AI Live - Land Shark Mastermind

Um, it's just too much cash in upfront. So that's why I'm saying if we do a 6— I think I said $680,000 cash offer, then at that point there's equity in the property where we can buy it and do the repairs. There's over, you know, about $500,000 in repairs. So, um, that being, you know, also a consideration, um, that's what we want them to be notified about. That's got to be in the LOI as well. So providing it with the details you need in the LOI, when you finish putting all the information in there, you want to finish the prompt with include all the components of a real estate letter of intent. So as long as you tell it to include all the components of a real estate letter of intent and send it, then what, what it'll do is it'll provide you back with a basically a template of an LOI that I've put into its brain way, way, way back when I built it, and it uses that. So, and it's modifiable. It's not that— it's just a template. It has all the components of an LOI. So when you tell it to use all the components of an LOI, it knows which template to use, it knows where to go, and, and all that. So, um, that's how you prompt after you run a deal. This is how you prompt it to write an LOI for it.

Okay.

So you just tell it. And again, if you're— if you forget or you didn't remember, the easiest thing to do is just say, I want to write an LOI, ask me or quiz me about all the information you need to fill one out.

Okay.

And so it'll ask you a bunch of questions that you can answer or— all the questions, then you say to it, Now go back and answer these questions, uh, from your knowledge base that you currently have about the property, and ask me the only ones you can't answer. So again, like, you, you're forcing the machine to work inside of itself, but you have to tell it to do that. I call it telling the teenager to clean his room, right? He lives in there. He should know to clean it, but unfortunately they don't. Cleanliness and, and Tidiness is not instinctual. It's something that is like, it's either, you know, uh, taught to them, you know, children, or, or it's exampled to children. So it's not typically something that children do naturally. So ChatGPT will not naturally know the— that you want it to use its brain unless you tell it, use your brain. Okay, wait.

Where? So it says— do you want to read through the letter of intent and then to make sure there's nothing wrong?

No, as a matter of fact, when you get to the end of it, ask it, is there anything missing? And then tell me what it says when it— when you— when it responds to that. This look— tell it, this looks good, but is there anything missing? And then I, because I can't see Catherine's read a couple of LOIs, I think she'd be the one to be able to look through it, right, Catherine?

Yeah.

Yeah.

It says it looks pretty good, but the— oh wait, the— yes, this LOI. It's solid, but I'd tighten a few items before sending so you preserve leverage and avoid ambiguity. The biggest thing I would add is an LOI expiration date. This prevents it from floating independently. It also adds a PSA execution deadline such as 5 business days after LOI acceptance so the seller can't accept economics and then stall the contract. Exact seller finance purchase price. Replace full asking price with actual agreed figure once confirmed. Right now we have conflicting market numbers around $880,000 to $888,000. CapEx protection. State and buyer obligation to proceed is contingent on buyer being satisfied in its sole discretion with the final scope and cost of repair. Code compliance, environmental conditions, and permitting. Shop exclusivity. During the 60-day inspection period, seller should not market, negotiate, or accept backup offers from another buyer with a $67,000 deposit at risk later. I would want the property effectively tied up. Seller financing documentation. Specify first position deed of trust if appropriate, whether the seller's Note can be refinanced early. No due-on-sale restrictions affected an affiliate transfer. No prepayment penalty and no personal guarantee unless separately negotiated. Possession state: vacant possession at closing unless there's a tenant or occupant you intend to retain. Casualty condemnation: if the building suffers a fire, major casualty, or material damage before closing, buyer can terminate and receive the deposit back. Seller representation required disclosure of known code violations, fire casualty history, environmental issues pending government notices, unpermitted work litigation affecting the property, and known title problems. Access protection— buyer should be allowed to Intrusive testing, if needed, subject to reasonable restoration insurance requirements. This matter for environmental, roof, sewer, electrical, and structural work. Title objection period. Give buyer a defined period after receipt of title to object to exceptions, liens, easements, or other matters that give the seller time to cure. Survey legal description. Make the legal description control over the street address. Closing cost allocations. Spell out title policy, escrow fees, recording costs, transfer-related costs, loan document costs, and seller financing documentation costs instead of relying on Arizona custom. Tax, rent, utility prorations already referenced, but add security deposit, prepaid rent, tenant credits. Brokerage language. Since Ashley is acting as agent, identify the brokerage correctly in the final LOI rather than just agent representative. That should match the actual agency relationship commission agreement. Assignment language. Keep the assignment right, but I'd make it explicit at assignment— wait, explicit that assignment to an affiliate or acquisition entity Does not release Golden Globe Wholesale LLC buyer unless he elects— unless elected otherwise. Or structure it the opposite way if wholesale assignment flexibility is the objective. Confidentiality optional but useful if you don't want your $675K offer or seller financing structure circulated. Attorney document review. State that final documents are subject to buyer legal review. There's also one factual issue I would fix before sending the building size. Your spoken instruction called it a 10,000 square foot building, but the property information we found indicates approximately 8,300 square foot of building on a 10,000 square foot lot. I would use the 8,300 square foot figure unless the seller broker confirms otherwise. The other provision I would rethink is the 10% earnest money deposit. $67,000 is unusually strong leverage for the seller. It can make your offer look very credible, but I would structure it as $5,000 to $10,000 initial earnest money and then increase it to the full agreed amount only after major diligence milestones are satisfied. If you want to keep The 10% deposit to make the offer aggressive. It should say 100% refundable the entire 60-day diligence period and should not become hard merely because inspection time expires without a written affirmative election by the buyer.

Okay.

I'd also strengthen the seller financing alternative economically with roughly $475,000 of CapEx. Your most valuable seller finance terms may be no payment or interest, only payments during rehabilitation followed by amortization after stabilization. That protects working capital much more than simply negotiating the rate. For this deal, my preferred seller finance structure would be roughly Full asking price, 10% down, 90% seller carry with a 5% fixed rate for 24 months interest only, 30-year amortization, therefore 7-year balloon, no prepayment penalty, and the ability to refinance anytime. Didn't you say 2-year balloon though?

Yeah, we can do a 2-year balloon. So when you get through all of it, you're going to tell it that you like everything except, and we're going to go through and just fix A couple of things, because everything it's suggesting to do is what you want it to do. You want to tell it, do everything that you've suggested except— and one of the exceptions would be a 2-year balloon. Like, we want a 2-year balloon, not a 1-year. Um, you're going to tell it that we need 6 months of holdback in the beginning.

Okay.

We want, um, the, the other exception is the, the Uh, first lien position. We actually want them to be subordinate. We want them to be a second lien.

Mhm. Okay, the LOI is close. The 4 additions I'd consider most important: exclusivity, no shop, casualty fire protection, become a deal. Okay.

Yeah, we definitely want it to where they can't shop the deal anymore once we put it under contract, stuff like that.

Right. Okay. So are you gonna prompt it or me?

Go ahead.

Okay. Yes. Can you please make all those updates? The only thing I noticed is, can you please change it to a 2-year balloon payment? Is that good enough? Is that right there?

That was the only position.

Oh yeah. Also add that the seller would need to go into the second lien position. Okay. Yes, I updated the LOI to include the protections we discussed and change the seller financing structure to a 2-year balloon because the balloon is now due at 24 months. I also removed the prior 30-year amortization. Okay. After 24 months language, the note would mature at the end of the interest-only period. Do you want— I mean, I don't know if that happens now or later, but based on interest rates there, you might want to put some type of balloon extension if the economics aren't right, except for that you're paying interest-only payments for those 2 years, so I don't know, that's up to you guys. Letter of intent. So cash offer, $675,000. Earnest money, $10,000. Okay. Buyer shall initially deposit $10,000 in earnest money with a mutually acceptable Arizona title. The initial earnest money shall remain fully refundable to buyer throughout the entire 60-day due diligence period. If buyer affirmatively elects in writing to proceed with the acquisition following completion of due diligence, buyer shall increase the total earnest money deposit from 10% Of the purchase price to $67,000. Is that what you want?

Yeah.

Okay. No earnest money shall become non-refundable merely through the passage of time. Buyer must affirmatively elect in writing to proceed before any portion of earnest money becomes non-refundable, except as otherwise expressed, agreed, and definitive PSA. What is that?

Purchase sales agreement.

Okay.

All earnest— in a purchase sales agreement, a definitive hard would be like money goes hard at 60 days.

Right. So whatever it like affirms in the contract.

Right, right, right.

All earnest money shall be credited towards the purchase price at closing. Due diligence and inspection period. Buyer shall receive 60 calendar day due diligence period beginning on effective date. Buyer's obligation to proceed shall be expressively contingent upon buyer being satisfied in buyer's sole and reasonable discretion with all aspects of the property, including but not limited to all of this stuff. Buyer may terminate the transaction at any time during the due diligence period by written notice and receive full and immediate return of earnest money. CapEx contingency: buyer's obligation to proceed shall specifically be Continued upon buyer being satisfied with the cost and scope of work as necessary to rehabilitate, repair, bring into code compliance, ensure occupy finance and profitability, operate the property. If buyer determines that the actual required capital expenditures, repairs, environmental remediation, code compliance work, structural work, or other required Improvements are unacceptable, buyer may terminate, request purchase price reduction, request seller credit, request seller financing, or renegotiate other economic terms. Closing shall occur on or before 60 days following execution of the definitive purchase contract, unless buyer and seller mutually agree otherwise in writing. The property shall be acquired as is, whereas subject expressed by buyer satisfactory Completion of all due diligence and contingencies contained. Option 2, full asking price with seller financing. As an alternative to the discounted cash acquisition, buyer is willing to consider paying the seller full current asking price, presently understood to be approximately $880,000, subject to confirmation of seller's current documented asking price. The purpose of the seller financing structure is to permit buyer to preserve capital necessary to fund approximately $475,000 anticipated rehabilitation. Proposed seller financing terms: $884,000 seller's confirmed current asking price. Wait, but didn't you say that That wouldn't work. What did you say, that it's overpriced or you couldn't put the $200K down or something?

Putting $200K down and doing $500,000 in CapEx makes the— makes the numbers wrong. So that's why if he turned down $100K, then the best we could probably do is like $125K, and that's so that we can get You know, $500,000 worth of work done. So we would need to raise— we would need to raise another, you know, 30 or 40 cents a square foot per month lease on the whole property in order for the numbers to achieve. And so we're already at a medium. We're not at the most aggressive, but— It's like 20 cents above the most aggressive in order for the numbers to work on the lease rate. So technically, like, we need the seller to come down on the price more than we need them to do seller financing. If they want seller financing, then they need to accept either like $125,000 or $150,000 and really favorable terms. In order for it to pencil, it won't pencil with the rents. We'll we'll be barely at like a 1.1, and in order for that place to work, it's got to be at a 1.4. So, so explain more of that, like in that triple net situation. I'm over here. So that.

Do these terms work then? The $880,000, 10% down, seller financing 90% of purchase price, estimated seller note $792,000.

No, like, I don't know why it's adding like seller financing options in there right now, because I just needed it to do the, the cash offer and then say— and then let it know like And say like, okay, well, if they don't want that cash offer, then we'll talk about what we want to do seller financing. We don't want to make any seller financing option right now. We just want to make the cash offer and say if this cash offer is not, you know, if it's not attractive, we'll entertain— we would like to look at a favorable seller financing option. Catherine, can you explain this? I got to go in here.

Yeah, that's fine. Um, yeah, it's— I don't know why it's adding it in. My whole thing is like, I want to like do the numbers and the numbers tell us what to do, right? And run the scenario each of those. Um, I think it's— yeah, I don't know why it's trying to do all these other things. Um, And I'm trying to read along as you're going.

Oh, am I going too fast? I'm sorry.

No, no, no, no, no, no, no. It's, it's, it's just a lot of detail.

That's all.

You're doing great, by the way. So, okay, go down just a little bit more.

Down.

Down.

Down, down, down, down.

Okay, so offer option 1, option 2. Keep going.

Okay, so it's giving them the different options for them to choose.

Even it would be $3,300 a month. With essentially $792 principal balance due at 24 months unless you refinance or sell earlier. This needs to be part of the refinance plan from day 1.

Um, yeah, I, I, again, I'm trying to follow along with what Tommy's wanting you to do. Um, I would say, um, I don't know, put this into a document, send it over to him, and see like what, what changes and stuff he needs to make. I, I can't speak on his behalf.

Mm-hmm.

Okay.

I mean, I know he's got some ideas around this, but I don't fully Uh, understand what the whole plan is.

Also, we like offered them something like a seller finance deal, and then now he wants to offer just like a super lowball wholesale price. So I feel like we should, yeah, give him the wholesale price, but also write up your terms for seller finance kind of like this one's doing and offer both, but make sure the terms are favorable. Right.

For yourself.

Don't just, you know.

Well, here's what I would say. Write it up both ways, and, um, then you and Tommy can have a conversation with it about that.

Okay. Okay, I'll do that. I'll have it separate, just the cash offer.

Yeah.

And then, yeah, I'll have to talk to Tommy about the other one. But okay, so should I stop sharing?

Um, the other one, the— you're talking about the church one?

No, I meant like the seller finance, because I don't know his numbers and everything, right? I know exactly what he wants.

Yeah, I'm not sure either. I'm unclear. Okay. And then what did he want to do with that other property? The church, that first property that you found?

Uh-huh. He mentioned a seller finance offer, but we didn't really get into the details of it. So, okay, he said That he could do the demo for cheaper than most and that he thinks he could get, um, affordable housing to let him build more than the 6 individual Homes. Like, he thinks he could change density. Right.

So what can— I was actually thinking about this this morning. Like, what can the density on that property be? Is it just single families?

From where it's at now, it can be 6. Let me see. I did so much research on that property. Let me find the address.

Because I would think that the city would definitely want something to be done with that property, right? Rather than what it is, because again, if they get more doors there, obviously they're incentivized because it's more taxes that they can collect.

Mm-hmm.

It helps with the housing shortage issue.

Mm-hmm. Is there still a housing shortage issue?

Yeah, and there's more that's coming. And here's how you know is because of what's happening with TSMC and the growth that's happening because of all of the jobs that they're bringing to the valley.

Oh, with the chip. Plants and stuff.

Yep.

So if you follow the economics of what's happening, uh, the probable predictable future is the— that again, we're still going to continue to have, um, housing shortages because of the amount of jobs that they're bringing to the Valley. It's a lot, like literally tens of thousands of jobs.

Mm-hmm. But I also saw, like, yeah, I always see different opinions. Like, everyone has their own opinion on that.

But that's why you look at the economics.

Mm-hmm.

Right? Like, the economics and the job growth that's being brought to the valley. Like, that's what you wanna pay attention to. Mm-hmm.

So it's, it's R6 right now, but Phoenix, Maricopa, Records can use R-6, meaning 6,000 square feet minimum designation. So, for your target, the math actually is encouraging. If rezoning is viable, R-3A gives theoretical capacity for about 23 units, meaning you're 20 To 22-unit plan sits right underneath the density ceiling. For 20 to 22-unit project, parking underneath is probably the right decision because surface parking could consume too much of the 38,000 square foot site. I'm still treating the exact parking count as a design variable until we verify the current Section 702 standard against the unit mix. Older Phoenix material used roughly 1.5 spaces for 1 to 2 bedroom multifamily units, but Phoenix has amended parking regulations. I mean, it's 2 parking spaces. I do not want to run it on outdated information. So that makes R-3A a very interesting entitlement target. Phoenix materials show maximum height of roughly 3 stories or 40 feet, which lines up much better with the townhome configuration we've been discussing. The biggest issue would be parking building concept. If a parking level counts towards the 3-story limit, then parking plus 3 residential floors What could exceed the R-3A envelope? If you mean parking at grade to residential levels, that may be easier. Phoenix is currently under the 2024 Building Construction Code effective August 1st. So the architectural will also need to test occupancy, construction type, fire separation, sprinklers, ingress. Next action, verify the exact city zoning. And then map the parcel dimensions. Once you have a width depth, I can give you preliminary conceptual tests like this site setbacks, usable building envelope, unit scenario, approximate unit footprint, parking count, driveway, fire lane.

Hmm.

So I want to know, like, what the highest and best use for that property is, right?

Right.

Given when we were standing there and I was looking around, um, the— because we saw those, the, um, it looked like those little mini duplexes right across the street, and then just on the other side of that was those I think it was 3-story apartment buildings.

Mm-hmm. Gonna update. Give me the update. Okay, come on. Don't— I hate when that happens. It's like, just— okay. Hmm, where did it download to?

It's not showing in your download folder?

Yeah, I'm trying to see. Oh, it went farther up. Maybe I'll be able to find it now. Hopefully there's no weird photos for you guys to see. Hold on.

That's funny. Um, Tina, you're still here? Just want to check in with Tina about that mobile home park really quick.

I'm here.

Look, um, Did she send over anything you requested?

She did.

Okay. Were you able to run any of it through Deal Hunter?

No, it came in pretty late last night, so—

okay.

Um, and then I got up early this morning.

Did you send it to this?

So let me— she— yeah, she sent me updated rents, the APOD updated rents. Tax map parcel and parcel 1 for the tax portion. Sorry, Ashley, go ahead.

Oh, my bad. I was just showing Catherine this. The biggest site planning advantage is The long Mitchell Street frontage for a 20 to 22 unit concept. I would test the linear configuration with units building mass running north-south with parking tucked underneath. So, if we can establish the entitlement for around 26 plus, 22 units fits mathematically, but with only about 5% density cushion, the real battle becomes setbacks, parking. Fire access, open space, landscape, building height, which is what we were running into because there's a fire hydrant like right here and you have to be like 25 feet from a fire hydrant. And then the— when you go 3 stories, you have to be a certain amount away from residential And then there's also this weird little thing right here. Do you see it?

Yeah.

So those are like little problems that can make a really affect the density, what you could truly build. The biggest site planning advantage. Okay. We read that. One thing I would not do yet is draw the setback envelope from this screenshot using the R-3 numbers we discussed earlier. We need to verify the actual city zoning applicable development option and adjacent condition— adjacent conditions.

Adjacent. Yeah.

First, the deal hunter diligence standard specifically calls for verifying zoning density setbacks, parking overlays, and development restrictions rather than assuming base standards apply. Next action. I can take this 1 step further and research this number against the current zoning ordinance and give you development feasibility sheet showing the exact required front, side, rear setbacks, allowable density, height, parking requirements, theoretical unit count, and what those requirements mean for the 20 to 25 unit parking underneath.

Yes, do that.

Please do that.

While it's doing that, Tina, do you wanna bring up yours? And then it had— you can pull up your— the GPT thread from yesterday.

Helps if I'm not muted when I'm talking. Do you want me to go ahead and put that— I pulled up the Deal Hunter. Do you want me to just share my screen and put it in there?

Yeah.

Yeah.

All right. Let me download it here.

Let's download this.

I have a Landshark folder.

Okay, let me go ahead and share here.

Do you want me to bring up that additional, like, your email? That you sent me.

Oh, because, uh, because it's not the same.

It'll have— it'll start over.

Let's go ahead and start it over anyway, because now you have actual clean numbers. Because what we were using before was, uh, yeah, let's just use the clean numbers so it doesn't get confused.

All right.

Because you said these are all updated reports, right?

Yeah. So this APod updated is the one that she sent me. This Lines New York PDF is the original. Should I put that in there as well and have it reference that from the original and then also address the new numbers that were added in this file, or just leave the original PDF off?

I believe the original off because there was too much incorrect information on it, right?

I believe so. Yeah.

Yeah, it would get confused. I think I don't want it to be confused.

Look like it added—

oh, this one.

Oops, dropped them in before I told it what to do. Okay. Okay, I need to get used to using the Okay, we're, we're doing some analysis on this potential investment for a mobile home park in Lyons, New York. I've updated or uploaded what she's calling their 2026 APOD. It's their, the profile update with the new rents. I've also uploaded what looks like the tax map for both the Parcel 1 and Parcel 2 where the lots currently exist. Can you run some numbers on this and tell us some— what you think about this deal? What else should I add in that? Yeah, take that out.

Okay.

What should I tell it to give us on this? Just do— so I asked it for—

it's, it's their—

clean that up a little bit.

It's the profile update with the new rents. I've also uploaded what looks like the tax map for both the parcel 1 and parcel 2, or the lots. Okay, so we're wanting it to review all of the documents that have been uploaded and let us know or do some analysis on whether or not this is a good deal.

Is that what we're wanting it to do? Just say run this deal.

Oh.

Okay. What would I rate? I don't know. You haven't given me anything yet.

Yeah, just rate it 5.

Oh, give it— boost its ego a little bit.

Yeah.

All right, let's see what we got here. I went out for a 40-mile bike ride today on my mountain bike.

Already?

Uh-huh.

And you're back?

Yeah.

How long did it take you to do 40 miles?

Well, I left at 7:30-ish this morning, and I came back about 10:45, so Wow. I, I, uh, I was planning on stopping halfway and like dropping into a cafe, so I hauled my laptop with me, which is kind of out of my backpack. So, uh, anyway, I ended up going out to this really cool— was a— it was a lodge, uh, but it wasn't open. And so I'm like, well, looks like I'm just turning around, going back home.

Oh wow.

So I was riding some, uh, you know, some of the rural highways and It's real pretty. I was impressed with myself. The, the 40-mile is— that last time I rode it, I was like, that is impressive.

I mean, I walk pre—

I walk every morning. I walk about 3.5 miles with my husky.

Oh, nice.

To, like, try and burn him out. My legs are burning pretty good by the end. But, yeah, 40 miles on a bike. That, that's impressive.

I'm working it up. I'm working it up. So I'm gonna try— my friends talked me into a centennial, 100 miles on my birthday, which is on the 26th. I— yeah, so we'll see.

That's awesome.

It won't be a hard push day for sure. Okay, so let's see what it gave us here. Okay, there's a lot here.

Market cap.

Here's what they have. Okay, so what it actually—

okay, so there's the property.

Okay, keep going down. The cap rate.

I was curious when they said acquisition cost. They added that in. So to our cost.

Yeah, it's gonna be like your closing costs. What it's gonna take to do inspection reports. Just all the reports that we've gotta pay for.

Okay.

So, is wildly disconnected from the seller's own underwriting right there. The issue Um, 0 maintenance and repairs, 0 funding reserves, only $500. Like, right there, I mean, it's telling you, like, why this is off once I normalize those operating costs. Okay, so open offering $220,000, target $240,000, maximum $240,000.

Okay, the new actually says it's a potential $30,000. Okay, the 8-pad that works in the average.

Yeah, there's their $385 versus $400.

Those borrowing charges matures 3% annually, absent qualifying increases with operating cost taxes, capital improvement increase about 3%, maybe Challenged by higher increase salary versus normalized underwriting. So potential rent vacancy loss, effective rental income. Okay, keep going down, down. NOI $24,000. Okay, 5% vacancy assumption.

I don't think she told us, though. I still wanted to know, what are the— what are the, um, lease agreements currently, and how long have each of those renters been there? Because I thought she said someone had just rotated out not that long ago.

So— I stopped reading. Yeah, support. The current subject property has been seen at 2 prices online.

LoopNet at $295,000, and then, uh, $280,000.

Interesting. Okay, uh, asking $41,000 a site. 6 Park, $28,000. Yeah, they're way off base. Mm-hmm. 5,000. Okay.

Let me know if I'm going too fast, or—

No, no, this is good.

You're going at the right place.

Okay.

So, all right. Dimension accounting on the third property record.

3.6. Okay, so the acreage is a little under It's inconsistent across the marketing and public data.

So, and that's the problem, is that this realtor has done a terrible job being consistent with everything.

Ownership assessment, public record indication.

Okay, not yet verified. Here we go. Current tax delinquency, mortgage lien judgments, easement, exact deed, acreage open.

Mobile home park operating permit, septic approval, water system, tenant compliance, current leases right there.

That's your current leases.

New York specific rental growth.

Okay, so New York is 3%.

Yeah, annual.

Financing analysis, path 1.

Okay.

So my question was then, if this does— the, the NOI provided above is if it's cash, right? If we come in with cash, if you go in with financing, then that kind of brings down your Cash flow, right? So it's not very profitable. Yeah, I mean, I don't know if it, it'd be worth it because, I mean, you just don't have a lot of wiggle room if something were to go wrong or if you wanted to expand.

Yeah.

There's just no money in the deal.

There really isn't. That's why it needs to be renegotiated down again. You know, it's, you know, it's good to want, but at the end of the day, like, you have to do the numbers, and the numbers need to tell you what to do. Like, that's what it comes to.

Oh, for sure.

And, you know, again, they can want, you know, all of this money, but it's not based in reality.

So he— and he bought this back, what, '90, '97, something?

Yeah.

I wonder if, um—

Sure, you can look up the tax records.

Yeah.

Patrick Coca.

Hmm.

So you have to go to the transfer deed records.

Yeah.

And I don't think, um, to get a, a, a transfer record or a deed, you probably need to have an account on that website, most likely, right?

Probably, especially because if it's back in the '90s, um, yeah, yeah, it's not going to be as accessible.

Yeah, yeah.

In Arizona, they only have all that stuff online from 2000 and further. So like in the '90s, sometimes you can go request— like they tried to copy stuff on— I don't know, you can go try to find it at the city, but like not even sometimes expect to find anything.

Yeah, and 5 acres back then, I mean, really, what do you think it was worth back in the '90s? He probably— and who knows, maybe it was a family, he got it from a family member.

Probably. Exactly.

And if he just bought it for cash, like, I was thinking about, like, yeah, just bought it for cash and, you know, just collected the rent and really honestly did nothing with it.

Right.

Even at $300 a month, let's just say 8 pads, $2,400 a month. Like, again, $2,400 a month. You know, for, you know, it's another $20,000, $30,000 a year to really do nothing.

Like, right?

Yeah. Pocket cash, like, whatever.

For sure. Sure. I'm curious. Let me— let's see if it will say— let's ask it. What's the— what is the value of an acre going for in that area?

Well, and it's such an odd-shaped property. Like, when she was saying, like, the back part of the property is like a steep hill going up to that highway, like, you can't do anything with it.

But no, you can't make any money off of that.

And you don't— like, most people don't wanna buy right on the highway. That's like bringing the value down, if anything.

Right.

So the most recent sell, $24,000 on 5.2 acres.

Wow.

So he's— that's like August.

And he has $24,000 for 5 acres?

Yeah. Okay, we should just go— we go— we should go buy our own land.

Like, I mean, if it's $24,000 for 5 acres, which this is 5 acres, then again, yeah, it is. Their numbers just don't make sense at all.

Like, countywide, it's about $10,000. Even if you paid $10,000, you're looking at $50,000 an acre, or $50,000 for the 5 or 4.6. So he's at $280,000. We don't get the homes. They're not ours. Right. And he has a couple of sheds.

And so, like, so you go to the very top. It said to— it started out and it said, I think, to not pay any more than like $220,000 or $240,000. At the very top. I think it started out with exactly like, you got to renegotiate this because the numbers straight up don't work.

Renegotiate.

Yeah, right there.

Because again, I even think this is too high. Yeah, because what did it say? I mean, after, after, if, if we had to go in with like a loan, we're making nothing. $5,000 a year.

So yeah, so tell it to run it if we got it like even at— just run it at $240,000 and let's run the numbers what, what that's going to be if we got it at $240,000.

Drum roll.

Hey, ChatGPT, you should have some like exciting music while we're waiting, you know.

You guys, I have to jump off. Okay. Okay. Talk to you later.

Bye-bye.

Send those over to Tommy, honey.

Okay.

Okay.

I'm talking to a woman today. I think her name's Sarah. I met her on, um, out of Deanna's group. She has a property in Costa Rica that I think she just finally closed on. And so I, I'm kind of— my husband invested with a guy, um, that we met through the Run group, through some other ladies. And anyway, they're a little sketchy right now on the payback. And so I wanted to talk to Sarah and see if she knew if they had any good— if she had a good lawyer over there, because I wanted her to look over the new amended agreement. That's— I, I have to give her a call here in a little bit too. And I'm heading to Boone to sell some orange fencing. Okay, so let's see here. If we did a purchase normalized case, gross rent's all the same, that's all the same. So operating expenses— now the operating expenses seller versus normalized, so this is what would be more accurate Than what she provided, right? Yeah, because he didn't have any, literally any expenses out there. Nope, no maintenance, no, no repairs ever.

It's all good, all good.

So $21,000, that's an 8%. Sure, see, her cap rate's still really high, huh? Bank financing, debt service, 7.5%, 20-year principal and interest.

I mean, it literally comes out to be a wash.

Yep. Monthly cash flow. Let's go potty, right?

I mean, did she say— I, I thought she said you could put on one more pad, possibly.

I—

maybe. Yeah, we could maybe get one more. Maybe I'll shoot back to her and ask her, uh, if she could clarify what Could we expand? Did she— is there one more spot that we could potentially put another home on? And I wanted to find out because she didn't include either, Catherine, what are the current leases and how long have those current tenants been there? I want to know what the turnover is.

Right. Yeah.

Okay, I'll respond back to her on that. Anything else you want me to— I mean, I don't think we have an interest in this property, but this is fun. You know, this is— I'm learning a lot.

Fun to go through and understand all the things. And, you know, there's a part of me that wants to, like, educate her on, like, I think you're doing your client a disservice by getting her hopes up when, like, your numbers are way off base. But again, it's, you know, she's in it for her commission. And sure, yeah, the more it lowers the price, the less her commission is.

Right, right.

You know, so there's— she's not incentivized to actually do the right thing. Yeah, that's true.

That's—

anyway, that, that's a whole other thing. Anyways, this was fun.

It was, it was good.

Thank you for doing this. I love this.

Yeah, I'll, I'll start keep bringing things in, but we'll, we'll work on this one a little bit longer and see what we can finally get out of it. Yeah, be interesting to see. Okay, uh, did Tommy drop off too?

Uh, yeah, he's— there's a conference happening right now for Opportunity Zones, so he went to go Oh, talk to some people there.

Nice. Okay. All right, dear. Have a good one. You too.

Okay.

Bye.