of want to go inside by inside, right. Enhanced customer experience, data driven decision making and building strong brand and community. Let's talk about customer experience. Cause that's where you first went to, right? Like that is the, like the key insight. When did, when did you and your partners be like, what, what, talk me through the aha moment for you guys.
Gregg Cohen:when we first started, we first fell in love with rental properties before we really knew what the main problem affecting, you know, the world is. And the problem is access and experience in owning rental properties for most people. So, we first fell in love with the asset. And we, you know, built our own portfolio. We bought about 40 rental properties back in 23 years old with my business partners and, and, you know, we fell in love with it, but we were 23 and we were so hungry, to be successful. And we didn't have wives and families, and we put everything on the line to be able to do this. And so it was such a sacrifice to be able to own a rental property or to build a portfolio. So after we did this, you know, we kind of took a step back and we're like, man, It's not exactly easy to replicate, you know, and so there was an aha moment of like, wow, we want to bring this to the world. We want to bring this to, to folks to be able to help, but like, How do you replicate what we just did? We really need to deconstruct everything we just did to make it easy for others. So there was like a, there was a moment there where it was like, not just out of the box, easy to do. We really needed to break it down. And then we also started to look at it from like what the normal experience is for owning real estate that everybody just has accepted for so long and realized that it is not enjoyable by itself.
Pablo Gonzalez:Yeah.
Gregg Cohen:Right. You know, the normal experience when people use a real estate professional to go and buy a property still includes a lot of. You know, waiting, and it includes a lot of taking your time to go and see many properties. It includes a lot of stressful offers that you put out, it includes a lot of rejections, it includes a lot of negotiating, it includes a lot of big numbers and working with people that you don't necessarily know have your best interest with lenders and title and insurance and. Yeah. It's just for, for many, many forever, we've just sort of accepted. This is what it's like to own real estate. And so we kind of looked at it from both of those perspectives of like, what it really takes to have real estate in your portfolio takes a tremendous, it used to take a tremendous amount of just passion sacrifice, you know, and then at the same time, perseverance, perseverance, and at the same time, the normal way of doing this that everybody just already accepts. isn't easy to do either. So, we just looked at that and we said, if we could meet somewhere in the middle, listen, not everybody is going to go and buy 40 rental properties in a year and a half, like we did, right? Yeah, yeah. You don't have to do that to be successful, right? But if we could make the experience, again, 10 times better than what normal real estate is, that would be amazing. Then we could really, really make an impact here. And so that aha moment of understanding both of those components created this space in between for us that we could achieve and meet and really again, make an impact on others.
Pablo Gonzalez:Yeah. I mean, you know, to me, you and your partners have always been like really. intuitively sharp business guys and seeing this like gap in the market of, Hey, people want to do this, but you know, the, it's really, really hard for us to get to 40, you know, so how do we, how do we get people to four? Yeah. Seems really, really intelligent. And, you know, when I think of, when I think of the history of JWB as told on this show multiple times, I think of the idea that you guys first had the insight. So. You started thinking, well, we can bring companies, we can bring properties to folks, right? Like there's a moment where our, we have 40, we can just kind of start building a company around also like acquiring it for folks. And you were doing that while outsourcing property management to people. And then you're just like, wait a minute, this property management experience sucks. So we're just going to have to build this out ourselves. And now, you know, I don't know how exactly how long ago it was that you guys started property management. I'm, I'm estimating around 10 or 11 years ago, but you now have. 2010 is when we started. Publimet. You now have 6, 000 homes that are under management. You have maybe the biggest single market property management company underneath and, and your commitment to the client experience is essentially, we thought our business was finding properties and remodeling them, and now we've realized our business is actually property management and we're willing to pivot up. We're willing to pivot our whole business model around that.
Gregg Cohen:Yeah, the, the basis for why we were going to be successful was client experience. Yeah. And if that is your North Star of how you're going to be successful, we quickly learned that we can't do that unless we control all aspects of the investment and become vertically integrated. You know, when we first got into property management, We weren't exactly excited about building a property management company. I mean, it's the same reason that you all hire us. You're not exactly excited about doing property management, right? We quickly learned though that our business overall was not going to be the level of success that we wanted. Unless we leaned in and we realized how successful property management was critical to the client experience. And when we did that, then we became very excited about it. And that's why we love it today and now we've grown it to about 6, 000. But that North Star is client experience. And whatever needs to be done to include, to improve that client experience, it's, it's, it's on the table at JWB and there's a good chance that we're going down that path.
Pablo Gonzalez:True, true, right? Like the foundation is running your own property management company. The application of it all, I think goes straight into like your core values of under promise and over deliver. And how you, you know, when I, when I look at like, kind of like the periphery of client experience, I realized early on that you all are really good at client gifting, right? Like, like I've been, I've been given a couple of surprises myself and I've seen it in other people's homes that. That that have this stuff and the different conversations I've had around under promising and over delivering with you of how you set up the kind of from the sales process all the way through to like every, every touch point you are, you've advised me on my own business of, Hey man, Only promise something that you a hundred percent believe that you can deliver and are pretty sure that you can do better than, and don't go beyond that. Cause as long as every single touch point is, you know, the biggest risk to client experience is not matching expectation. And if you can continue to match and or exceed expectation, people will continue to trust you more and they, and they will do business with you a long time, and that is the foundation of a really, really good business.
Gregg Cohen:I mean, that's our, that's our strategy right there. We've done this for 18 years now. We know we're going to be able to deliver on.
Pablo Gonzalez:Yeah.
Gregg Cohen:When you talk to my team and you're thinking about investing with us, we're going to tell you what we know we can do. But as our data has shown with our client performance and you know, we generated over 300 million in profits to clients over these, the last 18 years, I can guarantee you that we did not put in the estimates that we were going to generate 300 million in clients, 300 million in profits to those clients, right? Yeah. If we can just deliver and just do what we say we're going to do, call it almost every single time. And we leave ourselves this little room for surprise and delight, and you do this over and over and over. It's every time that we talk to, you know, somebody, and we say, Hey, listen, we're going to get this. deliverable to you on Friday, if we can get it. And we really think we can get it there on Thursday. We're going to tell you Friday, you know, we get it there on Thursday, right? You buy the house, you buy your JWB investment property. And we tell you that it's going to come in at 1350 for rent. And meanwhile, we're advertising it for 1375. And we think we really have a chance at 1375. You're in the process of closing on the house. You get a call from your JWB portfolio manager and we're saying, Hey, guess what? Not only is the house rented, but it's rented at 13. 75. This is what it does for your cash flow. Yep. You look and you construct your entire Relationship, especially in the beginning with a client and you just stack all these positive wins And it's not like you have to drive 20 or 30 percent returns to build lifelong fans and to build a following You just have to know what you can deliver on you have to deliver on it consistency consistently And if you have that opportunity just do a little bit better over and over and over again You're you're going to create this Wonderful foundation and trust and people on the other end, people who are paying you money are going to be so excited to get your phone call. And that's, that's what we set out to do a long time ago. And it's. It's quite simple, but it's really, really effective.
Pablo Gonzalez:Yeah. And as I think about, you know, the value that we can provide by having this discussion, I think of two things. One is this idea of if you are building a real estate business, if you are, I know half of our, half of our listeners are people trying to like be like JWB and other markets and stuff like that. If you're building your real estate business or any business, you know, like paying attention to what you just talked about I can tell you from personal experience will result in a good business longterm, right? Like I've, I've gotten that advice from you multiple times in private. I've seen you say in rooms of young entrepreneurs and like every single time, I'm just like, man, I'm so glad that I'm close to you. I can listen to that as an investor who is evaluating who they're going to invest with. Right. The key things to look for on this client experience thing is, you know, asking other folks if the experience matches the, it matches the, The expectation set, but more than anything, what we've learned is You can really understand if a property management company is, well, first of all, this idea that if you're going to invest in turnkey, you want somebody that is also the property manager to be the person selling you the property because then they can control the experience. And two, you want to work with a property management organization that's set up to win when you win based on metrics, based on things like, I guess you can explain this pretty well.
Gregg Cohen:Oh yeah, a hundred percent. Well, so just kind of go through this. Again, if we start with what our North Star is, and the customer experience became the thing that we were going to win at, and that's why people were going to, you know, help us be successful over the years, it's because of our client experience. Well, if we realize that property management in house is the only way for us to deliver on that customer experience premise, well, you guys got to realize the same thing. And whether or not you're thinking about investing with JWB or investing with somebody else, realize that vertical integration leads not just better returns for you, it leads to a better client experience. Vertical integration in this setting means property management. Is in the it is under one roof It is the the same people who are selling you the property are the same people that are collecting The rent so that you have no room for the blame game for pointing fingers when it doesn't happen Everything has goal alignment. So, so yeah, so we realized that back in, you know, 2009, 2010, we officially started JWB property management. And you know, sooner or later people figure it out. Unfortunately if people don't take this advice and they. You know, buy rental properties and have the management outsourced by somebody else. What you see is what we typically see in our country right now. If people have enough courage to even buy that first rental property or go down that route, they typically don't last. Yeah. And that's why this asset class gets a bad rap.
Pablo Gonzalez:Yep.
Gregg Cohen:So, you know, the, the proof is already there that it, that it doesn't work, this concept of vertical integration and all aspects under one roof. You know, prior to JWB and maybe one or two other companies really pioneering this over the last 18 years, it didn't exist in the residential real estate space. So it's still relatively new.
Pablo Gonzalez:Yep.
Gregg Cohen:So, but there is no passive there is no, there is no truly passive experience that is built for you to enjoy it for the long haul. Yep. Unless it's all under one roof.
Pablo Gonzalez:Yeah, yeah, I mean I think about, My construction days and the difference between what you normally consider a general contractor or a design build contractor, right? Like the general contractor, someone that's going to give you an estimate on your home and is going to price it out to a whole bunch of different trades. and then they're going to, you know, like do these things while an architect is telling them, well, this is what it's actually supposed to be like, right? Whereas like these, like design build deliveries that leads to this idea of just like. Hey, this window is leaking and an architect being like, well, it wasn't designed to be that way. And the contractor be like, no, no, no. The design is bad. I didn't have good paperwork or whatever. So I didn't know how to actually build it while I can design build. It's all, you know, handled in house similar to Haskell or, you know, where my wife works. what I think about as like really useful data here for anybody that's. Wanting to have this experience is kind of like The data points that i'm now teaching in this class for like our affiliate partnerships and stuff like that this idea that You need to look at the way that the property management company's incentivized internally And you'll understand what your experience is going to be meaning as you've taught me Most property management companies make 50 to like 60 percent of their revenue based on tenant placement fees. And that means that, you know, subconsciously or consciously they're incentivized to sign one year leases. You know, when, when somebody moves out, they're doing pretty good. So like what's the what's the incentive behind it? Whereas looking for property management companies that align metrics around length of tenants stay around renewal rates and around occupancy in general is really, really crucial. So JWB signs a minimum of three, you know, two and three year leases, um, have an average residence stay of four and a half years, have a renewal rate north of 70%. And that just means as an investor, my experience is going to be better because when I think about a turn coming up, I'm thinking about two months of lost. Rent and I'm thinking about about four thousand bucks and like little things that I've got to do to the house to get it Ready to go which leads to you know, six thousand bucks out of my pocket And if I only have to do that every four and a half years versus every year or two years That's gonna drive What we realized was about a, what was it like a 20 percent swing in ROI or something like that?
Gregg Cohen:Yeah. If you're only getting one year tenant stays, your actual maintenance costs are going to be about 30%. And, you know, as we have seen in some of our pro formas, when I compare what everybody else offers as maintenance costs, And percentages and their pro formas, sometimes providers put 0 as their maintenance expense or 0 percent as their maintenance expense. So there's a huge swing there. If you're only signing one year leases, when you sign multiple year leases and you have a renewal team that is there to renew at a high rate, and you have an average duration of residence stay of four and a half years. That's how you get to maintenance expenses of four to maybe seven and a half percent, which is what we have here at JWB. But the problem is everybody else claims somewhere like five percent for maintenance costs generally, but they still sign one year leases.
Pablo Gonzalez:Yeah,
Gregg Cohen:that's the missing piece and and ultimately that is what leads to or experience for you as an investor. And again, that's what leads to this beautiful asset class, not having a seat in the table of portfolios for investors in this country.
Pablo Gonzalez:That's expectations, not matching experience, which is the source of misery.
Gregg Cohen:All
Pablo Gonzalez:right. So that's customer experience. I knew that we'd have to do a real deep dive on that one. The other two key insights, data driven decision making and building strong brand and community. Data driven decision making GC. When I think of that, I think of my favorite topic here, which is the data flywheel, but you, you kind of thought about it differently when I first said data driven decision making. What do you, what do you think when that happens?
Gregg Cohen:Well it all has been driven from the data flywheel, but I thought of the most immediate here and now is just being able to see how our clients are performing in real time with their investments and even this year we made some really great updates to our reporting for our clients. So it's wonderful for the clients for all of you clients. I'm sure you've seen it now, the updated and new client ROI report. It's a great experience. But what it also does is it has made it easier for us to data mine and see how we're winning for all of our clients. And that's where we were able to pull out, listen, we have, To clients that have made over 2 million in their JWB portfolio, right? We have in this
Pablo Gonzalez:community.
Gregg Cohen:Yeah, yeah, exactly. And we have, you know, 160 to 180 have made over half a million dollars and we've made over 300 million for our clients,
Pablo Gonzalez:you know,
Gregg Cohen:and you got to realize those numbers are staggering. Our clients are regular everyday people. Yep. We do not serve big hedge funds. We do not serve institutions. We serve. Pablo and Marta, who I love dearly, we serve you all of you are such an awesome community because of who you are We are regular everyday people that we are creating this financial stability and this wealth for and a better retirement account many times for So when I started to think about data data driven, yeah, that that's where my first thought went but it wasn't always that way. Right. So we actually started to create this data flywheel back in 2011. It was a crazy harebrained idea that I brought to the guys. And I was like, guys, listen, if here's one thing that's lacking in this, in this industry is any accountability. And even if you work, even if a potential client works with a turnkey partner out there, and even if that turnkey partner is realistic in their pro formas. and delivers on the promises and all that. There is no way for that client to say three years later, five years later, 10 years later, how am I doing? There's just no way. Yeah. Rental properties are somewhat complex. There's a lot of money coming in from here. There's money going out the door here for insurance and taxes and maintenance costs. And there's just nothing built that way. If we don't come up with an accountability structure, our clients aren't going to know how well we're performing for them. And it will separate us from the others in our space. But it has been a labor of love. And in 2011, I didn't realize how difficult it would be to be able to track all of this. You know, at that time, we probably had 300 or 400 clients at that point. And to think about on a quarterly basis, to understand the flow of money across every property that we're managing, And, uh, the, the things that don't always fit into the box and how do you create systems to do that? It's, it's been, it's been a real undertaking. But we stuck to it and it wasn't easy in the beginning, but now listen, it's 2024, so that's 13 years now data, the ability for us to make data driven decisions that are in your best interest as a client. And in our best interest as a business is, is one of our key advantages and how I have so much more confidence when I come to you and tell you how we can deliver for you and how I have so much more confidence in our business overall, and you just don't see it anywhere else. In the Turkey Turkey space. So that data flywheel has served us even more than I could have ever imagined. And I'm glad that we stuck our necks out there and tried something. Yeah, man.
Pablo Gonzalez:I mean, I'm not surprised of how valuable it is. Right. If I, if I was to, to me, it's like, there's three ways that I think about the data flywheel in terms of value, and I'm going to do it in reverse order of like, what's most important to probably our listener right now to what's most interesting to me. One is, and when I teach this thing, it's this idea of, you know, if you can't, if you can't have instant access to your dashboard and know where your money is, you're going to feel insecure. We're so used to having online banking. You know, maybe 2011, I didn't have my bank of America app that I just like whipped out and, and I like looked at it all day long. But now 13 years later, you know, we're just so used to like, Having access to what our checking accounts and our savings accounts look like, and our stock portfolio and all these different things. And if you are going to, you know, and, and, and we can look and see how many, how many minutes until my pizza gets delivered, right? Like we we're just completely used to like. Just knowing stuff instantaneously. And if you can't match the speed of like society, you're not going to create a good experience, right? So it's kind of how I explain it these days. It's like, you need a, you need a business that's functioning like Amazon to, to make you happy enough to stick with them for 20, 30 years, right? I think about the actual ROI piece of it and this idea that you have 6, 000 properties all within the same area, allows you to widgetize something that nobody has ever widgetized before, allows you to get bulk pricing for for construction services and construction materials, which means that my maintenance rate goes down, which means that my amount of time that I You know, a resident that I have that I'm hoping stays there for four years, like everybody else does goes from my toilet broke to I can pee in it again, you know, like, like, it's just a big deal, right? Like so that to me drives. The first one drives satisfaction. The second one drives returns. The fact that it is this like, compounding advantage of being able to like, operate really, really well. And the third one, to me, drives long term peace of mind. Like, it's, when you say, I brought this to my team in 2011, I'm like, Oh man. I remember reading good to great around like 2008 and like Jim Collins's book talking about how these companies that go from good to great have these certain qualities and one of them is a data flywheel and the idea that if you're going to be an enduring company and you're going to stick around for a long time, you need to be investing in compounding advantages that allow you to like, you know, win more and more for yourself and for your clients. And if I want to invest in a home that I want to own for 20 to 30 years, I want to do it with a company that I feel is going to be around for 20, 30 years. So as a business nerd, when I hear Dataflywheel, I'm like, these guys know what the F they're doing and they're going to be around for a while. So like, take my money.
Gregg Cohen:Yeah. Well, we didn't call it the Dataflywheel until you came on board for four and a half years ago. So, uh, there's just value in having it being you know, I think a lot of the things that we do at JWB, sometimes we just operate off of feel. Yeah. You know, and, and I, as objective as we are and how we want to keep our investor hat on at all times and make, you know, objective decisions, sometimes you just feel where there's an opportunity to do something and you don't exactly know how it's going to work. Yeah. That's what I felt with the data fly. What became the data flywheel with our client Reporting that's what I felt when you know the idea of basing your business based on customer experience in residential real estate investing Was there there wasn't there's not always data out there to say, well, this is definitely the right thing, but sometimes, you know, especially for big ideas, you go off a feel and you iterate and, you know, luckily and thankfully, we've been here for so long that that iteration, that iterative process, that constant curiosity leads us to a place now where. You know, we have something really great.
Pablo Gonzalez:Yeah, man, I think it's amazing. And I didn't realize. So you didn't call it that if I will. We
Gregg Cohen:didn't.
Pablo Gonzalez:That's really, really funny because I like, I look at Tara. I'm like, she is mother of flywheels to me, right? Like, like to me, it's just like, it was born and it was born and raised out of flywheel. I just got here to be the uncle. That's really, really funny. Okay, cool. So then, and then last, Of these three insights is this idea of building a strong brand and community for which I do take a lot of credit for, right? Like I remember, you know, I remember our first conversation when you're like, all right, man, I realized that I hate making content, but I know I have to make content and I need a better way to do it. And I'm sitting there, we're sitting there at Coop 303, right. Is what, is what it's called. And I'm like, Greg, I honestly. I think that we need to be talking about I think the first thing I said was like about how many people surf in Jacksonville because it's cool and everybody like likes to associate themselves with it and all these credential commercials are like old guy surfing that doesn't actually surf and that really happens here. But the other thing I remember saying is. You know, man, I, I think that the number one thing that's going to make people comfortable in understanding the asset class has less to do with a really good presentation around numbers and more to do with seeing other people that they admire other people that they, that they, that they know are smart that are like them doing this thing that they want to do and succeeding with it. And this idea that I remember when I first started Fiddling around with real estate. The thing that held me back was saying, Oh, I want to do this. And then three out of four people being like, are you sure you want to do that? Because at the end of the day, it sucks. And it was real estate. So this idea that building a strong brand and community to me is. Is is is twofold, right? It's number one, a brand to me, like equates trust, right? Like if, like, I know that my Nike shoe is not going to give you back pain, such a strong brand, but at the end of the day, the community thing is this, this context that is so hard for like one company to provide. Themselves or just like, you know, is it right for me and at what point it's so much easier to just like see it in other people and if we could surround other people with Folks like them that would allow them access to like hey, does this really work for you? Which is really what's happening in the chat right now, which is what I find fascinating, right? Like lee and michael and danette talking about like their And you know, like talking about this, like, three year leases that they're signing and like the, the success that they're having, right. And April, who's new here, being able to like, ask them directly what's going on with them and then giving each other's phone numbers, like there's no, there is no better way for someone to be like, man, I know this to be true, but I want to see it, to believe it then creating this community thing, man.
Gregg Cohen:I mean, it has been one of the most amazing things. That I've ever experienced in my career. Agreed,
Pablo Gonzalez:agreed, yeah.
Gregg Cohen:Just to think of the quality of people that we have in our community. And we're not even just talking about, you know, you know, success in real estate, the quality of people that we have, the character. I mean, every time we get to get Whether that's at the summit that we had in February or when we're all getting together sort of around the country, whenever you go to a place, Jen's talking about
Pablo Gonzalez:driving down to Orange County, San Diego and meeting up with Reggie right now in the chat. Exactly. I mean, I've
Gregg Cohen:seen things in, in, you know, meeting overseas where people are in different countries. So, yeah. Anyways, just the quality of people who take time to be here, I never take for granted. And if you had asked me and Pablo four years ago, four and a half years ago, if we would have the number and the quality of people that, that truly are here for the right reasons. I just, I never knew it could be possible. So that always blows my mind. And then the access to people, like you said, who have achieved greatness in rental property investing and have that special space every Tuesday to be able to interact with them. I mean, we talk about how there's, You know hundred and eighty folks that have made over a half a million dollars in rental property investing Well, there's a whole lot of you that are in that chat right now, and I won't call you by name But I see you there, right, you know so especially if you're somebody who's newer to see that success to be within a conversation of that success is Is amazing. I always wonder like What was the special sauce that like came together for this to be successful because to me community is something that it's really hard To create. I think I think people can create fake communities pretty easily, you know But like what is that and then they fade and they're there for a minute Like this has lasted this has grown organically like what's the special set of circumstances that came together for this to it To stick, you know, maybe that's a great question to ask all of you in the chat if you want to throw in, you know What about this makes you want to be here every tuesday? I think that would be a pretty cool thing What do you think?
Pablo Gonzalez:I mean, I got a theory about it, man. I so my initial theory When, when I came to you, I was like, Hey, Greg, I bet you that all your clients are these like really interesting, like entrepreneurs and, and folks that have like done all this, you know, like done all this like business stuff, we're going to be able to talk about business. And while I was directionally right. And the fact that everybody was like interesting and had a common goal and all these different things. It's really, it's really more obvious that it's mostly W2 investors. That just look at the options of the things that they've been handed down as beliefs. And think to themselves, why am I crazy here? And, and to me, the common thread is this idea that we're all folks that have like looked at the status quo and said, not good enough for me, you know, like I want to do a little bit more. And I think the type of person that does that does that across many vectors in their life, right? Like we just happen to be in the vector of saving for retirement and financial independence. But as I look across our community, it is a common vector to. Approach to relationship building approach to long term thinking in career and sustainable success and like all these different things and it doesn't necessarily need to be entrepreneurial or W 2 or in a certain career or whatever, but everybody here kind of marches to the beat of, has a strong internal compass and I don't think that that's normal, right? So like, I think, I think when you get here, And you realize that it's clear, so that is, that is the character that you find here. And it really only works when you have proven that that is like the evangelist, the person that's the leader of the community has proven over and over that they have similar core values and similar beliefs. So like, I, I think that what I didn't realize is just how, how much you and your team has for the last 17 years. March to the same drum of these folks, right? Like you guys saw a real estate industry that everybody was doing it one way and just immediately started zagging and finding value in the zag. You started seeing a mentality that in a lot of rooms is very transactional and started thinking of it relationship wise. You, when 2006 happened, And everybody freaked out. You guys made sure that you paid everybody back at your own personal cost. And you have continued to do that throughout the years to make people whole when it's not their fault, whether or not it makes financial sense for you in the short term. So I think it's the combination of those two things, man.
Gregg Cohen:It's interesting because there's, there's certainly like a like mindedness if you, if you look at some of the moves that we made early on, We, we had a not your average approach to whatever that that problem was, you know, and whether that was how we were going to handle the Great Recession or leaning into rental property investing when others, you know, may, you know, clearly aren't weren't as excited about it as we are or any challenge along the way. So we have that streak of being in not your average. Take on the situation. And that is a common bond that we see here in the, in the, so
Pablo Gonzalez:a hundred percent. And listen back to the same exact three key insights, enhanced customer experience, data, data driven decision making and strong brand in the community. Charity is saying being transparent, transparent, temperate, and your value system and honesty is how long it will, you know, in how long it will take to achieve lasting wealth. That's what keeps charity coming back. Right. So that's like, that represents. Exactly what we're talking about, right? Like data driven, transparent, right? Like customer experience, setting the right expectations and all those kinds of things, man. So
Gregg Cohen:this is great. Look at some of these responses. Thank you. Yes, really amazing responses,
Pablo Gonzalez:right? I'm here for the positive learning and encouragement that I have made the right choice for my portfolio and get encouraged to continue to grow my portfolio, building generational wealth. Strong brand of community. Yeah, yeah. It's, it's really cool. It's really, really cool. So you know, those are the three key insights. I love kind of like going backwards and like distilling what has worked for JWB. What's working now for folks to try to, you know, You know, obviously if you're going to invest in Jacksonville and real estate, and we believe that Jacksonville is a great real estate investment, we want you doing it here, but we recognize that people are going to invest in all sorts of different things. If you can start to pattern match, if you can start to pattern recognize, right? Like if you can ask questions around enhanced customer experience, what are the metrics, you know, like how do you win when I win? Talk to me about how you set expectations versus meeting them. Those kinds of things is going to help anybody. Talk to me about my dashboard and how I can make data just driven decision making. Talk to me about how you make data driven decision making, you know, like, and, and having those experience. And at the end of the day, the thing that you really can't fake is the community, right? Like if you're doing business with someone, like, you know, I think about we're the guys that are doing downtown with you guys
Gregg Cohen:gateway,
Pablo Gonzalez:not DLP, right? Like, like I look at DLP, they're in a different asset class. And they don't have a weekly internet talk show, but they're also event and community driven, right? And they've also core values, right? Yeah. And, and as I, as I, you know, spend more time in this world of real estate talking to other companies, because doing this here has made me kind of famous. Like I, I S it's very easy for me to start to recognize, Hey, are you guys doing this? Is this, is this in your DNA? And I think as a consumer, it's also, it gets easier. Once you have the model for it,
Gregg Cohen:it's interesting that like the third part, they're building a strong brand and community almost is like a prerequisite for, for doing doing, but we'll just say doing important business, right? When I think about how you're building for retirement, you know, that's a prerequisite now, because it is much easier to be able 10 years ago, 15 years ago. It necessarily wasn't a prerequisite for me when I was starting 15 years ago, 18 years ago, but that evolution now it probably is, you know,
Pablo Gonzalez:as I say, often the internet is the light.
Gregg Cohen:Yeah.
Pablo Gonzalez:Right. Like you can't, you, you, the more we, the more information is. Openly available and very fast to change hands the less you can fake the funk. Yeah, and you're really, you know, if i'm going to give you 75, 000 I want to make sure that you're legit Make sense to me Yeah, so so yeah, man, this idea of building a community is a big thing So just to kind of like put a button on it that eights that framework for success, which maybe we'll do another You know Another show on it, but like the eight step framework that Mackenzie describes is defining the vision, understanding your customers, mapping the customer journey, designing the experience, building a tech foundation, empowering employees, monitoring and optimizing, and then fostering community. As I look through those, I think we've talked a lot about all of them, right? The defining the vision, understanding your customers, mapping the journey, expectations, and experience, right? Designing experience, building tech foundation. Monitoring and optimizing and fostering community. We've, we've beat up pretty good. I think the one thing that we haven't really talked about is this idea of empowering employees, which to me is the number one, the first thing that I noticed, I was like, okay, this company is really legit. I really want to work here.
Gregg Cohen:Yeah.
Pablo Gonzalez:You want to talk a little bit about that?
Gregg Cohen:Out of the list that I was like, Oh, where do I think that we win the most? And that, that was the one that I think we win the most.
Pablo Gonzalez:Yeah. Why is that?
Gregg Cohen:Well, uh, it's the way that we treat our people. It's the type of people that we want to bring onto the JWB team. You know, we realized that when we bring the right people onto the team and we have those people making more of the decisions and more ownership of their roles, we all win. And it's always unique to me to, to see the, how the rest of the world works where, you know, many people want to keep the power at the top when they. You know, want, you know, they're, it's not always easy to be ascending in a role in, in many companies. JWB, we are looking for leadership opportunities for our folks. We are looking for decisions that our folks can make. And as they continue to build up their, their foundation and they continue to grow in their role, that next opportunity for them to make a big impact on the team is waiting for them. And we just, we've seen it now for 18 years that first of all, that's more fun. Yeah. Right? You bring the right people onto the team and those people have more fun. And that's why. Routinely, we get to celebrate 10 year anniversaries at JWB.
Pablo Gonzalez:Yeah.
Gregg Cohen:Where, you know, when you are on the team at JWB for 10 years, the company sends you on a trip, pays for your expenses. So we get to see that. So, and then of course, the way that this relates to our investments are, listen, there's no substitute for having somebody who is leading this organization. In your department, whether that's property management or client service or you name it to have that type of Longevity experience Talent in, in, in the seats that are making those decisions, not named me, not named the owners of the company. That's how we can deliver on the expectations to you over and over and over again. So couldn't be more proud of the people that we have here. And very early on know, our approach to making sure that those folks can continue to drive our business and realizing that the four of us were not going to drive our business for very long once we became established has meant the world.
Pablo Gonzalez:It is a underestimated, skill set and kind of like ability to do it. I think about our conversation this morning, just talking about my own business and like, how do I grow my thing beyond my brain power and my abilities? And it's something that I, that I really, really admire. And at the end of the day, you know, like I, I've talked about this idea that like, dealing with JWB is like walking into an In N Out or a Chick fil A, depending on what coast you live on. This idea that like, everybody that you deal with Leaves you in a better mood than when you got there is really, really important. I think it ties into the other insights, right? Like I don't think that you can deliver a great experience without a great team. It's really hard to collect consistent data and compound information without a reliable team. And it's impossible to build a community without a great team. So, you know, it, it all rings really, really true to me. And it was. Immediately apparent when I went to the first Tuesday morning meeting when you were like, oh if you want my business You're gonna have to go to this one hour all hands meeting and I wasn't looking forward to it And I ended up loving it. I do want to in the sake of transparency and everything, right? Leslie Wilson has a question. She's saying can you talk about recent employee turnover? Has has there been recent employee turnover? is that like a random data point that she's feeling or is is there anything about that?
Gregg Cohen:You know, we have 130 folks on the team. So, you know, of course there will be folks that You You know, unfortunately are no, no longer part of JWB for, for one reason or another. But no, there's no spike in turnover. Our turnover is largely consistent year over year. You know, what we really find when it comes to turnover is that our, our average turnover rates are not that much lower than what you might find across industry standards. Yeah, this is a really interesting point, but when you look at the type of turnover we have, You know, the turnover that happens within the one year mark is, we look at that as being an okay thing, okay, because what we realize is we're going to do our best to bring people into the organization. We're going to do our best to train those folks, but you're never perfect. It's never a perfect mix. It's never a perfect match. And what we have seen over time is that quickly, as long as we can understand quickly that that person is the right fit for the JWB organization and vice versa, Then we can make sure that we make that decision quickly. And so where we really win as far as turnover rates are folks that have been on the team longer than a year, longer than two years. staying and becoming, you know, tenured, very dynamic leaders in the organization. So, no, to answer your question directly, Leslie, there's no spike in, turnover recently. We, we have it, you
Pablo Gonzalez:know, every so often. That's an interesting nuance. So you guys have, you guys have a typical, you know, like, Generally standard turnover rate for companies, but the difference is that in under one year, it's normal But then the people that stick around here stick around a really really really long time
Gregg Cohen:Yeah, exactly. We actually when we look at our turnover in business planning every year we look at it We say okay What's the amount of turnover that we've had overall? And what's the amount of turnover that we had in the first year and we go through Everybody that has left our organization and we understand. Okay. What was the the reasons driving that what could we have done better as an organization or vice versa? And what we generally find is that it just wasn't a good fit for whatever reason and we look at that and say, okay If the organization and the culture and that and that teammate figure that out early Then it is, it's actually a win for everybody.
Pablo Gonzalez:Yeah. Yeah. Yeah. You know, it's like the, it's like the Buffalo herd mentality, right? Like if like the least happy Buffalo leaves, it just leaves a nucleus of happier Buffalo, right? Like and if you figure that, you figure that out, trying to take that one in, I haven't heard that one yet. Well, yeah, no, you, you figure that out. You're one, right? Like, like if the, the, the opposite would be people that are I'll say it differently. I've heard the business insights of the moment that you hire a B team player, then you start getting C team players on your team, right? And this idea that everybody here is an A player. the moment that somebody That somebody comes here and they don't necessarily fit in to like the values and the culture and aren't a total buy in You're able to identify it in year one and that means that like you no longer have the The zed right like the the person that's pulling against the herd Here long term that gets to build a compounding gravity gravitational force against it versus You come here within year one, you understand it, you move on, you find a better place that you're going to be happier in. And at the end of the day, everybody in this building is happy. And it also makes me think that, you know, for a company that's gone, when I was here, you were about 70 people and you broke a hundred, maybe like a year or two ago. And now you're at one 30. It would make sense that. because it's grown so much that that amount of year one people is higher than it was before. And therefore, Leslie feels that that could be the thing.
Gregg Cohen:Yeah.
Pablo Gonzalez:Yeah.
Gregg Cohen:It's, you know, turnovers going to happen, but I will say that one of the things that we really care about is not impacting the client experience, even though turnover will happen. So just in the last year to two years, we've implemented even more strategies so that if your teammate leaves that you've built a relationship up with, There are other teammates that have similar relationships with clients. So we have a pod structure for our client service team. Same thing for our residents as well. So, you know, we know turnover is going to happen when you have an organization of 130 people. But how do we do that in a way that doesn't? Distract from client experience. Right. That's what it all comes back to.
Pablo Gonzalez:Heck yeah, man. It was interesting to dive through that report with you, man. Yeah, we
Gregg Cohen:did it. It's good stuff, man. Yeah,
Pablo Gonzalez:yeah, yeah. That was super, super interesting. It's, it's been one of those things, like it came out like. Maybe like a month ago and it's been on the docket for us to discuss and we've just had other things to talk about But i'm i'm glad we we got to talk about it. It's been a love fest in the chat Like this week. I think this is going to be a chat that you're going to want to print out and like And show your team at tmm's but I just want to you know, tell the community right we had like a About 70 people here today. Never goes a notice that you show up here. And we just really truly appreciate that you take an hour out of your work day to like spend time here. You know, it's very honoring that you come back and like the things that you all say about it and the value that is provided. I want to remind you Thursday. We got the new the special webinar. I know a bunch of you registered very much. Grateful for that, looking forward to that. There is a question from my patron Santorios before we get out of here. GC, the Fed meeting tomorrow afternoon, rate drop, yes or no?
Gregg Cohen:Nah. Yeah, yeah. Ask me September though.
Pablo Gonzalez:Yeah, that's, that's, that's, that's the common understanding, right? Like it feels like it's not going to be tomorrow. Yeah. But it feels like next, like I, I, I saw a report that was like 80%, you know, the sentiment is like almost 100 percent that it won't happen this time, but like 80 percent that it's going to happen next month. So that is. That is the common thinking out there.
Gregg Cohen:But, but again, when the Fed, the Fed has signaled this. Yeah. Even though they don't have to drop the rate tomorrow at the Fed meeting. True. The market starts to move before. So that's why now is a really important time. Take a look at your plans of investing in real estate. If you have plans to add properties to your portfolio in the coming months, in the coming years, see what you can do. Get on the phone with JWB. See what you can do now. to take advantage of the incentive right now. And also because when interest rates do start to come down, we're expecting home prices to go up. And if you can buy those properties and accelerate the timeline on this. Then you'll be able to make more money. You'll be able to take further steps towards your financial future.
Pablo Gonzalez:And next week we are, you know, we just talked about all the good stuff. Like what's the edge next week. We talked about what could go wrong. ROI killers for turnkey rental property investors. I've been teaching this class for another. We're going to do like a version of that next week. I think it's going to be a lot of fun from now till then. Do you see any little bits of advice for everybody?
Gregg Cohen:Don't be average. See ya. See
Pablo Gonzalez:you Thursday, everybody.