Deal Room 051526.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 the deal room now and get into today's opportunity.

The whole team's here.

All right. That's cool. What time it is? 9:00, right?

9:02.

So yesterday had an amazing meeting. Who here remembers the house that I looked, talked about with the, it was the Airbnb in Scottsdale and we ran the, we ran the kitchen and bathroom through it and it came back at $250,000 remodel, right? You guys remember that? Owner and— owner and realtor came by yesterday and we had a conversation. And so we're gonna do some interesting things with this thing. What I'm actually leaning into, and I'm gonna see if the guy can do it— the owner, I don't think this is any big issue. The owner is a famous world— like, world champion disc golfer. Anybody know what disc golf is? What disc golf is? This guy is like He travels the world and does disc golfing all over the world.

And that, like, well, when you say that, most people are like, I don't even know what that is. Little—

when you become the world champion at something, it just goes to prove that you can, like, make money at it. But what he doesn't have is he doesn't have 7 streams of income. And if this guy literally breaks a finger, he's done with his career, right? And I'm not going to tell the guy that because then he's going to be like, oh my God, and that gets in his head. Prima donna from me. Not saying that Ricky's a prima donna, I'm just saying that he is an athlete true and true, and he's like, I don't need to sell the house, but I'd love to see what we can do. And I'm like, okay, cool, well then let's talk about that. And so the interesting parts about this house is where it's located. And so the idea came to me that what I'd like to do is document, video document this entire process like a reality TV show thing, because of the way that we could structure it and put it together would be very educational for people. I think it'd be entertaining on top of educational, and I think that it's a great opportunity for us to get into that. The house is located in North Scottsdale, and where it's positioned is between— like, it's, it's basically on the outskirts of all the development, and the biggest piece of that development is now a 1,200-acre spring training facility for the Arizona Cardinals football team. And so this house is literally going to be within 5 minutes of the newest development starting in 2028. One of the largest developments in the state coming up is going to be this NFL training facility. It's going to be the newest, biggest, fanciest, blah blah blah. And if we structure it right, we'll own the house 5 minutes away, right? And so at that point, like during spring training, we'll just rent it to a football player that doesn't want to drive more than 5 minutes to get to work and doesn't want to live in a hotel 10 minutes away.

So Airbnbs around there, amazing. We had several Airbnbs down by the other stadium and they were full all the time.

This will not be a stadium. This will be a training facility, a training camp. They're going to have spring training there. They'll probably have Pro Bowl stuff there, but it won't be an NFL season rental, right? They're still going to play over there in Glendale. Right. But this place is good. This isn't necessarily for the fans of the NFL. This is for the NFL players making $14, $15, $18 million contract. Right. And when they don't want to live— because again, they got to go to work. You're an NFL player. You got to get up and put your clothes on and go to work just like we did. Right. They may not encounter mentally challenged folks when they get there. Maybe they do. Wow. Um, but they're doing it at $14 million a year, right? They're doing it at $14 million a year. So for them to live 5 minutes away, totally perfect. Roman Rubio, creator, co-founder, and best friend of the King Land Shark, is that he is an agent for athletes and entertainers, and that's what he does. He goes and finds them houses to live in for that short period of time. And so the guy, the Frisbee guy, he knows this. He's like, my house is overpriced by $300,000 because I don't care if it sells in 2029. And I'm like, it's like the unbuyable, right? And I'm like, well, that's unbuyable. Well, not really. He's like, it's not unbuyable. We just got to make it make sense. Okay, what does that look like? And so, ready? Homework for the day. This is called a novation loan. How many people here know what a novation loan is? So, oh, amor, come to me. I can't describe it though.

I like, I have to learn about it because I had best as you can and then we'll fill in the blanks because the best way to like really learn something is to teach it.

So share which, and then we'll fill in the blanks and we'll put it through on ChatGPT too.

Okay.

So it's like in a, some type of an agreement between, I don't know, it's a transfer of like a new buyer takes over the contract and then the seller agrees, like you try to find another another buyer or something like that. And then the original buyer like transfers their rights and all of that. I don't know, it's a little mixture of like wholesaling and novation and all of that, but I don't know.

Well, there's a— no, what you're describing is like a novation deal. What I'm describing is a novation loan. And so if I can get the lovely Miss Catherine to help me pull up the deal, it's the Scottsdale Rental.

Isn't it like where one is like replaced with another borrower or something like that?

Luxury rental deal analysis right there.

You guys know we can't see what you're looking at, right?

Oh, hold on. Thank you. We appreciate it.

Blake, make your announcement.

Blake, what's the announcement?

So in 20 seconds, I'm going to post all of our links in the chat. If we could open them and share them in different groups and also either like, comment, and then just share them out to as many people as we can, that'll be fantastic. Just give me 15 seconds.

9, 8. Oh, God. 9, 6.

You have to start at 14.

5.

Okay. So here's that. You all see my screen now?

Yeah.

1. Okay. Yes.

Thank you. I'm waiting until he posts it.

Oh, goodness.

Where's, where's Katya?

She's here.

Okay.

She's right here. Because it, this only lets me see, look, it only lets me like have so many people.

Oh, okay.

For you to see.

I'm here. I swear.

And then we have Michael.

Don't swear. It's not nice. Goodness. Okay, all right.

So hello, what call am I on?

Not nice.

Did somebody put up the onomatopoeia right there? Did we get the onomatopoeia up in time? Did we get the onomatopoeia up in time?

Amor, you're a comedian.

I need, I need a wow sign.

Oh God, anyway, that was too much.

I just did that with the paper because when I added the—

Blake got you.

There you go. There we go, Blake.

That was That's the way to do it, brother. That's the way to do it. So, all right.

So, Blake, if you posted it, hasn't popped through yet. You might have posted it to somebody's AI.

No, I'm still working on it.

YouTube's being funky right there. And this guy, he's got it. Good. He can, he can play all day as long as you got that background up. I'm good. As a matter of fact, that's the free pack. I want that to be the screen.

Okay.

That's just awesome.

I want that on everybody. That's really fun.

We can do that. We're going to switch it over to that. So over on on the dictate side, let's do a little dictate with it. So after talking with the seller last night, they still want to stick to the asking price. And so what we came up with was possibly doing a novation loan that was suggested. Can you give me an understanding of a novation loan and what a novation structure looks like at like a 9th grade level? There we go. And so again, most people don't know this, but the New York Times is written at a 5th grade level.

Yes.

Right. And so the reason why they do that is because I learned later on that when you read often, you can oftentimes skip common words, like words like and, or, anything under a 5-letter word automatically registers. And you can test this theory by writing the word and switching 2 letters. You read it correctly, right? And people play those little mind games with you anyway.

Why when you go to proofread, they read it backwards.

Right. If you read it backwards, it's easier to find the mistakes, right? I unfortunately have this wicked handicap where when I read, if I have two pages in front of me, I read both at the same time. One eye reads one page, one eye reads the other. And so oftentimes I end up in a situation where I'm like, okay, too much information. And I have to, I have to just cut it to one page. But then when I read one page, I, one eye reads the line above it and one eye's reading the line below it. So I read two lines at a time. So again, it becomes a little bit tricky. So right here. We're going to go through this. So a novation is a new agreement replaces an old agreement, requires all parties to agree. There's a loan assumption that takes over and then a subject to. So these are the terms that you can use in those ways. So a true loan assumption novation style loan transfer is where we're going in and the seller has a current loan. Like in this case, it's $900,000 loan. And what we do is the asking price is $1,700,900, we take over the existing loan and then give the seller $890,000. Right. So, but I do, but I'm not quite sure if his current loan, the $900,000, how that's set up, but we will discover it. But for the purposes of this, the 9th grader needs to be able to explain this. And so what we talked about was possibly assuming the $900,000 loan, we come in and we tell the guy, here's $150,000 in cash. And then what we do is we take the seller note and carry that at 700%. $840,000. We're buying a $1.79 million home for $150,000. That's an Ovation loan, right? And so I've already got loans in place, everything in there. Now what, now what do you think I can do? I can take a construction loan because I have $840,000 in equity and go in there and do a complete remodel in that place. Knock it all out, clean it up, make it gorgeous, and boom, done deal. Increases the value., but he's locked in at 1.79. I go get a new appraisal at 2.5, get an LTV, 70% LTV, and pay everything off and be done. You see how that functions right there?

Did everybody track that? Is anybody who didn't track it?

I got Saraya.

I think I need 4th grade, 4th grade level. I understand, but I have a question. What's the motivation for the seller to do an Ovation loan?

Because he's asking, he's asking for a price that's above market value, current market value. Value has the price at $1.3 million. And so if he wants $1.79 million, he's got to, he's got to come up off almost $500,000. He's got to, he's got to say $500,000 ain't worth it.

So right now his house isn't worth it.

It's not worth $1.79 million.

But in the future, by renovating it and what we're going to do with it, we know what the future value is, which is why it matters.

Talk this way because every time you turn that way, you cut out.

Why it matters. Is because we, again, we know what's happening in the area and in the future, right? So it makes it work. The buy— the, what is it? The money is made on the buy, not the sell. And even if we're buying it for more than the current value, because of what's happening in the area with the stadium, we— the probable predictable future is where the values are going. And it's also based on the history in the area of what's actually already been happening for the last several decades.

Let's give them a show on that. I want to make sure we ask answers to Ray.

You had a question?

I don't have any questions. I just thought it was like ridiculously creative and I'm obviously not there yet for being able to think like that. So like when you explain it to me, I'm like, damn, that's so smooth. But it sounds like we also need to look around and see if there's anything else on the area.

Yes.

Now she's low hanging fruit, right? That's what that's called, right?

Anybody knowing that, knowing what's going to happen, we might as well pick up what we can.

Right.

Yes. Right. Totally.

There's that mama brain.

I love. Anybody else? Anybody else real quick? I wanna throw something at, at Land Shark real quick. Oh, all right. Ready? What I would like for you to do now is describe the last 10 years in Scottsdale. I want you to go scrap, scrape the data and show the amount of value the housing market has had going up or down year after year since 2002. Go ahead and get me that data and present it in a table that we can evaluate now. And so what I'm looking at is I want to determine, just like bank rates, when you look at a bank rate, you walk in the bank, it says, we'll give you 2.9%, not 2.99%, they put the 99 on it so it looks pretty, 2.99% for 6-month CD, APY 5 years. That means basically you're getting 0.025% annually on your money. And as it's a 5-year CD and, and so I don't know why anybody like, to me, it's like, you're just, I would, you could probably burn money and get better rates. So in that case, that's why I always try to encourage people to understand when you see those numbers in the bank, understand when you hear these numbers over here, you can see where, why real estate is where you should invest, put money to make money. Like people put money in the bank to save it. If you want to save money by real estate, don't put it in the bank. Go to the bank to get money off of the real estate that you have, right? And guess what? You can live on that borrowed money. I learned this because when I was in school for nursing, I had to live on the money I borrowed for student loans, right? Made my life way easier. So here we are in 2002, a typical Scottsdale home. Go straight to the bottom. I want to see the price that it went up to.

8—

858. So right there You can now see that we started at 200, we're at 800.

So, so you ever see that? So 2002, 242, and now 2026, 858.

So go down a little bit more. And so right here, keep going, keep going. We're going to do some fun stuff with it. Click on the— this looks great. And I'm a visual person, so I'm going to need you to put this into a graph. And I need both tables to be, to be put into an image that I can look at because I'm a visual learner. And so now it's going to take the data that it created and it's going to create another thing for me. And it's going to take a while because it's going to go into picture-making mode. So what I'd like to do now is explain a little bit deeper while this is thinking. Somebody got a property that they want to pull up, do something with? Katya or Serey?

I have that property in Corona, California, the one for the luxury toy. It loaded now that my computer's back to normal. So if we want to go back and review that, it's available.

So you're done abusing your computer now. We can, we can see what you, what you've been doing.

Yes, we're on good terms. No abuse.

Domestic violence against computers could be a thing.

Oh goodness.

Hold on. Don't give her the floor yet. She's gotta get ready. My pictures are ready. So go ahead and click on one. This is the value trend thing, right? And click on the other one. And then when it does this, I had her save those.

Save it there.

That's cool. Just save it there real quick. Go down here. I'm going to tell— no, hold on. Go to the microphone. I need these to be in the— I need these to be in the chat so I can see them. I downloaded them already, but I want to see them in the chat and then send it. And then now we can go look at them. All right. Where'd it go?

So this is a stupid question, but you guys know what sub-to financing is? So that's what— that's something that I learned a couple of weeks ago. So it sounds like that Novation loan is similar to sub-to financing.

Similar. Similar because in some ways it's set up in a way that it's similar because in a subject to, you're doing everything that an Ovation does, but you're not telling anybody. And so there's our—

So why won't you tell somebody?

So on a subject to, you're trying to avoid the bank doing what's called a note call, right? Because it triggers—

you don't want to have to pay the bank.

Yep.

It triggers a due-on-sale clause the minute you change owners of the, of the, of the property. Right. And so in a subject to, if you want to avoid that, here's what they do in subject to. Catherine's house is in a trust. Instead of Catherine selling me the house and then closing the trust, she steps down as beneficiary and hands me the beneficiary. I become beneficiary of that trust and she moves on down the road. She's no longer in charge of the trust, even though the trust is what owns the house. And so I gave her money to own the trust, not own the house. Does that make sense?

That makes sense, right?

And so in an Ovation, that— I don't do that. And an Ovation, I just take it over just like anything else. And in this situation, the guy has an LLC, and that's what I'm going to point toward, is in this LLC, we're going to be able to— we're going to be able to— or I'm going to be able to draw with it. I want to draw with it. Here it is.

Cool.

No, that's me. I can roll that. We would have to stop sharing.

No, Maybe not. What I want to show people is this right here. So you see this spike and then it goes like that. This is the dip. This is 2008 to 2011. There was a half— they lost half the value here, right? And then what you can do is if you take this line, it literally— if you just take the same angle right here and apply that angle right there, you see this angle right here and you apply the angle right there. Look where it lands, right? So that's a steady growth. That's a steady growth. And this hump doesn't happen in 2028. Right. Okay. One thing I can tell you is that it's not going to go from here back down like that.

You're right.

It's not going to drop from 8 to 4. It won't do that. No, it actually had its dip right here and it's going to continue and probably hit another crescendo.

Well, and because we know what's happening economically in Phoenix as well.

Right. And so like when you're looking at a real estate investment, if you're not looking at the holistic picture, this is where people get stuck is because they're not looking at the timelines of stuff. And ChatGPT makes that so easy now to do, right? I used to have to literally go like, you call me Sheldon a lot. Okay. Like this was what I would master manually in order to understand how to buy something. By the time I got to go buy it, it was gone because some other sucker was like, well, I'm going to just gamble on it. Because that's what it was, was gambling, right? People were gambling and going off gut feeling and not using graphs and charts, right? And so this is where Tommy was right here. Tommy graduated college right there, 2012, right? Started school 2010, right there. Living under a bridge over here in 2008, right?

Started buying in 2004, almost lost everything.

And then so I heard somebody last night at our event talk about getting, getting a free tuition to a double PhD, right? That's what we're doing here is we're We're giving everybody in here listening to this story a PhD that they didn't have to pay for.

We did it.

We paid for it.

Just to give you an example, because I live, I don't know, a couple, like, really close to where this house is. So I bought my house here and I bought it for around $400,000. And we're now sitting here and my house is worth over $1 million. So literally my house went up like 150%. In value.

And so when I talked to this guy yesterday, he bought, he bought the house right there in 2023, right there in this little— right there, right in the slot. Got it. And so now he's here, right? And so that's why he's like, he's like, I want— he, I think he's getting $400,000 in equity. He's trying to rake off $400,000 equity, right? Because he paid for, paid here for it, right? And so he's trying to add that quick value to it. He's only gone up probably $100,000.

7 or 8, right?

Not 4 months, right? But we can work with that. We can work with that. All right, Katya, you're up. I think you should be— I think, I think we need the hot seat picture behind you or the, or the Land Shark picture behind you. I'm thinking—

so how do I, how do I put it on? Do I have to put it on myself?

If you ask Blake nicely, he might send it to you.

Blake? Oh yeah, I think he already sent it to me. Wait, let me see.

Blake, I think we have to add it into the Zoom. Like, and then we can actually do it.

So yeah, we can chat about that. There is a way if you add it underneath the main, like, profile that you have it, then I can actually switch it in between people as well. So we can chat about that, uh, next week or sometimes.

Because we're gonna—

I just got to work myself, so go to work.

I gotta head out to work. Hey, no worries. I need you, I need you and Dima and I to get together. We've missed 2 appointments, so I want to make sure we nail this down. So "If we can figure out that plan, let me know. Have a great day at work, brother." He left already.

He's like, "I'm done listening." He's like, "I'm done." Just kidding. Okay, so just refreshing. This is the property that we're looking for, the luxury toy storage. It fits my investor profile perfectly. It has to, has to work.

It means it's got dirty dirt, right?

It looks dirty. Well, at least the surface. Anyways, so it says 40% are— oh, this is the last thing that you had me prompt. So now, okay. And then it says 40% is possible. It will not happen under normal full price bank debt, basic storage model.

Okay. With the site being 6.3 acres, we already know that stuff and where it's located there. And then I think when we looked at it, it was like, it's surrounded by industrial already too, right? So it could afford to become—

and this, do you see this highway right here? So all along this highway going this way is Glamis, Palm Springs, Joshua Tree, Big Bear. And then all along this highway there's a bunch of, like I said, RV repair slash sales, side-by-side repair slash sales, quads, dirt bikes. So this is the best area to have something like this.

So it's showing that there's an existing lease income. And so based on that test one right there, that it—

oh, sorry, sorry.

Right there, it's showing like even with this rents and stuff like that, like what did that come out to? It was, it was too short to support a 40% ROI. Then going over to the Toy Vault style, you're looking at a base, keep going down. So it's still not a big enough position for that.

Okay.

Bank debt cash on cash gives it to you where your purchase prices are. What was the purchase price originally?

I thought, I thought I had it. I should probably ask for that.

Well, sometimes, sometimes they keep it hidden. Go ahead and put the dictate to it and we'll get through that. What's the total purchase price that you found advertised?

And then while that's cooking after that, it said the test for is seller finance interest only debt. Oh, it says purchase. Oh, example. That's an example. And then ROI test 5, refinance exit value.

Right.

Real price.

So to hit that 40%, so it doesn't show, it says LoopNet property tax section has it at 77.1, and then the LoopNet lease says that it's got an 88 triple net, which makes that $1 million a year. Right. But that lease is done and gone. So the assumptions are based on a 7 cap implied value at 15. Keep going down. And it can't be a cap because the cap's gone with the lease gone, the cap's gone. So it becomes just vacant land. So I would do a CMA. Ready? Let's do a CMA of vacant property and vacant land in the area. The lease on this expires at the end of May. So we want to double-check and see what's going on. So pull comps on vacant land and let us know what the current per square foot price is on that, on those properties. Both list— tell it both listed and sold. You're good.

And I'm also looking at this little guy, this little guy, and then this little guy.

Go back to the other one. That one, that one's not bad either, but that one, they're all in Corona. Bunch of damn stuff on it already. Does that come with all that stuff on it?

I don't know. I can ask. Well, all these vans Right. I can ask.

Well, again, because if it's rented out, that's where, that's the good thing.

Look how they spelled huge. I thought this was so funny.

And then there's this little guy, that little guy. And if you're looking at, if you're looking for trouble, that's a 2-acre property with, with truck parking on it. So these are, these are viable situations. And so, but in your, so you can see right there, that one's been on the market how long?

A lot of 524 days.

Why do you think it'd been there that long?

Because there's something wrong with it or it's priced too high.

It's priced too high. Right. And so what can we do about a property priced too high?

Well, in my experience, if that it's been on the market for so long and that it's priced too high, then you can always get a little bit more creative with the terms and the timelines.

You can say, listen, do you own the property outright? If you do, can we do a creative get a creative tone on it where they become the bank and they get their full price, right? But you got to make it make sense too, because if you're, if you're just paying to own the, own the land and you're not making any profit off it, that's not a good thing.

That's dumb, right?

It's true.

Okay, tell you what to do. Don't lose money. Don't lose money. Warren Buffett's number one rule: don't lose money. Rule number two— no, rule number one.

It's a, it's a good rule.

He literally says that those are his rules.

All right. Scroll through this and let's take a look. So implied asset, implied assessed value is at about $25 per foot. Listed land comps show right here. This one's at $36,000. Next one. And these are listed.

Uh-huh.

This one's at $6,000. That one's at $9,000. The next one's at $35,000. So there's another one.

This is all on that road. And then this is also on Temescal Canyon Road.

Right.

We can dominate Temescal.

You could, you could. Just kidding. That one's $135. And then you got that one, that right there, um, that's rented. And you got this one leased and rented. So again, I think it's a good spot to do some truck parking for sure.

So, so truck park— truck parking for this one?

Well, unless you did a very— I think you would have to do almost like a toy barn.

Okay.

Build Toy Barns and then sell them for $350,000 apiece, something like that.

Toy Barn? What do you mean by Toy Barn?

Ready? Go to your GPT. Do some deep dive research into a, into a project development called the Toy Barn. There's one in Arizona. I believe there's another one in California and maybe one in Texas. The Toy Barn is on the interweb. So do a little diving there to see what it is and show us some pictures and describe it. So over here they use the airpark, and usually it's the people with airplanes. They land their airplanes, they go to the Toy Barn, they pick up their RV, and they head out. So, okay, like it's in the same— it's in the same spot, which is pretty cool.

And then for this, the vision would be truck parking.

Again, truck parking, I think, I think is pretty good there. I don't know what's on the other side of the— like, I see the highway right there, but you're not turning off of that onto the highway. That's like the end of the road right there, right? So this is like— there's no direct off of the highway access to that. It's basically you're at the end of the road, you pull in, you're done. So a contractor yard for sure. So a laydown yard, whatever, anything that— like, if there's a lot of building going on over there, that would be a pretty good spot for a rock yard. To put rock and stone and sell landscape stuff because people need dirt and landscaping and topsoil and stuff like that.

And this whole area— oh, sorry, this whole area is new development.

So people that want to landscape their property, you can turn that into a rock yard. Looks like they got tires there because it's dirty dirt. I'm gonna tell you that right now. I ain't even gotta— I ain't even gotta stand there and fart to tell you how dirty it is.

I'm a huge fan, huge fan. Okay, the Toy Barn.

So the Toy Barn, you can see if you click on the pictures, it'll show you some layouts that they got. So it's literally like, it's storage facility for your toys. Love it. Like fancy-ass toys.

That's so cool, right?

Oh my gosh, I would love one of these personally.

Me too.

So it's a bunch of little storage units and people purchase their individual storage unit, and this is like a luxury front desk.

Oh, they buy them.

It's like a condo. For your— wow, it's a condo setup.

And so this is like a luxury front desk where they can just come sit and have champagne and coffee and their toys get brought out.

Yeah.

And then you can add additional services like cleaning.

They can go and hang out in them, like, go look at the next one.

They're fully air-conditioned, like this one.

Like, they're, they're set up there. That's an air conditioning unit right now, right there.

Like the ultimate man caves.

But this is for a guy that owns fancy cars, so you can, you They'll put their RVs in there because it's tall enough to put an RV in. So they'll put their side-by-sides in there, all that stuff.

So perfect, because especially here in California, Southern California, nobody can have anything on their property. You can't have RVs, you can't have side-by-sides, you can't have quads, boats. So you always have to store everything.

And so this is, this is perfect for that. So I think this is what you build on that 6 acres. Okay, so Let's do this because it shows here, it shows right here. It says, pause it, stop it, whatever. It says right here that the Scottsdale units, 1,200 square feet Scottsdale unit goes for $925,000. Do you see that? So they've got, and you can call it whatever you want.

Can I ask why we would, and I could ask this later if this is a stupid question to Land Shark, I can ask Land Shark stupid questions, but what is the incentive between selling it right away versus renting it every month?

The price, because you're going to still rent them the dirt, right? You're not going to rent them— you're going to sell them the unit but rent them the dirt. They pay $925,000 for the building that they park their shit in, so that way anything that breaks in there is on them, right? If the AC quits, they got to fix it. If the water don't work, they got to fix it. If they got this, they got that, they got to fix it. It's not on me. The only thing on me is that building in the front where they get coffee, and then they're paying a fee for me to keep the gate locked all the time, okay?

And to be a part of the community, right? It's just like a mobile home park, community, rent the dirt.

Let's do how many units we can put in there. Let's figure that out. So based on, based on the model of Toy Barns, how many units like this could we fit on this current property we're analyzing?

60 to 90 Toy Barn style units is the sweet spot. On paper, the site could maybe support 100 plus, but the better luxury product is probably 70 to 80 premium units plus clubhouse, wash, detail staging, and outdoor overflow. Once What's FAR?

With a 50% FAR. Let's ask it. I think it's area, like an area measurement.

Okay.

Could you please confirm what FAR stands for?

Okay.

I'll ask him.

See, this is so perfect, Katia, that you're doing this. Like, this is what I want everybody to see with Land Shark. Like literally ask it all the questions.

Yes. And it gives it to you. Floor area ratio. Okay.

We all learned something.

So with the 50% floor area ratio, 50-foot max building height.

Good morning, John. Who? For the what? No, no, he's— I don't see him here, but his office is down there, that door right there. So that's funny. The guy he's looking for is the guy that was super rude to me yesterday.

Did you talk to Mike about it?

Not yet. Next thing. So in here, they've got the variety of places already in Arizona where the Toy Barn it's set up. So they got everything from 1,000 to 1,500 square foot units. They got a couple that are 3,000 square foot units, but they all have the high ceilings because they want to park their RVs in there, right? So keep going down here, some assumptions and stuff like that. Toy Barn style garage condo project. So shows that this is possible. So balanced luxury Toy Barn versus hybrid, meaning like, like where you got indoor and outdoor. So some of these places don't have that, like some of them are not indoor/outdoor. So thinking that this would be all the indoor style, 75 or 80 units, I think would be the best, right? And with the CIDs, who looked up the word CIDs?

It was on my homework list.

Let's look up that word real quick so people understand what it means.

Can you please define CIDs? Civics? How do you spell it? S-I-T-U-S. T?

Situs?

Some people call it situs, some people call it situs property, situs address.

Means the physical location or legal location of a property.

Right. So, and that physical location is a great— so when I say it's a great situs, I don't have to say it's a great property location.

Gotcha.

Great situs means it's in a good spot.

Right.

Okay. So, but do a, do a microphone on it real quick. Imagine the build-out for these about to be about $180 a square foot, figure out all the numbers on it, and then give us a fair market offer selling it to the new buyers and how we could structure it as like a condo association where there's a $25,000 a year due from every member. And then there's upsells for having concierge service. They can pay $50,000 a year for concierge service. Go ahead and put these numbers together and give us a breakdown of what that might look like. Ready to go. So, all right, where are we at? We got 10 minutes. Can we jump back over real quick? Because they, they just texted me on that luxury house and they're like, we don't think the terms are going to work. Okay. So which— oh, you were supposed to do the clickety-click thing there. Well, go ahead and go ahead and hit the buttons right there. Oops.

Nobody can see what you're doing.

I was just going to refresh the pictures right there. Just click and click and maybe it'll work. Maybe they won't.

It's decided not to.

It's all right. Anyway, move off of that. We want to go, I want to go over here to that North Carolina RV Resort Evaluation. That was the one that we ran the other day with Tina, right?

Tina, you still here? There she is.

All right. Tina's there too. Ready? Well, just go back up again a little bit so we can refresh.

Hello. I'm driving again.

Perfect.

I did email them by the way.

Oh, okay, good.

What was it? So there was a note in the description on the listing that said they, hey, S'morby's cool, but we're not doing sub-to. So they wanted to know if I was investing and their response as an individual, or if I was coming in with partners. And that particular location that I pulled up, or at least the one I inquired on, they said was in Arkansas. So I'm a little confused about maybe it was the one that I responded to because they did have two listings. They responded to the Arkansas location. So I can, uh, I've requested financials from them.

And then when they send the financials, I would say, I would say that depending on what the financials look like, you can respond with, I like QuickBooks, but do you have anything certified by a CPA?

So perfect.

Okay. Right. Because again, if they're not going to let you play a game, don't let them play one.

Right. Yep. So I will respond back to them today. Uh, right now I just said that I was looking at it as an individual. I wasn't looking at it with partners. I didn't know which one to suggest there.

Well, and again, like that's actually, it's a little bit of a discriminatory, it's considered a discriminatory question.

Oh, okay.

Well, think about it. Like, can I pick who my buyer is for my property? Right. I'm not allowed based on certain things. I'm not allowed. And one of them is individual person. Like they can't say one thing or I can't buy it or somebody else can't buy it. That's discrimination. So by saying an entity can't purchase it, but a solo person can, they're discriminating against a group of people.

Exactly.

So that's what that comes from.

And I may be coming in as an individual.

With an entity, just with an entity. Right. And they have, they have no say-so in that. That's the real key there is that you can say like, you'll only deal with me. Right. And so, and to be fair and to be honest and transparent, I'm buying it in an LLC, but you're only going to deal with me.

Yes.

Yes.

They did say, I did see on the listing, they would consider seller financing, but they would not do sub-to.

Right. And so, and so when people, Again, when, when sub-2s mentioned, what it is that I'm assuming the loan, right? And their concern is, and they have, they have no, like we had this call. Who did we talk to the other day? Who was it that I was on the phone with? Amor, are you in here?

She's here.

Where's Amor? I need her to back me up on this. We're gonna run your deals, Ray. Give me just one minute.

Oh no, Amor left.

Amor left. Amor and I were on the phone and we got what was called firefighter eggnog. Of firefighter economics, firefighter chief economics. That's what I'm going to call it. Because this guy wants to sell us his RV park and he's supplying me with numbers that him and his firefighter buddy have been doing for the last 5 years.

And I'm like, they're not good at math. Let's just say that.

No, they know how to put out fires, but they don't know how to math.

You're right. Right. She says, and the money spends all the same, but it may care where it comes from.

That's true too. That's true too. Well, honestly, I care where my money comes from. I'll be honest with you. I don't discriminate against buying people, but I do not like what I call dirty money. I don't like dirty money.

So, and maybe they're, maybe they're basing it off of how they want to negotiate if someone's coming in as a partner or if someone's coming in as an individual. So I will, I'll respond back to them on that and see what we can get for financials.

Because again, like, you don't know, you don't know what you're dealing with until you deal with it. And we ran this deal on one that was in Tennessee, and now they're saying there's one in Arkansas. I like— we didn't even look at anything in Arkansas.

No, no. So they had to— and they had two listings that came to me. Actually, it was Nika Robeck that sent those to me. She said, let's invest in one of these. And so she sent me two links. The one I pasted in, I was pretty sure was North Carolina. The second one that I pulled up The second one that I clicked on, maybe that was Arkansas and that may have been the one that I filled out their inquiry on. So I'll take a look and I'll go back into the North Carolina, click on that and fill out that inquiry too. But I thought he said that this one is Arkansas. Am I okay with Arkansas? Almost like, oh, we don't have a North Carolina. This is so, a bit confusing.

I told, I told people about this last week because I do a little bit of it too. I don't go back and delete my ads. I got 293 listings for sale. When somebody hits me off of an ad from something I ran before, I say it's no longer available, would you be interested in something else? What this guy's doing is a bait and switch. Look at this pretty place in North Carolina, that's right. Let me tell you how different North Carolina is from Arkansas. First of all, the smell, okay, Manning's Liquors change smell across the country. Okay. Manos Liquors just, they just taste differently when you get to Arkansas. So like, okay, I might have an ex-wife and ex-family members from Arkansas.

S-L-E-Y-C-Y-E-R. And then Saray has a property.

All right. Go ahead and pull that one up. I'm going to, I got to talk to Tavaris real quick.

Saray, are you ready to go with yours, honey?

Hey buddy. Good morning. I'm good. Are we having a group call or what do you want to do? Can you see it?

Can you see it and hear me?

Oh, so they're working on the data center deal. This is a whole interesting story to tell you all when it goes through. No, nothing's being shared right now. Oh, wait a sec. Yep. Now it is.

Oh, okay.

I see it.

It was giving me the green, but I wasn't sure if you guys could see it.

I had to switch it on mine.

Do you want to talk or are we waiting on Tommy?

We can— No, let's go ahead. We can go through this.

Okay. So this property is in Reedy Creek, which It used to be a Disney-controlled tax district. It isn't anymore because some people got pissed about how little taxes Disney was paying. So anyway, it's a little bit weird, and that changed a few years ago, but it is the district that handles like the infrastructure and the fire protection and all of that for actual Disney property. So you're talking about a really small area that doesn't come available very often. So that's why I was like, okay, this is really interesting. I know that it's heavy, so you tell me what you want to see.

I don't know the exact price. So is Disney in the area?

Oh, she's like, boom, right there. You can see her. Okay, cool. Super, like when you drive onto Disney property, like heading into the parks, you will literally, depending on where you're going, you will literally pass these beautiful fire stations with like huge Dalmatians and it's very Disney-esque. -esque looking, the cutest fire stations you've ever seen. They look like cartoons. They're really cute.

I love it.

Super cute. So I don't know the price of it as of now. They have the price hidden. Maybe we can find that out, but I didn't want to go any further until you guys had a chance to look at it. But it's 24 acres, as you can see. So tell me what you want to see and I will scroll.

Hey, keep going down. So location analysis, this is the story. You're sitting inside Disney Overflow Corridor near a resort cluster. Okay, this is all—

okay, so this is all the— this is all the basic stuff that, that she pulled from the web, and then I loaded the OM and had her look at that as well. You can see my Buy Box Scorecard right there, blah, and then I did not call the broker or whatever because I loaded the 08 the OM next, so you'll see that in just a second. And you can see— I don't know if you can see these pictures or not, but so here we go. Do you want to look at that part?

Okay, so purchase $12 million, closing $500,000, entitlement $2 million, so $14.5 million. Horizontal. Okay, LTVs. Keep going. Scenario 1: short-term rental resort.

Okay, okay, and what you want?

So it says 6.5 cap. Okay, so returns 90 to 140% ROI. Scenario 2, build-to-rent, which is a safe play. Okay, now here's what to know about the build-to-rent. What's happening with the government around these is that the government is coming in and forcing funds who have these build-to-rent facilities and neighborhoods to have to start being able to sell them. So that's a whole other thing that's happening, which is why BlackRock's going to be making a shift in a bunch of them because they're— they've been buying up all the single-family homes and running them. So just something to know. Rentals, so returns profit, still 45 to 65% ROI. Okay, assisted living, which is interesting.

Okay, I don't know that assisted living fits in that area, but that's right, it doesn't seem to make sense to me. Because it's definitely a tourist area.

It's like the lowest ROI. So it seems like the short-term— there's that comparison. Hold on, hold on, go down just a little bit to the side-by-side comparison right there. Okay, so short-term rentals.

So, okay, but I want to make sure that you see what I— what happened after I put people in. Okay, I know we're running out of— I know we're out of time.

Oh, we're good, we're good. This is really fascinating.

So So I thought this part was interesting because I don't really know what a platform opportunity actually— I don't know exactly what that means, but let me— and so here I put in the offering memorandum and this is where it gets really interesting to me because I was like, okay, this changes a lot. So you tell me what you want to see and I'll scroll because you're not reading out loud anymore. So I don't know where you are.

So I'm reading the actual concept. This is the pitch. And I realized I have another call I could be on, but I'm like, really, I'm like, I want to dig into this. This is really freaking cool.

This is really interesting.

Page 21. So wetland strategy, which is critical. You're not building on land. Okay, that's interesting.

I mentioned this to Tommy the other day, but we didn't really have a lot of time to talk about it.

Considered wetland. Okay, keep going. Insulation. What the OMAM quietly is telling you about the land.

Okay, so Katya, look, the land isn't clean.

It's designed for a specific buyer. Not for small, not for first time. So this is a resort developer, international. Okay, awesome. Location is elite, elite, no debate. Absolutely. And I actually have investors who had significant experience in this that we could bring in and partner with on this. Okay, this is fabulous. So job growth, tourism, health, retail, so supports all of that. So deal reality check, what amateurs see, what the pros see. This is highly complex entitlement and engineering play. Okay.

I told you it was heavy when I texted you about it.

Zoning risk, construction complexity. Keep going. Actually is financially not a land flip. Okay. Entitlement, JV with an operator, which I'm thinking is that full development. Honest take, no fluff. Okay. Swing fences, massive upside. Why I'm cautious. Okay. Final Land Shark score, location 10 out of 10, upside 10 out of 10, complexity. This is freaking awesome. Wow. What you recommended to do. So Land Shark readiness report. Okay. Keep going. I wanna talk to you and Tommy about this. I need to get onto another meeting, but let's circle back because I think we have the team. That we could put together to actually make this happen, and especially for what and where it is. It's a really big deal.

It's really big, but it was so much that I was like, okay, I can't wrap my head around a lot of this, so I've got to go and talk to Catherine and Tommy about what in the world we should do on this because it's way not simple.

But are you, are you available at 2 o'clock our time, which would be 5 o'clock your time?

I can be, sure. Okay. I can move some things around.

Okay. Let's set up a call and do that and I'll get you on the calendar. I'm late for this other call, so let me get that set up and then we're going to dive into this because this is really freaking cool.

Okay.

Especially for what this is.

Cool.

I love it.

Thank you so much. That's awesome. Good job. Okay. With that, I hope you all have an absolutely extraordinary weekend and look forward to having you all come back Monday. And so I'm sending— Lord God, I just thank you for the extraordinary conversations that we have here and the extraordinary people that we get to work with. I pray that you would continue to guide all our thoughts, words, and actions and protect everybody. And have an extraordinary weekend. Love it. Thank you, everyone. Bye-bye. Thank you.