Admin Bennett

Watch a piece of parking lot at Rockaway Townsquare be transformed into a Miller’s Ale House Restaurant.

My professional career and admittingly, my own personal life, has always been about doing more. Working more hours, completing more deals, giving more effort when I was worn out, making more money, having more meetings, adding more “to-dos” to my list. But as I have delved deeper into my journey of professional success AND personal well-being, I have realized that small can sometimes be better. And I have a lot of actual experience to show for that. The problem is, no one, nowhere, is telling anyone this. In today’s age of constant multi-tasking and media attention, the measure of success has become the more you do; the more you do.

Now, I will say that this topic can easily be argued in either direction and that my opinion of this approach is NOT an ‘ALWAYS’ scenario. There are times to go big but certainly not all the time.

After nearly 15 years in the real estate business which included working for larger regional brokerage companies to managing and owning a brokerage company with partners, I am where I am by design, by choice, and with purpose. Owning a boutique full service commercial real estate firm. The results? More professional success and much more personal satisfaction. You see, I chased the societal brainwashing that led me to believe the more you have, the more you get. The more staff, the more income, the more people on your team, the more “Available” signs you have up, the more listings on your website…the more success. But that couldn’t be further from the truth. Through my own life experiences, and A LOT of challenges and adversity, I have realized this. Realizing it and actually acting and practicing it are 2 different things, and you must do both.

Truth be told, and I have said this many times, “if you are doing it SMALL, you can do it BIG” …what do i mean by that? If you run a boutique real estate company, you can create the best analytics and pursue and secure the best clients and deals, you do not need to be BIG to do that…period! In fact, in the pursuit and execution of this, the client almost always gets better service by using the “small” approach. You can acquire a “small” investment property that maybe it’s “only” a 20,000 SF strip center or a 10-unit multi-family building (this is the small part) and do it “big,” by going all in and focusing on maximizing the performance of these assets with no distraction on other unrewarding things.

I’m in the middle of reading a great book, “The ONE Thing” by Gary Keller and Jay Papasan. It focuses on doing one thing well and cutting out the measurement of success by completing meaningless tasks that are on your to-do list. One of my favorite quotes (so far) is, “Activity is often unrelated to productivity, and busyness rarely takes care of business” …think about that!

Innovation

A word that many connect to tech gurus or Silicon Valley cryptocurrency traders. This couldn’t be more wrong. Innovation to me means; someone or something that adapts and creates a path that was not otherwise present. It is the single biggest and most relevant word in the commercial real estate space right now…yes, I just said that.

The real estate industry is innovating in all sectors; industrial/logistics/last-minute-mile going multi-stories, residential communities adding amenities, retailers creating an experimental brick and mortar experience, or co-working spaces in the office sector. There is NO doubt that the last 5 years have ushered in unforeseen, unimaginable, and unpredicted innovations in ALL real estate categories and it’s REALLY exciting. Why am I writing about this? Because if you understand the power of this word, accept it, and apply to your practice, you will greatly benefit.

From a personal perspective, the Company I founded, Bennett Realty & Development, is based off an innovative approach to the commercial real estate space. One that actively pursues principled development deals and offers third party brokerage services, all under one roof with all the analytic capabilities of a large brokerage company. Combining two typically divided practices in to one concept I knew was innovative and has offered a platform unseen from my experience.

The word INNOVATION is driving most of the transactions you read about and is touching every single sector of the commercial real estate space. Consider this; WeWork, the co-working giant, buys the historic retail building that Lord & Taylor has occupied for decades; in the Bronx developers are about to embark on the first EVER multi-level industrial building; suburban office parks once viewed as antiquated such as BellWorks in Holmdel, NJ is transforming in to a suburburbanism mecca; and lastly, multi-family projects are offering ride-sharing programs, Amazon lockboxes, and (coming soon), are launching co-living space scenarios. Imagine if you heard the above sentence just three years ago, you wouldn’t believe it.

Every day I am innovative. I accept and recognize that the basic practice is no longer applied to massive REITs, Private Equity Funds, Debt Originators, etc. etc. etc….you get the point. Don’t cut yourself short and associate this word with something it is not; reserved for “others” that don’t do what you do. Now go INNOVATE!

Bennett Realty & Development has chosen Charlotte, North Carolina for its second office location. Read press release here.

Construction Update on the newest Tommy’s Tavern & Tap location.

I learned early on that optimism is impartial on a proforma or budget.  Properly underwriting any real estate deal is perhaps the most critical part to a success.  Often you fall prey to the temptation of how good the numbers look if you make 1 small decrease in costs or increase in income, that the market has room to grow.  You manipulate the true return on investment (ROI) or cash-on-cash return and guess what???…. if it’s a reach, it’s a lie!!

I underwrite at least a dozen deals a week.  Some are development deals, which have slightly different standards, and some are value-add long-term investments.  While the standards may be different, the desired outcome is the same, does the deal work in the worst-case scenario!???  If not, we probably won’t do the deal.   Today, most deals don’t underwrite.  They’re over-priced and over-burdened by something that impacts them.  This is just the reality of real estate market.  That’s the part you apply your eternal optimism on, the challenge to find one that works, but NEVER apply that on your proforma.

Any proforma or budget has the same 3 components; cost, income, and return.  The thing about projected costs are they are almost NEVER right.  There is always a “thing”.  It could be a last-minute resolution compliance item of a site plan approval thrown in, like installing an irrigation system.  Or it could be an unforeseen amount of asbestos in the roof of a building you are buying.  Often these “things” come at a time where you are past the point of no return so stopping or bailing really isn’t an option any way.  The budget must be able to handle these overruns. Added costs could diminish the return and raising the income is likely not an option to make up for it.

The point is, hoping a “thing” doesn’t happen to your project or investment is a denial of reality, at least my reality.  It’s not a matter of IF, it’s a matter of HOW MUCH IS IT GOING TO COST, and can the budget handle it?   We are cautious and realistic instead of ambitious and over-anxious.  NO one deal is worth losing on, no matter what.  Underwrite your deals carefully and over time.  You’d be surprised how you look at a deal on Monday and then on Tuesday.  Be cautious but optimistic and above all DO NOT OVER-WRITE the deal!

It has been a while since I chose a topic to discuss in detail, but I think the current status of the overall market and what will come in 2019 is more than blog-worthy.  Any and every expert will tell you that we’re in the end of a bullish 10-year run in the market.  That no time in history has the market continued to increase; equities, stock market, real estate, etc.  The only difference now is that we’re facing a rising-interest rate environment and extremely low unemployment, so how bad can it really be, right?

We can discuss the retail market, multi-family market, or single-family market individually, but they’re all connected.  Most of the news in the real estate market is the FED’s monetary policy as it relates to rising interest rates.  Most are hedging (as I write this) that there can be up to 4 rate increases in 2019 alone. You see, even if 12 months from now that turns out NOT to be the case, the market is behaving and hedging for that event.  With the rise in interest rates inevitably comes a rise in cap rates, and a lower valuation for many property owners, right?  Maybe not.  Investors continue to see the value in long-term real estate investments, particularly ones that are internet proof and provide long-term cash flow.  Good assets are still rare, and supply is low.  With the stock market trending downwards, real estate will give you the best and safest return out of any asset class and it may become more sought after, even with a rate increase.  There will be more buyers looking at investment properties chasing a safer and higher return.

I’m not one for generalizing or predicting mass market changes as every deal and location stands on its own fundamentals.  If you can buy a 100-unit class B garden-style apartment community in Austin, Texas for below replacement value and in a high employment trade area, that’s a good investment, no matter where rates are.  Alternatively, if you can purchase a 3.5 cap rate mixed use building in Brooklyn that is solely being underwritten by 15-25% annual appreciation, that’s a risky proposition.

SO be aware of the capital markets, the trends, the internet, construction costs, etc. but don’t be paralyzed by it.

Good returns are hard to find, great returns seldomly exist, and bad returns can be avoided.

Be a “Lover” or a “Fighter”??  BE BOTH!

Maybe you have heard in your life that you’re either a “lover” or a “fighter”.  These words and assumed divisions are another example of a societal norm that couldn’t be less applicable in business.  The same way you have been taught about “home-work” balance.  In business you need to be BOTH; a LOVER and a FIGHTER.  You need to charm when necessary, be likeable, and genuinely operate with integrity….BUT…. and yes there is a BUT, when necessary you must also be a fighter.  A relentless pursuer of the goal.  One that won’t backdown to anything or anyone under any circumstances.

I just hung up the phone with a large utility provider whom we are seeking easements from for a new development project we have underway.  It is a pretty simple and common “checkmark” in a development deal, or at least it should be.  Its been a slog.  I have gotten almost nowhere with getting these documents done.  The first 3 weeks I was a lover…tame and accepting.  But this has gotten me nowhere, so now it’s time to adjust and become a fighter.  I won’t tell you the rest, but you get the point.  Continuing with a single approach all the time on 100% of the issues in business won’t solve problems.  You must adjust based on circumstances, priorities, attitudes, and people. 

I was 18 years old when I started my first business.  It was a mobile automotive, boat, and motorcycle detailing business.  We would travel to the client and detail (intense cleaning) their machine.   It took off but I operated it with pure GRIT, as a fighter would.  I took harder positions on things than I needed to and ultimately may have cut myself short.  For example, if it was 100 degrees in July with no shade and even the client asked, “do you want to reschedule”, what do you think I choose to do?  We NEVER cancelled an appointment, NEVER.  Making the “fighter” decision may cost me later in the week because I was too worn out to schedule another appointment.

In every business-related situation there are usually three ways to act; love, fight, or do both.  This concept has served me very well and established my reputation as a respectful but strong business person.  Like anything, it takes constant practice but the more you do, the better you get.  Get good at this and you’ll do more!

2018 was a tremendous year for our company.  We grew in many different ways and I want to thank our team, clients, family, and friends for the continued support.  It’s important to give thanks, and not just on Thanksgiving.  There is absolutely no way we would have had such a year without a PLAN.  A plan as in what you want to achieve AND how you plan to do it.  When I say a PLAN, I’m not talking about some elaborate thesis for your masters from NYU Stern for running a real estate company.  I’m talking about a real-life applicable PLAN that you really believe in.

You see, your mind can be convinced that because you spent time thinking of a plan, wrote the plan, and maybe even had someone review it, that “you’re good”, but the reality of it is, the plan is garbage and doesn’t mean sh$t if you’re not realistic AND disciplined.

I try to keep mine simple.  Every year I write down 3 or 4 objectives (not goals) and keep the paper in my top desk drawer, easy to find.  It’s nothing fancy at all, just something recognizable for me.  I reference it throughout the year, which I believe is the “secret sauce”.  At the end of the year I look at what I set out to accomplish and what was actually accomplished.  Inevitably, as things change throughout the year, there is usually one thing on the list that didn’t happen, but usually for good reason.  To keep it real, last year’s list had “hiring a junior broker” and ultimately, we didn’t do that.  For good reason as we brought on 2 seasoned professionals and another staff member plus 2 interns.  It didn’t happen because it wasn’t necessary.  That’s just the flow of business.  The other 3 objectives were “crossed off”—break ground on our next development deal, bring in experienced talent, and grow our social media platform (started the #BennettBlog and #OurWay vlog).

The pursuit of your plan must be nothing short of relentless, disciplined, and laser focused.  When you create your plan, you MUST truly believe in it or it is worthless.  You need to see the end in you head as you are writing down you plan. Imagine part of your PLAN is to move your office to a larger space.  As you include this in your PLAN you should see the color of the carpet, the feel of opening that new door, and the moral boost you are expecting from doing it.  See and feel the end.  This will undoubtedly increase the probability of achieving your PLAN.

Don’t overwhelm yourself with a 10-page plan of attack, you are not being graded and no one is judging you.  Make it work for you.  Start with Step 1, write the PLAN!  Then proceed with Step 2, which is referring to your plan throughout the year.  Every 30 days (12 times a year), I review the plan and I allow myself to make changes, delete some of the objectives and maybe even add a new one.  FLUID DISCIPLINE is what I would call it.  Now go write a PLAN!

Neutral is a threat to your growth, a hinderance to your success, and an unsatisfactory place that will bring you no abundance or happiness.  Seems strong?  It’s true.

There are times we all feel like we’re in neutral, I’d be lying if I didn’t admit it happens to me.  The question is what should you do to get out of that place and how do you continue to stay in DRIVE.  The later question being the harder one for me at least.  Drive is the medicine to mediocrity, the oil to the vinegar, and the….well you get it. Its how you combat neutral, otherwise another word for ORDINARY. 

As many entrepreneurs I’ve pretty much always been aspirational in business and many of you may feel the same way, but the question is how you maintain that level, or staying in DRIVE in BOTH business and personal life.  This is an “unlock” and ultimately, when figured out, brings abundance to your life.  Often the most overlooked idea is that you should somehow be in DRIVE during “work hours” and then turn it off during the weekend.  That’s BS!  Let me give you an example; you work your ass off all week on a deal to complete exhaustion, go in early and leave late.  You get it done.  Now you go home to your family on the weekend and your wife wants to have a date night but that same exhaustion that you overcame during the week you succumb to and ask for a pass or the patience you exercised on that deal during the week is now gone when dealing with your children.  That’s called DRIVE to PARK, it may be worse than neutral! 

Staying in DRIVE is heavily about experiencing new things. In 2018 I indevoured do that. Completed a life coaching program called ‘Build Your Life Resume’ by Jesse Itzler, went on a spontaneous last-minute trip with my wife, completed a Tough Mudder race (with my wife), and had 2 new members join the Company among a few.  I name these to give you real-life examples of what I mean.

The point is this; how can you possibly achieve more or get better without trying new experiences.  Itzler says, The more you experience, the more you have to give.

Wait until you see what 2019 will bring for staying in DRIVE!