“On Aire Ep. 7 w/ Herb Krumsick – The Art of Industrial Real Estate Podcast” featuring Herb Krumsick
🎯 The 4 Pillars of Wealth: A Masterclass with Commercial Legend Herb Krumsick 🎙️ Episode 7 of On Air with Team Jensen
In the seventh episode of On Air with Team Jensen: The Art of Industrial Real Estate, the team is joined by true commercial real estate royalty: Herb Krumsick. A legendary broker and investor based out of Wichita, Herb has spent over 60 years in the industry. Known for his towering personality, sharp wit, and deep involvement with SIOR (Society of Industrial and Office Realtors), Herb delivers an absolute masterclass on wealth accumulation, the power of real estate syndication, and navigating economic cycles.
💡 The 14-Year-Old Millionaire Mindset
Herb grew up poor on a dairy farm after his father suffered a severe accident. However, thanks to the unwavering encouragement of his uncle, he decided at age 14 that he was destined to be a millionaire. Despite graduating college with a 2.01 GPA, he read that 50% of millionaires made their money in real estate. That was all the convincing he needed to jump in.
“I got a book in 1961 and it says 45-50% of the millionaires made their money in real estate… I go, that’s good enough for me.”
🏢 The Secret of Wealth Accumulation
After a few years of inconsistent income, Herb became obsessed with learning the true “secret” of real estate wealth, attending 27 seminars in 36 months. He discovered that while stocks or bonds offer one or two forms of return, real estate offers four: cash flow, mortgage reduction, tax shelter (depreciation), and appreciation. Real estate, according to Herb, is the ultimate forced savings program.
“Real estate has four returns… If you miss on one, you’ll hit the other one. It is the greatest forced saving program in America.”
🤝 The Power of Promotion and SIOR
Herb reveals that he made 85% of his money not by using his own capital, but by being a promoter—finding incredible deals, locking them under contract, and pitching them to high-net-worth investors for a slice of the equity. He credits much of his massive network to SIOR, where he taught investment courses for 31 years, effectively mentoring the entire national generation of elite commercial brokers.
📉 Navigating Inflation and the Future
With 60 years of perspective, Herb believes the last three years have seen the most dynamic shift in values in his lifetime. Looking ahead, he is deeply concerned about inflation and the devaluation of the dollar. As a hedge, he is currently heavily invested in existing properties that are impossible to reproduce at current costs, such as RV parks, predicting that restrictive government policies will only make existing entitlements more valuable.
“I tell you what, if I were your age… when everybody tells you the world’s coming to an end, you buy.”
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