AI Live - Land Shark Mastermind

Was I imagining things? Probably imagining. Um, what's going— did you talk to those guys any further about the, the multifamily in Glendale?

I have talked to Ralph a few times, and I just let him know what we spoke about. And then you were talking— you said someone was out of town, but when she got back, you wanted her to get me like intake me on how to use Deal Hunter so I can write, use AI to write a presentation basically for them to understand why their land's overvalued and what the opportunities are moving forward.

Right. So that would be Katya and Catherine and Katya work together really good. So that's who we've got to get you to onboard with on that side of it. Um, and then, um, yeah, that's, that's, that's about it on that.

Um, I, I can find deals to look at. Like, I'm— yeah, absolutely, if you guys want.

Um, what was, um, what was the, uh, what was the conversation like with the, uh, the Bolton family place guys?

They were— I mean, I'm like friends with Ralph. He wants to partner with me on other deals and stuff, and it's his brother that's selling it, so he, he totally gets it. He's like, I, I understand that too, and he, he, he's on board with me.

Okay. Okay, cool.

And because it's overvalued in that way, like, we're not— and we've talked to other developers and different stuff. I'm like, I don't see— it's not like a situation where I'm like worried someone else is gonna run and pick it up.

Yeah, nobody's— yeah, again, somebody that wants to pay double the price, go ahead.

Like, yeah, so we just need to get our ducks in a row and then figure out our meeting with the city. And once things get closer to January, we'll know more about the opportunity zone, and I think it's just going to take time.

Well, the best thing I can do is tell you now to go ahead and deep dive a little bit on, on who to get ahold of at Glendale and talk to them about the opportunities there.

Okay.

Yeah, we can definitely do that.

Okay.

Mm-hmm.

Glenn, so figure out who to talk to at the city.

Right, right.

Okay.

All right.

And then, uh, what else? I've got these, uh, I got— I get these calls every day. About, um, projects and stuff like that. I just got one right now, literally as I'm sitting here. Um, pardon me, why did I do that?

Oh, yesterday you were saying you don't do single-family homes, but Catherine, you do like luxury single-family homes, right?

Right.

So you're— are you still looking for deals like that?

For sure.

And then, okay, so, uh, there's a Rancho Saguaro luxury value-add teardown site. Is that something you would want to look at?

Absolutely.

Okay.

No, uh, keep in mind though that, um, if it's got more than one person on the daisy chain, They're hard to, uh, close.

I don't think so. This is a wholesaler buddy that I have. He doesn't daisy chain.

Okay, good. Yeah, as long as there's only one person between us and seller, we're good.

Okay.

And we like to work with the seller because what we want to do is we want to set it up where we do delayed payments after closing because we don't want to raise the HUD on the, on the actual property. that make sense? Especially if we're knocking it down. Tired of paying $1.8 million for— it's stupid to pay $1.8 million for a property when I can show $1.1 on paper and then turn around and pay them the other $700,000 after the fact.

So, Weatherfield.

Yeah, I just got—

you want me to share my screen?

Sure, go ahead.

Uh, sorry, give me a second. I have a lot going on with my computer right now. Okay, wait. Jesus. Okay, here we are. Okay. Oops. Can— is it hearing me? Okay, it's doing allow while visiting the site. Yeah, do that.

That just allows the microphone, uh, to be used so you can talk to it.

Okay, perfect. Scottsdale, Arizona 85254. What is going on? Okay, let me— while it's thinking, I'm gonna— says This is a value-add or teardown property listed for $875,000. The projected ARV is $2.8 million. Can you please run this deal? Is it— it didn't show up, huh?

The address showed up.

Not— yeah, but her talking didn't show up. So try hitting the microphone again. Okay.

This property is listed as a value-add or teardown site. The asking price is $875,000. And the projected ARV is $2.8 million. Please run this deal.

Freaking—

it doesn't, it doesn't like anything but that address.

Okay.

Should I just put run this deal as is?

There you go.

Just type in run this deal.

ChatGPT has been doing some interesting additions and stuff. Yesterday when working with my client, we had some interesting blips.

I, the, like a week or 2 ago, it was like everything was going good with my GPT, and then it was like, download the desktop version. So I did, and that was terrible. Nothing was working.

Well, because you're used to using the, the, the URL version, you're, you're used to using the browser version, and the browser version is cool, but it doesn't work like the desktop version. I use, I use, I use the app. I use the app. Uh-huh.

The desktop version wouldn't even load properly, though. Like, it was just a whole mess.

I think it's because, again, if you're, if you're used to using it, it acts differently. It's just like when I went from trying to use an Android to an Apple. Apple just felt totally foreign and just not even worth trying because it was so difficult. You know, but after, after an extended amount of time of using it, it was like, oh, it ain't too bad. I threw up my shared screen while yours is still thinking. I loaded 2 sets of blueprints in here, and you can see that these—

Do you want me to stop sharing?

No.

Okay.

Just toggle back and forth, I think.

Okay.

This says it found some of the same information. It says current list price is $897,000. The listing explicitly markets it as a fixer and says remodel or rebuild. It is currently shown as under contract, so the play may be backup position fallout rather than clean first position. I think under contract is like with the wholesaler.

Yeah, it's direct. If it's direct to seller.

I do not like this as a conventional rental and I only like it as a flip if you can either push the ARV to roughly $1.3 million range or get acquisition price down. Recent sales in this zip code show renovation— renovated or stronger condition homes in the general size band reaching well above $1 million for— okay.

What did— what was the price they were, um, they wanted?

$870,000. Wait, let me double check. $875,000. And then their, their ARVs are always like the freaking highest top possible.

Yeah, because they got to build that margin so that you feel like you're getting a deal.

Yeah, 2.8 million is what they were saying.

This is also an 8 in the 85254, which is not the Cactus Corridor.

Okay, it says Rancho Amaro.

Yeah, so the big thing over there is that it's got a decent-sized lot. Let's see what size lot it's got.

Is that going to be in here?

It could be.

Well, Zillow usually shows the size of the lots.

Yeah, but I'm saying deal hunter should have told us too.

So, Luke, um, one of the things like what Ashley has done is she has, uh, developed relationships with other wholesalers, you know. Um, I know that you did your, um, investor profile, so that's one of the things that you could be doing. Is starting to find and develop relationships with other wholesalers so that they can send you properties if that's for the particular asset class that fits your investor profile. And then you can bring them here and then we can analyze them and figure out, you know, what the next steps are to move forward with those type of projects. That's what actually is done.

So that you're—

because the whole goal is if you're here every day, we'd love for you to be actually bringing deals so that we can help you analyze them and structure them and actually get deals done versus just—

And inside of that, Luke actually filled out, um, to do his— to be an apprentice here. With us. So, Luke, I haven't been able to get back to your email, but I do want you to make an appointment on my calendar to get together. So I'll send you the— I'll send you the link to— or maybe Catherine has it to send you to book on my calendar with it. So a lot of cool pictures.

It's 0.32 acres, so not even half an acre.

Yeah, not— it's only a third of an acre, so it's about 9,000 or 10,000 square feet. And so, um, and in that area you're not going to get— like, you can ask it to, to show you comps of new builds and see what it says.

Mm-hmm.

That's what I would do. I'd say, give me a new build price.

Okay.

I know what new builds are.

Too many things going on here. Where'd it go?

And Luke, you're in what part of the country are you in? You're in Pennsylvania?

Yeah, I'm in PA.

Awesome. That's where Hoy's at, isn't it, Catherine?

I didn't see anything.

Yep.

I don't know.

Luke, I just put Tommy's calendar in the chat for you.

Thank you.

Oh, there it is. But so Let me see if my— if it will let me dictate now. What would the cost be to tear down and rebuild?

Oh no, don't ask it to do that. Ask it what, um, what new builds are comping out for over there, because Deal Hunter is not a, not a general contractor. It'll give you some good prices, but it won't be close.

Okay, sorry. So what are new builds selling for in that area? What'd you say? Sorry.

Yep, that's what you want.

Okay, can you please tell me what new builds are selling for in this area?

And see what that pops up on you. I'm going to, uh, look at this plan set real quick while we're waiting for that to dig. I'm going to open up my, uh, my VPT. I was in free estimates this morning. And I got this, uh, I get this email sent over to me this morning for grading and drainage and, and, you know, preliminary residence on, on stuff. So, um, and so I put the, I put the plans in there and it analyzed them. For whatever reason, they're not wanting to show up. Doesn't make any sense. Here they are right here. So these blueprints right here, threw those in there, told it to cook on them. It cooked on them, came back and said the first pass review shows several items worth coordinating before These are treated as construction ready. The architectural set is not a construction ready set. This is a progress set, not for construction, clearly written on there somewhere. The finished floor elevations need to be coordinated carefully. The civil plans establish different building elevations, including a, uh, an LF, which is the, uh, floor height of The floor height is 2268 on the main entrance, 2267 on the garage, and 2257 on the basement. So these are all, you know, pay attention to numbers. The basement drainage waterproofing is a major review item because there's like a large atrium gate drain wall opening and rock header wall on there. And so they've got a lot of info on there about the drainage system, but not a lot about the— how that's going to affect the house. Casita garage site plan coordination should be verified. Pool site coordination, exterior patio, fire department access should be confirmed, site walls, etc. So, guy sent this over to me. He's like, you know, here, look at these. So, Looked at them. These are the concerns that I have. I can ask it to give me a price if I want to. Start with a, uh, civil groundwork price, and then the house. So, so that's both. I want to get to work on that.

Okay, this— my GPT finished figuring that out. I'm gonna—

Your turn. Pop it up. Let's see. So new builds in the 8, 8,525, blah blah blah.

Yes, this— and this changes the deal materially. I found several ground-up 2025 builds in the same market.

Mm-hmm.

That sold for $3 million to $4 million.

But they're all on lots twice the size, and the house is twice the size.

Yep. So all 3 were built in 2025.

Cut the prices in half because you got to cut the house in half and the lot in half. So cut the house and the lot in half, you end up at Like 1.5, 1.8, 1.5, right? Mm-hmm.

So the comp I really like for Weathersfield, there is a currently brand new Thomas James home built much closer geographically. It's 4-bedroom, 4.5-bath on a 2.2-acre lot with a pool and a new construction. Currently offered at $2.9 million.

Right.

This property is roughly 0.34 acres, so it actually has a somewhat larger lot. The subject itself is currently offered at $897,000. That is strong signal that the highest and best use may be teardown new build.

Right.

And tear it down and rebuild it back with like 4,200 square foot.

Mm-hmm.

Right.

Mm-hmm.

So tell it to run that deal.

What do you want me to ask it? Sorry.

So tell it to, to now look at tearing it down and rebuilding it.

For 4,200 square feet.

Yeah, to do 4,200 square feet, it'll give you roundabout numbers, but not—

Isn't this what that is saying? What I would build is 3,800 to 4,200, 4-bedroom, 5-bath with office, 3-car garage, resort-style pool, strong indoor-outdoor living. Finish size up to 400— 4,200 square feet.

Yep.

My preliminary new build ARV for a well-executed 4,000 square foot product on this lot, conservative $2.7 million to $2.8 million base case. What does that mean? Best— is that supposed to say best case?

Base case? Base case? No, the base, like, um, your, your base meaning like from here to here. Conservative is, is like the, the bare minimum. Your base is like your middle, and your strong is your, is your like aggressive, if you will.

I see, I see, I see. Okay, so base case is 2.9 to 3.1 million. How the land math gets interesting. Purchase for $850,000, demo $40,000 to $60,000, new build $1.2 million, pool and landscaping, architecture, finance, total basis before sale cost approximately $2.5 million. So it's not a good deal. If you exit at $3 million, that's too skinny after brokerage and closing costs.

Yep.

Jeez.

Now, now you're getting the picture, right? Now you're able to see like, oh, maybe I don't want to do that crazy shit.

It gets you excited for a second and then it's like, yeah, no, no, it's called do the numbers, let the numbers tell you what to do, right?

That's what it comes down to.

If they— if someone were to hold that, like a situation where they keep— they don't like— kind of like a seller finance, but they don't get paid until after it sells.

Yeah, that's the best way to do it because then you're, you're, you're able to wait for, you know, your You're delaying the payment, which gives you the opportunity to, to make money off that money until it's time to pay them that money. Does that make sense?

Yeah.

Okay. Yeah, it's kind of how it breaks down on that. Um, but yeah, no, it's good that you went through that and kind of looked at that. We were like, oh, okay, I see. And this is why we want to have contact with those sellers too.

Mm-hmm.

You know, because in those cases, um, it's gonna be like, hey, you know, we need, we need to do a little financing of this, uh, uh, of this property. Let's finance this up a little bit. So a little bit of owner financing on there, help everybody out, get it all done still, you know.

Mm-hmm. What about, uh, Off-market Camelback Canyon Estates oversized 1/2-acre flip or new build.

Yeah, let's take a look at that too. Run that. Okay, 1/2 acre.

That's what I— yeah, I think that's what it says.

Interesting. So is it half? Is it 0.5 or 1.5?

It says 1/2, but maybe when we run it, it will be more clear. Yeah, actually is. Okay, let's see. I'm gonna try to talk to it this time because it's just faster and I need to get better at that. Okay, new chat. Deal Hunter. Am I still sharing?

Yeah.

Oh shoot.

Okay.

Yeah, we see everything.

Okay. 4405 East Palo Verde Drive in Phoenix, Arizona 85018. This property is Off-market wholesale priced at $1,525,000. It's rec— from what we see here, it's recommended for a flip or new build. Run this deal.

And I see, Luke, you got your appointment and it just came into my email. So it'll pop up my calendar and let me know when you're— when we're meeting. Let's see. And then your survey should be emailed to you in response to that email you sent to me. Let's see, I'm going to reforward it.

Thank you.

I've seen this one before. How much do they want on this one?

Or 1.525.

Yeah, they're way too priced, way too high priced on this one.

It says, yeah, half acre lot.

Yeah, it's only a half acre lot. They need to be down. You can see the price, see that price thing right there, like how it's doing that like that. It needs to be back down around what it was around 2020.

Mm-hmm.

Right about there.

Yep.

Not there.

And then let's see what this says. Worth pursuing, but as a high-end flip first, new build second.

Yeah. So if the wholesale price is at $155,000, you could do— because you can get a good DSCR rate in there. And I would ask the person, I'd be like, why is there $50,000? You know, how are you justifying going from $475,000 to $525,000? What is that, a $50,000 increase for just buying it in May? You got $50,000 in equity all of a sudden? Like, no, that's not how it works.

I bet that one's going to be harder to sell too because it's listed that way on Zillow.

Yeah. Oh, yeah. I'd go in there and offer him— I'd offer him for like $490 a square foot. It's right now he's like at 5-something or 6-something. It's way too high.

So, so it says best flip, best case, base case flip underwriting, purchase at $1.5, rehab at $325 Acquisition closing cost $40K. Financing to carry the loan is $130,000. Selling cost at 6%. A 7 to 10 month project.

Yep.

If you sell it for $2.4, you'd make $236,000. And are these projections usually pretty close?

Or are there things you're probably missing? No, you gotta get it. It's, it's, you gave it that information.

Mm-hmm.

You gave it that information. So now you gotta, now you gotta ask it to verify and justify that information.

Okay.

Right?

Uh-huh.

So this is where, like, people are like, oh, well, GPT gave me the wrong info. No. If you give it that info, it's gonna use that info.

Mm-hmm. So I, yeah, I need to double-check everything, make sure the comps are good, deep dive on comps and everything.

No, you, you ask, you ask, uh, Deal Hunter to, to do it. You don't.

Yeah, you say verify the comps on this and show me, show me the stats. Okay, you don't have to go do it.

Should I ask that then?

Yeah.

Can you please verify the comps on this property?

For ARV?

For ARV.

Send it. And so, yeah, that's how that's going to work. Luke, for whatever reason, your email is bouncing back to me.

Recent closed sales, same micro market, similar lot house size and remodeled condition. Then I'll separate strong comps from weaker supporting comps so that we don't overstate value.

Very good. There you go. Yeah, Luke, do you have another email address that I can send to? At luke.crooks— luke.crooks998@gmail.com, is that, is that correct?

Yeah, that should be good. I can send you another one though if that one's not working. I'm not sure why it wouldn't be.

Yeah, it just keeps bouncing back. I've had 6 of them bounce back in 10 minutes. 5 minutes, whatever, how long I've been doing it right here.

I put one in the message.

So what's it saying actually?

It says he found some good decent comps. The square footage applied to 2,788 square feet at $680 a square foot would leave you at $1.9 million, and at $949 a square foot, $2.6. But okay, so $850 to $950 a square foot is possible, but I would not automatically give the subject best case because Villa Venture archived it. They represent— this represents the upper end of the finished spectrum. My ARV conclusion: conservative $2.3 million, best case scenario $2.6 million. I would not underwrite the flip with $2.6 million today. What matters a lot at a $1.5 million acquisition, if we use $2.5 million ARV With rehab, carrying, acquisition cost, the profit would be around $283K.

Yep. And that's top, top of market, right?

Mm-hmm.

So this is why you got to get them to negotiate.

Mm-hmm. Revised by recommendation, a realistic target would be $1.4 million. 1.5 only if rehab bids are tight and you are confident the finished product commands 2.5.

And it says right there that the half-acre lot is bigger than the other 3/4-acre lots or 1/3-acre lots.

Uh-huh. But that provides value.

Right. That's upside. That's not— don't put that value in the ARV.

Right.

Right. I'd rather treat the extra dirt as upside than bake all of it into the ARV.

Yeah.

I would underwrite this deal at 2.4 ARV, stress it at 2.3, and treat it at 2.6 as an upside. The next thing I do before putting hard money down is compare the actual subject interior photos. Room by room, that will tell us whether this needs $2.5 remodeling or $500K luxury transformation, and that will decide whether $1.5 million is a deal or a trap.

Right. And then what you would do is you, you would use free estimates to go take those pictures, pull them in and say, okay, remodel this house. Boom.

Mm-hmm. I haven't got to play around with free estimates yet.

Yeah. Well, this thing's got a folder of photos. It's super easy. It's literally upload 20 photos, tell it the zip code and say, I want a high-end luxury remodel. Give me a price in this zip code. Boom. And it'll, it'll spit out all the info you need.

And this guy, the wholesaler, he has like a Google Docs where it shows you the address. And then it has a bunch of photos of the property that they are like new and they just took. They're not usually ones you'll see like on the market listing or anything. They're like personal photos they went and walked and took.

So that's helpful. Yeah, for whatever reason, I think my Titan Impact email's not working because I just tried to send Luke To that new email, and that's not going through either. Okay, keeps bouncing back. Um, but I did send— I got sent mail to other people this morning, so it's crazy. I sent it to you, Sam DeBose.

Did it give you a bounce-back error code when it did that?

Uh-huh. Failure code 4489.

So Tommy's email address is bouncing for some reason.

And let me just double-check to make sure it's not, you know, it's not on Luke's side. Give me a second.

I don't know if it's something on our end.

Well, like I said, I was able to, I was able to send out Couple other emails to other people with no bounce back.

Yeah, here, I'm sending this to you with Luke's email address.

I just sent him—

reply back to him unless it's external. Six weeks ago, we bought the cheapest house we could find, and right now it still looks like an explosion.

Hmm. The heck happened?

This happened. This happened.

Yeah, I got— I'm getting emails. I don't know why it's doing it. Because I just sent to myself and sent out for myself, and no issues there. Let's see, the attachment is too big for Gmail to accept it. That's what it is.

Okay, so it's not— nothing's wrong with our accounts.

Nope. It's just that the, the file that I'm trying to send to him is too large. And it is a Google Drive.

Yeah, that's usually why Google forces us to send it as an actual link to a Google attachment. And given that Luke has a Gmail address, that typically works.

Okay.

Formats my brain dump into my Google Doc without any of my filler words or stutters. Before I started walking outside to screen my videos because I saw the Stanford study that says it. Increases creativity by 60%.

Number 5. All right, well, Luke, what I'll do is when we get on that call on Monday, I'll go ahead and make sure that, uh, we go over your, your presentation on that day.

Um, sound good?

Yeah, that's fine.

Perfect. Awesome. Well, does anybody else have any other deals to run or anything like that? If not, I want to pull— I'm going to pull that other project up. We're going to see what free estimates came back with.

Yeah, I don't have anything, so I'd say let's do that.

All right, the free estimate shows here, um, we already went through all the things inside that plan. So I told her, I said, go look at the civil groundwork and the house vertical construction. This is the planning level, is a— this is a, uh, uh, on a 1-acre lot.

Mhm.

And currently the current home price is, you know, to build something out there between $350 and $650 a square foot. With more complex luxury North Scottsdale work moving higher because of the, the amount of work coming this way. So it's been going up over year over year at a 4.2% rate. So civil groundworks budgets, you can see here that just to do the groundwork based on what the blueprint showed would run a 1 point— about around a $1.4 million price tag. When we look at the house vertical construction side of it, like having to do the actual build, the total construction cost on that place is going to be about $13 million. That's to build it.

Okay.

So, um, the current budget, looking at groundwork and then, and then what the vertical construction is going to run, it's about a $15 to $16 million house. Um, so the reason why we're— um, and, and let me see if I can show you the house real quick, because you're like, at $15 million, like, wait, what, what, what's going on there? Let me show you what the house looks like. That way there's a little better understanding. What did I do with this house? House plans. Wants me to do a septic tank on this thing for him, and I'm like, great, put a road in. Um, but this is, this is the basement right here underneath. This is the, the basement floor plan. Man cave, theater, unfinished basement part over there, safe room, powder room. Going down, this is first floor, main floor. Coming in, you got the dog room, laundry room, dining room, foyer, flex playroom, bedroom 1 or bedroom 2, bedroom 3, family room, lounge, all that stuff. And then out here you got the second floor, which is where you got the primary bedroom with a balcony, office off of the, off of the bedroom. Large bathroom. They need a wet room in here, like, and two toilets. Like I again, like you have all this room. Why have one toilet? There's two asses living in this bedroom, I'm sure. Right? So there's a his closet, her closet. That means there's two booties in there. So why not have a spot for that second booty to go do duty over there? Right, like, I don't want to smell. Anyway, we got a Pokémon room, David's office. I'm assuming his is David. Then you got rooms, bedrooms 4 and 5 up there. So you got a big garage basically for probably a, uh, um, RV garage. Looks like— pretty sure that'd be an RV garage. Then you got the casita off of the house cut And it's connected with a terrace. So it's all connected right there. I don't have any elevation sets for this yet, but again, inside of here, the guest suite itself has, has 3 bedrooms with a living room. So total on this property, about 9 bedrooms and about 14 bathrooms, and they need a septic tank. How big do you think the septic tank is going to need to be?

Um, super big.

Super big. Like, so super big it's going to be ridiculous super big. So yeah, but pre-estimates gives me the opportunity to see that and do it, right? It's crazy.

So there must be like some sort of formula Right?

Yeah, we have worksheets that help us understand the calculation rates on drilling septic tanks, for sure. We use those quite extensively looking at stuff, and so yeah. Let's see, I don't have anything else on On deals today, we've got some deals we got to go look at.

When you say go look at, like physically go look?

A couple of them, yeah. Work-wise, for construction-wise. So we're gonna go do those. Oh, remember yesterday we were looking at? Let me pull that back up. We were looking at that one that was the. The wrap. Remember we were looking at the wrap?

Yeah.

Let me see. Let's pull the wrap back up. So on that wrap deal, where we went— where we ended up with that yesterday Catherine, was that we would sell the house with $330,000 down and they would have to pay $6,000 a month. So the spread that we're going to get for selling it on a wrap is going to be about $3,355 monthly. Okay, so at $3,355 a month, what we're going to do then is, like I said, we can say, you know, upfront cash plus this plus this. You know, where we end up is that, um, uh, I said, why don't we look at selling the note after 6 months? We'll let it season and then sell it on the secondary market. Because it's got an ARM. They love those ARMs. So we wrote the wrap note payment and see what it looks like here. And then underlying subject debt, put that there. And then we have, you know, how much we're making right there. And that cash flow spread shows us we're going to be making about $20,000 over that 6 months.

Okay.

So basically it would be like making $40,000 a year if we had it for the whole year. But wrapping this thing up, the wrap balance is going to be about $766,000, which means the underlying loan balance is going to be about, uh, $294,000 because we're going to be making payments still on that, right?

Mm-hmm.

So when we sell it, if we sold it at an 8% discount, which means that We're selling it for the, the face value at about 92% to 88%. So we're selling the value of the, the, the, the balance, okay, with a discount. So that gross discount lands right there. And after we pay off that first mortgage, we get $410,000 to $308,000. Plus then you go back and you add in your $330,000 and your $20,000. These are your gross totals of what you'll get off the sale of the house, and that is if you sold it for the purchase price of 1.1. If you sold it at 1.1, your gross profit— your gross profit, it'll be net basically because the 330 comes directly to you, the 220 comes directly to you, and then the net Note sale proceeds come directly to you. So it says it's a gross profit, but it's really a net profit, $730,000 to $760,000 out of $1.1 million. And your total, your total $330,000 was paid off. So if you do the math on that, And the other, the other cool part is you don't really have capital gains on that. You'd sell the note and then, and then that 1031 is super— like, it's just got to go into another note. So, but if you're at 730 plus your 330, That gives you close to your, your million point 5, right? So because you're, you're, uh, or no, your primary note was $300,000, so the rest of all of that is fees. Does that make sense? Are you tracking?

Uh, I mean, I need you to send this to me so that I can It's taken me a minute to wrap my head around. I mean, I, I get the concept of it.

Yeah, I think we definitely need to get Eddie on the phone and talk to Eddie about it, you know?

Yeah. Yeah, it— I mean, it's an interesting concept. Like, I saw the video that you sent. Or that guy was describing it to that other guy, right? I mean, it's one of the things I love about real estate is the creativeness of it, right?

No, it definitely, it definitely provides the ability to move through a deal Keep some money on the table and make some money in the back. That's kind of the, the point right there.

Right.

Yeah, I definitely want to dig in so I can fully comprehend.

All the numbers.

I think you can send me that chat, right?

Yeah, I can do that. All right, sent. No, it didn't. Try again.

So do you understand? Um, I, I— Ashley, um, probably not Luke yet, but do you understand what Tommy was just talking about with the whole wrap?

Any questions about wraps?

I do understand wraps and I want to do one. I'm just like, it's almost like I think it would be easier to execute a wrap if I'm selling it, but there's deals where like I'm projecting, like I'm trying to convince the seller to sell to me on a wrap. So like educating and then the process of finding an attorney To write up all the documents the right way.

You want them to sell it to you on sub-2, not sell it on wrap to you. You want them to sell it to you on a sub-2, right?

Well, like the one I was looking at the other day, it was a VA loan. They had it listed as an assumption, but then the guy changed his mind, blah blah blah. And so I looked into it more, and what I Thought I figured out was that with a VA loan, it needed to be a contract for deed.

Right. And that's okay. And that's— it's kind of like a substitute thing as well. We're getting this house by paying off the owner $20,000. They don't want to sell. They don't want to deal with the sale of it at all. And so we're acquiring all the equity for about $20,000. And, and it's somebody who's just getting rid of the property. We're getting the property with about $500,000 or $700,000 in equity, and we're trying to get the most equity from it, either create a cash-flowing income from it or get the most equity from it. That's what Catherine and I have been trying to figure out. Do we want to get all the equity out of the property and just go reinvest it, or do we want to get some of the equity out and build a cash flow from it?

Yeah.

Right.

I want to build a cash flow from it. I'm giving Catherine the option to figure out how she wants to do it.

Mm-hmm.

You know?

That's really cool that you guys found that. Did, were they open to the idea of that already, or did you kind of educate them on the possibilities?

Educating them on it because the, the issue is the fact that they just want out. They can't, they, they don't want the hassle of selling the house. So it's literally like, okay, it's got a mortgage on it, but Let's just put it into a land trust. We'll do, we'll take care of it from there. And by having it in the trust, no one knows who's making the payment because the payment's coming from the trust every time. You know what I mean? And so as long as the trust is making the payment, that's all that matters. Right?

Yeah. Yeah, I feel I hear different opinions on that all the time. But I know it's done. Yeah, you know. So my kiddos just got here, so I'm gonna mute.

No worries, we're gonna wrap it up. So anybody else got anything else they want to do? If not, we're, we're already passing. Let's say a quick prayer. Heavenly Father, we thank you for the blessing of this day and the blessing in this life. We ask that you continue to bless and guide us So that we may always do your will. In your name we pray. Amen. Catherine, that link is in the chat right there. You can see. You see that?

Yeah.

Got it.

All right. Well, we'll wrap it up. See everybody tomorrow. It's Friday tomorrow. So everybody tune in and see what's going on.

Beautiful.

All right, have a good day, everyone.

Okay, thank you.

Bye.