AI Live - Land Shark Mastermind

Um, and, uh, Deanna and I met, gosh, years ago through all the networking, all the fun things, and we knew that we were going to do something amazing together. And, um, here we are doing something amazing together. And this is like the perfect example. I just have to share a little bit about this. Um, I— this project that we're about to actually talk about, this specific one, and we're going to talk about the bigger picture, of course, and what's happening. Economically and everything inside of Scottsdale. But this particular project, I actually heard about it months ago with somebody else and was wanting me to come in on it, and it just didn't happen, didn't happen, didn't happen for many, many reasons. And I always say, get the no with a happy heart because God's got a bigger yes. Now, I really— I don't know why I wanted to do this project, but it's just, it was in my heart and it was calling to me. And so we, um, I got the no with a happy heart And next thing I know, we do the 7 Streams of Income series. It was a 3-day virtual event that we did and teaching about creating multiple different passive income streams and the 7 different asset, like, different streams of revenue or income that you need to have and lots of different asset classes. And Deanna was a part of it. And then she had, oh, by the way, I'm doing this amazing project. I kid you not, it's the same project. I was like, wait, what? I get to do the same project only with you? How cool is this? So that was really exciting for me. And so that's what I'm excited to share. Now I want you to hear what we're about to share with you. This isn't a one-off project. In the future we will be doing some more, but this is the first one that we are putting together as a team. Now the whole team that has come together, this is not their first project all together collectively. The team has actually done dozens of these. It's just all of us now coming together as a team collectively to do it and, you know, do it better, more, um, uh, better just so many ways. And we're just going to add commas to all of our investors' bank accounts, which I'm really excited about. And it's a beautiful project where we get to leave every person, property, and community better than we found them. So we're going to dive into all the fun things. And show you all the fun things of what's happening. So let me share, share my screen.

And if I may, while you're doing that, I just want to say I echo Catherine's sentiments. You know, sometimes the seeds that you're planting with true authentic relationships within the business world, you don't always know. Catherine and I did not stay in touch because we thought we would get something out of the relationship with each other. We were both trying to give. We, we had this mutual passion for helping other investors and bringing investing to the people. And then all of a sudden, this opportunity brought us together in, in such a way. And I just think that's such an important piece of this, that when you're working with people, that are aligned with you truly and authentically on their, their wise, great things happen. Yep.

So, um, we're gonna dive in. Yeah, go ahead. You wanted to say something?

No, that I just wanted to give a little bit of props to that idea that, you know, good people will find each other. And, um, the other thing, sometimes opportunity arrives on a whisper. This, this, this project was brought to me for specific reasons, and then it found me again with Catherine. Like, I think that's really important. So if you're here, there's a reason that you're here. And if you're drawn to working with Catherine and I on these properties, whatever it is, let's talk. Um, and even, you know, like Catherine said, our intention is to do what more of these. And so if it's not the time, if it's, you know, stay in touch with us. This is going to be going on for a while, and good people will find a way to come together. And I just, I do love this, that Catherine and I knew something would come up at some point in time. We didn't force anything, and then here we are getting smacked over the head with a French country château in the middle of the desert.

Yep. So let me talk about quickly about why, why all of this. So these are the statistics. I just, for anybody who's not here and especially not here in Scottsdale and see what's actually happening, I just want to educate you on like why. And it's all about like the right time, right product, and understanding when you can get out in front of economic waves of people moving the market. That's where wealth is actually created. So if you go back to the baby boomers and you look at the biggest generation that was ever born, right? And economically what happened with them is that they were the generation that literally where Gerber was created, Toys R Us was created. Like you just get out in front of all of that. Now there's a whole new wave of what's coming and what's happening. So right now there's 173 Californians moving to Arizona every single day. Not year, not month, not week— every day. So let's just do the numbers. And I always say, do the numbers, the numbers tell you what to do, right? So here's where they're ending up. So again, understanding like, why is this happening? So, and it's been happening for over a decade. So just do the numbers on that, right? So that's over 630 1,000 Californias coming here to Arizona. So the ones with serious money, they are specifically landing in Scottsdale in, uh, and in Paradise Valley, right? So, um, what's happening is obviously what they could buy in California is significant to what they can actually buy here. And pre-COVID, they were paying $695 a square foot in Paradise Valley. Today the houses are going for over $2,000 per square foot with Camelback Mountain views. So you guys, I want you to understand, hold on to that number for just a second, the $2,000 a square foot, because that is significant to what we're doing. So the medium house price in Paradise Valley is now $3.7 million. Uh, the market hasn't corrected because of that inbound pipeline, just hasn't stopped. So why Arizona? So the math is that California's average, uh, is $750,000, where, uh, in Arizona the median income is $430,000. So don't forget that. So California's tax rate, you guys, here's the taxes in California: 13.3%. Arizona, it's a flat 2.5%. Oh my goodness, like, just do the numbers on that. Scottsdale's property taxes is only 0.03%. So this is one of the lowest tax rates in any major city across the nation. So this is why the right now, right here. So I want you to understand that as we dive into this and understand why we're doing more of these. So now let me dive into where, right, the where. So Scottsdale. But now let's talk about the Cactus Corridor, which is where this is. So there's a main road that goes through Scottsdale called Cactus, Cactus Road. And on Cactus Road, um, up in Scottsdale, this actually used to be— if you go back in history, this used to be where, uh, all the cattle ranchers were. There used to be literally nothing out here but cattle ranches. So it's all horse property. So you've got several acres, huge lots with like these 2,500 square foot homes, right? So huge lots because they had their horses there. Totally made sense. Now what we're finding is the people who are living in these homes lived in these homes for like one family the whole time. So these homes are 40 to 50 years old with literally one family has lived in it. That's it, because they were fabulous. Now if you look at the age and where this, this generation is going, they're retiring. And going into senior living facilities or in luxury RV parks, like they're just downsizing, traveling, whatever it is. So what do you do now in the Flipping Females days when we were doing this? You look at— do the numbers. Numbers tell you what to do. Now, if you were to fix and flip a 40 to 50 year old house, it's way more expensive than it is literally just to like scrape the house, mean tear the whole thing down and start from scratch. Because now— and that's what we're doing— so now we're able to literally buy these houses up for around $300 a square foot, right, Deanna? And then get this, literally demolish the whole house, which I know sounds crazy, but listen, 2,500 square foot house on a huge lot, we scrape it, now we can build a 6,000 square foot house for $500 a square foot. So now we're all in, 3 plus 5, $800 a square foot. Then we turn around and sell it. Remember what I said? Paradise Valley going for $2,000 a square foot. We're able to sell these for between $1,100 and $1,300 a square foot.

What? What?

Which is why we've already gotten 2 people making offers on this house before we've even broke ground. I hope you guys are getting the numbers around this, like why these are so insanely popular. And we've got more and more that we're going to be doing. This is just the beginning. So we're really excited about this. So moving through, how do I move the screen?

Sorry.

Doop, there we go. Okay, so I've already talked about this. So the market, the market resilience, understanding that who is buying these. And here it comes down to the who, not how. On our team, You want to talk about Eddie for a second and who he has in the pipeline of this? This is really important. Like, the money is not made on the buy, it's made on the sell. So talk about that for a sec.

Yes. Yeah. Thank you for taking us through this and the idea that these houses are end of life. We all know, you know, in the desert things don't last quite as long, but these are 40, 50-year-old homes. Built in a different time. As you said, original owners. Habitat is coming in. We're cleaning them out as well. So that was really important to me that we're using as much as we can. Now, my, you know, my development partner on this has done an excellent job. He's been involved in the Valley in real estate for about 10 years, 8 years specifically in the luxury market. As Catherine mentioned, he and the builders that he chooses to work with have done dozens of these projects there. And I love that, you know, Catherine lives there. As I talk to her, as I talk to lenders, as I talk to the appraisers, everyone who lives there understands what is going on and why it is going on. When you are there on the streets, the energy is palpable. You're on these streets with these beautiful old horse properties. There might be corrals in an older home, and there will be 2 or 3 of these houses being built down the street. It is so exciting to be there for it. If we go back to Eddie, he is, um, a former professional athlete. So we have the luxury realtor market. He's worked in that market for 10 years. He has made all the right connections with all of the luxury realtors in the community. These people want to sell his houses. It doesn't matter if you're a realtor and someone's coming in and wanting to spend. And think about this, they're not just wanting to spend this kind of money. They're moving there for the tax advantages. They're almost land banking. They're looking for a place. They're paying cash for these houses. So the wealthy people want to put their money into this real estate that is performing, in fact, outperforming many markets in the US. They also, there's a list of places that these people want to own houses. Boca, the horse farms in Virginia and Maryland, maybe something in Connecticut, Jackson Hole, Vail, Scottsdale. You're in one of those places where they want to be. Maybe they're horsey people, maybe they're sports people, maybe they, like one of the houses, need to have, I think it's 8 or 12 garages for their car collection, right? The— we have to think about why these people— it's amazing. I love this. They did it on a corner lot and there's a big quad garage on each corner of the house. It's amazing. So Eddie also has connections to the sports world, and at any point in time there are professional athletes looking to come. Why are they coming to Scottsdale? Well, we know all the hockey players love to live there. We know the baseball players have to be there for a couple months. They want a house where they know that their wife and kids can come, they can fly in mom and dad, and they're not going to have any stress because they're busy at spring training. So they're going to come to this house for a few months out of the year. They just want to know that it's there, pristine and perfect. Perfect. Eddie has that market tapped as well because that's the world he comes from. We happen to have a few Canadians still buying these things, right? These are people who own properties. They've got enough real estate in Canada. They own, you know, a couple of places in Muskoka and Whistler and such. They still want their desert playground. They're still buying. But this executive in-migration to Scottsdale, people who own their own businesses, who have that net worth of, you know, $5 to $10 million and more, There's a lot of them coming in. They want a good quality product. We're working with the best architects. Our architects and designers have followings. The builders, as you said, we're able to actually build for less than other people because they prefer— they want to work with Eddie because of the systems and because of the volume that, that we can do on these homes. You know, anybody know a contractor who loves chaos? No, they want the plans. They want to just go in there, build their house, no change orders. We don't— we are not customizing. We are building these as spec homes, but we know exactly what people want. It's nice, clean, easy. The who, not how. The people, the systems are all in place, and I'm excited that we get to offer people a way to plug into these things and work with You know, I myself have been investing in 3 countries for, for over 25 years. There's that experience, there's the experience of all these houses, there's people like Catherine Bell who have been living there on the ground, and everybody is really excited about this. So that's what I love about this, that if you're trying to decide between a couple projects, this one ticks a lot of boxes.

Yep, absolutely. Again, just follow the numbers, right? I just gave you the statistics of who's moving into this area and why. And yes, this literally is in my backyard, which I'm super excited. And on this one, these ones, what I'm really excited about is being able to go out on a weekly basis and do all the filming and be able to give actual, like, live updates of what's happening. Because I don't know what's better than that, like, seeing the progress all the way through. That's super, super exciting. So understanding that, again, what's happening, that these houses in Paradise Valley, which is right next door, being sold for $200 or I'm sorry, $2,000 a square foot, which when I tell people in other areas of the country, they think that that's insane, but it's what's happening and it's not slowing down, right? So getting out in front of it, understanding like why this is happening is such a big deal. And that, you know, again, we need more of these because of the demand that's there, which is really amazing. So this is the underlying asset that we're talking about right now. And really excited about, again, the designs and everything around it, which we're really excited about. So you can see it's a 6,900 square foot footprint. It's going to be— I mean, this is going to be absolutely amazing. I love the lot, the whole thing, and that there's a whole casita. So we'll be bringing you more updates on all of this. We have a lookbook, which it's in the Deal Room. You're welcome to look at all of that. But again, it's because it's a brand new house, it's gonna be, you know, premium everything, right? The chef's kitchen, all the premier finishes, the primary suite. I mean, it's gonna be an absolutely gorgeous, gorgeous model. But again, most of the time this will be somebody's second home, funny enough, but it'll be absolutely beautiful for them. So, and all of these houses are going to be like that. The team that we talked about, again, of course, it's me, Catherine Bell, my team, Deanna and her husband Darcy, and then Eddie, and then the contractor that they have. Again, each one of us has, has our own amazing resume, but coming together and doing it collectively is what this is all about. So we're just building a machine to do it again and again and again. Again, it's what the area is demanding and what's, what's being needed at this point. So our track record, again, all of us come, coming together to be able to do this, it's, it's significant. Again, we could talk about this all day long, but at the end of the day, we have the success. It's about, you know, doing the numbers, having the right deal at the right time, right location, but also having the right team. And the team has done a significant job separately and now coming together to do this collectively, which I'm really excited about. So how we're structuring this is that we have the debt secured. That's been a whole fun journey to go through. And then we have my fund, which is Titan 23. So the investors come into Titan 23, and Titan 23 comes into the entire project. So again, all of this, the legal information and the disclosure documents and everything are all in the deal portal. You're welcome to look over all those. This is just the legal stuff. But let's talk about this, Deanna, how the numbers are flowing through with all of this. This is really interesting.

Yes, yes. And keep in mind, we have to put these numbers together at the very beginning. There's little shifts and things, obviously. You know, as soon as you start construction, you might save a dollar, you might spend an extra dollar. I will say Eddie and his team never go over budget, have never gone over historically, gone over budget, which I love.

Yes, that research. Yes.

Yeah, yeah. So the investors, um, coming in for a total of $1.162 million. Uh, now you may ask, on a previous slide, Catherine talked about the Titan Group's participation. It's at $650,000. So there are other investors who are already in the deal. As we know, Catherine found out I was doing this deal and she came and said, how much room do you have left for my people? And I love that because in 2026 my rule is to only work with good people. So Catherine and, and people who invest with her, I think this is also fantastic because if you're investing directly with us, there was a much larger minimum investment. And so by investing pooling the money through the Titan Impact Group, you're able to access this at a, at a lower entry point, which I also love. So we've acquired the land. That land acquisition looks a little bit high, but I have to tell you that includes the work that has already been done on this lot because we're buying it from a known entity. The house that was there is already demolished. We're actually buying bare ground ready to go, trenching any day, and pouring concrete within, you know, a week or so of that happening. Permits are in place, drawings are done. As Catherine said, we have a 57-page lookbook. We are getting a head start on this. Generally, these projects take 15 to 18 months. We are actually stepping into this one about the 3-month So we've got about 12 months construction ahead of us. This is really exciting to me because we're saving those costs, but you're also saving this time as investors. It's a flipper. It's a quicker flip on our money.

So we already have the permits in place, right? Yes.

Yeah, we're good to go. So generally, you know, you're waiting, you have that risk in development where you're wondering, are we going to get approved for this? Are we going to have to change anything? We know what we're doing. They're actually ready to get out there and start trenching for the plumbing and electrical that goes under that pad. They will pour that pad, and we will have sticks heading up in the air in the next 4 weeks, probably, so that when Catherine gets out there to take these photographs every week as she drives by it on her way home, we'll see these sticks. So there's— there are things about this one specifically that I love. Having that head start is one of them.

Yep, it's a shovel-ready project. So this is a really big deal. So I hope everybody gets that time is money, and we just shaved off 3 months.

And the thing with development, I mean, if you've, if you've invested in real estate, you understand the closer you are to completion, the lower the risk. If you start with a piece of raw land, you have to zone it, you have to put in utilities. That's how you can make the most money. That's where the highest risk is, the longest timeline. This way you're, you're almost stepping in, I mean, I don't want to say halfway, but you're stepping in midway at the, you know, at the close to the start, but we're already midway in this. So a lot of that risk, we're not dealing with zoning, we're not dealing with approvals, that is all out of the way. I love that for people who want get development-style returns at a, at a point in the development where some of that risk has been mitigated. You know, we want to be careful how we talk about that, but now it is construction. We are out of that development phase that is generally the highest risk.

Yep. So, um, this is the fund level economics. Um, so we will— how we're splitting it, it's all in the disclosure documents. I'm not going to go into that here. Um, the projected gross sales. So this is really interesting. So we are— the scenario was based on $5.8 million, but Deanna, I want you to tell them what happened last week, because this was so exciting.

So I've been busted for being a little bit conservative on, on my numbers. $5.8— we, we started showing investors anything from $5.6 to $6 million. $5.8 caught the eye of an investor who said, well, why don't I buy it at $5.8, and then I know it's going to be worth more. Last week we got our appraisal. And our appraisal came out at $6.2 to $6.4 as an anticipated sale price. I'm still running, I'm running my numbers at $6.6. Things could happen, things could happen, but like me, Catherine is conservative as well. I love that you're showing these numbers at $5.8, um, and just know that that appraisal came out saying 6.2, and it could go up to 6.4, uh, through the sales process.

Yeah, this is really exciting. Again, it comes down to the demand. It's so amazing. So when we're stress testing the model, like we just said, we stress test it at 5.6, 5.8, 6, and then 6.2. So you can see the numbers here for a 12-month hold, an 18-month hold, and Statistically, these houses get sold before we're even finished. So that's the good news. So the team is all on board with a promise of being out in 18 months, but a go for of like getting it done in 12 or less. So we're really excited about that. Um, and so the projected timeline and so the presale exit strategy. So again, we acquired the lot, uh, the vertical construction happens, the marketing is already happening, and, uh, the target completion again is 12 months. However, we're like planning it out for 18 months just in case that there's something that happens that we're not present to. So again, this is where we stress test to make sure that we're we looked at all scenarios and are giving the worst-case scenario for this project, and of course hoping for the best. So, um, the market valuation is that, uh, you know, Arizona luxury values, um, is that there's a shift in it. So what we're seeing is there's the shift continues to go in the upward trajectory.. And it has for over the last 10 years, and it's not slowing down. Anybody who's living here understands what's happening in the jobs that are being brought to this market are significant, and all the major manufacturers are actually coming to Arizona. And in spite of what everybody says, there's a water shortage. There's actually not, but that's a whole other thing. Um, and yeah, what's happening here, and there's like, it's a very, um, tech forward state, and even like the mayor of Phoenix is very, very tech forward. And so it's bringing in some very, again, just very, very wealthy people that are wanting to be here because of the things. So one of the things that just got announced, all announces, is that the city of Phoenix just recently approved that what they're bringing in is going to be actually Drones, the human flying drones, like you as a human get into the drone and you get to fly.

Catherine thinks I will get in one of these. I'm not sure. Speaking of flying, let's talk more my language. The Scottsdale Airport expanding for the private jets.

Yeah, which is a really big deal.

You're so right though on the tech forward and the fact that You know, as a real estate investor, I don't believe— I watch for shovels in the ground, and that's what's happening. The fact that they're putting those human drones in the air while everyone else is still talking about them is incredible. That's why Phoenix has become known for this diversification, and I'm here for it.

Yep, absolutely. So, um, the next one is construction is subject to labor shortages and material inflation. So the project is shovel-ready, like Deanna just talked about, and it's locked in with the plans and is being overseen by, again, the same team that has been doing this. So again, uh, we— our goal is to do 12 of these projects annually, and this one in particular, it's backed by a $150,000 contingency reserve. So we have those built in just in case, and they're built into those numbers to make sure that, um, again, worst case scenario, should something happen, we stay way, way, way conservative because we would rather under-promise and over-deliver and delight our investors. So we're always going to do that. It's how we've always done our projects. Um, and then speculative builds are inherently, uh, liquid and susceptible to delays. So again, because of how we're doing this spec build, and more importantly The pipeline that Eddie is bringing in with the potential buyers for this, we're already marketing this right now. Like, I can't even stress this enough. The fact that we already have 2 people already looking at this before we broke, you know, dirt is a really significant piece. We are all very, very, very hyper-focused on the exit strategy of this because, I mean, that's where the money is made. So we really want to understand that. So our, you know, again, promise of 18 months, but a go for of 12. Yeah.

And everybody is motivated and incentivized on that sale, right? I think that's really important. So the team is obviously incentivized to do that, right?

So this particular project and all projects going forward in this particular thing that we're doing is they're all for accredited investors only. So this is a Reg D. It's a 506, and so you have to be an accredited investor. If you don't know what an accredited investor is, just Google it or ChatGPT it, and it'll go through it. Or you can talk to my clone, CatherineBell.ai. She does an amazing job educating people on all things investment real estate related. And so you want to make sure that you are digging into this, talk to your, your team, your legal, accounting, all those advisors to make sure it actually fits. Whether it's this investment or any, you always want to make sure you have the whos that know how and are backing you up and looking at all the things. And we are here to have conversations about this and all future projects. But I just, I hope that this was educational for you guys and you're helping see like what a brilliant opportunity this is. One of many, many, many asset classes that I think everybody needs to be in to make sure that you're portfolio is diversified, right? You're getting out in front of the wave, which is really important. And, um, you know, able to— I always say you send your money out there and have it come back with lots of friends. So that's the commas we want to add to your bank account that we're committed to. So we're going to be doing lots of this, which I'm really excited about. So how do you access the deal room? Um, this is a really great question. So, um, Carol Hold on just a second and I will actually get it to you right now. That's a brilliant question. I'll put the link in the chat for you. Um, so you can check it out. Um, we are under a tight timeline. I've got 3 weeks to get, um, the $650,000 raised. Uh, we've already gotten several hundred thousand committed. Now we're just moving through the process to get the money. You know, in the door to make that happen. So I know that this is going to fill up very, very quickly. So if you are interested, you know, for sure, let us know right away, because again, once it's gone, it's gone. We are going to do more, but we don't know when we're going to be doing the next one. So that you want to— hold on, trying to type and talk at the same time. Sorry, I'm— because I'm not that talented. Okay, does anybody— so Carol, hold on just a second. I'll get this to you. Does anybody else have any other questions? Okay, so Carol. I just put it in the chat for you. So there you are. Okay. So if anybody has any questions for this, anybody I know, or live streaming, anybody has any questions about this or other things that we're doing again, we've got our 7 streams. You're welcome, Carol. Thank you for being here. Thank you, Susan and Adam and Steffi, like everybody for being here. This is amazing. And anybody that watched the recording of this, feel free to reach out to myself or Deanna. And, um, we're here again. We're clear that we're going to be doing more of these and building up more ways to add more commas to people's bank accounts. But again, I want to put in your mind, you want to have a minimum of 7 streams of passive income, and you want to make sure that your, uh, 7 streams of passive income are diversified. This is really important as an investor, and we're going to be doing more and more. Talking about this and educating and bringing in different asset classes and different things that we can do. But until then, um, we're super excited about this. I hope you all get this. I hope this was educational and helpful inside of understanding what's going on with Arizona and economies and how all these fun things, these political things, uh, drive different economies. So again, it's the California is doing what it's doing and we're we get to benefit and say thank you. So, Deanna, is there anything else you want to share before we let everybody go?

No, thank you so much for having me here. Thank you, people, for considering joining our team.

Love this. Okay, you're welcome, Susan. Thank you for coming. You guys have any questions, feel free to reach out to me. There's my phone number at the bottom of the screen. CatherineBell.ai. She's free to talk to you too if you don't want to talk to me. She's there. She'll have a whole conversation about it, but I'm here for you. And Deanna, super excited about this. So thank you everyone. Have an amazing evening and we will talk to you all later. Bye everyone.