AI Live - Land Shark Mastermind

, and, um, we are here to run deals, which is really important, uh, in finding the deal. Again, the numbers are that you need to analyze, uh, over 1,000 deals to be able to place 100 offers, to be able to get, um, 10 moving through the pipeline, and usually it's one that comes through. And so the amount of time that it takes to find the deals, underwrite the deals, we are collapsing timelines so we can add commas to bank accounts, and then making sure that we, uh, are— have helping people find the whos that know how for all the steps along the way. Because again, when we do that, that's the most— one of the most important things. It's, uh, when I was with the Flipping Females and we flipped over 500 properties, we had all the whos that knew how in every single step of the process to be able to move forward. So That's a big part of what we're doing. So for those of you who are here, the whole purpose is to have you understand, like, understand for you, like, where is the roadblock so that we can guide you to the who's and know-how or the tools to be able to get you past that roadblock to keep moving forward, whether it's finding deals or analyzing deals, finding the capital for the deals. Like, what is it? That where your roadblock is, and then we can move forward. And what are your wins? I always like, this morning I was thinking about it, I take a 2-mile walk every morning with my giant husky, and who's always like, I swear the dog like dances while he walks, he's so funny, and he inspires me. And inside of that, the, we always, I always have a whole ritual in the morning where I talk about gratitude and what I'm creating intentionally, for the day, for the week, for the year, like all the way along. And that actually comes from Napoleon Hill. If any of you have read the book Think and Grow Rich, that, you know, again, it's about making sure that your mind is focused on whatever it is you're wanting to create. And so that's the time that I create that every morning with God. And it's a walking meditation prayer session, so to speak, for me. And it helps me be reminded of God's beautiful creation all around me. And, you know, and all the birds. Like, uh, whenever I talk to people on the phone when I'm walking, they always tell me that it sounds like I'm in a bird sanctuary. There's so many freaking birds, but I love it. And on my end, I just get to look around and be reminded that, you know, it says that if God takes care of the birds, how much more will he take care of me? And trusting inside of like whatever those provisions are and just the abundance that God has in our lives. Anyway, as I dig—

I love that so much. Thank you for that.

You're welcome. I felt inspired. I knew it'd speak to somebody, so I love that. So Ashley and Carol, super happy you're here. I know, uh, Kimberly and Rob, you're here listening in the background. And, um, inside of, um, that, I'd like to know, like, where are you guys at when it comes to your investing and What is the— like, one, what are the blessings that you're grateful for? What are the wins you're celebrating? And then what are you— what is the stumbling block so that we can help you move forward? So if you've got deals, that's what we're wanting to run here today is the deals.

I— are you— are you talking to me?

Yeah. No, go ahead. Go ahead. Ashley and I are actually working up a deal right now. We got an ally we're trying to put together. Um, and we're getting offers out. And so, but thank you for that clarifying message this morning. And something that, like, I'm a little bothered by— we spent a little bit of time working on a, on, on a, uh, on, on some people that were going to become, or were interested in real estate investing, interested in expanding their 7 streams of income, whatever you want to call it. We, we invited them to come and take the investor survey. We gave them the opportunity to understand what it was like to become a paid member of the of the Land Shark Mastermind. And they came back and they're like, well, you know, we're not really interested in getting any education right now. I wasn't selling you education, man. I'm selling you a business plan. Like, I think that's the part that the dude missed out on was like, we told him that like, I will curate your business plan for you and make sure that you're successful in the next 12 months at either buying property or buying a business. And he's— and, and so to that extent, like, um, what they're doing is they're, they're, they're going to not invest into real estate or businesses, they're going to invest into starting a company. And so apparently the guy left the corporate world and he's going to start his own company. Kevin, what do we call that?

Wanting to be an entrepreneur?

No, we call that buying a job.

That's true.

He's buying a job. That's what he's doing. He's going to work for himself. You know how hard people that work for themselves work? 5 times harder than people that have a job. So if you want to go work for yourself, by all means, go do that. 200 hours a week. That's what it takes. 200 hours a week, right?

Right.

So by all means, jump right into that shit. I'm not interested. So, um, an entrepreneur, as it is defined— if you go look up the definition of an entrepreneur And it's crazy, most people don't even understand it, but the definition of an entrepreneur is to put all your resources into your mission. How many of us here are putting 100% of everything they own behind what they believe? I am. Like, I go— I, I don't, I don't use my money to go buy a pair of shoes. I don't use my money to go on vacation. I don't use my money to go buy me a new vehicle. Right? Not unless it's going to make me more money. I'll go buy— I'll go buy a new pair of shoes if I need to so that I look presentable in front of customers while I'm trying to make money, right? But all my money goes into what I'm doing right now. Um, and then what comes from that is the ability to drive a new vehicle because the company buys one, is the ability to, to, to, to live at an investment property that I purchased because I'm there fixing and rehabbing it, right? Or go again, like, list of things I can do when I change my mindset to the true entrepreneur instead of the guy who's like, I just want to quit working for somebody because I don't like taking direction. There's a difference between that guy and the entrepreneur. So I'll leave it on that. I'll leave it on that because again, like, I, I, I felt a little irritated when I was told, oh, we're not interested in buying a buying an education program. I never want to be an edu— like, I'm anti-education programs. Like, they irritate me. You're on mute. You're on mute, Catherine. Are you talking to us, or you on the phone with somebody else?

All right, well Anyway, so I took the personality test and it said that I'm like a buy and hold type investor, which I can totally see that, like buying properties and hold them. But I have one right now which I'm actually living in now. You already know about that, but I had a renter here and they did not take care of my house. And that kind of, you know, I know you've heard that before, but I'm in a weird spot on like maybe I would want to buy and hold like commercial or something, but I want to learn how to raise capital. I want to source. I want to learn more about creative deals and how to like work them or like, oh yeah, you know.

No, and we can definitely help with that. I mean, what we're working on right now with that You know, with that big land deal with the multifamilies, uh, uh, it's going to be a pretty cool deal. Catherine, are you back or what? What's going on?

I, I am. That meeting we're supposed to have with, um, DHS last week, um, they apologized for missing it and they asked if we could reschedule it for next week.

Oh, okay.

They're really excited to talk to us. It's from the— that when we spoke at the Opportunity Zone Faith Conference.

Yeah, we want to keep them in the loop anyway. Right back to what Ashley was saying that she wants to go over her investor survey and we can definitely do that. Did you by chance already email me the results? Because I do have to process the results through my real estate investor board.

I didn't. I assumed maybe you just got it, a copy, but I will.

Yeah, no, on the bottom it it should have— and maybe it didn't, but it should have prompted you to email. Just hit the copy button and, and send it back to tommy@titanimpactgroup.com, and it'll just copy the entire questionnaire, send it to me. And then what I do is I take that and I put it through my Real Estate Investor, uh, Virtual Executive Board, and they then come up with your 90-day blueprint and your, and your, and your 12-month business plan. So, and, and then from there, and that's, and that's, that's what we charge $10,000 for. Like, this is what, this is what people get lost on. When we give you the 90-day blueprint and the 12-month business plan, and you want to do that by yourself, go ahead. Like, that's free, do it. Like, have fun. But if you actually want somebody to help you, you know, help you, uh, execute it, you have to hire people to do that. That's why, like, for us, that's why we started the mastermind, was because You can pay the $10,000 and get all the professionals you need. Like, everybody's in here. Like you just said, you want to learn how to raise capital, she's sitting right next to me on the screen up here. So I, I don't know why— is it my screen that's stuck on Ashley's, uh, background?

Yeah, because I see everybody.

All right, okay. I don't know. When I was talking, it's still like— now it's on.

I'll turn my mic off. It might have been— I'm like doing—

no, you're good. No, you're good. I'm just curious because again, we record every episode and if it's just stuck on your screen, I got to get Catherine to maneuver with the host tools to do just the show, just the audience.

So, okay, I'm going to turn my volume off though. I don't have any deals today. I have to get ready for— I have a sub class all week, but I wanted to make sure to log on with you guys and I'll listen in. But if you need anything from me, I'll be here doing my hair. I'm listening.

Yeah, no worries. Um, the, um, just real quick, did you— said to you, uh, since you don't have any deals, did you go over the one you— that you— I sent you, the $3.8 million, reworked it and stuff?

I looked at it and I was wondering, did you want to talk on the phone about it at all, or how did you Do you want me to just present it?

Uh, yeah, I mean, I wanted you to read through it, make sure that it covered all the points that you're intimate with, and then reach out to them and say, hey, we've got, you know, we've got an idea that we want to run past you guys. Do you want us to send it to you, or do you want to talk through it over the phone?

Okay, I'll do that.

And that's kind of how I would present that, you know, uh, give them the opportunity to decide if they want to hear it or read it and get back to us, whatever. Some people like to look at the sticker shock in private. You know, um, and they don't, they don't want to, they, they don't want to give away their poker face, as I would call it, because sometimes they're like, you know, I'm that way. If I see a bad deal, I'm, I'm like, what the— you know, my face tells you exactly why I think it's bad, you know. Yeah, what I think about it. So, okay, yeah, that's I think that's the best way to handle it is if you've read it and you're good with it, send them a message to reconnect. We can either send it as a formal draft and let them stew on it and then kind of go from there. But our goal inside of the Land Shark Mastermind is write 10 offers a week. And so we're looking for realtors to help us do that as well. So go have fun at your sub-2 thing, but let me know when you're available. We'll get you some more opportunities to reach out and make offers for us as well.

Yes, I will check all my wholesaler sheets and stuff and see if I find anything that would be worth, you know, looking a little deeper into.

Great. And then if you know anybody inside of the Gator— I love taking advantage of Pace's community without paying for it because it's like, duh.

I know a lot of gators.

Uh, we are looking for a 10K, uh, EMD on a piece of property out in Tonopah. Um, that is an R— it's a, it's an, it's not an RV park, it's an R— it's a, uh, mayor— it's called a mayor motel. They have 8 RV spots and then a large horse— it's like an equestrian RV center.

That sounds really cool. Yeah, I could find someone that could do that.

Yeah, so, and then, uh, we've got somebody that's going to cover us on the acquisition part, and then we do have to do a little cleanup out there because it's been abandoned for like last year. We got a lot of fixing stuff up to do out there, but an equestrian person would love it out there to do all that for sure.

Okay, that sounds like really cool.

Yeah.

And then I have, like, I heard you guys about you guys raising capital for people. I know you talked to another realtor who knows Matt, Matthew Starr. He's a big multifamily investor, um, that I was considering introducing you to. And then there's another guy that I trust, his name is Chris, and he is looking for people to help him raise capital potentially. He wants to buy ranch land and all the nice places and do like, um, also like destination type.

But what's his experience?

He has a lot of experience.

No, with that— I'm sorry, with that particular asset?

With land in particular? Well, I mean, he, he's a big hunter. I, I would say—

but what's his experience with running it?

With running the ranch.

Yeah.

That I, I don't know.

So there's an entire—

sorry, go ahead. He wants to buy ranches that are already working and then make them a little better.

Yeah.

You know, he doesn't want to buy them if they're not cash flowing.

Yeah. There's a, and there's a gigantic market of, of these. I want to, I want a retreat center. Um, and then there's a giant market of retreat centers that have failed because the people that run them don't know what the eff they're doing, right? I can, I can offer you 150 broken retreat centers right now because they're ran by people who are like, oh, just give it to me fully operational, it'll be fine.

Well, he is a really, really smart, really seasoned investor, and he does other investments. Like, he usually funds um, deals for like contractors who have a bunch of things going on at once, and he sells notes. He has a lot going on. So I just thought— I know that's one of the ventures he's working towards, but I just thought it would be a good connection for you.

Yeah, we'll definitely meet anybody either way, you know. Yeah, no problem with that. We appreciate the connections all the time. So, um, uh, but I'm always, always forewarning people that just because somebody says they do it doesn't mean they have proof of it. We do. We do actual deep dive proof. Like, I'll pull up my entire list of properties that I've done and put that, put that out before I actually tell people what I want, because I'd rather people know that I have a background in this. And then, and inside of raising capital, this is why it's important. When you go to raise capital, if you don't have that minimum of one decade doing what you're looking to raise money for, No one will give you money. No one. Yeah. Or the team.

Yeah.

Right. And so that's why I'm valuable is because I come with, I come with 3 decades of experience in 5 different asset classes. So therefore I fit inside of about 50 different buckets. And so when somebody shows up to raise capital and they're like, oh, I don't have the experience, they have to hire me or partner with me in order for me to go on the deal as the experience-haver. Catherine's the same way. 50— she's done 500 fix and flips. She has every bank in the world begging to give her money. All the banks want to give her money for fix and flips based on her experience in fix and flips.

Mm-hmm.

So she pays the lowest amount in, in interest. She has the best terms and she gets the best dollar amount. So much so that we can arbitrage, we can take a loan and then invest that into other properties and collect that money from that investment and then pay back our loan.

Mm-hmm. Yeah, I mean, I, I know he's a very seasoned investor. I know you guys had a bad situation raising capital for someone who was not following through. So I know that it's like a little touchy of a subject right now, but either way, yeah, no, we're just very, very much forward about—

we're not pulling any punches. And the reason being, like last week, and yeah, we are a little sensitive to the fact that one of the people we lent— it's not somebody we raised capital for. We went and lent them money, but we already knew that they were kind of in trouble. We thought the money was going to help bail them out. And what they did was they got selfish and spent it on themselves. And so that part of it, it is what it is.

It was not the Custom or not custom, but the little like prefab homes you were talking about?

Yeah, they're custom. They're custom tiny homes. Okay. So yeah, they're custom-built tiny homes. They're, they're on the Forbes 5000 list. Like they have a lot of credentials. However, we are doing more and more discovery since, and this all goes back to January. I mean, we're 7 months into this nightmare. But over the last 7 months, they've acquired almost $3 million in unpayable debt. So like, they, they've got, they've got judgments against them, they've got the IRS got a lien on them, and there's just so much crap going on with that that that's where I'm sensitive. But when it comes to raising capital for somebody and they're like, oh yeah, I want to, you know, I want to— especially these retreat centers because there's so many of them. And I, I—

it's not just a retreat center. He wants to do like set up hunting where people can hunt on your land. He wants to do like um, strongman events. He wants— he has people like testing drones on some of his land. Like, right.

And so, so that's what we call a retreat center, because you can, you can put, you can put a, a shaman out there, you can put a breath worker out there, you can put a hunter out there. And what they do is they buy those properties to rent them out for either a week or a month to a, uh, to a, a a retreat guru. And so that retreat guru could be, uh, a redneck teaching people how to live off-grid all the way to somebody teaching you how to breathe through your butthole in dog down position while the sun shines on your butthole. Um, like that, that's what we end up with is people who are like— we get those— Catherine, help me out here— how many of those business plans do we see a week?

So many. And to be clear, like Ashley, and for all of you here, is that there's I call it conditions of satisfaction, but there's a buy box criteria and anybody lending money or investing in has a really clear buy box, which is why we created the investor survey to understand what type of investor you are. But the general criteria is what is the asset class? Do the numbers actually work? That's number one. Number two, the team. It always comes down to the team. Do you have a solid team with a solid track record of success? Number 3 is the how much the, uh, are you actually putting into the deal yourself? Because, and again, it behind closed doors, um, lenders, investors, bankers joke about this, that it's like everybody has a fabulous idea, but they don't want to put a single penny into it themselves. And they're just, if you're not invested in it, we're not invested. Like, not interested. You know, it's, it's the whole, like, I'll— we'll put this forward as much, we'll match you energy for energy. How much ever much you put into it, we're gonna put into it. If you put $0 into it, expect everybody else to put $0 into it.

Yeah. So they have no skin in the game. That's a risky one to— that's not a good investment. Yeah.

Yeah. So, and then your time, your energy, your talent, like What is it? And again, that's why I tell everybody to read the book Who Not How by Dan Sullivan, because again, you may not necessarily have the, the time or the talent to go into it. But if you have other people that you bring to the table and you put that team together, that's a really important part. The other thing that they want to see is liquid liquidity availability. So for instance, like we're doing this Cortez deal, the bank wanted to see that there was over $750,000 liquid in some bank account somewhere.

Yeah, you need like a reserve.

Yeah. So again, there's multiple pieces. Just having a good idea isn't enough. And so putting together all the, the team, the money, the plan, the experience, like these are all the pieces that need to come together for it to be funded properly.

Mm-hmm. Yeah. So I probably didn't explain him very well.

Oh, no, honey, it's—

this is a beautiful—

listen, listen, this conversation is so relevant.

And the reason why we're warning you of this, Ashley, is because this is what tends to happen. And it's not because you're the first one ever introduces to anybody. Somebody will introduce these people to us as these, these, these people. And then when we start asking questions, what I call is the red flag is when they get mad. They're like, why are you asking me these questions? It's like, well, because I need to know. And so we really determine how it's— again, if they answer the questions, great. But half the time these guys show up and they don't even want to answer the questions. They're like, how dare you ask me that? And it's like, what? Like, we had some people the other day that they're like, oh, we want to do this. Um, and it's not, it's not just retreat houses, it's, uh, it's the sober living stuff too. We had some guy who's like, oh, we're going to do this sober living thing. When we looked at his numbers, and, and again, we could have saved ourselves time on looking at the numbers if we would have found out the answer, but we, we looked at the numbers and he came back with 7% expense ratio. And I'm like, bro, you're running a sober living house. Your expense ratio is at least 60% minimum.

Mm-hmm.

And he's like, no, it's not. I'm like, where did you get your information? He's like, ChatGPT. I'm like, what? And we use ChatGPT, right? I use Deal Hunter. And I'm like, again, you must have any experience with this. And he's like, well, yeah, like, I know people that had that. He's like, I know people that know people. And I'm like, that doesn't work.

That's not experience.

That's not experience. Yeah, right. And so, but even outside of that, like, they think because it's so passionate, they're so passionate about it, that that's what's going to carry them through to the finish line, right? And, and I call it the sunshine and bunnies with rainbows and butterflies. Um, we're gonna save— here's, ready, here's what we're gonna do. We're gonna save all the orphans and take care of them with the old people. The old people are going to raise the orphans, and the veterans are going to protect the people and orphans while we get all the dogs and the bunnies and the kitties away from all the bad people, and we're going to put them all in one compound. Like, literally, that's people's pitch.

Oh my goodness.

Okay, I've heard that pitch so many times, or variations of it. It's wonderful, like, from a heart standpoint, but from a business standpoint and experience—

unreal.

Yeah, it's interesting. So Carol's here. I'd love to have Carol because she could definitely chime in on this conversation for sure.

I wanted to, yeah, no, and I want to make sure Ashley understands, please do not be afraid to bring people to us. Just be understanding that, again, the Land Shark name comes from a little bit of the bite that we impose on people sometimes. And so people that are doing bad things don't work well inside of our ecosystem.

Right. And I'm not— I'm, I'm okay. I'm okay. I just, um, maybe didn't explain him that well. That's one of the ventures he's looking for, and he's only buying things over 1,000 acres, and he's trying to get a bunch of land. He has other partners.

Okay.

Um, and he does lots of other stuff. He has a luxury flip in Scottsdale that he's looking for some money on, and Uh, or actually he's selling a note on it or something.

Um, cool.

But yeah, I think you guys— I think it would be a great connection for you guys either way, whether you guys partnered on that deal or a different one. He has a lot going on.

Well, we'll, we'll definitely be open to the conversation. I just have to— I've made it a rule to pre-warn everybody that makes introductions for us, know that we're going to vet people, and if it comes back that they're unvettable, we let you know You're the first one to find out because you're the closest one to them.

Yeah. And I didn't— I would never want to introduce someone who ends up being a bad person. That makes me look like crap.

You won't know it. You won't know it because of the fact that you don't do the level of deep diving that we do. Right. You're not— because again, if you— yeah, you, you, you— if you knew what you knew, you'd be an associate of ours instead of the— instead of the trying to learn what we're doing. You know what I mean? Like, you'd be teaching us, but we're just trying to teach you. And then inside of that, if they are vettable, like, then you become 50% of whatever we create out of that. Okay? And so that's how that works, is that we tag into it as a joint venture. We have joint venture agreements that we sign with you so that you, you don't have to worry about protecting what we call your people. I have people. I have people. If you call them, you're going to make money with them. But you can guess what? I'm going to be looking for you to take care of me, right? If you make money with my people, my people are going to tell me, hey, I made money with so-and-so. And then if I find out that I didn't get taken care of, I'll make sure you never get money from anybody ever. And I go on a campaign. It's a big ugly thing.

But yeah, right. I mean, that's, that's how it all works. That's fair partnerships. And like, that's how it should be.

I eliminate all that by when people come in here, we start getting busy, we go into a joint venture right away. So I'm sharing the screen. This is the deal you brought us. Seller's currently asking $3.8 million. And what we looked at was option A, doing 90% seller financing on this deal, and then option B, doing, doing a 70/30 joint venture split with one of the current owners. So there's— if there's a partnership in there, one of them wants to get paid out and the other one wants to stay in the deal, we'll do that. And so what that looks like is that we're going to split that 3.8 down the middle. We'll give one partner 70% of 1.9. Okay. And then, and then at that point, the other, you know, the other, the departing partner is going to get 70%, not 30%. So I got to fix that right there.

Mm-hmm.

Right. Because we're going to do, we're going to give them 70%, not 30%. The, the partner should give him 30%. Okay. Right. So, and what that looks like is, is, is that 1.14 part right there. So we need—

the guy that you met over the phone is, I think, the one who would stay in the deal.

Right.

So, yeah, we'll talk to him about it.

And we would leave him as a 30% owner of the deal. We'd only give him up to 30%. He wouldn't get any more than that. Okay. And so after the deal is done, then we'll cut him into the rest of that. So I'll tighten this up a little bit more before we send it, but find out how they want to get it and we'll go from there. But again, we got to get it shovel ready before we can borrow money. Like, nobody rents money on raw dirt. I do have some people that rent money on raw dirt, but that's because that's me, right? But if this is just a raw dirt deal and I'm not, I'm not attached to any, any part of this, um, except trying to move it along because I don't build multi-family housing, um, we would basically get this ready for sale to another multi-family builder, kind of like, say, your guy that you're talking to right now, you know.

But he doesn't The Matthew, the one I'm talking about, Matt, he does multifamily value adds. He doesn't build. Got it. So that's his—

Yeah, that's fine.

That's fine. So we can, we can still find people that are out there doing that.

Yeah. Yeah.

No worries there.

So, and then you said something about me figuring out what it would be valued at after the build. Do I just say into ChatGPT, like, what the parameters are and the time frame? Did it— does it say— did we go over what it would cost to build and stuff? Is that all information I need to give ChatGPT to figure that out?

Well, we could show you how to do that inside of what's called free estimates. Did they send you blueprints for this, or was it just talking about it?

Um, I think they did.

Go to the conversation, top of the conversation here. I just have an address, but if you have blueprints and permits, we can set up a call to go over that inside of Free Estimates, which is the other, uh, is the other GPT model that we use. If we feed it the estimates and, or feed it the blueprints and, and stuff right here, um, it'll build out an entire schedule that we need to understand what it's going to cost.

I have a contractor's bid, civil plans, elevations, full plan set, plan review receipts, soil documents.

Yeah, if you want to put all that into a, into a Dropbox or get on a call with me later and we can walk through how to do that so you can see how to do that as well. We can do that and then you'll have that information readily available right there. Boom, boom.

Okay, I have, I have a Dropbox I can put in the chat, but if you want to move to something else, I totally—

yeah, you can put that right in the chat, that'd be great. Okay, so, um, and then it looks like we're getting ready to do, um—

oh, well, did I— can we only see the chat, or did I just give that to the Who knows who's on this?

Uh, you sent the Dropbox?

Yeah.

Okay, you got it, Catherine?

Yeah, she put it in the— if you look in the Zoom chat, the link is right there.

Can, can everyone see that? Is that confidential information? I don't know.

Uh, yeah, only us who are here can see this.

Okay, got it.

Do you see it, Tommy?

Yeah, I got it. I'm going over a contract they just sent over, trying to remember what the heck I was trying to pay for that piece of property out there. Antonov. He just sent me the, the contract, and I'm trying to figure out how to, how to get into that deal. Okay, so he wants 360. So I'll just look at the contractor bid because I mean, the contractor bid that this has got in here, it's based on everything. Like, it's going to be top to bottom. So they have grand total. And again, this goes back to— it doesn't say the application date on it, but I'm assuming that it goes back to like 2023. Let's just say 2023. So the grand total based on everything, everything back then was still $33,000— I'm sorry, $33,417,334. So just round it up to $34 million, right?

Mhm.

So if I'm at $34 million, let's do this. I'll show you real quick here. Um, that's what the contractor thing says right there. Where did the Dropbox. There it is. Let me get back in here. I'm gonna go grab the full set of plans from 2023. Building North, Building South, Site North. So there's, there's quite a few of them here. So we're going to— oh, god dang. I'm gonna click on that. I'm inside the folder now. Going deeper. That's it. This is, this is a very intense build package. Let's do this. I'm going to need, because I'm going to have Claude going through and download all these. Yeah, I mean, they've got everything here. They just need to get the permit turned back on, if they even had a permit. I don't remember. Did they have a permit and went— and it went dormant?

I think, yeah, they— yeah.

Okay.

No, or they were like— or they were like 90% through or something. I don't know exactly. I asked them if it was for sure shovel ready like a million times, and they insisted it was.

It's— I will say this, it is for sure shovel ready, uh, for permit.

Uh-huh.

For like, this is, this is a complete package. It needs to be updated, but this is a complete package for permit. Right here, all this, this is exactly what we should have, right? So inside of that, if I go back over to free estimates, free estimates, basically if I, if I download everything that's in those files and I feed it to this, it'll come back and I would validate whether or not that $33 million was valid or it needs to go up more.

I feel like just because cost of goods, even in the last 3 years, has gone up, that it will probably be more substantially.

Yeah, I mean, like, yeah, it's definitely gone up substantially. Um, let me see if I can go back and find, uh, chat here and tell it, or have this conversation with it. We'll drop it down to the bottom and prompt it to converse. So looking at the Dropbox folder on this property, it is to our understanding that there was a cost of construction total that came out to, in a contractor's bid, of $33 million, like $33.7 million. So go ahead and factor that into the cost of the land and let's figure out what it costs per door. And then let's start building out an understanding of what it would look like, how long it would take to finish this project, and then what we would need to do to fulfill. And how long would we be holding investor money on this deal? So if we were— if we had to raise that, that $40 million to do this, what does that look like overall? And so we can, you can see here like how to dive into these projects a little bit deeper and harder and stuff like that as well. Mm-hmm.

I have a question. Remember all that stuff you were talking about, about like all the things that are going to be built nearby?

Yeah.

In the future, like I'm sure this build would take like at least 2 years, probably minimum, but I wonder when that stuff is being done because we could plan our sell around that so we could get like more top dollar, you know, right? Based on—

right. And so you can see here that just for the door, each door is almost $300,000.

So I wonder also like if you could bid with different contractors and see if anyone could do it for less?

You could, but again, it's not the point of doing it less. You lower the, you lower the cost of construction, you lower the, you lower the value of the property as well.

Okay.

Right. So, um, you're wanting to make sure that everything's built out and it's not going to fail.

Yeah.

And it's in an opportunity zone. So again, raising $40 or $50 million to do this may not be as hard as you would think. It's not, it's not about how hard it is to build that, not at all. Mhm. So like it's even saying here, our total capitalization, we want to make— we want to maybe look at raising $45 million, right?

Mhm. Is it still saying it's a good deal, huh, at those numbers?

Well, again, good deal is only based on if it, if it, if it'll stabilize, right? If it stabilizes, great. And, and, and I do believe that we would have— and that's where we get into This is where I encourage you to start having this conversation with it because I'll do the prompt for it and then you can understand why. So, so based on the information I have now, I need to know of the feasibility of this. Do a full-blown feasibility study of this area. Incorporate all the new attractions that are coming to the area. And we would be built— our build time is looking at about 24 to 36 months. So in 24 to 36 months, this area, I need to know what the absorption rate of multifamily is going to be in this area, what it is now and what it's projected to be. Can you build out some 5-year forecast for me on this property and give me some understanding of where I'm going to be and how we should, like, stress test this and see what— how much we need to raise and then how much it's going to be actually worth when we're done. And so again, this is why this— you come in, you come in and you're here every day. We're having a couple of meetings offline about it. But, you know, if this deal goes through, this is a, this is a big, a big revenue share for us to be a part in with you. Right. But if you were just somebody just trying to figure out how to do this, the, the— this goes above your, you know, above your stratosphere in a lot of cases because you don't even understand the terminology behind it. If this was your first deal. Because this ain't your first deal, you're a realtor, you've been doing this for a little while, you're a professional. We have a better chance of accomplishing this based on what your, you know, what your background is than I do with somebody who's never done it before and just got out of the corporate world and is like, oh, I want to, I want to own real estate. Okay, well, like, there's a crash course of that, bro. You know?

Yeah.

Show up and be like, oh, I'm going to be a real estate investor. That's I may be referring to the email I got before we got on the call about, oh, I'm not interested in an education program, bro. This ain't school.

Yeah, I mean, I do. I understand a lot. I have experience with residential, but my goal is to learn about land and multifamily deals and that development is all intertwined in that. So I'm definitely learning. This is above my experience level.

And that's, and that's it. You're, you're taking the chance to go learn beyond what you already know. This right here is a picture of the area. There's like over here to the left side of the screen is where the, where the dirt is that we're talking about going to.

But AI, or is that a drone?

It's a real— there's a, there's a drone picture, and it's hovering right above. It looks like it's hovering right above um, um, Bass Pro Shop.

It's also right across from the Amphitheater, one of the oldest like music venues, which is kind of cool if you like music.

Yeah, the auction music theater right there. So, um, so current multi— like, here's the, here's the executive verdict right here. Like, it gives you an understanding of where you look, you know, what you're looking at. So So it says here that the area is improving, but the project is not financially feasible at the current 138-unit density, and that all— and that the all-in cost of $44 to $47 million without a major change could be pointless. Okay, because when you get up to the point of it being $325,000 per unit, the stabilized value is less than what it costs you to build it. That's a big, big issue.

How do you fix— how do we fix that? What type of changes does it say it needs?

So when you get into that, what it needs is to sit and cook for another 4 to 6 years because of this right here. It shows your metro vacancies. Again, unless you can move more people to the area faster, That's kind of where you're at, right? So, um, the, uh, the concern is that there's, there's not enough demand to that area right now for people to— for it to increase. Like, yeah, you're going to get, you're going to get, you know, people that need to work over at Banner, and Banner is expanding, expecting to go with 100 more jobs. But 100 more jobs doesn't necessarily mean 100 more houses to the area. Right? People will drive 30 minutes to work at the hospital. What?

Right, right. And there's other stuff around, you know, right?

So all that in here, you might have to wait until 2030 to start building it, right? And so that, that right there then leaves you going, oh, okay, that doesn't— it's not going to cash flow right away. Here's the sweet spot about this. So updated projected cost, it says if we can get everything down around, around the $270,000 mark, right, and bring that price down, it would— it might be helpful. But the going cost, the, the, the cost of construction over there for these things doesn't change much. It, it really isn't going to make a difference. And so building out that forecast, you're able to see that Yeah, you can increase rents and get up there, right, and begin to make revenue, but it ain't going to happen until 2031. Ready for the cool part? Remember we said this is an opportunity zone?

Mm-hmm.

Here's the beautiful thing. Opportunity zones need to invest in projects like this because of the fact that they're a 10-year hold. And in a 10-year hold, they want to have a J-curve effect. Inside of their investment, meaning they actually want to depreciate, lose money for 2 or 3 years, and then gain some money because that depreciation, they're going to be able to use that to write off their active income while they're invested in a capital gains project, right? So this is where it becomes very, very helpful for this to be a long play, a long-term play inside of that. Right.

Then they get cash flow in the later years.

In the later years, when the cash flow becomes important again, it becomes valuable again. And then when they're ready to sell it, that's when it becomes, you know, a big deal. But again, what Deal Hunter is able to provide and do here, like, here's, here's what it did. It went and pulled up like there's a billion-dollar operation happening down the street from it. The expansion. I didn't even know about this. Like, I did not even know that Banner Estrella is expanding. Again. Like, it already went through a massive expansion 6 years ago, or— yeah, no shit, now it's 10 years ago. I came out here in 2015 as a registered nurse to Banner Estrella to help it expand the first time, right? So that's why I know this area. I'm very familiar with it, right?

So did you know I was a nurse's aide before I was a realtor?

That's— that's cool. Very cool. Important job for sure.

Hard work.

Love it. Um, but yeah, inside of that, um, this deal is still viable, but there's work to be done to it for sure. Work to be done to it for sure. And so again, this is why it's important to work with that, that seller, is because, you know, showing them that we need— we're going to build it for $40 million, but it isn't going to be worth $40 million until 5 years from now. He needs to be able to understand what that means. And that may be why they're not building it.

Mm-hmm.

Right? They don't have the time to wait for it to rebound and stabilize.

Mm-hmm. And they didn't know anything about the, um, Opportunity Zones. And the other partner is out in California and he wants to invest his money in other things or something. So, okay. The guy, the guy that you met, he is— he— you couldn't really tell, but he's having health problems. So he would be— he does have the funds, I— from what I understand though, to like sit with this and be like a silent partner. Like, his wife has a lot going on too, right? They're pretty successful. So I think there's a deal to be had. I'm hopeful.

Well, we can definitely figure it out. So I appreciate you coming in, Ashley. I want you to go get your hair did and do all the stuff so you can go do your sub 2 thing, um, and then definitely get back with us later on. I'll clean up this LOI a little bit more, um, and, and get it ready for you to submit to them. But find out how they want to do it. Do they want us to send it or do they want us to talk it over to them?

Okay, I'll ask them. And I hope I didn't take up like everyone's time.

You totally did. It's all your fault, and it's 100% Ashley— the Ashley, uh, uh, Vizzeria show today, so no worries.

But it— I feel like it was good information, like 100% either way.

So if it wasn't valuable, we wouldn't do it.

I would have cut everyone off.

Enjoyed. Ask—

just ask Cicely. If it's BS, I shut it down.

Oh, is she in here? Oh my gosh, I was supposed to call her this weekend and I— oh, Cicely, you're both moms with kids.

Grant each other grace. You both get it.

Yes, this weekend got crazy, so we will have to absolutely touch base again. I'll text you.

It happens over here too. It's all good. We can always, we can always reconnect. Um, and your information was very valuable, actually. I learned quite a bit, and I was listening in. I love the part where you guys were talking about, um, if you don't have at least 10 years experience, like, no one's really even going to mess with you. Like, That was like, especially like you have to be the expert in that industry for people to trust it or have somebody on your team who is right.

Like that's the piece. It's like it doesn't have to necessarily be you, but make sure somebody on your team, which is why relationships are so important. Yeah, like this is the point of networking and deepening the relationships.

I was learning to raise capital with Matt. I was telling Tommy about that. The other day, and I would— it would break my heart, or like, I would just couldn't live with myself if I took people's money and then wasn't smart with it. Like, I wouldn't feel comfortable not having a seasoned, like, investor behind me and just— you know what I'm saying?

Like, that's 100%. I know what you're saying. Yep.

I couldn't live with myself doing that. I don't know.

Well, that's why you need to understand one of the important questions is when you're interviewing people is tell me about a time you've had a failure and tell me how, like, how it went. And what I'm looking for is how did they get through it? Did they jump shit ship and run, or did they actually like stick around and make sure that, you know, the investors were made whole and, you know, everybody was taken care of even though it was freaking hard to do? Right. Like, because that'll tell you however they handle the situation is how they're going to do it with you.

Right. Yeah, yeah, yeah. I did the personality test and it said that I— because I am, I'm very conservative. Like, I'm a— I'll take risks, but I'm more conservative of an investor. And I'm like, I didn't know if that was— I mean, I think that's a good thing, but also a bad thing. You know, I want to learn new stuff and sometimes you have to take a little bit of a risk on, you know, different things. And so I was like, I don't know, it kind of— it was interesting for me to do that test. So yeah, yeah, I'll send it to you guys.

Yeah, definitely.

All right, I appreciate your time. So, um, we've got a few other deals. I want to make sure we get to everybody or anything else. Uh, Debbie is in here. I don't know Debbie if she wants to introduce herself or not.

Um, at work listening.

Uh, we got— we get people that come in all the time. They just pop in and sit here and listen, and that's cool too. So, um, if any of this was above your head, we are more than happy to talk, folks, about it after the fact. Um, but, uh, we're trying to get offers written on properties and get deals done. This is not an education program by any means. If you learn shit here, great, that's an accident. It's not the point. So, and again, I might need to go talk to a counselor about that because like, I don't know, fired up. Somebody's like, we're not buying an education program. No, you're not. You're buying your way into a deal, bro. Interesting.

So, so with the deals, I know you're doing a luxury flip and I know you have RV parks. You guys dabble in all types of stuff. Is there any particular deal type of deal or something like neighborhoods you want to be in? When I'm looking at—

I don't, I don't, I don't. I'm agnostic to every deal because I only, I only stabilize and move. I don't do— I don't care where it's at, what it is, because of the fact that I'm doing— I'm applying my knowledge and experience. You brought a deal. We're working that deal together. I will make my money if this deal goes through. But when I have somebody who's like, I've never done real estate before, or I've only done it for a little bit of time and I want to do more of it and they don't have a deal, I don't have anything to work with them on. So the best thing for us to do is give them the survey, develop a, develop a business plan and a blueprint for them, and then sell that to them for $10,000. And somehow I got to figure out how to convey that to people because you coming in here, you didn't pay 10 grand to pitch this deal to me. You just brought it and you're like, here, this is a deal. And guess what?

If it works, Great.

If they don't, move on. Like, go get another deal. Your deal source. You bring value. You're not just showing up expecting us to tell you how to become an investor. Like, if you want to do that, sit your ass in the panelist box and don't, don't, don't say nothing to nobody. Steal all our ideas and go do it yourself. That's great too. But if you expect us to give you the business plan and the blueprints and walk you through a real estate deal, That's not going to happen for free, right? Like, that's not, that's not a freebie, you know? And if you have nothing to bring to the table except a passion, that's where the conversation was earlier. If you just have a passion for it, that you need more than that.

Well, I was just asking because I can find— I run there, I have wholesalers sending me deals left and right.

Great.

I just want to make sure I'm bringing the right ones to the table.

But they're only right if they're right for you. That's why we asked you to do an investor survey. Find deals. We'll help you get into them. But we're not going to— we're not here to buy anybody's deals at all. Like, we're not looking to buy anybody's deals. No. So, I mean, like, for running on this, on this You want me to run anything we run, anything you want to run, hopefully is something you want to do. Don't bring it just to run it and see if you can shop it around, because that's, that's not going to be a— that's not going to be a lucrative position for you or anybody else. We don't, we don't have investors necessarily in here shopping for deals yet, but when we do, we know what we do with our investors. We tell our investors who to go talk to. We don't encourage them to take any deal straight out of this room and go and try and run it. Um, because again, we have all the information to help them get through it. But, um, again, I— you're, you're great, Ashley. We're, we're happy with all you're doing, and we're super excited to be part of the Eddie Myron Friday night crew. So we, we like seeing you there and working on deals with you there. So keep coming and keep bringing stuff, and we'll work through them, and we'll get some money going.

Okay.

All right.

And I was gonna say, um, I mean, because she's looking for a buy box, like, um, the whole, um, raw land, that whole thing, um, so that we can, um, park trucks and stuff on it, that might be something that if she could help source that, that would be, uh, one of our investors is literally looking for that right now here in Phoenix.

Mhm.

Okay.

So it's industrial, uh, parking industrial vehicles.

Mhm.

Uh, on the land, just renting dirt, literally.

Okay.

I'll keep that. Yeah. Well, she, we, we would want to get her caught up on what, what, what we gotta do with Westlake anyway. So we could definitely talk to her more about that for sure. Yeah. I'm going to wrap it up with a prayer. Heavenly Father, we thank you for the blessing of this day and the blessing in the life that you've given us to live. We ask that you go out, take us all out into your world now to perform things that your son would want us to be, uh, be doing in his name. Amen.

Amen.

Thank you guys so much.

Kick-ass week. It's Monday, so go out and, and stomp the world and make it, you know, make it your own until Friday. Okay, all right, thank you, thank you, bye everyone, bye.