In this second of a two-part episode, we learn how Black Swan Real Estate principal, Nick Stageberg, has used his financial savvy with a genuine concern for the well-being of his clients and employees. Together with his wife, these compassionate investors have set a great example for others to follow.
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Nick also shares his insights on the collapse of Silicon Valley Bank and how they were able to foresee it many years ago.
Key Points From This Episode:
- What should active and passive investors learn from his experience in the industry?
- What are his thoughts on the collapse of Silicon Valley Bank?
- How does he find different types of accounts?
- What has happened to his business in the past few years?
- How did he grow his team internally?
- How does he find the right people to work for him?
- What are some of the most important metrics that he tracks?
- How does he give back to the community?
“So a lot of real estate syndicators out there right now are in a challenging spot where they got a bunch of variable rate debt in the last few years, but we knew that rates were gonna go up and asset values were gonna go down.”
“If you had long term fixed rate debt, you might be able to weather that storm just fine. And if you had variable rate debt, you might be in a challenging spot.”
“My present self thanks my past self, that we made the hard decision to get that kind of higher rate at the time fixed rate debt versus a lower rate, variable rate debt. And this is going to hit every industry
“So if you’re not using real estate trust accounts, you should be, let me just say that you should be. And those accounts are really special accounts that are specially enshrined in the US banking system, they are exempt from FDIC limits.”
“You should absolutely be using a real estate trust account. That’s the practice.”
“That’s something we’ve been doing for quite a while long before the Silicon Valley Bank collapse, because we feared something like this could happen, we never would have predicted that exact thing.”
“So we’d been growing just organically with real estate a side hustle. And then real estate became our full-time main thing.”
“I had successfully built some tech startups before really focusing full time on the real estate business. So that gave me just just some experience of what it looks like to hire a lot of people to grow very quickly.”
“We built our property management company, so that I think of us as a property management-first organization.”
“We take every penny of cash flow that we get out of the business, and we put it right back into salaries. And that’s how we’ve been able to grow our team and scale our team so quickly.”
“We relentlessly focus on building the team, we do a tremendous amount of cultural team building. So every Monday morning at 8 am, we get our whole team together, everybody, and we dance, and we measure our team’s happiness.”
“We’re pretty fanatical about metrics. So that 8 am Monday morning meeting with everyone in the company, we have a safety transparency culture.”
“In a safety culture, you cannot get in trouble for reporting a problem.”
“What wakes me up in the morning is not adding more assets to our portfolio. If we add more assets to our portfolio, we can hire more people and we have such an aggressive training process in our company.”
“I can see how every single member of our team is becoming wealthier in every aspect of their life by being a member of our team. And I see it as a social good for us to employ as many people as we can.”
Links Mentioned in Today’s Episode:
About Nick Stageberg
Nick Stageberg is a career technologist with over 15 years of experience in the software development, architecture, and management space at Dell, Revenue Management Solutions, and Mayo Clinic. In 2017, Nick expanded his real estate horizons by obtaining a real estate license in Minnesota and now works with Keller Williams Premier Realty-Rochester to represent Black Swan Real Estate, other investors, and home buyers/sellers in real estate transactions.
Nick earned a degree in Computer Science from Oklahoma Christian University.
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