Real Estate Deal Analysis: Live Deal Flow & AI Tools

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

Laura, are you in a new location?

Let's pull up my— pull up my GPT.

Craziness.

Okay, hold on. I got to stop sharing for a sec so I can pull up all the things.

Yeah, I'm only signed on on that one right there, not this one. So that's why you got to run mine from there, from here, face mine this way.

Laura, I need to make you the host because I need to now switch everything out.

Did you ever find out the price on that one deal on PCH, Katya?

No, I didn't get a response back this past weekend.

Fair enough.

They were probably gone. It was the weekend anyways.

Hey, I need you to promote Tommy, please. Yeah, I need you to make Tommy the co— the host, please. And then you can stay co-host. So I've got to do it from this other— yes. You're on, you're live. Everybody's watching you. Yeah, I know.

I'm waiting for it to get caught up on your screen.

Everybody is seeing that, right?

So, but there's no words there. Can, uh, click on the deal snapshot. There you go. Now we got words. You wanna scroll up to the top? So We're gonna— anyway, good morning. I don't know, we had a lot of technical difficulties here today. So we're gonna do 2 hours. And so starting with doing 2 hours, what we're gonna try to do is set it up where we run deals until 10 o'clock and then do some educating behind stuff. And so first off, wanted to thank everyone that's come in today. And I'm waiting to see if Amor's coming. She's got a deal that she wanted to run today as well. But I got a deal I'm gonna run. Run through real quick and then we'll jump over to whoever's got theirs ready next. So, what I learned this week over at the FactRight conference was that people were super excited to learn about deals. It was not a rah-rah conference. There was not a lot of, like, hype and energy building because everybody's there to do deals, you know? So, It was really a more relaxed atmosphere. So, but I did learn that they like to run deals. They like to look at what, what's going on in real estate and in deal deals coming out. So they, they definitely more raised her hand. I don't know where's the more. So the, the thing that I think is going to be important for, for Land Shark. Is that giving you guys the opportunity, we brag about you guys as members of Landshare. We brag about how amazing you guys are to the point that we made people mad. Like, right, Catherine?

I don't think people got mad.

You don't think people got mad that there's people only doing this for 4 months or 4 weeks and they've done more in 4 weeks than some people have done in 4 years or 4 decades?

I think they were shocked.

I don't know if they were mad. I think they were questioning, like, The legal integrity of, of how dare Katya be so amazing without a license. She should go get a license.

Oh, they're probably questioning their life choices.

Yeah.

And choosing to do it the long way.

Go and waste all your money and time getting licensed to be a realtor and get a realtor's license so that you can be legally held responsible for all the greatness that you're capable of. Okay. So that's, that's bad advice from a guy that did that, right? Like I went out, got a freaking license, worked for a broker for 6 years, made him rich, made me nothing. Right. And as a matter of fact, you can go look them up, Nye Commercial Advisors. I was there day one, start one, you know, and still there. I was part of that, you know, but what I walked away from knowing was that it wasn't mine. Like I was there as a tool. I wasn't there as a partner. Right. And all of you guys in this room are partners, 100%, 50/50 joint ventures. We, we. You know, we signed it all when we joined and signed up to be in here was that we were going to do joint venture deals and everybody was going to get compensated and Amor is on top of that. It's like, I need my people to get paid. You understand? Don't be coming up in here with deals expecting people to do stuff for free. This ain't a circus. We ain't working for food and room and board. Give us some money. We work on greenbacks around here.

Right?

I did not say this at all.

I know, Amor.

Bing, Amor! She's— she— I tell you what, she is the Sheriff of Nottingham. She will come around and collect the tax if you don't get on it, right? So, but that's okay because this is— we're making the Robin Hood of real estate. That's what we're doing, right? And yesterday, Catherine and Laura and I got to sit around and we watched a really cool movie called The Blues Brothers. Guess what The Blues Brothers is about? Anybody know what The Blues Brothers is about?

It literally is the title.

You know, it's actually about a mission from God, right? That's the first rule. It's a mission from God. And they did it by getting the band together. Believe it or not, that's what it was all about. Getting the band together and doing it as a mission of God. So, Cat, we, we learned that.

I love this.

That's what we're doing. We are, we are the, are, are the Blues, uh, the Blues Cruise, not the Blues Clues, because that was a cool cartoon for That is a cartel. We are the Blues Brothers band led by Catherine Bell because this is a mission from God. We do believe that God is guiding us on this. All right, enough about all that. It's quarter after. Well, let's run some deals. I loaded up this deal and what we're going to do is after we load up a deal, we're going to run through it, see if we like it, give it 5 minutes, move to the next one. And this is going to be kind of the format that we follow so that people, investors coming in are like, hey, I love this. I want to be a part of it. I want to do it right. So let's run this deal and see what we can come up with. So I got this literally 2 minutes before we started. If you click on the pictures, we can go through what it is real quick and get a snapshot. There's a property over in Chandler and you can see right here, it says Stoneview, blah, blah, blah. You see that horseshoe driveway going in there and you see those buildings lining that property. Guess what that is? Multifamily. You can tell from that aerial that's multifamily. The house right next to it is what they're offering us. Right. So let's go look at the reviews on the rest of the pictures. I click on that one. It says this one is a summary. It was built in 1966. It's a 0.74, so 3/4 acre with a 3-bed, 2-bath. And if we did a re— we'd have to do like a full rehab on it. But I don't look at stuff like that. I go, hold on, wait a minute, there's something better going on. Go to, go to number 2 picture right there. And it said here in, in this section that the comp is next door is the Luxury Townhouse development. And so I'm like, oh, okay. So we got a Luxury Townhouse development next door. And those are going for probably $250,000 apiece. So if we do a few of those, let's go see what Deal Hunter said to do. So we gave it this, it did the snapshot. Does it, does a quick underwriting flip strategy. It says on a rehab, that's about looking at about a 10% ARV, it's like not, not good at all. Right. So doing it by the numbers, numbers tell you what to do. You're getting a net profit of $5K. Would you guys do a rehab on something you're getting $5K on?

No, you're making 50 cents an hour on that.

Not even, right? It's ridiculous. Reality check is all in, this thing is $475K to make it a clean flip. And then that $510K you're paying for retail, you're paying retail for a heavy rehab. So the alpha on this is the development angle, right? Saying that there's a comp showing lots selling for $600,000, new builds nearby, pushing higher values. It's not the, not a flip deal. It's a land play disguised as a house. So how do you do this? You get a wholesale to builder, right? Or you do an entitlement to flip, or you do a hold to land bank, right? And then there's options from that. Option 1 says that there's thin margins doing that. Option 2 says the land deal, a little upside to it. And then the wholesale assignment seems to be, you know, a little bit tougher on that side. So key risks are overpaying for a flip, unknown zoning limits, and all that stuff. So let's look at what the go/no-go. No-go is a flip, period. And then as a go, it's only if zoning supports density. And you have a buyer, a builder-buyer lined up. And so the action play here is that, um, we pull the zoning and lot split rule, discover what we got, and then try to get 3 to 5 buyers lined up. So keep going down, keep going down. I said, what is the ARV percentage if we do the townhome? Townhome play, right? So scroll down to this. We got a lot that says we can probably do an 8 to 12 units conservatively in Chandler. So if we did this like that, uh, what it would turn out to be is the ARV at $500,000 with a 12-unit, the ARV, future ARV needs to be above $600,000 or $6 million. So with the 12, this is how you reverse engineer the numbers. The 12-unit at $6 million means that an ARV divided by the purchase, right, comes out to a really high percentage, right? Like the percentage from what we paid to there is, is pretty extensive. So, uh, but what we're not accounting for, and it shows you right here, what we're not accounting for is the construction costs. Go down and I'll show you what that looks like. So all this math added in there, keep going, keep going. The, uh, we're at a negative margin because of what the costs are, right? Negative margins, unless prices are higher or density is higher. Or build cost is lower. So technically, your deal with a 10-unit scenario shows that the cost to build is $5.5 million. We're at a 9.2, uh, percentage. That's attractive to a builder, okay? They like that. That's a margin they would like to be in. So, uh, ARV looks pretty sexy when you do it as that type of deal. Now let's figure out if it's going to comp at that. Let's talk to it for a minute. We're going to jump over to the next deal. I want to make sure that we have a good comp scenario, 12-unit townhomes built on this property is doable. What does the area look like for comps on a townhome that is about 1,000 square feet, 1,120 square feet? And tell me what the— if we build 12 of them at a build price of $160 a square foot, how much are we making? Show me the spreads on that. Send it. So while this is cooking, let's go, let's go talk to Katya about her deal. Because we were working this over the weekend. I know that that's going. Katia, do you feel like pulling yours up and sharing real quick?

Yes, I can do that.

Awesome. And then Amor, if you want to be ready next and we can jump to Laura or Blake after that. So Katia's deal, right? We had, we had a lot of activity last week. We'll do a rundown real quick of it. So we made an offer on this property and Katia found this deal on Deal Hunter. It's a, uh, it's an industrial space right now that had a lot of work done to it by previous, you know, previous interested parties where they did all the entitlement work to get it zoned, annexed, and approved for 300+ doors multifamily, right? That's what the advertising says. So we made our offer based on the advertising. We told them you get option A, no money down, option B. Some money down, no payments. So no money down, payments. Some money down, no payments. Which one do you want? They said neither. We want a different option. So Kathy and I looked at it and we're like, well, we're going to be raising capital for this. We know in our next set of capital stack, we're going to raise equity. What if we offered them equity? Because they did like the idea of getting money down and they liked the idea of getting 5% interest at the same time. So what they did was they took our our two options and combined them and said this is what we like. And we said no, no, no, can't do that, can't do that, can't do that. So we said what we can do is we redesigned the deal so they understood 'em again. We gave them the third option of equity and we said— Katia was brilliant enough to say what we would like to do is give you 7% instead of 5%. And instead of holding a note for two years hold equity for two years. Guaranteed payout. And they said no. They said no. Okay. And then what did we say? They said, they came back, they said no, but they came back and said, what we'll do is, because they wanted, they wanted $4 million down, $8 million note, 5% interest paid at the end. Yeah. We said, we said option B was $4 million down, no money, no money paid for, for 2 years. And it was going to be 0.5% interest. And we needed 9 months to close. And they were like, eh, we'll give you the 9 months, but we want 3.5% interest. And so Katia and I said, next. The reason why we said no was because this person's gonna be holding a note for us for 2 years. If they're gonna negotiate like this, we're probably gonna be struggling for the next 2 years with these people. Right. And then, so it's kind of like a difficult date. Like you go on a date with somebody and it's difficult to get through a conversation. There's a really good chance if it's difficult in the first 10 minutes of meeting somebody, It's probably going to be difficult after 10 years too, probably way more difficult. So it's better to walk away from the table than it is to sit there and continue to try to snort salt. So, uh, Katia responded gracefully and said, no, we're not interested. But if you change your mind, we would be interested in option C. We like that one the best. Our other options are pretty much no longer an option. And they responded, can we go back to option B now, please? Which was originally $4 million. Carrying a note for $8 million, 2 years, and a 0.5% interest. So now they want the deal we offered them back in the beginning. And here's the best part. Katia was brilliant enough to discover that they had a $9 million offer 6 years ago and canceled.

Yeah. $9 million was their highest offer ever.

Highest ever. We offered them how much?

$12 million.

Wow. So y'all went above that. Wow.

Yeah.

I can't believe that they're like calculating the interest.

I gave them, I gave them a significant increase to be a partner. And what they did was they, they, they acted like a, a socialized chimpanzee from the Brookfield Zoo, cocked out on their hand and threw it back in our face. And so that just makes me, I'm not interested no more. Like there's other, here's the thing I know, Katia found this. On accident, right? And so it was an accidental find. And, and one of the big things they threw at us was— and I love this, this is how you— this is really how you tick off a retired, you know, commercial certified investment manager like myself— is you tell me you have somebody else interested now after 6 years it's been sitting there doing nothing.

They had 3 LOIs submitted this past weekend.

Okay, all of a sudden, 48 hours, all of a sudden they become the most popular kid in school. So here's what I know. I don't try to dance, and unless it's a square dance, I don't try to have more than one partner, right? I mean, if we square dancing, we can do that, but, uh, if, if we ain't square dancing and we're trying to do a deal, it's just me and you. And if it ain't me and you, I'm gonna let you go do whatever with somebody else because I got other things to do. I want to find one person to dance though.

Well, and it goes back to negotiating models. You can be, you know, we're always looking for a win-win-win, but some people literally are like win-lose. Like if the other person isn't losing and they're not winning, they don't want to do it. And so again, okay, I respectfully decline.

Katya, let's show them the response that you put together here and how Deal Hunter helped you. Just go back up to the, the where you kind of like put in here. Let's see what it wrote for you.

Okay, this is here.

Let me find, let me find the, the first one that we discussed together, uh, was the response to basically saying no, we're not interested unless it's option C. And then down here it's countering the 3.5 pushback. So we can start with this one.

So explain how you did that. You wrote this one, right? And we described that You put in the information from his email in the deal owner and said, help me respond this correctly.

So then I also, based on our conversations together, I voice to the ChatGPT, to the Land Shark, and then we basically have a conversation and come up with the best one. So here we clarified that we want option B at 0.5%. And then I also kindly included that the highest prior offer was approximately $9 million. And we're presenting a $12 million structure with the additional upside depending on the path selected. And then I explained again, $4 million at closing, $8 million in rollover equity, 7% annual preferred return. And it's designed to meet and exceed the seller's return expectations while providing a strong overall outcome than a traditional note. So I think that— yeah, go for it.

Yeah, no, this is exactly what Deal Hunter does. So go through and just kind of touch on the points that it made after it gave you that email so that people can understand how this is a coach. This is the way a coach would deal with you and say, this is why it's important. It's giving you what's called rationale. In, in nursing, we were taught what's called related to— our diagnosis is related to something. And so the letter that you just wrote was that, um, here's the reason why this version is stronger is related to The letter you just wrote, this is where you're going to learn why it was good to be this way about it, right? It's better leverage, more authority. Keep going.

Cleaner leverage, more authority. The meet and exceed adds a little bit of subtle pressure.

Subtle pressure, right? And then ending is tighter, right? You're cleaning it up. So go down to where you got the next one because he did respond to that, right?

No, he hasn't responded to that one yet. This is another option that I wanted to explore. So if we were to push back, it's basically the same. Information just worded differently. So the seller is targeting something in the 3.5% range in option B. That starts to shift the structure into a place where option C becomes the more efficient path for both sides. And then it continues to explain how if he's pushing option B at 3.5%, might as well go with option C because it's so similar in numbers and structure.

And, and again, this is, this is how You can, and you can tweak the way you say something to somebody. I can apply pressure or I can apply, in this case, I'm going to use a word that many people get triggered by, but manipulation. I'm manipulating you to understanding why my idea is better by saying you're already open to a 2-year note. Why not take 2-year equity? Well, I'll tell you why, because a note stands a higher position than equity. So that's why he's getting a little frustrated with that, but that's okay. Like, we're, you know, I'm not, I'm not out to do a win-draw-win or win-draw-lose with anybody. And in this case right here, it's just a win for him, not for anybody else. And we have to move on from that. And so telling him we're not interested, we're moving on, forces him to eat his hat when it comes to the other 3 LOIs that are probably half of what we offered. And we know why it's down that low, right?

Why, why the offers are so low.

Right. We know why the offer on that property would be so low, right?

It's just because of the industrial. They're not thinking about the rezoning and the annexation, correct?

No, they probably are. They probably are. And again, because of all the work involved with that, there's no guarantee that it's going to be done. Even if they said there was a guarantee back 6 years ago. Again, what if the highest and best use now is a data center? Yeah, right. Pointless, useless. 6 years is a long time. If that guy was really interested in getting it done, he should have done it when he had all the documents and it would have added the value that, you know, commands a $9 million property. But right now it don't. It's 5.5 acres of industrial that's no longer able to be industrial because housing is right down the street. So anything you plan to build there industrial will be put down.

Yeah.

They will refuse to build it even though it's owned. It doesn't matter if it, if housing moved in down the street, you can't open a cement mixing plant there because of the pollution that's gonna get down there. Right. And they'll shut you down. So it's no longer valuable as industrial, only valuable as multifamily. So we had a plan, rent it out, cash flow it, and then bring it to, bring it to market once saturation has been adjusted because we already have so many multifamily. So this is a good deal. All right. Who's next? Blake or Amor? Okay, let's go. Let's see what Amor's got on the table. Thank you so much, Katya.

Okay. So I found this property in Michigan for a nonprofit. You want me to share my screen?

Yes, please.

Okay. So this property has been on the market, 17316, for 144 days. It's $414,000. So I was gonna run it as, uh, one, I feel like we could do some negotiation or something like that because it's been on the market for so long.

Okay. So when we got the address, all we need to do is put in 3 simple words, right?

Run this deal.

Run. What is the words, everybody?

Run this deal.

Running this deal. And so, um, while it's doing that, do you have a flyer or a property sheet on it already?

I just looked it up on Zillow.

Okay.

And so I got it first from Deal Hunter. I asked it for like, you know, properties over 90 days or whatever on the market, and it gave me this as one of them for a 5-bedroom, 2-bath.

Now, just as a bit of education, do you know that you can do that with your local title company agent, your title closing agent has the ability to go pull an amazing amount of data from the system. And you can, you can give it filters specifically to like off-market. Uh, what is the other one? The, where they just, uh, expired listings. That's one of the big ones everybody likes to use, expired listings.

Oh yeah.

Right. Because expired listings typically mean that they listed it too high and it couldn't sell. So what you do is you come in and you basically hit them with a shovel and tell them this is what we need. So, so looking at this, we've got the deal is, uh, pass at list for investor hold. So the, uh, is the information you see there sound, sound about right based on what you looked up? Is it accurate?

Oh yeah. Zillow only said $140K some days, but this says $198K. So that's interesting too. But even that it was at $120K and 2023, then $400,000. It's like a big jump. So maybe they redid it or something.

They might've done— well, what they did was probably— ready for this? They probably bought it at auction on May 12th, 2023, and then sold it close to a year later after a rehab of some substantial amount.

Wow, that was a nice jump up.

So what you've got here is based on hold assumptions, you'll have to look at these numbers. These are your metrics here. And so at a 30-year investor loan, Which is a— anybody know what that's called? DSCR. Okay. So if we look in at the DSCR rate, let's look at it, go down. It shows that it's under the 1.0 range, which means that you want to have a score of 1.2 on a DSCR, the debt service coverage ratio, meaning that you're 20% higher on your, on your rent than you are on your mortgage. The flip light value add looks like that.

And we give a—

this is Right. They've got it listed basically at market, right? Or even—

Yeah, because they updated it and all of that.

Right, right, right. So you're not going to like make money from it as a, as a flip at all. There's no spread. So the best fit is going to look like an owner-occupied retail house basically. Right. And so that's where a co-living situation, such as a nonprofit organization that needs 5 to 7 bedrooms. How many bedrooms was this one?

5 bedrooms.

Right. So you could do a 5-bedroom here with a, with that facility and probably see an increase in your opportunity, right?

Yeah. I like this. See if they blink off for $335,000.

Well, and again, here's the one thing that I was taught a long time ago, go for the no. Has anybody in here ever just gone for the no? Yep.

Used to play games around it.

Right. I mean, if you ever played Monopoly with me, I guarantee you're going to tell me no a lot. I start, I start, I start making deals the minute you buy a property. So like, I don't, I don't mess around in Monopoly. I'm making offers the entire time. I irritate people sometimes, don't I, Catherine?

So on that note, can I ask a question?

Yes.

So how do you navigate like the mental barrier of being pushy versus being persistent?

How bad does your wallet hurt?

Bad.

Then you're no longer pushy. You're persistent. Right? Right? You're not being rude. Like, God said be kind. He didn't say be nice. Jesus, Jesus wants you to be kind to people. So be kind. Can I have your money, please? Right?

Like, so he or she who is the most certain wins. So your certainty will determine, or your love or lack of certainty will determine your level of success.

And so on this deal right here, let's go through the go/no-go. So your go/no-go, go down, go/no-go shows right there. If you're buying it as a primary residence or you can get it well below listed, but it's a no-go if you want to do a BRRRR, it's a no-go if it's conventional, rental, stuff like that. Right. So let's, let's ask it to look at it as a 5-room co-living for a nonprofit. And do you know what kind of nonprofit it is?

Because this is, I think, Sober Living. Oxford House does a lot of sober living, but they also do homeless and stuff.

Right. So sober living is based on a fixed rate, typically paid by, by either subsidy or, or government. If it's a private pay, they typically increase and have a higher amount. So one of the things that you want to look at is there's a report on all 501(c)(3)s. And so that's, that's something I would encourage to, before you get too far in the weeds looking for property. For these companies is to make sure that they have a track record. Because a lot of companies, what they'll do is they'll utilize professionals to get them the cash and then dip out. And the professional's going, oh, what just happened? You know, the, the homeowners will then come after you because you were involved and it can become a huge mess. So this one's saying that this house is a 5-bed, 3,100 square foot, and It's saying group homes serve 6 or fewer residents. So it works that way.

So the price, they feel like it's not as good, right?

So right here it says it's weak at this price unless the program has subsidy donations or near market per bed revenue. Right. And so what that means is the per bed revenue. And you'll see here, right here, it shows low-end room pricing is often around $500 to $700. Then you've got some private shared furnished rooms from $1,000 to $1,200. In this area, small units rent around for $900 to $1,100. So, um, what you can do is you can skip past all the things that it's saying here and just tell it what it's for. Say this is for a sober living house that has some sort of, some sort of subsidy involved, because here you can see like what the breakdown looks like. On, you know, is the profit available there? Scroll up again. Let's see what, what it finished out saying about the other stuff, because it was just looking at it from a nonprofit 5-bed pro forma. Scroll up a little bit more, a little bit more. Let's see what it said as to the final outcomes of the other stuff right here. So it says the Shark Verdict at 4:14: This is not a strong profit nonprofit co-living acquisition unless the nonprofit already has up to subsidy. So like that's telling it and prompting it just as we did is the only way. It's the only way we'll get it to really do a full analysis. So run down to the bottom. Let's take a look at it. So the resident pays $700. So it's showing here that with an occupancy, it's only at 54 or 45, then 54, then 6. So the subsidy is recurring, not a one-off, is the goal. Gotta have 5 beds occupied consistently and consistently. Right. The peer recovery housing, not staff, staffing heavy residential treatment. So, right.

Okay.

So again, what it's going to do is it's going to try to make sure that you see every possible path. And like this, this thing right here is not letting you like convince it there's a path to, to, uh, to doing this. And sometimes people are like, GPT lies to you. Does this sound like it's trying to get rid of you?

This one is kind of like, this might be a no-go.

This is caca all over your deal-o-more. It is literally going, listen, burp.

No.

Right? Bangalow objections you'll hear. And it literally is telling you what the bank is going to tell you.

Also something that I've been doing is I prompt it ahead of time and I say, hey, I'm specifically looking for, say, office buildings that can be converted to multifamily. Give me the top 5 places where this could be best Feasible. And then I say, okay, don't give me all the details, all the numbers. Give me everything I need to decide if it's a good or bad investment. And then I go through it very efficiently. So that's a good tool.

Yeah, that's good. Okay, well, sounds like I need to keep looking, so I will let someone else go as I look at some of the other things.

Well, let's, let's do a little quick dig on, on it as far as like what it looks like to do what Katya just said. So if you want, pop open a new chat.

Oh wait, sorry.

Share your screen back. I'm going to give it a prompt and you already know the metros, right?

Yeah. Uh, Detroit metro area.

Right, right, right. Okay. So let me give it a prompt. Go ahead and start a new conversation with Deal Hunter, which by the way, in case nobody knows, in case nobody knows, I'm going to pull it up right now. Um, Deal Hunter turned 1 year old yesterday.

Oh, yay. Happy birthday. Happy birthday.

Deal Hunter is now officially over 1,000 1,000 conversations in a year.

Oh wow.

Is Deal Hunter throwing a party?

Yeah, we're doing it right now. Uh, you forgot, you forgot to make the cake, Katia. So, oh boy.

Oh, sorry.

Yeah.

Yeah.

Okay. You ready?

Let's see. All right. Yep. Ready, set. Okay. We are looking in the, we are looking in the metro area of Detroit and we need to find property that will allow for co-living for nonprofit sober living houses. It's not hearing me. Let me see. No, you're right. Let me try.

You don't have earbuds in, Amor, do you?

No. Uh-uh.

Okay. Okay. So you, no, no, no, use the little microphone. Nope.

Nope.

Nope. Nope. Yeah.

Try that.

Let me see if it'll hear me. Can it hear me? Is it hearing me now?

Sounds like it's hearing you.

It's definitely hearing you. So let me see. I'm going to keep talking and see that it rattles. It's not rattling the, it's not rattling the thing. How can I get it to rattle the thing? Hello? Hello? I'll talk louder. And does that work? No, it's either picked anything I set up. Hit the check mark.

Do you guys want me to do it on mine?

Oh yeah, no, it's not hearing you.

Yeah, let's— well, I wanted it to be on a more so she could run it later. So what we can do, because Katya has actually got some pretty good skills. Katya, let's pull your Deal Hunter up. Stop sharing for a minute or more and let's let Katya share.

And then Katya can turn around and share.

Katya can just send it to me.

And then Katya can send it to you. And so we're actually gonna be coming up with positions. We got, we got Laura coming in as transaction coordinator, and we're gonna have people that are helping out on the team from all angles. Like, um, we've got transaction coordinator, but we're also gonna have, you know, deal flow, excuse me, deal flow manager, sponsor, you know, sponsor coordinator, stuff like that. So go ahead and start a new conversation and we'll wait on this one that you had, Katya. We'll wait to find out what what, what our counterpart says there, Dallin. So go ahead and I'll create a prompt. We are searching for property in the Dallas, uh, I'm sorry, in the Detroit market of Michigan, outside of Detroit by 10 miles. We're specifically looking for 5+ bedroom houses that can be purchased at a submarket price in order to create sober living facilities for a nonprofit organization client. Uh, look, uh, at the off-market and on-market potentials and send us a list of 20 properties in the Detroit metro area that we can evaluate for this type of investment property. We also wanna make sure that we're looking at property 40% below or more below ARV. Do not show us anything that has a greater than 40% ARV. Ready to go. And it'll spin out. And based on what Katya's, um, Katya's, uh, deal owner's going to find, we can copy and paste that entire prompt and send it to Amor and let Amor do it from her computer and see what the differences are. So Katya, would you mind copying your current prompt, dropping it in the, into the chat, and I'll let Amor copy it and run it from hers. And then what we'll do is we'll run a side-by-side comparison. I need to go upstairs and get me a protein shake.

Do you want a vanilla one or a chocolate one?

I like, I'll go up and get it.

No, I'll go. You need to be here.

You can talk a little bit. They like hearing you better than me. I'll be right back.

Okay, Amor, it's copied into the chat.

Okay, I'm playing it. Amor, thank you.

Amor is not too loud today, people.

So here's the other thing we're doing, you guys, is we're doing, we're trying to do KPIs on all of this and I'm trying to figure it out. If you can do me a favor and are you, your Zoom is only on your phone, not your computer. My thought is that if we have everybody send us their chats, then we can pull the chat and pull the chat in turn that into KPIs for each deal that we're tracking is my thought. And I was thinking Blake, more importantly, actually I'd love Blake to do this because Blake is in a statistics course. So fun. Like, if you're open to this, I would love to work with you to have everybody send the chats of the deals that are run every single day. Over to you and then we can create a KPI sheet for doing the stats and analytics, creating those KPIs for all the deals that are run. And if it's a go, no-go, like all of it, because over time we actually want to track how many deals we've actually analyzed. So I don't know if you're driving right now on your way to your job, if you can talk.

Yeah, no, I'm still here. I'm listening to all of it. I'm just about to leave actually for my statistics class right now. I know that all sounds great, so I'm all for that.

Okay. I'd love to talk to you about giving you access to all the, even the previous Zooms, because if Deal Hunter has been like, it's one year anniversary or birthday, whatever. And we, we actually literally can go back through all the Zooms and grab the scripts from all of that. We, we can have some pretty cool stats inside of how many deals have actually been run. Through Deal Hunter along with like all the numbers and go, no-go, because people need to have accurate thinking inside of how many deals that they, that they analyze, how many LOIs that get placed, and then how many deals that actually get done. Like there's actual statistics to this and we can be doing a whole Deal Hunter analytics statistics so that people have accurate thinking like, Well, oh, I looked at 3 and I didn't get any.

Wah!

No, no, no. 3,000. Whittle it down to 10 and get 1. Like, I don't know what those numbers are, but if we can, Blake, if you and I could have some fun around that, I think we could create some cool KPI tracking systems. I'm just sitting here thinking this through. So Blake, think about it. And you and I are going to noodle on this and use Claude and ChatGPT to create all this.

Sounds like a lot of fun.

Your statistics class, how cool would that be to go back and show your teacher? Oh, by the way, here's how I've been actually applying what we've been learning in this actual class. Oh, you already know.

My TA.

Yeah.

But he needed the credit.

So noodle on it, Blake. And then let me know when you're available and we're going to have some fun with this. Perfect.

I will send you a message after the call later once my class is completed about this. But it sounds like a lot of fun.

You're the best. I love it. Somebody who, like, thinks analytics and statistics are fun. Yes.

It's like the perfect who, not how. Like, if you asked me to run this, I'd be like, this is my worst.

Right.

But Blake is like, he loves statistics. This would be fun. He's the perfect one. To help me build out all the KPI tracking.

Okay, so looking at this deal, it came back, it talked, it thought for 4 minutes and 41 seconds. What did it, what did it provide us, Katya?

We're just taking a look now. We didn't dive into it yet, but it gives you a list of the 10 on-market, I think, yeah, on-market leads, and then the best 10 off-market leads to explore. And then it says a clean shortlist I would underwrite first, and then it gives you the addresses. So you can literally go check out this address, find it on here, and then see the quick statistics and decide if you want to pursue it or not.

Right, right, right.

Yeah, mine is still thinking.

So, so based on this, what it's showing is that it's asking, it's letting, it's giving us asking prices. If you start, it shows this one, it's a 6-bedroom, 2-bath with 2,000 square foot. That sounds really small, right? 6-bedroom, but they want $44,000. They're saying ask $44,000. If you click on the Redfin +1 right there, Katya, we'll see what it actually produces. It's on Redfin.

Oh gosh.

Oh boy.

So that is a total house that needs a lot of work.

Usually these have what are called good bones, like looking at it and it's rough on the outside, but on technical terms, it could be built out. And, and it's got what's called good bones, good understructure, good, good top structure. You might be able to do something, but these are old boarding houses in Detroit or, you know, were big family houses because back then when this house was built, it was 1951. They were still building cars in Detroit. And when they were building those cars in Detroit, they had large families, you know? So, but go ahead and go back to your list. Your next one is right there. Probably looks the same as the last one, strongly distressed based display saying that there's a comp, same block, for $177,000. So, oh look, this one's got good bones to it too. It's made of brick, right? Yeah, that one is. Yeah, it's got 8 beds, 3,944 square feet.

Well, that's pretty big.

Wow. Go through, scan through the 18 photos, you'll see a little bit more why this is dirt cheap. See all 18 photos? There you go.

Oh, inside it's completely—

oh yeah.

But like you said, the foundation is there.

And so you're just going to go in here and gut it. It's already half gutted and put new things back to it. Now, this is where you would download these pictures, take them to Free Estimates and tell it, tell it to do a free estimate.

Give me an estimate for that. Okay. Yes, definitely.

Yeah. Yeah. And then you're able to see some good numbers real fast.

Do you want me to do that?

Are you able to save those?

If I screenshot a couple. And then put the screenshots in? Does that work as well?

Yeah, go ahead and do that. I'm, I'm sure it'll work. So let's do, let's do a handful of screenshots. Make sure there's 3.

Yeah, we'll see what it says.

Make sure there's 3 photos in each one. Go, go ahead and go to the very top, like it showed the big picture right there, right there, like that. Screenshot that. Okay, get, get all, all those. Now do that one right there with the stairs and that. Screenshot that. Okay, I'd do that one too.

Yeah, these are Yep.

Yep. Do those. Do those. That's all of them, right? All right. Now hop back over to your, your GPT and explore your GPTs. You're going to go to free estimates. Type in free estimates. And it's going to be that one right there. Start chat and you're just going to drop the picture straight in there. And then if you have the zip code, it's good to have the zip code or even the address to the property.

I can't tell if those are it. Here, let me do it this way. Hey, and then should I just copy and paste the link?

Oh no, just copy and paste the address. Whoops.

I'm so sorry, guys. Give me one second. Where is it? Yes.

And then you're going to tell it to give you, give you an estimate. We need, we need a battery on that one over there. It's about to die.

That's it. Give me an estimate. Or do you want to prompt it?

Nope. That's it. We'll see how smart this is. And this is going to, this is going to show you how smart the estimator is for our Deal Hunter program. And I've had a lot of people, oh, my GPT does the same thing. No, it don't. I go to ChatGPT, tell it to give me an estimate. It gives the wrong numbers because you put— you didn't do it right. I don't know why people think that they have no responsibility to what goes into GPT. If you put the wrong shit in, you're going to get the wrong shit out. So, and you can see here, this is, this is, uh, uh, going through and doing a, a much more detailed, uh, understanding of the pictures, the address, and the words provided because of what we built into it. Free Estimates is not just a, a GPT that does free estimates. It's got a 30-year knowledge base of how to do free estimates, of how to do estimates on property. So, and this one being an 8-bedroom like that or more, like, and at that price, at that price, you got a lot of room to do stuff. Yeah. Even if you're charging $1,000, if you did $1,000 a month on 8 rooms, that's $8,000 a month. But the other, the other downside to this is that it might be too close to the city. So these are things we got to look at too.

Yeah. And mine, what's weird is, so this was good that we both did it because, so I'm going to dig into these a little bit this afternoon, but mine actually did give me like suburban ones. So that was so interesting that we both put in the same thing, same prompt, but different results.

And you know why this happens this way? It's because your Deal Hunter is based on your personality. Because I've been, uh, yeah, yeah, yeah, and that's why I said Katya needs to do it because Katya has been doing Deal Hunter now for I don't know how long. Your boyfriend been mad at you like about, about a couple, and I think also I've been asking it for suburban ones all along.

Like, those are the only ones I've been like, suburban, this suburban, this. And so I think it's like, oh, okay, so she must be looking more just suburbans, correct?

That's it, that's the, that's the direction it goes. So this is almost a 4,000 square foot building, right? So it's going to go through, and it shows that the building dates back to 1924. So this is a historical building, 100 years old. Yeah, right, it's already 100 years old. So, and it says that, uh, a licensed contractor plus structural engineer should review everything. So let's go through it and take a look at it. So it says here for benchmarking current published renovation ranges are adjusted to the photos you showed, right? So based on that, it's going to go through and it's going to provide us with costs going into assuming that we're going to do likely 4 units, 4 baths, 4 kitchens, rebuilt and substantially replaced, right? And that's what it's going to base the projected costs on. So let's go through this real quick. Got you. Shows pre-construction soft costs, are in the range of $22,000. Site costs around $17,000. Demolitions around $38,000. You got $58,000 structural framing, $50,000 in roofing, and $30,000 in windows, $60,000 electrical, $48,000 in plumbing, $45,000 in HVAC, $12,000 insulation, $42,000 drywall, $12,000 in trim and doors, $54,000 kitchen, $42,000 bath, $22,000 flooring, $16,000 paint and finish, fixture and appliances $17,000, with a total grand total of $592,000 to do the repairs.

Wow, right?

So you're looking at a working budget of almost $625,000, and that is about $158 per foot, which is what I said earlier, right? Who heard me say $160? And I didn't tell it, I didn't tell it. It just went there and figured it out. Why? Because that's how my brain works. That's how this brain works. But this brain is also connected to Katya's brain, right? So it's going to look at it from Katya's point of view, and it's going to give her some hiring tips. It's going to tell her, listen, you're not Tommy D, so you're going to have to do the following.

This is good.

Okay, so let's go look real quick over at, uh, Morrison. Laura, do you have anything you want to look at today?

I can't hear Laura.

She's muted. She's muted because we're all sitting in the same space. She's literally right there. She's so cool. Yeah, she can walk right here. Watch. So we don't want the echoing happening.

Got it, got it, got it, got it. And you can punch Tommy.

Okay, I'm available for the— available for the—

Laura, so this is great. Wherever he misbehaves, then Amor, can somebody shut off Amor's mic, please?

No, we're gonna have more buy-up.

Mute Amor's mic, please. Thank you. Blake, your hair looks great.

I love your hair, Blake. It's so inspiring.

So, all right. So anyway, uh, Amor, will you pull up what, what yours prompted so that we can take a look at that one?

Yes, yes, yes. Let's see here. There we go.

And there's oftentimes a subsidy for those houses. So that one that you showed us, Katia, would probably have a subsidy from the city. So it showed here 20 properties to evaluate because you use the same prompt. So it's showing here that it's outside of the area in Highland Park, Michigan. It's not in Detroit. It doesn't have the Detroit thing attached to it. So what they're asking again— and ready? They're asking $49,900. Go look at that one. I want to see what that one looks like because I'm almost—

the $49,000 here?

Yeah, that one right there. Let's go look at it. Go to Zillow. And click on that one and let's see, just see what it looks like. Oh, look at this, this ain't like—

it's not ugly. Cute house.

Oh, that's not bad.

It's not ugly. It's little.

So yeah, it only has 1.5 bathrooms.

1,300 square foot of living space for how many beds?

Small. 5 bedroom. That's such— probably such small bedrooms.

I had, I had a bedroom one time that was 1,300 square feet.

Yeah, I think my closet should be 1,300 square feet for my shoes, purses, and scarves.

So yeah, that's so— that is so, so small, little, right?

Like, it's a spacious room. What?

According to who, Amal?

So it's got a basement where you can put the— he puts the lotion on the skin.

Oh God, don't go there.

So that's what that one is.

Tommy, what are you talking about?

Silence of the Lambs.

He puts the lotion on the skin.

So scary.

Oh God, thank you.

Buffalo Bill. Buffalo Bob. I don't remember. All right, go ahead and get out of that one.

Yeah, that— it's so little, it's crazy.

And what we'll do is let's look at something else. Here's some off-market Let's pick on that one right there in Hamtrack, number 7.

Okay, number 7. I don't even know what Hamtrack— never even heard of this place. That's a cute little place.

That's what they call a Cape Cod. That's a Cape Cod.

Oh yeah, it's probably $1,300 too.

Oh yeah, but look what's right next to it on both sides. Bigger houses, I bet you.

I know.

So check this.

It says this is a multi-family, multi-family home.

Yeah, and look how long it's been on Zillow, dude. Ready? Go look at it. It says off market.

I think it said off market, but it's a 3-bedroom and a 2-bedroom, but of course it doesn't show any pictures.

So the 3-bedroom, 3 bedrooms down on the first floor, 2 bedrooms on the second floor.

Oh, look at those multi-families next to it though.

So right here is first floor. This is first floor, bedroom, bedroom, kitchen, bath.

Second floor is 10 feet by 6 6 feet bedroom.

Yep.

Look at this one, 7 by not like 10. That's so exciting.

And they both got walk-in closets, so you could probably put your bed in the walk-in closet and then have—

oh my goodness, it's so little.

It's so room— bedroom, but there's no kitchen. Like on that third floor, on the third floor there's no kitchen. There's no kitchen. You can sleep, but there's no eating.

You can eat.

No eating on that floor.

You could if you want.

Go to the bathroom, maybe.

Maybe could do a kitchen right here. They're not going to label it a kitchen because again, they would have to, they would have to zone it for that and get all that crap done.

I have a whole lot of opinions, but anyway.

Oh my goodness. Yeah, that's a no too. Look at that bedroom right there. It's so tiny.

So, and then in this situation here, you go in and you just gut everything that's not a supporting load-bearing wall and redo the floor plan because that That's all it is. Again, go look at the map though on that one. I'd be interested to see what's next door on the right and left side. So if you pull that address on this one, yeah, go pull that into Maps and let's take a look at it.

It's meant for Google Maps or what?

Yeah, yeah, Google Maps.

Like, it definitely has things beside it. Oh, but this looks different now.

Is that the same? I don't think that's the same.

Maybe not. Wait a minute.

Let me go back.

Was it one?

No. There it is right there. It says ham, ham, ham, ham, whatever.

Let me just make sure. Yeah, number 7. Yeah. Okay. I'm like, wait a minute.

Yeah. Go pop open the silhouette again. Let's make sure.

Looks a little different.

Uh, it was the third one over.

That's the first one. Let me click on it again here. It's a little— because it was number 7. Yeah, that's it.

Okay, so it looks like that. And then where's the 113.

Oh, this is 113. Let's see, I think it was 99. It's like— took me too long. Let's see, is that it? Yeah, maybe these are the bigger ones that are all on the street, right?

So if you demo that Cape Cod and build something bigger, then yeah, you're increasing your, your stuff. It's behind that tree.

Yeah, it's right behind there. That's— we can't see it, but this was the big building that we saw on the side of it.

We'll let you drive down the road a little bit.

Oh, there it is.

Now turn back at it. There you go. Yep, right there. So that's, that's the thing. You could literally go in there and scrape that and build something just like right next door.

Yeah, like, it looks almost looks like fourplexes.

There are. So there's, there's the two, there's one up there, stairs, and then one in the back straight behind in the back. Yep.

That would actually give them more than a matchbox size.

Yep.

Because that is like, it is even back, like you can tell, like this is back on the street.

Well, it has a driveway, right? So the other ones eliminated their driveway and said, you know, this is what we want. So yeah, that's a possibility. You'd have to scrape the dirt and do it over. So yeah. All right, Blake, have a good class.

All right. I got to hop to a meeting. I'm going to work on some more of these then from what I found.

Absolutely. All right. And so what we'll do is we'll, we'll jump into doing some more. Yeah, let's do that. Let's look at the OZ deal there.

And then we've got, it looks like Kasha. Is it Kasha or Keisha? Keisha. I don't, I'm, I apologize if I'm pronouncing your name wrong, but we'd love to talk to you and see your beautiful face and learn more about what you're focused on so that we can assist you and coach you on adding commas to your bank account. There she is. Hello. Hello, everybody.

I wasn't feeling 100%, so that's why I wasn't on camera.

Still beautiful.

Oh, no makeup on. So, um, this is Takesha. This is the— her and I had lunch together a couple weeks ago.

Perfect.

Um, so she's working on some cool things. She's got a cool nonprofit. Anyway, so cool stuff. So she's here, you know, beginner kindergarten learning about all the things and wine dance and streams of income. So, uh, we'll jump in with Laura and then, um, Keisha will jump in with you and learn about all the things. Cause I think if Tommy hears about some of the things you're working on, his brain will noodle on and help expand all the things. That's part of his genius.

Get her to also utilize Deal Hunter where my noodle always Lives like—

so AI Noodle.

AI Noodle is right over there.

It just hit share screen.

Yeah, do you share, share your screen? Can you share your screen? Let's do that. Top 20 opportunities, own deals, and watch. So Tier A, Tier B, Tier C, what was it giving you as the criteria for the tiers? So, uh, it says here that Tier A is best large ticket OZ target. Okay. And then B is what? B is, um, and there's the best middle market OZs, which are 1.5 to 4.5. Under the 1.5, right? And then I keep down the— I can only do one of these deals, which is the fastest. Okay. Thought about for 24 seconds and said that the Crescent Building in Spokane is the residential conversion or downtown office investment opportunity. Currently listed at $4.5— basically $5.5 million. Roughly has 253,000 square foot included in the sale across floors 2 through 7 plus lower level. So let's, let's go take a peek at that real quick. Cause what would I want to double-check and make sure that it's— it says here's the one big caveat. Washington is in the middle of the OZ 2.0 redesignation. And so new zones take effect January 1st. So the bottom line is, and it says right there, that the best OZ deal in right there is because it's got the biggest gap between price and redevelopment optionality, explicit conversion story, strongest OZ style business plan of the group. So if you pick on JLL's, that one right there, it'll, uh, it'll give us some information. It says this is the Crescent Builder. So based on what it's saying there, they've got Um, space available for lease. So this is where it's borderline, like it's in the opportunity zone space, but go ahead and go through this real quick. This is one of the concerns that I have with this. Yeah, yeah. Go, go, go through it and let's take a look. So it says right here, slow up for a second. It says right here that the Crescent Building has first floor retail space that's excluded from this offering and remains under separate ownership. It's got a historical landmark that provides investors with flexible options for residential conversions, such as 90 units for residential or continued office use for Spokane's thriving central business district, complete with OZ benefits and potential historic tax credit. So here's what I want to do. Let's go back to your list and use this, this deal, because here's what my concern lies. You'll see it in a little bit. So right there, let's have a conversation with it. I'll scoot over here so it can hear me. We want to look at this this property as a possible Opportunity Zone development and/or a QOZB or QOZBP. Give us the scenarios with this building or disqualify it based on regulations.

Yeah, the internet here is glitchy.

And so one of the regulations that goes into Opportunity Zone developments is that it has to meet what's called the 49.51% rule for Substantial improvements, 51% of the investment needs to go into substantial improvements of the property, no matter what. So looking at this, if this property doesn't meet that criteria, it falls out of compliance. And so it, it goes back to the fact that all of these realtors, just because it's in the OZ designation, they're like, oh, this is OZ property. They have no clue what rules are. And so it would be really nice if they had the clue. And the rules, and they could know, hey, this is not an option because of XYZ, right? And so we've got our results up now. Let's take a look at it. Now what I'm going to do is I'm also going to come over here and reference the book that Catherine wrote—

that you wrote. I simply got a name in it.

Whatever. Like, keep saying that and then nobody will buy it. I'm nobody, right? So let me, let me say how— oh, it's all about me and I wrote it and see how many people jump on it. Guaranteed the metrics are going to show that if you said you wrote it, they're going to buy it from you. It's not me. So again, the rules are all in here.

I don't even know this guy, but Catherine, wow. I'm just kidding.

Oh my gosh. That's this. Um, it says here, this building is not disqualified on its face, right? And appears to be a credible OZ candidate, but only under certain structures, uh, if the facts line up. So let's look at it. It's offering saying that it could be come a 90-unit residential conversion plan. Okay. The right way to think about it, the building can still work as an OZ deal. Why? And it is much less likely to work as a passive buy-and-hold building deal. So in this, we would have the QOF buy it as a QOZB and then use the QOZBP restructuring redevelopment structure. Okay. Or have a direct QOF ownership of the QOZBP. P, uh, if the project is simple enough and the fund can also satisfy the 90% test directly, meaning 90% of their assets are in Opportunity Zones. So it says right here, I would not disqualify it today. I would classify it as a QOF interest in the low-tier QOZB business, and then there's a possibility that the building works up to a QOZB-P. Okay, so the property is being sold as Floors 2 through 7 plus lower level, not the whole tower. And the first floor retail is excluded. So this is all important. Let's see what it says further down. It would want to do the, uh, uh, residential conversion. That's the strongest scenario. And here's why. It says the QOZB would need to satisfy the normal operating tests, including the 70% tangible property test. You got to have 70% of your property Uh, and it has to be, uh, 70% of your assets in the QOF have to be tangible property and be in an active trader business requirement of 50% of its gross income, uh, coming from QOZ businesses. So the path gets stronger if the upper floors are materially underused or vacant. The conversion budget is large enough to clear— clearly exceed the building basis within the required period. And then the finished asset must operate through an active business model rather than a treated as a passive land bank. Scenario 2 says to go QOF directly, acquires and improves the building as a QOZBP, Qualified Opportunity Zone Business Property. That's what that stands for. And that the fund itself has to stay clean of, of it on its 90% asset test, meaning that, um, that, uh, that any property held in the, in the business, in the QOF stuff has to be in opportunity zone area. Only 10% can lie outside of it. Right.

So, so wait, so just so I'm clear. So part of a property could actually be in an opportunity zone and part of it could actually be out?

No, part of your assets of the opportunity zone fund. So if your opportunity zone fund is historical property in Michigan, got it. This property's in there. Right.

Okay.

But if you owned it, if you owned a property that's not an opportunity zone area in the fund, it cannot be more than 10% of the total AUM.

Got it.

Okay.

Okay.

And so this doesn't necessarily fall outside of that because it's in there. So it's just saying to keep that in mind. And then the original use argument is that it was originally used for office space. And it says here, if it was vacant for uninterrupted period of 3 years after the tract was designated, uh, or began to be vacant at least 1 year before the tract was designated, And remained that way through the purchase, then this could qualify and what we would, we could reuse it as an office building again, but because it was an office building before and we try to do it this way, it won't work. Got it. Right. So don't rely on that as the option. And then you go to scenario 4 and this is, it says the most realistic compliancy route in that what we're doing is that, uh, we've got a basis allocation cost that we have to exceed by 51% when it comes to to the substantial improvement clauses. Okay, so the substantial improvement test is about building basis, not the land. So if the building was more than 40, 40, you know, 51, 49% of the total price, then it doesn't fit, right? An example I like to give people is like, if, uh, if an apartment building or a hotel was in a, uh, if a hotel was in a Opportunity Zone and we decided to go buy it for, for $5 million and then only did $2 million worth of work to it to make it a multifamily, that would disqualify it.

Got it.

But if we went in and bought it for $2 million and put $5 million into it without— then it qualifies. Now it qualifies.

Got it.

Right. So go to scenario 5, and this is where it's mixed-use operating business structure. So, um, because the first floor is excluded, that's okay, but what we would end up with is we would end up in a way where we could put the, put the living and office back in there combined. And it would be kind of like a new, new procedure. And then the history tax, historic tax credits plus OZ provide a good amount of, of opportunities. Well, historical tax credits, I mean, they're all right, but if you're not using it for a museum, they don't count for nothing. Right? Because if you're not doing exactly as they want you to, then it don't, it don't qualify. So that, that's going to be difficult. So it says, um, that the Crescent Opportunity Zone redevelopment disqualifies if it is not actually in the current effective OZ tract at closing, the rehab budget cannot clear the substantial improvement, or you cannot prove a qualifying vacancy history. But still try to do the original use. The business plan is not— is mostly passive hold with minor improvements. The lower tier entity cannot meet QOZ business operating tests, meaning that 70% tangible property rule, 50% income sourcing, etc. So going through this, that property where it sets, uh, has the potential, but there's a lot of complicated work that goes into proving that it has the ability to become what it would become.

So just to prove it, not even to do it, right?

Like, this is another layer of due diligence. This is why we built the OZ Wizard 2.0, right? Is because with the, the use of OZ, of Deal Hunter alone, it does— there's too much involved when we look at it, uh, from that angle. So I don't know. Do I like to work with my GPT in bits and pieces? Like, I don't like to give it— so I know it's a large language model. LLM is what they call it. I know that it's a large language model, but I like to teach it slowly. I like to give it little bits. That's why when I tell it, here's a property, run this deal, right? Oh, I love that. Look at that. For human follow-through on structuring and document review, the next practical step is to run the acquisitions doc, basis model, and CapEx schedule through your counsel or tax CPA. Then pressure test the OZ/QOZB design at ozwizard.ai. How about that? Right? So it'll, it'll tell you to go take this over there and have a conversation with it. And, and like, so maybe we do that. Laurie, do you mind copying that real quick? Just hit the copy button right there.

See the little squares?

And then click on the ozwizard.ai. If it'll let you.

You have to open it up in a new. Oh. Don't copy it because you'll lose the other. So open up a new tab.

And just do the chat, uh, option right there and then paste that right there. And so let it think for a little bit. So this is our AI for Opportunity Zone Wizard. And, um, wow, it's giving you a lot of cool stuff. I've not seen this work yet. So let's go through this real quick. I appreciate you laying out the analysis carefully. You've done serious work here. The building isn't disqualified, but I'd separate your reasoning into two layers: where you are solid, where I'd pump the brakes. What I do next Next, keep going. Engage a local real estate professional, run preliminary hard costs. Those 3 steps tell you whether you're really viable or whether it's a nice property that just doesn't work under OZ rules. And they're steps you take before you negotiate hard. The rest, HTC coordination, QOZB operating tests, phased entity structure, those are real, but they're secondary. They matter only if the foundation holds. Interesting. So, um, the, the fact that like earlier Katya's description and, and Amor's description like differed, right? Um, was very, very telling of how AI works. And this is another example of how AI works. This is a program called Delphi that I reprogrammed for knowing everything about opportunity zones. And it, and here it shows, uh, you know, the details. It says right here to get a defensible purchase price allocation between land and depreciable building basis for the acquired floors. So, and, and again, I think it's confusing to this extent that it says that it's for lease in the listing. So it kind of doesn't, uh, doesn't pull the full value for it. But do you see how using the OZ Wizard on GPT versus using the OZ Wizard on AI, it gives— using them in in combination with each other gives you a greater advantage of understanding what you can and can't do and how to move forward.

Yeah, it's bringing more AIs to the table, more team members to see all the things.

Well, the other interesting factor is that, like, we just talked about this last week, but Laura found an ad where somebody's trying to convert office to residential, right? Right. And in the Spokane market, that's probably a needed thing, right? Right. So We could go back or if you want to go back, are they short housing up there? That's why I know, go, go back to chat. Yeah. And then in here, hit that button right there. I want to look at this opportunity as, um, the 90-unit, um, luxury housing, luxury multifamily, converting the office building into a multifamily, uh, is seems to be a better target route. And so. What does the current market look like in this area for housing? And give me the over-under on saturation and absorption rates. And so, yeah, something that, as this is pulling up, something that we realized this weekend talking to people, like I should, we showed them this book and how many, like, people were like, oh my God, they were grabbing it. They didn't want to give it back. They took pictures with it.

They thought that They were like, thanks.

Thanks.

I don't know. I don't know.

Give it back.

Go get your own. It's one of one, not yours. Give it back. And what we did was we encouraged them to go check out the stuff, right?

That was funny.

Yeah. Yeah. So we encouraged them to go, definitely go buy it and figure it out. But the other part of that is, is that nobody else has done it yet. Nobody else is doing it, right?

Well, yeah. And I think it's the like, well, here's the what do you call it? I don't know if it's the deontological clock. Like, here's this like roughneck redneck cowboy walking in with his, you know, his pants tucked into his boots, and he's like, oh yeah, I wrote this. Oh yeah, I did this. Oh yeah. And people are like, wait, what?

What? But again, I wasn't saying I wrote it. I said you wrote it the whole time we were there.

And I still think it was messing with them because I had never been in that space before.

Right. So who am I?

Like, it wasn't, none of them was fitting their picture.

Well, and I, I understand how you see it and it was like, who am I? That's the, that's what we call the, the, uh, uh, self-saboteur, right? Is that we always look at ourselves and go, who am I to be blah, blah, blah. We don't ever really look at what somebody else sees and discover that they see us different than we see ourselves. Right. And it isn't often until somebody like, uh, comes to us and says what what they really think and feel. Example is, when I was a nurse, I wrote an article about recruiting and retaining more men in nursing. And I did so by outlining the fact that in the movie The Fockers, they said that a male nurse was not smart enough to become a doctor. That was one of the lines in the movie The Fockers, Meet the Fockers, was De Niro says to Stiller, what's the matter? You weren't smart enough to get into medical school? And so there was a significant understanding by society that nurses, period, were underlings to doctors when in reality they're the other way. And we're, they don't work for doctors, they work with doctors in a different modality. Like, so I tried to educate people about that and literally went to the National Nurses Association with what's called an article. And I just, and I went up there and I said, we would like to recognize that men are a minority in nursing and then turn it around. We gotta do X, Y, Z. Male, and I, and I talked to this guy in the lobby for about 2 hours, and he just went like, smile, like literally smiling the whole time, just answering questions, and I'm responding and everything. He stood up in the middle, right, right as I presented it, stood up and fed back to me everything I said, but in his twisted, perverted way of thinking, and had it to where like the entire room hated my idea. And they called me a racist, a bigot, a militant. He used all my words against me to build a case against me for trying to get this passed because he truly stood on the other side, which was that men don't need any recognition in nursing and that we need to focus on getting, you know, something else done. I don't wanna get into what he wanted to do. Wow.

Alterior motives.

Yeah. It was hugely bureaucratic BS. Caught him stealing from the place 2 years later. Long story short, uh, money— you don't know what people think until they tell you, right? Right. And so when we're talking to people, people see me and they think truck driver, but then I talk and then they discover I have a degree in psychology, degree in nursing, I'm a science major, I'm all these things. They're like, how is that possible? Right? Because they're, they're, they're judging a book by the COVID Right. They're judging a book by the COVID Right. Right. This— I look like a blank, a black sheet of paper on the outside of the book, but I'm not thick.

Right.

Right. And you know this because you've been around long enough to know that I am this thick personally. But when you look at me on the outside, I'm definitely not what you see on the inside. Right. So don't judge me based on the way I look because you will mess up. And I do that intentionally. And I know it's probably not fair, but I don't care. I didn't tell you to be judgmental. You did, right? So in your case, people see you based on the way you look, and they already assume you're smart, educated, well-carried, all the things opposite of me, right? So when I tell people you wrote this book and they see the name Dr. Catherine Bell right on the COVID duh, of course you did. And you did. You, you were the reason this book was written, and you, you, you were the, the— not just an inspiration to it, but there's an entire section in every chapter called— who can, who can, who can guess what it's called? And Laura, guess what it comes— Catherine's thoughts from on top, on top of the tuffet. No, no, it is the who that knows how. Okay, every chapter ends with a the who that knows how, and the who that knows how is Catherine's favorite saying because again, she didn't want to go out and learn everything about this. She wanted to find the experts that knew it and bring them on her team, recruit them. She wanted to start the band again, right?

But there will be no police chases. There will be lots of dancing and music, right?

And so Batman, Batman doing Batman doing cartwheels down the middle of the church, right?

Yeah, that was really hard to believe. Like, I was like, can somebody that big really— anyway, that's a whole squirrel.

Anyway, so right here, what it said, after a minute and 2 seconds of thinking, it says for the 90-unit multifamily conversion, that the breakdown in the housing market looks supportive but not forgiving. So it's not saturated today, but it can become soft at the top. And if you're overpriced in the product or delivery of the mini wave of downtown units. So it's currently showing a tracking of about 3,000 housing units, 92% residential occupancy with 164 units under construction, 454 units planned. So that gives it a downtown report of 31% vacant office space, right? So that's vacant office space that possibly could be converted, right? Apartments.com shows an average cost of about $1,000 for studios, $1,100 for one bedrooms and $1,400 for twos. And that downtown Spokane is higher, with an average neighborhood rent around $1,300. And that luxury comps are clearly above that. Like, at the Boxcar is showing studios for about $1,184, one bedrooms at $1,500. So the M Apartments are between $1,300 and $2,300. Kendall Yard luxuries are $1,800 to $2,200. So if you go down a little bit more, you'll see that Spokane city population is under 230,000. Uh, it's at 230,000. So in Spokane, we would call that a Class B, B as in boy, or even Class C because class, class is based on numerous things and we can get into that. But Class C, Class B property usually means that it's under a certain amount of people in that population. So, um, if you look at it, the saturation view is therefore low to moderate today, but moderate by delivery. And then your saturation over-under is that it shows that you're, you're 55-45 in favor of not yet saturated, but it can feel saturated at the luxury tier if the multiple projects that hit together adjust your rate and pressure you too high to go too high. So your downtown occupancy rate is at 92.7%, which is solid but not tight enough to assume that the, uh, that there would be a blowout lease-up. So your best case scenario, your base case is that it takes 7 to 10, uh, you get 7 to 10 net leases a month, but your soft case is closer, uh, to 4 to 6 per month. And then that implies that it would take you anywhere between baby-making time to long enough to get divorced. So 9 months to 20 months to get leased up. 3 years, right? Almost 2 and a half, you're, you're, you're stabilized. That's not bad, right? So looking at it, you could probably get priced up, leased up for that. They wanted $5.5 million for the property. And again, leases, right? And how, how would you see structuring these leases? Anybody got an idea of how they would structure out the leases on something like that. It's called a master lease agreement, an MLA. Write that down, do the homework on it, because in the master lease agreement, what we have is we have the ability to go back and sublease. So we would want to have an agreement with this, with this company. If it said— I'm— see, now I'm confused again. It says 5.5. So what's the 5.5 based on if they're leasing it? My brain's kind of tricky right there. So If it's a $5.5 million lease, it's got to have terms to that lease. Like, is it 10 years? Is it 50 years? What is that lease term so that we can get a better, better understanding of that? All right. So that was a good, that was a good deal though. That was a good deal. I want to jump over now, back over to this one if I can. And let's open up the chat. I had a chat going.

Great. Wait, where did the Zoom go? Oh, there it is.

So Dallin responded during our podcast and then all of a sudden he's like, you know what, actually the seller's very interested in option C. So we're going to take a look at it and get back to you.

I got to take a lap. I got to take a lap. Ah, motherfucker.

So here's what I love about this. Again, it's the So again, it's just, yeah, making it other people's ideas, always a fascinating, we call it Jedi mind tricks. So yeah, that's hilarious.

There was, there was 3 LOIs and all of them were under $4 million guaranteed. So yeah, and that's perfect. Let's go over to the, let's go take a look at, because this is, this is perfect. It goes over to, we want to look at, I think we want to look at the vendor outreach. Outreach list. No, 1776 Fixing Platform, I think is a good one.

We've got 9 minutes left.

I think this is it. Let's go up to the top here and take a look. Go scroll slow if you don't mind. I want to see. Okay. Yeah, this is perfect. So go ahead and go back all the way up a little bit, a little bit, a little bit, a little bit. Keep going. Keep going. Keep going. So I want to jump off of that real quick. Katia, you and I will let Dallin— what did I tell you yesterday? Remember I said let Dallin Cook, right? I told, I told you I wouldn't pee on his head if it was, if his hair was on fire. And then now, now look what happened. He showed up. He's like, please, please, please don't let me lose the deal, right? Begging us. So let's let him cook cuz I like, I like to let stuff marinate. It makes the meat fall off the bone faster. So, uh, so when we were at FactRight, something Catherine pointed out said that they wanna know the numbers. They wanna know the stats. They wanna know the truth. They wanna know all that before they know the story.

Yep.

They do want to know the story, but after the fact. Yeah, right. It's got to make logical sense before it makes emotional sense. So if you go through this, what we did was we looked at it and we told it that Catherine's had an extensive amount of, you know, knowledge in the space, right? So let's, let's see what, uh, uh, MyGPT put together for Catherine here. If you scroll down, we reframed the narrative for the fact, right, it, you know, a little bit, told it exactly what you're doing, and came up with— this is where we're going to need Katya and Blake's help with this. Scroll down a little bit more, and what you're going to see is that there is 4 buckets for Titan 23 to be, you know, involved in. The first one was the broker dealer distribution program. A lot of people don't understand what a broker dealer is, and where we, where we're going with Titan 23 is there's specific way that we're going to raise capital from institutional investors. And the institutional investors that we have are based on— uh, there's somebody at the home.

Hey, Laura, can you answer the door and just find out what these people want? Are they members? Are they meeting somebody? Yeah, somebody's standing at the door. Okay, tell them we're in a meeting.

So see what— yeah, you can see what they want. Anyway, uh, in the, in the broker-dealer world, in the registered investment advisor world, they rely heavily on logic more than emotion. And so everything has to be checked and double-checked. And so what they have is they have 4 buckets that we need to carry if we plan on raising capital with this serious capital, with hundreds of millions of dollars. So, well, there was funds that are still just trying to raise $10 million, $15 million.

Yeah.

I had multiple $10 million, $15 million deals, but they had They had, right, right. And so they were raising from that standpoint. So in deal one, in bucket one is the broker dealer distribution, high priority. Like this is the people that we need in order for them to be, for, for what we do to be taken legitimately, like for us to be considered legitimate fundraisers or sponsors, we have to meet this criteria. Go to the next bucket. What's up, brother? Hey, let's go to the next one. And on bucket number two, we've got the admin infrastructure. So we spoke with a great guy. His name was Edward over there at Great Lakes Fund Solution. And basically what he does is he's the one that literally gets the money and then issues the stock, right? So it's like he, he provides us with the, uh, the, the legitimacy of the paper our deal's written on. So, and then you go to number 3, our consultant, due diligence connector person. This is going to be This is gonna be our relationship with Michael Hughes and with our relationship with FactRight. We also talked with Adisa. Adisa is the alternative marketplace doing alternative deals.

Let's keep going. Who are they looking for? Oh, then text Elier. Tell them to text Elier. Perfect.

And then bucket number 4 were the sponsors, and that's us. We're the sponsors. But we're also looking for other sponsors. And some of these sponsors, like for example, was Skyway. He's our managing broker dealer. They're actually the ones that are reaching out within the, within the organization, right? And saying, take a look at these deals, take a look at these deals. So really, really cool opportunity for us. The database structure set it up where we were able to figure out Who's who and what's what. Scroll down a little bit. We'll show you the outreach message that we have. It shows here that it was great. We want to send this out to every person in Katia. I'm going to get with you on this. We're going to reach out because I got a database that we created. I'll show you that in one second, but you'll be able to go through and send this to every person. It's going to come from Catherine, not from Tommy, because we're going to do it from Catherine's LinkedIn account. So if you go down the rest of the way real quick, and what it does is it shows how to how to set it up. Here's our goals. So we want to get into 3 to 5 broker-dealer conversations and build out the, build out the, the, the, uh, go down. We got to build out the budget for everybody to get involved. So what it's suggesting that we do is build the interest institutional, from the institutional platform, build a way to, to take this to the next level through the documents that we've been really good at creating. So keep going down, go over to the vendor outreach list, and I'll show this to Katya real quick. And if you click on the one up right there, nope, there, it'll probably go ahead and save it. And then let's look at it. And what it did was it pulled together, I was able to pull together two different lists, Katya. I put together the list that we would want to reach out and tell people about. Why did I get balloons? I got balloons on my screen. Screen. I don't know. I had balloons on my screen. It was weird. Anyway, you can see here that this gives us an entire list of every vendor that was there and then what their likelihood to being in the Scottsdale summit might be. And then you can see down on the bottom, it says how to use this list. We're going to be able to do outreach to them, give the explanation here on how to do the outreach. And then we also have the people that we dealt with on the business card side. These are all the business cards we had with all of the people's names. And phone numbers, and we can do an outreach to every person on this that, that we need to talk to. And so, and, and sending text messages, et cetera. We had a lot of people interested in coming to Scottsdale Summit while we were there. So, but again, this is how we use, uh, GPT now, uh, to do these things. And so I'll get with you again on this later, Katya. Uh, as far as everyone else, I appreciate everyone. This is our first 2-hour podcast in a year. Took us a year to get here. Deal Hunter has been a year old, but the podcast I think is a little bit older, about a year and a half. But here we are, 2 hours. Congratulations. I was worried that 2 hours was gonna take too long. Does anybody feel like it was too long? Not Catherine?

No, but I can notice that some people have to leave earlier for other things, but that's fine.

Right. But I think what it'll do is we continue to advertise it. It's gonna have people show up too, and we'll have people that show up at 10 o'clock. Till 11 o'clock. So for the next week, what we'll do is we'll run deals for about an hour until we run out of deals, and then we'll come back and we'll do a little bit of teaching and educating behind how to do free estimates, how to do OZ Wizard. Uh, we'll even get on Catherine Bell, and I'll do a CatherineBell.ai day where I just sit here and talk to Catherine Bell all day.

So we're gonna run out of deals. I think that once Blake and I start like going back and pulling all the deals and putting the KPIs track record together of how many deals we've run on the, this show. I think people are going to start saying, oh, okay. And start being motivated.

Well, we've ran, I can tell you right now, if we've ran a deal every day since Deal Hunter, there's 1,000 conversations.

Then people need to understand that. And then we'll track like who brought them and all that. Yeah. Yeah.

Deal.

Yeah.

Yep. So we've got, and again, I think that's the other part of this is that people begin to understand what we do. They're bringing in deals. We're going to say no to at least 90% of the deals before we say yes.

And that's the point where like, that's the point I want people to understand. It's that you're going to get more nos than yeses. And maybe we create a go for no game. My go for no game was I got 50 nos and I got a massage. So my, my My motivation was always like, okay, I need to get to 50 nos. Of course, I got more yeses inside of that, but I also got a massage as well. So Tommy's like, what? You got to be motivated, ladies. Would you not be motivated to get a massage at 50 nos? See, see, I know how they're motivated.

Absolutely. Recording will stop in 2 minutes.

That's somebody Firefly.

Oh, I was like, are we getting kicked off of Zoom? All right, listen everybody, go have a wonderful day today. Heavenly Father, we thank you for the blessing of this day, the blessing of this life, and we ask that you continue to bless and guide us so that we may always do your will. In your name we pray, amen. See everybody tomorrow. Happy Monday. Thank you.