Deal Room 031126.mp4

Good morning and welcome to The Deal Room Live, the daily real estate deal tank powered by Titan Impact Group, a global leader in AI-driven real estate investing and funding, where the real estate world meets speed, precision, and profit. And bring us your deal so we can put it into our AI model that analyzes and structures real estate deals in minutes, generates all the docs you need to get the deal done, and gives you a verified, unbiased breakdown of due diligence reports. The investors get the advantage of getting fully vetted AI-analyzed deals that cut their due diligence time down by 60%. So you're in the right place. Let's open the deal room now and get into today's opportunity.

Good morning, guys.

Hi, honey.

How are you from your beautiful catamaran?

I'm good. How about you? Are you ready?

We got our morning swim in.

Yes, I did.

Good morning. It's like afternoon or something.

It's noon.

Yeah.

Are you excited for your trip, Catherine?

No, we're going to Boulder. Boulder is not better unless it's June, July, or August. Then it's better.

Colder in winter is not better for Catherine.

Where is it in Colorado? Denver?

Yeah.

And is there snow or no?

So it says— I've been watching the weather— so it says in Denver we are— can expect— ooh, fire weather watch. That's weird. It's 33 degrees right now. Yay! 30 degrees Celsius would be awesome, but Fahrenheit, no.

Oh gosh.

Anyway, so yeah, it's 25, the lowest 25 today, and the highest 49.

That's so cool.

No, it's not.

But says the Southern California girl, that's so cool.

I'm like thinking maybe I need to just bring my giant fur coat because yeah, I don't— I just— I'm from Canada. I'm not there anymore.

I will say I feel like winter wardrobe is more fancy. Like, you can get very nice with winter wardrobe, but with summer wardrobe, it's kind of, kind of casual. So that's a plus.

That's funny because I feel the opposite, but okay.

Oh, really?

Well, only because my wardrobe is mostly summer, right?

Okay, I guess so. I don't have winter stuff, but like, when you came to California and you had that beautiful red peacoat and those awesome boots, like, I thought that you looked 10 out of 10. So you can—

thank you.

And so that's cold weather outfit. So that—

yeah, that's Arizona winter.

Oh my gosh, how funny. But it's for a Pace Morby event?

Yeah.

Oh, awesome. I hope you guys have a great time.

Yeah, it'll be interesting.

What's going to be interesting?

Just seeing his whole event. So supposedly I was aware on a webinar last night and he said that they have done zero marketing or advertising and they have 3,000 people coming.

So it's just zero marketing and advertising.

Wow.

So it's interesting. Like, I'm really curious how this event is going to be and who's going to be there and the caliber of people and, you know, just all of that.

So yeah, our raw rides are going to be interesting.

Yeah.

Also something I noticed with events, every one that I've been to, people come the first day and then the second day it decreases by like 20% of attendance. And by the last day, it's like 50% attendance. Even if it's incredible speakers.

I have to say, like everybody— well, it's funny because he talked about that, that they don't announce the speakers and when the speakers will be because some speakers go over, some speakers are under, some people judge the speakers and not come and, you know, just all the things. So yeah, that was really interesting. So, well, you know, everybody that talks about this event says hands down it's the one event a year that's absolutely amazing.

So here we go. Good to know.

And speaking of events for the OZY Summit and for the Wealth Wise Woman, Is it only women that are allowed for the Wealth Wise?

No, I didn't know. Everyone, family-centric event.

Just want to make sure.

Male, female, as long as you're 10 years old or older, you should be there.

I'm planning on it. Katya was asking me. So my dad, I'm trying to go. We may go to Japan. I just don't know when in May. So I'm trying to plan around it.

Oh, that's awesome.

100%. But I want to go to it. So I'm trying to talk to him to figure out both. I love it.

I love it.

And both, called an and both life. Japan is awesome. That's awesome.

Love it.

It is gender non-specific. You can identify as whatever you want to identify as.

Perfect. So I don't have to wear a wig or anything? I have to show up in a dress?

No, it's— again, it's family-centered.

Yeah, yeah, no worries. I just want to make sure.

But Blake does.

Tommy will, but you don't have to, Blake.

No, Blake does.

Blake does.

I'll dance with him as long as he wears a dress.

Blake could be— yeah, it's fine.

Oh, so if I wear a dress, I don't have to pay for a ticket?

Nope, nope, not how it works. Dresses don't get in for free. So what's on the agenda for today?

I don't know, usually you talk until 10 after or quarter after, so getting the floor this early is kind of weird for me.

Wow.

Yeah, wait, who talks until 10 after?

I've got the video right here. I'm working on them all right now. I'll open up my video screen. You can see I got 3 cameras running right now, trying to get all the videos edited before we get out of town. So the Eel Hunter by Landshark is kind of stuck for me because I'm in the middle of importing videos and stuff. So what I did do was I did use free estimates this morning. Let me see if I can— didn't you get Blake his, uh, did Blake get his, his thing?

I received it. Yes.

Okay. And then Catherine, do you want to show people how to do the survey and we'll switch? Flip-flop after I get some of these videos updated, you can show people how to do the investor survey and walk through that a little bit. Because you just sent that to one of your investors yesterday, didn't you?

I was on a podcast yesterday and actually it was, I was on several calls yesterday. I think almost every call that I was on yesterday, I told people about the investor survey. And from the standpoint of people can learn from my lesson rather than, you know, going through investing for 20 years to land on that I like to be the bank and rent dirt. Like, how about? They actually could take the quiz, learn the lesson now rather than having the painful thing, save themselves all the damn brain damage. So, um, obviously you go to ExploreGPTs and then you go into Land Shark Investor Survey GPT, which yesterday it got— GPT was being weird, like it wouldn't pull things up. Anyway, so of course we just click on things. Uh, Tristan, it'd be interesting to see what yours is because on the other side what happens, which super, super cool. Last year, Tristan, is because I sent this to Blake.

Those are quite concerning, Catherine. Those bounce rates, different topic, but the emails are just—

we'll deal with those later. So this is what comes out on the other side. So this was Blake's. So Blake, we can— I want to go through it. More importantly, I want to hear from your perspective, like what, what you see for yourself out of this, and then we can go from there. Do you want to talk about that?

Yeah, we definitely talk about that.

So tell me what your thoughts were when you went through this and what you learned about yourself.

And are we talking about when I took the survey or what I received afterwards going through the slideshow?

What you received?

Well, both.

Let's talk about both.

So originally, I didn't have much of a plan going into the investor survey because very new to investing and everything like that. So just going through the entirety of the process, there was a lot of questions that were very simple and basic, and some other ones was asking me, like Tommy mentioned, the second question is always the toughest when it was asking me What are my financial goals in a couple of years coming up? For me, I have absolutely no clue originally, but after doing some deeper thinking, I was able to pull some together. And it was also able to give me some very good mentors in the very end once they submitted it. And then going through this scale, and at the very end, it just showed me different techniques and ways that align with my vision and with my purpose as well, where I don't just kind of pick one and stick with it. It gives me proper ideas that actually aligned with my goals and my thinking. So I think it did a very good job as well.

How long did it take for you to do the survey?

For me, I took my time with it. I was also watching our dog, so it took me about 2 hours and 15 minutes and I was typing as well. So that took me longer.

Okay, so that's good to know. That's awesome. Okay, so going through this now that we have your plan, were you surprised at any of this?

I mean, all of it was a little bit of a surprise just because I didn't know fully what was out there. At the same time, it just expanded my horizon even more.

Right.

I'm just so much newer to it. I wouldn't call it a surprise. I would just say it was just enlightening. That's kind of more of a word I would use for it.

Okay, cool. So, and so moving forward, now that you know more, like the enlightened part of all of this for you, like moving forward, are you clear what, you know, what direction and what your, what I call it, your conditions of satisfaction are for doing any deals?

I would say it's definitely given me a better foundation and it just structures things that I wouldn't have thought of otherwise. It just gives my clear visions and my goals as it shows, and it just gives me a very clear breakdown guideline of things that I should follow that'll align with myself. And I can also tinker and kind of change a little bit of things, but this is a very good basis to follow as well.

Yeah, I love this. So I love this plan for you where it talks about So year 1 is like to look at owning 2 to 5 commercial assets or structured partnerships. So, and then of course, making sure that they're tied into cash flow and all of that. So when, when this says that, I want to hear what, what you glean from this, and then I want to expand on this for you.

100%. I actually just finished the Wealth Wise Woman book yesterday. I was listening to as an audiobook. So I'm slowly getting through those. And there was a lot of mentors in there that I aligned with. And what I liked from some of them was having assets, like this is mentioned, either commercial assets or structured partnerships. And I think trying to go into some different deals, such as trying to own college housing in some other cities where I forget the name of the speaker, but she mentioned that she actually renovated different college housings and things like that. Or being able to own multifamily housing. So I think just the more I kind of go into this, it just gives me better structure of what I want to go into. So I'm not— have a full plan, but this just gives me a better guideline. So I'm still working with this right now. I don't have a full plan just yet. I'm slowly chipping pieces away and just getting better, having a better structure. Love it.

So, and it says right here commercial assets. So what I want to do is expand inside of like what it looks like for you to have part ownership inside of commercial assets. So some of the commercial assets are like laundromats, car washes, self-storage, blue-collar companies, RV parks. So people tend to classify RV parks as real estate when you need to understand that RV parks are two completely separate animals. So you have the real estate piece of it, but then you have the business piece of it. So it's two separate pieces put together. So that's a commercial asset. Trying to think. So Tommy talks about how he had, what are they called, like the ATV rental type of business.

The—

I'm just trying to think, you guys, what are some other commercial businesses like? And the thing I want you to think about is when you're going about your day-to-day life, what are the things that you and your family typically spend money on? Like doing, right? Because those are the type of businesses I want you to look at like, huh, what, like, and Tommy and I talk about this all the time, like when we walk into businesses, our brains can't help it, we literally start doing the numbers. Like how many people are here, how much did they spend, what's the overhead, how much does this cost, like what's the profit that they're making, you know, annually, quarterly, monthly, today, like, you know what I mean? Like, our brains start doing that. But when your brain starts doing that, all of a sudden, like, opportunities that you didn't realize pop up everywhere, right? So, and invest in things that you, that you know, like, love, and trust, right? Like, you know, Tommy loves ATVs and ghost town tours and stuff. So of course, having a business that does that only makes sense, right? Like, I love horses and equestrians, so I want to figure out how to have that type of business. I love car washes. I love exotic cars, which is why yesterday when we were talking about the, um, office space and having the exotic car storage, you know, with all those services, I love all of that, right? Like, I love private jets, so of course I want to, you know, invest in private jet companies. So again, it's like thinking on that level for commercial real estate. So each of you do me a favor and just tell me like 2 to 3 commercial businesses that you would consider investing in. I just want to like expand for Blake and Katya to be able to go, oh, you know what I mean?

Well, I mean, for me, obviously, that you've listed some of them— car wash, store, self-storage, The other thing about, you know, so anything, any real estate above 4 units is commercial. So you said like multifamily, if it's, you know, if it's 5 units, 4 units and below is still residential. 5 units, 5 doors and above is now commercial. That's the break between. So a 3-plex is residential, a 5-plex Or, you know, is, is commercial. So that in that realm, what else, Tristan, you can jump in.

I'm half listening. I'm just completing a spreadsheet. Forgive me.

No, that's all right. We're just coming up with commercial.

What are different commercial? Putting together a storage yards, like having vacant lots.

Oh yeah.

To park, you know, impound vehicles. Like if you, I'd love to introduce you to Ben Korn. Ben Korn finds most obscure properties. They're just vacant pieces of land. And then he, what he does is he figures out how to use it, what's called the highest and best use. And so he's renting them out to the city impound yard that tows probably anywhere between 20 and 40 vehicles a day. Where do you put them all?

Right. Solar farms is another one, right? Solar farms is commercial. Solar panel farms.

Yeah.

But getting into energy can be kind of tricky.

Yeah, I'm just, I'm not saying finding a fund that's already in energy.

We had a meeting last week with a guy who, who's not actually building the energy part of it, but he's buying land.

Yeah.

Provide for the energy components. So that's another thing you can do.

Marinas, if you're into boats, you could, you know, you could do a marina.

Yeah. Boat rentals, paddleboard rentals, like go buy 20 paddleboards over at Dick's Sporting Goods, put it on a credit card, take it to the river and rent them out for $100 at a pop. Yeah, you'll get that credit card paid off quick before the end of the month.

Yeah, right. And people will do that because they don't want to haul it back and forth. They just have to go down to their— you know, I live on the Columbia River. There's jet skis. If you like jet skis, you can do the same thing with jet skis on the river as long as the rivers allow it. Paddleboards, little kayaks, paddleboards, jet skis if it allows it.

So as you're out and about again, I just want you to start thinking about, huh, that like These— this, this might be an interesting business. I wonder what the numbers are on it. So again, just expanding, like, which is why I want you guys to play Cash Flow more and more and more, because those big deals are all the different types of commercial businesses that you can have. Like, I feel like I need to go grab the card deck. There's like—

and how—

yeah, the shop, the sandwich shop, coin-operated laundromat.

That's my favorite one. The other thing too, right, is, and Catherine kind of hit on it, but you know, how do you turn what you like? We want a private jet, but we don't want to own a private jet per se. We want our private jet to be an asset. So, you know, if you're into boats or you're into, you know, whatever it's, how do you, you know, a lot of people who do Turo and have really, you know, expensive cars and Turo, That's how they've turned that expensive car into an asset. They get to drive it whenever they want, but they're not paying for that car. It's an asset. They're doing a business called Turo, and they're Turoing their car. And, you know, and so how do you— you know, if I knew then what I know now, if I was your age, I'd own that private jet because I would have bought it, you know, at 21 and learned to fly it and, and all the rest. But, you know, that's my thing. Whatever your thing is, What's the way to turn it into an asset?

Well, and Deal Hunter does a good job of that. As a matter of fact, we use Deal Hunter to figure out how many jets Catherine had to own in order to get like 400 hours of free travel. And she would need to own a total of 4 jets and put those through a, a, um, the reason why it would give, it would give her 100 hours per jet. Uh, she would be a fractional owner. And get 100 hours of free travel for being a fractional owner. So she would have to spend $1.6 million per jet, which is only getting her a 16th of that jet. So she would buy 100 hours on 4 different jets by spending $1.6 million on each one. When you do the math on that, at $1.6 million and you divide that by 100 hours, you're spending $1,600 per hour flying on the plane that normally costs $9,900 an hour. Does that make sense?

So this is where we see—

becomes an asset because of the fact that you're now saving over 90%, right? Yeah.

And then if you do some— you're like, if you look into things like Priceline, right? You guys all know Priceline and Booking.com, Expedia. They're all— now they're all the same company. They used to be different companies, but Priceline got started mostly— the guy that started it wanted to fly free.

Marriott at McDowell And he was—

started dealing with airlines and how can I fly free? And it birthed this thing called Priceline.com, who is now Expedia, who's now Booking.com. And they have pros and cons. You know, there's Catherine, I can tell you all about Booking.com. It triggers— I don't particularly use it for multiple reasons, but that's another industry that got created 'Cause one guy was like, well, I freaking wanna fly for free. How do I make that work? And then other people can benefit from that.

Well, and yeah, and at this point I'm not talking, I'm not encouraging him to go start a company. I'm just looking at like how he can be a part owner in existing companies. Like that's the thing I wanna tap into. So again, it comes to making sure the mission is aligned with, you know, again, your conditions of satisfaction. My number one condition of satisfaction We leave every person, property, and community better than we found them. That's number 1. Number 2, do I get to be the bank? Number 3, do I get to rent dirt? Like, those are my things, right? Because there's like, literally, I think I've got like 50 deals that came through my desk just in the last couple of days. And again, trying to like wrap my head around, you know, do I do this deal? Do I not? Like, hold on, does it meet this criteria? Nope. Number next. Nope. Number next. Nope. Number next. So it just makes it really easy to move through. So that's what I want to get you really, really clear in as you move forward. And we're, you know, obviously we're going to help you through all this. So the, again, owner specifications, understanding, you know, there's the— oh, oh gosh, I love this conversation. And Tommy, whenever you're ready, you can start, but if you're not going to start, I'm going to keep talking. So there is a difference between working on the business and working in the business. And I remember in my 20s when I learned about this, like, it revolutionary. So working in the business is doing all the things like the emails, the calls, the meetings, the bookkeeping, like all the things that have to be done to actually make the business work. But then there's working on the business. So working on the business means that you're strategizing, like you're figuring out like, okay, so you know, what is the next— who is the next who I need to connect with? To take the business to the next level? Or what marketing strategy do we have to put in? Like, it's the things that are actually the planning, the plotting, so to speak, like looking at the map and figuring out where you are and where you want to go. And like, what are the things that you need to do to get there? So working on your business, and that's what this is, it talks about 10 hours a week of working on your business. So partnership formations, capital allocation, creative structuring, and then making sure you delegate the daily duties, property management, routine admin stuff. So this is a really critical piece that most business owners fail to do, is taking time to work on the business, you know. So that's— and we'll, you know, be diving into more of that. And if anybody wants to add anything through this, let me know. And then of course there's the do the numbers. Numbers tell you what to do. So it's, you know, making sure you're tracking your KPIs and all the, the number of metrics that you need to do, which makes sure that you make the right decisions. You're stress testing it and then doing quarterly reviews to make sure that you're on track or if you need to readjust course. And here's the thing that a lot of businesses and, you know, don't understand is that the course correction, it happens more often than people care to, you know, realize. And it's just like flying a plane. If you're flying a plane from New York to LA, right, it's never a straight line. They're literally like course correcting like 5 bajillion times to get there. And it's only like literally a couple degrees at a time. But those couple degrees matter all, make all the difference in the world, because if they don't do that, they could end up in Seattle. And that's a problem because they want to be in LA, right? So a business is the same, course correcting with these little tiny increments by having your dashboard and making sure that all your metrics, you're really understanding what those are. That helps us keep, stay on track. So that's a really important part of whether you're running the business or not. You do want to know what those are. The acquisition filter. So again, this is really important to you, the ethical alignment. This was really important to you. And then the governance. And then of course math, whoop whoop, sounds like me. So I love it. And then making sure you have the guardrails in place. So this is really important, like milestones are being met, which I don't know why it says Laura, which is very weird.

That's not, it didn't capture in because that's all garbage. If you look at it, you see Blake.

Yeah. On that one, it, it, if you go back up, it'll show you on the other side.

The other side.

So what it did was it, it didn't I put the correct name.

No, it's, it's all garbage on the last.

Garbled.

Yeah.

Garbly gook right there. So, but the mitigation side of it was correct. It like figured it out. So again, these are just ran right through a, an AI tool called NotebookLM. And so it does tend to fall back into a little bit of AI deliver, you know, Garbled.

Laziness. AI laziness.

So it does tend to create that issue, but the idea is that you can go and just see that it says over-structuring, vision creep, and competence gap. Really didn't have anything to add underneath those, but the mitigation matches the risk. So if you read it from there, it does make sense, but the other words are just fill space.

Yeah. You know, so for your 90-day plan, we want to make sure you define, you know, your first, your first stream of income. Of many, many, many, minimum of 7. Vendor hall experience. That wasn't me. And then from there, once we discover like what it is, the first one you want to do, then we're going to go and find the partnerships. And then find off-market deals, which are the best. And actually, I think Tommy, Tommy has told you all the story about the septic tank company, how that's an off-market deal, and how that whole relationship happened. Um, so if you don't know that, we can go over that. And but then month 3, underwriting and submitting structured offers and secure your first deal. So it's funny because Katya like is like a kangaroo jumping forward to all the things. She's a go-getter, and you can be too. I just want you to have accurate thinking. And like, all this investing takes time. It doesn't happen overnight. This is the tortoise and the hare. We are the tortoise. Tortoise always wins. So, uh, Blake is the architect and we want to structure it so that you have a really great operator. I'm going to mute him out. So the creative architect, uh, well, so we build with intention, we scale through structure, we succeed through alignment. This is not hustle. This is architecture. So I really love that. So yeah, I'm really— and I know you and I are actually— this is similar to mine. So Makes it easy. So I'm excited to have you be as young as you are to be looking at and doing deals and letting us come alongside of you to be able to, you know, make all this happen. I wish I had somebody at your age to walk me through all of it. This is brilliant. Anyway, so it's like—

and I are both so lucky to have you both. So thank you so much, guys.

We for sure are. We appreciate it.

Well, I feel it's funny because I, I was actually sharing with friends of mine yesterday. It's like, I feel super, super blessed to have, you know, have you both here and leaning in, doing all the work with us. Like, this is— as a mom, this is super gratifying given that my kids are not here. So I feel like I have all these other kids I'm adopting because you're the same age as my kids and you're awesome.

Nothing to do with Oh well, they'll get that.

So it's very gratifying that I have somebody else to pour into because yeah, me not having somebody to pour into is not good. I could be a smother real quick.

Okay, but I actually don't think that I know the septic, um, story.

Story?

No.

Oh yeah, that's a really cool story.

Would you be able to tell us?

Tommy, do you want to tell the septic tank story?

Are you referring to like how I came about selling them or what? I'm trying to understand what story.

So that it's an off-market deal and how that whole deal happened, like how the relationship happened and how it evolved and now how it's turned into this whole other thing. And I just have to laugh because yesterday I was sharing with another one of my investors, which by the way, paid them back, 45% ROI. Pretty excited. That is not typical, just so we're clear.

This little disclaimer is going across the bottom.

Don't hold me to any— it just happened to be on this deal. It was awesome. It was a triple net lease commercial medical office space. I'll talk about that. But we were talking about, have you ever all heard that, you know, there's few things that are guaranteed in life— death, taxes, there's a third one.

Are you ready?

Poop. Everybody needs to poop, which is how these septic tanks came to be. So, yeah. So go ahead, Tommy.

This is why I love this business, because I was building custom homes and the difficulty I experienced in trying to find somebody to do septic tanks cost me about $10,000 just to find somebody. So I was— I had a couple of people that, like, I seen signs on the side of the road. It was just really hard to find septic tank guys. So I ended up just deciding, you know what, like, I know how to do septic tanks. So when I was a kid, I dug trenches for a septic tank company, but I had not done the actual engineering of it. So what I did was I took me some time, but I found the place that sold them and I asked the guy there, I said, hey, do you know how to do these? He says, yeah, I do them all the time. He says, I dig the holes and I do this. And he gave me all the information about how to do it because I was buying the product from him and he was super nice guy. His name was Ellis. I was like, hey man, I was like, it took me almost like 4 months to find you. Now that I got you, I don't want to lose you. I don't want to miss out on any of the information that you have. I was kind of like you guys with, with the information stuff. It was like super valuable to know that he would, you know, he was available to me to, to do this stuff. So I, I says, you know, can I like run ads for you, make it easier for people to find you? He's like, hell no. That means I gotta work more, right? He's like, there are not many of me out there. So when they find me, that's great. But otherwise I'm not interested. And so I was like, okay, well, I says, how about if I sold these things for you? Because at the time I had discovered this little, little hack on Facebook Marketplace that if you try to sell a service on Facebook Marketplace, they'll ban you right off the bat. You're gonna get kicked off. You like, if you're like, oh, I wanna I want to do install of carpet or install flooring or install pavers or install landscaping. Boom, they'll kick you right off. And I discovered this because I had built a fence company by basically listing fence block and selling the block and not selling the installation. So all I did was run an ad with blocks and I was like selling blocks and they're like, hey, do you know somebody puts them up? Hell yeah, I do. So we were doing 1,000, 1,500 foot of fence per week. And I was making really good money from it. So I'm like, I wonder if I can do this with the septic tank. So I took a picture of the septic tank and I went and got a concrete one and plastic one, took pictures of them, took pictures of the parts, put them on Facebook. And literally within, you know, within hours, not, not like days, hours, I was getting my phone blown up and my messages were hammering with, is this available? Is this available? It's an auto response that people use on Facebook Marketplace. They're like, is this available? Is this available? And I'm. Just put in my phone number and it's blowing up. And so I went, I already knew my prices. So I was like, oh, you know, what do I have to lose? I'll just, I'll put a 50% markup to it. And so if I buy it for $1,000, I'm selling it for $1,500. So I set up to do that and sure enough, I started moving product. And so much so that I increased his, you know, like weekly deliveries.

You made him work more.

By like 25, 30%. I made him work harder and he's like, what the hell's going on? But what he did was he just went and hired more people to work at the factory because all I was doing was selling the parts. I was, I was actually going out and getting other people to do the installs because he took too damn long. So I ended up buying 3 septic tank companies that did installs. And then now we're buying the manufacturer because he's like, I'm done, I'll sell it to you. So we're buying that. Nice.

So that's an off-market commercial deal, right? Cool, right? Again, it's all about the relationships. When you find out what the motivation is, because his kids don't want this company and he's older.

He just doesn't have kids.

So, oh, get this, tell him, yeah, tell him what you— what ultimately he wanted and negotiated. What does he want to do? And you promised him Alaska.

He just wants to go fishing. He wants to go fishing at least once a week in Alaska.

That's it. Like, when you find people's why and what that, that thing is, and then you just make it happen. So Tommy knows you know, somebody in Alaska who has a fishing company, and he's already coordinated to like get this guy out there to go fishing. Like, it's not always the biggest check that they want, right? Man just wants to go fishing in Alaska.

So you're almost like going into these relationships like solving their problems and fulfilling their needs.

Yep, that's the win-win-win.

So it's like a synergistic opportunity. That's really cool.

You got to go after the win-win-win. The win has to be for me, for them, and for the world, or you walk away.

If it's not win-win-win, if it's win-win-lose, or win-lose-win, or lose-win-win, you walk away.

Or win-win-draw. Draw means like the, the, the, you know, the community— here's the thing, the community that I'm going to be serving is going to expand exponentially because of what we're looking to do. So That's why it's a win. If it was a draw, I'd say, okay, I'm raising my— all my prices because now I know I've got the corner on the market. I'm going to raise my prices up to the 50% and I'm going to literally change the price across the board on how much I can make and basically gouge the community because there's two things I know. We're not slowing down on building and all the houses that started with septic tanks 40 years ago are now coming up on needing new septic tanks put in.

That's a really important thing to understand.

The demand is going to be through the roof. So I mean, I have, I necessarily don't have to lower my price to get business. As a matter of fact, I want to kick it up a little bit so I can expand and scale. But the win-win draw would be if I left the price where it was and just continued to get people for 50% more than what it cost me to do. Right.

So there's a British sales guy called Neil Rackham that wrote a book called SPIN Selling. And it's an acronym for Situation, Problem, Implication, and the Need Payoff, which is the value of the solution. So in, in all cases, what they tell you is the symptom, but it's not the problem. This guy wants to go fishing in thing, but the symptom is he's got a business that's weighing him down. He can't sell it or give it to his kids. This problem is that he wants to go fishing, and the business is the symptom problem which is the symptom that's preventing him from solving the problem of going fishing, right? So what's the implication if he doesn't get to solve his problem? He's never going to go fishing. And the neat payoff is that he managed to find somebody to take over his business. Fuck me, he's going fishing every day. So it's everything they tell us is the symptom until we dig down and find the actual problem.

Yeah. And then to actually discover what the problem really is too, is that he's been using it as a paycheck. So therefore it's not truly a commercial business as much as it is a sole proprietorship. The nice thing is, is that with or without him there, it'll operate. So that part of it's good, but on paper and the reason why we're having to be creative. Now here's the other part. I'm doing a— I'm buying it for $12 million. I'm only giving him $5 million to get it. And then he's going to do an owner carry on $7 million. So he just needs it. Like I said, the problem is that he wants to go fishing. I can just give him $5 million. He's going to go fishing. And then I got 2 years to pay them off the $7 million. So, and with the plans that we got for the place, the ability to get to that $12 million mark will be very, very doable, very, very doable. Right. So that's the other side of it. An arbitrage, something that Blake might want to consider is called co-living. I did it on my first deal where my brother lived in a 4, it was a 5-bedroom house with 4 baths, is very old, dilapidated farmhouse from 1974. So basically I got the house for $700 a month. I went and took, cleaned up the bedrooms, made them really nice, cleaned up the kitchen, made it really nice, and then put on there rooms for rent, $400 a room. I rented out each room for $400. I slept on the couch and basically made sure everything stayed running and stayed on. But I had 3 refrigerators in the house because my brother was a beer drinker, so he had to have 2 fridges for beer. And then we, uh, what I did I converted the beer fridges into just regular food, food fridges. And so everybody had like their own section of fridge, plenty of room and all that. Literally made $2,000 a month while my rent check plus utilities was only about $900. So and again, like, and then I limited it. I said, you can only stay 6 months, you can't stay longer than 6 months. So and I gave people, I says, you got to rent by the month and you can only stay 6 months. So that eliminated anybody getting comfy and all that. And, and, and kind of ruining a good deal that I had going. So, uh, they came in, they stayed for a while and then they were gone. I turned that into 26 units. What I started with as far as my brother's house, I turned into 26, 26 units, uh, include, you know, basically just doors. There's 5 houses with, with, with almost 4 to 6 doors, 4 to 6 rooms per, or units per, uh, per house. Right. So that's the other way you can get into doing stuff.

So is this— so Blake, with all of this, I know we're hyper-focusing on you and your plan. What are you hearing for yourself out of this?

Opportunities, realistically. But I know I just got to hone into them as well. I wrote down a lot of things about commercial, and also I know the co-living sounds very unique as well. I think for me, it's just trying to find different things and ideas. Like one thing in my mind is I want to go talk to all the paddleboard rentals that are down in Newport. Or kind of nearby by the beaches and just chat with them and then just see if there's any way I can kind of get it in with them. Ultimately, it's just trying to find these little opportunities, knowing not every single one's going to work out, and that's fine. It's just kind of pushing through as well. So I think just expanding my horizon as well, ultimately.

Well, and I would, I would back into it by finding out like if somebody will open up and share what their numbers are with you, like, you know, again, a whole, maybe an apprenticeship program because—

Yeah, I was gonna say, if you wanna, if you wanna avoid getting turned down, cuz this is, this is something I learned, uh, difficult, uh, difficult as it was by doing door knocking. You're gonna get told no 100 times. So you can either be crafty about how you ask or you can be really good at and resilient at getting turned down. So one of the things that I do and, and, and I'm coaching Catherine on doing is you got to show interest in the people you want to work with. Right. And so if you want to go down to the beach and find out how people are doing, go, hey, I'm a business student over at the college. I would love the opportunity to interview you about your success and how, how, how you feel about, you know, your business. Because I want to, I want to write a thesis about small business. So you make it sound like you're doing a research document. Or research paper, and you're, you're not lying because you are researching them, right? But maybe not for a research project at school, right? And so you're, but you're going to position yourself in a way to get information that would not otherwise be readily available, especially if they think you want to like nose in on their business.

So yeah, that's, that's great. And then the other piece you can do, right? Like inside of the world we were, Catherine and I were just on a call. You know, when we, and you probably, both of you probably experienced that, right? Like the world of school, the world of the way the education system works in our country is, you know, if you collaborate in school, it's called cheating. That's not the way the business works, right? So it's right, like you could additionally, I love what Tommy said inside of that, additionally talk like, look, what would enhance your business? What would, you know, to this paddleboard guy, like, you know, would it be more paddleboards? Would it be if I bought a snow cone machine and stuck it right next to your paddleboard shop? Would that be, you know, like, what would— inside of what we've been teaching you guys, the world of Levi's, right? The gold mining days, the gold miners didn't make any money. Levi Strauss is still in business. Do you know what he was 200 years later?

You know, you guys remember what he was famous for?

He was selling the shovels, right?

No.

No jeans. Wasn't it the rivets on the jeans that were stronger than the other jeans?

Right, ding ding ding, you, you win, you win the prize.

And yes, Kat, yeah, he would sell— he was selling shovels and mining equipment and whatnot, but he, he's not still selling that obviously because people aren't doing that, but he is still selling jeans, or his company is still. And you're right, like it was the rivet made it stronger. So it's what, you know, it It's, there's also that aspect of how do you, like, what can I do that would enhance your business? You know, you say to this other, you know, this person, like, what would be, what would enhance your business versus I'm going to come in and become competition. Coopetition. Catherine and I did years and years of a company called mentoring with a group called CEO Space, and he was all about coopetition. As opposed to competition, right? How do you cooperate? How do what I bring and what you bring make a third more powerful collaboration, right?

But you're, you're so right, Laura, because in schools we're taught to kind of stay in our lane, get out of everybody else's business. But when Catherine gave us the homework, I think my favorite book to this day is Who Not How, because it literally transforms your mind into building up others and simultaneously building up yourself. So I 100% agree with that approach.

Yeah.

Super excited.

So yeah, really great. What else?

I've got a deal that I ran through, through, uh, and this is all great insight. I just want to say thank you very much again. So I don't feel like I'm being pressured or anything like that. I want to talk about these things as well. So I think this is all great. I've been learning a lot today.

Well, and that's the thing, like, uh, one of the re— like the whole, uh, what do they call it, executive assistant program or whatever that we have, internship. Like my internship was with a global multi, you know, centum, I don't know if they're a billion-dollar company, but they allowed us literally to go in and do unpaid internships. And it was like, oh my God, like what other company's gonna let me come into the underbelly of their company and really see how it works and then turn around And because of that whole experience, I took it and I mapped it onto my company and I had like a 1,700% in ROI increase. It was insane because I, you know, saw how they were doing it and mapped it. So what we're doing, you know, Katya, you're helping with this event and things like that. The whole purpose is I want you to be learning hands-on experience because there's theory, what you learn in school, but then there's like reality of what, how it actually works. You know, like, you can read about riding a bike, you can write a thesis on riding a bike, but until you get your butt in that seat and you start pedaling, right, you have no idea how it feels. So that's one of the, one of the reasons why I'm super excited you guys are here and going through the actual, like, okay, let's make the calls, let's do the things, let's figure it out as we go. So it's all perfect. Anyway, so Tommy, you had a deal you wanted to run?

Yeah, it's taken a minute. I'm trying to get it up. It's not cooperating.

Yeah, ChatGPT wasn't cooperating yesterday.

It's just going to show you how free estimates works type of thing.

And I know you guys are building your own golf course right now. That would be a commercial real estate, correct?

Correct.

A golf course?

Correct.

Yeah, that's a, that's, yeah, that's a commercial development, but it's, it's what they would call a master plan development. So it's commercial is like the very easy way to say that.

The golf course part of it is commercial as a business, but there's probably residential around it. Like I live in a golf course community. And so there is a, you know, there's a, I don't even know how many homes in and around the golf course. They're separate. I mean, we, some communities are golf course communities. If you're a part of that community, you're part of that golf course. If it's private or whatever, this is a public golf course that we can access, but we don't have any preferential access to it as homeowners. We just say we get to live on a golf course, you know? So yeah.

So on the mechanic shop here, what I did was I got a call from a customer/client to go look at it. They are changing a car wash into a, uh, into a mechanic shop. And so There's a lot of work that goes into reading this, right? And what he specifically asked me to do is figure out where to bring the water line in so that they can connect to it and do, uh, fire sprinklers in the building. Because they have to have fire sprinklers in the building. So, um, without going into all the details here, you can just see what we got. It's just a lot of blueprints, some drawings, information, words. All the things, right? Like big page, big page. So when looking at this, there's a lot of information there. So what I did was I said, okay, great. Pull it in here. I need to locate the water line and make a tie-in for the fire suppression system on this project. I need an estimate of materials and labor. Use the address of the commercial building on the plans. So this guy went and got a, a really crappy car wash and turned it into a mechanic shop. Brilliant, right? So, uh, takes care of a lot of issues for him. He needs a tenant in the building, and if the car wash ain't making money, well, move 'em outta the way. Let's make some money, right? So going through it, it took, you can see it took almost 12 minutes to read it. And for GPT, that's, that's, that's taking a minute. That takes a while, right? So anything that takes 12 minutes to think about, 13 minutes to think about, probably gonna be pretty thorough. And based on what I'm looking at here, it was extensively thorough. So, uh, I was super excited by that because again, Having, having the ability to get this type of work done and within an hour, right? It showed here assumptions used, 1 underground tie-in point, 4-inch service assumption, 20 linear foot new. And so it's basing this on what I told it to go look at, right? So it gives me all the costs, boom, direct project total. And then on here I said, does this Does this, does not include any piping inside the building or is it just for underground? Just for underground. Did you locate on the plans where to tie in and how we need to construct a stub-up? And because I understand terminology, I can use terminology with it that I understand. And the way we built it is so that it provides us with the best possible answer. From my own, you know, from my own thinking, right? So the amazing part is that it won't take me 3 days, 4 days to get this guy a price. I can get him a price today. I'll send him a text message right after this call and say, here you go, you know, and then just stand and stand, stand by waiting to see, you know, what's next. So he'll probably move forward. Because he wants to get the car wash done or, you know, not necessarily car wash, the mechanic shop. I'm sure he's got somebody that wants to get in there pretty quick. So that's, again, he's got paperwork documentation from the county, from the city on it. So we'll see what happens. You know, I think it's, it's fair to say that, you know, if we can get him a price back relatively quick, then getting a contract done is going to be that much easier. If I can get, if I can get them a number quick, because then I'm also beating out anybody who who, you know, might take 3 weeks to get it done. So if it takes somebody else 3 weeks, I'm like, that, that goes to show that, that, that company takes too long to do stuff. This guy might be in a hurry, you know, kind of like me. As this thing continues to think— Katya was talking about this the other day. She's like, I feel so spoiled. It's ridiculous when, when ChatGPT takes longer than 3 minutes to think about something. It's like, yep, I know, I feel that pain.

Hey, Katya, while we're waiting for ChatGPT, Laura gave you full access to my calendar.

Yes, I can access it.

I want to talk to you more about what it looks like to take on some of my calls that I'm having to help pre-vet these people. Okay. Because these people are— a lot of salespeople are getting onto my calendar just wanting to sell me stuff under the disguise of that they're investors. When they're— so I want to figure out like what that looks like with your schedule and if that's even possible.

Okay.

Yeah.

Do you want to schedule another Zoom meeting today or would you want to approach it next week when I come back? What's— or tomorrow?

Yeah. How about when you come back? Because then— because we're right after this podcast, we got to go. We got to get the postcards and get to the airport and do all the things.

Okay. I'm back on Saturday. So starting Sunday, I'm home. Okay, cool. Let's do it then.

Well, yeah, that's perfect.

Sounds good.

So yeah. And so you can see here that it, it basically was an assumption. It says it could not clearly confirm the exact tie-in location or stub-up construction detail from the plan set. So I remember from the conversation that he wanted the, wanted that drawn in. So what I'm going to do is I'm going to ask it right here. How much should it cost to draw this utility into the plant? And so we got most of that there. Information looks pretty good. It is correct to that degree. Should I reach out to the fire sprinkler system crew to see if they want to dictate where this is going to go? Or should I reach out to the architect engineer on the permits and blueprints right now and tell him where we need to set this up? Because I already know where the water main into the property is located. So we want to be close to that to come out of the ground with our stub-out. What is your suggestion? And so because I'm distracted with all the things I've got to do today, I'm gonna let, I'm gonna let free estimates make my decisions for me cuz I'm way too consumed with all the other things that I've gotta get done in order to do, you know, to do all the things I gotta do. So I'm gonna, I'm just gonna allow it to think about it and then I'll come back to it and add to it if I, if I need to. Right. So it says to start with the fire sprinkler contractor. I can just do a reach out to him, then tell the engineer where to draw it, your idea about staying near the water main. Is correct. So recommend sequence, boom, boom, boom. Now I can hand this off to my, to my executive assistant, who's able to then handle most of that for me and get back to me and let me know, hey, this is where we got to be. So the stub up relative to the building wall, it needs to be within 12 to 24 inches inside the wall. So we got to literally cut all the way through the ground under the building and into the building and then come up in order for us to, to, to, to be in there. So again, this is the beauty of this, you know, of, of GPT and how if you give it the, the right rules and the right knowledge base, it will become invaluable completely. Anyway, we gotta go. It's 10 o'clock. I appreciate everyone being in here. I want to thank Catherine for helping, like, keep it, keeping the, the wheels on the ground this morning as we try to get through stuff. So And Laura has been a big help and everyone's been a big help. So I want to end with a prayer. Thank you, Heavenly Father, for the blessing of everyone that's involved. We ask that you continue to bless and guide us so that we may be able to do the will that you provide us with. And in your son's name, Jesus. Amen. Amen. The website is up and live if anyone wants to go look at it.

Fantastic.

Perfect.

ScottSalesSummit.com. Go check it out. We're going to be adding more stuff to it and getting more stuff turned on. As we get rolling.

Amazing. Sounds like a plan.

And I hope that you guys have a great trip.

Awesome. Well, thank you all.

You too.

Safe travels.

Okay, sounds good.

Bye. Bye, love.