AI Live - Land Shark Mastermind

Good morning, ladies.

Good morning.

How are you?

Good.

How you doing?

Good.

How's your legs doing? You okay from the burn last week? You said you burnt the back of your leg with the car seat.

Oh, uh, yeah, it is. So then, um, what was it, Saturday we went, so my car pretty much like She sits in a garage, so she's pretty much okay until I like have to park her outside of a garage. So we went to a home show over at the big stadium this weekend and, you know, parked outside, made sure the wind— the shade, the window shade or whatever was in. And, um, you know, went in, did our thing, came back out, and of course it's like—

but it—

yeah, no matter what, it's like your car gets baked. And, um, so then I'm like trying to drive, but I'm having to like hold the steering wheel with the tips of my fingers because I forgot to bring my oven mitts. I should drive with oven mitts.

It's funny you said that because what I'll do, and I forget to do this sometimes, but if I know I'm parking in the sun, the very first car I had was a 1964 Dodge Polara. Yeah. And I would have to, when I parked it, I would park the steering wheel upside down so the sun wouldn't hit it.

So because I always drive with my hand at the bottom of the steering wheel.

So, but oven myth is pretty funny.

I never thought of that.

Yeah, I think I just need to put oven myths. Like in Canada, we'd wear gloves, but driving gloves.

Oh, that's funny.

Have driving gloves because it's a real thing. So funny. So good morning, everyone. Super excited that we're going to— we're here waiting for everybody to pop in. We've got more guests coming. We went to an event on Friday. It was a networking event and, um, met some more really great people, which was really fun. And because it was at night, my car wasn't 100, and holy crap. So Ashley is actually one of the beautiful people that we met, uh, another, uh extraordinary woman, just, you know, doing all the things, building out multiple streams of passive income for her family. So, uh, we'll be talking more about, uh, all that, all the fun things. Um, so Tommy, did you want—

he—

we're trying something new, so we built out a whole SOP.

Do you want— I don't know about starting something new as much as we are just expanding what we do greatly. Um, I mean, we went over some results last week about what it was like with, um, how we— well, first of all, over a year doing this, right? Um, we hit our 1-year anniversary back July 1st, so, uh, that was cool. Um, and so what we're doing now is we're expanding on what we've already been doing well And we're wanting some feedback from, from the people that have been coming. And then some new people are going to be showing up and we're going to get feedback from them as well, because AI is not going away, as Catherine likes to say. And some of us use it so much that it's almost like, it's almost like breathing now. Some people use AI so much that they don't even realize the rest of the world might not be using it. So, and we've encountered some interesting, you know, you know, interesting, uh, let's say, uh, emotions about it, uh, from people. Some people are, are, are threatened by it still to an extent, which is to me, um, kind of, uh, again, kind of a shocker. I don't know how, how to, how to really receive when people are upset or, or negative toward it. Um, but maybe you can tell me how you feel about it, Catherine. What, what What happens when people are negative toward you about AI?

Well, first I recognize that we happen to be early adopters. When you understand what type of person you are in personality, there's people who are way early adopters who hear an idea and jump on it. And if it works out, it works out. If it doesn't, it doesn't. But they can see things very quickly. The next set of people are they want to see it be used. And then they're like, oh, okay, and then they jump in. So there's the early, early, there's the early, and there's better words for it, but it is what it is. So I'm clear, I'm like in the second boat, and I think you're in the first boat, I'm in the second boat. And then there's people that will wait, and on the learning curve of everything, of where we're at, there's people who will literally wait, wait, wait until we're literally at the very peak, and it could be, years from now before they finally go, oh, maybe I should use this. And then a perfect example would be like when the World Wide Web first came out, and they used to call it that, and then, uh, the WWW.

I remember it being called the WWW. I was waiting for them to drop the WWW.

But even before that, yeah, even before that was World Wide Web. They called it World Wide Web. And I remember, like, I literally remember, I was like, you know, people were like, why would I— why would I have a website for my company? I'm in the Yellow Pages, right?

Why am I gonna have— why am I gonna have an email address? I already have a mailbox. I don't need an email box. I already hate—

or who am I gonna email? Nobody I know has an email. And how do you do it anyway, right?

What's the difference between .com and .net? I don't get it.

Right, like, yeah, so again, it's Macy's, that's what. So I was— I'm— I've always been an early adopter, um, and then other people, again, it's like, uh, people still use generic email addresses for their companies. That's a whole other—

I do, I do, and it's because people get spam. Like, once they figure out how to do it, this is where the flip side of this is, you learn how how to utilize AI so well that you build bots that go out and just spam bot the hell out of everybody with, with business addresses. And the big suppliers are like, whoa, whoa, whoa, we got to put up these filters. So all, all business emails now automatically get, you know, flipped to junk. So, or spam. And so inside of that, that's why I went back to using like a regular Gmail account is because it recognizes it on somebody's Gmail account. When I email Gmail to Gmail, it doesn't. It doesn't bounce.

So yeah, so to answer your question, depending on where people are at in the process, you know, again, people were afraid of the World Wide Web, and then they were afraid of email, and then, and then texting came out. Why would you text when you can just call somebody, right? Now we don't even call people. We don't even answer damn calls. It's text me instead, right? So it's— this is just a part of that curve. Inside of all of that. And more and more people, we've already, you know, they're already discovering people are going away from, hey, Google that. Well, now it's ChatGPT that, or AI that. Like, they're asking AI more than they're asking Google. So again, it's just, it's understanding the learning curve for all of it. And some people just need to go through their process so that they feel comfortable. Adapting a new technology, whatever that is. And we get to grant them grace in the meantime, do all the things that we do, add the commas to the bank account. Like, one of the things I hear consistently again and again and again— I heard it again on Friday night when we were at that networking event where Ashley was— is I've had so many people say, yeah, I've heard of that, you know, people can use AI for, you know, making money, but I've never heard of anyone actually doing it. And, you know, we share our story of how we've used it. Like, you know, I used it inside of it to become a, you know, 5-time international bestselling author. I have all of my books connected to my clone, CatherineBell.ai. My clone has had over 118,000 conversations with people, and out of that, been able to successfully add 7 streams of passive income to countless families' bank accounts. So that they can go on and have that financial freedom and be able to go make a difference in the world. So whatever that looks like for them. So we have very successfully integrated it. But again, that's how our brains work. Our brains work very differently inside of this. And to the point which we're going to show everybody, so if anybody has any deals that they want to actually run through this, we're going to have you get them ready because we're going to run through Deal Hunter because we have very successfully created Deal Hunter to literally be able to not only analyze deals but literally show you all the different options of how you could generate income from those deals and, um, add commas to your bank accounts so that, um, you know, you have that financial freedom to your families. So I know Mike, uh, we've been working with Mike Butler, um, around analyzing his deals, and he's got some multifamily, which we're excited to be able to partner with him and raise capital for. Laura and him are now working together. Laura is our transaction coordinator, and she's helping get all our due diligence documents in order so that we can proceed forward with creating all our legal documents around being able to do this through our, our fund, which I'm very excited about. And so Allison, I see you're here. I know you're at work, honey. Glad you're here listening. And Ashley, she actually has a really cool deal that we started, like, just in— I don't know, Ashley, we were there for what, a whole 4 or 5 minutes running it, and the things that it showed were pretty extraordinary. So I know that you have a deal that you're looking to run for this as well. So let me go ahead and do the official welcome, everyone. Thank you for showing up. I know we've got a lot of people who are actually watching our livestream, so we appreciate you watching our livestream. If any of you want to join us because you have deals that you want to do or be a part of the conversation, feel free to go to landsharkmastermind.com/webinar. You can join the conversation and be a part of that. Because way more fun to be on the court playing than it is just to be in the seats observing. We want you to get on the court of your life. Um, and this, uh, this is all brought to you by Titan Impact Group. Titan Impact Group is the sponsors of Land Shark Mastermind. And so if you want to know more about that, feel free to go to our website titanimpactgroup.com. And of course, we have our 7 Streams Investor Club. If you're looking for more information about that, please reach out to me, and we're gonna be launching those here pretty quick. So we're really excited to have people join us for creating the 7 streams of income for their families. So we have Tommy, we've got guests here today, obviously. Ashley Allison is at work, so she's listening in the background. I happen to know that. So I love that, you know, we can listen with their AirPods to all the fun things, but she gets to listen to it live. So I know Ashley has a deal she needs to run. Laura, I don't know if you found any deals recently.

I haven't recently, but I will find some time this week to look for some.

Okay. There you go. That sounds good.

Mike, I know you're hard at work at your, your 2 deals that you're— I don't know if you have any more.

I may. I'm seeing your property on Wednesday. Um, uh, actually, Laura, thanks for the call the other day. Uh, file everything there.

You should be good to go.

I'm gonna get—

yeah, I'll be working on that today.

Perfect. Um, I may have someone on Wednesday that you know. Uh, it's a large, large, uh, you, you like this, uh, like architects on your last property. So they're digging into—

for some reason, Mike, your connection is really garbled. Um, you might have to turn off your, um, video just so we can actually hear you.

Oh, okay. Is that better?

Yes, there you go.

Yeah, okay. Essentially, my phone does that. Anyway, I was just telling you, Catherine, I may have something on Wednesday. I'm touring a property on Wednesday. I know you like architecture and older buildings. This might be a—

I think you'll like this one.

I'll let you know if it's worth it.

Cool.

Yes, I love architecture.

Me too.

So fun. Okay, Tommy, so—

well, yeah, we were talking about how to make money on AI, and then you were talking about being at that event with Eddie Marin. Um, Eddie has this group that he runs out of Scottsdale that's, uh, um, pretty, uh, pretty energetic. We liked being there. It was definitely, uh, uh, an experience, uh, meeting a lot of new people. So, uh, enjoyed that a lot. Um, and then I didn't— I don't think I got to meet Ashley, but I'm assuming she was at— that's the event you're talking about, she was at?

Yeah, she was sitting to my left.

Got it.

Got it. Wonderful. Well, welcome to Ashley. Welcome to Allison, I believe you said was in here as well.

Yeah, Allison was standing with us when you brought me the little Bundt cake.

Got it. Got it. And then, of course, Mike Butler. Always great to have him coming in. And Laura Miller, our cohort and partner, BFF extraordinaire., and TC Expert. So we, we meet in here every day, Monday through Friday, to talk about real estate, and we talk about AI. We are— I heard somebody say the other day, are you AI first? And so I discovered, yep, that's me. Everything I do is AI first. I don't waste any time trying to do it the old human way. Like, I see people walk into meetings with notebooks and pens, and I start to snicker a little bit because I'm like, oops, they're old. And here I am, 51 years old, and I'm relying on my AI device that's picking up the conversation, and it's going to tell me later all the stuff I need to know. I'm not going to sit there and waste my time writing down a bunch of notes and not know what the hell I'm writing notes about. I still write notes, don't get me wrong, but I don't do everything by note anymore. And so another example of this, I want to share it with you guys real quick before we dive into some deals. Um, let me see, I'm going to open my share button real quick, and I'm going to go in here. And this morning I, I opened up— I don't know if you guys are familiar with a program called Opus Clips. Opus Clips, um, is a, um, video editing program software that allows you to, uh, do an amazing amount of, uh, video editing, uh, and, and, and all kinds of cool things. And they have all these Uh, they have all these, uh, new features that they're coming up with. And as you can see up here on my— I call it my polluted, uh, uh, menu bar up here. I've got tons of windows open. So, but what I did was all these new updates that came online over the, the last couple weeks, I haven't been paying attention. They're pretty important. And oh my God, the amount of time it's going to take for me to sit here and go through every one of these and like, I want to know about how to do all of these. So what I did was I ran through real quick and I just copied— I grabbed the, the, you know, the link, went over to my ChatGPT and I said, here you go, pasted it all in there and said, review these websites. And so it did. And so this is how I'm buying back my time. That's how I make money using AI. It is because my AI knows everything about me. It's going to make suggestions about how that update's going to be beneficial to me, and I'm not going to have to waste a lot of time trying to figure that out. Here's where I make money. If I got to pay somebody as smart as Laura Miller to sit here and go through every stupid one of these websites, okay, that's expensive, right? So AI $20 version, that's the genius level of Laura Miller, right? $20 a month. Like, Laura Miller's way more than $20 a month, I guarantee you. But I can get that same level of expertise on certain things, not everything, on certain things such as reviewing these websites and telling me which ones are going to be good for us and which ones not. Right. And so it even tells me right here, processing 54 videos. This is what this update is best used for, you know, operating Opus Clips with using an AI agent. And it's going to tell me how to incorporate Claude, something else I just bought. We, we use ChatGPT for a lot of stuff, but we also use Claude. We also use, uh, Gemini. Did you notice Gemini is now called— or Notebook LM is now called Gemini LM? Oh, oh, right.

Okay.

Or not Gemini LM, Gemini Notebook. Sorry, Gemini Notebook. So Notebook LM has become Gemini Notebook. Right, interesting. So I can do voice cloning and intentional dubbing on videos, like you, uh, replacing the original speaker's voice with my own voice. Like, I can do that with Catherine's real quick.

So that's awesome.

Or I can get it to speak in Spanish and tell everybody in Spanish what I'm talking about, and I can become like my favorite thing to watch on Saturday mornings. Old kung fu videos with really crappy lip syncing over the top. Oh, that's my favorite thing to watch ever, right? I thought I would learn Spanish, uh, uh, Chinese that way. It didn't work. Um, anyway, the AI-generated video B-rolls, like, it, it gave me every single one of them and told me what to expect. And, and again, if this is useful for you, this is how your real life is, is like you're just— you don't have time to do stuff, then here you go, get busy.

Right?

So, off to do a real quick result of what I've been working on. Also today is that I've got a, a paint job that came in. I used free estimates. I put together the bid, sent it over to them. We got the job. Right? So now what I'm gonna do is I'm gonna tell it I want to get an Arizona ROC contract filled out for this job. Use all the numbers above. I don't have the homeowner's name, but you can leave that part blank for now. This is for Imperium Construction LLC. We will be starting the job July 25th, and it'll take us 7 to 10 days to complete depending on the weather. We will need to collect 20% down, 20% day of start, and full payment for materials at the day of start. We will collect the rest of it at the finish of the job and completion of the job. Make sure to detail everything and put it into a canvas so I can edit, copy, and download. Now, this is, this is a GPT model that I use. It's a white label for me. I use this because this is the way that I do contracts, but you can actually do this. Anyone can do this. Use 3 Estimates to do contracts wherever they're at, as long as you have pictures or a product for it to look at. Oh no, but it seems like it stopped my— uh, looks like it dumped all my— dumped off all that information. Didn't work. Darn it. Oh well, it will do it. Uh, it just— it's saying that there's a new version. Huh, I don't know. That stinks. I don't even know what happened. Anyway, uh, it did, it did provide me with a, uh, a contract. Here's the residential contract right here. I'd get them to sign that, and, and then I'd be all set. So I wanted it to create a different one, but this is where I, I kind of intermix Claude with, with ChatGPT now. Claude prepares and does a way better job of putting together a contract than ChatGPT does. So I will take it from ChatGPT over to Claude and finish my product over there. So, and then to get busy on what the real true purpose of being in here is, we're going to start doing some deal hunting. So if you guys have deals that you want to run, um, put the address in the chat, or if you already know how to run them, go ahead and get it started and get ready to share your screen. I don't know if Blake and Katya are showing up today, um, or Tina.

Katya's still in Africa. Yeah, yeah. And Blake— Blake isn't here yet. I know he's been house-sitting, dog-sitting.

So what I'm doing is I'm going to put in a property right here called 27033 North 64th Street, Scottsdale, Arizona. Scottsdale, Arizona 85266. And I'm going to tell it run this deal. And what it's going to do is it's going to dive out and try to find some, some, uh, comps. It's gonna, it's, it's going to do a lot of things that I've already taught it to do. And what I taught it to do is over, over 30 years of land development, real estate I taught it to go out and find property. I taught it to go out and run that property as a deal. We ran a piece of property. Somebody last week came in, guy by the name of Steve came in and he had a deal down in Tucson where he has a building that Starbucks rented it for 9 months and then they moved out. And so when I ran the deal, it came back and told me what to do with it as an investor. Which basically insulted him because it was the lowball offer. So I had to come back and tell him, no, I wasn't trying to lowball you, partner. I'm just— that's what an investor is looking at. I was like, if you wanted to look at it, if you wanted to look at it like we're trying to sell it and we can give it a new perspective, then we can do that too. But it's always going to look at it like I'm trying to buy it and do something with it. So So this one here shows that this, this, this deal, this guy wants to get a $1.76 offer on, on the, on the property and he's stuck on that price. I tried to offer him $1.76 and turn the numbers a little bit to kind of benefit us. And he was absolutely, hell no. So it was a rough deal on that, but it's outdated, super outdated, needs to be updated. It's currently an Airbnb, but not an expensive one. Um, so we can go do a small tour of this thing. Um, this is all, this is all off of, uh, off of the, the link that this provided us, right? So, um, oh, apparently we have to 3D tour this thing. I don't— inside the door, here we go. So, I mean The windows are beautiful. However, um, they're outdated. They, they all need to be replaced. There's a poker table and a card table, or a pool table and stuff. This is a daily Airbnb. Um, it's owned by a, a guy that doesn't do anything but, uh, throw frisbee, uh, throw frisbee golf. He's a frisbee golfer. So, but it could definitely use Uh, this could use a way better system. Trying to get in the damn kitchen. Horrible. Anybody else, uh, ever experience like bad, um, like like the bad results. This is the bedroom. Bedroom was pretty decent. I want to see the damn kitchen because we went in the kitchen before.

This is—

I prefer to flip through pictures rather than do those virtual tours.

Yeah, this is a movie theater. It's, it's homemade movie theater. It's not even legitimately movie theater. Um, I'll just say that. There's the kitchen. So as you can see, just outdated cabinets, outdated layout. It's got a— it's got an island in it, but, um, I think that, yeah, they're calling this the dining room. Let's see what we can get. Get a little bit closer into the kitchen. So you got beautiful view out the side right here. Um, the ceilings are tall. That was the good thing, was like the ceilings are super tall. Um, over here on this wall it's got this fireplace, and on the other side of the fireplace is the— oh my God, I'm going to get seasick. Go the other way, please. Yeah, there's like a fireplace over here, and TV is up here. Behind this wall is— no, behind this wall over here is where the, the movie theater is, and then there's some sort of bedroom back over there. Um, another bed. Yeah, here we go, another bedroom. But no closet. So— oh yeah, no, it did have a closet. Didn't have a bathroom. The, the movie wall is behind here. I remember that. Catherine, did you go walk this one with me?

No.

Okay. Anyway, I'm trying to get off of the 3D thing. It's driving me crazy.

Well, and it makes me wonder if some people don't realize, like, what outdated is You know, and again, it's in a pretty spot, right?

And it's going to be an upcoming area. It's very upcoming. Just down the road is going to be where they're doing the Cardinals' new stadium. The backyard has a lot more room to go back here. Like, we could move all this pool equipment over here somewhere and put a freaking pickleball court in there. So like, there's still a lot of room. And so I think it's about an acre. I think it's a pretty good acre. So because there's the fence is not the boundary line. The boundary line's out here still. There's like 10 foot in between. 20 foot.

I mean, you can almost see like a white line on that right side.

Yeah. So I mean, there's still room for sure. So, and then this back here could become a casita. It's just a, it's just a little, a little, you know, cute, uh, like fireplace thing. The guy's a disc golfer, as you can see. So Swimming pool is kind of smallish. I definitely could get a bigger, but outdoor space is all right. There is water damage from a roof, but they said they had the roof repaired. I don't know what that means. So, but this right here is a big cost segregation. Like, as you're looking through this, imagine how much cost segregation you can do and, and, and, you know, depreciation you can do in this place based on, like, again, We know this is outdated, but the taxes don't— they don't care. Right. And so getting, getting all this wrote off this year, done. Next year, all brand new.

So for those of you— so really quick, I want to make sure, Ashley, are you— for yours and Allison's benefit, do you understand like the cost segregation and what we're talking about? How you could use that, utilize that for if we were to take on this. Do you understand what that is?

Yeah. The— they come out and look and see what— how much life certain things have left in them, like the roof or the windows. And then you can just—

not just the roof or the windows. You can write off— you can write off the carpet, the cabinets, the trim, the pool, the casita, the landscaping. You can write— you can get— it's called a cost segregation study. By an engineer. They'll write off— they'll go through and value out everything in here. And then what you do is you get to write that off. And this year it's called bonus depreciation. Anything that has a 1-year to 5-year lifespan— and it's not how much life is left in it, it's how much life it's expected at. So like the windows have a 20-year expectancy, but the carpet is 5. So they're going to give you a full what's called a bonus depreciation. You can take all 5 years on day 1.

Mm-hmm. Yes.

You could go in and renovate it, right? And you're—

well, let's— before we go and renovate it, let's finish. What we're doing is we have a 2— let's just say we have a, a $2 million, uh, active income. I'm a realtor, I sell houses every day. I may— this year I'm going to make $2 million on taxes. I need to write off $2 million. So if I buy this place right here and it's, it's for sale for $1.76 million, I can buy this place for, say, 10% down. That's $176,000. I got to, I got to come up with $176,000 to do 10% down. I got a $2 million income. So I'm pretty sure I got at least $176,000 laying around somewhere. Right. And so when I do that, I buy it for $176,000. But then I have I have this, this engineering firm come in and give me tax write-off, a cost segregation study on everything inside and outside this house that I can write off within the first 5 years. And so if they go through and they're like, well, this putting green will give you, give you $50,000, the casita will give you $20,000, the, the all the doors and windows Every door and window is $4,000. And so you just add that up times whatever. And so the goal is to get to the point that the cost segregation study says I can write off $1.2 million worth of stuff. And so when I do that, my $2 million tax bill for being an amazing realtor goes down to $800,000. I just bought this house for $179,000 plus closing costs and all the stuff. That's another $200,000. Now my tax bill is $600,000. Do you see what I just did? Mm-hmm. And so it's $600,000. And the other thing is, this is a short-term rental. I'm not living here. I bought it as an active income property. So that's how I get to write it off, is that I'm going to be an active income property right here. Here's the other part. This place is only rented 6 months out of the year, not full year. So the income it actually makes is also write-off because I'm not making any income on it. I'm actually losing money and I can do that for 3 years. Right. So that's how, that's how I shop as a, as a very wealthy investor with, with $2 million to write off. I'm going to buy a $2 million home and that's how I'm going to write off the $2 million home is by breaking it up into cost segregation. And knowing what I can do with it, what I can't, etc. So inside of Deal Hunter, it actually gives me as an investor, it gives me some ideas. It's going to underwrite it as a short-term rental. So basically assuming that 40% of gross revenue is, is going to be my operating expenses, I've got PITI and then, you know, figuring in there that I'm going to have a debt of 75% of the loan-to-value. 7% rate at 30, 30-year amortization. Management is included within the 40% operating load. So looking at it on the downside is if I take the gross short-term revenue of like the $180 million, which is about where they're at, I'm going to be negative cash flow. But if I'm on the upside where they're at the $260 million and my net operating income is at $134 million, I can probably value it at a 7.6% cap rate. A DSCR score, commercial DSCR score of 1.27 is now okay. I'm meeting my DSCR and I have a cash flow after debt of only $30,000. For a rich person, I'd rather pay taxes on $30,000 than on $2 million.

Mm-hmm.

My tax bill for $30,000. Way different than $2 million.

And then what about when you do the depreciation? Isn't it that they want that money back when you like sell it?

No, no, because it's an income-producing asset. And so if I, if I write off all that on my— if I write all that off on my taxes for this year, next year, that's what Catherine just said, is that we're going to remodel it. It's for next year., and to get to write off my $2 million for next year, I'm actually going to gut it and I'm going to remodel it and I'm going to spend $3 million doing that. And then I'm going to write off all of that as bonus depreciation. The rules changed. The rules changed as of 2025 when, when the One Big Beautiful Bill Act incorporated certain benefits to investors. And this is one of the benefits that investors got. Was being able to take what's called 100% bonus depreciation.

Mm-hmm.

And so they get to take all their depreciation up front, and that way they can keep more of their income. And then there's no, there's no recourse or consequence if they, if they go next year and do something different. Okay. It literally, like, every clock calendar year cleans the clock.

Okay.

And so you get to do something different. You're not going to be able to do it with the same property, but you will be able to do something different with the property, if that makes sense.

Yeah, that makes sense.

So it's kind of like when you, uh, when you play Monopoly, you land on the 3 properties, you get to build houses and hotels. Now, you might— you could probably do that on that turn, but it's probably better to go pass go a couple more times, then start buying your houses and hotel, you know. So it is the steps in a process type thing. Michael's got his hand up. What's up, buddy?

Thanks, Tom. I'm going to stay off video because I think it'll work better. Tommy, correct me if I'm wrong on the cost seg. I always understood it that if you take the accelerated depreciation, you have to keep it for at least 3 to 5 years because the IRS will do a clawback. On some of that accelerated depreciation.

That was the rule until they did the— until they did the 100% bonus deal inside of the One Big Beautiful Bill Act.

Okay, good. So I know there used to be a clawback, but that's— that's gone now.

That's excellent. It's gone for now. Not gone now, but gone for now. I don't know if they're going to sunset it or if they're going to make it a permanent thing. But what it allows you to do is get through development faster. And that was their rationale to it. Makes sense, right? Because so many people were buying stuff and then just letting it sit there and do nothing for 3 to 5 years and then selling it to somebody else to do the same damn thing, right? So there was no incentive— incentivization to actually fix it because you were, you were held to that regulation. And I call it the, uh, uh, uh, that regulation was an anti-stimulation, uh, clause. And so, yeah, it makes sense. Like, you're working the system, but again, you're still working the system. Like, it's going to benefit the system. It's not a, it's not a hurt, it's, or hindrance to it if you do it that way, you know. Right, right.

That's good to know because I didn't know that it was— I knew you can do the 100% one year.

Yeah, you got to find CPAs that understand that and know, know that that's, that's available now, but Yeah, you're not— the only thing you're not allowed to do is take your depreciation and your accelerated depreciation in the same, in the same tax bill.

Right, right.

That's correct. But you can go as far as on the other side of it to, to do the, do the other.

Right.

Yeah.

Yeah. Actually, on that note, Catherine, did I tell you, Catherine, that through a co-investment vehicle you had an investor who was looking to do that very thing, take advantage of that 100% depreciation.

Yeah.

Well, and the clawback thing too, let me just say to this is if we bought the house and then sold it. Yeah, there's a clawback on that because then you're dealing inside of short-term capital gains and stuff like that. So yeah, there's that aspect of it. No, the idea here is that this is a buy and hold play. They buy it and they hold it.

That's fine.

They buy and hold it for 3 years because in year 1, your depreciation, and year 2, you're doing forced depreciation, and year 3, you're shutting it down as an STR and selling it as an asset. Right.

Yeah. I always thought— was under the impression it was— you need to hold it for at least 3 to 5 years to make the cost of this segregate— cost segregation worth the effort.

Technically, technically, the way that the plan works it works out to be 3 years. But as you would— yes, you would get a clawback if you took the depreciation and immediately sold it. Yes, you would get that. Would it be— the clawback would be more on your, on your capital gains, right?

Yeah. But Catherine, what I was saying is that that can be set up fairly easily for that if that is an option that he or she wanted to.

Yeah. Yeah.

And another investor— another question.

Yeah, this is not legal or tax advice, so please, anybody who's listening, you need to consult with your own personal, uh, professional and accounting team.

100%.

This is entertainment purposes only. Saying that, be very, very clear because your situation is different than everybody's situation that's here. And here's what's gorgeous about the tax laws in this country is like only a fraction of it's about paying taxes. The rest of it is all about loopholes about how not to legally. So take advantage of that, but do it with your legal and accounting financial, um, advisors. We're not it.

I love it.

Yep, that's it. So I'm putting in here, um, put this together as a, a, an, uh, luxury, uh, Airbnb model, but also set it up for a, uh, let's see if we can make it into a, um, uh, an adult, uh, a residential assisted living facility. We had someone on last week talking about that. And so we'd like to see if we can make this an, a residential assisted living facility, look in the area and see if there's any available and if any exist and give us a model of what that looks like as well for this property. Because again, we can look at this property as an opportunity to just pick up a, an Airbnb that was working, uh, for somebody, but maybe not managed properly. So, um, because again, if the guy was doing it himself, that's what, you know, that's, that's, that explains that. So my GPT is sucking bad today. Um, the— so as an Airbnb, did it, did it work well enough to make money? Maybe not. We can run it that way for a little bit, but I would figure in the next 2 to 3 years Maybe looking at it as an ALS, you know, if we can put it into a situation where it becomes a residential assisted living facility, and that would be a tremendous value add to this property as well, don't you say, Catherine?

Yes. Well, and I'm thinking about, you know, the gentleman that, what is he, one of the top percent rated Airbnb hosts or whatever. And he's a who that knows how to be able to run these properties. So I'd be curious to run it by him and what his analytics say about what he could actually generate. Because I'm not honestly, I like, I love the cash flow of the model. I don't personally want to run it myself. So again, having him run it. Yeah, very intriguing.

And that's the point of working with people and joint venturing with people is when you don't like an asset class, don't beat up on it, don't trash it, right? Just don't do it. Don't do it. Let somebody else do it and pass it to somebody else, um, because somebody else might appreciate being able to handle it and do— you know, some people are natural-born hosts. They like to, to go in and, and, and, and have that experience with people themselves.

Yep.

So, um, the idea is to, uh, to put yourself in a situation where, um, you, you know all the asset classes, you just know which ones you like to do better. So in this situation, um, having a, uh, discussion with, with GPT about what to do on this property, it gives you rapid response on like, um, this is what it looks like to do this, this is what it looks like to do this, this is what it looks like to do this. And having that rapid, um, uh, explanation available, uh, is, is a confidence booster. It's a confidence builder when you're going to talk to the owner of the property. You're like, hey, this is what I found. This is what I'm concerned with. And then if you can't, if we can't come to terms over that, then we got to come to terms on something else. So I went last week and we looked at that 5-acre property. I learned this morning they can't split it into 5 lots, 5 1-acre lots. It's actually zoned 1 unit per 5 acres. So with that being said, Um, the value of it being a 5-acre lot's not there. So, um, so it says here marginal as a luxury Airbnb because the revenue reaches roughly $200,000 to $250,000 annually. Potentially strong as a 7 to 10 resident luxury assisted living home, but only after confirming Scottsdale space rule zoning approval, fire building requirements, because we would have to increase it to have, you know, uh, sprinkler system installed and stuff like that. It is a single-story, 5-bedroom, 3-bath, 4,100-square-foot home. So, um, it— that is, you know, that is promising. It does say that it has a 2025 roof on it as well, so those are good things. Um, AirDNA says that average occupancy is about 60%. The, uh, ADR in the area is $389, so the approximate yearly average is going to be between $200 and $250. So if we were to do some things at this property to increase the average nightly pricing, we could probably make more money with it. So it shows here if we went up to like $1,000 a night, it would make the $240 closer to the $240. But at $750 a night, it's only going to be about $130. So Catherine and I were at, at the home show. We seen that they had these infrared beds at the home show for $60,000, $70,000. We could buy them and put them in there and probably add value to that, right? Yeah. So that's what that case study would look like. As far as that luxury Airbnb goes, our estimated NOI is about $73,000. And so that would make this property based on that price price, only about a 4 cap, and that's really low. That's really low. So, um, we need that cap rate to go up, and the only way to do that is to increase that NOI. So, um, it shows right here that based on that base run, $37,700 negative before income taxes. So bad, bad, bad move there. High performing that's a different, you know, that's a different setup. We'll be able to at least cash flow and get pretty good numbers. So on the Airbnb verdict, it's only if we're able to achieve that $240,000. You know, anything under $240,000, just not worth it. Now, the residential assisted living model, it shows that there's 2 of them licensed in that zip code right around that area. So there's already 2 over there. Well, so Scottsdale says that, uh, up to 5 residents needs an R-3 occupancy, and, uh, between 6 and 10 is an R-4 occupancy. So, um, to get to the 10 residents, it explains what to do to get there. So there needs to be 1,200-foot lot line to lot line separation from another care home, which we're not neighbors to them, so they don't want you stacking them next to each other. Right. And so these are the things that they say are positive. These are the conversion challenges. And then Best Initial Concept, 8 residents and what it might come out to. This is what we're looking at gross revenue-wise, anywhere between $570,000 and $846,000. Now you're probably sitting there going, whoa, those are bigger numbers than the Airbnb. Yeah, but your expense ratio is still the same and it's probably higher. It's probably closer to 60%. Okay, so your estimated NOI, uh, total expenses over almost $600,000, your estimated NOI is only $126,000. So based on the $126,000, um, cash flow before taxes, when you take care of your debt service and everything else, only about $15,000 a year, right? So that's, that's barely $1,000 a month. That's perfect for a guy who has a a, a income problem, right? This is perfect property for a guy with an income problem because it doesn't have a lot of income, but it's got a lot of write-off, right? So that's who this perfect buyer is, right? So because you still got to do all this stuff to it to get it fixed up to be that Airbnb, uh, to be that, uh, assisted living The assisted living situation, you could sell that property after the fact, but you're going to be selling it based on cash flow, not on property value.

Right.

So some of the ways that you can get into this deal are listed here. So and how to get it to go, no go. So again, keeping an eyeball on it. So actually, do you have a property? Catherine said you had a property you want to run.

Did you put that in the Zoom chat? You should see it right there. Do you see it in the Zoom chat?

Yeah, I'm trying to copy it real quick.

So it's two parcels of land that are near, like right across from each other. And I have all the blueprints and everything for the build.

Oh, there— it's a build project too, huh? Yeah, very cool. Um, are those, um, are they in the Dropbox here? Yeah, yeah. Okay, so let's take a look real quick. Um, new chat, Deal Hunter, new chat. And did it catch the other one? I don't think it caught the other one. Maybe it did, maybe it didn't, maybe it did.

Yeah, it has— wait, yeah, it has both there. It says—

hey, yeah, okay. So let it— I didn't, I didn't do anything but post paste those in there. So let's, let's let it think for a minute real quick. And so the price is the $3.8 million and it's 138 units built.

Like with, with plans, it will be 138 units.

Right, right, right. And on both properties.

Yeah, that's using both parcels.

Got it. They're across the street from each other though.

Yeah.

Got it. Okay. Let's see. Let's tell it what we want to do here. This is a, this is a shovel-ready project that has blueprints and permits already. Um, and what we'd like to do is go ahead and do a scrape on the permits and see if they're available. It looks like it's going to be a large development. See what you can find for us. And I'm only doing this so that I can show the power of what this thing can do with minimal information. Like, we already know the information, so let's see what this thing can do. Let's see if we can break it and let it come back with what it might do. But in the meantime, I'm going to go pop open the Dropbox. And let everybody take a look inside the Dropbox here. And that you have a good mix of, of, of, uh, details. Uh, we've got the civil plans, contractor's bid, elevations. Do you already have contractors on it or no?

This was a project they were going to do a few years ago, so it's just a bid.

Got it. They called it the Wilshire. This was from Tofu Dent. So they're looking at about a $33 million build. Okay, we can kind of— we can dissect that a little bit more inside of free estimates, um, but How long is this— how long has this been sitting, uh, that you're aware of?

Um, those plans were from, I think, 3 years ago.

Got it. Let's see. Looks like the sites are adjacent to each other. There's 3 buildings, possibly.

The, um, there's a Dropbox link and then a Google Drive.

Yeah.

Underneath it, and that one has more pictures of what it's planned to look like.

And right, right. Well, as a, uh, as a, a developer—

there you go.

Yeah, a develop— as a developer, I— pictures don't do anything for me. I need to see blueprints in order to understand what I'm looking at, right? Um, because I can look at this and go, yeah, that's a pretty picture, what's the dirt look like? Um, without knowing what the dirt looked like, then I get I get concerned because it's like, oh, what am I, you know, what am I really looking at here? So it looks like these are garages, bays of some sort. They got the 3-story units here. Yeah, so 3-story walkouts. Okay, um, and then they're selling the project though at at 38. Do they have any of the financing in place yet, uh, if you're aware of that?

No, they don't.

No. Okay.

They, um, I know the seller directly. Yeah, he has one partner. The seller that I know is going through some health issues and the other partner wants out because the— it's uncertain when they'd be able to do it. So they're right.

I mean, they've been on this for a while. It's been sitting there since 2020, um, and they've got, they've got some work into it. So 4 or 5 years of work into it, you know, they haven't made it this far. That's, um, that's the only concern that I have is like what what has been the holdup, um, and get it— like, if they have all this done, what is— what has been the holdup in getting it done?

So what they— what I was told was they were going to build like 2 or 3 years ago, and then someone right across the street started building like right before them. So it was like they were worried about getting, um, it rented right away, or like there was too much competition. This one right here in the bottom right, that went up like a couple years ago.

Yeah. And so that's right about 83rd and Palm. I know where that's at. Um, yeah, the, the term that we use is called absorption. The absorption rate in the area is pretty extensive. There's already quite a bit going on there. So that place in the right-hand corner was there long— it's been there for a while. Okay, it's been there since 1986. That was one of the first developments there.

Okay, well, that's what I was told. Something else went up, correct, nearby there.

Yeah, you can see, you can see, like, that's what the point of these are. So, vacant, vacant, vacant all the way around. This is all new development behind it, but when it became new development is back in 1996 when the— So, and then this is the condition of the site currently. It's flat. As a matter of fact, I think I actually— Now that I'm looking at the dirt, see, I told you it's always the dirt. Now that I'm looking at the dirt, I know I went out there and gave somebody an estimate on doing all the dirt work on this. I bet I've got record of it. So, because I'm looking at the pictures, I never seen the soil test because I never made it that far. I just gave them a price, told them I wanted my own soil test. But this could be one of them I looked at. So anyway, um, and to me, I would have spent days sitting here reading this stuff, and, and I'd have had to— I would have went and brewed some coffee by now, and I'd be on my third cup by now going through this. Like, I'd have had to have 16 cigarettes before I was done with it. I used to smoke, now I don't. So that's one of the things that GPT helps me do is not crave cigarettes, because this would have, this would have, this would have been a two-packer right here. This thing would have been a two-packer and two, two pots and two packs easily. So, but it's a, it's a really good project. It looks, it, it looks like it's got enough room on it to, to do something. So, um, what is your, your condition in this is that, you know, one of the principals, you're, you're directed to seller on that. And so what you're looking to do is help, uh, uh, help dispo this for them. How, um, how can we help you either get it dispoed or or find a way to, uh, to move it up the, up the chain type of thing. What can we do to, to help you with it?

I'm just looking for the right buyer. I had it, um, I had a developing— someone, a developer that was looking into it, and they were— seemed really promising. I feel like they strung me along a little bit. They were like, yeah, yeah, yeah, and then at the last second they were supposed to— well, they were supposed to get back to me. They like a week delayed of when they were supposed to get back to me, and he just backed out. So when that happened, uh, he— the seller did go to a brokerage to list it. It's with Newmark, um, and they're still writing it up. It is on the website, but they said they're gonna do a call for offers in about 2 weeks. But he said if I find a buyer, he's willing to look at— like, he's still willing to do the deal with me and that he'll compensate his broker on the back end. They know that I've been looking for a buyer before they ever listed it with the other guy.

Yeah, right. Understandable. Well, it's showing that it's been listed.

Yeah. With Newmark.

Yeah. And then, um, they're listing it for 5.5.

I saw it, I was looking at it today and it was saying 3.8. This one, this is an old listing, uh, from a few years ago. This, this ad I sent you was from there. It just has a lot of information in it, but this is an old listing.

Yeah, I got it, understood. Um, but as far as like having the approved plans, they don't have any permits based on what, what I was able to discover. So, um, it doesn't have— unfortunately, it doesn't have the, um— for, for what we do is we, when we borrow money or we buy a property, um, it's based on what the condition of the property is in at that current time. This just has, you know, some preliminary plans to it, and, and there it does, it does appear like there could be some, uh, potential for, for— I know the area, you know, I mean, it's just down the road from, from, uh, Bannerstraat. I used to work at that hospital, so, um, the, the ability to put some multifamily there would be— is It is, it is a viability. I don't know to what level the value of the property is though, unless it has those permits and blueprints. And if these guys would be willing— this is why asking you how your relationship is there— if these guys be willing to let us take over the property, do an owner financing so that we can get those things done, then that's possible because I can't get, I can't get funding from anybody on, on dirt that has no, no registered blueprints and permits. Like, somebody did a lot of work, but they didn't—

I'm pretty sure there are blueprints and permits. Maybe I just don't have that information here.

Well, there's no permits on record, and this search is the immediate right now. So, and, and if they did have permits on it, if they did go get permits on it, Um, it says right here that the, the record located on 2023— permits are only good for 2 years. And it says right here that there were some requirements that needed to be done before permits could be released. And so it, it, it went to a certain extent and then stopped. That's why understanding why it stopped is important, because it does not have approved plans. It has plans that they looked at and said, yeah, this is cool. But nobody paid for those permits. Nobody paid for those to be, uh, uh, sent through the, the complete permit and get the complete permit package. So unless they can bring forward that complete permit package saying, here's the complete permit package, because to me I want that package so I can go start turning dirt tomorrow. If I buy this, I want to start building tomorrow because The holding cost on $3.8 million is a lot of money. And if it takes me, if it takes me 6 months or 9 months to get permits, that's no, I get it, that's a no-go, you know. So if they're willing to help me, I'm willing to help them. Otherwise, this, the price of this thing has to match what it is, and what it is is just raw dirt with nothing on it. Okay, right, because what if I decide, you know what, I don't like the numbers in this area, I don't, I don't like the, I don't like the, the, the amount of houses around this, I want to make this into a strip mall.

Mhm.

And a church, right?

Which it, I'm pretty sure it's zoned that it could be commercial or multifamily.

Yeah, and C2 right now, and C2 right now. So I might want to change my mind, and if I change my mind to do that, everything they've done to this point is no, of no value at all, right? Right. Throw it away. So, and I can build something here that would be, would be, um, what they call neighborhood friendly. I'll get permission for that, but it's going to take 2 to 4 years. The hold cost on $3.8 million for 2 to 4 years is a lot of money, right? So, um, And, and again, yeah, this being an old listing or whatever, very important because you can see here, this, this is the average price back then. That's why they justified it at 5, you know, 5.5. The price per square foot's about $20 a square foot, um, only if it has blueprints and permits. If it's just raw dirt, it's more like $2 to $3 a square foot. That's why it didn't sell 2, 3 years ago. So, because this dirt— I mean, the dirt right across the street from it, it's only worth— is only worth $3 a square foot.

Mhm.

So again, like, there's— it's only valuable to what is on it. If it, if it already has the documents, it's worth a lot of money. But if it's just promise documents, those promise documents take a while to get.

Okay, so, so the question really quick, it's Yeah, sorry, we—

yeah, we're 5 after.

Yeah, we're 5 after, so we need to either circle back to this tomorrow.

Yeah, um, I like the property, I like the idea, I like the project, but, uh, again, I like it on a different day with a different, a different person trying to sell it to me in the sense that they understand this is a property that's, that's not ready to do, to do dirt work on. It's, it's just ready to start working on getting stuff done. So it's— but the approved plans is very much not the truth.

Okay, so what questions do you want me to ask them?

So if they're interested in doing something like this, we'd want to just jump on a call, but we would want to see if they'd be willing to, uh, willing to allow us, um, to, to, um, get all of the documents necessary, um, in order for us to properly get it funded. Because right now we can only fund it as a dirt project. It's not a— it's not an approved plans project. Okay, so they'd be willing to work with us getting that, because that's what we do. We got to get the entitlements and we got to get the permits. So if they have blueprints, like, I, I reviewed everything that you got there, um, but we need the we need the city to actually stamp approved on it before we can fund it.

Okay, okay. And then I can talk to them about that. If— would you like me to set up a call so you— if there's any questions you want to ask?

Absolutely. If you want to broker that call, that by all means, that, you know, go ahead and set that up. And then if you've already got an agreement with them that they'll take care of you, that's great. Otherwise, we do a joint venture agreement with anybody that brings stuff in and into the Land Shark, we do 50/50 with them on it.

Okay. And then should I have you, Catherine, and Tommy on that call?

Mm-hmm.

Perfect. I have Catherine's phone number already, so I can set that up. I'll text you when I can get a time available and I'll start working on this.

That'll work perfect.

Okay, awesome.

Well, thank you so much.

Thank you guys. I'm still learning. This is my first land deal, so—

okay, don't worry.

Thank you so much.

It's a, it's a cool deal for sure. It's a cool deal for sure. And if it, you know, if this one doesn't work out, you'll learn some things to do on the next one.

Absolutely.

But all right, wonderful. Well, I'm going to wrap it up with a prayer. Heavenly Father, thank everyone for being in this, uh, wonderful space today, and we ask that you continue to bless and guide them, take them out into the world, do your will. Through your son's name we pray. Amen.

Amen.

Everyone have a great day. We'll see you