BIGGEST RISK with Bill Kanatas and Ben Salzberg

J Darrin Gross I'd like to ask you Bill Kanatas and Ben Salzberg, what is the BIGGEST RISK?   Bill Kanatas I look at two different risks, one as an investor slash investment, and one is a developer slash development. Um, so if we're talking about the development aspect first, because, as I mentioned earlier, Ben and I spend our money up front first, before we go to the investors looking for their money, we do a lot of work upfront to mitigate that risk, and in any development, nothing ever goes perfect, as much as we think it's going to be great. It's not going to rain tomorrow. We're going to have sunshine for three weeks, and the bulldozers will be out there, and all sudden, we get rain for three weeks, and the holes we just dug flood, right? So you gotta be able to have that in your underwriting. Right? So when I tell somebody it's going to be 10 to 12 months, you know, I underwrite it 14 months, in case we have an additional four months of interest reserve or operational losses. So we try to mitigate all that risk upfront. When you're looking as an investor, slash investment. Then, you know, the advice I always give to my own friends is look at the first let's start with the development team, right? Do they know how to develop you know, whatever it is, is it a Starbucks? Is it self storage? Is it car washes? Make sure you're right with the right development team, or make sure they have experience, obviously. Make sure that you believe in the area. You know. Is there a reason to put one in Bosie, Idaho, or is there one to put it one in Manhattan, you know? Is there a demand for self storage? And then who's operating it? Is it the Bill and Ben show? Or is it, you know, an operator who knows what they're doing? Is it the first time they're operating? Or do they have, you know, billions of dollars of annual revenue in this space? So I think there's various checklists to kind of mitigate that risk. And then at some point you gotta say, I'm all in and and dive in and know that if there is any problems, your partners will communicate that with you, right? Because it's very, very important to always have communication, you know, with your lender, with your investor, with your general contractor, with the village. You know, Benz, an elected official. And when you're working with the communities, you have to perform. You can't tell them one thing and do something else, right? So communication for me is always the best,   Ben Salzberg And then I agree with you on that bill, you know, making sure the constituents in the area, which are mine and that they're they like what we're building and developing in the community, and to mitigate that risk of any type of Fallout, of people being frustrated, being built self storage in the neighborhood, um, you know, that's that, that risk. And of course, then there's, you know, you want to make sure that the job is insured in case somebody gets hurt, you know. And that goes with you Darrin, you know, you have to, you know, PNC, make sure that it's everybody's covered.   https://self-storagedevelopers.com/