AI Live - Land Shark Mastermind

Okay, you're now live streaming.

Okay, baby, go take a rest, take a little sleep. Um, I don't— do you— what else did you have on your calendar today? Did you already take off?

Let me see. I did. I have a call, a 15-minute call at 11, and then the Friday flight's at 4.

Okay. I had access to your calendar yesterday, but today is gone. I don't know what happened.

I don't know.

It's okay. Uh, screenshot it for me, send it to me. If you got a 15-minute call today, I can take it, probably. There was a 2 o'clock call that I was trying to get you on with this webinar strategist who, uh, who wants to do a webinar with free estimates. So that's why I want to try to get freeestimates.io up and running today. So just getting online to that.

Okay.

And then I did a breakdown for the Friday Night Lights thing tonight. And so after your nap, when you start— if you start feeling better, when you start feeling better, we'll go over that. And, um, if you want me to send somebody in to do an IV, I can. Like, unless you want to physically go somewhere, I think it would just be better if somebody came in and gave it to you.

Okay, let me take a nap and see how I feel.

Sounds like a plan.

I'm gonna go lay down.

All right, babe. Good morning, Laura.

Good morning.

Trying to get Marbleism retrained to focus on just doing the podcast and AI tools right now, so You working your shit out finally?

Okay, that's braiding.

Holly. Excuse me.

All right, are you starting it up, Tommy? Got people coming in now. Oops.

All right, good morning. It is, uh, 9 o'clock on Friday, September 11th. And today, I mean, we're gonna, we're gonna do a show, but we're gonna do a show based on the fact that we've got, we got to do it. I'm gonna do a little bit of remembrance. It's been a long time ago that on 2000, 9/11, 2001, Crazy stuff happened, and my world turned upside down. It was actually the catalyst to how I became independently wealthy and became a millionaire for the first time. I don't tell many people the story, but basically, I made a large, large purchase of material, roofing material, on the seventh of September. 2001, I bought 2 trucks of material and basically filled up a warehouse. And then on 9/11, I was climbing up a ladder when I heard a guy on the radio. I used to listen to talk radio and he was on the radio and he announced that a plane hit the Twin Towers, one of the South Tower or whichever one got hit. And I heard it on the radio. I was like, what? What is he talking about? And I immediately just, instead of finishing my ascent up the ladder, I literally just turned around and slid straight down like a firefighter does and got out on the ground, ran to my truck, and drove back to the office. And we watched the second plane hit on the TV that was in the office. And my partner at the time was in a meeting selling someone a house. I immediately, you know, I bust open the door and he was like, get out, you know? And I'm like, time out, we're under attack, country's under attack. And he, um, it's like, what the hell are you talking about? And his office manager, Miss Bobby, came in streaming tears of like just— and the look of horror on her face was ridiculous. And I'll never forget it. He looked at both of us, he said, please excuse me. And he grabbed the couple and he took them through a back door that led out to the parking lot and walked them out, walked back in, and he picked up the phone and he, and he called his lawyer. And he looked up at us and he said, get out. And we walked out. And as he was on the phone, he said, what's going on, Joe? And he was— and I knew that's how he called the lawyer. And so Joe was his lawyer. And I walked out the door and, and kind of stood there with everybody, and it was really somber mood, but, um, At the end of the day, we all know what happened and how it all fell apart and came back together again. And about a year later, I had basically accelerated. We made $20 million and consumed 3 other roofing companies in the area just based on the fact that that purchase I made caused the material price to go up over 300%. And so we were the only company in town that could Like legitimately do roofs at a— we were able to scale up to that price that it became without having to do an overnight bam, this is what it's going to cost. Put 3 other roofing companies out of business and we consumed them. But we grew from there. And then by when 2005 happened, 2005, most people don't know, 3 massive Category 3 hurricanes hit the state of Florida. Most people know them as Charlie, Ivan, and Katrina. And so the Charlie, Ivan, and Katrina paths that cut across Florida basically annihilated the entire state. And we, we signed over $220,000 in contracts in that Southeast territory. We covered— we basically covered from North Carolina all the way through Florida and out over to Louisiana, Mississippi. And Our company was out doing massive amounts of of roofing. So in that five, you know, four and a half, five year time period, a lot of things change, and and that was the day it started. So um uh I don't know if anybody else wants to share their nine eleven story. I just threw that out there because of the fact that to me it's a significant part of who and what I became, um and realizing that. At any time, things can change, you know. So always be prepared, always be ready for those things to change. So from that, you know, that's where I'm at today. Again, our sponsor is Titan Impact Group, and Titan Impact Group is an amazing company started by an amazing woman with a mission and a plan to save lives, to change lives, and to be a betterment to other people's lives. The mission statement is, you know, to leave all people, property, and communities better than she found them. Catherine Bell is the CEO of Titan Impact Group and does a wonderful job of helping people increase their bank account, add commas to their bank account, as she likes to say, and collapse timelines so that they can get it done faster, quicker, better. And one of the ways we do that is through the use of AI. And inside of this program today, we do a lot of work inside of AI. And the work that we do inside of AI is we're not replacing human beings with AI. We're replacing the steps that a human being needs to take in order to do what it is they want to do. So what I'm going to do is I'm going to We are going to do demonstrations on running some deals. If anyone has some deals to run, typically Catherine's got some deals. I've got a couple deals that I always get sent. And what we do is we run these deals, and then later on, when the investors that go to Catherine's YouTube channel— over 6,000 contacts go there and watch these videos to see what kind of, you know, what kind of deals we have— we're actually getting these, these long, these podcasts cut, cut up into segments where we're just showing the deals too. So, but because we're not produced, we're, we're 100% amateur driven. We're not here trying to make money off of a podcast. We're here to make money off of running deals and getting deals done. We also have tools that we developed and we like to share those tools with people. We like to sell those tools to people, make tools for people, create machines for people. Uh, and that's basically what we do here on the Land Shark Mass— uh, Land Shark Podcast is we do a deal room similar to a Shark Tank episode. Um, the, the product is, is, is basically the same. It's going to be real estate or business related, but, um, it's, it's, you know, come in, tell us what you got, we run it through the Deal Hunter. Uh, Deal Hunter is our proprietary AI program that, that literally has 30 years of real estate investing and developing built into it. It is a pocket real estate investment assistant and advisor. And I'm, and I'm not afraid to call it a real estate advisor because that's basically what it does. It advises you on due diligence, on where to buy, on what the path of progress is. It's got a brain built into it that thinks like somebody who's been doing this for a long time. So Inside of that, we also have the Land Shark Investor Survey so that for people that either haven't done it before or been doing something that's causing them to feel burnt out, or maybe they just want to change what they're doing. And like Catherine, Catherine Bell, she went and did every level of real estate investing from fix and flip, buy and hold, wholesale, short-term rental, vacation rental, Triple net medical office, industrial development ground up, RV storage, RV park, mobile home park, note buying, fund manager. Like, the list goes on and on. So what she likes to do though is she likes to rent dirt and be the bank, and she took 20 years to discover that. So what we did was we came up with a way to avoid that. 20 years of experience, you're able to buy the— what they say, what they call buy the degree and just, you know, get the free tuition, if you will, by going to 2 things. You can go to CatherineBell.ai and have a conversation with Catherine's identical twin, the clone, and go over there and have a conversation with her and It'll tell you all the things that she did. The other thing you can do is go over to ChatGPT, and when you go to ChatGPT, you're going to search for the Land Shark Investor Survey. We're going to get this sent over to people and put it in the put it in the chat here real quick. And what it does is is you can go and take this survey on ChatGPT and. Like Catherine says, you can have a conversation. We noticed that some people, when they talk to it, it tends to throw it off a little bit. So if you're not used to having conversation with your ChatGPT, don't talk to it. Type it. Type the whole thing. Take the time. We've got a couple people who have never used ChatGPT before, and they're trying to go through this program and do it with the talky part. And that's great. But the problem is, is if you haven't trained your ChatGPT to listen to you and have conversations with you, This survey is not the time to try and do that. So unfortunately, there's bugs in it if that does it. And so we're advising people don't do that. Okay. But Titan Impact Group has created just a suite of these things. We've got over 24 GPTs that help people do things, everything from running their, their 506 Reg D private equity fund all the way down to, uh, handling their peptides. or their insulin or their diabetic medication or their ED medication or whatever medication they need. We have that inside of a GPT as well. We help lawyers put together GPTs for people that are looking for legal advice or contract information, information about tax structures, information about architecture, information about private jet chartering. So like we've built all of these inside of the Titan Impact Group AI tool bank, and we offer that out and put that out for people to get involved as well. So, but over on Deal Hunter by Landshark, once you get your, once you get your, your results of the Landshark Investor Survey, you're able to get, get the exact um, buy box that you need to be working from, you can come to Deal Hunter by Land Shark and start getting that information rolled up and rolled out, right? So as a, um, as a way to, uh, here we go, going to minimize that. We're working on one right now for the Big Brothers Big Sisters, um, program. And, and Big Brothers Big Sisters is needing assistance in their AI program, so we're putting together stuff for them. So super excited about that. Um, where'd it go? Come on, it's over here. Bring it back, put it up. There we go. So inside of here we've got, um, what is called Demo Hunter by Landshark. I don't know why it disappeared on me before, but here we go. Inside of Deal Hunter by Land Shark, we can do everything like look for property. We can calculate, you know, difficult real estate calculations like return on investment, debt service coverage ratios, price per square foot. Like the way that Deal Hunter by Land Shark calculates, it's amazing. It's absolutely crazy. The The what are are my best funding options? Like it'll break down how to put put deals together and and give you options of of what would be best. And then I need a due diligence report. This part right here, this part's really cool because what we did was it you don't have to be a prompt wizard to know or to get this because of the way we programmed it. Most people know GPT as just like. Another search engine. People use it like it's Google or Alexa or Siri or whatever, and it's— that's okay, you can do that, but you're literally only using like 0.0001% of the brainpower this thing has by doing that. So if you want to maximize the brainpower, you have to understand what GPT stands for, and it stands for generative. Okay, you're generating a prompt, and that's the G part. The P part is pre-programmed. We are pre-programming it that every single time a prompt comes in, we want it to follow this particular program. Kind of like when, when, when I was working in the ER during a code blue, we had what was called an algorithm. If you come in with no pulse and not breathing, do this, and then do this until this. And then if you start breathing, do this. If the heartbeat comes back, do this. If not, do this. And so it was just boom, boom, boom, step 1, step 2, step 3, step 4. But each one had a step 1A, step 2AB, step 3ABC. And so that's how an algorithm is built. And that's what GPTs rely on in that P part is the pre-program. So we put the algorithm into it, what to think, what to do, what to say, how to say it, how to say it, what tone to say it, et cetera, et cetera, et cetera. The T of GPT is the transfer of that pre-programming and the prompt into an answer. So GPT literally means I'm asking you to use your knowledge to give me the answer to my question and do it in an elaborate way. And I can put in there, I can put in the prompt that I want it in a PowerPoint, I want it in a spreadsheet, I want it in a Word doc, I want it in a video format, I want it in a picture. I want it in an explainer. I can do all those things. The pre-programmed part is going to create that, and then the transfer is going to be the outcome, the, the putout that it does. And so inside of Deal Hunter, we made the GPT with 30 years of knowledge inside of doing real estate, and mostly doing ground-up real estate, doing, doing land development. That's what I do is land development. That's why it's called Deal Hunter by Land Shark, because I'm a land shark. I go find property and I chew into it and leave bits and pieces for everybody else. That's what sharks do. They go in and eat a whale. They chew up a piece of whale. They make food for the crabs. They make food for other sharks. They make food for every organism in the ecosystem. They are the ecosystem creator. And so in real estate, the guy that does dirt, I mean, he's either a dirt dog or a land shark. And if you don't know the difference between a dirt dog and a land shark, dirt dog just does the dirt and that's it. Land shark, Does— gets the dirt from a dirt dog and then spreads it out and gets it to everybody else. So, um, dirt dogs are usually land bankers. They, instead of putting money in the stock market, if you bought land 20 years ago, uh, or you put— if you put $1 million into land a year, uh, 20 years ago and $1 million in the bank 20 years ago, you'd have 20 times more money today based on the, the, the rate of growth. on certain parcels of land than you would if it was sitting in the bank. So you'd be a $20 millionaire now versus having maybe like $5 million in the other, right? So that's what land banking does. And a lot of people don't understand land banking, but that's what a land banker does. That's a dirt dog to me. So inside of Land Sharks, we also have a lot of other sharks. You've got wholesalers, you've got fix and flippers and all the things, multifamily guys. I see Jude in here this morning. And he's multifamily guy. So again, that takes on a shark mentality. I'm not saying sharks are bad. I love sharks. Sharks are actually amazing. But a shark's mentality, like, I have to be aggressive. I have to be on the hunt. And those are the qualities that I go after inside of being a land shark. Other types of sharks are, for example, you got people that are kind of like a megalodon. Like those people will go and they're like old money. They actually buy stuff. And if it fails, it's a— if it succeeds, it's a good thing. If it fails, it's a good thing because they go after write-offs too. And so sometimes getting more income is a problem for them. So they stay away from projects that actually create income because that just creates more problems for these guys. It's crazy, but true. So inside of that, they don't typically use Deal Hunter. They're not trying to find the deals the best way. But people that are like land sharks or, or, or other, you know, type of, uh, type of predator, uh, predators in the real estate industry— some people are super aggressive, some people are super chill. You know, one of the most super chill people in investing are those, those other people that use tax advantages like opportunity zones, 1031 exchanges. Like, they're just rolling through and being passive about it, right? But they're still a shark at heart because they have to you know, strike on a deal when it comes, you know, kind of like a nurse shark or a lemon shark, right? So, um, there's all kinds of ways that, that people can get, you know, involved in inside of real estate. And what we like to do with Deal Hunter is help people discover that and get accelerated through that inside of, you know, understanding what they do, you know, and, and how it works. So, um, you can go through GPT to get to this. The, uh, One of the bigger issues we've come across is that now with the popularity, the large popularity of these models, ChatGPT, OpenAI eliminated the ability to create them anymore for the public. And so unfortunately, they're going to take away the ability to get to it. Um, at all. And so what we did was we created a way to go through a website. If you go to landshark-dealhunter.com and you go to run a deal— like, this is the best way for people that want to get deals ran, come in here and run a deal— you're going to be able to, uh, go and access the GPT model right through the website. And when you get in there, you'll be able to start having a conversation with Deal Hunter. Um, so, uh, going through the website to get to Deal Hunter, uh, we get in here, we can do a variety of things to, to really, you know, uh, get things going. We like to use Dictate, uh, to put information in here. Um, but before I demo a property, I'm going to just give you— let it give us a rundown. I need to know what are all the things human beings do currently inside of real estate that you can do faster, quicker, better. And save them time on getting things done and provide them with efficiency inside of the professions that they do. Go ahead and list all those out now. And so I'm going to go ahead and let you know, let it cook basically and get us those answers while we go and review a piece of property. So I just got sent a deal here a little while ago. Oh, look, it's done already. It's crazy how fast that happens. I was, I was just texted a property that I want to run by one of our other members. Here we go. It's an off-market property with, with a little bit of potential. I'm going to just make a copy of it off my cell phone. I know you guys can't see what I'm doing, but I'm going to go back into through my phone real quick. I'm going to go in and start this deal right here and post it. There's a way we prompt these deals when we run them. It's called Run This Deal. Uh, Run This Deal is a 3-letter, uh, 3-word prompt that will provide, uh, a due diligence report that hits on about 27 different, uh, specific targeted, uh, points of concern on any deal. So as a, as a real estate investor, you got to do due diligence. And inside of due diligence, it's amazing that how fast I can get this due diligence done now. But because again, sometimes I can get it to be done faster than I can get a realtor to answer the phone. So, um, and that's, and that's if I have to leave a voicemail. By the time I get done leaving the voicemail, I've already got 27 different Uh, things in front of me about the property that I could only probably get the realtor to probably give me 10. So we'll go over that in a minute. But inside of this, the real estate AI efficiency map, uh, Deal Hunter by Landshark literally does deal finding and lead generation, off-market prospecting, seller outreach, lead qualification, uh, property research. Comparable sales analysis, analysis, rent comp analysis, investment underwriting. And that's for everything from rental property, fix and flips, BRRRRs, development, joint venture equity. It's got deal screening at scale. It's got stress testing. It's got breakpoint analysis. It's got offer pricing, offer structuring, finance analysis. Capital stack design, lender preparation. And I think this is the part that most people need a lot of help in, is getting, getting the documentation necessary for a lender or mortgage broker. Like, if you have a property you need a loan on, this thing will get you the documents made. Now, it's going to use the information you provided it, so again, be careful on that side of it, but it'll create them for you. So it's got built into it lender objection preparation, like how to defend yourself against giving a price. Like some people are like, oh, you gave a lowball price. No, I didn't. Here's why. Right? And you can get that information directly from here. How you can get investor raising support. How to, you know, again, the due diligence, like here's all the things that it does for that. Document review, and this is probably one of the strongest points too. Like, what if you ended up with? We we had a deal where Katya ran a deal. We ran it through. We got the due diligence package from the realtor, ran it through, and found a ten million dollar hangup. And it was like holy crap! When we pulled it to their attention, they're like, yeah, we knew about it, but we didn't know it was going to cost ten million dollars. So like they even knew it was messed up, but they didn't know like how bad. I was like, wow, Deal Hunter pulled that out. So inspection report analysis, that's what we did with it right there. Rehab scope development. And it works in conjunction with our other GPT tool that's a pocket contractor. Like this one says it'll do contractor bid comparison, but it won't put the bid together. It shouldn't. So, but it can do construction management administration, development feasibility, entitlement strategy support. Like even like running through, getting things through the county to get things done. It'll give you the path to do it and give you the names of who to call. That's the other part. It knows the who to get the how done. So that's pretty tight. Negotiation preparation, negotiation scripts, contract to close tracking. Like we— I call this the Laura part. This is the Laura. So it does the Laura part right there. So Realtor listing preparation, buyer agent work, commercial brokerage, lease analysis, property management, portfolio management, asset management, accounting, financial review support, like throwing T12s. Did that not work the other day for you, dude?

Yes, it did.

It sure did. Yeah, it was quick too, right? Yes, very much so. That's the, that's the thing. It buys back time. It's not replacing human beings. It just buys back time.

Yeah.

So tax strategy preparation, um, you know, uh, talking about opportunity zones, insurance review support, appraisal preparation, title escrow, legal review— well, legal workflow support. It'll do some legal review as well. Meeting productivity, CRM administration, email and communication. I can send emails from GPT to sellers. So I didn't know if you guys knew that or not, but it can literally email anybody if you have it set up right. We teach people how to set that up. This is what we're doing on Friday Night Lights, actually tonight, is helping people learn how to set this up. So the SOP creation comes from, uh, most real estate businesses, uh, uh, you know, don't have SOPs because people are just flying by the seat of their pants. So it's hard to train people. It's hard to do employee training. So here you go. We got it. Hiring, KPI, disposition, wholesaling, land, builder lot acquisition, development scenario comparisons, highest and best use thinking. I put that one in there specifically because a lot of people don't do that. Like the Land Shark Mastermind, it's separate from this podcast. The Land Shark Mastermind, its mission statement is to do moral and ethical development in the path of progress ahead of corrupt government and greedy Wall Street investors who don't know anything about developing. And that's why we have the Land Shark Mastermind, is so that these professionals can come in and do moral and ethical development. So we don't sell training courses. Like somebody asked me the other day about— we're not training nobody. We're doing deals with people. And so we go through this process with people on how to do deals if they've never done them before. But people that have done them, we get them vetted and we get deals in front of them and get them, you know, get them investing, get them going and moving up the ladder fast. So that's, you know, development, budget review, investor communication. I don't even know how long this is. Almost down to the bottom. Market research, research, competitive research, scenario planning, deal memory and institutional knowledge. This happens inside of like everything that we do. You, when you build it out and have, have it make your own rules, if we made you your own UPT and you only wanted to know how to do multifamily, that's all it'll do. It won't look at anything else. So creating finished documents was already kind of discussed, but turning one database into multiple outputs, like how we can do that is by sorting out a list multiple times and having it categorized. Decision prioritization, what I can make dramatically faster. Right here it shows. Here's the proof. So here's your traditional workflow. It just says minutes because it literally doesn't— it like, it hardly calculates it. So there's no guarantee on the processing time. But most people are like, well, what is the validity of it? Does it— is it really as good as you say? Like, if it takes minutes, how do you prove that it's all true? Okay, so go ahead and take 120 minutes to figure it out. And review the operating memorandum, or just go read what was produced in minutes. And then actually it shows inside of when we do these things where it resource, like where it got the source. It'll show you exactly where it got the information. So I, again, I built it so that people didn't have to worry about the validity or the honesty of it. I made it be honest. I told it be honest. Don't waste my time with assumptions. So, and then if you do need assumptions, you have to ask it to make assumptions. It won't make assumptions otherwise. So as a matter of fact, here we got this deal that just got done over here. This is a property that came off my phone. All I did was copy and paste the text message from the— this is from a wholesaler. Wholesaler is like, here, I got this property out in Tonopah, $219,000. Let me know what you think. I like the 371st area. It's, it's got— there's a reason for it. 25 years, this is going to be an amazing piece of property. 2.2-acre piece. It's already got a 1,500-square-foot house on it that was built in 2002. Pulled that information straight from there. But now, because I told it run this deal in 27 seconds, it produced this entire report. I just ran down to the bottom real fast so I could show you. Just pulled some basic stuff. So all I'm looking for is this a go or a no-go? Like, what am I doing? Is this a hurry up and wait? What are we doing? So looking at this, it shows that the 85354 market is fairly spread out, which is true. It says this is a renegotiate. It's not a clean flip. Houses in this area are only going for $320,000 to $330,000. So with the fact that they're wanting $219,000, If there's a lot of work that needs to be done, I need to be down a little bit more, right? So because it is— the house is pretty old, like we're over 20 years old, 25 years old. It's probably also like I would say, and we would probably say it's a fixed mobile home, which means that it's like done. Yeah, right here, manufactured home. Boom. So we're looking at like spending a good amount of money if it's old and not been taken care of. So the real comps, okay, in the area show, you know, $280,000 to $312,000. All right, so that's supporting indicators. Um, the preliminary value range, $280,000 low, I have $325,000. I think the guy said up here He didn't, he didn't actually say anything about the ARV. It shows that the ARV is about $320,000 to $330,000 plus. And that's, that's on the lower end manufacturing home. Right. Here's the good part, though. It's a 2-acre lot. And what we already know based on what I've done, I can make another house out there and put another house out there and then have 2 properties for the price of one. So looking at this at a $325,000 ARV, it's given me some ideas of what I'm looking at and how much I can actually, you know, where I'm going to be able to come in at, uh, with, with the fact that it's a $325,000. So, and I've got to do some work, right? I'm gonna have to do some work, um, assuming that and requiring that I'm going to need to get $40K net profit. So current Tonopah asking rents are pretty low. It's going to look at this as a buy and hold as a backup, right? So cap rates in the 7s, funding strategy. Here's a, you know, a best case. So acquisition $190,000, rehab $25,000. It's going to sit on the market for 12 months out there. Not a lot of people out there house shopping. That's why. That's all. So, or we come in, you know, and we get this, we go $225,000, we get them to carry the balance, you know, if they can carry. Typically through a wholesaler though, they won't, but we try to. And the third way is to get a JV structure set up, um, and go into it with somebody else. Like, I would go into it with a builder and say, hey, I will sell you the, the lot next door if you make me a partner on the property. And just sell it that way. And so we buy it with the fact that he's going to buy that property. So at $219,000, if I have a $325,000 ARV, I'm looking to make about $35K net profit based on the amount of rehab I'm going to have to do. And we're looking at an extensive amount of rehab. Verified and market supported is that rough data shows that it's about $275,000. Okay, uh, 278. And, and we can verify this. Remember, like I told you, we, we have the sources. It's going to pull the data, right? So, um, this is, this is, this is straight from realtor.com. This is third party coming through dealer— dealhunter.com. Like, how many times have you been to Realtor and seen that? Anybody? Anybody? Right? Like this page doesn't normally pop up for people. You got to ask it, ask for it, know where to ask for it. Deal Hunter knows where to ask for it. So here's your red flags and your leverage, your mini SWAT negotiation structure, how to move forward, what to do next, exit strategy, lender investor view, and what you need to do moving forward. Renegotiate. Biggest opportunity is the 2.2-acre basis. So we already know, because again, like if I build a brand new house out there on that 1.11 and I have this house on the other 1.11, we're going to make money. So, so this is an opportunity. How I would deal with this moving forward, and if somebody else has a property to run, let's pull it up. I'm going to go ahead and have you get me Um, details on this, if I can split the property, uh, see if there's a— see if there's any kind of, uh, shared well agreement for this area. Give me, uh, any public record information you can. See when the last time it was sold, how much it sold for, and, uh, do all the work to find out anything I need, uh, inside of a feasibility study. I'm looking at possibly buying it. Splitting it, building on the 1.11 acre and selling the house on the 1.11 as either an owner— we can owner carry it and wrap a mortgage on it, or we sell it cash outright for 20% below ARV. So, uh, if I wanted to, once it runs this and we figure out it's a good deal, I can actually get it to, to respond back to that text message and tell my, uh, my wholesale buddy David over there, hey, I'm interested, tell me more.

Right.

And, and I can get him to send me, uh, whatever I need or whatever I can get. Um, to get this done. So, you know, um, I don't know about anybody else, but I mean, it would have taken a lot more than 27 seconds to get this information above. So that, that to me is the key deal. 35 seconds comes back with a preliminary split and feasibility study report based on what I'm doing, and it gives me a go at conditions. What is the goal? Is that I can, uh, um, that— what are the conditions? The conditions are, can I actually split it? Can I make 2 legal lots? Is it, you know, is there an opportunity? What are the setbacks, et cetera, et cetera? So, and again, I can find that out if I go, if I go look at the property online, um, on, on the map, I'll be able to see it there. Oh goodness, that's funny. There was all those robots sitting there. I was just talking to Catherine about that the other night, um, with all the, the robots coming online pretty soon. It's crazy. I wanted Google Maps. So inside of Google Maps, you can actually see property lines. There's a position you have to hold on it in order to see them. So there we go. We're out here. Looks like there might be a wash in the middle of this property, so that's probably why you're only one house. But I'm at— as you can see right here, there's the 2-house plan right there already in action. So yeah, all I would need to do is figure out how to get another house back here on this lot away from that one. But these two are these big houses; these are not little houses. So that one looks like it burnt down. It is a burned down house. I know that house. So I know exactly where that is. These are very dirt road, hard to get to dirt road. Um, so getting off of the main highway, the, the main road right here to go this way out here is all thick dirt road. And then to get down into this one, down in these, you need a high clearance vehicle. But they're doing a lot of development out here. There's 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 brand new houses, 14 brand new houses out there right in this area. So development happening very rapidly out there. There's 4 more, and you're like, how can you tell, Tommy? Because they're brown roofs. These brown roofs are brand new houses. They're all the same roof. So the guy that's building them out there uses the same material for every house. You know why? Because he bought a buttload of it on November— on September 2nd.

Because he bought it in bulk. Oh wait, do we know him?

Yep, that's exactly what I did. Here's 3, 3 houses, brand new, probably. 1, 2, 3. But not as new as these. The other new part is nothing around them. And here's construction material like staged up around these. So, but these are pretty much all brand new construction with those like that. That one's brand new, brand new. So brand new. So yeah, doing it over here, not going to be a bad thing. Makes me want to find out about this one right here, though. So anyway, that's what Deal Hunter does. Gets you the opportunity to see that. Now the other position we want to take with this one is the Maricopa County. Uh, assessor's office, they got a map that we use. And back over here inside of Deal Hunter, which one did I use? Deal Hunter says that it's an RRU43, which means that I can do a minor subdivision with it. And, and there shouldn't be an issue, but the issue might come in that it has or may have, um, a, uh, an issue because of, uh, drainage or flooding. Okay, so it's given me the website for it right there to check the zoning ordinance. So that's wonderful. And now it gives me the APN number that I can use over on that website now. The way I built this in the free version, it will— I won't go look at this on the free version, but in the paid version, we can actually tie API into this and get it to go find stuff. So inside of here, the parcel search, this is how we go see where the flood zone is. Some people use other tools like, what's the one, PropStream and stuff like that. Like, I appreciate people using that stuff. It's good stuff. Great. But I know how to do it without it. And, and so for me, I, I, I personally would rather use something I, I know for sure. For me, um, I'm verifying it right here. Back out until you see rivers. There's a river. I don't have one through that property. That's a plus plus. What that means is I'm not in a flood zone. So now that I know I'm not in a flood zone, Let's go to that property again. The address it gave me was that one, but the one that, uh, or the, uh, um, parcel that it gave me was that one, which I need to go look. It might be broken. This is next door, so it gave me the next door parcel. Okay, that makes sense. Uh-oh, something happened. I don't know, for whatever deal— reason, it reset everything. Um, so back in here, where did my parcel ID numbers go?

Come back.

I should have read that. That was my fault. Because I, I didn't read it properly. I thought that it was that site, but it's saying it's the neighbor site. Come on. Okay, so this one I think is the neighbor as well. Let me see if I can find—

Excuse me.

Where? Oh, where? Let me just get the address. That might work better. I'll drop the address in there because I, I think it's this one right next to it right here. Yep. So there it is. Here's the lot right here, and it says it was deeded in 2002. Sale price was $23,000. And with the map being updated, this, this shows that it's a little bit updated, um, in a sense that it's all flat. It's no longer got the bushes in it like it had. I don't know, see it? Somebody scraped it. So I had those bushes there. 2020, it had more bushes. 2019, bushes and bushes and bushes. So this guy over here was selling something, covering something. But in 2026, we got flat dirt. So, and it's like, we could do it. We can do this down here real easy. So these 2 houses down here. This one was built in 2024. Doesn't show like what it sold for, but it's valued at a— an FCV value is at $417,000. So the— this one here, same thing, built in 2024. Both of them 2,500, 2,600 square foot homes, right? 2,600. Looks like the exact same house, just facing a different direction. Got that front porch click right there, front porch click there, this little white thing, that little white thing. So same house facing a different direction, that's all. So this looks like the front, probably come up the side right here to get to it. Is it on a dirt road too, or that's a regular road? Yeah, no, these are all dirt road. Yeah, this one's burnt down. This was my buddy's house that got burnt down out there. Um, Victor and his family lived there. There's a spat with us with his uncle, and his uncle uncle burnt his house down. So it's a burnt down house right here. Mm-hmm. So they live in Minnesota. The owners of it live in in New Mexico, it looks like. So. But that's a big piece of property too. It's got, uh, it's almost— I'd say it's almost 7, 8 acres. What is it, 40,000 square feet or 409,000? 409,000 square feet. So that's going to be almost under 8 acres right there, I think. So one of the cool things, if nobody knows how to do this Instead of running to a calculator, um, this thing's got a tool on it where you can draw, and you can say show, uh, show measurement totals. And I just draw a box around it, and it'll give me the total. So I wanted to see it in acres. I got to switch it. After I draw it and draw it again in a different color. Now tell me the acres, please. 9.5 acres. It's a little tricky. Anyway, so almost 10 acres right there, and they can do this right here, all these brand new ones like this. So we can do a little research on what these sold for. 2023 sold for $430,000. 2025, no price tag yet. 2023, no price tag yet. This one's a bigger piece. No price tag yet. Still valued at over $450,000. This one sold $430,000 in 2023. 2023. 2023. That guy had a field day building houses. So this guy down here, 2026, it's in the middle of it. 2026, got it now. Um, sold in 2024, 2025 for $440,000, $450,000, $460,000. Like, he's just adding, adding zeros. $480,000. Adding zeros, baby. Adding zeros. So just went straight down the line. That's how you do it. That's how you do it right there. Land development. Buy a big piece of land and make it happen. 2024, $450,000. 2025, $496,900. Woo! There's some pennies on that one, and that one's only 2,155 square feet. We got to do math on that. So we're going to pull up the— I used to have a quick calculator button on my keyboard. Now I don't because that keyboard broke. So now I got to do the long way to get to it. So at $496,600 or $900,000— let's put the $900,000 in there, that makes a little bit of a difference— we're going to divide that against the $2,155 and see that they were charged $230 a square foot. So, and I know out there building them right now, we are getting probably $160 a square foot. So they made $70 a square foot times 2,155, $152,000 probably gross profit. So that's not bad on a new house. That's why they're building so many of them.

Right.

But they're all different. They're all different shaped houses. They're all different floor plans. So there's no speed and efficiency with that. You just got to have a good crew that can build and know how to read blueprints. So, um, but we've got 2 big pieces of land out there. Marquez Pro Builders, they just bought this. Look at that. Sale date was, was December 2025. And as a matter of fact, when we were reading this, it was saying that just across the street they're doing a minor land subdivision right there. So separately, properties along the same corridor. You know, um, are being divided. So this is the spot, this is where they're doing it, and brand new houses are selling for $430,000. So if we bought, uh, if we bought $219,000 and, and then went out there and knocked them down and build them up and all that, that would, that would be where we make our money. So inside of this deal right here, we're gonna, we're gonna see if we can make it Give us that info. So your seller finance on owner carry, sell below market for $230,000. Important warning on the wrap strategy: wrap mortgage is not the same thing as a simple seller financing. We understand. So Beth, path waterfall pursuit: acquire for the two, you know, uh, $200,000, $210,000, split it, sell Lot A. Which is with the house for 240 to 260. Give them a good cash discount and then build the house on the back lot. So looking at that, we would have a bit better outcome. So let's see what that looks like. Okay, give me the give me the economics behind. Buying it at $219,000 asking price, going out and doing the split, planning to build and develop a house on the back that's 2,700 square foot, selling it for $210 a square foot, building it for $130 a square foot, and then knocking down the house in the front lot, Lot A, and building a similar product, and both of these products get sold for $210 a square foot, built for $130,000. Give me all the economics behind this so I know whether or not we're headed the right direction and putting in an offer. So as some people may or may not know, my first real estate deal in Arizona was I bought 5 acres with a house on it. Um, the person I bought it from actually bought it in 2006 And split it, divided it, and had it ready for blueprints and permits. And then 2008 happened and everybody went out of business that were building houses. So he sat on it from 2008 to 2018 when I moved in with my brother in 2018 so I could be a travel nurse in Arizona. And my brother decided he was going to go be a travel mechanic in Alaska. So when he left for Alaska and left me the house, I basically had to come up with a way to pay the rent and do all the things there. And the rent was $700 a month, about $300 more with utilities. I decided to run an ad on Facebook and back, back before PadSplit was a thing, I rented out all, all the bedrooms in the house. There was 4 of them and I rented them out for $400 apiece. And then I tacked on another $100 for electric and utilities. I had 3 refrigerators in the house because my brother was a beer drinker. And so he would stock one beer fridge with beer and then had the other one stocked when that one went empty. And then he would, he would have food in the other. And so when he moved out, I got 3 refrigerators I inherited and we were able to have everybody's food stored away. I lived in an RV next to the house, so I rented out all 4 bedrooms. I made $1,600 in rent plus $100 each on utilities, which was another $400. The utility bill was only $300 and the rent bill was only $700. So, the rest of that money went to me and I sat back and started thinking about what I could do out there. And because it was already split and divided, I had called the owner and I said, listen, can we do a deal where I buy the whole thing? What's it going to cost? He said, well, I bought it for $900,000 and spent another $100,000 to get it where it was. It was $1 million.

Wow.

But in order for me to not recapture anything, um, I'm gonna need to sell it for like $300,000. I said, okay. So we did a deal at $300,000, and it was all verbal, nothing in writing. I said, can I sell the house first and keep the other 3 to build on? He said, yeah, absolutely. That's called a partial release. So we did the partial release, and basically I turned around the next day and sold the house for $150,000, and I Gave him $75,000, and I kept $75,000 to go do the rest of the properties. And so I invested that $75,000 into the vacant lots in the back, and that turned into a $2.2 million development. So with that experience, I know this could be a possibility. So let's take a look. The economics of the teardown and two new homes looks like this. So gross spread before land and other costs are $432,000. above, you know, what we have. So the $212,000 remaining margin, that's, uh, the number that we end up with after we do the acquisition. Now out of that $212,000, we have to come up with, you know, how the rest of this looks. So, um, Doing the math, we have a $212,000 profit, um, based on, based on this. So it's showing here that Break-even sales price is $228 per square foot. Maybe it's doing my math wrong. And this is where I, I built the, the contractor thing. So purchase prices here, contractor construction prices here, the split, the demo, everything comes down to a total of this. So if I have 2 houses out there that I sell— I don't know why it's doing the math this way. If each home sells for $715,000, that's a higher resale value. That doesn't make any sense. Hold on. Option A is to build site homes, uh, instead of doing 2 2,700 square foot homes, do 2 of them at 1,800 to 2,100, which would probably do okay too. Um, Okay, so I'm trying to understand how we lost money. Break it down. Eli 10. So I just gave it a prompt. Some people may never heard that before, but Eli 10 is a prompt that Uh, is built into all GPTs to explain it like I'm 10. So shows there's an $80 square foot gross, and so that gives me a $216 per house gross spread. So my gross spread should be $432,000. Now start subtracting buying the land, demo, doing all this, and Those costs, extra costs, are about $512. So that's why it says it's chewing up the money. It's because all this other stuff has to be brought into play. So that's what makes sense, is that the— it's able to break it down and show you where the math doesn't math anymore. Okay. Some people, like for me in that moment, I couldn't understand why we were losing money if I'm making $80 $80 a square foot profit, but it's because it's really too low. So in that regard, the economics are really too thin if I do it that way. So I will need to either increase the price of the— I will either need to increase the price of the sale of the house per square foot price to be matching what's being sold out there right now, or get the price of construction under $100 a square foot. And the price of the land needs to be negotiated as well. So go ahead and rerun those numbers. And this is the beautiful part. Once I figured out we're not making money off this, now I can tell it, hey, go find out why and how, right? And come back to me and tell me what's going on. I know for a fact, like, some of these numbers that it's telling me right here in the soft costs Like the demo, it ain't going to cost me $25,000, right? This split ain't going to cost me $12,000. The site work ain't going to cost me $70,000. But I'm glad I put it in there because I need, I need that in there. Like I do need those in there, but not at those prices. So if I can make the, if I can leave those numbers alone and go after the ones that I can actually deal with, that's the point. So anyway. Um, it is now 10 o'clock, and I appreciate everyone coming in today to check out this deal. Uh, looks like, uh, we'll be able to get back together next week. I have, uh, opportunity next week to, uh, get more people on. We have guests coming in and scheduled already for next week, so make sure you come in. I'm going to wrap it up with a prayer today. Heavenly Father, we thank you for the blessing of this day and the blessing of the life that you've given to us. Make it to where we can go out and get things accomplished and do things for your dear Son, and in his name. We pray. Amen.

Amen.

Uh, so everyone go have a wonderful day today, and, uh, see everybody back here Monday, um, 9:00 AM. And, uh, have a good weekend.

All right. Amen.