AI Live - Land Shark Mastermind

Hey, they're running 10 minutes behind, but they're on their way. I think you want to take your mic off so that we don't hear your conversation. There she is. Hi honey, how are you?

Sorry that I was a minute late, I was posting the video.

So proud of you. How's it going? Awesome.

Good.

Okay, um, okay, so try something.

Um, if you're logging on to mine—

yep, I'm Minisu.

If you're logging on to mine, you can see that I started like a forest sensing on Wynden and also did a field hunter on Wynden.

Okay, so they can see how we're doing on an aftertaste.

Cool. These are steps after not to put any gate block something on. That's what we're doing. Okay, let me go take this call real quick. Good morning, I'm very well hungry.

Catherine Bell: I am attempting to fry something. Okay, say so. Do you hear Tommy?

No, we don't.

We cannot.

Okay, good. Okay, that's a good thing. Okay, super excited to show you guys this.

We—

big, big week. We're in the middle of the getting the data center closed, which has taken months and months and months and months and months to do this whole thing. That was supposed to be done in December. Great determination, perseverance. In the meantime, still doing other deals. So Tommy has a project out in Windon that we're going to be doing, which I'm really excited about. In the meantime, do any of you have any deals that you're looking to run through Deal Hunter and want to go through this morning?

I found one. I mean, it's not— it's very niche, but there is an actual like airport hangar slash office in Scottsdale if we just want to look at it just to see.

Okay. So yes, get that ready. I for sure want to see that and I want Tommy to see it. I'm going to run you guys through the Wyndham one while Tommy wraps up this call, but get your deals ready. Again, the whole purpose is like to run through the deals, right? Like this is where we develop the muscle of getting really, really good at it. Like, and I feel like you're possibly prejudging whether the deal is good or not to run through it. And I don't want that. Like I want you to get the practice, like doing the reps, right? And the more we do the reps, the better we get at this.

So, But then is it a good thing if we're able to kind of prejudge a property, or do we just want the numbers just to tell us instead of our own instinct?

I want the numbers to tell you instead of your own instinct. Yeah, your instinct hasn't— you haven't done enough deals to have your instinct tell you. Let's do a walkthrough tomorrow or Thursday. Meet him at the property. No, I'm in Arizona. My God.

Okay.

Sorry. More hurdles to jump through. Super not fun. Okay, so let's go ahead and share this with you guys. So here's what I'd say for all of you, for your instinct, until you've done as many deals as Tommy and I have done, I invite you to consider your instinct is not finely tuned yet. And here's how I know. I've done thousands of deals and my instincts still aren't finely tuned because again, this is what I love about real estate is that every single deal can be done differently, right? If this was a cookie cutter, like this is the way it goes every single time and here's the right answer and here's the checkboxes. Then yes, but that's not real estate. Real estate and these deals and these businesses require you to think, require you to put teams together, require like so many different parts of you, um, that are just not finely tuned yet. And so that's why even we, after doing thousands of deals, still use this and more importantly than ever, like lean into it even heavier. So that it can help us really analyze the deals. Do the numbers. The numbers tell you what to do. Like, never once have you ever or will you ever say, do what your intuition says. No, I will always say, do the numbers and the numbers tell you what to do. That's it. Like, that's the answer. Okay, so property conversion analysis. So this is a really interesting property again. This is the entrepreneur inside of Tommy, but he also knows the area. So it's some land out in what's called Wenden, Arizona. But if you understand where it is, it's on this main road that goes right into the lake that's up there, a very, very, very busy lake. And so what is needed up there because again, he knows the area, is an actual outdoor recreation supply hub. So for fishing, for boating, for all the things, there's nothing out there like this. And so it's desperately needed again, right on the main road going in and out of the lake. So even if something happens to people while they're at the lake, they have— they don't have very far to go to actually get the, you know, whatever they need. for their, their trip. So it could be bait and tackle, hunting supplies, camping and outdoor goods. Uh, you can even rent side-by-side and UTVs. And then, um, you know, it's a convenience store, you know, some add-ons, things like that. So again, this is all desperately needed out there and not out there. So again, it's the, um, understanding you know, help enough people get what they want and you get what you want. Good morning, how are you? Pull up a chair, we started and, uh, just running through with the team. You can see them there and there will be more people joining us. Uh, you guys, we have guests which we're very excited about. Here, you guys can wave, say hello. There we go. Sorry about that. We should have brought some more chairs over.

I'm sorry.

How are you today?

Good.

Good.

Good.

Um, yes, worked and got a bunch of stuff caught up. So yeah, I think without kids, it, um, holidays are gone. Yeah. It's like, oh, I have a quiet day to get stuff done. So what we're doing is, um, Uh, we have built out several, uh, custom GPTs. One of them is Deal Hunter, uh, and the other one is, um, Free Estimates. And so the team here, everybody from literally California, Florida, Washington, like, they're— everybody's across the country, um, and people with lots of experience too. You got some college students here who are still in college learning how to do this, like genius. Uh, so we, there's a property out in Wendon, uh, that, uh, we're gonna be acquiring. And with that property, the thing that's needed is a bait and tackle shop, hunting, uh, camping and outdoor, and then side-by-side UTV rentals because it's the only road going in and out of this particular lake. So it's like, and it totally is. And so this ran through, so Tommy had a whole conversation with it about all of this. And then we were just starting to run through the actual property and what it's going to take to create this. So it literally generated the scope, the purpose, and then the lender's relevance to every single line item.

So, yeah, I even tried to slide some bullshit in there and it wouldn't let me.

So nice.

I put in there I wanted a pond and I wanted some fancier landscaping, whatnot.

Did you see this message? Jason?

No.

Uh, the buyer's wanting us to do a walkthrough with them tomorrow.

I'm not in Virginia.

I'm aware, so I don't know how you want to answer that.

Go to Virginia and walk it.

Me?

Them. I'm not going to go walk it. I don't need to walk it. This is the exact crap that I was talking about. So we need to just go ahead and throw the thing into arbitration, cancel the seller. Or cancel the buyer and move into, move into raising the $10 million because these guys are really not interested in doing a deal. So Jason has to come around to reality. I know he wants to get a big fat, you know, $100,000 paycheck for Arizona and the data center is in Virginia, period.

It's not going to happen.

Not going to shake your head, guys. Is it going to happen?

Okay, fast forward. Okay, so sources and uses. So, um, the estimated costs, and so that it literally goes through—

ready for this? Zoom down to the bottom. So I just did that. Hit that, hit the down button right there. Blast it right there and go up a little bit. So what I did was I went back through and I said just make assumptions. Like, I, I, I, I'm wanting to get details quick on this because we're looking at, you know, wanting to wanting to get going on it, it falls outside the criteria, right? It's under the acre, it's under a million, but it's part of the bigger plan. So it kind of does fall into that. Up a little bit more. I created these— what I'm telling you is I created the assumptions of all the rest of that. So you can see— keep going. Right here. Uh, no, keep going. A little bit more here. A little bit more.

And then, um, right here, Blake's a property.

Keep going. Okay, keep going. So right in here, I started getting the— to the, to the real numbers.

Do you want me to go up to number 1? Yeah, it's word 7.

Building number 1.

Look here.

So total project assumptions. Now you can see, all right, we've got our hard construction cost. Blake's got a deal. Blake, is it, is it queued up, brother?

It is queued up.

All right, give me a minute. So here's, here's kind of a rough overview. We'll go quick then, uh, Catherine stays on, on the slider. So going through the total assumptions I figured it was going to be about $334,000. Keep going down. They gave me a revised capital stack showing I got to get some, you know, owner buy-in, some SBA money. Then here's the assumed startup business costs. You can see for the inventory and all that, it broke it down and gave you a really good rough estimate of about $125,000 for everything inside the store to operate the store. Can go down. We tag that into the full capital stack. Now we're at $445,000, $446,000. This is why I said if we did an Opportunity Zone fund for $500,000, this falls into that, covers everything, and it legally ties into being able to do even operating costs to an extent. So roll through the rest of this right here. We're able to see that the assumptions come out to this. If we have a loan with these guys on the construction side at this, at these terms right here, we need to have a break-even from the store. This we need to get from the store, $3,200 a month in rent. Like, the store can make whatever it wants, but the store has to rent from us because we're keeping the dirt at least $3,200. What's that called? DSC. What? DSCR? You guys know sign language from—

You guys, Tommy's asking you questions. I didn't know.

I didn't know who you guys were talking to.

Talking to you.

Okay, repeat the question.

What's DSCR? The DSCR is the debt-to-service coverage ratio, right?

Nice girl. That we want to make at least $4,000 to $5,000 a month to cover that $3,200 a month, right? So keep going down. So, um, on an owner income model, basically saying that the base rent's $4,000, there's a business platform fee of, of $1,000, that gives us a $60,000 annual income. If we have $14,500 in expenses such as taxes, insurance, repairs, etc., Then what we're looking at is an NOI of about $45,000. And all we do is own the dirt. Like somebody else is running business. We built it, provided it, sold it. Let somebody else do it. Right. And so where that ends up with us is that over, over time, we're praying that their revenue is going to increase, which will then kick back into our increase on the property as well. So, um, setting up a lease-to-own on this, it shows right here that they can kind of buy their, buy their way into the business, also paying monthly payments. So now I doubled my income. So paying rent on the store and rent on the business, right? And so rent on rent means that I'm probably making closer to $8,500 a month. Let's see if it came up with that. Boom. Now here's the ramp-up structure for that. Showing that they're giving me rev share of 5%. Go right underneath there and begin to see how as it, as it builds out, they're going to buy out the company, but they're never going to buy the third. We're McDonald's, baby. So, um, what we end up with, looking at it from the, the strongest lender model underwriting version, go underneath that and you can see right there that we have a built-in DSCR 1.48 X, you guys, we're making like 48% on our money at that point, right? So going underneath that, looking at the key assumptions, um, we would have a very good opportunity to build out this capital stack, providing— here we go, here's where our investors would be able to make their money, um, showing that we have— go an arrow Yeah, it was a DSCR. That DSCR of 0.48 means that we're, we're basically able to keep 24% for us and give our investors 24%. So did y'all see how I figured that out? Thumbs up if we did, or was this a little too fast? Like, didn't catch it?

It was fast, but I, I'm also a very low level, so I have to go back and like, that's why I couldn't— I didn't hear your question because I'm looking at the numbers so intensely.

Well, and again, it's kind of like, oh, you guys probably aren't hearing me very well. How about this?

There we go. Is that better? Yes.

All right, so, um, so yeah, the, the point is, is that when we looked at all the numbers on this, it's pointing toward being— towards it being the, the correct deal. Like, if you're— we're over 40%. So I always said it's got to be 1/8 or $1 million or over 40%. And so this one's at 0.48, that's 48%. So there's a good chance for us to make real good money from that. You coming to join us? Awesome!

Oh yay, let me get you another. Look at you, I love it. Of course, which airport is the closest to You can in Virginia.

Also like to introduce you guys, so, um, I forgot— Catherine, Catherine, and Kelly, um, they were at an event we had last week or two weeks ago. Yeah, couple weeks ago, the one you guys hosted.

I think was it the dinner?

No, uh, Connection collab, and we, we talk. Okay. The one where we all kind of sat around and talking.

Oh, okay.

Right, right, right. And then that wonderful lady from the Philadelphia was here.

Oh yes.

Okay. And then, uh, um, leaving today from Phoenix to that area. So this property is, this property is in what's called Wenden, Arizona. It's on the pathway to, it's on the road to Lake Alamo. And so it's a, it's a well-known recreational fishing lake that's not as populated as like Lake Pleasant or Lake Roosevelt. So it's got a state park to it and stuff like that. So a lot of stuff there, but the thing that interests me most is any kind of, you know, resources for outdoors people.

Right.

There's a, there's an RV park north of there from like 10 miles, but you got to go down a dirt road and off into the backwoods somewhere to get to it, then come back out with a trailer and a boat and all that. Like, it can be kind of tricky unless you're staying there. And that's kind of the point, right? But if you're just wanting to go and enjoy the day, unless you're staying at the RV park, you have nowhere to stop and get bait prior to. Yeah. Yeah. You know, and so they do sell minnows if they have them. Stock up and put it up at, like I said, the state park, but not a lot happening there. Yeah, we also have the— we're getting an RV park just down the road from this, about 6 miles to the east of it. So for my purposes, I need something for my people to go to because I don't want to bake shop on my RV park, right? I have a luxury RV resort. I do not want— I do not want Barnes Noble coming over. Like, go to the store and get that, go use it, come back. I don't want that shit You know, so because I grew up in RV parks, you know, in RV resorts that had maid cleaning and things. Yeah, it's horrible. Yeah, it's not good for sales. No, no, it's not good for sales. Yeah. So that's, that's kind of that. All right. So, Blake, what do you got? Oh, Mr. Moore, you're here. It's so good.

So it was just an interesting deal that I want to run over. It is an airport hangar slash office in Scottsdale, Arizona.

So why are you trying to do this to me today, bro?

I, I can do something else.

I can—

this is awesome, Blake.

Come on, come on, Blake.

I don't get Tommy all riled up.

No, I love this.

So it's in Scottsdale, Arizona. It's currently being renovated. Yeah, so it has some conceptual photos of it, but it's on the lower end of the airport since, you know, Scottsdale's a smaller airport.

Yeah, outside of the airport.

That's just on the other side, you know.

That's so—

I know you guys are over here somewhere on the east side of it. So I'll go over the numbers. I won't go into too much detail with it, but it's 0.32 acres.

I got some newcomers here, so we want to— we want to get some—

we're gonna— you're gonna help educate them, Blake. So Blake is one of our college students, him and Katya. Have done an extraordinary job finding deals and learning how to analyze these. So here we go, Blake.

And so Blake has this deal. He went and grabbed— show him back where you got it.

So I was on CREXi and I was just looking at different properties. This was under a specialty. And essentially the way I did is I just viewed the flyer or its operating momentum. So it just kind of has some of the information about it, just some conceptual photos on the outside. And then it talks about the actual hangar with the office attached, and the office is 2 stories. And it's saying there's a fuel farm nearby for all the jets and planes that they have. The office floor plan that they have with the large hangar, second story, first story. And then it goes through different size planes that they can actually fit inside the hangar.

You can put 2 of them in there.

Yeah, it's, it's a pretty good size.

That's the 600 and the other one's the 350.

Okay, correct. And then it just talks about where it's at, so it's just down here on the lower lot off Helm Drive.

Taxi lane access and all that, it looks like. So, um, it's not direct access, but that's okay. Yeah, I mean, that's a, that's a nice little deal. So what we did was we built, we have what's called Deal Hunter by Land Shark. It's an AI model. And so what we do is Blake took that PDF, plugged it in there, and he's a prompt wizard. So it comes up really intricate. Prompts and he said, run this deal. So he said, and, and so it was built that way though.

Yeah, right.

Because we just want to get it understood. So go ahead, Blake, run it.

Yeah. So I just told it to run its deal and essentially it's just going to— I thought for less than a minute. So it comes back pretty quick and then just gives a quick verdict on it. Pretty much. This is a very unique deal. It's just going to be more of a higher yield or it's talking about triple and hangar/office lease. So it just runs over the numbers of it, talks about the square footage for the hangar, then also the offices, different door heights, the zoning of it, when it was supposed to be completed, which was last year. I'm trying to see if it still seems to be under completion. And then it's just talking about what we could underwrite it for, the vacancy, the NOI. And then we keep going through the different cap rates that we can have for its adjusted value because they were selling it. I'll have to look back for the price. I think I have to ask them.

We can ask it, but I think it might have— it might have assumed it too.

Yeah, it assumed between, I think, 5.5 to 6.5, right? So talks about just our requirements. For debt or how we're going to pay it off if we were going to go pay through debt. And then our LTV. So it's essentially kind of giving the comps for it, listing about other similar ones. 1.21 acres at 6.3, 5.22, a recent one at 3.69 for $17.5 million. So talks about the strengths: it's rare, it's functional, and there's the fuel farm with an office. But then the red flags: it's missing a lot of its actual deeper numbers that we can actually use for it, so that's something I have to call and ask them. It is specialty, and then it does have a luxury office added to it, and it's also not fully completed that we can confirm just yet. So I think just goes over the offer strategy that we can talk to the seller, and then it's going to go over the different funding paths that it comes up with. Yeah, it just gives me suggestions.

Perfect. I like it. Picasso. And then a due diligence checklist so that we can kind of start going through. And here's the cool part. Blake can actually copy that list and say, go do this, right, right in here. And then boom, it starts going and doing. So you want to do that? Go ahead. But we're not keeping you on to do that. So when you hit that button, bye.

But we'll come back.

We'll go talk to Amor.

Amor, you ready, honey?

I'm trying to talk to the fireman, right, the fireman, fire chief right now, so I'll be back in a minute.

I have, I have one I can show too if needed.

You did what?

Sorry, I didn't mean to interrupt. I have one to show as well if needed.

Okay, is it Sicily approved?

I— it's not like what?

It's not Sicily approved, but I can approve it with her.

Okay, and then I see Tina down there and, and Michael, so I want to say good morning everybody. They, they popped in on me after while we were running that deal.

Good morning.

Uh, so Amor, do you want, um, I want to get details on that, on that, um, this week if we want to get it, you know, if we want to get an offer on it. Um, I can go out and see it this weekend. Um, probably on Sunday.

Okay, I'm, uh, yeah, I'll let you know. I'm talking to him right now, so, oh yeah, is he active? Yeah, yeah, I just trying to make sure, you know, that he's still on board and all that. So I'll come back to you in a few minutes.

If you want to get on and call, let me know. We'll do it live. Okay, all right. And then Tina, welcome back. Do you have anything you want to bring to the table?

Good morning. I'm kind of just getting some estimates through the Land Shark and the free estimates right now on a property here in Des Moines, the one I was telling you about. And then we're looking at a couple of RV parks that I have the LOI agreement or not the LOI, I'm sorry, the NDA.

Okay.

Uh, that I'm signing so we can look at the, I think, at the North Carolina park and then the one in Arkansas that I had thrown in here earlier.

So I'm just waiting to get those back.

Was that Arkansas or was that Tennessee? Remember?

Um, well, the one they sent me was Arkansas, but the one that I'm looking, wanting to look at was, uh, North Carolina, I believe.

Right. Yeah. I was like, you know, being out there by Cape Cove and stuff like that, um, for that RV park out there in North Carolina, I, that one made more sense to me, but I, I thought we ran the numbers on that. Um, and it was, uh, and it was just a little conflated. So yeah.

Yep.

And I was wanting to see their, their actual expenses on it too. Um, the other property that I'm looking at right now was, uh, in New York and it was, um, it was a, an Airbnb home. Home that was sitting on a really pretty riverfront with a couple of cabins on it. And so I'm looking at that one now and getting all of their actual expenses. They kind of just gave us a rough idea of what's out there. So once I get some additional things put together, then I'll bring those on.

Perfect. How are we doing on Palisades, Kathy? Are you showing me something new?

I don't have anything new today, but I will tomorrow because I'm deep searching through all the, um, websites I was given yesterday, and I'm submitting the request for the information.

Okay. And then again, like, we can build out 40-foot, you know, 400-square-foot to 800-square-foot tiny homes there and qualify for that manufactured home, that mobile home thing. So I think we just need to have a meeting with them and discover what their position is, if that's going to be doable. And we just try to get 270 units for the, for that to go in there.

Okay.

You know, and can I go that route? Okay.

Sounds good.

Was there, you said you had something you were looking at.

Yes, it's in Yuma, Arizona, and it's, I can show you.

All right.

So really quick while she's doing that, I'll just catch you guys up on what's happening. So we've built out based on 20 years, 30 years of experience of investing and doing all the things. It took me 20 years to figure out as an investor, I like two things. I like to be the bank and I like to rent dirt. So to collapse timelines, to not have them like do a bazillion transactions like I have to figure two things out, we created an investor survey and it's based on everybody's individual personality and their, their personality, the things that are important to them, all of that. And Literally takes about 20 minutes to complete the survey. And at the end of the survey, we literally give you like, this is the type of investor you are. These are the type of deals that'll make your heart sing. And then it builds out a 90-day blueprint and then a 12-month blueprint. And so all of them have their investor survey. So they're finding deals that fit their investor survey profile. And then we help structure the team, the money, all the things to put it all together. So that's why no two deals look the same because they all are different types of investors.

And that's why when we were talking about the equity fund, we have Titan 23, which is our general real estate fund. And then we have opportunity zone funds that we're also going to be launching out, you know, as soon as like August 6th when that kicks in. Where did you tell me you had some experience with opportunity zones? Yeah, um, I'm currently— one of my clients is in the merchant cash advance for investors, basically, um, purchase of future receivables at a factor rate that he turns back to the investor. But that's most of my experience right now, and couple other different, uh, real estate private lending. Got it, got it. Yeah, so like That's basically what we're doing is they're reaching out, doing the homework, getting, doing all the due diligence and digging. We got to go through at least 100 properties, find 10 viables that will hopefully return us anywhere between 1 and 3 opportunities to actually offer up and go, right? So we work, we have a parameter of $1 million or, or, or an acre, and then propensity of 40% ROI or better. And so that's kind of our buy box. We don't— we're not— we're not— we're agnostic to any kind of vertical asset because we're just buying it, fixing it, flipping it, and it doesn't matter what it is. So utilizing AI to do that has been very helpful because— and then with the people that we have in here, they're able to, you know, go after cash-flowing properties, which is good for a certain class of investors. So I'm going after, you know, long-term deals, 3 to 5 years where we're going to be holding it and doing more of the waterfall. So depends on what, you know, what they're structuring. All right, Kathy, what do you got?

Okay. I have this property in Yuma, Arizona, and if you guys see this box right here, it's everything within Here.

Yeah.

Okay.

And so it's 84 total units and I think it was 13-something acres.

Yeah.

Yes.

And then here's when I ran the deal.

Okay. So it's, uh, identifying it as a conditional go, right? What the listing says is they want $7.5 million for 2 properties. I seen one box, so I might—

well, I don't know if they consider this, this, and this different.

Sidebar, see if it identifies what is 2.

Say that again.

Parcel. So just let's look at—

you're looking for more pictures?

Yeah, it shows us what, what they got going on. It's the hotel It's a, it's a hotel that's going to get straight to the ground.

And then there's these that have kitchens and everything.

These look like modular homes. Yeah.

So you know who your contact on this is, right? Who? Uh, you played, uh, uh, you played a, a, a movie director. With him the other day.

Roman. Roman.

Okay, so he lives in Yuma, so this is his backyard.

Yeah.

Okay, you got to get with him on this for sure. Okay, so, okay, so, and it said what? What did it say about all the stuff? Did you get, did you get any financials off of that?

No, no, no.

I just found this earlier this morning.

Got it.

Back of the napkin valuation.

Okay, so I know why these are the cash flows it has to have, right? So remember those NOI. So it's saying that unit per month price, that sounds about right. That unit per price, unit price. $600,000, $700,000 plus a month. So, and Roman would be able to validate that. Okay, conservative, I think. You know, on your debt test, it's showing me that in order to do this, if you got a 65% LTV with a $2.5 million down payment In order for you to get a DSCR score of 1.25, you'd have to have $572. I like to figure out what the debt service is for the whole damn asking price. So how far into it are you?

How, how far into this or into the property?

Oh, you're not too far in. You're good. No. So, okay, land upside is huge because it shows that there's 3 acres undeveloped with, uh, 4th Avenue frontage. So that area is growing so big, you could probably cut that out and sell it as a convenience store, gas station, something to that extent.

Okay.

Um, says that it's 100% lease. Okay, the Sharp Cash Offer says to offer 6.5. Why? Yeah, great seller financing structure. Maybe we can try to get them to do that. Do an earnout performance-based where you go, you know what, time out. You know what an earnout performance-based is, uh, Blake?

This is a new lesson.

I don't think so, no.

Yeah, but you're smart. Earn out performance-based. So I'm going to get— they want 7.5, I'm going to give them 4, and then earn out performance-based is the 3.5 that I'm going to give them after I, I've been there 12 months.

Got it.

Okay. Right, because what if I take over and then everybody moves out? You think I should give them their full asking price now?

No, because there's no tenants.

Exactly. We're gonna, we're gonna give them a sharp— yeah, because again, we bought it based on 100% leased out. Then when I buy it and they disappear, now what? Uh-oh, where'd my money go to get into the bank? So unless I have a plan of redoing something there, which I 100% do, like I can't buy those people out fast enough. Is that common to include that into deals? Like the seller will be open to that kind of structure? I— here's how I go at every deal. I'm going at every deal as if I'm— this is the last chance I've got and I go for the no. Yeah. Because then it's always, well, where do you want to be? Right. I'm not the kind of guy that's like, well, how much do you want for that? Right? Because then I got to wait for them to tell me the story of why it costs that much. I'm not— I'm going to be like, this is what I think I want to pay for it. What do you think?

Yeah.

And they go, no, I didn't mean to insult you. By all means, tell me why it's worth more. Tell me what you need. Because now then it gives me the leverage to know they're coming at an emotional level. Well, I need it to buy a car. Okay, I want the car. I'll go get the car. Give it to me for the price I want. I'll go get your car. Why would I do that? You know, and the reason is because for my investors to see the deal I structured, because everything has to be transparent. If I show my investors that I got a deal for 25%, they're 100% interested in investing with me because they're like, holy crap, that guy's smart. Yeah, let me give him my money and then make my money grow. Right. Would you give— I had a brother that was a professional poker player, another brother that was a professional gambler. You know the difference? Yeah. Yeah. Right? The one that played professional poker made money, drove fancy cars, lived in nice houses. The professional gambler, not so much. And they didn't play together. Right? And it's because the one, he could make magic tricks. The other one, he'd make money disappear. That's the only trick he knew. Right. So the, the, when dealing with investors, being a savvy, uh, being a savvy fund manager is showing how you structure the deal. The Art of the Deal by Donald Trump. And again, people like, oh, Donald Trump, go read his books, you'll know why, right? I'm lifelong Democrat, voted for Republican 3 times. You know which one I voted for 3 times? Donald Trump. That's it. Like, I still have all my thoughts and morals of what I thought, what I think the world could be. But when it came to running a company and a business, he figured it out. He knew how to do it. He knew how to structure deals. And so that's evident every day when you open the news and see what the guy's doing in the news. Like, you're like, holy shit, what's the guy going to do today? It's like watching the soap opera, you know, because you're like, who's he going to borrow? What country is he buying? Why are we buying that one? You know, so, but there's a structure to all of it.

Correct.

They've got an underlying issue. But much like when, when, uh, he walked in and I was doing the little single wide trailer with— I'm doing that literally so I don't have fishtails on my dad in my, in my luxury RV. I got a luxury RV even over there, right? So it's a bigger, it's a bigger play on a smaller you know, smaller thing on a bigger picture. So, um, all right, cool. Oh, does that hurt y'all's ears when I bang into that thing like that? Sorry if it is. Anyway, so one of the other things it does is it shows us how to find ways to structure it, uh, in funding paths from commercial banking, seller financing, private money, bridge refis. Um, we can come up with a, a, uh debt equity structure, maybe do some debt, some mezzanine, and cap stack it that way. So, um, uh, here's your list of stuff you need to ask them for if that's what you want to play in. And again, before you— I would say before you do anything, send this chat over to Roman. Do you have Roman's number? I can put you guys' chat together.

Yes.

Get together on this and say, Roman, what do you think? Is it worth it? He may know the corner.

Okay.

You could probably go, go eat tacos and, and, and drink some beers with the guy tonight and you guys structure the deal, right?

Yeah. So, okay. It's who you know, not what you know.

Right, right. So, all right, what do you got all the way at the bottom?

So, operations.

This is everything that I need to ask for— physical, legal, and then go/no-go thresholds, right?

So we got to figure out their revenue and their cash flow, stuff like that. So knowing where you got to be before you go and Yep, yep, yep, all that stuff's true. All right, looks good. So, and then in your next question it says, um, well, it, it doesn't ask you if you want to look at it for a higher and better use, but that's okay, we can break into that later. Let's find out, well, what else we can do with it, you know what I mean?

Okay, do you want me to dictate or do you want me to do that on my own?

Um, no, I want you to talk to Roman before you do anything.

Okay, okay, sounds good.

I'll send it to him now.

Perfect. Blake, you done?

Yes, it was done. Want to run back it over or run it back over?

Yeah, go ahead. You're not wearing the hot seat, uh, backdrop when you go.

Oh, hold on, I know I'm pulled up. I'll do it next time.

All right, do it next time.

All right, so it went through it. I essentially just sent everything and I just said go complete this list and find more information. So it just kind of talked about that this is a real aviation asset, doesn't have clear enough data to clarify it as a complete go. So a lot of things are dependent on the broker title and then also on the lender. So it was just saying it was asking certain things. A lot of the stuff is kind of open or has partial information. So a lot of it I just have to do a deeper dive on, as such as the asking price, the construction status that's still open, permits, it has a partial of them, the dues, the association and different fees that they have, the agreement with the Fuel Farm. A lot of these things are open, so I have to go back through and find that. It has what you can actually fit for aircraft size, the rent comps, and then different environmental phase, and then triggers. So different findings that we get are that the entitlements are real. So if everything's approved for it, the data that it has in that showing, the zoning that it is, its actual lot area, the height limits. Even though it talks about how the parcels may have changed with time. So, and then a sale signal nearby or actually within the project, and then just talks about what I need for it to become a closer go, but it's not a go just yet because we still need the price, the CO, the association dues, fuel rights, title, taxes, insurance, environmental exposure. And then just gives me a recommendation of what I should actually send to the broker.

Yeah, let's do a letter of interest to them, not a letter of intent. Ready? I would like to create a letter of interest to be able to send over to the listed broker. Put that together and include all of the things that are in the list that you provided above. We want to know the status of the build remodel and what, uh, what's going on with the, uh, construction, um, and why it's been on the market for 600 days. Because again, if it's been on the market that long because they've been under construction that long, that's too long to be under construction. Something broke for sure. So they, they might have construction loans that need assumption. They might have all kinds of fun stuff going on with that. So let that cook. Um, Catherine, go ahead and pull ours up. Amor, did you get a hold of, uh, Chief, uh, Chief Fire Extraordinaire by any chance? Um, go ahead and go over to the new conversation, or I did Student Titan 23. Fuck, that's right.

You want this one?

Yeah. So this is, um, I wanted to show this to Costa. Was, um, Catherine's, um, got this, uh, uh, general real estate fund that has an over-umbrellating PPA, uh, I mean PPM, that has, uh, Section, uh, 3A, um, disclosure docs in it. And so what I'm going to do is I'm going to ask you to kind of educate us on what that looks like. And give us a case, uh, give us a, a case study. So, ready? I'm going to dictate. I need to, uh, do some educating with, uh, investors and, uh, future fund managers about the, uh, way Avestor set up Titan 23. We want to look at Titan 23's, uh, PPM and how the 8 disclosures work to set up multiple different asset verticals. Can you give us a case study of this on top of an explanation for, for my audience?

So we talked to it. Yeah. Rather than typing, because when we type, we automatically condense what we're saying, and it needs as much context, and it captures way more than we realize when we're actually talking. And so it's better to actually ramble on than it is to type and miss a whole bunch of stuff that is actually very useful for it.

And Grok and Gemini and Claude and GPT are all different. One thing that, that what the one thing that this does, that GPT does that I haven't found that the others do is customer outreach. Like, I can actually— and I'm going to talk with you about it— I want to create a Club Scottsdale GPT because ChatGPT is becoming the new Google. Everybody's got GPT on the phone, right? Not everybody's using Claude because what is Claude? Well, it builds businesses. Is everybody an entrepreneur? No, no. So, you know, Grok— what is Grok? It's a conspiracy theorist. Like, is everybody a conspiracy theorist? No, just people on X. They all use Grok. So again, it's like, it, it, it really— it's more like a soda can type of thing. Like, what, what do you like? It's not, it's not the can itself that, that we're talking about. The can is AI. It's what's in the can. People like Coke, people like Pepsi, people like Dr Pepper. There's some people like ginger ale, right? So that's what, you know, all these tools, these models are. And then within them, what are the benefits to it? Groq is great at providing you with very analytical stuff, but not probably not really good at creating like videos and pictures, whereas Claude's great at that. Can also do code, and that's cool. But it's unable to reach out to customers. And then what ChatGPT does with it, it can actually reach out to customers because again, everybody's using it, everybody has it.

Yeah.

So, um, but this is what— this is what it came up with, that, uh, uh, within the Type 1 and 3 structure, um, let's see, go down a little bit more. So What the, uh, A3 disclosure doc does is it creates the, uh, ability to customize our, our, for example, our offer, our offering. Most of the time the PBM has the offering in it, right? But in ours, the PBM says go to the A3 disclosure doc for the offering. And so when you go to an A3 disclosure doc for this, it's covered by that PBM then we can be very explicit, like we're going to do a 70/30 waterfall with an 8% prep. Um, uh, there's going to be a participation on our side of the, of the 30%, but we're also doing 5% of, um, uh, management fee. We're going to do a $50,000 due diligence cost, $100,000 acquisition fee, and break all that down within that so that, right, in that A3, we're able to do all that because then it, it makes it simpler for the investor to know, okay, that's just the path I'm on. And not only that, but if we have a vertical that does go south, the entire fund's not, you know, infected by whatever happened on a vertical that failed. So scroll a little bit here. It shows some of the deals here. It shows like a real estate debt structure down a little bit. There you go.

This way.

So yeah, so the real estate debt structure, for example, is where we basically write out the terms as though we're the bank. They're signing a bank loan and then our investors are getting, are getting a portion of that, of that interest only payment, if you will.

Yeah.

So if we set up an interest only payment with, say, a home builder, we're doing this right now with a custom home builder. They're taking a million dollar loan with us. We're providing them that million-dollar loan at 12%, but we're paying our investors a guaranteed contractual 8%. Yep. Right. And we're holding that 4% as that process. Now the builder also paid us, uh, uh, 2% on the, uh, on the loan as part of the closing costs. So we took a 2%, you know, origination fee. So, um, That way our investors didn't take that hit. We had it come from the actual builder. So an equity syndication, it's set up in a way where we can do like a waterfall for instead of a— it'd be more like a GP/LP situation where we GP with the builder. He needs $1 million. We get people to invest with us. Instead of them getting interest only, what we're going to do is we're going to take the million dollars, we're going to hold that on the house for the 18 months. And then when we sell it, we're going to give them 70/30 from the proceeds. And so if we sold it for, say we sold it for $3 million and our net on it was a million, they will return their capital, their million, but then we're also going to give them $700,000 of the million that we got. And then at that point, they'll, they'll have, you know, like a, a 1 point— I think that's like a 1.7x multiplier, so somewhere around 40 or 30, 35 to 45% IRR. The beautiful thing is, is that I don't have to figure out that math. I don't have to contact the CPA. I don't have to, I don't have to wrangle anybody to give me this information because I can get this to do it for me. When we built it, we taught it these are the metrics we need to have, these are the metrics we need to know. These are the things we need to understand in order for our investors to get documents that they will be able to consume and then invest with us, right? And we can do that with them. So a little bit further down, you'll see that it always pulls a disclaimer out for us and says, we've got to always— we're always telling people as they use this, you're not advised. We're just giving information. You do what you want with it, don't talk to anybody. And so, um, if you're using a GPD that doesn't have displays like that, I'm curious if you wrote it. Like, again, they might be asking, but these are, these are the things that we create. So I've created— we've created almost all of these over here on the side. Yeah. Um, this is for our event, this is for teaching people about opportunity zones. These are sponsored by lawyers. This helps build these. This one is the investor survey, which we'd love to give you guys to go and take and check out.

Yep.

This one is the one we're discussing right now. Free Estimates is the one that— if you scroll down, I like to give an example of it. Is it the rental? Keep going down. It's going to be the rental. We do a lot of damn deals. So, so, dang it, click rental up there. Click, type in— because apparently cut off right there. And then the Luxury Rental Deal Analysis property, uh, so nope, that's in Deal Hunter. I want the one that had the—

yeah, the bathroom, kitchen and bath. Yeah, yeah, you sure it wasn't in here?

I know it's not. Because, uh, yeah, I know the one you're looking for. So do kitchen up there. Just do kitchen.

Okay.

And it'll be the first one that comes up right there. Luxury kitchen.

This one.

Yeah.

This is really cool.

So a lot of the times when we have deal owners, they're out looking at deals and they're like, I want a fix and flip, or I want to buy and hold and do a rehab. Okay, great. Well, do you know how much it's going to cost you? Um, kinda. I got to call a contractor. I got to get this guy. I got to get that guy. And then in a month, you'll have all the information and answers you want.

Right.

So we did this luxury rental deal analysis and I ran it and I'm like, this guy's asking a lot of money for a house that has really old cabinets. If you scroll through the pictures real quick, um, Catherine, it was like—

you want me to open them?

Yeah. So like you can see, it's like 2001 floor cabinets or 2001, um, and so countertops, like this is all old. This isn't a luxury house. This is a big house in a nice area. So I'm like, all right, cool. So I said, I would like to do a remodel of the kitchen and bath just to give an understanding. Here's zip code. And I said, so go ahead and put this together real quick. And then boom. So it goes through and it identifies everything from the kitchen and the master bath that like what it looked like. And then it starts giving me numbers and prices on everything. Each, each time going along describing exactly what it's going to need to put in and where and why.

Yeah.

Getting down to the bottom of the, of the list, it'll show us like total price, uh, of, of the project around $244,000, going down a little bit more. Now we're going to see— like, go up, go up, show them the good part first. Like, it gives hiring tips and, and, and, and final notes, things you might want to consider. I said go ahead and create the virtual picture of that so that I understand what you're, you know, what you're claiming you're going to do now.

And, and then there's the design I created. And all of this was in a total span of about 5 minutes. Like, think about how long it takes to find a contractor, get them out there to give a bid, like, time, right? Yeah, we do it.

But the cool part about this is it only took us about 5 minutes. Yeah. If you go back to it, the other part is, is that as a contractor, the helpful part for me is the fact that when I used it, now I'm like, now I need it to come out with my Arizona ROC contractor's approved contract.

Yeah.

And put in all the other forms. Boom, done.

And then the estimate, it takes about 42 days to complete this whole thing.

Yeah. And so it built everything. I can go in and put my info in. I can tell it about my info. But this is a legal contract that covers everything. So now, like, that's done too. I don't even need a secretary. Yeah. So, and, and all, all together, it timestamps how long it takes for it to do certain things, but I think all together the timestamps total like 5 minutes. Yeah, it's ridiculous. So, um, that's what we do is we build these things out for folks to kind of help them improve their jobs because we use these to improve our jobs. That's what we teach people to do. All right, Amor, did, did Fire Marshal Bill show up or what?

No, he just said, uh, do we want to do a Zoom, uh, or a call or meet in person? I said let's do a Zoom first and maybe be able to you know, come see it this weekend or whatever. How's it going back to me now?

All right, that'll work. Thank you so much. Okay, is tomorrow, um, Blake's got, uh, a little bit of work to do on, on the airport park thing, um, and Cicely, uh, if there's any— and Tina, if there's anything you guys want to jump into, find it, bring it. We love to hear from you guys. We appreciate your support. Uh, you guys are always amazing as usual.

So thank you.

Um, other than that, anybody else got anything?

No, everybody had to go.

All right, I'll wrap it up with prayer. Everybody bow your heads. Heavenly Father, we thank you for the blessing of this day, the blessing to go out, do the things that make your world beautiful and great. We ask that you continue to provide us with the strength and courage to and, and abilities to go out and do your son's will. In his name we pray. Amen.

Amen.

All right, everybody, thanks everyone. 3, 3 o'clock today for, for the, uh