AI Live - Land Shark Mastermind

create thumbnails for, um, the YouTube so that we can put them on there. I think that would be awesome. Okay, so I want to do that with you. We are live streaming on all the things, so if you want to do your thing in LinkedIn like we talked about yesterday, that would be awesome. Um, and in the meantime— okay, it says— yep, it went— just went live. Um, Okay, so deals to run today, um, super, super important. Um, I, I so desperately want to tell you all what's going on behind the scenes, but I can't. There's some legal things going on. Anyway, when we get past through the whole thing, I'll disclose all the things that are happening. But long story short, it's really, really, really, really, really important that people do background checks on in on operators and, the team and everything because the team can, it can be a brilliant business, but a really crappy team will take them down. And based on all our discovery of some stuff that's happened with something, anyway, long story short, it turns out it's a, it's a Ponzi scheme and there's been some, criminal activity in the sense of piercing the corporate veil. So I want everybody to understand piercing the corporate veil. So when you have an LLC, like every, uh, deal that you do needs to be in its own LLC, right? And the importance of having your own LLC for it is that it protects the asset, but it protects the people and everything around it, right? But there's rules around having an LLC. Your LLC isn't your personal bank account. It is a business bank account. All money coming in and out must, must, must only be associated with that particular property or project or LLC. You can't be like taking vacations with it, or, you know, hey, I'm gonna go buy some shoes, and there's like money in that, um, um, account, so, you know, I'm just gonna spend it on whatever. You do that, it's called piercing the corporate veil. When you pierce the corporate veil, all the rules and protections around having that LLC now disappear.

You're gone.

All the protection is gone. So making sure again, and I talk about this, like, you're, um, when you play a game, you don't get to vote on the rules. You don't get to like them. Hate them, whatever. Just know what the rules are and play and win, right? Well, again, having an LLC is a legal structure and there's just rules to it and you play and win. But when you feel like you're, you know, these rules don't apply to you and you pierce the corporate veil, now that's where, um, when you've pierced the corporate veil, all those protections are gone. Now you're, uh, vulnerable to, um, yeah, there's just a whole world of laws that when they get broken, you're screwed. You screwed yourself. So again, no taking shortcuts, uh, follow the rules. Um, and so Trevor, we're talking about the importance of LLCs and when you have an LLC to never ever pierce that corporate veil. Uh, and we're talking about a whole other something I discovered in a whole Ponzi scheme that's happening and some illegal activity. And anyway, through the whole thing, who knows what direction we're going to go, whether it's pressing criminal charges, whatever. But the point is, is that they, they pierced the corporate veil by, um, doing some really stupid stuff. And because of that, they now have exposed themselves, which now gives us the ability to literally press criminal charges and, you know, go after them and the assets and all the things. So here's the other thing you want to understand. It's that each individual property that you have needs to have its own LLC. You never want to put two properties into an LLC because if something happens to one property, then you could literally lose both. So some people think that it's a giant pain in the butt, like, ah, you know, what does it matter? No, it actually really matters. I literally have like an entire closet of all the binders of all the LLCs because each asset needs to be protected in each one. You never know what's going to happen, right? Unless you have a crystal ball. And if you have a crystal ball, that's a whole other conversation I want to have with you. So the protecting the asset and the investors and protecting the money literally is at the top, which is why, again, so I, why I love this country so much, it's that the laws are there to build an incredible empire, to go make difference, and which we're all here to do, but you need to play by the rules and protect it all as well. So, um, I know of, and I can tell another story. So years ago there was, uh, um, somebody that I was working with, he was like a centimillionaire on the verge of being a billionaire. Long story short, he ended up pretty much losing everything because he did not take the time to actually put everything into the individual LLCs and then into the family trust and make sure the whole thing was protected. And because he didn't take the time to do that, because it was too much of a pain in the ass is what he thought, he literally lost it all. So you can either, you know, take the pain up front of, yes, it is some, you know, some paperwork and you got to go through the process, but at least it's protected. Kind of like locking your doors in your house. Is it a pain to do? You know, yeah, it takes a few minutes to go around and lock all the doors. But at the end of the day, you're protecting it. But if you leave all the doors unlocked and some of the doors open and somebody comes in, well, you're the dumbass. It's your fault, right? So that's the importance of having these LLCs and making sure you play by the rules so that you don't pierce the corporate veil and lose it all. So anyways, Tina, you're coming in on a conversation about the importance of having all your assets in individual LLCs and never, ever, ever, ever, ever under any circumstance pierce the corporate veil or commingle funds. So let's talk about that for a second. So this is a lesson, Katya, Blake, for all of you who already know, you know, forgive me, um, but I think this is an important lesson to understand. It's that the, uh, the— you want to talk about that for a sec? By the way, it's Laura's birthday. Can we all say happy birthday? Happy birthday. Yeah.

All right.

Hi, everyone. Thanks for that. So, yeah, so co-mingling of funds. So, like, I have several rental properties, single-family homes. I have what's known as a Delaware Series LLC. So to what Catherine spoke about, I have an overall LLC, and then each of my properties is in its own series, but that acts like individual LLCs. So, you know, if something happens at my property in Series A, they can't touch anything in all the rest of the series, right? They can only go after the assets in Series A, provided I don't commingle funds. So each of the series has its own bank account, I cannot, which I learned the hard way, I cannot transfer money from— so if I need money, if I have money in Series A and I need money in Series G, that property in Series G, I can't— if I transfer money directly from Series A to Series G, that is commingling of funds and that has now pierced that corporate veil. So I can take money from Series A out into a personal account, turn around and take it from that personal account into Series G, which occurs as a pain in the ass some days, but they can't touch that. That is, it's been a distribution to a personal account and now a contribution from a personal account. Those are individual, not separate. But if I went straight from A to G, which would be a hell of a lot, you know, 4 transactions versus you know, one transaction versus four. Now if something happened in either A or G, they could go after both and quite possibly all of them. So that's that, you know. And then commingling of funds also involves— I only use money in those series accounts to spend for business things. I don't go use the Series A debit card to go get my nails done. I take a distribution into my personal account and then I use that to go get my nails done or whatever else, right? So you've got to be able to tie all of the expenses from each of those bank accounts. So 7 properties, 7 bank accounts. That's how I, you know, that's what I've got to do to protect myself from the overall asset.

Yeah, it's just—

and you go back, and if you have a system in place, um, it's because right now that seems very challenging, like keeping track of all the LLCs and all the bank accounts. So is it as scary as it sounds.

Okay, when you have the system in place, and again, you just play by the rules, right? Like Katya, when we were playing Cash Flow, right, and your, your balance sheet starts to fill up and you start to have all these mortgages and all the things, there's like literally each one is its own, essentially its own business, right? And it, it does become more cumbersome, but at the end of the day, it's like That's the reality of growing your wealth is being responsible about it, and there's just more to manage. But again, just know what the rules are, play and win. So was this— I know Katya and Blake, this is new probably to hear. Yeah. So, and, um, oh yeah, Cicely.

I don't think we even— I don't even think we know the process of developing an LLC. So this is all super new. So thank you so much.

Yeah, absolutely. Yeah, go ahead, Cecily, and I'll add to that. I created an LLC last night for my friend who's a developer. He called me.

He's working on a development in Indiana and he's like, I don't know how to—

he's a lawyer, but he's like, I need help. Like, we got to do LLC right now because we're going to— they're working on development. So this is all like coming full circle. And he was telling me, he's like, we need an LLC for every project.

And I was like, this isn't making any sense.

So now you're talking about this.

But we got the LLC done.

And so I'm really happy that I'm hearing about like not commingling the funds and piercing, because I'm on the back end supporting. And, um, I, I feel like he's pretty savvy, but, but I want to make sure that I'm not tied into any of that stuff too. Um, yep. So yeah, this— I literally like midnight last night we created the LLC for this new project that he's doing. So yeah, and then there's further rules around your LLC. So for instance, so we use a company and I'll be introducing you guys to them. I've been using them for decades. And because you have to be doing your, your annual minutes, your monthly minutes, like you need to be documenting all of this because again, if you don't document all of this and have all of this in the binder ready to go and you ever get audited, Once again, it's piercing the corporate veil. You need to have all of this completely documented of anything that's happening inside of that LLC. Um, again, you just said minutes.

Did you say minutes? Like, what do you mean by minutes?

Even if the, even if the, the, the, um, ownership meeting happens with, I don't know, you in the shower, like it, it still needs to be documented of everything that happened legally for that LLC during that month. So we have— I, I pay this company, it's a service. They literally send me an email, they ask me all these questions, whatever gets answered in the questions, they turn around, they generate the minutes, I get them back, I print them, I sign them, I put them in the binder, we're good. And just so you know, like, again, there's all the rules around this. I— when we had our company in California, like, we got audited all the freaking time. And it was kind of a joke. First of all, whenever I'd get audited, I'd always get more money back. That was like delight number one, which, you know, they were like, how is this possible? Two, they'd always offer me a job because I— my— everything was so clear. And so like, here's the rules. And I just followed the rules, right? Again, didn't have opinions about it, feelings about it. Just follow the rules, play the game, and I won. And so again, it's about following the rules. There's actually a conference that happens twice a year called Magnify Your Wealth, which is where, uh, Laura and I learned about all of this, uh, to help protect. And more importantly, like, again, with the Rockefellers, it's all about, um, own nothing, control everything. So again, these properties going into these LLCs, you have control of the LLC and the property, but you don't actually own it yourself. The LLC owns it. So again, it's more protection. So when I see— I saw Katya, like, all of a sudden there was like a light bulb moment. I saw the light bulb moment go off of like, did that make sense? Like, own nothing, control everything, right? So anyway, um, yeah, super, super important. Never, ever, ever, ever, ever put anything, including your own vehicle or your own house, in your personal name. Have it in a trust, in an LLC, have it wherever, but literally have nothing in your name. So that's a whole other thing. It looks like Tommy just popped on, uh, and so did Roman. Are y'all gonna join us?

We, uh, do some construction labor work. That's what we're doing. Yeah, we're doing some labor construction stuff. We're, we're construction stuffing right now.

Your construction stuffing. Nice. That's awesome. Yeah, it'd be cool to have you guys share. I know, Tommy, you had some cool videos. Um, it'd be fun to share those videos and be sharing with people all the fun things that you're doing.

We do. We do. If those— if the people just go to our social media accounts, they'll find all these videos. So sending them out to go look at your TikTok, my TikTok, Instagram is another great place to look and see all the stuff we're doing. So your YouTube channel, which is youtube.com/tig20b, is where like every, every one of our regular podcasts like today end up getting clipped up into small segments and sent over there. And then we're about 3 weeks behind on video. So if you wanted to know what we were doing 3 weeks ago, you can go watch it today.

That's the whole other thing. That's why we need Blake. Blake, we need to have a meeting with you to, like, turn that over to you. Anyway, so, okay, so now that you all got this fun legal lesson, I hope it was helpful. Actually, I know it was helpful. Katia and Cecily had shared. And we have a new guest here. Is it Michael? Michael, welcome. Super happy to have you here.

Hello. Thank you, guys.

Yeah, absolutely. Where are you coming in from?

I'm coming from Czech Republic, Central Europe.

Oh my goodness. Yay, more international people. Woo-hoo! I love it. We get Canada, Mexico, Czech Republic. Like, this is awesome. This is becoming the full international call. I love it. Um, so welcome. This is exciting. We are, uh, helping everybody here use AI to find deals, um, structure the deals, acquire the deals, circle, uh, get all the way through the deals, all the way in and out, adding commas to bank accounts and collapsing timelines. So, um, I know that several of you are working on deals. Katya, you have your Palisades deal. Blake, you've got your deals. Does anybody have any other deals that they want to talk about or bring up?

The boss has a deal. The boss has a deal.

Okay, so the boss.

So do we have, do we have, do we have the head Land Shark account up on the computer you're operating?

Yes.

If you go on there, it's, I believe it says it's the rental. If you go to, if we go to Deal Hunter by Land Shark, And I always assume everybody already knows we're going to ChatGPT, we're going to go open Deal Hunter by Land Shark, and we're going to start working. Um, for people that have never been on here before, like, I think we're going to need to have like a need to watch this video first over there so that people understand, you know, like, we, we do real estate investing at light speed comparatively. Like, I just got off the phone with the broker I actually hung my license with you know, 30 years ago. He's going to be on the podcast next week, by the way. Um, Bill Nye is going to be on the podcast.

Like, Bill Nye the Science Guy?

Bill Nye the Real Estate Guy. Way more famous and richer. Um, but Bill Nye, Bill Nye the Real Estate Guy.

So what, which chat did you— were everybody seeing your ChatGPT? Which chat do you want me to go to?

I think, I think we're open to, going to open to— I'm trying to zoom in so I can see all the little words, but I can't see all the words.

Yeah, you're driving too, which isn't smart.

It's the— it has the word rental in it somewhere.

Luxury Rental Deal Analysis.

Let's do that one.

Okay.

I believe that's the one. Okay, so if we pop that open, we scroll to the top, you can see the, you can see the, um, the conversation a little bit. But basically, this is a rental. They sent me documents, they sent me pro formas, we ran the numbers, and so what it's coming up with is a fair market offer, or FMO, fair market offer.

Um, Don't sit back. I'm like—

and are you able to— I'm not able to see like all the details, but, um, this particular property is located in what's known as like North Scottsdale. It's got a, uh, significant location, um, situs. Uh, if you don't know what the word situs is, I'm giving everybody some extra credit today if they go find out what the word situs means. SITUS, but the situs of this property is really amazing. So, and that's kind of where the bigger selling point is. So I'm willing to pay a little bit more for the property above appraised value because in this you can see I put the appraisal in here. I believe that the appraisal, it should be in a group of attached documents. Uh, probably the last, the last entry that I made. Okay, let me— if you go all the way down to the bottom, yeah, all the way down to the bottom would be the last entry that I made. I don't know if you guys want to run through the whole thing, but right there is the last entry I made, I believe.

Yep, that's the last one.

So, and has it got the pro forma and the— there should be like 4 docs there.

Okay. I'm looking. Hang on. There's a lot of stuff in this.

And that's the beautiful part. Like it, like literally all collectively gave me all that information over 10-minute conversation.

Yeah. There's the pro forma. Do you want to look through that? Or you want to look?

Yeah.

The attachments. I'm not seeing the attachments.

You know what, I might— you know what I might have done? I might not have hit the damn button on the, on the computer where it says the last attachment I see says Desert Oasis Revenue Updated PDF. Okay. Yep. So that— yeah, I didn't, I didn't actually load up the rest of them. So they're, they're still sitting in my inbox.

Okay.

We can grab those and use as a demonstration. And grab the— go back to the email and grab the documents and drop them in there. Or I think I did it from here. Here's the—

do you want me to read through the 3-year pro forma?

Well, that was based on the pro forma they gave us, but it didn't have any— it didn't have the pro forma they gave us. Have any expenses, uh, out of it. Oh, got it. Right, so the, um, let me see here. Yeah, so what I did was I, um, in the, the very last section of it where the other consideration was that there wasn't a 30 to 40%, if you go underneath that, you'll see that it recalculated everything based on taking out like 30 to 40% of the expenses.

Yeah, right here after applying.

Yeah. And then the—

Charles with expense haircut.

Right. And so basically even going that route kind of left it to where we need to be creative with the guy. But they did send over a pro forma that showed $75,000. So we'll We'll start running it from here. I'm outside. I'm going to come in real quick and we'll— I'll give it the new information I've got. Okay. What the NOI is. Does anybody else have a property keyed up?

I have two, but if they don't fit today, then we can always do them tomorrow or Friday.

You already have it pulled up. Have you already done a deal run on it?

Yes, I have on both.

Okay, which one do you want to do? Pick one.

Um, there's a series of cabins in California near Big Bear, or there is a piece of land for a boat and luxury toy storage.

I like those way better. And if you're making me pick, you know I'm gonna pick the dirt.

Okay, then give me one moment.

All right. One moment, sir. Okay.

Here you go.

Oh, let me do a, uh, let me do a quick prompt on that one. Okay, ready? Yeah. The value, um, came out, um, a little bit more, um, adjusted after we got a pro forma. The estimated potential for that property is about a $75,000 yearly NOI. Give me the cash-on-cash return. If we paid full asking price for it and gave them 20% down, what would the NOI be on the full asking price of this property? If we did 20% down, $75,000 is the NOI. I need to know the cash-on-cash return. I need to know the ROI after a potential 4-year hold and increases of only 3% annually. Give me those numbers in a table so I can send them to the realtor. Which got cut. Yeah, she's sharing that.

No, you are.

Sorry, nothing is loading. My computer is like too many things, so let me just delete some stuff.

Kathy is way too busy for us today.

Blake, you're in good company.

What's Blake doing? What have you got, Blake?

I have a couple different properties. I was looking at some fun ones, but I just found an outdoor pickleball/badminton court that I'm cooking right now.

Can you be a bigger suck-up, bro?

What was that?

Can you be a bigger suck-up?

That's not true.

Well, would you rather look at that or a vacant zipline park?

Bacon Lip, buying part of me.

No, no, pickleball. Pickleball me. Zip line.

Raise your hand for zip line. There we go. 2, 3, 4.

Raise your hand for pickleball.

5, 6. Put your hands down. Put your hands down. Put your hands down. Amor, you don't get to vote. You just showed up.

Don't do me like that.

Don't do me like that. So, um, well, I've got actually almost the entire Florida team in here. I had a great call with the, uh, my birth broker, the guy that brought me into the, into the, uh, real estate world, uh, Bill Nye and his son Brent. And, uh, they're down there in, in Wesley Chapel. So I got off the phone with them. That's why I was kind of late, was I was tied up on them. But they are coming to the podcast next week, and I told them that I want to get my Florida team plugged into them because they— I'm ready for this. I want to see Amor's face when I say this. We've got the event center for the Florida— for, uh, for the Florida Summit.

What?

I've got the event center already booked for the Florida Summit.

What? Okay, I need to hear more.

So it's called Covington Farms. It's a, uh, gigantic beautiful house, holds over 1,000 people comfortably, 300 easy. Uh, but Brent and I and his family, his wife and his family, own property. And when I told them what we were doing, they said they want us to come down and host a, uh, host a giant investor networking session at their— what if Catherine wants to be fancy dancy? And so— or somebody wants to be fancy.

Hey, we are fancy dancy, baby! That is what we are.

Covington Farms, Florida.

I, I know, I know where this is in Dade City, Tommy.

Tell them when they're ready to sell it, I'll buy it as a wedding venue. It's already a wedding venue. They got— I, I trust me, I know, I, I know exactly where it is.

Covington Farms, Dade City.

Yep, there you go. Polk County. Go to images.

Okay, let me share images.

Oh wow. To see what it's like.

Oh, that's beautiful.

That's beautiful. Oh wow, the split rail.

We've shot a wedding here before. That's why I say I know where this is, and I've got my eyes.

That is so beautiful.

Yeah, it's a, it's a giant wedding venue, but they can host, they can host a, a variety of events, um, and it's got like It's got an amazing amount of square footage inside of it. Um, that one looks like the one over there by— in Buckeye, right? Remember that, that one that was kind of a little hidden? Yeah, yeah, the— uh, it's called the, uh, uh, what was it called? Nart— uh, Nardi Manor or something like that.

Best part.

Oh, oh, so yeah, this will be a nice venue for sometime in the spring. you know, winter, winter-spring season. Um, so that way we, you know, we're able to, uh, right there, look at that one. Wow. I think that's— is that St. Pete? That's St. Pete. That ain't— is that the barn?

Yeah, that's the barn.

That's the barn. That's the place I wanted to take you over there. Yeah. By the way, they used seashells to make that paint color. Crazy, right?

So yeah, this is— I mean, that could definitely seat everybody.

Yeah, love it.

That's fun and a whole different experience. Yep, not the typical conference.

And then we're right, and then where it's located in Dade City, it's easy to get on and off the highway. We can go look at properties, we can go look at businesses and do the same thing we're doing here at Club Scottsdale.

That's awesome.

Yeah, it's a huge property too. Huge property. All right, very cool. So, and then right there.

Oh, do they have the babies? We need the babies.

Uh-huh. So the barn, the barn at Covington Farm. Love this. Yeah, it's pretty awesome. Pretty amazing.

Yeah, this is so beautiful. Maybe we could have a wedding there too or something, you know.

Are you planning on getting married again?

Oh, not me, I'm married. I was talking about, you know, just some other people that I know.

This is the third time in two days some people be trying to push that thing on us. Just saying.

I think it's a great idea.

Don't do it, don't do it.

It didn't turn out so well for my last husband, so I'm not really sure.

I was just being funny, guys.

All right, I'm just saying.

Roman's just saying that because he's secretly in love with me, and that's okay.

So Roman and Tommy are gonna get married? No, not that.

No. But anyway, so Katya, did you fix your, your internet problem yet?

Yes, I did. It finally put together—

I'll just sell your spot to Blake.

I'm sorry, I'm ready.

All right, go.

Okay, do you guys see my screen? Yes. Is it wonky?

No, no, it says Katya is trying to share screen.

Oh, okay.

There it is.

So do you see, um, right? Hold on, this is crazy.

Run it to the top. Let's start at the top. Tell it to me like I've never seen it before because I have.

You see here how I like asked it and then it said stopped thinking, and I said no problem, let's look into this. Stopped thinking. I'm like, why are we not thinking? So this is the property, it's in Corona. And this is a perfect location for a toy storage, luxury toy storage, because it's in the center of a lot of wealthy areas. And Corona has a lot of, um, repair shops and stores, I guess, like quad, um, side-by-side shops.

Got it.

And it's right by the freeway that goes to, um, Glamis, Joshua Tree, Big Bear, like all the places.

Got it. Okay, so we'll go back to that real quick because I wanted to take a look at that property. It's, it's a yard, uh, yard store currently. Looks like it's storage for lumber.

Is that what it looks like?

Lumber or wood or something? Yeah, but anyway, it's already set up as a laydown yard, so that would tell me they might have a lease on it. Right. So, and keep going. I'm just, again, I'm just trying to, to get my brain wrapped around it a little bit.

Yeah, go for it.

And then when I look at Deal Hunter, I can be like, aha, true story. So yeah, I see where you're located there. Good port access and stuff. And yeah, logistics hub where you're able to park trucks is good.

Is it lagging? Is it lagging on your end or just my end?

Probably on your end. I'm happy with the way the—

The speed.

Okay.

Demographics are fair. Okay. Yeah. Okay. Looks good. Selling it by King Realty. All right, cool. I think that's the end, probably, right?

Yeah, that is.

Perfect. Let's go see what the Land Shark said.

Okay.

Turn this damn screen so I'm not— my neck ain't broke. Um, so on the deal snapshot, it got all the information. You verified all this, and this is how Deal Hunter works. I want everybody to know that, you know, Katya, um, she's a, a student in college who utilizes this like it's a, um, a best friend. and, and they sit and have conversations about real estate, and she's really learned how to utilize this, this, uh, model to her benefit. So I like the— I like the results that she's able to produce. As an investor and a developer, it's important to have data. So keep, keep rolling. Let's see what else we got.

I even discussed with my best friend yesterday over some coffee about how private lending works, explained as a third grader, right here.

So, so Tommy's Correct.

That's awesome.

Yeah, that's cool.

Okay. Yay!

I'm so glad to hear that.

That's cool.

Okay.

So it was a rent jumping from $17,000 to $71,000 for the final 6 months of lease term, and that is a massive value swing. It's enforceable and collectible. So, so what does that mean? Do they currently have the lease on it? Is that what it said?

Let me check the, um, I don't think so. I didn't see anything about that, but let me write it down so that I can take a look.

Deal Hunter was coming up with something from somewhere, so that's what I'm trying to figure out, what, what Deal Hunter's brain is doing. Go back up a little bit.

So current rent, rent step up, existing tenant, yes, no renewal, right?

Huh. So yeah, this is one where you got to talk to the owners, but where did they get that information? Like, that's what I want to know. So how, how far down the— how far down in this conversation did you go so far?

Um, I— there's been several things that we discussed.

Digging in.

Yeah.

Okay.

But it's asking the right question. So let's, let's, let's verify where it got the info.

Okay. Let me see.

Because I think, I think, you know, yeah, based on what I've seen so far, it looks pretty good. And yeah, I'm sure we could run through the numbers to figure some of that stuff out too.

Oh my gosh.

But I don't want to dive too deep into the, the potentials until I know for sure what we're talking about here.

Okay, so do you want me to dictate or do you want me to keep scrolling down?

Yeah, go ahead and let's dictate it and it'll pop it up.

Okay, ready, sync.

Um, where did you, uh, where did you get the information about the current lease and the current rent and the escalation over the next 6 months? Can you verify your source on that?

Oh my gosh, it's lagging. Can you guys see how it's lagging?

You're okay, you're okay.

Yes, the last time you, uh, shut down and restarted your computer, probably last time you told her to.

No, I swear it was actually Monday because my computer has so many projects, like school work, everything. It was Monday.

Um, how often do you sleep?

What do you mean?

Your computer needs to be put to night-night every, every night. Like, don't you know?

No, I sleep a good amount of hours every day.

Yeah, and so does your computer. Needs to. That's why your computer is like acting like it's having a stroke right now. Blake Teller.

Oh my gosh. Okay, so on page 3, property summary. Um, the offering memorandum states lease, the current rent is as follows, yada yada yada. It also says additional details of the lease and tenancy can be provided pursuant to signed NDA.

Yeah, so if you look at the dates on it, um, they already got paid all that and their lease is up as of the end of this month per that, per what it says right there, right? So Um, to understand what that, what that looks like is, um, we would have to talk to the, to the current owners. So now let's go back and take a look at what you said as far as like what, what, what was your return? Was it 40%?

I think so, yes. Let's go back. I don't remember the exact.

All right, ready? Watch this. Hit your dictate.

Oh, okay.

The information you provided throughout this conversation has been phenomenal. You should give yourself an award for the amount of research that you've done. Now what I'd like you to do is verify whether or not this is going to produce a potential ROI of 40% or more, and if not, explain why, and if so, explain how. And that, that should give it a lot of fodder. I did get your email about the Palisades, and we've got a meeting, uh, for that at 1:30. What day?

I, I have it scheduled for 11 on Wednesday.

That's the time, right? Yeah. So next Wednesday, right?

Next Wednesday.

Okay, because I'm going—

is it in our calendar?

No, I need to put it in, um, the calendar. I finalized everything yesterday while I was—

before I was gonna take our final exam, so I have to still put it in. Okay, and if you want, just add it to my calendar and then, um, I'll go in and add my Zoom link so that, um, we have as much time as needed.

They're gonna I, I think they're going to have you sign because it's a government entity.

And just so you know, that's literally right in the middle of our summit.

Oh yeah.

That's not going to—

Well, that's the Worldwide Women one, right?

The 20th?

Let me check.

The Seven Streams. Okay. It's Seven Streams on the 20th.

Yeah, it's on the 20th, um, but I can always ask for another, another time.

I mean, Kathy and I can do it.

They also have 3— they also have 3 PM on the 21st.

3 PM would be the best on the 21st. That would be the best.

Do that one.

Okay, I'll do that one. So look, I wrote— we wrote it and then it said stopped thinking, so then I copied and pasted again and now it's thinking, but the streaming's interrupted, so I might have to do this solo after.

Yep, you're gonna have to break it off and go, go, uh, like shut down all 9,000 windows that you got, give it a little nap, come back later to play.

Okay, okay.

Blake, did you— you got that Zipline Park pulled up yet? We're gonna zipline while we play pickleball.

You want me to pull them up?

Yeah, let's take a look at them. Sure, the darn pickleball person. If it ain't got— I want to, I want to dictate, make sure it's 40% or we're not doing it.

No, it's not gonna, it's not gonna go through. It's way— it's priced way too high. Um, I just found it and then I let it cook and then just blew up the deal. Let me go pull it up though.

I can— yeah, so Oh, super overpriced, right?

Oh, it is. They are asking $2.4 million.

$2.4 million for what, like 3 courts? Oh, half a bag of balls.

Let me show it real quick.

I also have that other property. So when he's done, where I ran the financials through for the storage in the RV park, the RV park over in Quartzsite, right?

Correct.

Pizza, pizza.

So yeah, they're trying to make it more upscale and growing it. It has a warehouse that's going to have 4 indoor badminton courts that can be changed, but essentially it's just an outdoor and then this warehouse. But they're wanting 2.4, and supposedly they're gonna put in pizza and then like some food trucks, it seems like it. Oh yeah, but for 2.4, it's quite expensive.

Can they carry— can they carry 3.5?

Uh, percent?

No, like, can they carry— can they carry through, like, give us 1.4 to, like, finish it?

Oh, um, that's a good—

that's the offer I would make. I would offer them 3.5 owner carry.

Okay.

And get them to write a contract for 3.5, because then at that point they'd owe us 1.4 at close.

Blake, you know he's kidding, right? He's messing with you.

No, Tommy would never do that.

I'm not messing with you. That is 100% how I'd offer that deal. Because they don't have— they don't even have a pro forma for that thing yet. So I'd be like, yeah, I totally see your dream. Here's a bigger one. So, because again, you could do that. And I want Catherine to know I'm serious about this. And that— and the fact that this is how startups happen. We heard a guy the other day— did you— were you paying attention when he said you get more money for revenue that isn't made than you do for revenue that is made?

Actually, he's going to be here any minute.

Yeah. So we were talking to this really smart dude the other day. He's like, you know, I can, I can 20x something with no revenue before I can 2x something that does have revenue.

Isn't that insane? Off of projections versus reality.

Right. And so on that deal right there, there's— that's 100% projections right there.

So seller financing.

See that? Look at that. At a 5 cap. Cap, right? That— you know who gets a 5 cap? Lowe's, Home Depot, CVS, Walgreens. Those are the people that get 5 caps. When you're, when you're, when you're a mom-and-pop, no, no, never done nothing, you're more around a 12 to 14 cap. And if you want to know what that is, go do the math on their, on their proposed blah blah blah income, and you'll see that You'd say, tell it, make it, make it a 12 cap, and now tell us what the price is. Because remember, when the cap goes up, the price goes down. Yeah, mhm. At a 12 cap, we're at 1.2. Yep. Right. Cut it in half because it just— it— you're buying a building with some pickleball courts. That's it. So I would go in and say, listen, I'll give you $1.2 million, but I want to sign a contract for $3.5 million. We'll come with the $1.2 million, give you $1.2 million, but I want you to carry a note for the rest of this $3.5 million because I want a contract on that. And the reason why I'm doing that is because I'm actually going to go raise the $2.4 But I'm keeping 1.2 for me to do whatever I need to do there to make it worth 3.5, right? Look at him, he's trying to figure it out. Because really, I mean, at the end of the day, it's not— it isn't going to NOI 40% ever. Um, it's a, it's a quick flip sales play. I don't know what their propensity for memberships out there That's what you probably remember last time you had to do a feasibility study, how long that took, bro. It was like a car wash. Yeah, I know it was for one of the other ones you did. It was the—

oh, the land in Mesa. Yeah, yeah, that took like 25 minutes.

That was a— I felt like it was 3 days thinking.

Oh, 25 minutes feels like 3 days.

25 minutes In GPT time, it's 3 days.

Is that like dog years?

Kinda works for me.

And Charlie years.

Yeah, that's great, Blake. Charlie years.

All right. Yeah. So. And so yeah, it's, it's The NOI really has to, to make sense. Um, so you can see right there that on a, uh, on a DSCR scale, you're right there. You're real close. You got to get that NOI up. So, but all right, cool. Pull up the other one real quick. I want to see Catherine does, does ours, uh, the one with the Scottsdale rental. Yeah, that one has details yet. Let's jump back over there real quick while Blake gets the other one ready. Um, Trevor or Roman, do you guys have anything you're happy dappy about? You want to— you want to talk on? Roman always has something. That's why I'm happy dappy scared to say anything. Not happy with any of mine. Nothing, nothing, nothing worth running. You got a property? Look at Roma. So right here it shows cash on cash return in the negative on all 4 years. Right. So like there's no way to make money there. Here. There's no way to make money off of that. Who's here?

Um, Travarious.

Pull the door. Hey, what's going on, brother? Good morning, how are you? I'm well, what to say? Very good. Come on over and have a seat.

How are you?

Well, about you?

It's good to see you. How you been? You're here, you've got like people from all sorts of countries here.

This is Laura. Laura.

Hi. Nice to meet you.

Tavarius. Tavarius.

Oh, we've got tons of people.

We are just about to wrap up our podcast here.

So get to see what we do.

Let me grab that bag right there. So anyway, all right. So looking at this, it shows that it's got negative holds. So if we scroll down, we can see that it never even comes out of the hole in the DSCR scale. Right? So again, this is why at the asking price, this makes no freaking sense. So go ahead and go down to the bottom real quick, and we'll tell it real fast. Build the scenario where this makes sense and change— the only thing I want you to change is the asking price. Give me a fair market offer with a DSCR score that shows at 1.25, and at the end— and don't change anything but the asking price. Leave everything else the same because We want to see what a fair market asking price is based on their pro forma they sent us. And they can send that. And then Blake, do you have the, uh, the, the, the skydiving park or whatever thing? Zip line.

Zip line.

Let's start it. I have the zip line park. Essentially, it would be more based as a land play because the zip line park is vacant So I was just running a feasibility on it, and right now it's saying it's doable, of course. But, um, because Branson, the entire area, it is just a giant mosh pit of just tourist traps, essentially. I've been there a couple times. It's cool, um, but I mean, it's— the zipline's still there, it's just not operating.

And I apologize because it's got poor marketing and advertising, 100%. Or did somebody die, or somebody died and they got sued.

Hasn't even pulled anything up like that. So I think—

you want to see if we can? I will find shit, bro. I will find it.

All right, so only give me like 30 seconds.

30 seconds? Oh my God, we're gonna change your name to Katya.

Her computer completely crashed. Yeah, she's texting me.

Yeah, she's out. I can pick on her all I want now. She's gone. Oh, um, no, I can't. Amor's still here. Never mind. Um, Amor will get me.

So yeah, the numbers that they have on the OM and then also on the website aren't matching up. So that's one thing that Deal Hunter brought up. But essentially it has 7 different lines. It's in Branson, Missouri. The plot's a little bit of a funky setup, but It's kind of a zigzag that they have for the actual zip lines. Okay, but this is the entirety of Branson. It's just a whole bunch of—

yeah, so I mean, again, if it's properly marketed and advertised, those things don't fail there.

Oh, I'm not even sharing my screen.

The things that cause them to fail, and we'll, we'll run through it, we'll ask it and tell it to figure out why, you know, what makes it fail. I'll I'll point that out. No one died.

I run back up to the top. No good news, at least.

Okay. Yeah. So what it— what it— what it got is they won it at $3.5 million, which is going to be too high. That's 15 acres, okay? And then it's approximately 27 acres total.

Yeah, so it's running— I have to verify how much it actually has because the marketing says 27, but LoopNet says only 16, roughly. So that's a pretty big difference.

It says 27, but, uh, but the LoopNet says 16. So it's like, even on their own advertising, it's got It's got inconsistency. So that's— that is a red flag usually. Good morning, Ellier. So going down.

Do you know Ellier?

Yeah, they introduced us.

Okay.

So do you want me to just send you to other things later?

No, we're going to do it right now. Let's pull up Amor's. Okay. Let's— I— since there's these— got these red flags, let's go ahead and show this for tomorrow. Sounds good, uh, because I, I can guarantee it's got operating issues. Let me show it. Let me look at a more thing because this is in Quartzsite, Arizona, and it was an RV park, 20 spaces, right?

Oh wow, that's—

yeah, it has 20 spaces. It has a couple of manufacturer's homes on it too, and like a big house rental too, big rental house on it.

Everything is for rent there, and they got mortgages on a couple of the units out there.

Yeah.

Okay.

It seems funky donkey for sure.

Yeah. I mean, I've drove—

and then seller finance.

So that was the other part. It was the seller financing that I liked about it.

Okay. So I put the numbers in.

Yep.

Um, move out the way that they sent us.

Sorry, right? And they were sent, sent it to us, um, asking price was like $600,000 or something, right?

Yeah.

And basically this is, is a go deal if we ask for less or whatever, and definitely seller finance, right?

Okay. And then the value, uh, cap rates show based on the estimated value, that 8 to 12 cap rate range. So they were at $600,000, so they're on about a 9 cap. That sounds okay.

Um, 9.13.

We'd like them to be at a 12 because again, they're not a name brand. I, I— anybody that's not a name brand, you got to start a double-digit minimum. If you ain't got 20 years of track record, you got to start in the double digits. So this can—

you want to keep going, Dan?

Yep, yep, keep going. This looks good so far. So the biggest underwriting issue right there is that it's got, um, so a seller NOI is 54. Keep going down. Let's see. So yeah, it says to offer between $500,000, $525,000, and that's with us getting a bank. If the seller wants to close at $600,000, make them carry. And what are they asking them to carry? 80 to 85%. So a down payment of 15 to 20%. Make them owner carry. What did they— what, you know what they'd be willing to carry?

No, I can find that out.

Okay, so yeah, it says here go is, uh, $550,000, but if they do seller financing, then yeah, go with a— we'll make it a go at a bank rate because again, we got to get the books right, we got to get the park stabilized. It's going to take 2 to 3 years, and with all that done, then we can go back and refi. And get, you know, a million dollars to pay them off. So I like it. Let's run a— uh, is it able to pick up my voice? You want me to do a prompt?

Oh, wait, wait, wait.

Here you go.

I would— if we could get— I would like to see if we could get a, um, an LOI to the owners and, uh, an email composed so that we can request what they feel like is a fair selling, uh, seller financing term sheet. Uh, we feel like they would need, uh, go ahead and prepare a term sheet based on the numbers above and include that in the email for the sellers.

Oh no, it didn't work.

Thanks, GPT. I would just— I would— yeah, I could text it to you when we're done and, and, and get it.

Yeah, just text it to me and then I'll run that. Okay.

Down good. All righty. Well, it's 10 o'clock. Does anybody else have anything they want to throw in here real quick before we wrap it up? Roman, he's probably over there being on OnlyFans.

I, I just got a new one sent here in Florida for a 64-unit mobile home park development. Already has, um, development approved.

Yeah. So I browse up. Yeah. Run it through OZ Wizard GPT and see if it's in the OZ area and then let us know. We'll do it. I'll let you know tomorrow.

This is awesome.

All right, everybody.

I wanna know.

Sizzle. How's your baby?

I'm good. I'm good. Yeah, but how's your baby?

How's your baby?

Oh, my baby's good.

He's better. Yeah.

Yes.

I'm back.

I'm back in action.

All right. And then I want to have you on that call with the, with California on the 21st. I don't know if you heard about that one, but with Katya. With Katya. Okay.

I'll probably, what is our time?

Uh, 3 o'clock.

3 o'clock your time, my time?

Cali time.

We're at the same time right now.

Okay.

Okay.

Thank you. And then, uh, I see Kina in here. Hi Tina, we'll see you next week. Um, that's about it. I'll wrap it up with a prayer. Heavenly Father, thank everyone for being in here. We ask that you continue to bless and guide us, get us through the rest of this week in your will, and in your son's name we pray. Amen.

Amen.