My Adventures in Finance Real Estate: From Whistleblowing Fraud to Big Wins for Residents
May 28, 2024
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CFO Seth Zimmerman shares his real estate career challenges - witnessing Lehman collapse, blowing the whistle on fraud. Talks about metrics in finance real estate, role at REITs, creating wealth for renters, and bringing budgeting processes. Discusses love for modeling, finding great finance staff, and accountant recruitment challenges.
Financial stewardship in real estate involves navigating complex challenges and upholding ethical standards.
Unique metrics and individualized analysis are vital in finance real estate deals, emphasizing the importance of customized approaches.
Deep dives
Seth Zimmerman's Career Journey and Real Estate Innovations
Seth Zimmerman, a seasoned finance and accounting executive, discusses his career evolution from public accounting to finance leadership in the real estate sector. He highlights his role as CFO at Invest With Roots, a startup focused on impactful living experiences for residents. Through their unique 'Live In It Like You Own It' program, residents receive incentives for maintaining their living spaces. The company's innovative approach combines for-profit initiatives with enhancing residents' lives and attracting investments from both residents and accredited investors.
Navigating Financial Crises at Lehman Brothers and Startup Real Estate Companies
Reflecting on experiences at Lehman Brothers during the financial crisis, Seth shares insights on managing private equity real estate amidst turmoil. He delves into challenges faced in confronting financial misconduct, emphasizing the importance of upholding ethical standards. Additionally, he recounts a similar setback at a startup real estate venture, underscoring the complexities of financial stewardship in dynamic business environments.
Transition to CFO Role in Real Estate: Challenges and Metrics
Seth delves into the transition from accounting to CFO roles in real estate, emphasizing the critical shift towards finance and budgeting responsibilities. He discusses the unique reporting metrics and financial performance indicators crucial in the real estate industry. Seth elaborates on the significance of tracking key metrics like NOI and implementing data-driven decision-making to drive strategic growth.
Building High-Performance Teams and Embracing Tech in Finance
Addressing the importance of team-building in startups, Seth shares his approach to assembling dynamic teams focused on innovation and self-motivation. He underscores the value of technological advancements like Power Query for enhancing data management and reporting efficiencies. Seth's insights shed light on the evolving role of finance executives in leveraging technology to streamline processes and drive business growth.
CFO Seth Zimmerman faced a triple blow of tests in his decades-long real estate career. Firstly, he witnessed the Lehman collapse first-hand from within a real estate division of the famed bank (“We just got a call from our New York office, a guy in New York. He’s like, well, it’s done. We’re bankrupt.”). Secondly, being forced to blow the whistle when his CEO boss pocketed $1m into his bank account–the day after a $10m raise (the startup is now defunct). Finally, being the finance person when a developer absconded with $12m. “One of the things that I’ve learned is that when it comes to money, you never know what somebody’s going to do”.
In this episode, Seth Zimmerman, CFO at Invest with Roots, explains the core metrics in finance real estate and why things are never cookie cutter (“Every deal is, is different and you have to look at them individually”)
Zimmerman talks:
Life as CFO at Invest with Roots, one of the hottest companies in Atlanta,the only real estate portfolio that creates wealth for renters.
The role of finance at a REIT (Real Estate Investment Trust) – a security that trades like a stock on the major exchanges and reports to the SEC.
Blowing the whistle in finance when a former CFO pocketed $1m
Creating $700,000 for residents at Invest with Roots
Becoming CFO and bringing in budgeting and FP&A processes
Love of modeling and how I am using modeling skills to get into the multifamily space
How to find great finance staff +the accountant recruitment challenge