Blue Collar Yields

Traci Kelly is the founder of Kelly Greene Unique Wealth Solutions, an independent financial services firm focusing on specialized wealth building, tax, and legacy solutions for individuals and businesses. Their client commitment includes simplifying economic information and putting people in control of their own money to create goal-based growth strategies that not only thrive during the good times but also survive the rainy days when things get tough, and life happens. Advocating a proactive financial plan that advises a 3 to 6 months savings in liquid assets has gone a long way in helping to put her clients in a better place during the upheaval of the Covid-19 pandemic. Traci discusses the unfortunate timing of launching her own business just as the market crashed in 2008, the upside to experiencing adversity, virtual masterclasses to provide opportunities for women in the financial advisory field, the merits of the human touch over the robo-advisor, as well as good questions to ask when interviewing a prospective financial advisor.

Zack Widmann is the founder of ZHW Properties which focuses on representing institutional buyers in the purchase of self storage facilities.  He credits early job experiences and college internships with his choice of self storage as the asset class for his business.  Zack subscribes to the axiom that the least sexy real estate ventures can bring the best returns, and he describes the role of the acquisitions analyst, advancements in automation, cap rates, return metrics, compensation for the general partners, and the pros and cons of off-market deals.  He appreciates the stability of self storage as a needs-based asset class, and stability is definitely a relevant factor during these times of the Covid-19 crisis.  Zack offers observations on the impact of the pandemic in the self storage industry, such as decisions on exercising forbearance on late fees and lien sales and the acceleration of the existing trends toward automation as a way to achieve the required social distancing.

Join us for some timely insights from Mike Parlante on the landlord’s perspective in managing the Covid-19 pandemic. Mike’s diverse resume includes a career in the dental equipment industry as Director of Business Development for MidAtlantic Ortho, the owner of Capsule Products (an online store supplying Invisalign patients with on-the-go products), and he is the inventor of the Capsule Retainer Case. In the realm of real estate investing Mike is a partner at MDM holdings, and he shares the story of his journey: lessons learned, identifying desirable markets, hidden values, passive investing, attracting student tenants creatively using Facebook and Instagram, maximizing technology such as Venmo and PayPal to facilitate rental payments as well as Appfolio and Buildium to document landlord-tenant correspondence. Mike discusses his approach to decisions on seeking forbearance and sees open tenant-landlord communication as key during Covid-19. He is balancing his company’s on-going business commitments with flexibility and compassion to weather the crisis through well-documented lease modifications to meet the needs of struggling tenants.

In the 1990s, well before the Shark Tank phenomenon, Marc Kramer was tuned in to finding opportunities to bring angel investors and entrepreneurs together to facilitate investment in promising startups.  He founded the country's first formally organized angel investor network, which is now called the Private Investors Forum.  Marc is a veteran of successful startup companies and delights in developing his own business ideas as well as using his talents to help other entrepreneurs realize their dreams.   Marc discusses the difference between angel investors and venture capitalists, unicorn companies, the Angel Venture Fair, the ecosystem for entrepreneurship in the Philadelphia area, the economic impact of the Covid-19 virus, as well as thoughts on the economic rebound following the crisis.  Marc’s message is one of optimism, based on the history of our country and the creativity and resilience of our entrepreneurs:  “The smartest people in the world are sitting in this country, and they’re going to figure it out."

If you’re looking for ways to earn passive income, an ATM may be the way to go! Nate Herrick of Epic ATM shares his experience in this entrepreneurial arena, offering an overview of how an ATM machine works, start-up costs, the potential for a pretty sweet rate of return given the right location and demographics, and lots of great advice as well as partnership opportunities for new ATM investors. After the set-up work is done with an ATM venture, Nate describes the monthly administrative commitment as minimal, and he enjoys a ‘nine to five’ position as a Technical Recruiter seeking architects, engineers & construction professionals for SecureTek Solutions. This firm is currently expanding into the NY City area, and they tackle staffing for small projects to skyscrapers and everything in between. Nate also partners with his brothers in NAZ Capital LLC, a real estate investment venture with interests in the multi-family and self-storage sectors.

Steve Seymour regards real estate as a relationship business, where business connections are strongest between people we like, know and trust. His dad was in construction, and Steve caught the real estate bug young, even wielding a nail gun at age four, escaping injury and moving on to pursue sales, flipping houses and buying rentals. His first house flip was nearly a flop, paying high rates, working too hard, and reaping a low return; but he learned a lot, and learned it quickly! Steve is not a fan of the big box brokerage firms where he feels agents are caught on the treadmill of closing deal after deal to the betterment of the firm, with little regard for the agents. Steve created his own brokerage, Vanguard Realty Alliance which supports his values of putting the client first, while providing a collaborative work environment that empowers agents to pursue their own goals and achieve success.

Through some bad life choices in overspending and the untimely loss of a job, Alex Felice quickly learned what it was like to stress over money and face the consequences of living beyond his means.  As a self-described contrarian, Alex was well aware that he wasn’t going to find career contentment and resolve his financial dilemma by being tied to the tyranny of the 9:00-5:00 treadmill in a job he didn’t like, so he immersed himself in finding a path to pay down his debt and earn the freedom to live his life the Alex way.   Success in real estate investment gives Alex the leeway to do the things he likes best, and one of those things is sharing his real estate knowledge and helping others reach their goals through his blog and website, BROKEISACHOICE.COM.   He is candid in sharing the details of all his deals, offering readers the chance to learn from his successes and avoid some rookie mistakes.

For Palak Shah, successfully climbing the corporate ladder came at an unacceptable cost in work-life balance and having time to spend with her kids. After months of turmoil, the decision was made to become a single income family with Palak pursuing her passion in real estate and learning to grow a portfolio under the constraints of their much reduced financial resources. In this jam-packed and informative episode, Palak chronicles her journey into entrepreneurship in value-add investing and building a 4 million dollar portfolio, discussing strategies in project sourcing and funding options, targeting markets, screening tenants, women working in male-dominated industries, the gender wealth gap, and flexing your risk-taking muscles. Palak offers a wealth of information to investors on her website www.openspaceswomen.com, and although she does not downplay the hard work that comes with this choice, she has had no second thoughts on her decision to leave the corporate world and pursue her dreams.

Rod Stanback has come a long way from working two jobs to keep head above water to create his own successful business in investment financing, Flip Funding LLC., but there were some hard knocks along the way. Rod pursued his dreams by getting carpentry training, learning from each work experience, saving his money, and waiting for his chance to purchase a property to flip. That chance came with the market crash in 2008 when he bought two properties at steal-of-a-deal, bargain-basement prices. Only after completing renovations and having a property up for settlement did he learn that his steal-of-a-deal was just that; he had purchased property stolen through deed fraud. Rod shares his experiences in house flipping, the nightmare of deed fraud, the quiet title process, and his take on the misconceptions of hard money lending. Rod's business mission is to offer funding options and the kind of guidance he would have wished for as a new investor.

By Jason Avant’s way of thinking, his professional life has been devoted to the entertainment business in one form or another, beginning with his football career as a wide receiver with the Philadelphia Eagles. Sports and the entertainment industry go hand in hand in that each offers their fans a chance to step out of the realities of the daily routine and simply have some fun. Jason saw just such an opportunity for part two of his career when he opened Launch Trampoline Park in Deptford, NJ, with a focus on entertainment fitness through Ninja Warrior, rock climbing, laser tag, trampoline dodgeball, and basketball, arcade games, birthday parties, and corporate events. Jason discusses his preparations for entrepreneurship, believing in yourself and not listening to the naysayers, sizing up the competition, managing and appreciating his young workforce, reacting to new trends and keeping it fresh, the importance of organization, and much more on his move from football to franchising!

Understanding the legal aspects of investment opportunities is serious business from the investor’s perspective as well as for the sponsor of an investment. As chair of Parker McCay’s corporate department, Mariel Giletto is well-positioned to walk us through some of the steps individual investors should take when screening private placement investment opportunities and also discusses the legal aspects of capital raising. Mariel stresses the value an attorney can bring in helping the investor or sponsor get what they want out of the investment transaction without taking on avoidable liabilities. Shrewd investing and capital raising starts with understanding key concepts such as: seeking help in deciphering contract legalese and getting attorney feedback before signing documents, red flags in screening investment opportunities, partnering with a CPA to understand tax consequences, clarity in the waterfall provisions of a deal, preferred returns, subscription agreements, private placement memorandums, investor accreditation, alternative investments, the role of the deal sponsor, SEC requirements and much more!

Zach Dovner works as Corporate Counsel, and Deal Analyst on the acquisitions team at Eastham Capital, a private equity real estate investment business focused on buying, improving, stabilizing, and selling distressed multifamily real estate.  In this role, Zack is well-positioned to help us understand the basic structure of private equity funds and the ‘who’ does ‘what’ with regard to limited partners and sponsors in joint real estate acquisition ventures.  He offers his perspective on: screening potential sponsors, Eastham’s requirement of sponsor co-investment and ways to incentivize the sponsor in executing the business plan, value-add strategies, underwriting every new deal to stress-test assumptions, the challenges of the fundraising side of the business and the ‘keep smiling while you’re dialing’ mindset.  By far, the hardest part of the job for Zach is saying no to a potential investor whom you like and respect when the deal does not meet company requirements.

For everything you’ve always wanted to know about Opportunity Zones, Brad Molotsky’s your guy! Brad currently practices with Duane Morris LLP in the area of real estate law, and he serves as co-head of the firm's Opportunity Zones practice. Brad chronicles how this federally-established program became a reality, as the brainchild of billionaire ex-Facebook president Sean Parker along with bipartisan efforts of Senators Tim Scott and Cory Booker. Brad also compares his perspectives as an attorney in a big law firm with his experience as Executive VP and General Counsel for a large development company. 1721 is a project near and dear to his heart, a novel combination community for seniors and developmentally disabled adults in Cherry Hill, NJ. Brad notes that while there is a general affordable housing shortage nation-wide, the issue is at a crisis level with little to no availability for special-needs adults.

Construction is in Jordan Traenkner’s blood, growing up with his Dad, who has been a custom homebuilder for 40 years.  Traenkner Building Services evolved into a family business by blending their shared construction background with his brother’s roofing company and his own specialty of cleaning and gutter services.   Through their combined talents, they now have the experience and knowledge to take on just about any project and handle the work from the ground up. Jordan offers his perspectives on Instagram and Facebook as marketing assets, the importance of preventative maintenance to avoid costly repairs, and maintaining high standards in craftsmanship and customer commitment.   He shares his pride in the good name his family company has built over the years, and their focus on continuing and growing the legacy to include his nieces, nephews, and future generations.  Jordan looks forward to passing on the family values and embracing innovations along the way as the magic formula for long-term success.

“One of the most fun jobs you could ever have” is the way Dan Rhoton describes his role as Executive Director of Hopeworks 'N Camden where he works with youth who have survived, with their spirit and determination intact, incredibly difficult circumstances.  Hopeworks provides guidance to get them over the hurdles that could otherwise derail their futures.   Dan relates the mission of Hopeworks where trainees can learn technology skills, gain on-the-job work experience with local businesses, reside in their residential community called The Crib when needed, strengthen academic competency, and receive coaching in life readiness skills.  Dan candidly admits that he has no lofty motivations for working with the youth of Hopeworks.  Simply put, his reason is “It is so much fun!  Most folks go to the theatre to watch an inspirational movie with some life-changing event.  In this job, I get to be an extra in one of the best movies every day.”

Rachael Wonderlin has always loved older adults, and working with the aged is her calling.  She has a master’s degree in Gerontology and discusses turning her life’s passion into a successful dementia care consulting company called Dementia By Day.  Rachael’s company started as a blog, where she shared the stories that grew from her experiences working in dementia care facilities.  The blog garnered quite a following and became a book, “When Someone You Know is Living in a Dementia Care Community,” published by Johns Hopkins.  Rachael is definitely firing on all cylinders as an entrepreneur, with website offerings for customized consultant services for dementia care programs, staff training videos, a poster called “If I Get Dementia,” webinars, Care Partner Club calls, and a second book called “Creative Engagement.”  Rachael has even managed to work improv comedy into her repertoire with a workshop called “Agreeing to Remember.”

In some ways, Professor Victor Hackett likens the Opportunity Zones program to the “Wild West” for those who are not trained in seeking these investments, with the possible dangers of blind funds with no specific assets, large associated fees and a lack of expertise in fund and financial management.  Professor Hackett helps to tame the OZ “Wild West,” providing his insights on the program and sharing the valuable resource of OpZoneNation.  Victor is a Co-Founder of OpZoneNation,  a consultant advisory and educational services provider focused on the  Opportunity Zone Program.    Victor offers his differing perspective on the criticisms leveled at the Opportunity Zones around the ‘rich gets richer’ theme.  And for those who live in the OZ tracts, Victor recommends having a voice on local zoning and approval boards.  You have more power than you think if you choose to use it!

Professor Victor Hackett shares his expertise on the Opportunity Zone Program, established by the U.S. Congress in December 2017 through the Tax Cuts and Jobs Act. Victor teaches Real Estate Studies at Drexel University’s Lebow College of Business, with a professional background that includes fund level management, fund financial modeling, as well as real estate acquisitions, dispositions and project management.   In Part 1 the development of the OZ program is chronicled, originating as the child of a think tank in Washington DC, supported by Sean Parker of Napster and Facebook fame.  Victor presents some of the real life possibilities and examples of people from different walks of life who are creatively adapting their businesses to opportunity zone funds.   Professor Hackett also discusses the historical relationship between a significant market drop, yield curve inversions and probability of a recession.

The Joseph Fund of Camden originated through the vision of Monsignor Robert McDermott, serving as a new Pastor in the City of Camden NJ at a time of decline, with many residents firmly locked in the cycle of poverty and homelessness.  Early efforts in hospitality and respite for the homeless were effective and well-intentioned, but clearly not enough.  A hand-up through education and support to take the necessary steps to empowerment and self-sufficiency was the answer, not the temporary balm of a hand-out.  Jim Catrambone, the Executive Director of the Joseph Fund chronicles the mission and evolution of the fund, as well as the stewardship of the resources that are designed to ensure sustainability.  There are six ministeries that continue to transform lives and the City of Camden.  In Part 1 of the interview, Jim discusses Saint Joseph’s Carpenter Society, Child Development Center, and Joseph’s House of Camden.

Building and creating is a passion for Rich Lauletta, dating back to childhood, using scrap wood from his dad’s building sites to construct skateboard ramps.  He leaped from ramps to real estate following the concept of ‘working to learn, not to earn’ in a book called “Rich Dad Poor Dad” by Robert Kiyosaki.  Rich chose his first job after college at Wachovia Bank to gain the banking experience that would be most beneficial for his career path.  He tested the waters of entrepreneurship by co-creating the Philly Apartment Company, providing renters with a cost-free way to find apartments and owners with services to market their properties.  Rich shares his perspectives on private lenders, the BRRR strategy, portfolio lenders, accuracy in rehab budgets, post-renovation rents, and property management software.  Rich continues to innovate, investing in other asset classes such as co-working spaces and partnering with a team to develop an app called Rentbucks.

Have you ever sat through an incredibly uncomfortable long-distance flight, squirming around in the seat, searching for some way to get comfortable?  This experience was the inspiration for Brittany Cribbs’ invention, the Cloud 9 Easy Go Seat Cushion, recently featured in a Forbes article “Holiday Gift Guide 2019: The Best Gifts To Make Coach Feel Like First Class”.  Brittany searched the internet but found no solutions on the market, matching her concept of a cushion that would provide portable upper body support to enhance the flying experience.   A need was discovered, and an inventor was born!  Brittany describes her journey to entrepreneurship from the birth of the idea through distribution of her product and the steps along the way.  She touches on using the internet as an invaluable research tool, engaging an attorney to patent-protect intellectual property, state-side vs. international manufacturers, Amazon as a marketing asset, leveraging social media, using Crowdfunding to raise money, and avoiding inventors’ rookie mistakes.

If you would like to hear some helpful hints for college students, recent graduates, and professionals who are looking to transition into a career in commercial real estate, this episode’s for you!   Leticia Palillero is an analyst for the acquisitions team at CAPREIT, a leading multifamily real estate company.  Leticia describes the responsibilities of professionals working in acquisitions, including understanding valuation processes, screening and touring potential investments, using database tools to aid in valuation, applying key metrics in market research and value add strategies, working LIHTC deals, communicating with brokers and drafting letters of intent.  Additionally, Leticia has worked with dispositions, including the preparation of waterfall models.  She offers insights on the challenges for women seeking a career in this historically male-dominated field.  A ‘never give up’ mindset is one that separates the successful from the rest, willingness to go the extra mile until that door in commercial real estate opens for you.

Meet Mike Regina, whose partnership with his brother Ryan in their company Big Sky Enterprises has been successful in taking the meaning of entrepreneurship to a whole new level!  Mike discusses his roots in the construction industry, crediting their Dad for instilling in them the life lessons and work ethic that form the basis of their success.  He traces the impressive evolution of their company as they expanded their goals to become the full solution for their clients through general contracting, design, build, and financial procurement.   They further differentiated Big Sky Enterprises by becoming a resource in Global Post Auditing Solutions, where payment errors and duplicate payments are identified, and recovered funds are split on a gain share percentage. Mike shares his take on adding value for their clients and weathering the challenges they have experienced during their amazing journey, and he also offers his inspirational take on life and business through motivational speaking.

Today we talk with Rob Ransom, an attorney at Archer Law, who practices in the areas of land use, planning, zoning, real estate acquisitions, permitting, compliance, and affordable housing development.   Rob shares the story of his entrée into the business, as well as his deep appreciation for those who gave him his start through an internship opportunity, and he pays it forward by mentoring with Big Brothers Big Sisters of America.  Rob’s background includes working for a Washington D.C. based firm that specialized in mixed-use and mixed-income commercial development.  He saw an opportunity to bring his work experience back home to his roots in Camden and be a part of a city transformation that encourages growth and development while also supporting the interests of the people who live in those communities.  Rob touches on the relative merits of the LIHTC program, rent control, and opportunity zones in addressing the affordable housing crisis.

CamaPlan’s Ryan Fischer joins us on this episode of Blue Collar Yields. CamaPlan is a self-directed IRA provider that allows its clients the opportunity to diversify their retirement accounts through alternative investments. While traditional retirement accounts are limited to stocks/bonds, self-directed IRAs can invest in commercial real estate, private placements, private lending, tax liens, and more. Ryan discusses a variety of investments that CamaPlan clients hold, including some unusual investments like llamas and coffee beans. He covers the tax advantages of investing within your IRA and some of the potential pitfalls that lead to what the IRS considers prohibited transactions. Ryan explains what a back-door Roth IRA is, and how high-income earners can still contribute and invest with a Roth.   

Joe Scorese, a local real estate veteran, dives into how he got started in the business and how you can get started with no money. Joe goes over the market, the direction he thinks it’s moving, what deals are getting approved by lenders, and why these deals are attractive to capital partners. He talks about hard and private money lenders, what questions to ask private lenders, and how to make sure they perform at the closing table. He also goes over how much money is on the sideline, how hard and private money lending has changed, and how he’s focusing on different markets and asset classes. Joe discusses what separates him from other lenders, and the various ways he’s able to assist his clients outside of his capacity as a lender. One of the foundations of Joe’s success has been networking – he describes throwing networking events as a “slight addiction.”

Brian McGroarty is the Vice President of Business Development for CoreTitle. Brian goes over what a title company does in a commercial closing and all the players involved in getting a deal to the finish line. He talks about some of the title industry’s more archaic processes and how the title industry could be impacted by blockchain technology. Brian discusses what title insurance is and some horror stories about picking the wrong title company. Fraud is an unfortunate part of the title industry, and Brian gives good advice on how to spot a “fake” title company that can take your money and vanish. He even tells us a story about a 4-hour closing when an unhelpful representative for a title company showed up in board shorts, flip-flops, and a Hawaiian shirt. He plugs a couple of books that have influenced him and talks about how everyone has the capability to be a networking “all-star,” and what they have to do to achieve that.

JerseyMan’s Ken Dunek talks about life after pro football in this week's episode of Blue Collar Yields. He provides insight into the struggles he faced when he retired from football and how, in a matter of weeks, he went from signing autographs to having doors slammed in his face. Ken talks about starting a magazine amid the Great Recession, and how a party that was initially planned for advertisers of the magazine spawned a networking group called The Legacy Club and how it has grown to over 300 members. JerseyMan and the Legacy Club are run by the entire Dunek family from his wife, Terri, to his four daughters and how all of them play a vital role in the business. Dunek discusses what to look for if you’re starting a business and how he knew that the magazine was going to be a success.

Ren Cicalese is the managing shareholder of Alloy Silverstein, a regional full-service accounting and advisory firm headquartered in southern New Jersey. Ren shares with us how he went from a tax-time temp position to running a firm that includes three companies and over 50 employees. Ren’s specialty, amongst other things, is to help business owner clients maximize their profits. He believes in shooting straight and providing his clients with the best advice, even if it isn’t exactly what they want to hear. In the episode, Ren shines a light on the importance of work ethic by discussing his first job and the lessons he learned while working at such a young age. Ren discusses the tax benefits of investing in commercial estate and how 1031 exchanges build wealth by deferring income taxes. Ren has a number of professional athletes as clients. He talks about the advice he gives his athlete clients, the responsibilities he puts on them, and how he thinks there is not enough financial education in our school systems.

Meredith Harris is a Principal Engineer for Roux, an environmental engineering and consulting firm. Meredith walks us through Phase 1 studies and why they are crucial to the acquisition due diligence process for investors. She also covers the proper environmental due diligence you should complete on a residential transaction. Meredith goes over New Jersey’s Preliminary Assessment Report and the Licensed State Remediation Professional program.

Meredith goes over the potential dangers and escalating cost of closing on a commercial property without getting environmental studies done and what most lenders will require when you pursue financing. She discusses how most environmental issues are not visible to the eye and how a trained professional can identify possible issues that also help investors renegotiate with the seller once an issue has been identified. Meredith goes into detail about underground storage tanks, how most of them fail, how to remediate, and the escalating cost of removal.

In this episode, Ashley Coyne discusses how she started Heart Beet Kitchen, which has taken Westmont and Ocean City by storm. Ashley talks about her professional athlete patrons and how she picked the locations of her stores. Ashley talks about how she was working for the Philadelphia Wings when they were relocated to Connecticut and how her gluten allergies fueled her quest to start a restaurant in South Jersey. Ashley also speaks about her initial struggles with hiring, her chef quitting days before the opening, and the fears that came from buying used equipment from restaurants that shut down within six months after opening. Her product was like nothing the Westmont area had ever seen before, and because of that, she doesn’t have to pay for marketing as local media companies regularly approach her to do stories on Heart Beet.