AI Live - Land Shark Mastermind

You're muted, Catherine, if you're talking.

There you go. There you go.

Laura, you can hear us?

Yeah.

Okay, now I got—

now I can.

Am I legible now?

Laura, can you hear us? Yeah, I can hear you. Awesome.

We're legible.

So we have Hillary Chang who's joined us, Lance Barwick who's joined us.

Hello.

Katya. If you make me co-host, I can't get people in. Happy Friday, everyone. Happy Friday! This is gonna be fun. Good morning! Morning! How are you? I'm good. How about you? Super excited.

Good morning!

I love it.

I can't wait to see what fun, uh, I gotta talk to Blackie real quick.

Pictures he has today.

Um, Lance, welcome in. Uh, Lance, are you— hey, thank you, sir. Are you Lance from last night? Lance?

Yep, it says— yep, sure is.

There he is.

Don't recognize you with all your hair off.

Yeah, right. Oh, sorry, let me, let me put on a hat. I'm not used to seeing you without it.

Now I know who the hell you are. Jesus scared the hell out of me. I thought, where is this guy in his white van? Um, so anyway, welcome in, Lance.

Thanks.

Good morning. Good morning.

Good morning. They're getting, uh, we're getting solar put into the roof up here.

Wow.

So yeah, we're gonna spend about a million and a half dollars on solar to make the freaking power bill go down here. Mike's tired of paying 6 grand a month for power. Yeah, $12,000 a month when it's hot.

I can get that, right?

So $12,000 a month for power bills, freaking ridiculous. Um, but, um, wanting to, uh, wanting to— what are we going to— um, Blake, uh, your email came in, uh, from the car wash, correct? And did I— did you see my response?

Um, I need to go look back at it. I saw the notification, but I didn't fully read it. Did you see what they said originally?

What was— yeah, we— I, I went through it, but what is— so I want to explain this method to you. It's called phishing, right? You come in with a ridiculous offer. Hold on, Alyssa's here.

He can hear you because you got the microphone on.

Come on in. I can't chew bubble gum and roller skate at the same time. Time. Let's not do that.

Okay.

Anyway, um, Kathy, don't smile like that when I say stuff like that. That is insulting.

So now we need a walking bubblegum backdrop, like, for Tommy.

Jesus. And him falling.

I can't roller skate, period, so I can't be laughing.

Exactly. Anyway, so Blake, Blake got a— let's, let's walk the group through it real quick, Blake. So we got an email, uh, back from— you made an offer, we got an email back where they're like, yeah, we're not even— we're, we're not even in that reality. And they're like, chuckle, yeah, they're like, you don't even have any skin in the game, and you are only asking for $800,000, $800,000 over carry. And there's no— you don't even have any skin in the game. What I responded to you was Um, how much is the property? Like, what is the asking price? Because I, I know you made an offer at like $2.9 million or something like that.

Uh-huh.

And then when we ran the numbers, like, the numbers don't add up because they're almost going broke as is, right?

Right, correct. Uh, the asking price is $3,737,000.

Okay, so here's how we do this. We say, okay, great, we'll come in at the two— we'll come in at at, uh, uh, 2.1, where it's justifiable, and here's the cap rate to that. We show them the number, right? Because, because the numbers they have were, were really confounding, right? So we straighten up the numbers for them, send that back, and say, here's our cash offer. By the way, we're a private equity firm. And they go, uh, because now they have to present that offer. And if, if they don't present that offer to their seller, that's illegal. All offers must be presented in writing to a seller, and if they do not do it because they're, they're, they're field blocking, then they are what's called a, uh, a, um, fiduciary agent, or, or, or basically they're no longer a transaction broker.

So then what I— so would I re-edit the LOI to a different form, or what's the best way to go about this?

Um, yeah, at that point I would respond like, let's, uh, go ahead and run the numbers again. Get, get it to, you know, get it to say why to, you know, get Deal Hunter to justify the 2.1.

So drop it down because we originally, that message that we sent was 2.9.

Now we're going to even drop it even lower to 2.1 because you wouldn't even consider the $800,000 carry. So let's remove the $800,000 carry, which brings it down to 2.1 instead of 2.9.

It'll just be straight cash and would it be fine?

Cash close in 90 days after due— you know, close after a 90-day due diligence period at 2.1. Okay. And then we justify it with the numbers and say, here's the numbers, this is why we're doing it this way, because your cap rate is 7% on, on your bullshit numbers are bullshit, and the 2% increase on lease and all that insane. And if this company goes out, you've got an outdated, uh, outdated, um, uh, car wash there. The car wash is outdated. Nobody does the, uh, self-cleaning car washes anymore. They, they want automated car wash and people doing the car wash and washing the car. They— so, um, you need to build a lounge on that property and extend it and make it where people can just pull in and get their car washed and they don't have to do any work to get it does. Boom, done. And so that's why we're offering a 2.1, is because we got to redevelop it, right?

Okay, sounds good.

So, and then again, like, you're— we call it fishing because you, you threw it, you threw the, you threw that out there, and he's like, absolutely not, I'm not even going to entertain that. So then give him an offer he has to entertain, right? He said he wanted cash. Okay, here's a cash offer. Now bring it to your seller and tell me why they won't do it. Here's the numbers and just Asian. It's Monopoly, right? Yeah, you only want— you only want to be nice to those that like own the big boards.

And you don't want that first deal either, so that's a good sign.

Huh?

I said you don't want them to take the first deal either, so you want to go back.

If they take the first offer, it's because you were a sucker.

Oh yeah. Okay, all right, I can work on that and resend one.

Perfect. All right, Catherine, I'm going to send you something to pull up on.

So really quick, who has deals to run this morning? If you just raise your hand. So, Tommy.

Me.

Who else?

Me.

Nobody else has deals to run? I'm so sorry. This week I have with finals and the presentation.

Excuse me.

Totally. You're good. Next week I'll be bam. Right back.

So I'm new here. So, uh, you guys were talking about it last night and I just realized, hey, I'll go to their website and I'm like, oh, they're having a Zoom meeting right now, right?

Joined in.

So what kind of deals?

Let's introduce Lance real quick.

What kind of deals are we talking about?

It's going to be one that we show Lance.

Okay, great. So yeah, so go ahead.

No, go ahead.

So Lance, so he was at that— we had a— you guys all know we're part of Club Scottsdale, and they had a dinner here last night. They have a, uh, monthly— it's called the Collab and Connect, right?

With all the, with all the, uh, all the members of Scottsdale.

We got to meet Lance last night.

Uh, I've met Lance several times, but I got to really like introduce him to you last night big time because, um, Lance does, uh, Airbnb management. He manages, uh— Laura, pay attention— uh, he manages Airbnbs. here in the Scottsdale market. How many you got? I think you said 32, 33?

Yeah, about around 30. So I, I invest myself. I find houses for investors that want to take part and want to take a part in STRs especially. There's a lot of benefits with, uh, active participation and, and getting a ton of money back from taxes if you're act— if it's an active, uh, asset. So, uh, so yeah, I do that, and then I manage them too. So, but, but I mainly do, I mainly do the back of the house stuff, the analysis, the sales acquisitions, and then I have a business partner that does operations so that we stay in our own lanes and we can concentrate on what we're really good at.

Yep. And so what does it look like when, say for example, a, a somebody signs up with you, how much does the investor get out of what you guys do? Like, how much do you keep and what does the investor take?

We take 22% as our commission, and then— but we run a completely different commission than really anybody in the industry does because the industry pads their numbers in case they don't perform. So they add a technology fee, and then some people I'm taking over they, they were paying $5,000 in linens a year, just in linens. Uh, so the management company charges them $5,000 for linens and $150 a month for technology fees. Whereas all of mine is— there are no fees. There's just that 22% commission. And then if I don't perform, then I'm gonna lose money because I gotta pay for the linens and everything else. And the towels and, and the technology.

Yeah, just to, just to justify what he's talking about, there's a company out there called—

I think you want mute, or am I there?

Am I there? Hello?

We can hear you.

Okay, uh, where, where Lance is at is, is at 22%, where his competition is— I'm not going to say their name because I'm, I'm affiliated with them a little bit still, but, uh, they get 54%. Yeah, so his competition, if you want to just jump over to that boat you can do that too. And as far as I know, Lance does a far better job of taking care of people, um, on the deal. So Lance does whole houses, not, not, not bedrooms. The competition does room by room. So I think that's another reason why they take a huge portion of that. But, um, yeah, it's good to have Lance in here. Uh, so Laura owns a property out here in Arizona. Um, we've got people in here, Lance, from California, Washington, Florida. Um, and so what we do is we, we go digging up, uh, properties. And so we do what's called diving for dollars. And so we, we go find them, we, uh, we offer— make offers on them, we fund them, uh, we secure them, we stabilize them, and then we exit them. Um, and we help people either build a portfolio or build a bank account. And in real estate, I feel like building a bank account is easier than building a portfolio. If that's what you want to do, if that's what you're after. Other people might be good at building a portfolio and not really good at managing the operations. Like you said, staying in your lane, you got a partner to help you do that. And so that's why being in the Land Shark Mastermind is important, because there's everybody in here has got a lane and they're really good at the lane they're in.

And so I lost my audio and my speaker for a while there, so I don't know if you noticed that, but I'm going to make you go back and watch the YouTube video then when this gets produced.

But as I was telling people how great you are and all the things that you do. So thank you. What we do in here is we do a lot of real estate investing opportunities through AI. So I'm going to give you an example of what that looks like real quick. I remember I told you last night that Michael was looking for a property. I found a property. I had one sent to me. It looks pretty interesting. I don't know why it doesn't have any attention on it, but I'm gonna investigate it right now. So we'll show you how. Right.

Okay, great.

Program actually works. What's that?

Oh, I just said, okay, great.

Yeah.

I was very interested in it.

Perfect. Catherine, will you fire up that message I sent you?

Yep. And I was gonna say, really quick, Katya, if you can go into LinkedIn and get the live that's being streamed and share it to the groups that have got 100,000 or more. That would be awesome. LinkedIn or Facebook? LinkedIn. Blake Scott Facebook. Then can you quick— can you quickly, uh, when you get a text message, can you text me the number? Because I got kicked out for some reason. Thank you. No worries.

Okay, so we're being sued by Cameron. Oh God, you know, little Cameron.

I can't even go there. So I was gonna say, if nobody has a deal to run, I have one that I mentioned to you the other day, Tommy, but it's like I'm super confused about it and it seems like a super heavy lift. So I don't know if you guys want to look at it, you have time to deal with it today, whatever.

But, um, I'm waiting, I'm trying to get— did you find the one?

I'm— look, you said you emailed it?

No, I sent it in text message, but I'm going to email it right now then.

Yeah, because I'm logged in as you, so I I need it emailed.

I'll try it here. Right, coming that way. I'm about to teach this little rich kid a lesson. So the guy that was supposed to build our website for us is now trying to sue us for the amount of money that he supposedly claimed what his website was going to be worth, and then it wasn't worth that, and we actually had to cancel the event because the freaking website didn't get done on time. So kind of crazy how you would dare go get an attorney for $4,500.

Well, he's from California. The joke about California is you're in two categories. You've been sued or you're going to be sued. So Californians are very sue happy.

I love it.

Yeah, I love it. I'm sorry, Katya and Blake, just know that that's the reputation.

Here's his corporate bail, baby.

It's one of the reasons I— that's legit. That's a very— somebody literally legitimately stubbed their toe on my property and then sued me for $250,000 for stubbing their toe. Somebody else on purpose fell on my property. He wanted $500,000.

Check that, check that email real quick, see if it's up in there.

You better watch your sass, Tommy. I left California. Uh-oh, that look. There's the backdrop. Catherine, you should have gotten a text.

Okay.

Yep, it's coming your way. That email still hasn't come through.

If you— because I'm sending it from myself to myself, I think that's probably the problem.

That would be the problem because I'm looking on mine. Okay, so let me go to inbox.

Okay, little, little bit too much Blondie.

Too many emails, too many email accounts. Tommy's facial expressions are like cartoons, right? Okay, are you sending to your Titan email? Are you sending it to one of your other emails?

From Titan to 3AZ.

Well, just email it to her.

Seriously, see, here's the problem with how you use— how you use— so if you go to the actual like mail thingy, because you're not going to find it that way either. Probably not. There we go. All right, this is called rock and roll. Hillary, uh, have you said anything or something?

She hasn't said anything yet.

Hillary's a ghost.

She's real. She's afraid of us. Everybody, so just read in the chat. So Hillary, be great if you could come on, but she put in the chat what she's actually looking for, her buy box.

What's her bio? What's it say? What's it say?

So she says, good morning everyone. I'm a new member here looking to connect with you all. Uh, currently working on 324-unit Class A in Houston, 228-unit Class C in Tulsa, Oklahoma, Class A apartment in Vegas, Class B in a hotel in Florida, Sub-2 house in Northern California. So those are all the things she's working on.

Um, are those things you're seeking funding on? Do they be partners, etc.?

Hillary, you want to unmute and come on?

Going once, going twice, about to get, about to get sold. All right, share the screen. Let's show them what we got. Hillary will come back. This is for, uh, this is for us, Lance. So I got sent this piece last, uh, yesterday, last night. It's been on the market 91 days. Um, and if you scroll that— where you going? Hold on, what is happening right now? Can I get a full screen like that? Yeah. And so in here we've got this property We're going to take a screenshot of it. I'm going to just— we're trying to demo this for, for Lance. So screenshot it, get the picture of just— don't include any of the trash. No, don't call. Please stop. Don't include any of the trash. Get the screenshot showing just the property, the map, and the address.

Okay, like that?

Yeah, drop it all the way down so that it can see the, the time on market and, and the year built. Right there. Okay.

Okay.

Now just take that screenshot right there.

Okay.

All right. Now, the way this was marketed to me was that this is an Airbnb already. And just with that screenshot right there, Lance, I'm going to put this in what's called Deal Hunter by Land Shark. This is the AI tool that we use. And what I can do is with that screenshot of that property— hold on a minute. What are we doing? We're going to show you how to get to it. Yeah. Lance, are you familiar with how to find GPTs on ChatGPT?

Say that again, sorry.

Are you familiar with how to find ChatGPT?

Oh yeah, yeah, yeah, I have a corporate cloud subscription, so.

Okay, this, that's great, cloud's good, but we've only designed this model for ChatGPT because it's the most popular. So with ChatGPT, you can go into this model. It's freeware basically, and it's called Deal Hunter by Land Shark. And you can start by start having a conversation with it by just posting a picture and having and saying 3 little words. Catherine Bell.

Yeah. Run this deal.

Right. So can you put the picture and the 3 little words? So we went and took a screenshot of that listing I got sent last night. We put it in there, we put run this deal. What it's going to do is it's going to provide within, within 3 minutes a due diligence report of all the things that we are, you know, uh, that we do in order to evaluate property and do due diligence on a property. So aspects to me.

Yeah, I've been debating about building one like this for short-term rentals.

This actually will do an analyzation of it as a short-term rental. I'll show you here in just a minute. But real quick, the snapshot shows us a 5-bedroom, 3-bath, 4,000-square-foot home on almost an acre. Okay. And it's, it's, it says right here that this is not a strong long-term rental deal at this list price. So we would need to have about a $22,000 a month gross revenue to hit the 1.25 DSCR. So all of the information there says, you know, what, what the concerns might be. So the assumed price of 1.76 breaks down our loan for us and shows us kind of like what we'd be looking at as far as an annual debt service and what we'd need to put together for this. These are all built-in prompts that we built into it when you say run this deal. So, um, to run it as a short-term rental is totally possible based on the location. So, um, here's some, uh, short-term rental, uh, revenue sensitivity numbers showing that we would have to hit between $14,000 and $26,000 a month, um, on that. Um, so at a $1.76 price the deal, uh, um, is, is pretty tight until you get, you know, a consistently, uh, gross $22,000 to $26,000 a month. So, um, with that being said, uh, it says, uh, for us as investors, we should come in closer to like 1 point, you know, 1.2 to 1.5. And then with that initial offer— and here's what I wanted to point out to Blake The initial offer we came into that guy with was a highball. This one's a lowball in this case because they're wanting $1.7 million. We're on, and it says initial offer at $1.3 million and allows us to build up. What we did with the car wash guy was we gave a highball. We said, we're gonna go $2.9 million and $800K. Even though their numbers were like somewhere around $3 million or whatever initially, they knew they were gonna get a lower number. That's why they're at up that high. So, um, on this it shows the best funding paths are do either a DSCR, a seller financing, or owner-occupant, uh, house, house hack with the luxury play, meaning that we, uh, we get a single person to live in the back and then they rent the house out as a party house, right? And so they only have to pay a part of their mortgage. Get Blake out there. So Blake, would you live in this house? We'll show you some pictures here in a minute.

So Katya would.

Katya could maybe.

So I see that smile. She's considering it.

Right.

So the, uh, the goal is Yeah, that's a pretty cool tool that you have.

Um, so that it gives a no-go, no-go. I'm trying to deal with, uh, closing on a property right now. Um, and, and basically says no-go at the list price. So let's give it a— let's give it a prompt to talk to it a little bit because Lance is a smart guy and Lance can see that when you have a conversation with, with it, that it does change the way that it responds.

Ready?

All right, ready to go. So what we're looking at doing is turning this into a luxury short-term rental. Um, go use, uh, the site called AirDNA to do some analysis on the comps for that area and that style of house. I believe that we could capture $500 to $1,000 a night, uh, in this area with the right marketing. But I have a, I have an Airbnb rental manager who's going to also analysis, uh, analyze this. So please create a report for him to review. And so, uh, sending that out now, what that does is it allows us to get, um, a very thorough understanding of, of the direction we want to go with it. And, and all it does is it does the computations really fast for us, um, and it allows us to, to, you know, thought and verify it quicker and quicker, um, in that way. So, um, the, uh, let me see what else we got going on. I want to go show some pictures of it if you can, Catherine. So just pull up the, the ad again and full screen it so that we can kind of look at pictures. Um, the area is a, is a very decent area. Um, that, like, click the picture. There we go. And then click that one. Click that one. And then do the arrows. There we go.

Can I find the Airbnb listing too?

Uh, it may, may have had one. They said it was an Airbnb, so you can see it had the the miniature golf thing set up with the pool set up with the hot tub set up with the back porch set up with the, with the— I think there's a golf, there's a big golf thing set up.

Because if you pull the Airbnb listing, then you can see who the manager is and also determine whether they were failing, it's a good manager or a bad manager. And that way you can look at the— you can look at— I can actually pull the data, what it's, what it was making, if it's still alive.

Airbnb.

All right, Blake, have a good, uh, have a good week, buddy. So yeah, you can see here that it was set up, and I mean, I don't think this is a house that somebody's living in the way they have the pool table in the boardroom set up, right?

Oh yeah, just back looking at the backyard, that's right, has Airbnb written all over it.

And then the interior, this kitchen is outdated as hell, and the walls are outdated, the carpet's outdated. Uh, it's very, very staged. That's a freaking IKEA bed. Go back, go back, go back. That is an IKEA bed. Do you see the slots right there? Yeah, go look at the bed right there. Yeah, so, um, bathroom is kind of outdated with the, uh, glass. Go back, please. See this glass wall back there with that block glass? That is 100% 1981. Uh, the house was built in 2001, but, um, you know, they left it to where there's, there's a lot of stuff that needs to be updated. That whole— all of this would need to be updated for it to be a luxury. Yeah, right. So you're looking at spending at least another $150,000, $180,000 on the inside to get it where it needs to be.

What the hell was that? That was an Airbnb bedroom.

Yeah, right.

3 beds in one room.

4 beds. It's a trundle.

That's a total Airbnb bedroom.

Because the one on the bed on the right is a trundle and it pulls out.

So now you go from sleeping 6 to sleeping 10. All right. Because of that bedroom alone.

I'm going to eliminate that and call it a 4-bedroom. They said it was a 5-bedroom. Come back up. Back.

Well, by Airbnb standards, it's still a 5-bedroom.

It just sleeps, right?

That laundry room is, uh, I'm just having a hard time with that laundry room right now, that's all.

It's interesting.

Deep breath. Anyway, um, it's amazing what a, a $1.5 million does. This guy's about to launch a drone out there. Um, anyway, cool backyard, cool-ish backyard. Um, outdated pool. Look at that water feature. It needs, it needs work too. You need a slide.

Cheap furniture. Yeah, like, it's—

I mean, that's definitely an Airbnb. And so I can see why it maybe didn't do so well as a— because if I paid $500 a night to stay there, I'd be a little bit mad. Yeah, I might be a little bit mad. Bye. So anyway, interesting.

Anyway. Okay, so back to ChatGPT.

Right, right, right.

What does Deal Hunter have to say about this?

Let's go see. So it says right here, the report created— let's full screen it so we can read it. It says here that, um, he read your $500 to $1,000 a night thesis is plausible for the right luxury short-term rental positioning, but the property needs to perform like a true premium asset, not a standard Scottsdale rental. So at the current price of 1.76, you'd need $191,000 to $230,000, uh, to hit that, you know, 1.25. Uh, the compliance flag says you need to have a TPT license. We already understand that. Next actions. Um, so it didn't quite give me, uh, much of an information. Like it says here that Uh, send the report to your Airbnb manager and have them return the AirDNA export screenshot, export screenshots, 10 prompt, 10 property prompt grid. Okay, so let's, let's go back and prompt it again.

Okay, go ahead.

Do a deep dive on any short-term rental, um, Airbnb, uh, values that you can find. Uh, what the hell? It didn't catch anything.

Oh, that's weird.

Well, we shouldn't have sent it. It wasn't ready.

Okay, try it again.

We want to get a, uh, a deep dive on the short-term rental comps in the area, so do a deep dive on Airbnb real quick and see what's there, or AirDNA, and see what people are getting. It only did an 8-second dive, so Wow. So it shows that the, the, it's, it's a really, like, they want us to make at least $200,000 a year and it's saying that the average is $41,000. So you gotta be an exceptional house there, right? So it shows here that there's 5-bedroom luxuries out there going for $75 a night. I don't even think that's possible.

Uh, no, the $75 is the charge they do for pool heat. If you look at the—

oh, the listing charges extra. Wow, okay, okay, I see it now.

What did it say about Rabu? There was— scroll up a little bit because Rabu is a decent site. Right, yeah, right there.

Rap—

Raboo Scottsdale's data shows—

click on the Raboo link right there and it'll show right here that on Raboo it's giving a 56 out of 100 score. What is Raboo? Is that a like a—

Raboo is like a deal calculator. Uh, it does a really good job of breaking down deals, so kind of like what you guys have. I think if you do go to buy, because you're not, you're not getting the full, you're just getting the Scottsdale short-term rental market. You're just getting the overview of the market, but you can put the specific address in and it'll give you more information about it. So even you might even tweak your Deal Hunter thing to go look at go look at AirDNA and Rabu and look at both and compare what both are saying about what, what a house would make.

Yeah, well, I did pull that data. It did pull that data. I'm not real good at navigating this. This is why I need someone to help me with it because I hit the wrong buttons all the freaking time. So right here it did pull it.

It—

so it's using Uh, it's using Rabu as a source, it's using AirDNA as a source, and GoodNights. So it's pulling 3 sources right there without even being prompted. Yeah, I don't know how it's—

I'm curious how it's pulling GoodNights because they're a manager and they're, uh, I hate to— they're, they're not, they're not, uh, an above average manager.

Huh. Um, well, it's pulling it because it's a source on, on, uh, the internet. And so what we end up with is, with air— with anytime we use, uh, artificial intelligence, we have to be— I can't see, right?

Yeah, yeah, I, I know what you're leading to.

Yeah, we can't, we can't be like— it pulls the RBO. We can go there and, and view it and, and see what, what it's what it's doing there. But like you said, you know that this is a— this is just a mediocre source, then that's what it is. It's a mediocre source. When we built— when I built this with my partners, we set it up to be just good at computation and good at sourcing and getting, you know, getting our, our, um, numbers right so we knew, uh, whether or not stuff was a good deal or not. And so in this case, like, this may not make a shit ton of money, but it might be a good write-off for Mike if he's looking to to do those types of things. This right here is the source list.

If the house was managed— I'll be honest, even though we're recording, but if it's managed by Goodnight, that's the thing that I was asking about, who manages it? And if it's managed by Goodnight Stays, I'm like, oh, I can get a lot more out of that.

Right, right. So it shows right here, Goodnight Stays. And, and it's just given like a market update, like, oh, okay, right? So you can go through and verify on, on each one of these. So, and, and again, it's just going to give us what we ask it for. So, um, on here, let me see. Create a pro forma that we could utilize. Give me a 3-year breakdown on an Excel-style spreadsheet, but put it in, put it in the chat on a canvas so that I can edit, copy, and download. Include all of the necessary expenses and give us a final number projection if we were to have like an 85% occupancy. On this property. And we want our DSCR score to be about a 1.3. So reverse engineer the numbers to make this all work and see what it looks like on paper. We want to offer 1.5 to the current owner and use that number as our purchase price. And so by getting very detailed about what I want and what I'm expecting, I'll be able to really kind of like surgically explain how we're, how we're wanting to take this property down or what we're wanting to do on this deal, right? So what is going on? Um, so let me see.

DSCR. Here we go.

So when I told it to put it in a canvas, it put it in a position where I can actually just copy straight from here what it says and, and take it back with me over to an email or Word document. When I use it, um, when I use it on, on my other computer, for some reason on a PC it works a little bit differently, but I'm able to just download it directly. So here's the 3-year pro forma, and it shows projections And so it shows how much we'd have to do a night. Our average daily rental for 310 nights has to be at least $876 a night. So, and that's to show that, you know, we're, we're going to have good numbers from day one. So this type of information is important for investors, especially when they're trying to understand, like, how they're, they're going to grow and, and build value in, in with whatever they're doing. So, um, when we were talking with, with Michael last night about it and him saying that he wants something like this, you know, these are the numbers that when you're just having a conversation don't enter your head, right? And so if you're able to produce those numbers and, and, you know, I don't know how long it took, 3 minutes, right? Not even, um, it changes the conversation, right? You're no longer just having a talk about ideas, but you're actually planning how you can do it, right? So, um, we were talking with somebody last night about DSCRs, and if we're able to prove the DSCR, we can get it done, um, and get, get a, you know, a good loan on it. We've got, uh, the ability to set up the, uh, fractional with this. Moore's not in here today, but Lance has probably heard of this before, but it's called a fractional. And a fractional is an investor club where people put in money and as a group and a collective, they go and buy a piece of property or they invest into a piece of property. And this would be one of those, right? So, but yeah, I think it's justifiable to go back and, and, and do some more digging on this. And so I've got a meeting to go meet with them on Monday and I'll do some more digging on finding out who managed it, why, why are they selling it, why is it not, why is it not performing, etc. And I think the other part too is going to be to update the kitchens, the bathrooms in the house to actually be a luxury, right? Especially if it's in a spot where it's supposed to be luxury, right?

Yeah. I'm trying to pull the comps in the neighborhood right now too.

Cool, cool. Well, you can pull the comps right there and I can pull the comps right here, and I bet you I beat you.

Well, yeah, you'll probably beat me because I, uh, it's crunching the— it's creating a dashboard for me right now.

I need to be able to switch. Go ahead and pull the comps of the, uh, residential houses in the area that have sold in the last, uh, 90 days. That are within a mile. Give me a CMA of the current, uh, uh, current comps right there. And so again, it's, it's hitting all of the— hitting all of the spots. Um, that, uh, it needs to define, you know, the prices on stuff. So here we are, preliminary CMA shows that, uh, there's an active listing out there right now which is ours for $1.76 million. There was a house close to that that sold, um, it's newer construction, 2024 construction, so interiorly it's, it's way better for $1.9 million. Got one down the street built in 1995, so it's 30-plus years old for $1.2 million, $1.3 million, $1.9 million. This one right here is a bigger piece of property, a little bit. But there you can see over here, and this is the numbers that we use as investors. We use a square foot price to really determine where we're at. And what we can see is that at $427 a square foot, They're a little bit, uh, on the high side for that age of house. Um, and so these are all active listings. This is what they're up against trying to be sold. What actually sold are just these two properties right here, and they're literally on the same street as that one. So all the rest of these are just— they're, they're just ideas. They're not actual comps. And you can see over here that $435,000, $383,000, this 383 is, is literally, uh, the, the lowest per square foot priced one on here. Um, uh, but it's also a larger home. It's still another 800 square feet larger, right? And so, um, the rest of these are still at, you know, this one is the second lowest one, the $427 a square foot. So for them to really work, it'd need to be closer to the 383, and, and that way it would, it would fit. With what, you know, what is currently, you know, being sold in that area at that price. This one being sold at $404,000 from, from 1995 is because it's only 3,000 square feet. Okay, so if you could get this one down to $404,000 at 4,000 square feet, then, then that'd be a good buy. So what I'll do is this right here. I'll tell it, because we got market anchor info right here. There's 234 recently sold homes, the median price about 1.3, and that's with an average of 75 days on the market. This thing's been on the market 91 days. Okay. And so it shows here conservative residential value needs to be about $380,000. So it brings it down to the 1.5 that I originally said. With the size of lot though, 0.91, it's not over an acre. So, and then on the premium side where it's newer condition, we could probably get it to 475. Meaning that it'd be like $1.9 million, right? I think the house is— interiorly is, is just got to be ripped out, gutted, and put back together, and the outside just updated a little bit. It's a playhouse for people, like the house we were at the other day where they had the in-ground trampolines and all the stuff there. That's basically what we'd have to do, a little bit of outside. I would love to turn that water feature into an actual usable water feature instead of it being a stupid, like, waterfall, like put a slide on it so the kids can play with it, or put a grotto up so it overflows, put it down waterfall, right? Put a rain curtain is what they're called, like put a, a sizable thing that the kid can climb up on top of and dive into the pool, right? Right. So spending that kind of money on it though wouldn't— you'd never get it back because if you bought it at $380,000 and then you put, you put $60 a square foot into it, now you're at at, you know, uh, $440,000. So, and $475,000 is your, you know, strong comp supports at $440,000. So you're only going to make $35,000, $35 a square foot.

Yeah, no, really worth it.

Not worth it. Don't touch it. Right. So then you got to go another direction, but that's if we're able to come in and get them to be realistic about the numbers they're at. Right. So they are at the top line, shows it right there. $1,750,000 is the top line for as-is residential value in that neighborhood.

Right, right.

So, um, adjusting the residential buyer value shows it right here how to do that. And so that, that right there— are you still working on finding the comps, Lance?

Yeah, it takes a while for my pricing software to create a new dashboard.

I love it because Lance, Lance is using a professionally paid-for system and and I'm not knocking it, uh, because again, when you're making financial decisions, you want what you need, right? This is just a tool that helps you get to those answers fast and then go back and verify on what Lance is using. So I'm not saying don't use what Lance is using, and this isn't, this isn't Paul Bunyan versus the chainsaw. I don't know if anybody remembers that story, but Paul Bunyan was a lumberjack, and, and, and he used to cut down trees up up in the Northeast, uh, uh, I mean the Northwest, with his big blue ox, and he took over Canada and made all the lakes in Minnesota. You know, nobody remembers the story of Paul Bunyan.

Oh, I remember.

Yeah, that's freaking homework for people. Go look it up. Um, Paul Bunyan versus the chainsaw was basically saying that a manual lumberjack was slower than a chainsaw, right? This is not the case here, right? What Lance is doing is digging up professional information that can validate what Deal Hunter by Land Shark's able to produce. So, and with Lance as a professional, Lance, what's the value to you in something like this if you, if you have this and, and you're able to then go back and take this information back to what you're currently trying to—

oh, it's, it's incredible because, I mean, it takes, it takes me about an hour or two hours to come up with a pro forma and and, and it's all in a Google Sheet where this is excellent.

Yeah.

And it's, it's better than my pro forma because it's actually looking at how, you know, how you can structure the deal too.

Right.

And, and what you need, what exactly you need to make money on it.

Yep. And so it eliminates the guesswork behind trying to put the deal together so that you can make money.

Well, and straight out of the gate, it saves you an enormous amount of time just to see if you're, you know, you move forward with the deal or not, right? What's he need?

They want to move the car. You're good.

Yeah, okay, right?

Yeah, go ahead. We got noise canceling. They're about to fire up a Ferrari real quick, so pardon that. See, there it goes. Sound.

So we love the sound of the cars.

The difficulty of dealing with being in an exotic car. Oh no. Oh heavens to Betsy, how will we survive?

If that car was red, it's a total Magnum P.I.

car, right? It is the Magnum P.I.

car.

It's a black Magnum P.I.

car.

So that's awesome.

Awesome.

It is awesome.

Oh, the Magnum P.I.

days. Magnum P.I. I'm gonna grow Magnum P.I. mustache. Big old walrus.

All the youngsters in here is like, who the heck is that? Magnum. Blue Bloods. You know Blue Bloods? You guys would know Blue Bloods. Same actor, different show. Yeah, I know Blue Bloods. Are you guys talking about Tom Selleck? Yeah, he was— there was a show called Magnum P.I. He lived in—

he lived in—

the original Magnum P.I. Yeah, like remake of Magnum P.I.

Yeah, they made it stupidly.

He lived in this like mansion resort.

He wore really short, short, short shorts, like the shortest of short shorts.

We didn't care. He drove a red Ferrari.

And it's hard, it's hard to understand. I'm, I'm trying not to see that picture, but go look up.

He looks totally different than he does now.

Like he had to have had some sort of support structure inside those shorts.

Oh goodness.

To stay.

Oh, stop. Okay.

Okay.

Okay. La la la la la. Even Saray's like rubbing her forehead.

Kathy is gonna get us shut down with these pornographic videos of Tom Selleck.

What?

Fuck. Wow. I was just painting mental pictures. I was not showing them. Okay. I was not, I was not broadcasting.

Lance is like, I'm never coming back.

Right. So let's do this. I want to actually show, I want to show Lance an idea real quick. Can we go back to the, here, I want to give you the mouse back.

You can have that. I've got my mouse here.

I need to, need to go back to the pictures of the house. Okay. And I want to get screenshots of the bathroom, the kitchen. Okay.

Oh, I know what you're doing.

And then we're going to run it on Free Estimates. Lance, this is another, another AI model that we know called Free Estimates. And what I'm going to do is, let's see, go through here. If you go right to where it says up top, like kitchen. There you go. Let's screenshot each one of those.

I love the dining room table, by the way. It looks like a bunch of gamers.

Yeah, right?

I, I can't believe somebody put a dining room table in like that, and the chairs.

Yeah.

What are you doing? Just keep hitting the next button.

I just need to make sure it goes to Download, not clipboard.

Okay, okay, then you can go up to dining room or bathroom. Yeah, right there, bathroom. Let's do those. Nope. I don't want that one. I want to do just the master bath and the kitchen so we get some ballpark numbers.

Okay. So now go to deal there.

Yep. And we're gonna go again, go to Explore, just show them real quick.

Go to GPT Explore, GPT-3 estimates, free estimates. So those are my name on it right there. Start chat.

And what we're going to do is we're going to drop these pictures in there, and I believe this is 85266 zip code. I think you saved them in Documents, not Downloads.

Dang it.

Okay, I need to verify the— add the zip code real quick.

Okay.

Yeah, so go back to the— don't, don't close that. Just go back to right there and find the address. Go close that. Uh, get out of the picture thing right there. Uh, 85266. I was right. I got that eidetic memory. I just never trust it. Go back. All right, there. All right, and what we— I would like to get a kitchen and bathroom remodel estimate for this a project. It was built in 2001, so I want to update it with high-end kitchen, waterfall countertops, etc. And I would like you to do it— give me an estimate on this using the pictures for this kitchen and this master bathroom in the 85266 zip code. Go and put that together real quick.

Is it all there?

Yep. And then let it cook. And so what, once it's done doing that, I want you to X out of it right there after it's done.

Yeah.

Um, and we're gonna go back to the conversation bars and open it up from there. And then I'm going to do something while We're gonna go back and prompt it to do one more thing. Okay. Perfect. Now go ahead, X out of there. And we're gonna go back, to the, to the conversation area. And it should be right there. Yep. And so prompt it one more time. Go ahead and create conceptual a picture of the kitchen and the bathroom, show them side by side. And now go back up and let's review what, what we've got there.

I have my data now too for it, and I have the Airbnb listing.

Cool. Um, so right here you can see that what we're asking it to do is, uh, based on the photos provided, it analyzed the kitchen and the master bathroom and kind of reviewed everything that was in there. You can see it identified the mirrored walls, identified the glass block shower, identified the platform tub. So now what it's gonna do is give us prices on, on that in the high-end Scottsdale remodeling pricing. So pre-construction total's gonna be about $13,500. We've got a kitchen demo of about $8,000, a bathroom demo of about $11,000. And then we get into the millwork, Cabinetry, $44,500, $44,700 on the, on the cabinetry, countertops, etc. Uh, $27,000 on those appliances are $27,000. Electrical and lighting is $11,000. Plumbing, $6,600. $4,700 for the paint and the finish. Now into the bathroom, we're looking at $23,000 on the vanities, $37,000 on the shower and tub, $9,000 for the flooring, $7,500 for plumbing, $9,500 for paint, finish, and glass. And $3,500 to clean it all up, you're looking at a total of just under $245,000 to do this luxury remodel of just 2 rooms. 2 rooms, right? So, and then right beside this is our beautiful kitchen and bathroom. That's— tell me what's out there on the market right now doing this for free.

Y'all see what it just did? It rendered the pictures.

How amazing.

That's beautiful.

How amazing is that?

How long would it take to find a contractor, have the contractor come out, measure all the things, do all the things, get back with an entire design, a quote, pictures, and be, um, be able to present the whole thing.

Does anybody have any idea how long this could take to do that right there?

I don't know, but stay there.

That right there would probably take a month to put together with a contractor, get people to measure stuff, come out and do all the stuff.

And we did it in under 5 minutes.

In 5 minutes, boom, got the numbers, right? What was that, Tina? Tina said something. Somebody say something.

Yeah, yeah, sorry, I was just curious, was that free estimates that you guys were using?

That is, that is.

All right, right there, free estimates, baby. I'm gonna be uploading some pictures to that today, right? So Lance, when you're bringing on new clients and stuff, you literally could use this to help, you know, help them see what needs to happen to update it to be, uh, a brilliant Airbnb.

Yeah, it looks excellent.

So we built this for— we built this for rehabbers, we built it for fix and flippers, so they can go in and get some things accomplished, um, without having to, to, to spend time with a contractor. Because at the end of the day, like, it's hard for contractors. It is. It's, it's, it's a difficult process. to continue to deal with investors. So that's why investors typically partner up with contractors, is because the two of them working together. Uh, good morning, sir. Goodbye. Remember that guy?

Um, so Jalen's here, and then we have another appointment at 10:30 over at—

we're almost wrapping up. So, Jalen, yeah, come on in, have a seat. Well, introduce you to everyone.

Thank you. So yeah, we're, we're, uh, this is Jaylen.

Good morning. Say hi, Jaylen.

How's it going?

Good morning. He's over here slamming a C4. Yes, got the, uh, he's got to get the energy. He's only 22, he's out of energy already. Uh, how old are you?

26.

26. I insulted him.

Oh man, 25 was my favorite age. I celebrate the anniversary of my 25th birthday every year.

Every year.

I've had 26.

26 of them now.

Oh, Laura celebrates the anniversary of her 29th birthday. So yeah, yeah, yeah, just know this is your sweet spot.

I'm, I'm celebrating my 21st birthday Okay, 30th birthday all year long. So stop smiling like that, Lindstrom. Jesus, so mean. Okay, anyway, so it's 10 o'clock, we've got things to do, it's a Friday, um, we've got, we got a bunch of stuff to go through and, uh, it looks like, uh, we've got Lance's attention now, so we'd love to see if Lance can come back more often. And learn more. Hillary, love to check out all the projects you got going on. Let's schedule a call to talk about what's going on there. Maybe we can start helping you raise some capital for that, see what we can do to plug that along. But we're gonna, uh, we're gonna cut out today and get some things done. So we want to thank everybody with a prayer. Heavenly Father, we ask that you continue to bless and guide everyone in this room to go out and do the will of your son Jesus Christ. Give them the power, the strength, and the glory in your name. Amen.

Amen.

So everybody have a wonderful day.

Happy Mother's Day, anybody?

Yeah, Mother's Day.

Happy Mother's Day.

Send my mom some fish. So, oh my God, we don't send flowers in this family.

Fish.

You get fish for Mother's Day in this family.

Wow. With that, happy Mother's Day. No fish for Catherine for Mother's Day. No, that would kill me. Yeah, that would be bad.

We'll get her flowers.

I'll bring them to her