AI Live - Land Shark Mastermind

Whenever it's the right time.

No, I get that. I need— I'm thinking I want to get somebody to start these damn things though. And then, oh, the other thing, we got to get the webinar created for— that's something we didn't do in podcast prep. I wanted— we need to get the webinar created for the free estimates webinar.

Okay.

Yeah, yeah. And then Saturday, I've got— we've got this, uh, this project we're looking at doing with, um, Rachel and her that's coming, right?

Yeah. Yeah, you need to find out specifically what time.

Saturday.

Yeah.

Yeah, hers, her thing starts. I believe it's central at 2 p.m. Central, and we're gonna do. I'm gonna do. I'm gonna say we, but it's gonna be me. Are gonna do. Me's gonna do.

Me's—

Me's gonna do 15, 10 to 15 minute demo of Deal Hunter, of free estimates, and of the Land Shark Investor Survey. And so I'm talking, it's a toss-up between Land Shark Investor Survey and the OZ Wizard 2.0. I think we might do OZ Wizard 2.0 because I got some good news for you.

Okay.

I was going to tell you yesterday, but we were, we were off on tangents and I didn't have a full, like, runway to, to fly it, you know, fly this idea and then land this plane. So we're going to talk on that a little bit. I got a property to run. Do you have one to run? And what do we got as far as people coming in the room right now? I'm mobile because I'm going to be going all over the place today looking at property. We're Catherine already knows, but nobody else does. But we went and toured Camelbak, one Camelbak place yesterday. Freaking amazing. I'm not a city boy, but what'd you say?

I said we didn't do any videos. Whoops.

Well, I wanted to kind of— yeah, because I didn't know if they'd allow us, but they're going to reach back out to us and be like, hey, can we come back and re-tour it and do videos this time? And then go that way. But I didn't really want to do videos of it unless we were going to really go there, you know what I mean?

Yeah.

And so I do want to talk more about that because I'll be honest with you, um, even with, even with all the amenities, the $1,600 unit that just was the room with— that could be an office for $1,600. It's a room, it's an office with a bed. In it, you know what I mean?

Yeah.

So, you know, we can have another house somewhere else, but that is prime real estate for an office like that, you know what I mean?

Yep.

So, but living there though, I, I'll be honest with you, which one was your favorite?

Uh, it would have to be the biggest one.

Hold on, hold on.

All right, yeah, never mind. I was going to guess that too. I was going to say, guess mine now.

I don't know. They all began to blur together for me.

So the one that was my favorite was the one that was facing the east, had the north-south view, and it was the 2-bedroom, basically a step-down version of the larger one, but it was on the backside of the building. It literally had the 180-degree panoramic view of the north, of the east side of it. You could see Camelback, you could see all the way up and down Central.

Yeah, I'm— they're all a blur for me.

That one was my favorite. That one was my favorite. So anyway, but before we went there, I went to visit Mr. Brett Siglin over at Finnemore. By the way, great building, amazing location, hard as hell to figure out because maybe I'm blonde. But, um, they have the whole 6th floor of a building down there, um, in Scottsdale. And so you, like I said, beautiful view, great, great location. Hung out with Brett for about an hour and we discussed all kinds of opportunity zone stuff. And so what I'm doing, and this is my contribution, and this is what I told Brett. So let me tell you what we talked about. We talked about doing Opportunity Zones PPMs through Avestor.

Mm-hmm.

And so Brett and I talked about the fact that he wants $20,000. And he's like, let me explain why. He's like, in 2018, I did my first one and I charged $100,000 for that PPM. He's like, and I did 300 since then. And since then, my last one, I, I charged $35,000. And I felt like I was, I was getting robbed because of the fact that it was the same people that I charged $100K to in the beginning.

Right.

He's like, I don't know why I keep getting discounted. He's like, and he's like, to scale, I have to try to work with I have to try to work with the associates because Brett's actually a partner. He's been doing it for 25 years. As an associate, he has associates underneath him. They start figuring out A plus B and they decide they're going to go see you later. And it's pointless, useless for him to do anything.

Mm-hmm.

So because teaching these guys his tricks and tips, Is really kicking his ass. So that's where I seen the pain point. I said, Brett, let's do this. I said, how about if every time you do one, you're doing it out of, out of the spot of expert inside of that, we're using AI to figure it all out. He's like, well, show me how I do that. He uses AI a little bit, ChatGPT. He never seen program project folder work before. He was like, holy crap, that, that's pretty cool. Then I showed him how GPT worked and I just broke into it a little bit. He's like, yeah, tell me, I can see where the value is. I said, okay, great. I says, now understand this. I says, I think it's just a point of you being a lawyer and not knowing how to scale. He's like, well, what do you mean? And I says, well, because if you look at it this way, Avestor's typical family or typical, uh, client is a family office or a fam— a, a try-to-be family office. These are people that have a net worth and they want to invest their capital gains in their own project, but they don't want to— they want to raise capital for their project. They don't want to just invest their money into a project, right? And so they're starting up a fund that they can get other people to invest into with them so they can be an operator. And he's like, okay, I see that. I'm like, so that's probably a good 60% of the clientele on Avester. And I was like, so from that standpoint, all they can afford is a $10K PPM. And so if you don't compete with the guy who's doing the standard PPM, then they're not going to do an opportunity zone and it'll be fucking pointless, useless.

Mm-hmm.

And he's like, okay. And I says, okay, so let's figure this out. I says, there is a standard template to a PPM. People want to do an RV park in an opportunity zone, it's going to be the same for them as it would be for somebody who wants to do a multifamily. Right? And he's like, well, no, not really. And I said, explain that. And he says, well, he's like, you're gonna have entity structures that are gonna be different because one is gonna maybe have a development company, a sponsor, and then the fund. And those are the 3 LLCs. Whereas in the multifamily, you're gonna have a property management company that has to be a completely different structure than a development company. And then you got the other 2 underneath that. He's like, and then not only that, he's like, but if you end up building the multifamily, you might have a development company. That's 4 entities. He's like, so every time you add an entity to this, it creates a whole new batch of documents, disclosures, and all the work that goes into that.

Right.

And he says, Sanjay doesn't understand. That's why I need to charge $20,000 per fund. And I go, yeah, but not every fund is going to be that, right? And he's like, well, I don't know. You know, and he's like— I was like, so here's the, here's the pitch. You come up with a standard 2-entity fund and then you just charge $5K per entity.

Yeah.

And he's like, oh, I didn't think about that. I'm like, yeah, we call it, you know, you have OZ Standard PPM, that's $10 grand. I said, but if you get an OZ Plus, uh, PPM, the OZ Plus PPM is one that has Uh, uh, 2 or 3 more entities to it.

Right.

And it's like, okay. And then I'm like, and then for the guys that are not, not those small groups, these are guys that are doing big deals and they're transferring above $5 million, they're, they're raising more than $5 million, then you charge the 1%. And I'm like, because you're an attorney drawing it up, you can definitely charge 1%. If it's a $5 million, you can charge $50K. Right. I was like, so that would be what we would call the, the, you know, OZ Premium PPM. So, and he's like, oh, I see it now. And I'm like, yeah, so at that point you get the, you get the, the agents and the bots on AI to do the standard PPMs, and you already know those are good. And so you're just boilerplating those and then come over here and focus on Managing the entity creation and then actually creating the larger, you know, larger firms that are $50K, those are the ones that he needs to physically do and allow the AI to assist instead of the other way around.

Right.

And he's like, I get it now. And I'm like, okay, great. So here's my contribution. I said, I'm going to give you, Brett Siglin, 40 hours of education in AI. and help you set up your projects and stuff like that if you work with us at Avesta on doing it, being the $10K guy and not charging $20K because you're just, you're a specialist. And he's like, I can do that. And I'm like, okay, great. So that's on the schedule. So I'm going to draw, I'm going to have him draw up a contract for us to sign that I'm giving him 40 hours of work. On training. I'm going to build out all these tools for him to utilize, and he's going to promise to work with us and Sanjay at $10K per, per PPM. And to start, I'm going to push Sanjay to have 2 years. I want 2 years of exclusivity rights.

Okay.

Meaning that, like, we're the only ones that can do the OZ stuff. We'll work with other people, but they have to co-GP with us.

What do you mean they have to co-GP with us?

Every OZ fund that starts through Avestor has to co-GP with us.

Okay.

So then that helps them be successful because they're being co— like, we are literally partnering with them on the deals that making sure that they're 100% in compliance.

And stay in compliance and all the stuff, and they're good to go. And then that way we know And this is what I told— this is what I got, uh, Brett to understand. I can go tell Sanjay and, and, and update Sanjay on all the AI stuff, and he can take that to his SEC attorneys, and I won't see shit. I said, I, I'm— it's not that I don't trust Sanjay, but why would he stay attached to me if I gave him tools to go work with?

Right, right.

And so at that point, he's able to go and work with all these other all these other attorneys and be like, here, here's the rules, here's the game, play by these rules, play by these games, and you're good to go.

Mm-hmm.

You know, and he's like, oh yeah, I get it. And so then we played the 7 streams of income, and one of them that we came up with was that, um, we need— I, I'm trying to get him convinced to brand it as the Fenimore brand, and we want Opportunity Zone Wizard GPT to become like the due diligence Create a tool, and what we do is we do underwriting packages for Opportunity Zones at about $5K per property or project.

Okay, yeah.

So, we're going to start advertising that Centimore is doing Opportunity Zone due diligence and Opportunity Zone due diligence and packages, underwriting packages starting at $5K. And people can, uh, do that or sign up to be inside of our project, um, and our program, because I'm going to start Ozzy Wizard Mastermind as a way to just collect people, and then they get the free, free stuff like Land Shark Mastermind. But it's literally Ozzy Mastermind, 7 Streams of Income, and Land Shark Mastermind. All those masterminds are one mastermind.

Okay.

It's what, it's what we do every day. And so it just, everybody has their own focus, kind of like Pace has his owners, you know, owners club and this club and that club. He's got the Sub-2 club and the Gator club. You know, he's got all these club, you know, club things. Okay, great. You know, we're gonna, we're gonna be in a playhouse, then you need clubs. But since we're not in a playhouse, we actually have the ability to have like cohorts That are 7 Stream cohort, Opportunity Zone cohort, right? Um, Land Chart cohort, Free Estimates cohort, Contractor Scale-Up cohort.

Awesome.

We just had Jude join us.

Dude, how we doing, buddy?

Hey, good morning.

Good morning.

I'm pretty good. How about you guys?

Good.

It's been a super busy morning already, so Excited.

Yes. So, so have I. I just, just had the same. So I was sort of late logging in. I just want to see, you know, where you guys were, you know, what, what the topics were for today. I actually had a question, Catherine.

Yeah.

Um, you know, you had that oil fund.

Yep.

What, what— and I, I think you had mentioned a few calls back that it would be, it would be coming back. Is that still in the works?

Yep.

Yeah, it is. What are you looking for?

Well, to invest in it if I could.

So it's for accredited investors and it's a minimum of $50,000.

Oh, yeah. Okay. So I commit the minimum, but I think on paper I'm not accredited.

Well, hold on a minute now. How do we know you're not accredited?

Well, the $200K per year, I don't make that.

Do you have $1 million in net worth that excludes your personal residence?

I believe so, yeah.

Then you're—

then you're an accredited investor.

Oh, that is—

It's an either/or, right? Like, they gave multiple tiers.

Well, there's an either/or and then an either/or and an or. So you— I don't know if most people— most people may not know this either— is inside of the $250,000— actually, it's $200,000, not $250,000. It's $200,000 single, $300,000 married.

Right.

And then, and then the, um, the, the million-dollar net worth outside of your personal residence is step 2. Step 3 is being a certified or an accredited Certified or licensed advisor. So if you're a CPA, if you are a— if you're a Series 63 or a Series 65, if you— if you're bond— a broker-dealer, any of the licensures inside of the finance world, if you're any of those, you get to be— you get to be accredited investor that way as well. Okay.

Okay. That sounds good. I may meet the— The middle one, I think, being, uh, yeah, with my, my current.

So, yeah, so we're, um, I need to know ASAP if you want to do this because, uh, just there's so many moving parts right now and, uh, I need to plan accordingly. So if you could get back to me.

Yeah.

You want to make sure you get your PFS Completed and certified is basically what you're saying.

Okay, okay, I got you. Get the PFS. Okay.

Yeah, get that certified, and you can get that certified on Fiverr. But if you already work with a CPA, then work with them, of course. But if it's just a one-time thing, you make sure that you have receipts. They can— they've got Fractional CPAs that'll that'll certify you as well. So, but yeah, you you just get that in accredited investor the other way too. And a lot of people don't know this is the way that I got into it was I was a fund manager, and so I started a fund. I was a co-DP, and the fund itself became accredited based on the fact that it had other accredited investors inside of it. It was like more of a LLC formed specifically to invest with, and I fit under that category. And we, you know, all my partners were accredited, not me. That was the only way I got in. So, but then after years of accumulating property and equipment, now I meet it based on that because I don't show Uncle Sam that I make anywhere near $200,000.

Right, right, right.

Legally.

I'm broke.

Yes, I, I understand how that works. Yes, yes. Yeah. Okay, okay. Well, I appreciate that. But, um, did Catherine— you mentioned there's a timeline to, to this?

Yeah, we're, um, we're— the deadline is, uh, November 15th to get invested. So, um—

Oh, really?

Yeah, because we have to have enough time To get all the money in, to get into the wells, like all the things.

Okay. November 15th. Yeah, I gotta mention that because my brother was looking at that as well. He wants to give in. You probably met him, Chris. He was on the call, I think, a couple days ago.

I didn't realize he was your brother. That's cool.

Oh, yeah. I— yeah, we're trying to— we're trying to build something here. So, you know.

I love that.

Yeah.

How awesome is that?

Yeah. So I got him, uh, introduced to your, your call and, um, I want him to look at the AI tools that you guys, um, also offer and, you know, see how we could build a business and, and have it run in the background automatically. So.

So awesome.

Yeah, I appreciate it. And, and again, it's all because of, uh, meeting you guys on Friday Night Lights. So.

I love that.

Great.

Yeah.

So awesome. Well, cool. Again, you never know how, how all the pieces come together. And I love the whole, you know, changing legacy of families when families come together to invest. Like, that's— that makes my heart sing.

Oh, yeah. Oh, yeah. That's, that's, that's what I'm trying to do as well. It's, it's, uh, 6 of us. And, you know, we all want to build a family office sort of thing.

So that's awesome. Well, we're— what we've been doing behind the scenes is we're actually building out virtual family offices because typically a family office, the family needs to have a net worth of around $50 million or more. And so we found that there's definitely a need. For anywhere upward of $1 million and then growing it from there. So we've been building that out. We're getting ready to launch that pretty soon. So we're really excited about that.

Oh, yeah, that sounds good.

Okay. So, yeah, we'll let you know when we can demo it for you and show you guys.

Okay. Thank you.

Absolutely. This is exciting.

Yay!

Changing family legacies forever.

Oh, yes. Oh, yes. You guys have been really instrumental in helping me to think that way as well. Yay!

Well, there's a couple. So there's a couple books for you to write. This one's called The Lifestyle Investor. I'm literally in the middle of it right now. This guy's really interesting to learn from. He's going through some hard lessons that he learned. around investing and how his— I forget what he calls it. I call it the conditions of satisfaction for investing in every deal, like how to underwrite and do the due diligence.

Mm-hmm.

So anyway, you might find that really interesting. The other one that I really like is Mike Michalowicz's Profit First. I already gave you the homework of Who Not How.

Yes, yes.

Um, so yeah, those are some more. I never stop learning and reading and, you know, all the things. So every morning at, um, 6:30 AM, my husky is gonna be a really smart investor because he's listening.

Oh yeah, that's cool.

Yeah, thanks for all that information. I really appreciate it.

Of course.

Yeah, we're just trying to get to where we could take advantage of your, you know, the offerings that you have on your website on the— what is it— on the Science and Impact Group.

Trying to get my deal up that I ran by yesterday. We were out, like I said, we went and looked at One Camelback, um, was pretty amazing, uh, location. But in that area, it's Biltmore area, and there was a house. It looks like it was a burn down. And this thing's super struggling today. Let's see how the browser is working. Everything's super slow.

It's Friday.

Mhm.

Yeah, we gotta like pay for more speed. It's kind of ridiculous.

Um, highest tier.

Holy super slow. Anyway, when I was driving around over there, there was a very large house that looked like it had been a burn down or something to that extent. So I was very curious to what it was and what it was about, etc. So I'm looking to see it's under my other account. So. Working from multiple accounts, it gets kind of tricky to remember where everything is at. And so if you don't know, you can actually search for your conversations when you have too many of them and you don't label them properly and right away using that, using that, uh, I call it the Sherlock Holmes, but it's a magnifying glass. A search, search button. So I'll hit that search button and be able to figure stuff out. So, oh, it gave me some questions based on, based on, uh, information it, it already required. So, um, uh, it's a beautiful house. Here's some pictures of it. But when I seen it, it's severely dilapidated. Okay, like severely dilapidated. But built in 1936, four bed four bath per the last listing. Last time sold was 2023 for about 2.4 million. Current automated estimate is about 2.65, so not much has changed in 2 years except the fact that it's destroyed. So other comparable properties show that the price is around there. Preliminary value framework shows that the downside is on the 2.3 to the 2.9. So One of the big things is that even though it has like a certain zoning, this area will not because of the date and it's historic. You know, it's got a historic status. It doesn't necessarily mean it's got the designation, but if you did get the designation, you could definitely get money to rehab it. So, I love that you put these new scales. I love that it put these new scales in there, and because then it allows me to copy that scenario and begin to build from there. Other things, um, like, you know, white papers, documents, etc. So down here, um, it doesn't recognize that the property may have, uh, some issues on it. Um, so, uh, it says what's my intended strategy, and it gives me options. Um, Uh, it even asks like, I'm going to need some funding partners. Um, so by needing some funding partners, it's probably going to make some suggestions, and these are going to be people that we work with inside of the Land Shark Mastermind. So if you're, you know, if you're a broker or a P&L, um, you can come in here and be a part of that. Um, Inside of the fact that when it puts the strategy together, it's going to make that suggestion, you know. So, uh, I think it's pretty cool as to all the new things that, that Deal Hunter's doing. Um, and so the only major concern is that, um, it will not, um, It will not be this way when we get the plugin finished, and it'll end up charging people for using it, and I don't necessarily want to do that either.

So, um, okay.

Um, do you, uh, Catherine, do you want to let Laura know 11:45 will work today? To go look at Rio Verde. Um, so again, inside of like the fact that these, uh, this particular property, um—

He's asking for the address.

Um, okay, ready?

Yeah.

Oh, god dang. I'm like, why does we didn't have the crap? Uh, I know I have it on my GPT somewhere. Let me go pull the deal and look at it.

Well, you keep— let me log into yours. You keep looking through.

Well, I got it right here. Ready? 14327 East Desert Vista Trail.

14327. Okay, got it. Okay, go ahead.

Wait, wait, wait, wait, wait. I was like, that doesn't sound right, and it was not. I think it's just that we look at a lot of properties in Rio Verde. I just picked the one that said Rio Verde, and that's not— that's not going to work. Uh, address 26707 North 141st. Street, Scottsdale. Got that?

Yep.

So over on this one where it's got some questions for me and stuff, it's pretty cool. It, you know, even gives an outreach button, but it says, you know, like the week's acquisition checklist. It provides me a checklist to work on inside of the conversation, so when it gets done, it checks off and it was done. So it asks, uh, I was out driving for dollars, I don't know the owner. I know the owner. Uh, realtor or wholesaler bought it, or I have access. So it's going to build my next move based on my answer, again eliminating the need for me to know the right answer or know the right question. As long as I know based on some parameters what to work from, that'll be helpful. Dang it, my throat is killing me today. Anyway, do you have yours to pull up, Catherine?

Um, yes.

You do have a deal, right?

I do.

Okay. Rachel in here? Because I, I want to talk to her about doing an LOI for that property in, in Sarasota.

Uh, Rachel is not here.

Okay, well, I really don't—

Busy with her event. That's what she's been saying this whole time.

Say again?

She's busy getting ready for her event tomorrow.

Oh, true story.

Okay, so—

Which reminds me, I do need to make some Zoom call links today. So that she will have links to tap on so that we can do that presentation for her tomorrow. So I'll be busy doing that.

Okay, so this is 12 acres in Litchfield Road and Peoria Avenue. So let me share.

Is where?

Litchfield Road and Peoria Avenue.

I'm very familiar with that spot.

Okay, so it gave me these. Run this deal. So, 12 acres. So commercial land development pad site subdivision. So secondary strategy, entitle, subdivide, and sell improved commercial pads to end users or developers. So the current asking price is $5.6 million, which is $10 a square foot. Uh, gross land area, 538,000 square feet. Current zone or advertised zoning is C-2. Okay, so executive deal snapshot. Here's all the things. Preliminary investment decision. This is interesting commercial development site, but I would not purchase it at the advertised price without Providing pad site demand, utilities-approved access, and net developable area. So the proximity to residential neighborhoods, industrial employers, and major roads creates potential demand for neighborhood retail and services. But proximity alone does not establish profitability development. The opportunity to acquire a large commercial Zone track, secure approvals, create marketable commercial pads, and capture the difference between the bulk land and the finished pad pricing. The main risk: spending $5.6 million on land before discovering that infrastructure, drainage restriction, access, and weak tenant demand consumes the development margin. So property and location. So here's the land here. This is the site. And then you can see there's houses. Not sure what this is. We'll have to look at that.

It's a— that's a logistics center. It looks like I'm trying to get on the map to see where it's at. Exactly. Because the— it's not showing you anything south of Peoria. Which is like, that's odd, right?

Uh, let me see.

So, and, and out in that area, depending on what the entitlements are, you're, you're ranging everywhere between $5 and, and $25 per square foot. So $10 a square foot's a good—

So I'm emailing this, the listing, to you. So here you go.

Yeah, that's okay.

Because it's not an actual address.

No, I know, I know how to find it though on the map. You just go to, go to Peoria.

So highest potential development strategies, neighborhood retail and service center, finished pad subdivision. Retail or medical and professional services. So development economics, subdivision, 8 acres.

Because right across the street from it is what's called Bumstead. Not Homestead, Bumstead. Okay.

What's that mean?

Well, it, it is actually an old It's an old town from back in the day. Um, it was a, it was a farming community. Like, when I was— when I say back in the day, this is Old Litchfield, but the name of the town, what it was called, was Bumstead. Uh, and it's, uh, just an old farming community right there, but it's directly across the street from the area you're talking about. And then with the 12 acres right there, uh, the, uh—

You want to share your screen?

Um, yeah, or you can pull it up on Google Maps, but I'll pull it up on the Google Maps. It shows this, uh, um, did it pull? Yeah, so this this dirt this dirt lot right here is the one that we're looking at, right? So and then when you look at these houses back here, these houses are not they're not crap houses. They're they're decent houses, big lots, big houses, fancy driveways, etc., right? So and then what you have over here, this is the bus barn. This is where the bus drivers all come. It's the Desert Unified Support. Services facility, and so then there's a school, or I mean a construction company over here called United Construction. That's right here, but I'm not sure if that's all United too. It might be. So material handlers, industrial. Okay, over here you're gonna have. This is a our. Water treatment, or yeah, that's water treatment. Some places out here do salt because the salt water comes out of the ground. You got Morton plant that does that. But anyway, this guy down here, he's got this big house right here. This area is this is not a house. This is actually Builders First Choice. This is their company headquarters right here. And then this is their lot right back here. So I believe, but mostly industrial over in this area. So to that extent, this corner, this lot, not going to be good for houses. Could be a good build to rent if they would like let it go that way, but I doubt that they will because of the location to the airstrip. And so That airport's right there. So, and flight pattern, they come up and they go straight over this area right here. There's like a about a two-mile swath of land right here that is what they call over under the flight zone. So development is very picky, very picky, very sticky. But Could be a good spot for the, for the Boots and Buckles Barn.

Is it an opportunity zone area?

No, no, none of these houses are in that low to moderate income. Not at all. So this whole area over here is very affluent. So, and then again, it's all getting built out in the, uh, what we call the old, uh, these were old, um, rose, uh, where they grew roses.

Oh wow.

Right here. These would have been where they grew roses back in the day. So I think all the rose fields are gone. They used to have a bunch of them out here. So anyway, good area to develop commercially for sure. So anyway, enough of my screen. Who else got a deal?

Tina, I see you talking, but I can't hear you. I said not me today. I'm just listening in today.

Awesome.

You look like you're outside enjoying somewhere beautiful. I am actually on my deck. It's just gorgeous. Fall, the colors are changing. Yeah. Beautiful.

Yes.

Yes, please.

Well, Catherine's gonna be out of town all next week. It might just be me by myself running the podcast. Catherine's gonna be in Canada for a whole week doing Thanksgiving.

Yep. It's Canadian Thanksgiving on Monday. Some very— I was talking to Deanna about that.

Yeah.

I said, what? She said, have some, have some pumpkin pie in honor of the Canadian Thanksgiving. So I was curious what the tradition— traditional meal was for Canada, if it was different than, you know, in the United States. It sounds like it's very similar. It's the same.

Yeah.

Ours is just earlier. Yeah. So it's interesting because of the whole— you guys have Black Friday. But in Canada, which is interesting and just doesn't really make sense to me, your Black Friday makes more sense to me, is Canadians, their biggest shopping day is called Boxing Day and it's the very day after Christmas. I'm like—

Boxing?

It's called Boxing Day.

Boxing, like boxers in a boxing ring? Oh.

No, packing up your boxes.

No, you go to the store and beat each other up for the best—

No.

That's what I was told. Yeah, the one you put on the gloves and you beat the hell out of each other to get out of it.

No, not Americans. Canadians.

No, also, also for the British, um, the sort of English British, uh, Commonwealth people, we call it Boxing Day too.

Hmm, Boxing Day too. Yeah, yeah.

No, no, Boxing Day is the day after Christmas.

Yep.

Oh.

Okay.

It's interesting. And it doesn't mean that we're beating each other up. That's, that's an American thing.

It should. It should.

Not a Canadian thing.

So I'm just saying it might, it might be cool.

Sorry. Sorry.

Oh, so sorry. Sorry. Sorry. I hit you in the face. Sorry.

We bump into each other. Oh, so sorry.

Sorry. Sorry.

Sorry.

So, so Tommy, just let you know I posted a—

oh yeah, I grabbed the link here. So I'm going to type it in here. We're going to go to the Land Shark. Yeah, the Land Shark due diligence, pocket due diligence. And we go, we go in here, we just go to run a deal, run a free deal now, run a free deal analysis. And it'll pull it up for us in the future. It's going to be, I guess, a page inside of my website instead of on GPT, but you'll have to go through the website to get to it. So that's why I show everybody to go that way. You get in here, you paste the address, you, uh, hit the Shift+Enter button. Catherine showed me how to do that. It keeps it from hitting the Enter button to send the deal, but you type in here.

You can type more.

That's good to know.

Yeah.

I do that. So, so are you saying this is going out of ChatGPT? Are we gonna lose your GPT?

Yep. December 11th, last day.

Oh, come on, man. So how can we get access?

It's gonna be a web app.

Yeah.

We're gonna use a web app. That, that's the website I just showed you. You gotta go. You're gonna have to go to Deal Hunter.

Yeah.

You're gonna have to go to Landshark-Deal Hunter.

Yeah.

And run it, and it'll be right here, and you're going to click there and go in there and do it, and it'll, it'll still be the same. I don't know what it's going to actually look like, but this is what it's supposed to function like.

Yeah.

So we'll see. Um, but inside of this, this is the deal you sent over. It looks like it's a set of townhomes. Uh, uh, it says here it's 30-unit apartments currently, uh, reported at 93% occupancy. So, um, sources pulled it from, uh, from LoopNet and PropertyShark. So we can go to those sources to, to learn more. The opportunity is, uh, it last sold in 2021 for $4 million. Um, that is a historical transaction, not evidence of today's, uh, actual value. So you can go here and see where that was. It pulls that out. Inside of a little market analysis, Colliers Arnold. Now this is basically maybe Arnold went into retirement or something, but Colliers says that here's a market report for that Greenville Spartanburg multifamily area, and you get that report right there. Yeah. Potential annual gross rental upside at full occupancy means that like. If you're currently at this $1,250, you want to go to $1,450 so you can increase your cap rates and get, get a better value out of the property that way. So on your gross rental schedule, it says your effective gross income is about $43,000, which means that based on total expenses and everything, breaking it down, your calculated base NOI is going to be about $252. So with that operating expense load and NOI, uh, your NOI margin's about 59.2. So if you actually come in at that value of, you know, say it's a 7% cap rate, um, your value's at about 3.6, which is less than what they paid for it in 2021.

Yes.

Right. So somebody's getting a haircut.

Um, Well, there's more. You'll see there's more. Oh yeah, there's something else in here that we need to, uh, talk about. You'll, you'll get to it.

So inside of this, you want to make sure that, uh, I love that it gives this opportunity here where we can select, like, I want to do a, a 70% loan to value here, um, or I want to do a 6.5%, 7.5% interest. Buy Apple Store so they can Um, I can do rental income reductions to see what happens if I lose people, physical, you know, the economic loss factors, what that does. So once we come up with that financing scenario, we can, you know, it'll recalculate the numbers. Um, inside of the 3 funding pads, you got all that right there. We're going to stress test breakpoints right here, physical condition and CapEx. If it looks that good, we might be in good shape. So what is the current asking price? Do you have that?

No, they did not. They did not list the asking price.

Well, based on the numbers, again, like, I would open at 3.25, maybe go to 3.4.

So did it mention the, um, the mortgage on here?

No, but we can take a look at that.

Yeah, I, I did, and apparently there's a, a 2.98% loan on this, on this property, and it has a 30-year amortization. Which I feel the reason why it's still on the market might have something to do with that.

Yeah, I mean, if you can assume the current debt at a 2.9—

Yeah, but is he gonna let it go for less? That's the— that's going to be the negotiating factor.

Well, and, and so you can then have the conversation here with it to, to say, okay, if we assume your debt, how much money do you need to walk away, and he's going to probably want what he put into it at least.

Yeah, right.

But maybe, you don't know, maybe you can say, um, okay, well, here's the deal, let— like, I'll make you the bank. And this is how you— this is how Pace Morby does no money down. You say, listen, your place is really, um, like, you have no equity. You You're, you're, you have negative equity. Like, say it's 10% negative equity. So let me, let me re— let me stabilize your, your deal here, because it's obvious you're not running it appropriately in order for you to make money off it. So I want to help you. Not trying to insult you, but I'm trying to help you get the money you actually want or need out of this. So there's 2 ways of doing it. One, you either take a haircut and walk away with like enough to go like Not live under a bridge, and I assume the loan. Or you become the bank and you'd be a second loan, and I take care of your first loan. We maintain your credit and I just do a sub-to on the first loan, and we create a second loan that I pay you a certain amount. And so that way you're able to then come in at no money down. You're just taking over the payments. And trying to structure it so that you can take over the payments. And now you can tell the guy, listen, I need six months or I need twelve months before I make your payments because I got to fix what's messed up inside of this. Does that make sense?

Yes.

Okay. You better join the mastermind because I'm I'm thinking if you get this deal, you owe me fifty percent.

Yeah.

So you better join the mastermind, bro. Anyway, inside of this, it shows that the $3.3 million is the recorded original loan amount, not necessarily today's total, but there was a $3.3 million loan made hypothetically. If you found it at 2-point-something, that's freaking awesome.

Mm-hmm.

So coming into that, you again, We can do that. We'll build a scenario out right here. I'll go like this. According to my due diligence, I found out that there's a 2.9% interest rate on this deal. So based on if this was like an amortized loan, figure out a very— like, assume a total amount. And it's okay to assume that total amount right now based on a 2.9% rate. And what that, what that buydown has been over, over the, the last 4 years, 5 years. At least the last 4 years since, you know, January of 2022. Give us that number that we could understand and assume, break down what that payment looks like. And again, keep assumptions all in place. And then we want to figure out the balance of that to the $4 million, which looks like it was only about $700,000. We want to figure out if the guy is willing to finance that portion of his proceeds to us and just sell it to us for what he paid for it back in 2021. Once we are able to get those terms, we would then be able to figure out how to accelerate the rents and increase the— increase the NOI based on How we can restructure the, the new rental schedules. So by just doing a brain dump like that, like, it's going to do a lot of work and it's going to take a little time, but it's going to do all that inside of, inside of the time it's going to take me to go get my boots on and get my belt on and get my hat on so I can go run, run my schedule today and, and see where I'm going all over town. And And, and literally open up my phone and go back to this conversation and hit the, hit the talk button, and it'll play back to me all the stuff that it came up with, right? So inside of that, here's the assumptions. If it was a 20-year term, they're around $2.6 million. If it was 30, it's more around $2.9 million, but they're going to be under $3 million with it.

Okay.

And so inside of that scenario, you're going to get seller equity. Give them $1 million, tell them to finance $1 million, right? He put in $700,000, he's getting $1 million back, right? So meet him at his terms, do a 3%. So I would do— again, I would do more of a— It's wanting me to answer that. I'll wait until it's done talking, but This part here, it's wanting to know how I want to do this, and it'll, it'll allow me to adjust and come up with a good final scenario. But at the, at the current NOI improvement model, let's see. Come on. I mean, it looks like it's executable, you know. So it's just a matter of getting into good negotiations with the, uh, with the seller and saying, look, in 5 years you're gonna have a million dollars instead of, you know, bad debt. So it basically brings our NOI to 108 with a with a DSCR of 1.4, 1.5.

All right, sounds good. I need to kind of get on the on the horn with the broker on this.

There you go. So that's how that works. And so what I'll do, I'll I'll I'll copy this right here. Share it, right? We share the conversation. It copies the link. Somebody got stuck on this the other day, and they were like, "I don't know what to do." It's tricky. It's real tricky. You got to click a button and and then paste it. And so most people are like, "I didn't I didn't select all copy paste." Like the steps that we used to take confuse people because now it's like all you got to do is click one button. It does the work. People are like, oh wait, did that work? I get stuck doing it too. I'm like, uh, did that really work? It's just becoming super easy to navigate and operate.

So anyway, thanks for that. I appreciate it.

Hell yeah, take that, uh, take that, see what it comes up with and let us know, man.

Okay, will do, will do. Thank you very much.

All right, well, I want to bless everybody's day, so let me wrap it up with a 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, put us on the path to doing amazing things, and protect the enemies that come against us, Lord, because it is for your power against them that we do your will. In your name we pray. Amen.

Amen.

All right, y'all have a wonderful day. Let's see each other back here on Monday. And wish Catherine a wonderful trip Saturday.

Thanks.

Safe travels.

Yes, Happy Thanksgiving.

Great weekend.

Bye-bye.

All right, thank you guys.

Bye everyone.

Bye-bye.