AI Live - Land Shark Mastermind

Good morning, everyone. 9 o'clock, a little bit after. Uh, and we are in the deal room today doing some deals with, uh, real estate and AI. I put this divider up behind me to see if it would help in cutting down the, like, echo, but I don't know if it worked. It's a little better. Reposition the microphone, probably. And how's that? Yeah, it sounds good. You have Kevin Stevens in. Perfect. Kevin, good morning. Love the Kenosha phone number. Milwaukee, Kenosha, home of Laverne and Shirley. Who knows that one? If you know Laverne and Shirley, you're old as dirt. You're asking us to date ourselves. That's not fair. Yeah. So, um, anyway, good morning. We are Sansar, our lead sponsor. Um, Catherine Bell, uh, Dr. Catherine Bell needs a doctor today. She's under the weather. So we are, um, working on projects for, uh, inside of the Land Shark Mastermind today. We're going to be looking at a couple of, uh, of deals. We're going to be getting caught up depending on who shows up. And if you got a deal, And want it, uh, want it ran through Deal Hunter so you can save days if not weeks on due diligence. Bring it to the table and we'll run a deal. So, and good morning to all the note takers. We run a note taker daycare. It's over in the attendees pile. So, um, all the note-takers, I'm hoping you're taking notes and that your, uh, your, uh, person is going to get value from reading your notes. So you better be good little note-takers today. There's Kevin. How we doing, sir? You're on mute, my friend. Still on mute. Little audio button at the bottom right-hand corner or bottom left-hand corner. Usually does the tricksy.

Tommy, I don't know, were you talking to me?

There you are. How you doing? Yes, sir.

I apologize. That was kind of weird. I came in and it was asking me to be a panelist and I thought I made a mistake there and I'd logged in and it asked me to do it again. So hey, here I am again.

Yeah, no, what it is is all of our guests show up as attendees and special guests get pulled up to the front of the line and we bring them in to interact and And tell us about what they're doing and stuff like that. So good morning to you, Kevin. How are you doing?

Good morning, and thank you. I'm flattered to be special today. I have to let my wife know about that.

Absolutely. Absolutely.

Yeah. Well, I come to you via Jason's group. I was there the other day and saw the fun you were having there. Actually just have a few minutes here, so I thought I'd jump in and see the crazy stuff you're doing. It looks like just a lot of amazing, cool, fun stuff.

Yeah, well, inside of, inside of our deals and stuff like that, it's fun. We, again, AI, we were talking about this as a team and realized that, you know, in 1965 when Generation X was born, the size of the capacity of what we have in our cell phones right now was what fit inside of a building. So like the computers of 1965 were, you know, not even a 10th of what I carry in my hand today. So we are the product of like this computer, you know, computer generation thing. And if there's anybody who's going to be enthusiastic about AI, it's going to be us. I mean, we made movies about it in the 1980s and '90s when we were, you know, like Weird Science. We were like literally trying to create AI back then. Like, who didn't want an AI Kelly LeBrock? Come on, you know? So every kid in the world was like Weird Science, you know? And so, yeah, Weird Science is reality today though, you know?

Wow.

And we do have the technology, we have the ability to do this stuff. So Figuring out how to do it is is going to be the is going to be the ticket to success for a lot of people. I just seen something very interesting as a matter of fact this morning they're releasing a video game called Grand Theft Auto Seven or something like that six or seven I don't know. Grand Theft Auto was created during the during the big push for video games and realism and stuff like that, and it's been criticized as being very violent. Violent, very like +21, like you shouldn't— you need to be carted to buy the game at the store type of thing, uh, because there's so much bad things written into it. But, um, one of the things I discovered was that, um, there's going to be millionaires if not billionaires born out of the release of this game because of how popular videotaping your game and, and showing your Showing you playing the game online, how popular that has become. These video gamers are going to become millionaires and billionaires. So the way I look at that, instead of scratching my head like my grandfather would, I kind of take a little bit of a different approach, more like my rich dad. And I go, how can I get their money and make money from their money while they have the money? Right. So scramble. Yeah. Getting them to understand, like, put it like we've had discussions and conversations with these kids, Gen Alpha and millennials. Millennials and Gen Z or whatever they are, and we've had discussions with them inside of the fact that they literally are not as tech savvy as you would imagine. So inside of that, it's like, oh, you know, we got to be we got to be looking at it wondering why are the kids not doing it? It's because to me, it's because they never had to work hard enough to figure things out. For us, like when we, you know, had to drink out of the water hose, we also figured out how to, you know, build, you know, build amazing things. And you can see that evidence of that now that we're older and have, you know, uh, adult resources to be able to do some of the things that we did imaginarily as a kid. So, uh, it's pretty cool. It's pretty cool. Good morning, Jude.

Hey, good morning, Tommy. How are you?

Very good, sir. Very good. I grew up with a buddy of mine. His name was spelled exactly like that. We called him Judd.

There wasn't two D's at the end? J-U-D-D?

No, it was J-U-D-E. Judd.

Oh, okay.

Yeah, it was what his mom called him, but it's actually Jude.

Pronounced Jude for me.

I like it. We're gonna call you Jude. Jude, I've got something for you, buddy. Do you mind if we share your investor survey results?

Sure, no problem.

Awesome. Well, we'll take a minute real quick and pull this up. Uh, Jude, uh, took our Land Shark Mastermind survey, and from the results of this survey, uh, we were able to put together a presentation form about, um, how to, you know, how to grow from those results. And the results basically gives Gives you the ability to understand how, you know, how his thinking would, you know, and path in real estate could leave every person, property, and community better than they found them. Okay, that's, that's what we base our surveys on, is this ethos. So inside of that, Jude's results came back saying that he's a A cash flow philosopher and a systems architect. And basically, when you combine a cash flow philosopher with a system architect, your your design is is basically going to produce a cash flow machine. Inside of being inside of being that he submitted his survey results, we feed that to my real estate investor. advisory board. And when we do that, we find that there's some other underlying structures that Jude fits into. Like, he's got the stability optimizer, like Warren Buffett style, a Benjamin Graham style, as far as his strategic learning. And then he's freedom-seeking, like Tim Ferriss. And so, with the archetype that he had inside of the cash flow machine and those supporting personality traits, The Gadson operating principle comes down to a scalable wealth engine. And so what it looks like is, you know, that Jude looks to acquire intelligently, stabilize the operations, generate the cash flow, systemize it, raise capital, and then repeat the scale, right? And go into it with a larger asset. We always do a SWOT analysis based on the results, and it shows that inside of Jude's program, you know, disciplined— he's very disciplined at underwriting system orientation. But where there's a counter to that is that sometimes that can cause analysis paralysis and delaying execution for perfected information. So to, you know, jump on opportunities like commercial value-add multifamily, structured partnerships, etc., some of the things that need to be taken care of is that Jude needs to be the leader and delegate, not be the one doing all the work. Operational labor for too long leads to burnout and failure of the goal. So navigating the blind spots, the tension matrix shows that if you desire meaningful growth, fast financial results on a $10 million-plus scale, While simultaneously demanding safety, predictability, and complete data, there's where you're going to end up running into your highest amount of issue, right? So, the key thing is to maintain that in order to create that financial freedom, the responsibility actually has to transfer over to other people. And so how does that look? Why commercial and value-add multifamily fits the Gatson DNA results. Systemized operations, visible cash flow, modeled downside. Okay. Meaning that with the underwriting that you do, you're able to see where the failures come in and mitigate. And then replicability, meaning that you can do this over and over once you get that system because your system's an optimizer. Proof of concept is important. So the acquisition phases is in a standard investor mode. You know, you got focus, risk management, capital strategy. A lot of people like follow hype and trend, whereas Gadson approaches deep research. Some people mitigate worry about risk blindly by using pro formas. Gadson's like, I'm stress testing everything. And then the capital strategy inside of leveraging reckless smack. leveraging recklessly to maximize the growth. The Gatson approach is a lot wiser. Debt partnerships that make sense and moving that ball forward with a team approach. So, proof of the concept, the scaling phase means that if in phase 1, your current state, understanding everything, you're driven by the need for certainty, but the result is high control with limits, Which limits your scale and personal bandwidth. Transitioning to phase 2, which is the choke point, you got to start— it's suggesting to start doing delegating responsibilities before you get 100% comfortable. It's kind of like, I call it white river rafting. As long as I got the life preserver on, let's go. Phase 3 includes building accountability around everything done at that point. You know, the system actually works. You prove the system works. And now what you have is, you know, the ability to move into $10 million capital syndications, even $100 million. The master plan is to have a trajectory to total autonomy. So we provide you with a, you know, step 1, 90-day blueprint, a step 2, 12-month business plan, and then a step 3, 3 to 5-year trajectory scale and capital growth program. So which ends up with the pinnacle at a mandate of $10 million in free flow, free cash flow, and a raise of $10 million from investors. So your 90-day blueprint looks kind of like this: build the engine, define your criteria, build the model, master the integration. So what does that look like? It means to establish your parameters around a commercial multifamily that fit your cash flow philosophy profile. Develop the Benjamin Graham-style underwriting framework to stress test all your live deals and then leverage the Land Shark Advisory Network to overcome analysis paralysis. It's why we have this every day at 9 to 10. It's kind of like going to the gym, right? So inside of that, we move from Q1 out to Q2. We want to try to get you into your first major acquisition, maybe even if it's just in a joint venture deal. Optimizing to implement repeatable management systems over to Q3 to pivot into transitioning from doing the labor to managing the platform and then transferring responsibility to capable people who get you to Q4, which is mastermind integration, utilizing the community to stress test your operations and prepare for foundation raising outside of outside capital. The five-year trajectory on your scale and growth is you know milestone one is to syndicate the proven model successfully.

Mm-hmm.

Success is done at a $10 million raise. Milestone 2 is to take the portfolio throwoffs and put it into replace your W-2 and push toward your $10 million of cash flow growth so that by year 5, 3 to 5, you're at this milestone of the summit where you're literally taking control of your time, your schedule, your location funded by a system that you built. So bridging the gap and overcoming this friction comes from mastermind community, trusted advisors, proven framework. You're at this baseline right here, analysis and tension, and you want to get to the outcome. You have to cross that bridge. So in your own words, success is a lousy teacher. Both wins and losses are important to learn from. Bill Gates, right? So, um, the blueprint is built. Now build the machine. Join our mastermind or the 7 Streams Investor Club, and you can figure out what to do. Uh, about what you got going on. So that's what it looks like to take an investor survey. How close was that to, to reality for you?

Yeah, pretty much there. I mean, I, I still recall, uh, the questions and answers, and, um, it's sort of right in line with, you know, where I'd like to be and, and my inputs. So it's, um, pretty, pretty much there.

Nice. Yeah, we, we, we've anticipated, uh, when we, when we created that survey, as it would be almost like a 4- I'm a fortune teller type of thing because again, some people don't understand, but I come from a background in nursing. And inside of nursing, we were trained to administer assessment tests that range from assessing somebody's what's called Glasgow Coma Scale, see if you're alive. There's a step and a procedure and an algorithm to doing that assessment. Inside of what I created for the Land Shark Investor Survey, I took a very popular personality test and I removed the personalities and I installed avatars. And in yours, I believe your avatars were the cash flow, which is going to be Robert Kiyosaki, RK, right? You probably statistically, like out of the 80 people that have done these surveys, anyone that has an RK, red Rich Dad Poor Dad. Am I wrong?

Well, I have the book, yeah.

You have it, but you didn't read it?

I didn't read the whole thing.

So you read enough of it to know where to get started, I understand. So make sure you're in the show Friday at Friday Night Lights. We're gonna cover how to consume educational material so that you can get better at it. But the other personality you had was GK, which is Gary Keller. And Gary Keller wrote the book The Million Dollar Real Estate Agent. And so he also started Keller Williams, which is a multibillion-dollar real estate company. He started it at the same time, or he started around the time of other brokerages that were starting up. Most of them were like Century 21, RE/MAX, stuff like that. And Gary Keller came out of nowhere with KW and took over a massive market share nationwide when real estate was really not very popular. And so reading his book, The Million Dollar Real Estate Agent, at the time I was a commercial real estate agent and I was able to see that I needed to do some things to get to the other side of that.

Okay. So yeah, I'm gonna have to look into his books as well.

Yeah, and that's why we do the, the, the survey that way, is so that you know who to go back and learn from too. Like, how, how did they do it? And if your brain works like theirs, then it's possible that if you read what they did, you could possibly do what they're doing.

Okay, that sounds good. And like you said, um, you're going to show us how to, uh, sort of summarize books to, to gain knowledge quicker on Friday, so I'm looking forward to that as well.

Absolutely, some amazing things that we get accomplished over there. Inside of that, I want to introduce everyone to my real— actually, over to my virtual executive board. Inside of real estate, I've got what's called an REI board. Members of the Land Shark Mastermind are given the opportunity to get an REI board, and the REI board is actually who we built our uh, our survey around. And so board members are in the— are my board members for my virtual real estate board are actually the, the characters inside of the, uh, or the avatars inside of the, the investor survey. So I've got Grant Cardone, who's big into the scaling and capital. Robert Kiyosaki is a cash flow wizard. Pace Morby is a creative finance guru. Cody Sanchez is a contrarian investor. If you don't know what that is, she basically buys boring businesses and just blows capital up by buying boring businesses. Catherine Bell, sponsor of the Land Shark Mastermind and the Titan Impact Group. Catherine Bell is a conscious capitalist. Steve Trang, he's big into operations. He's a huge Multifamily guy. Gary Keller is big into systems. Like I said, was talking about how he can grow something out of nothing, basically. So I use these guys to do a variety of things. In this example here, we were actually— I asked them to review the plans on a building and review the documents with me so that we knew like where we were at inside of this program. Like we had bids in there and like what the site plans were, what the grading and drainage looked like. And so introducing this to virtual board members allows the virtual board members to pick out and find things that I would not normally see. And so it reviewed all my documents and came back with a virtual executive board opinion that allowed me to understand what I need to start worrying about for the next big thing or what, what I might have missed, etc., etc. So if stuff like that interests you, Land Shark Mastermind helps people achieve these types of things. Like somebody said the other day that like we have teaching courses. No, we don't. We, we administer tools to get work done. So, and in that regard, we're gonna go look at Deal Hunter by Land Shark real quick. Um, I'm gonna pull a property out of my— out of one of my— who has a lot of email addresses? Anybody here? I have a lot of email addresses. Like, this is one of my email addresses right here. Um, this is, uh, from My early days in Arizona, 3AZ Buckeye was actually where I was getting most of my deals from and had a lot of success with some of the deals that came in. So we're going to go deal source real quick right here. This is a company local to us here. They sent this yesterday to me. It's a fix and flip in the 85254 area. It's a pretty, pretty decent area right now. Says that the all-in price is at about $550,000, and it's saying that that includes the rehab. Okay, so the what they call the NPO is the net. What do they call it? The net profit, net price, net. I don't know. It's their what they think it's going to get ARV. They don't like to call things ARV, but. Anyway, what I do is I come in here, I select, uh, I can copy the whole thing if I want to. Uh, it says view inside of my browser. Usually what I like to do is I like to, to print this. I don't necessarily need, uh, all the information there, but I can copy everything like that. Bring it in here and I'm going to drop it in my Deal Hunter and I'm going to, uh, bump it down a little bit and I'm going to tell it— I'm going to give it the key, the key prompt. It's a hard one. Run this— got to make sure I spell it right— deal. That, that is the prompt. Like, don't add nothing else to it. It doesn't work if you do. You hit the enter button, and what it does is it sends out and starts running 27 different level checks on the property, and we'll get that information back really, really soon. As a matter of fact, sooner than most realtors answer the damn phone. And that's why I built this thing, right? Titan Impact Group had a massive amount of available resources to me as a contractor, and we built out some amazing things. So we're super, super excited about, you know, introducing it to other people because it'll bring us deals. If you can find a deal and run it through Deal Hunter and it gives you a go or a thumbs up, like, we're ahead of the game by days, if not weeks, right? So we ran this one yesterday. This was that multifamily, I think, that you, you told us about, right, dude?

No, um, I actually mentioned running a multifamily, but, uh, we didn't get to do one yesterday.

Oh, okay. Well, we can do that today for sure. Do you have an address?

Yeah, could I just send you, uh, could I just put the link in the chat for the— what, offering, or you just want the address?

If you have information on the offer, we'll use that to validate and verify the information this thing produced.

So I'll just drop it in the chat. This is— let me put it here. Let me put it here. It would be I actually have the, um, the OM and—

Okay, great. And is it a, uh, is it a PDF or something? Yes. Um, do you have my email address? I think I sent it to you yesterday. You can send me—

Oh yeah. Okay, I'll shoot it over to you.

That'll be great. All right, let me do that right now. Yeah. And yeah, Luke, I see Luke put in there NPO stands for nonprofit organization. It does in some cases, but not this one. So what do we got? Golf View Flats. Here's the here's the deal here. And so we can just oh Sunrise, Florida. I love Sunrise. It's a great nice little spot. I really like— I really love— I lived in Florida for over 24 years.

Oh yeah?

Yeah, great spot. Okay, so we got some numbers, we got some pictures, we got the Contact Us stuff right there. We got a Doc Center, so all of the docs are going to be in here, right?

Yeah, and I sent it— I sent you the, uh, I actually sent you those documents.

Okay, you already got them, huh?

Yeah.

All right, so what I'm going to do, I'm just going to use the address because we can come back and visit this in a minute. Come over here, drop that in there, and I'm going to tell it to again run this deal, and we're going to get that cooking. Let that cook, and I'm going to drop back over To my fix and flip because that's done right here. 50 seconds, less than a minute. We got a Deal Hunter report on 7012 East Thunderbird Road in Scottsdale, Arizona 85254. So on this one, it says the current MLS listing is at $579. And the deal price supplied is $550,000. And what they're doing is they're giving us a rehab supplied of $150,000. So it's not— it's— I mean, at that point, basically what they're saying is they got this house for like $400,000. Okay. So what it's saying right now is that we want to renegotiate a little bit at $550,000 acquisition price plus the $150,000 rehab. It's a no-go because of the fact that it makes it $600,000, $700,000, almost $800,000, right? So all-in price, $550,000. They're thinking that it's going to be like, you know, closer to $700,000. And so my suggestion is we buy it at $550,000 all-in with the rehab tied into it. So that would make way better sense than any, you know, anything else. So, um, but even if they— even if this did include, like, if it was $700,000, what they're thinking is that we're willing to take a, uh, $100,000— what if it sold at $875,000? We're going to take $175,000 margin at that point. So if we, if we were able to pull $175,000 margin at that point, yeah, okay. But the comps are showing a little bit different. Right. So the high end is at $925,000. Not, you know, not to say that $875,000 isn't doable because that's maybe doable. So, and the low end's at $840,000. So there's those flip economics right there for you. Acquisition, closing, and all that, you're still base case looking at a projected ROI of 5.8%. So the, you know, the $550, the rehab, all that, and that's assuming they, they did a good job on the rehab there. That's assuming they're, they're— this rehab is pretty low because based on, based on the square footage of the property and that $150 price tag, I don't think we're getting a lot of work done. So the stress test shows how to, you know, Mm-hmm. Uh, to handle this rehab review shows about $80 a square foot. That's what I was just talking about. This house is 1979, old wood frame construction. Okay. It's got an old-ass pool. Renovation scope has to include like roof foam, you know, condition. Like if this is a flat roof, which I think it is, uh, it's got roof foam that's probably gotta be tore off and put back on. Right. And so when you got to do all that work, it's like, oh crap. So let's go see if we can take a look at it and peek at it real quick. Yeah, look at this place. Oh my God, it's, it's rough. It's rough. So, but they're saying they got it at $550,000. I'm betting they got it closer to $500,000 because this sucker ain't pretty. So, but good, good area. Definitely a good area. But that kitchen— I want that phone though. Who doesn't want that phone, right? So, but it looks like it's on a pretty, pretty major road. I mean, Thunderbird is a major road, and that does a lot of, uh, setback to the price too, because to get in the freaking driveway, you got to be a pit— you know, like, you got to almost be like a stock car driver, you know, and, and pull into pit road really fast.

Look at that.

Oh, wow. You go as fast as you can. Just slide in there. You need a turn lane for your driveway, buddy. So, but we were looking at this, and I'm gonna get— I'm gonna, I'm gonna be a little bit, uh, interested in it because of one thing. See here across the street? These are the bigger lots, but these are the smaller ones, and the houses are smaller. Here's where my brain goes. See how this, this, the front of this house, there's a lot of, of— oh crap, what happened? Come back, open up, come on. So you see how the front of this house is really wide and it's got gravel and stuff like that on it? If we literally cut this curb down and made this all pull-in drive-in right here Anybody seen these old places turn into like doctors' offices and dentist offices and lawyers' offices? And like when I was growing up, we did this in a place called St. Charles, Illinois, and it was a busy road that eventually ended up having all these giant like road expansions, right? And they did all the road expansions, but in order to get You know, full use out of this as a as a house. It was not. It was not conducive. Traffic was horrible. It was loud. It was congested, and it's just it's just bad. This house is on a corner, or no, it ain't. I was hoping it was. That one is. This house is off the corner, and it looks pretty. But this is you know, this is the one that they're selling. So if you clean all that up in the front. I would not sell it as a house or try to fix it back up as a house. I'd convert it into an office and make it into an office. And it's 1,800 square foot of office. So let's, let's do this. Let's get rid of that. We'll jump back into this chat. We'll go down to the bottom. I'm going to start cooking on it because it's, it's talking about the flip economics on it. There's no way $80 a square foot is going to save that place. At all. So looking at all the, you know, results of it, it's path 1, maybe path 2, maybe path 3, creative structure, capital stacking, red flags, many SWOT, negative strategy, uh, the ARV might not be defendable in that position. So lowering the price considerably down to like maybe $500 You know, would be easier. So, um, renegotiate is what it suggests. Here's where to try and hit them. And then understanding that the recommended ARV is kind of high. So here's some next actions, you know, that it suggested. But what I'm going to do is I'm going to throw a prompt at it. Now we're going to, instead of just run this deal, I'm going to get it to do some things. Um, Control+D. Oh, it wants Ctrl+Shift+D. Okay, what I need you to do now is look at this as an opportunity to, um, convert this business— convert this property into a commercial property and run an office out of it and have like a doctor's office or a dentist's office. Turn it gray shell for, uh, the fact that it's on Thunderbird And it's congested in a busy area. I think this road and this side of the street is going to start converting over to those residential repurposed properties that become commercial office. And so we're going to let it, let it think about that and go back to Dude's deal and look at it real quick. Run that deal. So here's the, here's the deal that we got from Dude, and let me, let me do a side-by-side here. Come on. Okay, so in our side-by-side, it shows that it's, um, 72-unit Class C. That's what it's calling it. I mean, it's Um, got 4 stories. Sounds about right. And it's on 3.24 acres. Again, sounds about right. So, um, going through here, it's showing that the CREXi report shows 95% occupancy and an average in-place rent of $2,110 a month. So, Conditions, uh, going with conditions is that, uh, it's worth pursuing but not at any price. Offering, uh, open offer— opening offers at $13.5 and the target acquisition $14 to $14.5. So maximum preliminary safe basis would be $15 million before unit renovations and CapEx. So What makes the deal interesting is that there's a significant unit size rent gap. So apartments are unusually large for that submarket, meaning like the 2-bedroom sits around $1,390. That's, that's a pretty big unit for a 2-bedroom. So $300 a unit of rent premium is what, you know, they're looking at for future upgrades. Preliminary, that's your, that's, that's your sign that there's, there's possible upside to it. There's, there's value add that you can do here, right? So preliminary income underwriting shows that the underwriting should be roughly around $850,000 to $950,000 of current NOI, not using the broker's pro forma. So this is where we're going to go out and get some things cooking real quick. I'm gonna jump over to my mailbox, pick one, pick the one I need. There we go. Yeah, people sending me stuff all over the place. All right, we're gonna save all the attachments. Drop that out the way. Come on, save them all. Bane of Pain. Go down, go up. And so I'm going to, uh, move these over there.

Come on.

So we're just going to plant these down there, let them load up, and then we're going to tell it review these docs and Apply stated data. And so going off of the, the other information, I threw that in there because of the fact that when we were looking at this from the standpoint of like how we can support this, this price, the value add here, for example, Um, your potential gross rent increases could add $2 million, right? Uh, and, and bring the gross rent up to $2 million. So, and that would bring a stabilized NOI of $1.1 versus the, the $800,000 you were at before. So, uh, what this does is it allows you to have a better cap exit. And then market sales support shows here that you have You know, down the road, 184-unit place went for $175 a unit. There was a 7-unit place that did for $180, another one for $190. So inside of that, like, um, it looks like a newer unit place went for, you know, $225. So in your position, uh, between $175 and $225, that's where you're, you know, that's where your values drop. So financing and, and best execution on that would be like agency bank multifamily debt. We got, uh, we've got relationship with lenders that could set you up really sweetly, especially if you use our program, um, to get you in there. Um, they, they handle all your debt on, on it all. They've got DS— you got, especially if you got a DSCR score that's like 1.2 Like that and above. So path 2 is a bank plus seller carry. We can try to help negotiate that with you as well if you've never negotiated on behalf of, uh, uh, yourself as trying to get a seller carry. We, we offer that. Um, and then the third path would be a JV where maybe working with somebody like Catherine to raise capital is, is a, a good, you know, position. So, um, then, uh, you've got your CapEx concerns, which you're looking at spending maybe $1 million or plus, $1.5 million. Um, one of the things you can do, and this is just— and I don't know if you've ever heard of this, but do you understand— you, you probably understand depreciation?

Yes.

Okay, so you get a partner that needs depreciation And you get him to buy it, let him do the, the depreciation factor, and you make him a partner inside of that. And he gets the depreciation, you get the building. It's just a form of joint venture. You can explore it with, with ChatGPT too and have a total buyout set up where like after the 2 years he gets to take his money and walk, you know, but he gets those tax deductions for those 2 years. So inside of this, we see that public record goes out and actually gets stuff from LoopNet. It gets stuff from the city and local government and applies such things to the answers. We don't get any bullshit answers. We get answers with sources. So inside of the red flags, here are some of them. Here we got the SWOT analysis, the negotiation strategy that we you know, would be usable. Uh, structured offer, exit strategy, lender investor view. And again, it says go with conditions. What did it say to go do? It said to go get this and do this. Here it is. So now we've got all the info in there and it's putting all that information to work. The actual T12 changes the story. The actual operating statement is substantially stronger evidence than the earlier expensive sub— uh, expenses assumption. So, um, the valid verified T-12 NOI of $896,156. It's tight now, right? Remember I told you all you got to do is go get your rent rolls and drop them in. So now the rent roll reveals the main opportunity. There's 61 occupied, 11 vacant. So that's actually an 84% physical occupancy. I think it's in somewhere they claim 95%. So yeah.

Just to let you know, um, I reached out to the broker on that and he was supposed to provide me with an updated T-12 because that T-12 is a little stale. Apparently it is— it's supposed to be about around 90-something percent occupied now.

Yeah, so, um, their, their value-add is more conservative than the rent roll. Okay, so that's a good thing. They're not overstating, they're understating.

Mm-hmm.

Renovation capital is lower. Okay, so they're allowing for less renovation capital, which might be a concern. You've got the revised NOI bridge, right? So now with the increases over the T12, you know, the biggest underwriting issue is that it jumps from an 896 to a 1.1. in, in, in year 1. So, and, and so in that sense, like, your lease-up velocity has got to be considered there, you know. Um, the revised evaluation based on actual T12s, based on the ones that Arcadia announced, based on, you know, year 2— these are where the, the issues come in. Sales comps support a higher stabilized value. So these are positives. And then revised acquisition range, your opening offer can land more around 15 to 16, right? So better chance of getting it inside of 16 to 17. And then correcting the prior flood concern, flood zone X for this underwriting is going to be, you know, conditional. Correcting the prior unit count concern. That was handled. And so here's some things that it doesn't like. Occupancy was the first thing. It says, you know, 72, but 95. You and I both caught that. But current rent collections have softened, so that's something that needs to be addressed. And then the year 1 NOI requires execution. You gotta, you gotta execute in order to increase it.

Yes.

Right.

So path 1, best execution, would be to pursue a 60 to 65% LTV fixed rate From a bank multifamily place and then bring in, uh, a level of, of acquisition equity and maybe tie in a, uh, construction loan and put, you know, put it all together to, to, you know, capital stack yourself into a good situation with that where all the bills are paid and you're still able to scale.

Yeah, yeah. Um, yeah, what I, what I was thinking here is that for the renovation, you wouldn't necessarily renovate all the units. You would put the cost in there, but you probably wouldn't renovate, you know, all 69 units. I would need to walk through—

No, the, the best— and inside of that, you would use, you would use free estimates. Our, our, our program free estimates, yes, would help you scale it and structure it. And, and the reason why I know what free estimates would suggest is once you You get 11 units done, you send them— you send notes out to all your tenants and say, we are looking for people that want to move into the new upgraded units. We're having an open house. If you want to see them, come check them out, show them off. And then you get people to move out of their old units into the newly renovated. The ones they left, you do those. And then you do it again and again, and you do it until all your units are, you know, refreshed.

Right, right. So I was thinking I, um, I would want to walk the property, see the actual— see the actual condition of the units and see whether, you know, what level of refresh would be required, you know, before developing a budget. Like, I'll still use, you know, free estimates, but, you know, just see what level of refresh would be required, you know, to move forward.

Because sometimes— Let's see what that would look like. Let's take a look at that real quick. So I'm going to open this up, and this, this might spill us over past the top of the hour, but we'll give it a try.

Yeah, yeah, I actually, actually have a 1 o'clock, so just to let you know, I have to jump on another meeting.

Awesome. So it looks like they've got some of these that are in the pictures already renovated, so you're not going to get— unless you go and get those actual pictures of the non-renovated, right? It'll be, uh, it'll be difficult to understand what, what the cost would be. But what you can do is, you know, tell it to model after this right here, what you want, and tell you what the price is for that, um, in this area. So, okay. And now that I've got all those screenshots This property is located in Sunrise, Florida, and we want to get a ballpark of what it would cost to renovate the entire build— building. And then based on the images of the newly renovated units, what did it cost to make this so that we know what to do across the other 60+ units? And we just take those straight out of our screenshot library and pump them off and into— come on.

I see it up top there, screenshots.

There it is. Bottom. Yeah, it's— I, I have it always show me the last, last few. So 1, 2, 3 of those and send it, and it'll come back with some numbers probably in like 2 to 3 minutes. But if you got to jump off, we appreciate you coming on, um, and we'll do some catching up again tomorrow. We've got the, uh, we got the meeting Um, tomorrow evening at what time is that?

7 PM. I think it's 7 PM.

Yeah, for us it's, it's like, yeah, Eastern. Yeah, sorry, 4 PM or something like that.

Yeah, yeah, yeah.

It's almost like in the middle of our day.

Oh wow.

Yeah, right. So, and a Friday, it's like, oh my God, 4 PM on a Friday is crazy.

But well, imagine for us it's, uh, 7 PM Eastern, so it's the end of the day. It should be—

Right, you guys are getting ready for bed. You're like, okay, enough of this. All right, yeah.

Well, Yeah, we should be heading out.

For sure. So, um, it shows like right here that it's given us some preliminary numbers. These are— these I think would be pretty useful inside of that, that, you know, for the 2-bedroom, 2-bath, 1,200-square-foot, that, you know, you're going to be looking at, you know, a total raw construction of about $30,000, you know, $35,000 per unit. So if you did $30,000 per unit, your conservative planning allowance is going to be 1.5 to 1.8. So at 72 units, which you don't need if you got 11 units already done, you're, you know, you're that far ahead. So very, you know, important there. But the rest of the stuff like the, the outdoors corridors and stuff like that, these are other things you want to take into consideration too as far your CapEx goes. And, and so, you know, you've got, uh, you've got to consider that it's going to cost you another $3 to $5 million to get some work done. So building, building that into your budget, what you're looking at buying it for and stuff like that, pretty integral. So, um, and as you can see down here in our free estimates, it's going to send you back and say, hey, if you want to, you know, analyze this investment acquisition, do so over at Deal Hunter by Land Shark.

So, okay.

All right. There you go, man. And, and so, thank you. Hopefully, you can see the value now behind our 2 tools. These are 2 of 24 tools that we use throughout the day to do our work.

Oh, okay. Wow.

There's more.

So, yeah. Like, I've got—

pretty cool.

We've got a, a massive amount of, of tools that we use inside of Not just our, uh, not just our, our Landshark stuff, but like, I think I was telling you about Gemini Notebook. This is where I was showing you where we created your, your presentation.

Just real quick, my last name is G-A-S-T-O-N, so I wonder if you can just update that whenever you send a report out. Yeah, G-A-S-T-O-N. Yeah, G-A-S, the, the T and the S are Just need to switch them.

Got it. Yeah, yeah, we can do that. I'm gonna, I'm gonna have it remake it and— okay, yeah, no worries. You can definitely do that. So, respell the name to caps lock it. D-A-S-S-T-O-N.

Yes. Oh, and it just changes, it just changes all the slides.

Yep.

Boom, done.

Awesome.

Boom, done. So, and then after it's done, I delete that one and it's good to go.

All right.

So, but inside of this, this is where I was telling you, you want to come in here, you want to create a new notebook, you want to go get your Robert Kiyosaki book and add it as a source. So like, I don't know if you have it as a file or you can get it on Google Play as a playbook or something like that, or even if you have all the text, whatever, you just drop it in there. And when you drop it in there, it'll read the book. You can have a discussion with it about the book, or you can create like an audio overview, which is basically like a podcast, 2 people sitting around talking about the book. So yeah, it's so cool. So definitely worth a look-see.

Yeah, looking forward to tomorrow night's session.

Awesome. Well, um, I'm gonna probably go look at, um, some of this property right here because, I mean, it's, it's got a small lot size, or not, not too small, but, uh, you know, this could be a potential, uh, deal out there for us to be able to, to, uh, turn into. You can see it's really close to Already a very busy corridor, so commercial just moves right down the road a little bit. So I'm excited about maybe going to look at this one because that's in a really good area for doing, doing this kind of stuff.

So, you know.

Awesome. Well, it is 2 minutes. We got 2 minutes left. Anybody got anything else they want to add? I just want to appreciate everyone for coming in today, especially Laura helping out. Making sure people got in and out of the room. You guys really don't know all the work Laura does. She's just quiet as can be usually, but at the end of the day, we can't run the damn show without her. So y'all y'all just need to give Laura a big thanks for that sometimes. And then and then Miss Catherine, let's pray for her to be well and get well and be able to bounce back for us tomorrow. So. And have everybody come back and see us some more. Luke, let's get on a call later today. You got my— hopefully you have my calendar link still and you can get on my calendar for later today and talk about what we can do with you on your business plan.

All right. Thank you guys very much.

All right, guys. Everyone have a great day. We'll talk to everyone real soon. And Heavenly Father, we thank you for bringing everyone together today. Take them out into the world to do greatness and amazing things. And we ask this in your Son's name, Jesus. Amen.

Amen. Thank you, guys. Have a good day.

See everyone.

All right. Bye-bye.