Rational Decision-Making Is Important: Find The Right Professionals For Advice During COVID-19

Goosmann Law Firm : 0:01

Do complex legal issues hold you back, let's get energized and bring clarity to your top legal questions. This is Law Talk With The Flock by Goosmann Law Firm.

Jeana Goosmann: 0:24

Hi, welcome to Law Talk With The Flock. I'm your host, Jeana Goosmann, CEO and managing partner of the Goosmann Law Firm, author and business owner and I am so excited to help you today navigate your way through the law and your life as a business leader. And today in particular, I have with me a special guest and I would like to introduce Rocky Rehfeldt who is a Senior Vice President with the Loft Advisors in Sioux Falls, which is part of First Dakota National Bank. Rocky, Welcome.

Rocky Rehfeldt : 0:52

Thank you. Good morning.

Jeana Goosmann: 0:53

Good morning. I am so excited to have you on today and, thanks for joining me on the podcast.

Rocky Rehfeldt : 0:58

I appreciate you allowing me to be on it. So exciting for both sides, so I appreciate it.

Jeana Goosmann: 1:03

So Rocky, maybe you could introduce yourself a little bit and tell everybody, what do you do at Loft Advisors?

Rocky Rehfeldt : 1:09

Sure, yeah. Thank you. I'm a local, I basically grew up in the area. I had family that were and some other business endeavors, but I've always stayed around here I've been in a couple different institutions, worked for Wells for about 10 years, worked for First Bank and Trust for four. And then I've been at Loft for five now. We're the private banking and primarily focus on entrepreneurs along with the medical staff of people that, you know, it's not out mass marketing to a lot of people it's trying to go ahead and find the clients looking for the holistic picture. So From my end I focus a lot on debt and then deposits and making sure that we balance that along with financial planning. Both from an estate, you know, making sure you get the right partners involved and then taxed as well.

Jeana Goosmann: 1:53

You and I've gotten to work together firsthand a little bit on the Galleria project in Sioux Falls where the Goosmann Law Firms located. You're part of that project with me too, aren't you?

Rocky Rehfeldt : 2:04

I am, yeah. Fantastic. Building a great tenants.

Jeana Goosmann: 2:08

Well we've really enjoyed the Sioux Falls Galleria space and being over there on 69th and Western. So it's been fun to work with you on that too. And so right now we haven't seen each other since COVID-19 hit and I think a lot has changed and I just really wanted to have a dialogue on some of what you're seeing from your seat and I can tell you're actually in your office this week and maybe we can start there. What have you done at Loft Advisors as far as keeping your business open?

Rocky Rehfeldt : 2:37

Yeah, I mean, so I will reiterate. We've been open the whole time. For a period of time during the and I'll Briefly talk beforehand. The PPP loans that a lot of small businesses were looking for. We worked pretty much 24/7 for a period of time there. And we did have all staff in, in a very separate way during that period of time. But we went back to more of a normal one week we split the team in half. So basically half of us are in this week half of us are working from home. Ideally, we don't interact from a physical side of it, but we do a lot of other communication. So if something would happen to half the staff, at least we c ould t o remain open.

Jeana Goosmann: 3:19

Week to week shifts, right. So keeping you guys all strong and healthy that that's great. And yeah. Yeah, the new normal, we've all gotten pretty used to doing these video conferences and just working remotely. So that's great that you guys have been able to adjust like that at Loft Advisors and continue to serve your clients through that process. Speaking of serving your c lients, so what type of clients do you typically serve? R ocky.

Rocky Rehfeldt : 3:43

I would say most of mine are business entrepreneurs that either have likely, they've went through a couple transitions, they built a business, maybe they got to a mature point and then they sold it. Entrepreneurs always have the flair that, you know, it's never go sit on the beach and wait. So they're usually starting new ones. So we have families, I would categorize it. We don't look at individuals. It's more of the whole family side of it and from their end we're trying to handle all aspects of it. So primarily business owners that have had liquidity events. So we're trying to help them with the investment side too. But then managing through as they grow real estate portfolios or new businesses along the way.

Jeana Goosmann: 4:22

So that's a pretty energetic bunch of people and that you interact with that are in a lot of times they tend to be the ones, I think that see the opportunity when there's great change. Have you seen much of that?

Rocky Rehfeldt : 4:36

Yeah, I mean some of them it's two sides of it, right? I mean some people are all about protecting the assets and you know, making sure that, and I would say our number one goal along this as it's allowed the people that we've kind of focused on saying, all right, we need to have the balance sheet strong on all ends. So if something does hit, you are in an opportunistic situation. If you want to be. And, you know, we talked a little bit about the mental health side of it and then part of our end is as being a coach to a degree of saying, all right, we don't want to get too high or too low and look at it very analytically, and if there's an opportunity that arises, let's make sure we don't dismiss it just because of the time we're in. So yeah, to your point, yes, there are some people out there, whether it's real estate or other business items that are looking to make acquisitions.

Jeana Goosmann: 5:22

I think that there's just been a lot of uncertainty. And what have you seen as it relates to who's who's fairing well at this point in time?

Rocky Rehfeldt : 5:31

Well, I mean, obviously anybody that's directly in the essential, you know, whether it's produce or, you know, I was talking to a customer yesterday that is in the agg business and an area that I thought maybe we've heard a lot about some of the negativity in agg on the producer end with Smithfield and other things being shut down, but they're more of a kind of the middle trying to go ahead and distribute to customers and they've had real success and they've seen online pickups. I think all different industries. I figured out ways to buy different things. They're business is flowing so it's, it's hard to find a niche. I mean the ones that were hardest hit obviously are anything that's direct retail, the restaurant and then the hotel sector. So traveling are the ones that have been a real challenge, the rest of them, you know, they've really tried to figure out the entrepreneurial spirit of how do you win during this time and keep people employed.

Jeana Goosmann: 6:22

And, and keeping people employed. You mentioned the PPP. I mean, that was a huge part of keeping people employed for sure.

Rocky Rehfeldt : 6:28

It was, and it's, it's, you know, I think from everybody's, and it served its purpose. It's, it's one of those programs that I think outside of maybe the process of how we delivered it. It was challenging, I think from front line people. But it did get to the people that needed it very quickly.

Jeana Goosmann: 6:46

Unprecedented change rapidly coming through. Right. And we were joking too, they're kind of writing some rules after the fact, and it can be frustrating, but at the same time it's been very helpful too. So, it's a little bit of a mixed bag on that front as far as people that like to plan but we're finding our way through it one way or another.

Rocky Rehfeldt : 7:07

Very. it's a reactive side at this point. But yeah, communication's really the key of anything of keeping involved, if I do get information or if the bar is hearing information, making sure that we're talking and saying, all right, what do we know and how can we figure this out to make sure that we're in this position during this time that's ticking throughout the process.

Jeana Goosmann: 7:25

And I know you're really involved in real estate too. What are you, what's your insight and your crystal ball say as far as the real estate market in Sioux Falls?

Rocky Rehfeldt : 7:34

Well, the real estate market i n Sioux Falls is o verall stayed strong from that level. I mean, I've, I've had more people reaching out about buying t han selling, which I think is a good indicator of, you know, supply and the retail sectors. I mean, some of those have been hit from non-payment or tenants wanting to renegotiate. But I would say a lot of the businesses have stayed open and multifamily has stayed really strong. I think from just an overall lease up, it'll be dependent upon how much comes online over the next 12 months, 18 months. I mean, if this s low some things down, I think it'll just strengthen the real estate market from just an overall less supply coming on. But, o verall I feel really good about that.

Jeana Goosmann: 8:17

And sometimes in the Midwest we don't get hit as hard with the highs and lows. Right.

Rocky Rehfeldt : 8:22

I would agree. Yes. I mean, we're, we are spread out a little bit? We're not. So even still we think of Sioux Falls as a Metro area, but when you start thinking of it in comparison to the Chicago's, the New Yorks, I mean we have a lot of space which I think allows people to react differently to situations specifically. Like this where space is critical.

Jeana Goosmann: 8:41

A lot of times we have front yards and backyards.

Rocky Rehfeldt : 8:44

We do. Yeah. I can't imagine if you were just stuck

Jeana Goosmann: 8:47

And a side yard. Yeah, that's right. Social distancing is a little easier when you have a more expansive area and we have a lot of green space. It's not a challenge to find green space where we live.

Rocky Rehfeldt : 9:02

Exactly. Yes.

Jeana Goosmann: 9:04

So any tips that you've been giving people as they train and work their way through COVID-19 and how you're helping to advise your clients at this point in time?

Rocky Rehfeldt : 9:13

Yeah, I mean the number one thing is, I think we talked a little bit about, but I'd like to reiterate, you know, trying to make sure that it's an even keel on any decisions that you make. Don't make a mob based on how you feel or what you saw on the news that morning. Make sure we think through it, talk through it with your partners. I mean, I think that's the one thing that I think is reaffirmed with this whole process is that when times are good, you don't necessarily have to worry about the partners that you have because the business clicks along or the opportunity to just kind of go about. But when you need good financial advice, make sure that you find the right lawyers, the right bankers, the right accountants, that really can set time aside and then act and get it done. That's been, that's been a key component. And then it reaffirms balancing strength. So making sure we don't get over allocated, in real estate, but we don't have any cash because that makes us uncertain. And fear drives a lot of problems with that.

Jeana Goosmann: 10:11

Emotional decision making, right? Versus rational. And I certainly feel turn the news on, it's easy to go down that rabbit hole pretty quickly.

Rocky Rehfeldt : 10:19

Yeah. About 15 minutes. You could decide that you're g onna sell everything. S o yeah.

Jeana Goosmann: 10:24

Move to Montana in a hut. Exactly. We're trying to keep people from going down that path and so people can call you then, your clients and can get some of that reassurance and, and use that partnership too. I bounce those ideas off of. And maybe you've had to talk some people off the ledge a little bit.

Rocky Rehfeldt : 10:43

Yeah. And we have, I mean both ways. It's one of those that I'm sure they are calling you as well. And it's one of those situations where it's, hard, you know, because not every client's the same either on their financial position or where they are within their life. So being unique and actually talking through and saying, all right, if we're going to do this, here's the things that could happen. Both positive or negative, not just for the short term because that seems like, I think you know, I've made reference that feels like days have lasted weeks at times during this process and I can't see that, you know, it's not been that long.

Jeana Goosmann: 11:18

Well, I think that one of the areas we discussed that really picked up was the estate planning for us. We've had a lot more people want to do proactive planning and make sure that their affairs are up to date and in order at this point in time, just because people are thinking about those issues more today than they have in the past.

Rocky Rehfeldt : 11:37

And I think that's critical. I mean, having people like yourself that are sitting down and then also making sure that if they have some time they're doing the estate planning to make sure they don't get halfway there, that if we e stablish some of those living trusts that we get them all their assets in and it does require a lot of effort on partnerships to get that done. But w e w ere all in a position that allows people to really plan and not just think about today.

Jeana Goosmann: 12:03

Absolutely. Yeah. Well thank you so much, Rocky for joining me today and having this discussion. I've enjoyed having you on as a guest and I wish you well and keep your team strong and healthy and thanks so much too, for the advice you give to clients and helping navigate people through these uncertain times.

Rocky Rehfeldt : 12:20

It was a lot of fun. Thanks for having me on.

Jeana Goosmann: 12:22

Absolutely. Thanks everybody for listening and go make it worth it.

Goosmann Law Firm : 12:27

Thanks for joining us for Law Talk With The Flock by Goosmann Law Firm. We hope you feel energized and ready to soar past your goals. Become a Flock Fan and subscribe to our podcast for weekly episodes. Learn more at https://goosmannlaw.com/