Exclusive Insights from Globe St. Women of Influence

Heather Fernstorm Border (Panel Moderator) launched her firm with a partner April 1 of 2020. Alliance Global Advisors

• Height of Pandemic: Fought thoughts of - Not launching, halting, stalling - decided to go all in. .

• Service the investment management community by way of elevating best practices. So they can better serve their institutional investing clients.

Intent of Panel = is to leave you inspired. We also want to talk about what it really takes to successfully launch your own firm. And then continue to be successful with your own firm.

Concept of being comfortable in the unknown

Empowering one another. Supporting one another. That is what this Globe St. Conference is all about.

STATS

• - The US has 12.3 million women-owned businesses.

• - US women-owned businesses generate $1.8 trillion a year.

• - 40% of US businesses are women-owned.

• - Women started 1,821 net new businesses every day last year. 

• - 64% of new women-owned businesses were started by women of color last year.

  That is Progress

DeLea - Owner and Founder of Beck-Reit Commercial Real Estate, Beck-Reit Asset Management and Beck-Reit & Sons Civil Construction Company

“I fell into what I do” - not totally fair statement

My husband pestered me to get my real estate license, and I did to shut him up.

I did feel a void- I started in 2012 and focused on East Austin. There were few Commercial Brokers working in the area & zero had their offices there but me.  That void is gone, but I secured and fight to keep the title of Queen of East Austin. 

#EastAustin has been discovered now and is one of the #Trendiest  Neighborhoods in the Country

NOW - 2022 Women’s Initiative - besides my past clients - DeLea is only taking new New Clients if they are women-owned-business ( I will always service my past clients). Or if they are a female investor. It is a BOLD Move and to be clear - I really spend 80% of my time working my own deals.  So the other 20% is given to Women.  My way of “Putting My Money Where My Mouth Is”.  

Marissa: President in Co-Founder of Otso

The tenant financial experts in the industry. Helping Owners, Landlords and Investors offload risk and negate losses helps owners close that gap in the leases.

Background = West Point graduate. Did active duty in 06 and 08. In charge of over 100 People as the commander- going out. And now for the better part of a decade have been starting companies. Otso is her 4th business.

Melissa: Vice President Foundry Commercial

Industrial broker in Nashville. One of very few women that does industrial. Got started in the career in marketing. Transitioned over to brokerage because on the marketing side she was helping clients take calls. Was client facing, Pitching Business and clients were calling her when they had needs.

Back in Memphis was a junior broker working under a man. Then headed back to Nashville but did not take a book of business with her. Dilemma #1 - Who wants to hire this woman, without a book of business? Who wants to be industrial? With 12 years of experience. It was really an uphill battle to convince somebody that she would create a book of business and she'd do really well and succeed.

Get into the WHY

Heather- I was an investment consultant prior to the great financial crisis. My client’s oversaw pension funds & I reported to the directors of the pension funds. Pension funds were typically retired firefighters, retired teachers, etc. During the Great Financial Crisis they were reporting losses, substantial losses, 60%-70% losses. Within a 12-month time. The investment manager simply stopped taking calls. They would not report back to clients. I'm now looking at retired teachers in the eye and telling them this pension fund is 60 to 70% less than what it was a year ago. I felt like as an industry we could do so much better that is why we created our model. Drive best practices, reporting standards, and good investment strategies.

Marissa- Challenges around risk exposure. Two things are really frustrating. Challenge of underwriting, especially for small businesses. Number two ash that gap in exposure between what we are collecting in collateral example cash deposits and what is being put down in deal cost ie: commissions and tenant finisher, was really nerving, and then looking at the default rate. Says we went to the market-solving at Little Nish we came up with a product. And came up with a product or we could cover the gap. And ask for more.

Talk to clients and they said there's really great preapproval process but what about monitoring during the lease. Pet sleep monitoring is really nonexistent.

Added to the product with those in the more comprehensive solution now can monitor the asset and know the risks score. That is how we have evolved.

Melissa - Was working for senior brokers that were out playing golf and doing other things while she was doing all of the work behind the scenes

• I knew I could do it better than them, much better

• I bring a different perspective

• I am a woman-women are the largest consumers of what is coming out of warehouses

• Knew I could do it, knew I could do it better.

DeLea - I saw the movie - Equity from 2016 and there was a scene that summed up my WHY perfectly

• “I like money. 

• I do, I like numbers, I like negotiating , I like a challenge of turning a no into a yes.  I really do like money.  

• I like knowing I have it, I grew up in a house where there was never enough. Raised by a single mom OnlyParent.

• Not going to sit here and tell you i only do what I do to take care of other people.  Because it is OK to do it for ourselves.  

• For how it makes us feel . 

• Secure - yeah.  

• Powerful - Absolutely. 

• I am so glad that it is finally acceptable to women to talk about AMBITION openly.  But don’t let money be a dirty word.  We can like that too

Marissa - on evaluating what gets you out of bed every day…

• Thought back to Westpoint - wanted to Prove myself.  Started fundraising for 1st business in 2015- the only woman- didn’t have any women to model after- it was terrifying.

• Stayed at Westpoint - stayed to prove my grandfather wrong, he didn’t think Westpoint was the place for women, and then fellow male Westpoint students said I wouldn’t last a semester.  

• So many odds against you -and the discouragement you will get from men when doing things that are hard, like us.

• FEAR & Anxiety - I am a high anxiety performer.  But lately, I have changed my mindset.  Twisting fear to excitement- being excited about what doing and providing revolutionary products.

  Heather: Motivated to go out to Prove Self Worth - then develop track record - and then it gets less scary and gets REALLY Fun. Don’t have anything to lose anymore, get to play ALL OUT.  and get to work with the type of people that are your “People” spend time and energy with people you enjoy.

Melissa

• I like to WIN- I like winning.  Motivated by winning, don’t like to lose.  DeLea said - “yah- when your winning you make more money”

• Also - part of me wants to prove myself.  And also prove the people wrong that said I couldn’t do it.  Had someone at a large firm tell me I really need to stick with marketing.  So, to this day- I have turned it into Fuel for the Fire. 

• 2021- Top Industrial Sales Transactions in the Nashville Market.

• Markets are changing rapidly, where do you see opportunities?  How have you evolved your organization to be prepared

Current Economy and Commercial Real Estate Market

Marissa- Talk about timing.  Efficiencies and rising risk are in the market.  Otso product couldn’t be any better in timing

Melissa- will recession affect my business, should I be starting a business. There is never a right time to start a business.  Change Creates Opportunity.  Refer back to when COVID hit, was just beginning to build book of business, hadn’t been back in Nashville very long.  One thing I did- took to social media.  Started #CREChat - a national chat on twitter- that basically picked a topic and we discusses on twitter for an hour then followed up with a podcast.  Basically, had nothing to do with industrial, but was my creative solution to stay on top of what was going on across all markets

• Gave leg up

• Gave notoriety

• Gave national recognition

So think about little things you can do and implement - and skyrocket your business during time of uncertainty.

DeLea Opportunity

• Hallelujah the recession will be announced tomorrow, there is going to be an opportunity.  I assure you. Quote

• “People get rich when the market is going up, people get wealthy when the market is going down”

• Don’t let it scare you, just look for the opportunity.

• I’m huge a nerd. I study study study and watch people’s reactions and thoughts.  When the pandemic happened I was on tons of channels, CRE chat etc.  So I was watching what was happening in real-time.  I watch my colleagues- what are they thinking, what moves are you making?

• In brokerage - it is fantastic to know that most of those underwriters are young and haven’t “Worked” through a recession.  I heard the other day some just get the rent roll and put market rent in across it, never looking at the actual leases.  Wait till those start falling apart.  It’s not going to happen tomorrow, maybe 90 days, I am expecting the end of 2023.  I am looking at Beth Azor because she and I need to go buy something.

• We are encouraging all of yall to get in on the game. I hear Beth telling all of my friends they need to buy.  I am here too.  Let’s go buy buildings.  You are so knowledgeable about your market, your product type - that I am not. I want to tag onto you and let’s go buy.  Save some cash, cash is king.  That is the opportunity, don’t be scared.  As for starting own business - if you are in brokerage it is a perfect time - brokers are usually handcuffed by deals in the pipeline, some of those may fall out.  Get it Going, Take the Opportunity.

• Quote: “Good Times make weak people - Tough Times make tough people” - foresee such a huge opportunity

• Now is time to Play Nimble, be very clear about where you are spending time and energy.  Have a plan and 5 backup plans, because we don’t know exactly what is coming down the pipeline.  Pension Fund world- still have a lot of capital to deploy.  Asset managers still have an allocation to fill.  They will get very selective about their next moves.  Going through “rebalancing of portfolios”/ “Flight to quality” and getting rid of some sub-markets they didn’t truly believe in for the long term.  Qualifying each of the managers.  Being very specific about ESG and DEI goals and their manager’s goals.  Want to make sure they are investing in the right partnerships for the long haul.

3 Pieces of Advice

DeLea

• Sort out your money.  Need for overhead.  Plan for the worst and hope for the best.

• Plan for your exit, especially if taking a partner.  Due diligence on a partner like you do on a building - financial, legal etc.

• Stay Motivated - 90% of all business fail in 1st 5 years.  Have to jump out of bed from having the worst day prior and say “Im going to do it again”

• Habits - action- habits-charcter.  So that no matter what - everyday you are extremely consistent.

• Be honest with yourself.  Do you have kids and husband. Can they operate without you.  Can you miss 1st day of kindergarten and be OK with that- consider it all

• Motivated - Calculated and Consistent

Heather  -Those Bad Days

• Look at the 95% that is working in business, don’t just focus on 5%

• Stay optimistic

Marissa - co-founder & partner

• Make sure you are protected

• Talk to your customers all the time - why build something no one wants- super important in technology

• Entrepenuaral Roller Coaster - like a drug.  HIGHS and LOWS

• Lows- drove uber 4 years ago for a year to keep the lights on

• The hardness and dificulty of those moments is what makes the success so sweet

• Times like that are a gift, failures help you learn

• At the drop of the hat anything can change - can be spinning out on a nan issue and the next moment get a call that changes everything.

Melissa- I am not bi-polar but this business is.

• One day I am feeling really good and excited about what I am doing.  And other days I wonder what I have gotten myself into.  On those days I typically call a friend of mine, also in CRE, and she barks back all that I have accomplished so far.

• 1st 2-2.5 years - it sucks- it sucks so bad.  But come out on the other side and look at what I accomplished- staggering.

• Friend by myside- a mentor

• Broker Business only has upside - best entrepreneurial way to start

• #1 ABC - Always Be CLosing. I say - Always Be Learning.

• #2 Have to be a Story Teller - Stories Sell

• Story of your market, if fundraising - story of your business so they will invest.

• #3 Know your worth.  Good friend - Ken Ashley asked how much do you want to make in a year.  Say $1 million take home, so you have to bring in $2 million.  Divide $2 million by 260 days/year.  What is the worth of each hour each day. That is $1000/hour.  Make sure you are spending your time wisely.  Every hour of every single day.

• Be selective on a day to day basis

• Heather - Power of Contribution - giving back, charitable goals, mentorship etc.

Mentorship has made a significant impact and some now serve on my advisory board.  Company - committed to giving X annually to charity.  And they decided if they didn’t make it they would pay out of pocket.

BONUS TIP

DeLea - How to get efficient having lunch, coffees, meet with new people.

Stole a great idea from my friend #LinkedGlenn.  Any given week have 5-10 request from people wanting to meet for coffee or lunch.  Every Other Friday -  Bi-Weekly.  Everyone is invited and we have a roundabout conversation.  Where I get my boots on the ground information.  Some attendees might own businesses that are leasing and I get insight, or business owners tell me in more detail about different government initiatives that are affecting their business.

If you are in Austin - Come See Us! E.A.S.T Coffee

Finals Thought

Marissa 

Did not understand the Power of other women in my life.  It has changed my outlook and I feel more confident than ever before. Encourage you all to find your tribe of Mentors, Friends and #PowerBeacon s