“On Aire Ep. 7 w/ Herb Krumsick – The Art of Industrial Real Estate Podcast” featuring Herb Krumsick
[Intro – Host: Team Jensen]
Host: all right all right hello listeners welcome to episode eight of on air the art of industrial real estate with Team Jensen we’re very excited today to have a very well-known industrial and just commercial real estate player from C from the Kansas City area out of Witchita Witchita Kansas we have herb kumsik with us the legend three time All-American herb we really appreciate you coming on with us today.
Herb: it uh means a lot that you took the time out of your schedule to come up and visit and and jump on air with us
Host: but just wanted to jump in and and let you kind of you know explain your interest in the in the real estate business and how you got started and let our listeners kind of know a little bit about your background and What Makes You tick in the in the business
[Herb’s Origin Story & Becoming a Millionaire]
Herb: I got I got to tell you an interesting one uh my dad fell 64 feet L on his feet on concrete when I was three didn’t work for 10 years we had a dairy farm and we were poor we had the greatest home life you’ve ever seen. seriously home life unbelievable so my uncle her I was named after him and he lived in Kansas City and uh I would go up to him starting like between I was 11 and 14 and every time I’d sit down with he’d say herb he said this is America he said you work hard you’re honest you can be a millionaire well my uncle herb wouldn’t lie to me by the time I was 14 I did not have one 1,000 of a percent question whether there was going to be a millionaire so the first thing you do mentor. ship is wonderful okay but I I’m not kidding you I knew without a doubt I was going to be there so I go to college and and I gradu with the 2.01 which is one 100th above a sea I was not a mental giant so I had I’m in the I played football wiaw state and I took an extra semester to graduate and I get a book in 1961 and it says 45 50% of the Money Millionaires made their money in real estate and this is no bullshit I go that’s good. good enough for me very sincerely so I got to work real estate so I’m working in real estate for six or seven years
[The Secret to Real Estate Wealth]
Herb: I decided. I was going to have to go get education no joke I went to 27 seminars in 36 months and most of them are a week or three days and what I wanted to do was find out the secret to the accumulation of wealth in real estate you had 50% of the people making their money how did they do it… well let me tell you basically what the secret is and and Dan you’ll remember this when I got in real estate business schol we used to sell for a 10% cash on cash yield okay and that was just your dividend rate. on whatever you put the money in well nobody knew what an irr was INF return was well what happened is real estate has four returns it has cash flow it has mortgage reduction it has appreciation and depreciation a tax shelter four are better than one okay savings has one bonds may have one or two depending on stocks have two sport fans. real estate has four real estate is the greatest Force saving program in America yeah the only reason I have money today for what I have is I can’t spend it I can’t otherwise I’d blow it… the secret of the accumulation of wealth is to understand the the come on the incremental difference in yields okay the secret to the accumulation of wealth is to understand the incremental difference in yields
[Power of Presentation & Specialization]
Herb: I will say this if you’re in the real estate business you’ve got to decide what your specialty is going to be uh I mean you really do yeah and and let me say this being. being a generalist in the real estate industry and being a generalist in practically any industry is difficult because you got so many people in the population that are Specialists that know more than you are right I would strongly recommend you become a specialist yeah you need to decide what your Niche is and stay with it… I used to have a. four three-page checklist that I would do and I would never present an investment till I had all the answers it’s I think a big part of My Success has been presentation… what happens then a lot of times when you go to an investor and you take him only six pieces to a nine piece puzzle he go okay I’m interested go back and get another three pieces you follow when you take him nine pieces you smoked him out
[SIOR Networking & Mentorship]
Herb: Nester senior Wan was the only sir in Kansas this guy was getting calls every minute and so Junior and I finally figured out we said well you know we want in that deal… so I taught the the course two where they SRS had to come through me right for 31 years yeah and I had two days that’s a long time yeah and I had a good line of BS still and for the record still do yeah still do so so anyway I and then I went to all the chapters so I I probably. spoke at Sr 130 times… si is the best secret kept secret America and the people that don’t get in it are naive
[Market Outlook & Advice for Young Professionals]
Herb: I think in the long run we’re headed for a lot of inflation more important than anything we’re headed for a lot of devaluation of the dollar the government whatever two trillion or more deficit this year… I bought a bunch of more RV parks and I’ve got about 20 20,000 a unit in them you can’t reproduce them for 30 to 40,000 a unit well I’m sitting there saying three or four for your some day I’m going to wake up… I will say with this the generally the way you do this is you get friends that you have confidence in and you all just do together nobody’s got any money I will tell you that the way I’ve made 85% of my money is I’ve been a promoter I go out and I I find the deal I get it under contract in my name I go to investor and I say. say you put up the money you get all your money back plus 8% then I get a third of the deal
[Wrap-Up]
Host: one last question yeah how do how does herb kemic hope to be remembered you’re going to love this but.
Herb: I um oh I I never think much about that sure as hell don’t worry about it um you know just hope that you know you’re honest integrity and and uh you know you want you gave back you know a little more than you took and uh I’ve had a wonderful life and I have had the unique opportunity to meet every S I bet you every one of them that was in had to go through me… I love people I just love people yeah you know and and uh so it’s it’s just really been a shot in the arm…
Host: well back back to just being remembered for you know en enjoying. being around people and I’d say you’re a pretty it’s it’s reciprocated you’re a fun and energetic person to be around and to learn from so but appreciate you coming on with us and uh I’ll see you in Chicago and excited to be out there with you
Herb: buy you drink okay I’ll be there for it thanks.
