AI Live - Land Shark Mastermind

And, uh, let's add some commas to bank accounts, collapse some timelines. Okay, we are live. Wondering where Tommy is. Okay, while we are waiting for Tommy, I want to share something from this morning. So every morning I walk about 3.5 to 4 miles, and just, you know, again, Um, living the life that I absolutely love. And one of the things that I know like I know is inside of all the years of doing personal development and all of that, manifestation is all about actually living but feeling, experiencing, um, all the things inside of, um, you know, what it's like to live my dream life. And so one of the things that, again, years ago I had created was creating a life that I love, but visualizing it, feeling it, experiencing it, like, you know, all of it inside of living a life that I absolutely love. And, um, one of the things, especially during the years of the kids being, you know, little and all the craziness and everything, was my mornings were always so manic and frantic and, you know, managing kids and lunches and school and just all the things that I had always, uh, really wanted a morning where I was free to like wake up, get out of bed And wake up when I was no longer tired and then go for a walk with my dog for as long as I wanted to and to be able to spend time, you know, with God and in communion and just really, you know, self-reflecting and having that time. Anyways, so now that is literally the life that I live. Like, I'm clear that years of Really breathing into it and feeling it, and it started even when I was little in Canada because I freaking hated the cold so much that I just wanted it to be warm. And so here I am, September 22nd, and this was my walk this morning, and hearing the birds sing, and I feel like it was like, you know, walking through the Garden of Eden. Like, I absolutely love it. So— What I'm curious about for all of you inside of living lives that you love, are you just existing or are you actually like intentionally creating and living into, leaning into, visualizing, feeling, experiencing, like smelling, like all the things that would have you have your life be like, oh my gosh, I'm literally living the life that I love. So what is it that you're doing to make that happen? And to me, this picture this morning just embodies Of what I visualized for years and years and years and years, and literally this is what I'm living out. So I'd love to know for you, all of you, like what are you living out? Anyways, that's my little aha moment for today. Um, and there's my my happy dog Chewy. Um, so Tommy, I know you're finally here, so I just wanted to share my little.

Yeah, no, that's a beautiful picture. The, um, and the story that goes along with it, right? So, uh, it's important to, uh, to know where you've been more than it— I, I really believe it's more important to know where you've been than it is to know where you're going. Um, and I think that's why I've always been okay with the, the, the struggles I encountered was because I've I've had to look at them as learning lessons, but I've also come away from things trying to just walk away with no regrets, right? Like instead of success being the goal, to me, the goal is helping people and not having regrets, which makes success stupid easy when you do it like that. So, but the The, the picture you took though was pretty cool with the way that the bougainvillea leaves were in the grass. And like, that's just not a common situation to happen that way. So it's a good catch by you.

Yeah, I came around the corner and it was truly just spectacular.

Yeah. Um, one thing that I discovered just this morning is that ChatGPT deleted all of our avatars off of our, um, GPTs.

What?

ChatGPT deleted all of our avatars.

I don't understand what that means.

So if you go on and you go look for Deal Hunter by Land Shark, it no longer has an avatar. It's a it's a blank box. Here, let me show you real quick. Real quick. Share. Do do do. Go to screen one. Do do do. Watch the big screen. Am I on the big screen?

Yeah.

Okay, I'm inside of ChatGPT Titan Titan 23 Fund Ops. Right, and there's no picture. Oh, upload the photo. Huh? Upload the photo, Telemoto. So go fix all of yours because yours are broken too.

Got it.

Okay, so inside of here that they did—

where in the hell? I had a Titan 23. There it is. Oh, that one goes in there. Now the other thing I'm doing, and you might want to do this too, Just in case anybody's been using your GPT. Check this out. I need to, I need to update the instructions section so that it has a confidentiality of information there. I don't want any users to get access to the knowledge sources directly. Or the instructions on how this GPT is functioning and operating. I'm going to copy the instructions into the chat right here, and I'm going to need you to update them so that they are fully, uh, able to fit in the 8,000-character parameter, but also include all the information that I've pasted into this prompt, and I need you to add the protection of my information and knowledge as well. Copy that and go. And so now it'll, it'll go do that. And then the other thing is Um, it's going to— it'll give me this. Hopefully it'll be able to fit in this section right here. But while this is open right there, what I want to do is I want to just make sure that I don't lose it, so I'm going to open an email. So it's done. I think it's done. That might be, that might be 8,000 characters. We'll see. Copy it. Come back over here. Select all. Oh, dang it.

So you're replacing what's already there?

Yeah, I'm replacing it with the new instructions.

Okay, but now it's saying I can't see what those red words are.

Yeah, back that up. Keep all this information, just make it 8,000 characters or less. So I copied and pasted what it gave me and told it to remake it. And this is where the work begins inside of building a GPT. Some people don't even know. Oopsie, try again, because I made an— I made a change in an edit, it messed it up. So create Um, a new message, a new instruction block that is 8,000 characters or less, but use all the information in this instruction block. Just cut the words down, get rid of, uh, get rid of non, uh, words that are not needed. So it'll remake it again. After my Twinkie quits, quits shrinking, I can probably copy and paste it. Think the Twinkie's done. Copy and paste it. Dang it, still too long. So go back. Dang it. And, and so this is the redacted version number 2, right?

Mhm.

So I got to go in there and do it again. This is still too long. Make it Not more than 7,500 characters. Don't make it more than 7,500 total characters for this instruction block, but keep all the information intact. And so I'm praying that it'll, uh, it'll produce what I need. There we go. Come on, short Twinkie, short Twinkie. All right, I think we're there. Copied it. Oh my God.

It's still too much?

Yes.

Is it saying by how much?

So to figure that out, I'd have to go to Word, File, Open. After like 2 or 3 times, yeah, it gets frustrating. You're like, you know what, you're, you're just fucking stupid.

Hey, hey, hey, we're live.

It only counts, uh, it only counts word count, not character count. So I've got 10,500, uh, 10,050 words as of right now. So what I'm going to do is I'm going to go in and tell it to remove every and and replace it with a slash. I'm going to tell it to remove, um, remove every 2-letter word, um, as long as it's, it's legible and makes sense. Because I don't understand why there's— it's having such an issue. Now, the other, the other way to check it is to, to like start deleting letters until it stops turning red, and then you can start figuring it out, right? So that's one whole sentence going there.

Morning, Ashley. Morning, Luke.

Good morning.

We are playing with ChatGPT because, uh, uh, it did an update and a bunch of things changed, but Tommy is, um, fixing—

Um, I'm showing people. I'm actually like, if you're paying attention, uh, you're gonna need— you're gonna want to go back and learn how to do this because this is literally how you build A GPT to work for you.

Mm-hmm.

So these are the rules on how to do it. So I'm just—I'm literally showing people stuff that we charge ten grand for. So because I need to get it done, so everybody gets to win-win today. So let me make a prompt real quick. This is still too long for me to put into the instructions box. Rewrite the entire thing. Keeping all the information intact and, and the message clear, uh, but remove all of the unnecessary words like A-N-D, and A-S, as, and letters like A. Replace anything that, um, is a short word with a slash or a hyphen, um, to cut down on the amount of characters. I need this to be under 7,500 characters In total, so that I can copy and paste it into the instructions block. Ready, go.

So are they allowing these GPTs to stay?

That's why again this is why I'm updating it because I feel like if it doesn't get updated, they're going to delete it. Mm-hmm. Okay. So and like months. Maybe even years of work will disappear. So trying to avoid that at all costs.

That's crazy that they can just delete—

It's a platform though, like MySpace. Yeah, MySpace. Go ahead, Catherine.

No, I was just gonna say, like, from a business perspective, the, um, I love that. The data storage that it takes for them and is costing them to keep all of this. I mean, they have to weigh that out. And there's— I'm trying to remember what book it was. There's one of the brilliant books. I don't know if it's Good to Great. It's one of the books, or— I don't know. Anyway, they actually go through and do cost studies on how much it is to actually keep a customer. And if a customer costs too much, they'll literally fire the customer. They have a story of Verizon doing that. There was somebody who just complained, complained, complained, complained, and they finally got to the point where, you know, they refused to take care of that customer anymore. They were like, it's just, it's too expensive. Like, it doesn't, it just doesn't make sense anymore.

Right. Yeah, I was hearing other stuff about that on AI where they let people have like free subscriptions or really cheap subscriptions for the first year, and it costs them like a ton. And now they're trying to raise prices, and no one wants to pay that because they let everyone in for so cheap at first. Yeah, that it's like hard to get them to pay the— what they need, I guess.

Yep, that's how it works. Well, it, it appears Um, that, um, we got, um, we got that to work. Uh, finally it went through. So, um, Catherine, do you have a property you want to run, pull up? I'll stop sharing, um, because I'm going to get Deal Hunter fixed and OZ Wizard fixed and all that. So do you want to run a deal real quick? And then, oh, Ashley got an update on that industrial building.

Yeah, they went with someone else's contract.

Yeah, they didn't tell you the price though, right?

No, I tried to get them to, and they—

Yeah, and they won't. They won't. So, and here's what I know about psychology, like, and I want to build a— I want to build an AI tool that allows you to understand psychology. Of sales and marketing, because then when you can when you can take somebody's response and put it into this, it'll tell you whether or not they're lying or not. Statistically lying or not. Okay, not going to accuse anyone of being an outright liar, but I'm getting close to making this thing, so it's it's pretty cool. Catherine, you have the Ozzy Wizard GPT on your. account, so you're gonna have to fix that one. Okay. I'm gonna go fix the Land Shark Investor Survey now. But yeah, they went on to work with somebody else, and that's, um, again, the direction I'm okay with because, uh, Catherine was with me yesterday when somebody called me on a deal from a month ago. I was willing to pay $325,000 back then, they took somebody at $350,000 who didn't close. Um, and so they came back and they're like, can you do $325,000 again? And I'm like, um, no. So, um, because it's been over a month, and in that situation, um, the, the, the— I'm looking at different deals right now And so I have a higher return on 4 other deals that I'm working on than that one. So that guy, I have to tell him like, you're gonna have to sit back and wait or just like go find someone else. And it's the only, you know, the only other way I can get better on that is to go back to him and say, listen, I know I told you $325,000 before, but because of the situation where I've got I've got a deal that's going to give me 30 to 40% returns. I'm not going to entertain one that's only going to give me 15.

Mm-hmm.

So in order to get to 30% return, he's got to drop $30,000 or $40,000 off the price. And so I might have to do that to punish the seller. And guess what? I'm going to say it— punish the seller. Because again, this is a seller that's getting 100% of whatever we, we decide to pay. And so that means that whoever is willing to pay that price is what the market or what that property is actually worth, not the comps. Comps are just a guideline, but literally the prices or the value of the house is what somebody is willing to pay.

Deal Hunter Report: 5818 North 63rd Avenue, Glendale, Arizona 85301. Primary strategy: fix and flip. Backup strategy: hold rent only if acquisition basis gets materially lower or financing is unusually favorable. This analysis follows the required Deal Hunter workflow and information hierarchy: user-provided facts first, verified market public information second, assumptions only where needed. 1. Executive deal snapshot.

Okay, so asking price is $237,000, uh, user-provided ARV of $360,000. We don't know if that's true. The lot size was built in 1960. It's a 4-bed, 1.5-bath, um, preliminary rehab $35,000 to $50,000, rehab underwriting $40,000, recommended target acquisition of $214,000 to $223,000 instead of the $237,000. Maximum, uh, SAFE is for a $40,000 net profit, strong investor, basis 70% rule. Renegotiate. So why? The $360,000 ARV is plausible, not fantasy. Recently verified sales, $335,000 to $360,000. The problem is the basis at $237,000, a normal rehab plus transaction finance holding all of that. It only— yeah, that's not enough. It's too thin. So ARV and comparable sales support, market context, property public findings, rehab, CapEx. Went through all the things because I added pictures. Flip economics, purchase, 237 rehab, ARV.

What did it give it as far as like a—

sorry, go ahead.

Did that get net profit was only $25K?

Yeah, that's what it's saying.

Got it. So if you lowered your purchase price, you're going to increase your profit margins, right?

That's what— yeah, it says that up here. So rather than $237K, which is what they're asking, it says renegotiate Down to at least 223. But 212 would be the better one.

Got it. Yeah.

So roof is newer, 1 to 2 years old. AC is six years old. Yeah. So if we look, I want to know what they what it last was purchased for because that'll give us an idea of. So here's stress test, red flags, blah blah blah.

Hold on.

Um, please go looking through all the public records and tell me the last time this was— house was purchased and how much it was purchased for and who it was purchased by.

So the land shark investor personality type is no longer in the GPT Store. Really? Yep. Damn, scared to look at this one. This is free estimates. No, it's still published. Big sigh of relief right there.

I dug into the public-facing county and MLS-derived records for 5818 North 63rd Avenue, Glendale, Arizona 85301, APN 14456013A. The last confirmed arm's-length purchase I can verify is September 24th, 2008 for $50,000. The property had been listed at $49,900 in August 2008 and August 2008 and was described at the time as July 2nd as a lender-owned Hein. What I cannot yet verify from that September 2008 deed: the MLS record shows Alex Mogo of RE/MAX Achievers as the buyer's agent, but that is the agent, not the purchaser, so I would not present that name as the owner. Redfin. Maricopa County's own recorder guidance says the definitive way to establish the purchaser is to pull the recorded deed affidavit of value. The county sales affidavit dataset contains the grantor/grantee, sales date, and sales price. Maricopa County Recorder's Office. What we have confirmed: item finding property 581, Item 63rd, Glendale, AZ. AZ at 5, Glendale. Glendale. A last confirmed $450,000 sale. 2008 sale. 2008 sale. Right. Sale under owned RE/MAX Achievers. Not the buyer.

If the current— Okay, so that actually says a lot. So this was bank owned, right? Okay, so $237,000 is ridiculous.

So you come in— where would you come in? What's the ask here? Go and ask it right there. Um, give me the, um, most aggressive offer, uh, possible based on the information you currently have.

Based on what we have now, I'd make the aggressive opening offer $185,000. That's not because the property is worth $185,000 today. It's because you need enough margin to absorb the unknowns: the possible carport fourth bedroom permit issue, one five bath layout, 1960 systems, rehab creep, financing carry, resale costs, and the fact that the seller's $360,000 ARV is supportable but not guaranteed. Aggressive offer ladder. Position price, how I'd use. Eye-opening anchor, $185,000. Maximum negotiation leverage, a strong counter, $195,000. Still a very attractive basis, good deal, plenty of room if rehab stays controlled. Target ceiling, $215,000, $220,000, $223,000. Using the same rough underwriting assumptions from the prior analysis, $185,000 rehab, 6-month hold, hard money style financing, and normal resale costs, $185,000 at the current $237,400 as is fast close. Short inspection period. A clean negotiation line would be, we can move quickly and buy it as is, but because of the renovation scope, age of the property, en pointe 5-bath layout, and the need to verify the enclosed carport bedroom configuration, I would not jump straight to $210,000. Move in controlled steps. I would not jump straight to $210,000. Move in controlled steps, $185,000, and make them earn every increase with either price movement, seller credit. Seller credit, an even stronger play is option A, $185,000 cash/private money equivalent, fast close. Option B, $210,000 to $220,000 with seller financing, low down payment, low interest, no points, interest-only period, and no prepayment penalty. That gives them a higher nominal price while potentially giving you better economics than paying $210,000 cash. Next actions: send the $185,000 anchor now, but keep your true acquisition target around $200,000 to $215,000. If they counter, bring me the counteroffer, and I'll structure the next move so we preserve as much spread as possible.

That's cool. Okay.

So, okay, so if we were to negotiate this and get it at, say, $200,000, let's run the numbers with that and what it would, what it would come out to. What's the, with the rehab, what would, at the bottom line, what would be the profit?

Absolutely. At a $200,000 purchase price, the deal starts looking materially stronger using the same assumptions from the prior underwriting. So we're comparing apples to apples. Item amount purchase, $200,000. Rehab, $40,000.

Okay, so now they're saying the projected profit would be $65,000. That would be worth my time.

But again, let's look at it then again from a sponsor situation where you're splitting that profit. You might have to go with a buy and hold here because of rates right now, right?

Okay.

So inside of this, do a BRRRR on this just to make sure you got a plan B exit.

Okay. Okay, so running this, we want to make sure that we have a plan B exit. Let's do a BRRRR numbers. And see what this comes out to.

So, um, Ashley, do you have a deal you want to run?

Yes.

All right.

Okay, I'm gonna stop sharing my screen. So you can share yours while mine's apparently taking its time researching.

BR backup exit.

So I found this— hold on, this thing's in my way. Oh, okay. So this interesting little property here, it's listed, it's like a fourplex. This is the street view. It says it's opportunity zone, but I was looking into it. And it's only Opportunity Zone 1.0. It won't be 2.0. So I'm like, is there even enough time in the year to even do anything?

Yeah, no, in July, July they changed and made a mandate. They're pushing to try and get the mandate switched. It might come out in January that they switch the mandate back, but unless you have, uh, 10% equity in the property currently, Then it's not going to— they're not going to allow you to use 2.0 money on 1.0 land. So, and typically Opportunity Zone doesn't work on residential property unless you plan on making it a rental.

Okay.

So if you plan on making it a rental, you can do it as an Opportunity Zone, and it also Hmm, there'd have to be a little bit of work on it to understand whether or not— I think you should be able to hold it in an LLC without it being corporate because there is a law now that says corporations can't own, um, rental property. I don't—

and, and, uh, build a portfolio through the residential, like they can't own more than 10 or something.

I— yeah, we gotta— I gotta— it's gotta be researched to figure that out. But that typically opportunity zone is for is best used for, for complete redevelopment, meaning like demo and replace, or just ground-up development.

Okay, well, either way, I wanted to ask those questions and show you this property. Remember that one lady we were talking about yesterday is looking to build or maybe interested in a fourplex? This is a seller carry. They said in the description they're open to a potential seller carry. It's this whole parcel.

So I, I, I'll be honest with you, um, uh, when I was talking to her yesterday, I'm like, hey, I, I want to show you this. I want to get you in touch with Ashley about this property. And she's like, just give me the address, I'll go look and see if I'm interested. That's a red flag for me. Anybody else gonna cut you out? Or like, anybody else feel a red flag from that? Yeah, I'm not hallucinating. So, um, yeah, that's what I encountered was, was, um, uh, and, and so she's like, you know, I would never do that or whatever. And, and people get insulted like that. Like, I mean, for me, if I told you— if somebody told me, hey, I got a piece of property, but I want you to call a realtor to To deal with it, I'd be like, okay, great, and I would just go call the realtor. Especially if I want to do the deal. Yeah, right. So people who are like, oh, I I want just tell me the address, and if I like it, I'll let you know.

Gotta know how I feel about that. Anyway.

Yeah, I, I mean, in your Deal Sauce thing it shows like it's got the inherited part in there and all that. That's cool.

Um, yeah, which, look, they got it, they inherited it, whoever they got it from. Uh, Angela got it for $100,000. Oh wait, what is this? Mortgage recorded.

So that was a 2006 mortgage that, if you scroll up, got foreclosed on in 2012.

But how'd you get it back?

That became a warranty deed. What?

But after the foreclosure, she, she's still named on it, right? Oh, oh, she sold it.

Notice of rescission is right above it.

Oh, she got it back.

It says notice of rescission. Then there was— she sold it. It looks like, or got it refinanced right there, and then it went into another mortgage for $175,000.

But is she back here as a guarantee?

Yeah.

So somehow, yeah, she's still holding on to it, but now she— I think she arm's lengthed it to someone, and now look how much they went up in price.

But she gave— look, right. But if you look, it went from Angela— it went from Angela to buyer Michael Brown and Angela, right?

So she's still—

Right.

I know.

And so they're trying to list and sell it for $899,000, right?

Seems really high.

Um, so do comps in the area. It says it's a— it says it's a 9-bedroom.

Yeah, there's multiple, there's 4 units, I think.

Okay. So again, use your cap rate. This property's a 9 cap, maybe a 10. I would make it a 10 cap. So this is how you figure this out. You take the 8, go in here.

I asked Opportunity Zone, can I still do, run this deal in the same, Same one, or should I start a new one? Like, see, I asked it, uh, I asked Deal Hunter about Opportunity Zone, right? Should I continue in this same conversation?

We gotta get you to use— we gotta get you to use, um, uh, what's called, um, uh, Opportunity Zone Wizard. Opportunity Zone Wizard will let you Um, tell me more about it. Learn more about it. Yeah.

Okay. I'll— I'm happy to do that, but should I start a new conversation or should I continue in the one I'm already having with Deal Hunter on this property?

I would start— I would start a new conversation. Just copy that block right there. Oops. Oops.

What block? I can go back to it.

It was the one with the address. That's—

oh yeah, I have the address already in my hand, or like copied.

Yeah, and then put in there, you know, run this deal, and then let it run it. And then after that prompt, go tell it that you want to do a, uh, see what it is at, you know, what the price is at a 10 cap. So, and then I'm going to—

I found 2 other things, is I found a property that's so weird off Black Canyon Highway. Like, I don't know why anyone would want an office building there, honestly. But it said that they had permits approved to have like a big billboard built there. Is that of any interest?

Yeah, we can look at that. That might be interesting.

Okay, where am I at? There I am. Okay. Oh yeah, it didn't like it in there. Let's see how it's right here off the I-17.

I-17 and where?

Canyon Highway, I think northern.

There's Butler, so it's between Dudlop and northern. Yeah, it's not a bad area. What kind of building does it— did they say they got there? It says it's a 1,700 square foot building. Looks like it, uh, was a residential house at one time.

Mhm, turned it into an office space, right?

And so they're saying they have Plans to put a billboard there too? Yeah, or there was once. Go to go to if you can go to the Google Map and see where that's at. So because a billboard there is going to run you anywhere between three and five thousand a month. Mm-hmm. Uh, without electric, and then you could probably provide electric and sell them electric too.

So. What do you want me to do? Sorry, go to Google Maps?

Yeah, if you're on Google Maps, you can do the drive, you know, do the drive-by thing and drive by it to see how close it is. So you're right off the highway, and if you had a billboard right there, yeah, if they got permits for— I'd have to see the permits for a billboard.

But okay, well, let's read what it said.

I think it said Um, did you run it through Deal Hunter?

No, I hadn't. I just, I was just looking at all the deals. Yeah. And then run it, run it.

Ready for this? This is the Deal Hunter Show, so we got to run it through Deal Hunter. So pull it into Deal Hunter, throw the address in it, and tell it to run this deal. And then, and then it'll give me an understanding of, uh, of the value to it.

Okay, I didn't think— like, like, the only thing I liked about the deal was the, um, billboard. That's why I was like, I wanted to ask you first before I—

Yeah, no, and, and Deal Hunter should pick that up too.

Okay, so this one finished. Yeah, but I'll do this. Oops.

Yeah, just start cooking that one and we go back and look at the other one real quick. Okay. Whoa, whoa, what'd you do, swerve off the road?

No, I pushed the wrong thing. Oh, okay, that one's going. And then we can do this one. Actually, this one's much more interesting than the newest price, than the it first appeared. I pulled the latest listing data plus operating numbers. There are 3 really different plays here: existing cash flow, seller finance cash flow, and adding density. The most current broker feed I found shows 899 active, down from the original 1.1. Some syndicated— syndicated sites are still showing $979,000. So there appears to have been another recent reduction. The property is zoned R-3 with 4 units and 3 buildings, 9-bedroom, 6-bath, and a large 1,800-square-foot workshop unit. These are the different units: a 3-bed, 2-bath renting at $1,500, a studio renting at $800. That Depending on the area, I don't know. Middle house, 2-bedroom, 1-bath, 900-square-foot. Highland house, 3/2. This property also has roughly a workshop of 1,800 square feet, 4 storage units, substantial parking, and access from both Coolidge and Highland. There's an important financial discrepancy. The current MLS Delivered financial field reports. Gross income of the— of $67,000, operating expenses of $14,000, NOI $61,000 a year or $5,000 a month. That produces exactly advertised 6 cap. So the advertised cap rate actually checks mathematically, but the individual rents shown in this listing only equal $67,000 a year. That means the $9,000 a year of income somewhere that isn't obvious from published unit rents. That is the first thing I'd ask the agent. Seller finance scenario, uh, first position seller at 6% interest only with 40% down. Jesus. That's— yeah. If they did purchase price of $899,000, almost $359,000 down, seller carry $539,000, rate at 6%, payment $2,690 a month. That's approximately $30,000 a year cash flow. Before acquisition cost, DSCR, we would appropriate 1.9, but I wouldn't stop at the existing 4 units. This is part of the fits your strategy, particularly the lot is approximately 4.0— wait, 0.4 acres and R-3 standards generally permit for 15. dwellings per gross acre, increasing the— to approximately 17 with bonus provisions, 6 units at base density, 7 units with bonus. So I would investigate 6 to 7 total unit site, not simply accept their fourplex. Adding 2 units without relying on bonus density. The 1,800 square foot workshop could be a sleeper. This is probably what I'd investigate before demolishing Or building anything. There's already approximately 1,800-square-foot workshop attached to the middle house. If Phoenix would allow some or all of the structure to be converted into residential units, you potentially could avoid a large portion of the shell construction cost. Existing 4 units, workshop conversion, even 2 modest 7 to 8-foot Square foot units could dramatically change the property's economics. If they rented for 14 to 16, you potentially adding roughly $2,000 or $3,000 a month gross without trying to build an entirely new apartment building. That much money would gross you That much more in rent would gross you $112,000 gross annual at a cap rate of 6%. That begins creating a meaningful refinance equity. And there is another angle. Split the property. The listing specifically advertises the potential to split into 2 lots, and the parcel runs street to street from Coolidge to Highland. That deserves serious investigation. Imagine essentially separating Coolidge side, 1 parcel, Highland side, 1 parcel. You could potentially retain the existing structures, reposition 1 side, develop the other, or eventually sell, refinance the parcels independently. I would not assume the split increases allowable overall density. It generally doesn't work that simply, but it could create— consider flexible flexibility in financing, development, reposition, or phasing. Current rents also worth— look worth examining. The existing rents appear relatively inexpensive for the location, although the property's age and condition matter enormously. I did see that the street that they're on isn't like— it says opportunity zone, but it looks like a decent street. Like, other people on the road are taking care of their houses and stuff. Current 18— oh, 85013 rental inventory shows everything from older 2-bedroom apartments to newer 2-bedroom apartments. Newer projects in the immediate Uptown Coolidge area command substantially higher rents, so I wouldn't underwrite aggressive luxury rent here.

Right.

Opportunity Zone, there's conflicting data. However, commercial listing database Flags Opportunity Zone as a no. So for purchase of you underwriting, I would not rely on market language. It's not part of the 2.0 nomination track. My underwriting ranges—

And you can use that as leverage. You can say, listen, as of 2027, this is going to no longer be Opportunity Zone. So therefore the value of the property is actually going to go lower.

Right.

So it's your choice. We can go lower now or we can wait and see how low it goes then. Mm-hmm. Because again, if you can put 10% equity on this, it'll, it'll be— it'll hold its, uh, Opportunity Zone status till 2028.

Okay, so 10% of what they're asking, the $899,000?

Of what your, um, I believe what your fund is. So But I think, I think the 10%, I'd have to double-check, and this is where I want to use the OZ Wizard.

Mm-hmm.

Um, inside of that new legislation, I believe it's if we're going to raise $10 million, we have to have $1 million in equity into it. So if this property, if we bought this property at $600,000, we'd still have to show $400,000 of cash sitting somewhere in that In, in the name of that equity fund. Does that make sense? Yeah. So, but based on this, you can, uh, we can prompt with it later, but, um, I would say tearing everything down and rebuilding 7 units, you know, or whatever you can afford, whatever, whatever the land will let you do.

So I like the idea if they would come down on price. I like the idea of converting it, adding 2 more units and trying to like make more money monthly.

Well, the money— the, again, the buildings that you have there have over 50% of expenses and CapEx that need to be done in order for you to maintain that.

Oh, oh, you're saying for Opportunity Zone?

Yeah, in order to do an Opportunity Zone, you have to have— you have to, you have to improve the property by over, over, uh, you have to improve the property by 100%. So if you buy it for $800,000, you have to spend $801,000 to make it better, right?

So that— I was reading that here, it was saying, um, You would have to substantially approve it. You would have to put allocate building basis. You'd have to put $650,000 into it if you—

Yep.

And then it said the other benefit would be the 10-year appreciation benefit. But I'd have to— Best Opportunity Zone strategy, potentially heavy rehab, redevelopment, increased density rather than buying the existing and making only light improvements. One technical item I would still have your Opportunity Zone attorney confirm before closing, the 2020 census tract mapping for this parcel of 2.0 nominates Use of the newer tract geography while the legacy OZ designation is tied to the original designation geography. That distinction is important enough that I would not let the seller, broker, syndication platform substitute its Opportunity Zone checkbox for a professional tax determination. So it's saying there you need to look into it more and see if that would even be allowable.

Right. Yep, because again, you can, you can tear it down and go back with just a 4-unit. You can tear it down and go back with, um—

But then the cost to build it probably wouldn't make any sense.

Well, the nice thing about Opportunity Zones is that you don't have to make money back with them for the first 3 years. So you actually want to have what's called a J-curve, and you can look this up, it's called a J-curve effect. Or J curve finance financial wave inside of the fact that you're you're you're you're coming in at 600, it's gonna drop to like 300, and then it'll come up and appreciate. So you want three years of like two to three years of depreciation because your investors can enjoy that depreciation too. Right, Catherine?

The important 2026 timing issue: the original designation remains effective through December 31st of 2028. Arizona also nominated the next round of O2 tracks, which is scheduled to begin. The rules and timing for new investments are therefore important if you're considering purchasing this property. So yeah, something you said about like, yeah, the timing, like even though it's still technically opportunity zone, there's something to do with timing would have to be Like to make sure it still qualifies, right?

Right.

So yeah, and then this one is the one off Black Canyon Highway. It says executive deal snapshot. Um, it was listed for $599,000, it's been cut to $399,000. Long market period and repeated price reductions are the biggest Immediate negotiation leverage at this price. The verdict is renegotiate. What you're actually buying: the current market describes a 1,700 freestanding square foot freestanding office building vacant with three private offices. Thirty-foot freeway sign was previously permitted, subject to possible renewal.

Right there. And again, that's the part you're going to want to see.

The site is directly along I-17 corridor. The billboard signage angle could immediately change the value, but right now I would treat it as unverified upside, not a possible purchase price justification. Critical point, do not buy the billboard opportunity until you have the old permit number, approved plans, permit expiration status, confirmation of Phoenix that Renewal reissuance is feasible. ADOT confirmation, structural site feasibility, estimated installation costs, actual potential billboard lease revenue. Why wouldn't they do it? That would make— why would they not do it if it was approved? Like, that makes no sense, right?

Well, that's, that's the question you have to ask in order to understand, because if they say, well, we didn't do it because we didn't know how, okay, great, there's value add. But if you find out, oh, well, we pissed somebody off and they won't do it. Oh, well, then what are our chances?

Well, and, you know, going back to what we learned about the whole Wenden thing, because everything was in her personal name, it wasn't even in an LLC. Like, and it made it impossible to actually be transferred over. They marketed it as though they could do that.

It was marketed as commercial. And and unfortunately, the the commercial aspect of it disappeared when everything was in her name. Mm-hmm. You know, it's just not going to work that way. So oh my gosh!

I don't see this property being worth a freaking dollar. Honestly, who want who wants an office building right there?

A contractor who can't park his vehicles in the place he's at or the space he's at.

Mm-hmm. That's okay.

That's— oh, did you hear that? She went, oh, because now you're paying attention.

Mm-hmm.

Right.

Well, I mean, I think about like there are places like even here in Scottsdale where on the main— I'm trying to think what main roads it is. That the houses got converted into, like, tax offices, like all the—

Down 7th Street and 7th Ave, they're like restaurants and everything. Yeah.

Yeah.

So it— that's where a drive-by would be, I think, would be worth it to go see what's actually happening in that area. Mm-hmm. Because if it's getting converted to that, then that would make sense, right? Yeah.

Owner-user economics is a much stronger angle.

Yeah, yeah. So I mean, again, this is something— was there owner financing available to this?

Um, I don't remember seeing that.

Yeah, I mean, the, the, um, right there on path 1 If you go up, it shows you on path 1 how to really get this good is you go with the SBA 504 owner-user and you advertise for somebody to come in and get an SBA owner-user. You can be the 50% bank lien first position and then let the, uh, uh, the SBA do the, uh, uh, um, I have a hard time saying it. It's debenture. I said it right?

That's a weird word.

I had to look it away. I had to look away from it. Debenture. And that basically is like a loan on top of what you've got with the bank, the first bank. So, but yeah, I would try to come in real low or owner financing on that.

Mm-hmm.

And then again, if it's in an opportunity zone, knock it down, build something different.

Mhm.

So it's C-1 zoning. We can build a different building. So, um, it is 10 o'clock. I am going to, uh, I want to share this building that I was looking at the other day with— because they've lowered their price 13% in 3 months. So it tells me that if I come in even lower, they'll probably do it again.

I— can I show you one more? And 2— I'll take 2 seconds.

No, no, no, no, no, you've had enough.

Okay, I'm done. Show's over.

No, I love that Ashley is like going and finding all these.

Like, I want to do this one, I want to do this one. I love it. I love it too. I think it's cool. Um, but this is the one that's over by the Cortez property. I went over there the other day to check out the Cortez job. And see where they're at. And then seeing this one, this is one that's been on the market since July, um, and it's dropped from 2.8 or 2.3. I think it went from 2.3 down to, um, yeah, 2.3 down to 1.9. And so it's only a 0.8 of an acre, and it's in a cul-de-sac, and it's a corner lot. So it's got a lot of, it's got a lot of to it already, but it's a 1975 construction. And so it's 51 years old. I know that for a fact. So after I, after I did the deal hunter run this deal, I said, what about doing a scrape and building something back? And so what it said was to go and it was like, yeah, great idea, but you want to go look at your setbacks. And so if you don't know what setbacks are— and this is all I wanted to show everybody, that's why I knocked Ashley out of the way, so I could help everybody understand— this lot is only a 0.8 acre. And so the setbacks on this lot are 40 foot from the front, 15 foot up the sides, 35 foot off the rear. Okay, and that's what they'll allow me to build on. That's what that looks like. So this is the front, like right here. I gotta go 40 foot back this way. So there's my 40 foot there. I, I, I have to like, I can angle it right here a little bit. But anyway, this is 40 foot off of this edge, 15 foot this way, 35 foot off the back. So again, in order to put a building in here of, of, of, 'cause this is 33, uh, Uh, 3,300 square feet currently. What I would propose to do is come in here and use just this sidewall, just use the sidewall like, like, um, in, in these construction projects, what they do is they use the sidewall to build off of. I want to make sure I don't lose it.

Come on.

There we go. Let me scoot it around, get rid of that, and we're going to draw, draw what I, I would think we can do with a house here. So I'll use this whole side wall. I'm going to come out to the edge right here. I'm going to go this way with it. I'm going to use as much as my— as much of my envelope as I possibly can and see what I— see what I have left. Because like, I have this whole area here that I could do something with, but I, I think that's a good— I think that's a good connector right there. How many square foot is that? 11,000-square-foot house. I don't know if I need it that big, but, um, the opportunity now is there, right?

Right.

Because now I know, I can see in my head, okay, there's my envelope, that's what I can do. So yes, I can go there, I can knock that house down and do all that. So, and I can use that one side wall as my, as my protector against having to do a whole new build. Hmm, right. So, and then I even have room for swimming pool, casita, because it does. It says I got it. I can, I can put my swimming pool up against my back wall if I wanted to. Okay, if I wanted to.

So, Tommy, they just— the people with the commercial agent just text me and said, hi Ashley, I'm reaching out because I was just told that the offer that I mentioned to you yesterday for the warehouse on 22nd Ave is not very solid. I have read all of the scenarios that you laid out in your NOI, and I think the owner may carry option would get some attention. If you want to write that up, I'd be happy to present it.

But he wants to do which one now?

He wants— you know how we left the offer like, oh, if you don't want to do cash, then we'll consider a seller Carry option, right? He wants to hear what that offer is, but it's gonna be— saying— why does he keep saying, I think? Like, send the offer and tell us what he actually said. No more, I think he'd like this better. I don't think he— that means you're not even asking. You're like speaking for the fucking seller.

And he is. And that's what— that's what's, um, go look it up. He's acting in what's called the single agent mode. And so to, to verify that, you just say, are you acting as a single agent or as a transaction broker? And if he says I'm acting as a transaction broker, then you can call him full of shit. But if he comes back and says I'm the single agent, well, he can do all that and more. He can actually sign the contract for him.

Wow. I don't think—

I worked as a single agent.

A single agent, I don't think, because he— I asked him about the other offer And he said another agent brought it to the table. Right. So I think like someone else in the brokerage is also looking, or I don't, you know. Yeah. I don't think he's like the single agent. I don't think that's the situation.

Well, I think it's funny that you were like, oh, that we lost a deal to somebody else. And I'm like, wait, let it cook. Like they always, they always come back like crazy narcissistic ex-girlfriends from high school. They always come back and they're like, please take my offer. No, no.

So he— so you offer— you— I'm gonna say, so you gave the seller our LOI and he was able to read through it himself?

I would just say, I would just say if the— if, if they're interested in, in, in, um, hearing a, a seller finance offer, um, then we will, uh, we will submit an LOI based on, on that. But at this time Um, we would— we want to know if they're, if they're negotiable on the price still. And, and just again, now you're going to toy back, you're going to twist and turn back. Are they— you know, the seller, the, the seller financing option was a nice idea, um, while we were there, but knowing the condition of the building, all the concerns that we have, we would feel better if we just knew what the, you know, what the lot Lowest, you know, what the best price would be. Because he said $700 and we came in at $680. That was stupid. Remember? Mm-hmm. So when he was like, well, can you guys do $700? No, like $680, bro. We're there. The fuck? Like, that's like, that's so in the neighborhood I can smell your breath. So, you know, and for him to not take that now, now it makes us go, hmm, what else? What, what else is going on over there?

And he's like, I've dealt with this before. He's like toying with probably like 10 different people.

Oh yeah, yeah. And, and so do we. Like, I literally, I probably, like I said, dude, try to do at least 10 deals a week. I write 10 offers a week. I mean, Just to try and get one and not get screwed on it. Again, this is why to me, like, the idea of sub-to is different is because all these sub-to investors that come into the, into the real estate world, they don't have any actual tie-in to the property because they're sub-to. They're typically just going right over and giving all the problems and hassles of the building Over to a new tenant or owner, and so they have to me they have zero risk because they're just moving paper, right? And so a lot of that gets missed on on on that side with people, and for me that's fine when I do when I do deals and people are like oh my god that's a lowball offer well because I'm taking all the risk.

Mm-hmm.

Right. I'm taking all the risk.

Right. He owns the property. He has amazing equity. He could easily get like a construction loan and fix up it and up himself.

Right. And so that, that's the other way we can do it is to say that we want a novation loan. So this is why I'm not offering seller financing right now, because in a novation loan, we agree to a price, and then based on that price, I get a loan Based on the building, and it stays in his name. I do the work, I fix it, then I buy it, and I get it refinanced, and I buy it at the price I agreed with him.

Mm-hmm.

Because I need to bring the value of that property up before I can get a bank to buy it. Right now, there ain't no bank gonna touch it. I get Hard Money Michael to look at it, but like I said, I got to go in there and say, yeah, Michael, we're buying it for $800,000. But really, I got to deal with the seller for like 5. You know what I mean?

Mm-hmm.

So that's cash price. The other way to do this is that we can go in there and say, if he wants to do an owner financing, I would do no more than 15% down, maybe 20.

Okay, so 15% of the $880?

Yep.

Okay, so $880— whoa, $880 times 15%, $132?

Probably, yep.

I think that's— I mean, I— that's like good middle ground because he said they wouldn't offer more than $100.

And then if they turn down $100,000, $100,000 down, and we're going to want, we're going to want 6% rate for 2 years, 5 years, 2 years, 5 years. Mm-hmm. Balloon at 5 years.

But put terms in that that say if the market's not She disappeared. Sorry, I'm right here. If the market's not like feasible to refinance, then you get to extend it.

Yeah, we can put all that into the fancy terms, but basically the start is that we're, we're gonna do, you know, 15% down, um, 6% terms, 6 years, 5 years. Um, interest-only balloon, and for the first year we get zero. We will pay annually, and it'll be on our anniversary. Okay, so like, we're not gonna have monthly payments, we're gonna have annual, uh, annual mortgage payment. So annual Yep, 6% interest only, 5 years, balloon it at year 5, or if we finance— refinance prior to, but we probably won't.

Um, annual mortgage payment, 6% interest. Okay, I'm just writing this down. But first, um, what did— did you want me— I want to, I want to be like, did you present my offer to the seller and what did he say?

Don't they have to legally do that?

Yeah, don't, don't jump on that. No, because it's not an offer, it's an LOI. It's non-binding. It's not Just an LOI. That's how it gets done. That's how it gets done. Trust me.

So what do you— what is my— the next thing you want me to say to him?

Go, go say, you know, tell them that if they want an LOI for the seller financing, here's our terms.

Okay. Okay. Okay. Okay. Do you want to have a conversation And put it into GPT and like write the LOI?

Yeah, you just go back to the conversation you had that created the LOI. Right?

Right. Well, I think we got partially through it and then you took—

I, but I didn't, I send you the LOI after it finished. Um, and Claude. Yeah. So you're going to take the LOI that we made in Claude.

Mm-hmm.

Put it back into your conversation on Deal Hunter GPT and tell it, rewrite this LOI and change the information from the cash terms over to seller financing terms. $880,000 sale price, 6%, 5-year note, interest only, you know, uh, a, um, annual mortgage payment.

Mm-hmm. Okay, okay, okay. I can work on that.

And then it'll produce it. Then you take it over to Claude and tell Claude to make it presentable, and you can put your, your letterhead on it and put your branding to it and say, you know, uh, uh, Uptown Ashley, you know.

I don't know if I'm ready for that.

Well, again, this is what you should be doing. You should be putting it into Claude and putting, you know, Uptown Ashley, proud realtor of blah blah blah brokerage.

Someone's saying they do have to legally present all offers or LOI to seller. However, that does not happen a lot of times, especially if it's a low offer and the agent or broker does not like it.

Right.

And they said it was a good offer. They were like, oh, he's going to be happy with it.

Right. In commercial, there's no way to police it. So you just go with it. And the only way, again, if you really want to know if they got the offer, you call the seller. And say, hey, I made 6 offers on your property. Did you get them?

Mm-hmm.

And when they go, no, you go, okay, well, do you want one? Because like, do you want to start over? Do you want me to tell you what I was offering? You know, and so I have no problem reaching over the top of a seller, or I mean, over top of an agent, especially if they're not dealing, doing good business dealings. But this guy, he's trying to Give us an in, right? And to my understanding, he's not the actual listing agent on it. Oh, there's a woman who's a listing agent on it.

His mom, right? And he already told me this is his first commercial deal, right?

Right. So this is all. Yeah, and I'm okay with that again. So like, turn turn on the circus music. How does it go? Do do do do do do do do do do do.

Hey, it's a win-win because.

It's my first commercial deal, right?

Exactly. And this is Tommy D's 350,000th commercial deal that is going to go exactly the way all of them go, which is the seller is going to want the most, the buyer is going to want the least, and the agents are going to pull their hair out trying to figure that out.

Okay, wait, can I just show you one more thing? If you have interest, I'll go farther into it, and then if you don't, I'll move on. Can I share my screen?

Yeah, what— which one are you looking at? A new property?

Yeah, it's a different one that I was going to show you before.

The Black Canyon City one?

No, this one. Do you know downtown Glendale?

I do, and it's a waste of time and money.

Okay.

The entire city needs to be burnt to the ground. They should host riots there after the next election so that they can destroy the entire city.

What? They're saying to redo It's called Glen Ghetto.

Get rid of it all.

Okay, you don't like it. That's fine.

Get Glen Ghetto.

That part of Glendale, that part of Glendale, there are some nice pockets around it that needs to be redone, but that could be a nice corridor. It's going to take—

but the issue is, is that you have city municipality that is 100% crooked. They have a, they have a tunnel that runs out of City Hall to Mexico for illegal immigrants.

What? In downtown Glendale?

Glendale is Glenghetto. Mm-hmm. No, I have no shame in throwing Glendale under the bus 9,000 ways to Sunday. It is a trash town. It needs to— it couldn't be toilet paper to Detroit. Okay, that's how I feel about Glendale. Glendale is horrible. Look at what they're doing to the stadium area, because remember, downtown Glendale is what she just showed us. Go literally 57 blocks the other direction, all the way to 91st Avenue, where you have the stadium, you have, uh, you have, uh, Westgate, you have all that stuff over there that's millions and millions of dollars, and none of that money goes back to downtown.

Mm-hmm.

None of it. Why? Because all the people that own the land over there by 101 and the stadium are all running Glendale. And so Glendale's crooked as hell. So if you invest in downtown, you're investing into— you're investing into something that you're never going to get anywhere if you're not in the good old boy network plan and clan. It's like a piece of shit HOA. Oh, it's worse than a p— it's literally being in the mafia. They are the— they are the Sinaloa Cartel. I'll go on record saying it because I've dealt with them and they're crooked. And they're— and, and look at what they're doing to the Vi Hotel. Like, that thing was supposed to be open in 2023. Anybody know what I'm talking about? Vi Hotel, the, the Hot Wheels track built by the highway?

Yep.

It's been there for 6— for 3 years now and, and ain't gonna go nowhere. Literally, uh, the, the builder of the Mattel theme park Back out. They're like, you know what? We're done. We can't do anymore because you guys are stupid. And so it's all Glendale, and then turn around, and you've got you've got Vi Hotel now has to finish the the motel the the Mattel theme park or tear it down. They're going to get a teardown order next, and that's literally over three billion dollars that that goes to waste because Glendale. Up. The city of Glendale messed it all up. They got rid of the hockey team. Remember the Wolves? Yeah, gone. Nowhere to be found. They're gonna— you know, that's the thing. Like, oh, you got me fired up when you said Glendale. Oh, I gotta go take a pill.

Good to know. I'll keep that in mind.

I have Glendale PTSD. We have a whole—

I lived in— I did. I, I tried to do business there. It was ridiculous.

Yeah, I I have yeah, I've got Glendale PTSD. So that's just interesting hearing your perspective of it because like I just cringe.

Yeah, yeah, no, it's no bueno. Okay. All right, you'll be forgiven tomorrow, Ashley.

Oh goodness!

Hey, that was a lesson I don't need to be forgiven for. That was a learning.

That was like a yeah. X nay on the on the Glendale A. Go to—

here's what I have to say though, like, Ashley, I'm seriously, I'm so proud of you for just like being a go-getter and going after, you know, and finding, understanding that you just got to keep analyzing and looking and looking, looking until we find the deals, right? Like, that, that's how it's done, you know. So again, thank you for You know, sleuthing, right? Doing all the detective work. I mean, because that's really what it, you know, what it comes down to. It's like, you know, and there's no better detective than, you know, an FBI agent than a mom.

Thank you.

Moms will find the crap out. Don't lie to a mom. Yeah.

Right.

Anyway, I'm just— I, I'm excited that you're, um, you know, doing everything you can. And again, not getting frustrated that, you know, you didn't find it on the very first, second, or third deal. Literally, it's hundreds and hundreds and hundreds of these that need to be run. Just, it is what it is.

Yep. And the good thing is Every time you run, you learn more and you get better at detecting. So, you know, the long-term goal is to be able to take weird situations and have the vision and make it something special that will help the community, that you can make money off of, you know, like reuse it in some type of way that can stimulate the area and still make money. So.

Yeah.

I don't know, I'm learning, but I do.

And that's, that's the gift of Deal Hunter, is having that, um, tool to be able to, um, underwrite and analyze and come up with all the different potential options. You know, again, it just lets you go through them faster. Good job, you're amazing.

Thank you, you guys are too. I appreciate you guys. Appreciate you.

This is fun.

Absolutely. I had fun too. So we will be back tomorrow. Everyone have a great, wonderful day. I'm going to pray it real quick. Heavenly Father, thank you for blessing us today, blessing this life when we ask you to carry us out into the world and protect us in your Son's name. Amen.

Everyone be awesome. Thank you.

Thank you, everyone.