Deal Room 052926

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.

Good morning.

Good morning. How are you?

I'm awesome. We have more and more people showing up here, so we're trying to set up like a little classroom here.

Awesome. That's so cool.

You know, well, now that you've been here, you understand. So awesome. Okay.

Film a video about it.

Yes. Let me do that right now. Doing a video. Doing a video. I'm not being coachable.

Hold on.

And then I'll do the live. Okay, here we are. Super excited. Getting ready for the Land Shark Mastermind this morning. And what are we doing? We are using AI to hunt deals down, to underwrite the deals, do the deals, get the funding all the way through the very end. So full cycle, very excited about this. We got people from all over the country and we have people actually coming and gonna be actually a part of our classroom today in person. So we're setting up our classroom.

We're really excited.

So if you are here in the Phoenix Valley, please join us. We're at Club Scottsdale every weekday morning at 9:00 AM. You're welcome. Just come on in and learn about all this and get connected to our network because it's about who, not how. And then if you are not here, you can also join us via Zoom, and that's landsharkmastermind.com/webinar. You can join us there and bring your, all your curiosity and knowledge and wisdom, and let's show you how AI can take that to the next level to add more commas to your bank accounts. Well, Collapsing Timelines, we look forward to having you join us. Okay, let me share it with you. How was that, Katya?

That was perfect. And then if you have the opportunity today, please try to film one about tomorrow's event.

Yes. What do you want me to say?

I sent it in the text.

Oh, I'm sorry, Kate.

Okay, I'll send another text to remind you for after.

Okay. Very excited. I just put it in the folder for you. Looks like Turkey's thinking around with a shark behind him. Okay. Did you put the phone in the little holder? No, because then it makes me go way back here.

But that's fine.

Better.

I'm in, I'm in the Catherine Bell mobile right now.

Lexi, be nice to Lexi. Yes, we love Lexi.

She's good, she's good. I gave her a full tank of gas.

There's a shark in the back seat with you though.

There is a shark back there. See that one? Baby shark. Baby shark. Look, you can see there's a big shark in the back trying to eat people's heads. Anyway, okay, good morning everybody. Happy Friday. It's freaking Friday.

It is Friday.

It is freaking Friday. One of the things I've noticed, especially after last night's event, like we met a lot of great people. I got to— we got this one meeting with this dude called Alex. Holy crap, look out. But I gotta do my part. Ready for this? Who's in here? Like, who's in here so I can understand?

So we have Caitlin. Caitlin's here in person. And then we've got, of course, Laura, Katya, Blake.

I met— I met a brother from another mother last night.

True. And I— twins.

He's literally— he's like 7 years younger than me, but I want to be him when I grow up. He gets paid to punch people in the face. He gets paid by people to beat them up. People pay him.

I don't even have words.

Do you understand what I'm saying? Like, can you actually grasp the, like, brevity of the entire situation of that? Like, he literally— people pay him thousands of dollars for him to put his fists into their body multiple times on purpose. I want that job. I want that freaking job. Like, and he's so good at it that he owns a helicopter. Like, how freaking cool is that? Like, passive income is cool, but getting the— getting paid to beat people up by the people that you're beating up? Like, I understand being like a hitman, but he's like a hitman, like, to you. Like, you pay him and then he— like, it breaks my brain.

So I've never heard of that before.

Michael Johnson. Look him up. He's a personal trainer and he trains people on self-defense. And he's like, the best way to learn self-defense is by getting your ass kicked. And he literally kicks people's ass. And so he was there with a friend last night and the friend told me about, I don't know, a dozen stories about Michael Johnson just whooping up on them. And I'm like, okay, and you paid the guy? He's like, absolutely, best investment of my life. And I'm like, what? Okay, cool. I want that job.

I don't even have words. I guess it's good to have goals, right?

Right. So, Michael, thank you. It's tough. Thank you, Alan. Like, he's literally like, he's like, I don't really do it as much anymore because trying to fly a helicopter with broken knuckles and broken hands is rough. And I'm like, oh my God. So anyway, I am outside coming in. If you got deals, get them lined up. Catherine, go into details about tomorrow's event and I'll be in just a second.

Okay, so really excited tomorrow for anybody who is— we are live streaming. Hey, it's here! There he is, Nate. We have a few people that we're going to introduce you to come to your event. We're really excited about that, so we're going to get you connected. Let's follow up right after this so I can make those introductions and get going. And then, super excited about that. Sorry, squirrel. Joy's here, I love it. So for those of you who are here, we're live streaming here in the valley, the Phoenix Valley. Tomorrow we have our Champagne and Cowboys fundraiser. So we're super excited about that. It's going to be line dancing and some whiskey and champagne, but the line dancing, more line dancing, it's going to be so fun. And it's here at Club Scottsdale. And if you haven't got tickets, just show up. You can get tickets. It's a fundraiser. There's always going to be barbecue food. We have Ellis cooking for us. Oh, I need to get that done today. Clearly I'm not an event planner. So I'm like, I need other people, they're genius doing this. Anyways, super excited to have everybody come and join us. It's for a really great cause. It's for Chosen Forever, my nonprofit. My nonprofit Chosen Forever focuses on getting the 120,000 adoptable children in the US foster care system adopted before their 18th birthday, which is their final black trash bag day, which statistically these kids end up homeless. 50% of our homeless population came out of foster care, which leads to drugs, prostitution, and being trafficked. And 60% of the kids being trafficked came out of foster care. So literally, the solution is adoption. By giving them a family, a forever family, it changes their neuron pathways and allows them to form healthy bonds with other adults. And that allows them to stop the— break the cycle that they were born into. They can go on and be productive, contributing members to society. And so why this matters is I was a Black trash bag kid, and I was adopted when I was 16, and it saved my life. And I also adopted my twins out of the foster care system when they were babies, and now they're 21, grown up, doing all the things. My son became a US Marine, my daughter's building her own little empire. So it matters, this matters. We've already gotten 69 children adopted and got, again, 120,000 to go. So one kid at a time, we can get this done. Anyway, that's tomorrow's event, super excited about that. So anybody in the Valley, please come, it's for a good cause. Even if you don't know how to dance, whatever, it doesn't matter. We're going to have Instructor's here.

It's gonna be fun.

He is an amazing dancer. I know, right? Nate's here. Joy's here. We're super excited. And then we have a whole classroom. Here's our classroom. Here we go. Everybody ready?

Whoop!

Everybody wave!

Yay!

Excited that everybody's here. We're waiting for Tommy to— okay, so while he's handling some stuff, we're closing multiple deals. Does anybody have— who has deals that are ready to run today? Because that's what we're starting to do. So any— we wanna make sure you have them up and ready. Run them through Deal Hunter so that you can share your screen, and then we're gonna go through them with you. And had a super cool call this morning with somebody that we're gonna be, I think, structuring that deal. Last night we were at an event here at Club Scottsdale, amazing networking event that we're gonna be— we met somebody, we have a 2.5-hour meeting with him on Monday and his team. Because the deals that we're going to be structuring with them are super cool. So we got some super cool stuff coming up. And then you also want to remember Monday at 4:30 Pacific time is the informational meeting about the Investor Club. So you don't have to be an accredited investor to join. And it's a way for you to get into these bigger deals and create multiple streams of passive income, because that's what we're here for. So how many streams of income does the average millionaire have? How many? How many? Scream it out.

7.

Right? So the question is, how many do you have and how many do you want? Right? So it all comes down to deal flow. You guys, we're teaching you to be searching and finding these deals using Deal Hunter. You have to be leaning in, doing the work, because again, with what everybody does, it's the who, not how, right? Like Laura is brilliant. She's the transaction coordinator. So when you bring a deal in, we get it under contract. She starts taking it over and doing all of that. And then, but you need to bring the deals to the table so that we can be analyzing them. We help line up the money, line up the tax structure, all of that. So everybody has their piece on the team, but you have to be going and finding the deals that again, make your heart sing. And we know that from your investor profile that we created, that you created, we created with you. So who— raise your hand if you've got deals you're ready to run. Okay. Katya, love it. Okay. Blake, Blake, do you have any deals that you're running?

I unfortunately don't. I did get confirmation on that hangar deal and that property actually sold. What? So I know.

And they still had it listed?

They sold it listed.

Okay. So you're still looking for more, which I'm super excited about. I love that.

Correct.

Joy, do you happen to know what your buy box is?

No, actually.

Okay. So here's what we're going to do. Cecily, do you know what your buy box is? Okay, this is really great. Caitlin, you don't know what your buy box is? Okay, so here's what I'm gonna do. Katya, I need you to schedule a time that you're available, and I would like everybody to come into a mini classroom with Katya and Blake, if he's available, and they're gonna walk you through how they use Deal Hunter and their, their profile to actually go and start— have Deal Hunter go find the deals for you. Okay.

When is that?

So, Katya, if you could let me know when. And Blake, if you— I know you guys have been busy, but if you can make yourselves available. I think it's like, again, here's why I'm having them teach it, because it's only inside of them teaching it that they're going to get even better at it, right? We could keep teaching everything, but to what end? Alyssa just showed up. We need to pull a chair up for her. Awesome. Cicely, would you mind Honey, could you grab it? Are you in class? Okay. We just wanna pull a chair up, maybe beside you. One of those for Alyssa.

I can absolutely set aside some time. I'm gonna check out my— Hi, honey.

We're pulling up a chair for you cuz there's so many people. Sorry, honey. Say that again.

Blake just texted me that he's available either Monday or Tuesday, and I'm also available those days. Is that if we do it next week early, that's fine.

Pick a time that you're available and then we will set up a Zoom call and have everybody come in and you guys can teach them. They want it recorded. Okay. Because you're rock stars.

Okay.

So we'll let everybody know. So Joy, let us— or can you tell us the time now and then we'll get in everybody's calendars?

Definitely. And then let me—

Laura can actually go in and create the Zoom link.

Yes. Let me coordinate with Blake really quickly and confirm.

Yep. Okay. So what time?

Well, we just wanna do it right after the podcast. Just keep it easy since we're all here already.

That works.

Okay. So you wanna do it Monday at 10?

That works for me as well.

Okay, then what? That's actually perfect. Okay, so Monday at 10 AM right after this.

I'm so sorry, I can't do Monday, but I can do Tuesday at 10 AM.

Tuesday at 10 AM because I have a blood test.

I'm so sorry.

Okay, no, it's all good. Tuesday. Can you do Tuesday at 10?

Yes, I can.

Okay, awesome. Okay, so Tuesday. Perfect. Tuesday at 10. If you guys can get it in your calendar. Joy, if you can get it in your calendar. Yeah, go ahead, sweetie.

I was just gonna say, sorry, I actually start work that day, Tuesday, and I have a graduation to go to that morning as well. So I don't know if I can make it.

Then Katya and Joy, if you could get each other's contact information and Katya, find another time that you and Blake can do a second class and then we'll have that created. Let Laura know so that she can create the Zoom link and you guys can do it on my account. Awesome.

Okay, cool.

So here's what just got created. Katya and Blake are doing a class on Tuesday at 10 AM for everybody to learn how they're using Deal Hunter to go and hunt for deals for them to bring it to the table that fit their criteria for their investor profiles.

I like that. We ended up last night with a— I have no microphone, so probably—

Right here. Nobody can hear you.

Nobody can hear me. Who's not hearing me? I'm important. Look at Nate. Nate's smiling down there. He's laughing a little bit inside. Don't worry, Nate. I'll get in a lot of freaking trouble in this thing. You'll watch. Sit back and watch. I'll show you how to get in trouble with people, especially a group full of women. Let me show you how to make that happen. Tommy, I know how to get in trouble. I do it all the time. Ask my wife. Where's my hand ring? Where's my handler at?

Amor. Where is Amor?

I got a handler, brother. She is dedicated 100% handler. And Joy over there is her creator. Joy was created from Amor.

So Joy can take over being your handler. She's been trained.

Joy's genetically empowered to be able to do it.

So let me just tell you a quick story about the whole handler thing. So there was an event here a few weeks ago and there was somebody here and there were two people together, and so the one person ended up going for a tour. The other person was like, wait, where did he go? Where did he go? And so anyways, long story short, it was like, well, are you his bodyguard? Like, what are you? And so this person literally was there to have to keep him from getting himself into trouble.

He was a bodyguard, but he was like a bodyguard for everybody else.

So that's a more for Tommy.

He's like, this guy's such an asshole, I gotta protect other people. And I'm like, why do I get one of you?

That's some more.

I need one of you.

Where do I get one?

I probably got to keep you two away. I'm like, no, we already met. That's why I'm looking for them.

Okay. Anyway, Katia's got a deal. She's ready to go. Next week, everybody else is going to start coming in with deals ready to go.

Well, we, what we did last night was we signed up a new, to be in a new situation. Scott Club Scottsdale is actively seeking properties to acquire, rehab, and put into the rental market. And so we started talking about a system last night, and so I signed us all up for bird-dogging on luxury estates out here in Scottsdale.

So, yep. So they're going to have the criteria. So all of you can use Deal Hunter to start finding these deals. We bring them in, you all get paid. Awesome. But you need to be bringing the deals in to get paid.

It's a sourcing thing. We got to bring deals to get them. We got to bring deals in to look at them. We can't make offers on everything, and everything we make offers on is not going to close. And everything that we close on is isn't gonna turn into a billion dollars for everybody. It'll be a little bit here and there. So that's where the need for, uh, multiple people doing it. Because rinse, repeat, rinse, repeat. And you can turn this thing into an Herbal Essence commercial.

So, okay.

Well, if you think about it, all right, so who's too young to know what Herbal Essence commercials are?

Nobody has any idea what you're talking about.

Raise your hand if you don't know what an Herbal Essence commercial is.

See?

It's not you. Are you there?

Yes, I got you.

Okay. Well, it's not just the shampoo reference. All right. Homework for everybody. Ready? Get your pencils out. Everybody got to go to YouTube. Everybody got to get—

here we go, Blake. Here's another one.

Go find the Herbal Essence commercials from the 2000s. I did not know that would be like a thing. A thing. I thought everybody would know about that weird commercial. It's very weird. When you watch it, make you uncomfortable. That's the commercial I'm talking about. Like this woman literally on a plane goes in the bathroom to wash her hair and comes out like 7 orgasms later.

It's true.

They made it like the Mile High Club for shampoo. But the level of satisfaction that you could get from rinse repeat on finding deals and getting deals is similar to that woman's experience with shampoo bottles in the airplane bathroom. Anyway, I'm so glad Nate's distracted on another call. He's just like, I'm out. What?

Okay. So you ready for Katya?

Where we at? Katya, you gotta be old. Joy's not in here. Blake, you have been officially like voluntold to get the, all of the YouTube channel videos with those cool backgrounds and like get, I want all of them to have facelifts. Are you dragging?

Talking about thumbnails. Him and Katya were working on it.

All right. Rock stars. Hop to it. Get like, pair it up. You guys have full, like, I'm ready. I'm. Releasing the how, you know, so, cause like the way you guys got those perfect, they look, they look amazing. So I got 14 compliments in the last week about how much content we have and how amazing all the information is and stuff like that. So, and we had that meeting with the AltWire.

Recording in progress.

AltWire wants to showcase our podcast. Not a lot of, not a lot of alternative investment companies out there doing podcasts. Right. So I'm a trendsetter. What can you say?

Yes, you are.

We got other stuff that— Katia, share that screen.

Yes.

Okay. In that TV show. All right. This is going to be old. Who here remembers Home Makeover? So the Home Makeover show, anybody? So in the Home Makeover show, they said, it would say, move that bus.

Oh, that's right.

And on this show, yeah.

Move that bus!

Say, share that screen.

Run that.

One Wrigley Avenue. I want to buy it just for the name.

Right.

So this is another Club Kali concept. And based on my chat with Deal Hunter that has been going on for like 2 months already, my little sidekick, he says, or she, it says 8.1 out of 10.

He/she/it said it's an 8.1 out of 10 for you.

Yes.

And the base rent's about $27,000 to take the full building down. Is there— do you have a call sheet on it? Everything like that?

Say that again.

You have a— you have a— how did you put this in there on a listing sheet?

I used this and then the LoopNet.

We can go quickly through that industrial park. Cool. Big open area. First, second floor is open. Perfect.

Beautiful. It looks like it was used, like it has different sets, which is funky. Like, see?

Very soundstaging. Well, it's a branding company, branding business. That makes sense. So for sale or for lease?

Yes.

All right. You definitely got the executive lounge stuff going on. The industrial shelf helps with a car concept. The third biggest concerning parking. You have 2 parking spots per 1,000 square foot of outside. But when you got the inside space, you got a lot of space in there for the parking, right? Yes. So we would have to find some offsite agreements, probably. What's the back of the napkin say? Your base rent? Oh, sorry. Trying to read. A triple net and all that. Your total occupancy is around 35,000-45,000. So needed revenue. Okay. Making sense so far. Lease option. That's not a bad idea. Buying it at 6. One, ties up a lot of capital before the concept is proven. We've got the proof of concept though, right? We don't have a market. We don't have market proof, but we have a concept proof. We have a POC on it, but what we don't have is a market. So figuring out if that market's there, that would be something to explore. So the no-go concerns are there. That looks, that looks wise. But as far as like having the entrepreneur club with the car club association and all that, yeah, absolutely. I like the, I like the location and the look of it and all that. And at 6.4, it says it's $334, $334, $344 a square foot, something like that.

$375.

Right. If we went down to $350 a square foot, maybe $340 a square foot, that calculation's right where we want to be.

Perfect.

Okay. So do you want me to contact Jeff and Jonathan?

I think it's fair to say that we'd like to have a conversation, but I think we need to do A little. Okay. Where is it? Down. 1980. So we would want to know like when we, when the air conditioning was done, roof redone, when was this done, when was that done? Because if it's got 1980 roofing and stuff like that, like the concession on that's $550,000, $650,000 alone for that roof.

Okay.

Right. Slow down right there and look. That's an old roof. That's an old looking roof.

How can you tell? Like, what are people looking for?

They're looking for a guy that did it for 40 years.

Oh goodness.

Be like, it's who not out. It's who not out. Can we say that? Who not out.

So what are those things at the top? Like those rectangles on top of the—

this camera right here, or this video right here. I don't know what you got video. I'm trying to get it to show them, but you're gonna have to take the back out.

That's what I'm trying. That's what I was trying to do. Got it. I can't do it from my side.

Do it. Point that at me. There's something going on. It doesn't matter. You're distracted and I'm distracted. Anyway, it's a good position. The land assessment says it's only worth $50,000 and total assessment value, that's $2.3 million, right? So that's just market data right there.

And okay. Sounds good.

Buddha belly. Get the shark to munch on my Buddha belly. Stop. Oh my God. Tanya and Blake, you guys need to run an ad for like sound stage hands.

Because Catherine's not it. I could do it if I was there.

I'm just not there.

I can't.

What is—

Okay, we can stop the video.

We're— sorry, like this.

Here. Did it? Did it? No.

No.

Did it? All right, turn the video off. That'll work. Well, that doesn't help. That doesn't help. No, please turn the video back on. It's gonna ask you to start the video.

Here you go. Here you go.

Okay.

Is that better? Is everybody else feeling better?

Now we see everybody in the class. There you go. So everybody needs to pay attention. There you go.

Okay. Anyway. Not yet. Moving forward.

Okay.

Run the numbers on the area, like find your comp.

Okay.

And then get that deal hunter to get the discovery questions taken care of about like how's the roof, how's the mechanicals, how's everything.

Okay.

Last updated, et cetera, et cetera. And then if they're open to lease, would they be open to, open to like the purchase option or a, or an owner financing of some sort? Right.

Can I ask a question that may be silly?

Oh, you say it's silly. Ready? Go. It is.

It is silly. So when you— so for example, if we leased this property for 5 years and then we decide to purchase it after those 5 years, the money that we invested into the lease, does that get deducted from the purchase or do we still have to purchase it full?

So on a lease, the answer is no.

Okay.

On purchase option, the answer is yes. Because what you're doing is as a purchase. So put that in your deal, Hunter. What does the economics look like on a lease versus doing it as a purchase option or doing it as a seller finance? So ask it to give you those 3 last 3 points.

Okay. Can you dictate that really quickly?

No, I'm going to do it really slowly, but you can pull your screen up and I'll do it.

Okay. Ready, set, go.

Give me the economics of doing this deal as a lease option, as a purchase option, and as a seller financing option at the current asking price for the lease and the sale.

So Nate's asking questions over on the right.

Nate, it says it's just the gray building, correct? Now, if you're joining by phone, I believe that's correct.

Katia? Yes, correct. Just the gray building.

So just that one. Understanding. So Nate gets an understanding. That's a zero lot line right there. So Nate has an understanding. Katia is the sponsor of this, of this project. And so what Katia will do, she'll walk this deal from start to finish. When we get to a point where we're ready to make an offer, we pull Laura in as a transaction coordinator, we're going to pull in, we're going to pull in Tracy as a fund, as our fractional CFO. Catherine and I get to work on building out bankable documents, which means that everything that we need for the bank to approve this, we'll put together, but we're going to use the sponsor and the TC to help us pull that up. And then what we end up doing is with Tracy managing the financials and the economics of it, we then package it for either a bank to look at, a pile of investors, or just putting it out on our marketplace for equity partners at key positions. So in some cases we might have somebody who wants to be a general partner and they need, say for example, a cost seg situation, or maybe even a children's trust. We'll pull them as a general partner to give them the opportunity to enjoy some tax incentives that us as an entity don't need. Right. So those are the things that we end up trailing through when we, when we look at deals with business partners. All right, Katia, I think you got your homework right.

Yes. So I'll read through all of this and then—

Do one more thing.

Learn something. I want to use this as a training opportunity for everybody to understand what you just did with her.

But I will go back and hit the dictate one more time. We also want to look at what the list of questions we need to ask the broker about the physical property itself. When was the last roof put on? When was the last HVAC update? How old are all of the things on the property, such as the paint, the roofing, the windows? Like, has anything been updated since 1980? And what's blowing my mind— ready for this, Katya? What's blowing my mind is this building. $375 a square foot. Palisades, those tiny homes are $3,200 a square foot.

Okay. Isn't that crazy?

Is that like— you see the mark? That's called margin. You see what that thing is now?

It's all about location.

Like, holy—

that's, that's wild. I also scheduled a meeting today at 1 with Catherine, Laura, myself, Cicely, and you, Tommy, to discuss the Palisades.

We'll get into that. So maybe we can update Nate a little bit on that. You, one of your 5,000 windows right here. Let me See, if you scroll in your conversation bar, you can probably—

Palisades property, right?

Let's see. So there's—

by the way, go ahead.

Oh, sorry, go for it, Catherine.

I was just gonna give you an update on— I'm super excited, we have another project associated, but next door to the Palisades.

Next door to Palisades.

We're gonna talk to you about that.

Oh really?

How cool! And HGTV wants to be involved. If we brought HGTV into both the projects That would be freaking cool.

So we have a million dollar bond for HPPB to pick it up. But once we have the million dollars, we can basically go out and start picking up projects and getting this thing accounted for.

So, Nate, we want to talk to you about this because I think this would be super cool. It's all about leaving every person, property, and community better than we found them.

So let's tell the story real quick. I'm back to the picture of the Palisades project. This is a— how many acres is this?

It's 19 acres.

And this is old mobile home park right there.

Pacific Coast Highway. And so it has 170 units.

Devastation done from the fires.

Cool. Like I said, go to the one that's right there on the right. That's— is that, is that also the one down and to the right? Down, down all the way to the right side. Where's the putting green right there?

I think that was the pool.

Or the pool. Okay. The pool. So like this whole thing right here, all these buildings, how many total now? Let's jump back to the—

jump back to which one?

Jump back to the, you know, breakdown. There you go. What we're looking at, a lot of people were looking at this as possibly creating— it's 19 acres. They want to create like 18 luxury home sites and build these 3-story, 4-story beachside monstrosities.

Or hotels.

Or hotels. And the city's like, not interested. Mobile home park. But the nice thing about the mobile home park is that these houses sell for north of $2,500 a square foot. That house right there will sell for— those houses right there will sell for $1.5 million to $2.5 million apiece.

Isn't that insane?

That's crazy.

Only because of the location.

And then we're able to be creative with space by putting a rooftop deck, which I think would be so— can you imagine like everybody's hanging out on their rooftop watching the sunset on the ocean? And if the TV platform gets involved with it, then it can become like something trendy that everybody wants to to get this mobile home from this community.

173 times. Let's go back and look at your economics on that real quick because they want— they, they're actually entertaining the opportunity for us to buy this. They said $90 million for the dirt. We're looking at buying it for probably like— I want to make an offer at $65 and see what they do. But between $60 million and $72 million.

Yesterday we, we— I— because you told me to do an offer for $72 and he said, yes, we're exploring in that option right now. The only struggle is they're having issues with finalizing the fine print and the timeline, right?

So again, they're— what the people are shopping them for is not what we're thinking about. Like, none of the developers out there are willing to do what we're looking to do because of the cash outlay that it requires, and then the sitting on it and holding it for that long. And if the city is willing to let us do— because according to the phone call, it almost sounded like the city was willing to let do? Build-to-rent community, isn't it? They're like, oh, oh, you're not going to lease them out? You're going to sell them? I didn't know I had that option. Right. So build-to-rent community there, like you could easily charge how much a month? Where's my, where's my experts?

Do you want me to dictate and ask how much?

Sicily's here. He's asking Sicily. Oh, perfect.

A month? That's too low.

That's way too low. The numbers don't work.

So, what are the rental comps in that area? That's right.

Katia, let's run it.

Okay. Ready, set, go.

Tommy, she's waiting for you to dictate.

What is the, what is the average rental rate in this area? So a unit like this, I'm talking about the one in Pacific Grove. That's what I'm talking about. The 173-unit mobile home park that burned down. How much are their rents going for in that park? Okay. I got Sisley's brain cooking on a different deal.

I showed her the Bell Hotel, which one in kid We're going to have all everybody working on the different deals.

Awesome teamwork. Oh, Pacific Bowl. So for— oh, well, there we go. That's super low comparatively. So the apartment rents are right there, but we're not looking at them as apartments. Homes.com shows $12,000 a month median overall. Townhomes are at $5,600. So, how long though they rent? In that Paradise Cove, $7,500 and $14,000 a month for the home that's in that community. All right, so we need to be on that $14,000 side, right?

Just the lot, which that makes sense, but now you have the actual building.

Probably, it will probably split it up in a second because—

What was the question?

Would we keep the homes as park-owned homes?

Okay.

What we might do would be like the split it up in a second. Each street is its own, is its own LLC, and it has 14 assets in it or 24 assets in it. You sell that street to an investor and then that investor and you split the income off of that street. The next one is another investor. The next one is another investor.

They all enter.

Well, each street, each street is its own LLC. That's smart.

We are a property management company that manages, we're partners in everything they own. So that we can control the property, but investors pay for it, right? They get that cash deal. So, okay, cool. We definitely want to get in talking to him about the $60 million. Nate had to bounce out. So we were— I'll be back. We were practicing right there. And so you can see the macro click at $8,000, that's $16 million a year, right? But we're looking at spending $200 million. So that's not mathematically, not, not at all. I'm sorry about that. Right.

Because if so, can we run those numbers? So if we are like, what is the NOI off of that? Off of, what is it? I think it's like 100, is it 178 lots?

70 lots.

175 lots at, if we just scroll up just a little bit, what were those rents? So say I would, I would take each one of these 5, 6, 7, 8 and run the NOI for $250 million investment for each of those. So here, let's dictate it.

Ready to go. Reverse engineer the numbers for the quick math section from $5,000 a month to $8,000 a month. Reverse engineer those numbers to see what we would end up with at an NOI if we spent $250 million to complete the entire project out there. So basically saying if we raised $250 million, spend it on that property, what would be our net operating income with those, with those rents?

So what we're doing here is we're doing the numbers and the numbers tell us what to do, right? So when we can reverse engineer what we're looking for, then we can restructure it. So while this is doing this, a really great example yesterday, One of my other partners, she came to me with a whole other project in Altadena. The fires completely devastated that entire city, like the houses, the businesses, everything, schools gone. And so she grew up there. So we're talking about it and she's been trying to raise capital for this particular deal for 6 months and just every door being shut in her face. And so yesterday we went through Deal Hunter, Titan 23, and Free Estimates. And re-engineered the entire thing. And what it came up with, the capital stack was unfreaking believable. And from a political standpoint as well.

She literally said she's worked on it for 6 months and we did more in 30 minutes than she did in 6 months.

So, and she did, it brought up things that she just never would've thought of. And she's a very experienced developer. Like she's been doing this for a very long time. Brilliant woman. And so this is the one that HGTV wants to roll it down for. So we just had to figure out The capital, not this one, but I think that we could roll this one into that one as well.

The gross annual revenue is between $10 and $16 million. So with a gross annual gross revenue, our annual gross revenue is not $250 million.

I think if we read the instructions, it missed it.

Let's redictate. Let's redictate. I'm not quite sure this math is mathing properly. So what I want to do is I want to look at the incomes of $5,000 to $8,000 and figure out If I invest $250 million into this project, what does the monthly rent do for me? If it's— if our gross revenue is between $10 million and $16 million, what does the ROI look like on that? So use the numbers you came up with to tell me what the ROI is on the $250 million. Try it one more time and be patient. Everybody's seen that guy slide in here. He's my bodyguard. You look big enough to bodyguard me. So here we go. We got bank numbers right here. So It's showing that your ROI based on the gross annual ROI, like no expenses necessary, is between 4% and 6%. So we like double-digit returns on all of our stuff. So how we would achieve that isn't necessarily through the build-to-rent, right? But to me, those numbers are low because I want them to be around $14,000. Luxury, right? Let's just see what luxury looks like. Hit that, hit that dictate button. Let's give it some. Let's give it some aggressive numbers. All right, I want to run this aggressively, so look at it at $12,000 to $14,000 a month. I want to see those numbers and those returns. Let's look at it now, because we want to get at least a whole, whole number return monthly. Fractional, fractional monthly returns are not good for investing. You're like, man, it's not even worth it. Yeah, all right, roll it in there, roll it in there, keep going down, keep going down. So again, at $12,000, $14,000, you're almost at the one 1% mark. And that's a, that's a key indicator. You want to make 1% rent or it doesn't make sense. If it don't make sense, it don't make dollars. Right. So even at the most consistent, like all the way up at the most aggressive level, it's still ain't penciling out pretty. Correct. Pretty at that point. You see, look where your simple payback is. Your simple payback's a decade out. Wow.

So what about selling them off?

Hit that. And here's the example I want people to see. That call to action right there. Livestream training. Boom. Go. What people miss about ChatGPT. Oh, go use Grok. Oh, go use Claude. Every commercial I see on TikTok, ChatGPT is dead. Okay, great. Then guess what? Like, it is if you're planning to use it to make your business or make your website. But GPT is literally Google now. Who uses Google anymore? Anybody go to Google anymore to ask questions? They don't know what Google's done. They're literally like going to ask a kindergartner. If you go to Google and ask it to do something, it better be to tell you, point you at a website. That's it. But that's all Google was, a search engine. Google is a smart engine, or ChatGPT is a smart engine.

Right.

And you can see right there, that's a call to action to our company. So I encourage people that have a business, if you want to continue to speak to your customers, you better start using ChatGPT and get a Expedia can't be wrong, can it? Expedia's got a ChatGPT, right?

Everybody's got one.

Yep. Like every major corporation out there is getting a ChatGPT built. Are they using Grok and Claude for other stuff? But guess what? That's not, that's not going to talk to your customer. You can't get Claude to do a call to action like that. Go look at my website, right? Claude will make your website, but it ain't going to tell your customer to go look at it. Right. So I love ChatGPT. I want to make t-shirts. I love ChatGPT. So it does irritate me when people are like, oh, it's dead. No, it ain't. Hear more.

So we're going to have to have like a whole list of like your I love ChatGPT t-shirts and your if it isn't a hell yes, this is a hard no.

Oh no, we got to, we're going to have a merch department. Who wants to run a merch department? Because I want, I want that shark thing right there on a t-shirt. Like Blake is going to come up with an awesome t-shirt design. For sure. I bet. Anyway, rolling through this, let's talk to it about buying it. So we're looking at these properties and we're planning to spend probably about $300 a square foot. The footprint we're looking to fill is between 700 and 1,100 square foot. So do the economics on this where we're building them for about probably close to $400 a square foot, selling them for the comps in the area. Go comp all the mobile home parks along the coast and come up with a very conservative square foot sales price using all of our listing websites. We'll find the sold units of mobile homes in these mobile home parks that survived the fire and discover how much they're getting per square foot sale price. Then run those economics together so that we can understand now what an ROI looks like. I want to know the IRR, the ROI, and the cash on cash return with a multiplier for building and selling these homes. We're still spending $250 million for land acquisition and construction, but now We're going to be selling these units. We're going to sell 80% of them and retain 20% of them for our own rental market. So, but we will sell the 20%, 20% of the units to a property management company. So maintain the metrics as if we sold out all 170 units. Ready to go. So, all right, here we go. Here we go. And if you don't mind, Catherine Bell, that's what Kathy is over there doing research. Jump over real quick to ours. That we looked at yesterday.

You're talking about the multidimensional? That one's on mine, not yours. So, oh no, I can, hold on, I can get logged in. We're on my computer.

You need to look at yours because you do, you don't do an app.

I wasn't in the app.

I know. And you don't use the app. I use the app.

What? I'll send you, I know what to do.

Not please. Pickle juice. New window. New window. You're signed in under me right there. Just go get a new window. No, that's a new tab. Right.

Well, I don't know what you're trying to say.

Right-click on it, right-click, and it says new window. Cancel. See where it says new tab? I think if you right-click on it and you can move to, move tab to new window. Like that. Move tab to new window. Perfect. Where it says work, for me, my face, any of that, anything you click.

Can I just share the chat and then it'll pull it up?

Please just, but I'm asking you for patience and doing it the way I'm asking. So please get rid of that and go back to the one where it's my face. Over there, right there. You're just switching profile. Thank you. Now type in your, in your search bar, your OpenAI or whatever, and then log into it from there.

It's not, it's not sending me anything.

Try another one.

Altadena rebuild deal.

I just want to copy and see like what we're looking at here so we can compare back and forth. But the issue they're having out there is that the cost of the house is really high and people already own the land. So how do you incorporate the land into what they're trying to buy? Right. And so if anybody owns land in that in that part still. I don't think they own land. I think they just did lot rents. And so if their house burned down, they got paid off, they got to go away. We don't have to replace anybody's home. That's the part we have to figure out. Here, there was entire homes erased and annihilated. So go up, please. I wanted to show her the presentation. It should be at the top of your thing. So they're at like the next step. They want to start buying and acquiring property. And so this whole section of El Tadino burned down, and it's pretty devastated. She's got a strong team. They got all these different ideas of different buildings that they want to do there. But all these buildings are very easily $700 to $800 a square foot to build because they're building them out of concrete, fireproof. And so with fireproof housing, it's like, oy! So we could do fireproof housing there and the one you're talking about simply by using containers and steel. And so that's the, that's the idea that you can build on from there. So. But you can see their issues right here. So they have lots that are deep. They have several thousand lots out there right now. Um, but the cost of construction, the math isn't just math and very well formed. So figuring out how to get it mathable, we ran through it and came up with some really good numbers. So this was just a comparison of what we got going on. Let's take this right there. See it? $232 million gross sale. Like that's how much we have to raise off of that. Right. So let's go back and look at what we're looking at, Katya, and wrap it up for the day. If I owe somebody time, they'll get a deal. We're talking about a deal. Send me a message so we can figure that out. So right here it says, I dug through it. All in all, the $250 million does not pencil, does not pencil on third sold coastal mobile home park comps unless you achieve valid ultra prime pricing well above the most of the, most of the sold samples. So like, honey, it says here sold in 2012 and that'll be sold for $1.9 million. Thank you. Space, that one, they sold for $2,079 per foot. And so these houses are selling for about $1,000 per foot. So it ranges from $1,000 down to $100, right along the coast. I don't know where we were finding the ones that were at $3,000 per foot. Maybe it's just when we were looking, but that's what we need to find. So keep going down. So selling them at the gross sellout, we're looking at $158 million. So that's why it says it doesn't pencil. Even if we sold them all at that price, there's no, there's no way that that's a safe return. So until we find those ones where they were selling them for $25,000, $30,000 per foot, that's where you're at. Now, can you get it down lower than that? Absolutely. We get it, we get the property for $65 million. We build all the houses for $129 million. We're at $185 million. Million, it works there. So, but keep playing with it, Kathy. Find those other comps, right? Make it make sense then. Go look at the comps where they're talking about right now. And if they're comps, then they're comps. We can't be economic.

Okay. Sounds like a plan.

Anybody else got anything to put in? Sicily is going to be looking at the Bell Hotel across the street, Laura. And what we're thinking about doing is doing the, doing the Bell Hotel there. We talked about like how much per night it could generate stuff like that so we can work up a pro forma, raise capital for it, go at it from that approach if we want to. It's been up for sale for over a year. So if we could get a hard money loan on it for 12 months to get the proof of concept done and then turn around and do a DSCR based on what we're leasing it at, that's a way to do it too.

So Katia, you're next Tuesday at 10:00 AM doing a class with the rest of you to learn how to be using Deal Hunter to bring in deals that match your investor profile. And also as different people come in and they like, they're wanting to do these smaller fix and flips, you can find those deals here in the Valley and be a part of getting paid for sourcing those as well. So it's exciting.

Investor survey.

So they've done it. Have you done it? You need to do it.

I actually got nervous. I think I did yours already, right? We went over it yesterday. Yep. And you've already had yours for a while, right? Oh my God. Like all the disappointment. Stop it, Lauren. Stop it.

She's not saying a word. She's holding her mouth.

She's literally holding her mouth shut from saying, wow.

She wants to say more than that, but I heard it. I can hear it from here. Joy had to jump because everybody has work to go to.

Everybody, I appreciate you coming in today. Yep. And being a part of the show, we are going to have a great event this weekend and going to be back on Monday to tell about all the stuff that we did over the weekend. So, uh, in the meantime, Heavenly Father, thank you for blessing this day, blessing this life. We ask that you continue to bless and guide all the people in this room. May their hands that they touch, may the thoughts that they have, may the words that they speak all follow in path in unison with your son, Jesus Christ. And pray for the enemies that we are sadly stepping upon to move through life.

So Katya, really quick, we'll do a video right now for you for the Champagne and Cowboys so we can get a couple. You have— you send out a couple of those. We're really excited and it's going to be exciting. I think as we're setting up and stuff for tomorrow, well, poke me and remind me from 2 o'clock on and I'll do some videos when we're coming in and we're actually getting all the things set up.

I don't want to be a bother if I like poke you and remind you.

Is that I need you to. Not yet, because I will not remember.

Say that again.

It's your job. It's what you're paid for. Is what? Be a bother.

Oh, be a bother.

Okay. Who knows who the highest paid person in the king's court was?

No idea.

Did you— like, I want to do like that one guy doesn't know. Did you know that the highest paid person in the king's court was the royal ass wiper? Now you do.

Ew, that's not even a wow.

That's an ew. But there was a royal ass wiper, and he literally wiped all the asses of all the court. Gross. And he made a shit ton of money.

Pun intended.

Where do I come into that? Why were you inspired to share that?

Totally, I'm with you, Katya, because I'm trying to connect the dots here and I'm having a really hard time with that analogy.

Today is all about the weird stuff. Like, I started out with the guy like getting paid to beat a lady up and then flipped right over to—

not connected at all.

I actually have a certificate for being— there we go. Literally, I guess. Okay, I passed my butt wiping class.

Okay.

But yes, please film several videos. And I found that if I— you're very good at like— I don't need to give you a script.

Oh, she's pretty good at rambling.

You're very good at— no, but just shoot maybe 2 videos about, hey, come join us tomorrow, and then also what about. And then also yesterday, or on Tuesday, there was a concept that we discussed about owning the land and renting dirt. And so we hear that often. So can you also do a video touching on that topic? Because it's something that comes up often. Okay, yes. Thank you. Thank you.

Love it. Okay, I can do those. Love those.

Perfect.

Especially with the project that were the Palisades, even the Altadena, there's a version of that happening there.

Perfect.

Okay. Yay.

Okay, everyone, thank you. You're amazing.

Bye.

We'll talk to y'all later.

Bye-bye.