AI Live - Land Shark Mastermind

On Friday or next Saturday, next Saturday, right?

Because those— yeah, because those are— they're 2 of my contractors, general contractors. I talked to you about this and they're interested right now. So they're looking forward to that.

Very cool. Yep. Well, we'll— and you can go check that out as well. It's contractor-scale-up. And some people call it minus. I don't like calling it minus. Yeah. Makes it sound less than, but yeah, the contractor-whatever, contractor-scale-up.com gives everybody the details. We're getting a new— that one's going to be newly launched. Um, as well here real soon. So, but, uh, I seen the email you sent over this morning as well. Did, uh, um, was that something you created already, or was that something somebody sent you?

Yeah, no, the Sarasota property, no, that, um, I'm working, um, directly with the broker, or I should say the broker reached out to me. So, um, Because I said, I don't really reach out to anybody. I can't even keep up with what I got.

Right.

But so, yeah, so this is a broker that I have a great relationship with as well in Florida. And he has this Sarasota deal off-market with him. And we've been trying to find a buyer for this for, gosh, I've been working on it with him for several months now. And we also have a Punta Gorda property too, but that's on a red light right now. So I'm waiting for the green light to go back to that because I have a couple buyers that are interested in that. But yeah, this is direct with the broker. So I don't wholesale or anything. I do more like I'm like a connector, like connect the seller and the buyer, and then I get paid like finder's fee or referral or whatever.

We do joint ventures and this is how the Land Shark Mastermind works. Is if you're, if you're, if you're what we call an active member and you're earning it as you go, all the deals you bring to us are 50/50. We do it that way.

Yeah, that's what I do with my brokers too. Yeah.

Right. So inside of that, as long as you're good with doing 50/50 with us on the stuff, then, you know, golden. The reason why we, we have a $10,000 deal is because Those members who pay $10,000 and have the lifetime membership for $10,000, they don't pay a 50/50. They pay fees and that's it.

Yeah.

So like, if, if somebody brings a deal through us and, and we, we send them to a broker, we don't get anything from that because they're a paid member. But if they're not a paid member, then we, we have the 50/50 joint venture agreement that we hold, you know, that we hold as a When, when people join or we start running a deal before we actually sign any like contracts, we'll sign the joint venture agreement and, and yeah, seal the deal like that. So yeah. But yeah, that, that Sarasota deal looks like it's pretty cool. I mean, we ran a little bit of it yesterday from, I think, my computer, right, Kevner?

Yeah.

Yeah.

Yeah. And I ran it on Deal Shark, um, the other day and put in the attachments and whatnot.

Um, yeah.

And it came back, I think the asking price when I even had it create the LOI, and I think they were starting at like the asking price, like $7.5 mil. And he's got it like $12.9. So I'm almost thinking that maybe that's why I haven't been able to move it or we haven't been able to get buyers because I think it's just a Yeah, they're— it's too high.

And at that point, that's, that's like cash-on-cash price. If he wants $12 million, he would have to, he would have to be very creative in the way of saying, like, maybe holding a, uh, uh, holding note at 20% down, um, on, on the full asking price and allowing us to do some work inside of there, um, with getting construction loans and stuff like that to demo what's there and build what he's projecting. Because right now, based on what you sent, like, he's proposing— and I don't know if Catherine's seen that email or not. Um, did you forward it to both of us or just me?

Just yours, because I don't think I have Catherine's. Oh, I probably do have Catherine's email from the emails you guys sent me last, last week. But no, I just sent it to you. I can forward things to both of you moving forward. But yeah. But I need to reach out to him and see, because one of the things they brought up when I ran the deal was like the entitlement, and then making sure to see if the— yeah, baby, that's good. Um, see if the boat marina and those boat slips are deeded. And I know it said that that would make a difference, a big deal on the offering, the asking price and things like that too. But the seller will consider seller finance on this deal. So kind of, he said, the broker said, as long as it's a, I guess, a strong offer or whatever, good terms, they will consider and look at seller finance.

Yeah, and that's kind of like how I would go about it is just to come with an offer. Um, that is somewhat, um, like 2-sided. Here's my cash offer at 7.5, 7.5. Um, and it's because I have to go and get XYZ, and I'm going to need 120 days to close because I got to go find out about entitlements and if I can actually do what they're proposing in that, in that email. Catherine, I sent you that email.

Okay.

I'm thinking, what if I just reach out to him? Because I was going to do that. I talked to him yesterday, the day before, and he should be able to give me the information, right? As far as if that's the entitlement and the deeds for those boat slips, right?

We—

yeah, I mean, honestly, I mean, we can give him a call and see if he has it. I like to do that stuff live on the show because, I mean, if they give us the answers, we can plug it right in right away. So, Let's do this. I've got to run into the store real quick. Yeah, Catherine, do you want to open up that email, run the deal, talk about it a little bit, and tell people about Titan Impact Group and what we're going to be doing with inside of the, uh, inside of the, uh, uh, family office, the virtual family offices?

Oh yeah, that'd be okay. Yeah, I'm, uh, I can't get into your GPT.

No, I sent you, I sent you the email she sent to me so you can run it from there.

Got it.

Okay.

And that should have— I did attach the, um, all the docs and stuff like that, all the information that he sent me. I just forwarded it, sent it to you guys.

So it's 2 properties, 1 offer?

Yeah. Can I— 2 ad— yeah, it's actually got 2 addresses. So It looks like it's just one, but it's actually 2.

Yeah, no, I'm—

that's—

I just wanted to make sure.

Yeah. Okay. So, because one of them, I think, is like 0.31 of an acre, and then the other one is the rest of it.

Okay.

But I think it's a nice, a nice— the location I think is great.

Well, Tommy loves Florida, so yeah.

Well, this is where there's like million-dollar homes and things built in that. So yeah.

Right. Siesta Keys. Okay, so for those who are watching us live on all the fun social media sites, we've got—

let me go to this first.

These are tools for everybody to be able to use. Custom underwriting tools. So landshark-dealhunter.com, you go here and then you can Run a free deal analysis here. So when you click that, it pulls you into here, and all you have to do is put the information here. So I literally copied and pasted the information, and we literally— 3 fun words. What are, what are the words?

Run this deal.

Run this deal. Okay, so all I did is I went to your email and I copied everything that you had sent.

And then, uh, I'm underwriting this as a waterfront land development assemblage with 2 likely execution plans for sale luxury residential plus marina and hotel/extended stay plus marina. I'll verify zoning, flood/public record context, comparable land development signals, then stress test the $12.95 million basis and structure an LOI funding path.

And I noticed that you left the thing and showing like photos kind of thing in there, and when I did it, I took those out. So does that still go through? Does AI still pick that up and can actually see those?

We're about to find out.

Okay.

Because I literally copied, like, yeah, all the way down.

Oh, it did. Yeah. See, that's what I did when I ran that, but I just deleted that before I had it run the deal. And, but no, it did pick it up. Looks like it did go through. That's good to know.

So what I love about this tool is, again, for those who are watching live, it's like, you know, having to analyze and underwrite deals, just the initial going through it.

Compared historical pricing.

If we can basically get a go or no-go right out of the gate, we— I know that I save myself, like, Oh my God, an obscene amount of hours.

Searched 40 websites.

Spending time on wasted time deals.

Yeah.

You know, so that's why I'm so excited to start and have you guys build a custom system for me. Just my—

Oh yeah.

Time is like huge. I can't even keep up.

Okay, so the snapshot, $12.9 million. Entitled redevelopment into luxury waterfront mixed-use residential marina, assuming sufficient density height can actually be secured.

Yeah.

Back of the hotel, extended stay boutique hospitality and marina, potentially Retaining small retail restaurant frontage. Initial verdict, renegotiate the go/no-go conditions. Okay, so the, the location was legitimately, uh, city value.

Yeah, I gave a red flag and a no on, like, doing a hotel, but it, it said that it would be better, better as a We are building condos, funding them from there.

Okay, so not yet bankable entitlements based on what it could verify. The biggest issue is not construction costs, it's the entitlement certainty.

Yeah.

So the first major finding—

Can I just get that information from The broker that I'm working with, or is that something that—

No, entitlement. This comes from working with the city, county, state, whatever authorities are over top of that. And there's city council meetings. There's all sorts of— there's a lot of work that goes into the entitlement. So, you know, Tommy is the who that knows how.

Yeah.

Get the entitlements done, and it's one of his favorite things to do. And if we can do— like, if this really is a legitimate thing, it's a long hold, but, um, the profits— this is where the, the significant— like, if you look at the stage, any stage of an investment, um, in real estate that goes through Where a significant amount of the profit is made is actually at this stage of entitlement.

Okay.

So this is a really big deal. Yeah. Of being able to find this. But the most important piece is having the whos that know how on your team that know how to actually do the entitlements.

Yeah.

Because if you don't know what you're doing, this could literally turn into a nightmare and you could have, you know, the neighbors and city and county turn against you.

Yeah. And see, I don't really— I mean, I haven't done much with land deals at all. So, you know, like I said, my brokers reach out to me, you know, send me this. And I said, well, I said, you know, I'll see what I can do, you know. But I'm kind of learning the whole thing with land, you know, flipping land or, you know, flipping or whatever.

Yeah.

As far as that goes. Yeah.

So, so right now, the first major finding is that zoning does not currently support the marketing story as is. So whoever's marketing this has basically, if you imagine, are saying, once upon a time, there was a piece of property, and then you could build a big fancy Disney castle on it. And you're like, wait a sec, but you started the story with once upon a time. Right? And that's the piece people don't understand.

Yeah.

And you need to be really careful. Like, we had, we had it happen here to a property here that they were marketing it as multifamily. And again, they should have started out the marketing with, once upon a time there was a piece of land.

Yeah.

But they didn't. They started out with like, this land is for multifamily, only to find out that there was a giant sinkhole under the property.

Oh my God.

So there's no way it would have, like, been approved. So again, just because somebody is spinning the marketing record the way they're spinning it doesn't mean it's an actual— it's actually a viable project. Does that make sense?

Yeah.

You wanna be very careful. Like, there's, you know, trust but verify.

Yeah.

Like, okay, we're trusting that you're saying this, but now we're gonna go verify. And our AI system was the system that, that actually dug through the copious amounts of documents and literally found that it— there was a sinkhole.

Wow.

Like, even the broker was like, it's not my job to know that, even though he was the one marketing it as a multifamily property.

Yeah.

So again, very, very careful about whose, whose story are you listening to, the facts or the story? The once upon a time. Yeah.

So, because I get that a lot too, like where, you know, the brokers that I do work with, they're great and we have great relationship, but sometimes you just don't get the whole story, you know?

Well, again, it's a story. It's all made up.

Yeah.

You know, or I should say the information about the property.

You know, that's probably a better way to say that.

So, okay. So right now it's residential, right? So if Tommy— I see that you're back.

Yeah, the property is residential, but it's currently used as a commercial, right?

Yeah. Well, Nico told me that it could be residential or commercial. But when you pulled it up, when we pulled it up and did this yesterday, you pointed out that there was like a couple businesses actually on this. And Nico told me it was just a mom-and-pop boat rental place and that that was it. And with— he did say that it's going to be a process as far as like closing on this, you know, it's going to be a time thing, but. I know that on the Putah Gorda property that we have, he has it set up where due diligence can be done all at one time and set up— he can set up like a whole Zoom meeting with all of the parties that need to be involved in that, um, to, to do that. So very quickly. So I don't know, because the government and the county and stuff is backing that deal 100%. I don't know if it's the same situation with this one because he didn't say.

Right. Well, based on the, based on the drawings or renderings that I've seen, it's like a 5-story, 4-story, um, multifamily unit. And I, again, based on, um, when we were reviewing the deal, it said that it had 2 types of zoning. One was an R-6, meaning 6 units per acre, and the other one was a, uh, um, Mm-hmm. What the hell was it? It was a— I want to say it was like a neighborhood commercial use.

Yeah.

And so one lot, because there's 2 lots, one lot was set up for retail basically, and the other one was set up to be multifamily. So getting it all multifamily, getting it all to be 5, you know, Or 6 units per acre, um, is the desirable there. Because like we talked about building out a marina, uh, with, with, you know, the, the houses there, you could literally have— if it's— if— how many acres was it? 2.4, 2.5?

It's like 2— well, I think it's like 2.75, but I think Dale Hunter brought it up at 2 Chat brought up at like 2.71 or something like that, close to it.

Yeah, if we just called it, just called it 2.5 minus the, minus the utilities, um, at 2.5 we're looking at a total of, uh, 15 units. And so there's 15 boat slips, 15 units. You do 15 units and you, you put a, a, a cheap Bayliner in every, in every boat slip and you sell the condo with the boat.

Yeah.

Done. Everybody gets a condo and a boat.

Yeah. Yeah, because I think the boat marina right there, it's, it's, you know, brings value add to, you know, that property plus the location.

Right. Well, and again, the, the whatever's there now isn't making enough money to really worry about it, or can. But that in my head, what, what was rendered on paper is what I'm I'm making offers on is what was rendered on paper because I can get DeBartolo to go over there and, and build out a, you know, 15-unit luxury, uh, luxury high-rise.

Mm-hmm.

That, and again, and then like go and buy, you go, when you go and buy 15 boats, you go and buy 20, uh, 24-foot Bayliners. Um, you go buy 15 of them at one time. They give you a little bit of a discount.

Yeah.

Right. And what you do is you package it as a boat condo deal and you limit it to, you know, limit your short-term rentals to, you gotta, you gotta be there a minimum of 3 months.

Yeah.

You know what I mean?

Yeah.

So, and you market the things for, I don't know, just say $450,000.

Yeah.

And you buy 3-month, 3-month sections of it. At $450 apiece.

Yeah, yeah, that would be definitely—

yeah.

Each unit then becomes— let's do the math on that. Uh, each unit becomes basically, uh, $2 million, and then $2 million times the 15, that's $30 million. We might be able to build it for that and do it for that. Maybe, maybe. Yeah, so we might have to adjust pricing there, but these are just raw numbers that my head could This is how a deal hunter works. It's how my brain works. My brain sits here and just starts trying to figure out how to make the most money outta that thing.

Right, right, exactly. You know, kind of have to just, you know, think outside the box. But, um, but yeah, but yeah, I noticed when you pulled it up when we did it yesterday and you had those other like Google Map pictures or whatnot, we noticed that there was like a boat ramp and then also the, the thing to, uh, lift the boats outta the water. Kind of, I don't know what that's called.

Yeah, that's the— that's where they're— yeah, I mean, a lot of that would be replaced. What you do is you take and go buy it and you do all your write-offs on everything and do your, your massive depreciation bump on your first and second year while you're getting ready to do something.

Yeah.

And then on year 3, you actually start construction and demo everything and buy brand new, but you have to do about a 2-year hold on it in order to get full depreciation. Yeah. But the— yeah, I would love to talk about to somebody about the project. Where it's at in Sarasota is not a bad area as far as like real estate, the Intracoastal spot. And again, the flooding, like, I mean, it's Florida. The whole damn state can flood. Yeah. So, yeah, I can—

let me text Nico Wright real quick and see if he's available. See if it'll get on file.

Yeah, that'd be great. That'd be great. Let's do that. Catherine, do you have any other deals to run? Did you, uh, did you see the renderings they have for this thing?

Yeah, we were talking about it.

Um, let's pull that into free estimates and tell it to give us a ballpark on what it costs to do that.

Okay.

What, what were you gonna say? I'm sorry.

Um, yeah, I had a deal, but it was a no-go.

No-go. Well, we are, we are, uh, setting a goal next week to, to run a minimum of, of, uh, 10 deals for the week. That'd be 2 deals in each, in each day. And by Friday, we're gonna call all of them. The ones that we get goes on, we're gonna call and make offers. And we'll make Friday offer day.

So I don't— I can't get to free estimates anymore.

Yeah, you can. Ready? free-estimates.io.

No, we don't throw them. They're not to throw because you—

The 25th.

We don't throw blocks. No, I have a daycare too.

I changed— Oh, that's cool. I changed the, uh, the name of free estimates, um, a little bit. Oh, did you see that? Pre-estimates powered by Contractor Scale-Up.

I wonder if it reads this.

Huh?

I don't know if it reads a zip file.

No, it won't read a zip file.

I have the uploaded Sarasota FL investment opportunity zip file. I can unpack and review its contents for you. I can help with things like analyzing property photos, documents, identifying likely repair scope, building an itemized rehab budget, reviewing the deal materials for cost-related risks, or summarizing what's included. Tell me what you'd like me to focus on, and I'll work directly from the uploaded file. Next step, if you're analyzing deals or estimating rehab costs as an investor, check out Deal Hunter by Land Shark, landshark-dealhunter.com.

Ah, okay, so it says it can upload it.

You can? Okay, upload it there.

So please unpack the zip file. And give me an estimate on how much it's going to be to build this out.

Condos, apartments, and make it—

inventory the plans, photos, documents, pull out the build scope they actually support, then price that.

It didn't do anything. Yeah.

It's analyzing. It's unpacking it right now. Give it a minute.

Oh, I wanted to— okay.

You want to do something different?

No, that's fine. Let it unpack. While I was at the store, some woman brought her, uh, Yorkie. You know, these little, little dogs that are like the size of a handbag.

Purse dog. Yep.

Yeah, I have one of those.

Brings it in the store and sets the dog on the counter as if it's her purse, and this dog just sits his dirty booty down on the, on the counter.

Oh my gosh.

Right at the, at, at the, at the checkout counter.

Did they say anything to her?

Everybody all around her are looking at her like, what the hell are you doing? Right? Every, all of them. Everybody's standing there looking at her like, what are you doing?

Yeah.

It's like we put our food up there, man. You know, that's the—

And then the woman, the woman waiting on her is like trying to be like kind and like, like points at the dog, doesn't say anything, just kind of does an open-handed, like, Really? You know, with all 4 fingers laying pointing at the dog like, move your dog. Um, she's like, well, do you want me to give you the money or not? I can't hold him and do this at the same time. Oh my God.

So then put your dog in a purse, carry it on your shoulder.

On the floor. The dog is a dog. Put the dog on the ground. The dog can sit on the ground just like it can sit on the counter. So I was just blown away. So was everybody else in the store. So I can't say that I was the only one that was oddball. But to that point, what did it, uh, what did it unpack? Did it get very far? Is it gonna be—

It's still working on it, but it is, it is seeing the pictures. So it did, like, it is unpacking the zip file.

That's cool.

All right. I just got off the phone with Nico, the broker, and he said he's available for you to talk to him now. So I give you his phone number.

That, or if you want, call him on— are you on your phone on the podcast or—

No, my laptop. You want me to just call him on the phone? You want to do it through—

Yeah, we'll do it right here. All right, let me call him right back and then just put him on speaker.

Yeah. Hey Nico, we're just gonna do it like this because he's here right now, so we'll just do it through my phone. I have you on speaker.

Okay, okay, all right, all right.

Uh, okay Nico, here's Tommy and Catherine, and you guys, this is Nico, the broker for the Good morning, Nico.

Hey guys, how was your day so far?

It's great, it's great. How's the, uh, how's the weather in, in Florida?

A little cloudy, but we can handle it. 80, 85.

And not, not too much, not too much with the hurricane yet?

Uh, not yet. We did not order any of this.

Okay, okay. Well, stay safe with those storms. I'm very familiar with the Florida area. I lived there for 25 years, had a, had a roofing company and a construction company out there in Brooksville and Zephyrhills. And, uh, when, when Charlie hit, when Charlie hit Punta Gorda, I moved down there and put a satellite office right off of Tamiami Trail down there, uh, and, and had a, uh, had my office right next door to an internet cafe. So very familiar with the area down there. So you're the lucky guy that's got this, this one inside that cove right there.

That's right. But the asset is located in Sarasota in the multimillion-dollar neighborhood. It's backing up the changes. What's very important, because the project's going to add value, and that's why it's backed up very seriously from the Uh, local residents, and it's right across from Siesta Key Beach, what is number 1 beach, as you know, with 99% quartz sand. Uh, tell me what kind of details, uh, and what kind of questions, uh, you have for me.

Well, how far are you guys on entitlements and getting approval for the, for the renderings we looked at? It looked like you have a large multifamily development designed, uh, condos or townhomes. For right there on the, on the, uh, on the, on, on the road, um, and incorporates the 15 boat slips. Um, what, how far, how far in the weeds are you guys with the, uh, with the municipalities about that?

Uh, just a second. Uh, Marion, I'm in the other line. Uh, please talk to you. Thank you.

Hello?

Hello, we're still here.

Yeah. Okay. Sorry, I got a call from the other line. What is your question? How many units? Actually, this is not the multifamily. This is a mixed-use project that contains marina, retail, and the 3rd layer, it could be Let's say luxury condos.

Yeah, I've seen the luxury condos. And so do you guys have the approval for that yet or no?

No, it's not entitled because we've been in a limbo, um, to what to build, luxury condos or, uh, hotel slash extended stay hotel. So it's, it depends on the investor. Uh, it's more flexible and more convenient for the investor to decide which way to go and which way is going to be more profitable and suitable for his investment and income approach.

Right, right, right. And we've, we want to run a couple models through it, and we've ran through our— we've got proprietary software. We've ran the deal through it. And we're looking at it from the standpoint of it going into the, you know, uh, luxury condo and incorporating the, the, uh, incorporating the boat slips as part of that development. Um, and so the renderings that we've seen inside the email that Rachel shared with us, are those things that you've already had done, drawn up, some— somebody drawn up, or, or like, where are you guys at with that?

We just hired an architectural company to draw up different conceptual site plans.

Okay.

And this is just a proposal for better visualization because it's much easier to get some kind of picture. Of course, this is just an example.

Yeah, yeah, no, I was just curious if there was somebody that had already drawn stuff that would be usable to go and talk to the city or county about the development of one of those concepts. So inside of that, um, my understanding is that the property currently has buildings there, but, uh, they're vacant, or, or what is the standard? We looked at it on Google and it looked like there were 3 2 or 3 businesses attached to it.

Actually, the strip plaza and the boat rental business producing like $30K a month. So it's not just the vacant land. We have a cash flow from the current tenants. The current tenants are very short-term lease terms. for investor flexibility. You're right. Yeah, this is very development side. And that's why I believe everybody's going to be involved, going to be happy because as we start our conversation, the local residents are going to get something that's going to improve dramatically the area. It's going to be like a sound barrier to the multi-million dollar homes. And also it will be a different hit that I believe, starting with the design that is already produced and match exactly the lot, that's going to be a win-win situation because— It's a good point at the beginning to present it to the planning and zoning department, like a concept.

Are they— are you the owner, or are you the broker that's representing the owner?

Let's say both. I have interest in the property as well. Hello?

Are you there, Tommy?

Tommy, we can't hear you. Tommy, we can't hear you.

Terms of the project, because it sounds like you guys are wanting to price it around, you know, based on some future value. And so therefore, you know, I want to make sure that, you know, there's conditions of satisfaction that everybody has to maintain in order to make money. So, um, inside of that, like, knowing where we are in the difference of, of, of, you know, asking price versus, you know, versus comps. Um, I know that you guys are, are, have increased the price based on the future value, the future opportunities, but that falls on the developer. So if we're partners in this to a degree, then it, then it makes sense to pay closer to that asking price.

Well, uh, the owners group is open to take in consideration any makesense possibility. So please scope the asset, the numbers. If you have a chance to come to Sarasota, I'll be glad to meet you in person at the site, and we can start from there.

So we're a private equity firm in Arizona. Rachel is one of the associates to our collective and was the one that introduced it to us. If we do find interest in the property, yeah, we'll definitely do a flyout and walk it. But I need to know prior to that there's something of value for us to pursue. To pursue there. So inside of that, the price that it's currently listed at is above what market is for that type of property. And if the cash flow could justify it, the value, you know, that could be something as well. But as a private equity firm, we have to find the, you know, we understand the highest and best use for it, but we'd have to make sure that, you know, there's some leverage and workability from the seller side to get this accomplished?

Well, of course, the goal is to make everybody happy, but we have a direct comp, Sarasota County purchasing 2.02 acres waterfront property for $18.2 million. So with the housing price, we're sitting pretty good because we have a direct comp.

Okay, so, and so with full understanding of the situation, those— your comp doesn't have 50-year-old buildings on it that need to be demolished in order to accomplish what you're proposing.

Same situation. Absolutely. Yeah, you're right.

So let's, let's, let's do, let's do apples for apples instead of apples for grapefruits. What you're comping against isn't what you're selling.

Once again, actually, this is a public deal. Sarasota County, it's purchasing for their own use waterfront property.

No, and again, but Sarasota County, it doesn't go around and just buy everybody's waterfront property, sir.

Well, that's the point, because—

Okay, let's, let's just do this. If you can provide me with more than just one, one example, I'd like to see 3 of your comps that justify the price you're asking. And also take into consideration that if you're willing to be a seller, you know, a partner in this with us by offering terms and being negotiable on terms instead of price, we have no problem paying toward future value as long as you're a partner getting through this with us. We've got an extensive amount of projects that we've already done, and we want— if we're interested in this, We need to know that if you're, if you're non-negotiable on the asking price, are you, are you cooperative on the, on the terms and the way we can work through the deal to make it worth the value you're asking? Because currently, as a developer, I need to buy it for what it is. And what it is, is it's broke down Class C retail with a potential value of, of, you know, $15, $20 million plus another, you know, $20 million, uh, uh, uh, building on it, putting it at potentially $70 to $80 million value in the future when it's completed and done. And all the risk came on us, not you, because if it was on you, you'd be doing it instead of selling it.

Right. Uh, regarding— well, first of all, regarding the comparables, there is no comparables, just a single one. Once again, There was no offerings, uh, for the last 10 years, let's say. Um, I'm not aware of any deal to be done in Sarasota area. The only one that is, uh, there is a multi-multi-million dollar, uh, high-rise, uh, buildings.

The way you're describing— I got to stop you because the way you're describing the comps is like you only do residential. So, have you done commercial or industrial real estate before?

Actually, I'm dealing with institutional-grade level investment opportunities globally.

So, so let's start out with the fact that that building right there is comped based on the cash flow it's currently making. That's the first way we can value it. There's about 3 ways to value this property. And so we can value it based on what it would cost to replace it. We can value it on based on the cash flow that it's making and using cap rate, or we can value it on what is called market value. And we can go around and find other places that have waterfront property with 50, 60-year-old super CapEx buildings that need multiple millions of dollars to either fix up or demolish. So, again, that's what you need to compete against, not some state-bought entitled land that That the state purchased at eminent domain rates. That's not, that's not a comparable—

It's not eminent domain. It's just a public-private deal from the seller's side.

Again, it's not comparable to the property you're selling, and I don't mean any disrespect, but if you can, if you can value it using 3 methods I gave you, that's what we're after.

Okay, now the cash flow, it's not working because, as I say, this is a redevelopment opportunity.

Exactly. So if it's a— and so here's, here's my offer. Here's my offer. We'll give you 20% down and you carry a note for 5 years, and we'll pay you off when we're done and built and we're at $80 million. Okay? And I'll pay you your full asking price. But it's 20% down, carry the note for 5 years, interest only 6%, and we'll do that. And I'll go down there and put all the risk into building it. But I need you, I need you to have skin in the game that it's going to be what you claim it's supposed to be, because currently what it is is a broken retail, non-multifamily, non-condo ability. It has to get entitled, has to be demolished, and has to be built, and the risk doesn't fall on you. The property's only worth five and a half million dollars the way it sits right now.

Yes or no, but please wrap around the bell, say that over, and we can take a look at that.

I'll send something over. Thanks. All right. Have a wonderful day. Enjoy the weather. All right. Bye bye.

Absolutely. Yeah, we've been considering what you think. So let's. Take a look and we can start from there.

I like the idea.

Absolutely. Once again, we're very reasonable. There was no direct cost except the one that we discussed. But yeah, please feel free to explain your idea. Yeah, we'll be more than happy to collaborate, if it makes sense.

We'll see what we can put together. I'll do it over the weekend and have something to you by Wednesday next week.

Sounds like a plan. It was a pleasure talking to you, and let's stay connected. Rachel, thank you.

Yes.

For your time.

Yes.

And arrange this conversation. We look forward to discuss those.

Okay. And Nico, I'll go ahead and give Him your contact information as well.

Rachel, you're gonna stay the contact. Oh, I will. Okay.

Yeah, I'll stay the contact. Never mind. It'll just be me. So yeah, as soon as I receive something from them, then I'll send that over to you, Nico.

That sounds like a plan.

Okay. All right. Sounds great. Thank you. Have a great day.

Nice talking to you guys. Enjoy the weekend.

You too. Bye-bye. Okay. So what do you think with that?

No, that— I mean, that's, that's basically how negotiating with— with— when he said, uh, you can call me both owner and, and, and, and, uh, realtor, broker, whatever.

Yeah, that's the first time I knew that. I didn't know he had any interest.

He technically doesn't have any interest in it. He's getting a percentage just like he is as a broker, but he Tommy, you cut out.

We can't hear you.

Can't hear you.

Tommy.

Tommy.

Tommy.

I don't know why.

Hold on.

I was a single agent.

Tommy, the last 3 minutes nobody heard you. So say that again.

The last 3 minutes nobody heard me what?

Say anything.

You didn't hear anything.

Cutting in and out really bad.

Oh, okay. I don't know.

So you said something about he's— the last part where you cut out was that he's a broker who's getting a percentage. He's not actually an owner.

I think we lost him again.

Oh, doodles. Copy.

We can't hear you.

Can you hear me now?

Yeah, we can hear you.

What the hell is going on? What about solar flares? Can you hear me now?

Yes.

Okay, I had to turn my camera on, turn my camera off. Anyway, the point being is that the guy, uh, the guy is acting as what they call a single agent. So, and I, I believe— and did everybody understand what I was trying to convey inside of the value?

Yeah, that his comps aren't actual comps. Yeah, for what he's trying to sell.

Yeah. So the, the fact that he— there's— and, and so that's why I asked if he's ever done commercial, because when you don't have comps for a commercial property, you have to go and find a value. And there's 3 ways to do that. One of them is income.

Mm-hmm.

And you heard how fast he backpedaled. He's like, no, no, no, no, no, we can't do an income. We can't do an income.

Yeah.

That's what he's been telling me all the time with the boat ramp, the marina thing. He was like, oh, don't even— just act like that's not even there.

You know? Right.

Well, so, and he's saying that because it has literally no value. If anything, it has liability.

Yeah.

And it, it actually is, is a— it's a, it sucks income instead of Providing— it sucks in expenses instead of revenue.

Yeah.

So I don't know if you're seeing my screen. Yeah, Tommy. So I was reading through this and it's saying like, these are the scenarios. It's anywhere from $26 to $39 million or more.

Yeah, and I went low. I went low at $20 million cost because I can do it cost, right? Um, but yeah, it's guaranteed to be higher than that.

So it says what this does not include is all of this.

When you say all of this, let me see.

Land purchase acquisition closing costs, construction loan interest, loan origination costs, development overhead. Developer overhead, marketing, sales commission, condominium legal work, uh, FF&E beyond normal construction allowances, major offsite roadway improvements, extraordinary environmental remediation, large utility company betterments, property taxes during the construction, insurance carrying costs, unknown entitlement conditions, unusual seawall construction. Unless subsequently identified. Like, that's significant.

Yeah. Yeah. Well, and, and, and to that extent, it's, you know, it's saying 50 instead of 15, though. You see that up there? Condo finish level. It should be 15.

Okay, so we need to tell it 15.

Ask it how many units it planned on.

How many condo units did you base these numbers on?

When I ran it, it was like, it came back, it's like 36.

I based the estimate on 50 condo units total. That came from the project material in the zip. My working assumption was 50 residential condo units.

So whatever they created in the zip, they created it at 50 residential condo units.

Yeah, they— so that's what they, they— that's what they gave in the rendering. But let me talk to it for a second. I want to give it a different one. Okay, go. Um, okay, so you have it based on 50 condo units. I want 15. 1-5. And I want them to be large in the sense that I want to consume probably like 1,500 square foot to 2,200 square foot per unit. And then I want 2 penthouse units on top that are going to be bigger. So a total of 15 units.

Okay.

Um, I want, I want, uh, 2 units on top to be penthouse style. And so create the other 13 units beneath it, uh, to the height regulations of Sarasota. And then we want to incorporate building out 15 boat docks with 22-foot Bayliners in them. We're going to go buy 22-foot Bayliner Bajas and put those in the boat slips, and every condo owner is going to get one of those boats with the, with the purchase of their condo.

You're done?

Yep.

Come on, little computer.

It's like that guy said, he hired somebody to draw some stuff up, give him some ideas, but he has no ideas.

Right.

Thinking.

And 20% of $12 million is $20— uh, $2.4 million, right? So if I give him $2.4 million to get this project started, we've got equity built in and we can do a lot of stuff with that.

Okay.

And I've got to get off here at 10 o'clock. What time it is?

9:58.

Revising construction assumptions. Revised construction assumptions.

She's working her little tushy off, huh?

Says thinking updated estimate.

Yeah, well, I found out that that property, um, the re— uh, the, um, commercial property down there in Mesa, 134, um, I forget the name of the street, but in Mesa the address was 134 something.

Okay.

Uh, that, that one is still available. I'm waiting to hear back You keep cutting out.

Are you still there?

Hello?

I did with Rachel today. Thank you so much, Rachel. That was a lot of fun. And, uh, I feel confident that, like, we send him over this idea with the boats and the, and the condos, um, and stuff like that, that if he lets us come in at 20%, We can, we can get a lot of leverage from that and get a lot of work done.

Yeah, yeah, I'm—

it sounds—

I mean, it sounds good to me. So, and we've been working on this for several months now. So, yeah, I definitely think that hopefully we'll get to move it forward.

I've released the concept from 50 smaller condo units to a 15-unit luxury waterfront.

He was recommended, referred to me by some— by my—

How did you meet the gentleman?

Through my, one of my other brokers that I work with in Florida. He was, he was referred or sent to me. And we've been, he presented me these 2 deals, like, it was probably March or April of this year that we've been working on this together.

Thanks.

There's another one in Punta Gorda by the airport. It's almost 54 acres. It's commercial. But that one's on hold right now because the owners are— they're trying to come to terms with something or whatever. I don't know. So I haven't got the green light to go back and pursue that because I do have a couple investors that are interested in that property.

But scroll through this one, Catherine. Let's take a look at it.

I'll put the cheese on it.

Yeah.

So 13 standard condo. It's put 13, not 15. Oh, no, wait a minute. Yeah, 13 plus 2 penthouses. Okay. 15 boat slips included per condo. Okay, so let's run down to the bottom. So you're looking at $26 million.

What's it cost for the boats? Take the boats out. Go up, it'll show you where the boats are.

Bayliner boat 380.

That was close, because when I said $20 million, that's what I was figuring it would run.

Yeah, pretty good job, Tommy.

So these are the scenarios, so it's anywhere from $23 million to $31 million.

Right.

Tell it to put together the concept on a, uh, on a visual image so that we can feed it back to Deal Hunter and get Deal Hunter to give us an idea of what it would— what we could, uh, make on it, what the value of it would be. Okay, hold on, let me Hey, Tommy, do you know what time— I mean, the other screen should be coming up.

I'll tell them. Put together a visual concept for this so that we can run it through our deal hunter. It's 10:03, Tommy.

Yeah, I know. I'll get over there. So it should be making a rendering.

Yeah.

Yeah. It's thinking. So we'll hop back to this, what, on Monday?

On Monday. Let's roll on it on Monday. I appreciate everyone coming in. Let's see everybody next week. I'll end it with a prayer. Heavenly Father, we thank you for the blessing of this day and the blessing of 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.

Amen.

Thanks, everyone. All right.

See everyone next week.