Deal Room 052526

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.

Can you hear me now?

I can hear you.

I can hear you.

Katya somehow logged in as me.

I don't know how. Do you want me to exit and come back in?

Oh, we can change the name tag. That's easy.

Okay.

It's just you're still on her Zoom. You logged into her Zoom from your computer at some point.

Oh, okay. That was probably it.

That's where it's coming from.

I do want to talk to both you and Blake about doing some ad management on Marketplace under Catherine's Facebook account. So in Facebook, there's groups, like local groups and stuff. And so what I want to do is I want to create a pattern of going out.

Look at Blake over there running.

Little exercise. You got, you got a headband on, buddy? You got your shorty shorts? You got your, you got your, you got that run? Are you on a treadmill?

No, I'm outside. It's not showing. I'm just outside by the road, but no headband on, straight hair, and then no short shorts. I'm not getting there yet.

It's a blessing for everybody around you, I promise.

Oh, it for sure is.

Just pull your socks up to your knees though. Anyway, the Facebook Marketplace allows you to run an ad on there and then post it to Facebook groups, 20 of them. So it's a little bit of guerrilla marketing, like grassroots, if you will.

What in the hell is that? It looks like a homeless man just came out from under the bushes.

Anyway, place is definitely weird. The idea is that we run ads on Facebook Marketplace. We have Catherine Bell's account joining groups that we can post to marketplace ads. And then we go on real estate, like we find We run these deals in here, we find something valuable, and then we just do a, hey, we've got a piece of property, come find out about it. It's free, doesn't cost anything. And we're able to post 20 groups. If we each did one, me, you, Kathy, and Blake did one, that's 60. It would be 60 ads out in a day and we could put like Land Shark Mastermind.com in there or 7StreamsL Income.com in there. It's actually my7streams.org.

Make sure I get that out right.

But again, we can do this as a form of marketing and advertising to get more activity back over to Catherine's account. So I would like to set up a meeting with you guys on that. The other thing is we had to let Dima go. And so we've got, uh, we've got to replace him or find somebody that can handle GoHighLevel for us a little bit better. So the goal would be to handle the things, handle some things until we get that replacement in.

So hopefully that would be Working our ass off on trying to get the big screen to work. Let's see if it works. See if we can get it done. Hey, there it went. And—

Do we have an example of what the Facebook Marketplace ad looks like? Just because I'm curious on how we want to do it.

I'm going to, I'm going to get one pulled up here as soon as I can get ours on the screen.

I think I can get on my Facebook Marketplace and you can probably do it from here.

This is what I'm going to do, right?

Correct. Where's my share button?

That's why I think demos are so important is because you can get very clear understanding of what we're trying to accomplish. So over here in Facebook, you can see there's a marketplace up there, or you got see more. No, and it's not see more, but it's Catherine. You got marketplace right there. So either one of those spots, here's marketplace. So here in marketplace, you can run free ads all day. So as long as you're selling something, right? So what I like to do is I will go in and start selling like here Catherine's in her past, she sold some furniture. This is all great and good, but excuse me, the goal would be to run a new ad. And so you can do homes for sale or for rent. And so this is where you could literally put like, rent the Bell Hotel for 3 days type of ad, or you could do, you could do like the gas station you've seen and found offline, create an ad here for it under that.

Right.

And so when you create the ad, to me, it's just basic information. You don't want a lot. You're not trying to sell sell it through the ad. You're trying to create the opportunity to pull people in. Videos work pretty good and stuff like that. So are you able to see if you can get on my Facebook from the computer right there?

I want to see if I can show them mine because yours doesn't have— we're going to need to build yours up.

And since there's really not anybody in here, anybody opposed to me demoing this today?

No, go for it.

All right.

I just had one question sometime today about the Palisades. That's it.

Yes. What is your question?

Oh, I received an email with several links and several pieces of information, and I remember saying that you have to pay the city for meetings and documents and something like that. So I just wanted clarification on how we should continue forward and that's it.

Well, we would need to discover what that's going to cost, right? So if there's a way to discover that cost, continue the conversations until it costs us money. Right.

Okay. Sounds good. Because they— she wrote back an email and she said it was so great to speak with us. There are a couple items we need to discuss with the Department of Building and Safety, so we will circle back when we have more information. City Planning Department website provides resources, and then she sent the link. And then the Department of Building and Safety website also provides information regarding permitting and plan check review. She also sent the link. And then the mayor's emergency executive order allows you to rebuild like for like with up to a 10% increase in building footprint and height, and that was confirmed. And then she gave a link to the executive order and the EO 1 implementation guidelines, and then also zoning definitions, mobile homes, and then the California Department of Housing and Community Development, and then also contact information of the planning director for Council District 11. So I have to go through all of this and look into it and then take the next steps. But as of now, I just wanted that green light that that's okay to do.

Yes.

Okay. Just word vomited.

That's good. That's good.

Okay.

So do that. See what they— see what they allow us to pull in on. Okay.

Sounds good.

What we can do from there.

So I'm trying to get logged in on this device and it's not cooperating very well.

We have the internet here, right?

Yep.

I'm on it.

Mother goodness. Bear with me. Bear with me. Someone talk, please. Dead air is just horrible for radio.

Okay.

Well, I'm on this.

We're just going to have to walk through it. I got to be on that screen too. Not sending me anything.

Well, I am super excited. I'm taking all the transcripts from the Zooms and creating super cool action plans, quotes to remember, speakers to remember, and also turning that into documents that we can give to the attendees, and then summarized carousels to post on all the social medias. So I'm excited to get that finalized today and then sent out.

Awesome.

So I love that. And what I was thinking is that inside of like all the amazing classes that we had last week, that we could do like Maybe create like social media posts and newsletters of like, hey, if you missed this and like putting together, like, here's like the top 3, what's the word, takeaways for this speaker and then thank them, tag them, put all that.

Sounds perfect. Okay.

Because I think again, it's like taking the same content, but repurposing it.

Perfect.

I think that would be awesome.

What the hell?

And then we'll be able to use the— if you log into Zoom from your phone, you can share your screen from your phone. You can screen share what's on your phone. I can show you how to do that.

I'm almost there, so I don't want to be rushed.

I'm just continuing to talk.

So you guys happy now that your final exams are done?

Yes, I'm stoked, ready for the summer, although I have several summer classes and then I will be gone for the month of July. Nice.

And where are you going?

I'm going to Africa.

So fun. Where in Africa?

So last year I got introduced— well, I introduced myself to a bunch of entrepreneurs and a lot of opportunities came from that. So I met with one executive business coach and her mentor does lion walking, lion tracking expeditions through South Africa. And he ties it into fear, like how a lot of people are scared of putting themselves out there, scared of opportunities, scared of all the what-ifs. So he ties it into the mental perseverance and courage because it's very scary to be walking next to lions. Anyways, I was like, I really want to do this. And he's like, okay, well, this is for like 7, 8, 9-figure entrepreneurs. This is an expensive trip. And I'm like, okay, well, how do I make it work? I would love to add value. I would love to this, I would love to that. And so we ended up figuring it out. So I'm able to go out there on a scholarship opportunity.

Nice.

And then my dad's meeting me in Tanzania.

So that's awesome.

It'll be cool.

All right.

So here's an example right here. This is, this is my Facebook Marketplace ad. And you can see right here, somebody ran an ad for an auction. They put the tractor and then they put the price and all that. And like it was, it's an auction they had about a week ago, March 28th, it says. So it's still up though. People are getting traction to it. So Here's an example of a lot. So they have video showing like water and they're explaining how much it costs. See how simple the terminology is right there. So that's like a seller finance deal. So they've got a couple pictures right here. Actually, it's just a picture and video done. They get a lot of messages, I'll bet. So, and that's the idea is we get the message and then we divert them from the message over to another, to a website. We put them in the top of funnel.

Okay.

But it's free. It's free to post it. I'll show you on my account what that looks like. I do a lot of selling and this is just a hack. This is for people to understand what we're doing. I have property right now down in Pima, for example, it's gotten 67 clicks, 34 clicks. It's listed on Marketplace and at least one group. So I can click the share button. When I click the share button, it gives me the option to go to groups. When I go to groups, I can see a long list of groups. It'll just refresh for days because I'm a member of thousands of groups. So I'm here. So like land for sale group, I can click that and just post it and it'll post to that group. Every once in a while, I got to come in and click the renew listing button and it just throws it back out. It's pulled up to the front. This is a lot that I run up in North Phoenix. Got a couple of ads for that. Those two right there. This is commercial property that I've listed out in Wenden. So I'm going to renew these listings again, do both of them again with the truck parking. So Bait and Tackle Shop. I want to do that because we're definitely doing that one again. I'm going to share and again, share to groups. When I run the, when I run the ad in a, when I'm just doing a regular sale and I want to run a new document, new ad, I'm just going to get pictures and getting a video made, coming back and putting it in there, running the ad. You can see here, like the ad is very simple, but when I run the ad, it goes out to all these groups. See how I have mine listed and it says list in more places. These are all the groups that I've got it in right now. So when I relisted it, went out, I can edit the listing a little bit. I had, I had ChatGPT write it, so, but I could change all of that over. It's a bait and tackle shop, horrible pictures, but if I wanted better results, I'd get better pictures. And what I end up with is, again, I had 103 clicks. I didn't, I don't think I've had very many. I've had what, 3 messages on it? 4? So it didn't, it didn't get a lot of activity, but 4. Here's what I look at. 103 clicks, 4 messages. That's what— that's a 4% click-through rate. So I—

that's the metrics.

The way you look at the metrics on that is you figure out how many sent a message and how many seen it right there. And so then you're able to know if you're able— if you're getting good traction or if you need to change your vocabulary, like put less info, you'll figure out what you want to do for sure. And get down here and I'll show you one of my more popular ads so that you got a better— like we got our Cash flowing RV park there out in Wyndham. So here we go. Here's the septic tank ad. So we knew it. I'm going to show it to you. I'll do 85 clicks on listing. Went to the listing right here. You can see I got a, probably a long list of comments here. And so you can see that there, these are just the messages. I'm sorry, not the comments. These are the messages. I think there's comments, no comments here, but I can list more places. And oh, I like the, I like when they give me this option. See this list of more places like this. All I got to do now is just click on, and I'm going to do, I'm going to do a mobile home. Park Investor Group, because even though they're out of state, they still need septic tanks and they probably don't know where to find them, but I do. And this is just for septic tanks. We can do this with real estate.

Totally.

So I'll go drop a few of these on here and I want to do them from Catherine's account because Catherine already has 6,000 people following her on Facebook. So it'll be a little bit easier for her to have that opportunity. So, and we'll do the renew listing thing again. And basically this will just sit here and blow up. Go to my messages right here. I go to marketplace and you can see all of my ads. They just click through like crazy and this is just a way to generate leads.

Come on. Oh Jesus.

I don't know how to drive it. You guys get the idea, right?

Participation here.

We're just going to set it off today.

So are you guys clear what Tommy is looking for inside of managing my Facebook account or feel, do you need it like listed out a little clearer about what exactly is being asked?

I understand the basis of it. I'd love to, I took some notes and I'd love to go to Yoda and see the different ways that we can approach it. But I think, I think I'm good to start exploring.

And just like to give a basic step-by-step, I want to use Catherine's account to go join more targeted groups like Scottsdale groups, real estate groups, and other cities. Okay. And then I want to, when you, when you're going into these transcripts and pulling info, if we ran a deal, let's pull some, pull some info about the property and pop it up on Facebook Marketplace and say, we have info about this property, reach out. We're not selling yet.

Right.

We're using it as lead generation, but we're using market place to sell it.

Okay, sounds good. And there's no way that we can get in trouble by, like, for example, if we found a listing that's for sale and then we put it on Facebook Marketplace on our end, like, hey, we have information about this, that's all good and allowed. Like, it won't cause any red flags for the Facebook?

What we're doing, we're not selling it. When we make the ad, we're not going to make the ad and list the— put the listing price.

Okay.

Let's say contact us about this property.

Gotcha.

We can partner up with them because a lot of the properties that we're going to put up and to get more specific, I would only put up the stuff that we run through Deal Hunter and be like, hey, we ran this through Deal Hunter. It's a really great deal. Go to landchartmastermind.com to learn more about it or watch this video. You can, if you have a TikTok account, you can go to the day the clip comes up and take that clip and bring it in and use that as the video.

Okay. Sounds good. Understood.

It was my hair clip.

Did it break?

No, it just bounced.

Thank you. So basically what that looks like is then when those messages come in to Catherine's Facebook Marketplace account, they're just getting a link to the website. It's the top of funnel trigger, right? And so anytime somebody contacts us about the property that's on there, because we don't want to, we don't need to get very fancy with it. Like I literally use it as what I call like for phishing. I ran an ad for commercial property. I didn't tell them what property because I didn't have it under contract.

I just said I had commercial property.

And I used it as a tool to get their attention. Where I learned to do this from was those septic tanks, because I don't make them. I just sell them, right? And so off of those septic tank ads, I make, I make between 40 and 60% markup. And then it also leads to me getting the work and getting the job as well, because the, whatchamacallit, is the contractors are easy to find. And so I just go after the contractors, find the contractors. Put them with the job and I take a fee off of getting them the job. So you can't sell a service on Facebook Marketplace, but you can sell a product that leads to a service. And that's the, that's the mindset that I'm trying to create. But the actual step-by-step is we just, again, since you're already going in there finding stuff on Zoom, let's create a very simple— I found that what works the best are the very simple words, not the long GPT ones. That one doesn't seem to get very much, but if it's like 5 words and 3 pictures and a video, people click on it like crazy.

Okay.

Noted.

And then Kevin, can you pull up Titan 23 GPT now and share your screen on that? Well, I want to walk through this one. We, I don't know if anybody else remembers, but we were running a deal called Cortez. It was a brand new luxury house development though. And we were going to raise funds on it for a guy to build the house there. He wanted us to raise him $1 million and Then we're going to build a, like a $5 or $7 million mansion on it. And so we were trying to work the deal with the guy, but he never got back to us with all the due diligence stuff we needed from him. And the deal slipped through. Well, last week during the podcast, during the webinar, virtual summit, one of the people on stage, Deanna, actually bought that guy's deal ahead of him and then told us about it and needs us to raise the capital.

So like we didn't lose the deal.

We just lost, we just switched buyers.

We switched and it was crazy how small world, they're both Canadian.

You're totally not enthused with this at all.

No, I'm, I'm looking for, did you already like run Cortez on here? Is it this one?

Got it.

Okay.

Like I went through, so here's another thing to learn over here. You can actually rename these and this makes a huge difference so that when you're Like we'll just call this Cortez. So, and then like I renamed a few of them because we were going through them over the weekend just to make life easier. So anyways, when that happens, it just makes a big difference.

Right.

So if you go up to the top here, you'll see what I did was I put the documents in and explained it.

Are you up at the show?

I'm at the top.

Oh, well, I put the documents in below this. So, all right. So what can you walk through these real quick?

I got a couple of things going on right now.

So this is the projects. We have the operating agreement, the debt, the subscription agreements, the overall budget, and then the PPM. So when it goes through, but it's going through Titan 23 fund, which means that on the back end of this, it's got my PPM and all the things and the criteria. So now it's going through helping analyze through the filter of my fund Titan 23. So current deal, the purchase price, $1.9 million. Estimated ARV. What's ARV? Come on. What's ARV? After repair value.

After repair value.

There we go. Construction budget. And then the exit timeline, 12 to 15 months. So it's build and sell a luxury spec residence. What that means, Katia, a spec residence?

No, I'm not sure what that is.

So they can ask Deal Hunter, but start with what is the full word?

What is the full word?

Spec is short for specifications, speculation.

So spec is speculation. Okay. Speculation is that I'm going to build this house and I speculate that I'm going to sell it. Gonna guess. So I'm guessing I'm going to sell, I speculate I'm going to sell it.

So the hard and soft construction costs $2.5 million. So the capital raised $1.1 million, minimum investments $100,000, accredited investors only. It's 506 and then we're doing a 50/50 split with the investors.

Well, it analyzed her, what it did was it analyzed her documents and said that based on what we're looking at, they didn't want us to structure it inside of Title 23 as a customizable multi-deal allocation. So they wanted us to structure it just as a single asset syndication. Who knows what a syndication is?

I don't know what it is, but I have like a list of words that I write down that I need to look up for later.

So a syndication is a group that are all on the same platform to get together and do things, right?

So that's the syndication. It's a group of people just getting together to do a deal. So then—

are you guys sharing your screen or—

I'm sharing doodles.

Sorry.

No, that's okay. I thought it was on my end.

Oh, I thought it was shared because on here it shows it's shared, but that doesn't mean anything. Okay, there you go. Are you seeing that now?

Yes.

Thank you. Okay. Thank you for saying something.

Okay.

The recommended capital stack.

So capital stack just means like the loan, the equity, what the sponsor's bringing in, the total cost of the project. It's how the money is being brought in. And then how to structure the investor equity. So there's two strong options, and I love that it gives us options. Those straight equity membership units. So Sponsor A, Sponsor B, and then option two, preferred equity structure. So we could give a preferred return. So preferred means that no matter what, they're going to get 12% ROI on their money. Remember those deal cards that we were playing with when we played Cash Flow? It said, what's the ROI? That's where this comes in. And then they get the return of capital and then we also split the profits as well. So again, that's the unknown because until we sell, until we've gone through the full construction build and have, excuse me, all the final costs of that, and then the other side of the number is what we actually sell it for minus all the fees and costs and everything, that's when we know what the final profit is. But we won't know until the closing table. So, but we can speculate, right? So your current documents already support the securities compliance, which is super important, all about accredited investors, all that, about the risks, the liquidity. There's no guarantee on returns, and our past performance doesn't predict the future. Subscription agreement, again, all the things that— all the legalese. And then the operating agreement, again, more legalese. Biggest legal compliance issue that we have to choose is a 506 or 506. So 506 means for non-accredited investors. 506 is for accredited investors only. So we have to choose one way or the other. And then 506 allows us to publicly market it, talk about it on social media, podcasts, all the things. 506 means you have to have a preexisting relationship with us for us to even talk to you about it. So the profit split is vague. Again, we're working working all that out. And then compensation disclosure needs to be expanded more. And then of course we have our attorney review the whole thing, which is super important. And then best institutional version for this deal. So it talks about, okay, so we could do Investor A and then the Class A is for investors. Class B is for sponsors. And then what would, what would I improve immediately? So the actual waterfall of how it's being done. Add deals or add detailed capitalization table, build institutional use to proceeds table, add construction timeline, which we're actually getting that. That's really important to make sure that we stay on time and on budget. And then adding the sponsors' bios, we're doing full deep dive background checks on everybody involved. And then Add exact distribution mechanics. So the most important point is this is not really a fund. It's better positioned as a single asset private real estate syndication. So again, looking at all the different ways that we can do this, and we're having a conversation with her. This is a—

we're—

so here's a long plan is that we're planning on doing multiple of these every single year because the returns on them are amazing. We're projecting out 35 to 50% ROI on these. So 12 to 15 months to have that kind of return is pretty freaking amazing. This is right up there for me with triple net lease commercial medical office space. So again, this is where we do the numbers, tell us what to do. And it's right in my backyard. So I'm really excited about that. We'll be able to have eyes on it all the time. So it just goes through the economics and then the estimated total project cost. So land, construction, financing. Legal costs, sponsor fees, estimated total costs, and then the exit of the sale. So we're estimating $6.2 million, which is very common in this area for that size of house. And so you take out the costs and the profit we're expecting to be $1.2 million. So then you've got to deal with the realtor's fees, the closing costs, unexpected overruns, taxes, financing. So these are all the fun things we get to go through. And so the likely distributable profit range is between $900,000 to $1.2 million. So if we do a profit split, there'll be the sponsor side, 50%, the equity investor side, 50%. So then if you're splitting $1.2 million, $600,000 is the profit split to the investors. So how we participate. So if we raise $650,000, then profit participation, the capital return, the profit. So now subtract Titan compensation because Titan needs to be paid for all the legal fees and all the things that it costs to do all of this. Which is normal. This is all part of the process, putting the band together. So then total compensation investor. So that leaves after that, so just over a million for the investors. So active investor participation. So for $650,000, the investor would actually receive one, just over a million dollars, like with their initial $650,000 back plus the profits. And then, so the equity multiple is 1.6 on their money. So this would be a 66 profit on their capital in 12 to 15 months, which is really freaking amazing. So important reality check that we need to make sure there's no major construction overruns, no market slowdown, no financing extensions, like all of this. So these are all the things that we're managing all the way along the way. Where are we at? So estimated net IRR goes through all the same things, just running it in a different way. So critical disclosure requirement This is hypothetical, is projected, not guaranteed, forward-looking, dependent on assumptions, and subject to material uncertainty. So again, there, there's— we have history of doing all of this. So it's based on all of that. We tell investors to do their own due diligence. And what would the due diligence on is you could go on to Zillow and do price per square foot, what houses are actually selling for, and because we've got free estimates, you could literally like, I'm sure, come up with a whole analysis on what it would cost to actually build this. And so you can get cross-comparisons that way. These are— I love these. This is just, this is a luxury version of what we were doing when we were doing the Flipping Females. So the Flipping Females, we were doing it one investor per house. So they were much smaller projects. And these are bigger projects, which is why we need to do it as a fund or syndication, but because we're going to be doing multiple of these. And there's more commas involved. So same amount of time, more commas. Do the numbers, tell you what to do. So we're really excited about these projects. But again, it's the whole get the no with a happy heart because God's got a bigger yes. The original person that was going to do this wasn't able to get all their stuff done on time. Somebody else came in that I knew ended up buying it and coming to us and wanting to raise capital. So just— it's interesting what a small world this is. So we want to make sure that we're always leaving it as a win-win because you never know. Who you're going to run into and how it all comes together. So did you have any questions on that? Is that making sense what we're, what we're putting together?

I think it's so exciting in the breakdown of where everything goes. It was very helpful to me.

There's a—

you can see there's a lot of details to go through all of this, which is why I love using AI, because it catches all the minute details that we need in order to be responsible inside of underwriting and then ultimately manage the entire project all the way through. It's a lot of details, and if you've never done it before, could be a lot of surprises. So we want to take out all the surprises and have everything laid out so you're like, okay, these are all the things. Do you guys have any deals that you want to run?

I have a— I mentioned it a little bit ago, but it's a— wouldn't even know what it is. It's like a series of cabins by my house near Big Bear.

Oh cool.

And it says super motivated seller, and there's 12 cabins, and I've always had this— well, obviously it's not going to happen anytime soon, but I've always had this like lifelong dream that I want to one day establish a really awesome retreat where high-level individuals who want growth and connection can go in one space, and they— there can be yoga, education, manifestation, workouts, boat stations, quads, horses, all this stuff. So it stood out to me. So I can share about that if you guys are interested.

Let's do that, looks fun. Again, the more practice that we get with all of these, the better that we get at it.

Okay, and I also received all the due diligence for that already, and I already put it into ChatGPT.

Nice.

But give me one moment, let me find it.

Okay, Laura, I'm gonna have you run this. You can run it from yours. I I'll be right back.

All right. Good morning, Katja.

You're going to, I'm going to go over to Catherine and run from there.

Good morning. Okay.

Too many, too many audios on.

All right.

Are you sharing your thing, Katja?

Give me one moment to find it and put it on the Deal Hunter and then I will share it.

Okay, great. Meanwhile, what else is going on? What's going on, Blake? What summer plans do you have?

Not a whole bunch. I'm just trying to work a lot, just in general, just trying to learn and adapt. I have more free time, so. I've been trying to save up to study abroad, so that's the big thing I'm working and striving towards for right now. But I'll be able to spend 3.5 weeks in Hawaii starting the tail end of July to the mid of August. So I'm just looking forward to that. So just trying to find—

Where do you wanna study abroad?

I wanna go to Europe. I'm looking right now, it'll be either between Germany or France. So I just wanna be somewhere centralized so I can travel around almost every weekend. I wanna try to visit a whole bunch of different countries.

Very good.

Good.

How long will you be over there, do you think?

I will be over there— it depends on where I go, but I will be there for 4 months. So either January to April or February to May.

Right. And that's— you can do that through school?

Correct. That'll be through school.

Nice.

They'll be able to get my schooling done while I'm over there, so it's the best of both worlds.

That's awesome. I look to do that. Let me know when you're ready, Katya. I look to do that like when I was in college, and I was going to get like 10 units for it, so I just went through, and then I moved there for a year and Yeah, no, that makes more sense, especially if it's only 10 units. Right.

It was going to be useless for a 10-unit.

Not worth all the money. Plus you still got the experience later on.

Ooh, look at that.

Can everybody see my screen?

Yes.

Okay.

That's beautiful.

Didn't they do a movie, a TV show about Twin Peaks?

So also, several podcasts ago, you guys were talking about wedding venues, and I've never thought about, like, I've never explored any business associated with wedding venues or any property. So I don't know how profitable it is or consistent it is. But this could also be— it's a gorgeous location. It could also be a great place to host weddings because there's different cabins. You can invite your family to come stay, and then you can remodel it in a way that's very beautiful and luxury, and it can be like a mountain retreat, right?

So they have family reunions. That would be another amazing use of it.

So the cabins, there's 12 cabins that are very— very fairly new, and they have like— they're solid. And then there's 2, and then there's this— look how cool that is. Wouldn't that be such a cute place to have like a big dinner or something like that?

I could see like women's yoga retreats, masterminds, like company masterminds. There's so many different uses for sure.

Super exciting. And then I think there's one or two cabins that are bad, that need to be redone.

Okay, let's see.

They— you can see in the past they have used it for different weddings.

Oh wow, Vogue.

Wow.

And it's right next to me. Well, not right next to me, but like an hour and a half. And then Lake Arrowhead is very well known. And I don't know if you guys have heard of Big Bear, but Big Bear is up here and it's the number one place everybody near here goes for skiing, snowboarding, and then in the summers mountain biking, boating, all that stuff.

And then did you guys run it through?

So right here I have— give me one moment, sorry, I was not prepped fully Don't worry, just ask.

We're good.

So I have this, but also let me, let me find the where they sent me the information. Give me one moment.

Yes.

So here they said they sent me the Dropbox that has all the information and I'll put all that. I thought I already did, but I guess I didn't. But I need to put each one one by one into ChatGPT. So then we have that and then this is what it says so far. This is still a yes to pursue, but only as a structured value-add acquisition, and my investor profile is value-add. So I would not offer $2.6 million cash conventional. I would submit something like option A, seller finance purchase, or option B, a lease option. So they suggested running it as a private mountain retreat campus, not just 13 random— what's STR? Short-term rental. Okay, so this could be a whole property buyout with photo video production, micro wedding, wellness retreats. So everything that we touched on today. So then it gives me the next steps and I already went through those next steps and then I'll have to take everything that's in Dropbox and continue on over. So they have the cabin layouts and there's 13 of them. Also tell me, I don't know how in detail you guys want me to go, but so there's different cabins.

I don't know that I don't— that I want to run the deal. Seeing the layouts and stuff is all super fun and cool, but I wanna look at the numbers on this. Okay.

Would you guys want to dictate or—

when you said run this deal, what did it do?

That's it. Gave me just a snapshot, snapshot of what it is.

And then are there any— okay. So price down lease. Did they give you any, like a spreadsheet on any of the income? Let me see in that Dropbox layout.

There we go.

Yeah, I need the P&L, so go ahead and upload that. Okay, let's go back to the Dropbox and see if—

and then it has a—

what's a P&L? Open that up, see what that is. We need that. Okay, treat log. What's the log? Add that. We want that. Okay, then site— she's got a cool— okay, keep going. What's the Perch draft P&L? But it's from 2023. It's like freaking 3 years ago. Anyway, download it. That's fine.

What is it?

It's a retreat center that she found. 2025. That's what we want.

That's—

there we go. So download that.

It says negative.

That's fine. Download it. That gives us the accurate numbers because if it's negative, we need to know.

And then profit loss, December 2024.

That's fine because I want to see, is it declining? Is it increasing? Like what's happening?

Okay.

And then there's 2021 and 2022. Do you want those as well?

Sure. Just download over to the right. You can just hit download.

Okay.

And then the unknown. I don't know what this is.

I don't know.

And then there's this one, 2025 to present.

Download that. Okay, so now upload all those financials into Deal Hunter. You can, you can grab them all at the same time.

Really?

If you hit, click that and then hit, I think it's Shift and then grab the bottom and then it grabs them all together. It's fine. Just keep doing it the way you're doing it.

Sorry. I've already uploaded that.

Okay.

I love that it's new. That, that's good. Okay, perfect. Okay, so now say run this deal with these numbers. Okay.

So what you found was over in— is it in California?

Yes, it's right here. Hold on. Do you— are you familiar with Big Bear? Okay, so Big Bear's up here and then like Arrowhead's here and it's right here in between another awesome lake called Lake Gregory. So this is a very well-known mountain lake spot in Southern California. Everybody goes there.

Go back up to like go through the presentation real quick. Really, well, I'm saying the 13th Avenue Street.

Okay, so actress and musician Rainey Qualey married filmmaker Anthony Wilson in an intimate Halloween-themed celebration featured Vogue at this property.

That's cool.

That is cool.

And there's one— so 13 detached cabins and one barn.

The closest airport is called Ontario International Airport, right? Ontario, California.

I'm so sorry, say that again.

Okay, Ontario, California, right?

Ontario, California.

Yes, correct.

What else we got?

Okay, what did Deal Hunter say?

Okay, using the numbers from your sheet, the deal is improving but does not support 2.6 on current This is still a value-add seller finance retreat growth deal, not a clean bankable income deal today. And then I don't know if you want me to read this or if you just want to take a look.

Scroll down.

Scroll down at a steady pace.

So something—

October was so low.

Well, that's because they got married, maybe. But it shows.

Did you include the $23 million in there too or no?

Okay. Maybe it'll show.

This is a perfect example of people think that their company is worth more than it actually is. Because they're valuing it based on feelings rather than the numbers. So if your income is only like $200,000 or $197,000, go down, go down. So right there, right there, income $197,000, but their expenses were more like it was a negative. You understand that?

Reported NOI on the 2025 goes to negative.

That's a problem. Pre-debt operating income, like it doesn't even support the debt. It can't even support itself. This is running in the negative. This is why we run all the numbers.

So based on 2026, it shows that you're going down. It shows that it's just not going to make money. Yeah, maybe a $20,000 to $45,000 NOI on a $2.6 million property.

Again, remember like when you were— when we were playing cash flow and it had the minus $100,000 cash flow or whatever. This is minus $25,000 a year. Do you have an extra $25,000 to throw into a money pit?

Bend over.

Personally, no, this would be a bad deal. Like, there's nothing that they could sell it for to make it— like, to compensate for it literally having to, like, put an additional $25,000 a year just to keep it at break-even. Do you understand that? Like, it's—

it's—

none of it makes sense, right?

So are we meeting Hoy or are we packing up and go?

No, we're going to meet Hoy. So it's 10:04.

Do you want to wrap it up, everybody? So I had a good phone call and hopefully you guys learned a lot, but that Titan 23, did that, did you guys finish it out and see how it all worked out there for investors?

So that was a good deal.

That was a good deal.

But don't be discouraged. It's, it's, I want to reward people for finding bad deals.

100%.

There's a reward with the deal. Like being able to find, like being able to find a good deal is okay, but being able to sniff out a bad deal feel before you get in it, way better.

Yeah.

Right.

Like this needs to be like, what did we learn? We learned that marketing and pictures look amazing. And then you do the numbers and then you go, poop. And the numbers tell you what to do.

Right.

So it sounded incredible. It looked incredible.

It leans into dating profiles. Imagine real estate like dating profiles.

Okay.

So, because when you get into real estate, it's like getting into the dating game.

So I have a question. How, like in the dating world, there's some people who are like, I can fix him.

He'll change.

So with certain deals, like for example, with this deal, is it— could it potentially be like they are just really bad business owners, but the property is valuable? Does that ever happen?

And so you got to do those numbers and let the numbers tell you what to do.

Even if they're bad business owners, how long will it take you to get it? Even if you're the greatest, how long will it take you to get that from A to B? That's first thing. Second thing is the land actually that valuable, like how to understand that. And that's with comps. And so the comps say that it's only worth a million. It's, they're asking $2.6, but the comps say it's only worth $250,000. Right. And so the way to value that up is you go through everything and you say, all right, 13 buildings, it's this amount of money, land's this amount of money, and then you depreciate everything.

Okay.

Understood.

Awesome sauce.

Okay, everyone.

Do you want to say a prayer?

Because we got to— Father, thank you for the blessing of the state asset. Continue to take us out into the world to do your will.

Guide us and protect us.

Us and give us the strength in your name we pray, amen.

Awesome sauce. I hope you guys have an amazing Memorial Day and go have some fun. And tomorrow morning we're jumping back in. Bring your deals, bring all the fun things, and we're going to keep sorting through because we literally— 1,000 deals gets us down to 100 good ones, 10 offers, and then we get to do one. So more. Okay, have an amazing day everyone. Bye-bye.