Catherine Bell walks through how AI can restructure a real estate deal in minutes. They recalculate a $250M investment across different rent scenarios ($5k-$14k monthly) and gross revenue estimates ($10-$16M annually) to test whether the deal hits double-digit returns.
Yesterday we went through Deal Hunter, Titan 23, and Free Estimates and re-engineered the entire thing. And what it came up with, the capital stack, was unfreaking believable.
And from a political standpoint as well, she literally said she's worked on it for 6 months and we did more in 30 minutes than she did in 6 months.
So, and she did— it brought up things that she just never would have thought of. And she's a very experienced developer, like she's been doing this for a very long time. Brilliant woman. And so this is the one that HTTD wants to roll it down for. So we just had to figure out the capital, not this one, but I think that we could roll this one into that one as well.
The gross annual revenue is between $10 and $16 million. So with a gross annual gross revenue, our annual gross revenue is not $250 million.
I think if we read the instructions, it missed it.
Let's redictate. Let's redictate. I'm not quite sure this math is mathing properly. So what I want to do is I want to look at the incomes of $5,000 to $8,000 and figure out if I invest $250 million into this project, what does the monthly rent do for me? If it's, if our gross revenue is between $10 million and $16 million, what does the ROI look like on that? So use the numbers you came up with to tell me what the ROI is on the $250 million. Try it one more time. And be patient. Everybody's seen that guy slide in here. He's my bodyguard. You look big enough to bodyguard me. So here we go. We got bank numbers right here. So it's showing that your ROI based on the gross annual ROI, like no expenses necessary, is between 4% and 6%. So we like double-digit returns on all of our stuff. So how we would achieve that isn't necessarily through the build-to-rent, right? But to me, those numbers are low because I want them to be around 14,000. Luxury, right? Let's see what luxury looks like. Is that— is that dictate? But let's give it some— let's give it some aggressive numbers. All right. I want to run this aggressively. So look at it at $12,000 to $14,000 a month. I want to see those numbers and those returns. Let's look at it now because we want to get at least a whole, whole number return monthly. Fractionally— fractional monthly returns are not good for investing. You're like, man, it's not even worth it. Yeah. All right. Keep going down, keep going down. So again, at $12,000, $14,000, you're almost at the 1% mark. And that's a, that's a key indicator. You want to make 1% rent or it doesn't make sense. If it don't make sense, it don't make dollars. Right? Right. So even at the most consistent, like all the way up at the most aggressive level, it's still a pension. Correct. 130 at that point. You see, look where your simple payback is. Your simple payback's a decade out. Wow. Right.
