A $4-5 million luxury home needs demolition despite recent upgrades because of its outdated layout and a dangerous cliff-edge driveway. The owners discuss financing the rebuild using the five C's of capital: credit, collateral, cash, contacts, and contracts.
You need to tear the damn thing down, build the property up correctly so that you're not driving, you know, off a cliff to go into your garage. And, um, yeah, like, again, this is why I believe in, in just tearing stuff down and building new. Um, a very expensive house with very difficult things. As a contractor, I'd have difficulty allowing those things on my, on my $4 million, $4.5 million home. The house— Oh, it just like they put lipstick lipstick on a pig.
He needs a million dollar— I think, I think the play is like, what are they asking for that one?
4.5. They probably did put a million into it. That's the problem is they dumped a bunch of money into a— it needs a scrape. No, it needs a scrape. It had a, it had a, it literally had a death spiral driveway going into it. You need to tear the damn thing down, build the property up correctly so that you're not driving, you know, off a cliff to go into your garage. And the house is just outdated. The house is 100% They put brand new stuff in it, but an outdated design and brand new stuff doesn't make it a cool house.
I guess we—
you just—
you need to probably sign some documents on the other end if this is a go on your end, right?
Yeah, we got to get you guys, uh, agreed on with this one, and then what we can do is, uh, jump into getting the, uh, getting the setup fees taken care of and, and, and rolling it out.
Oh yeah, whenever that's ready. Walk it through, walk it through with me, and then let me know the steps.
I'll do it, sir. All right, and so on that one, like that one right there, will be— he, he may not be able to do the setup fees out of his pocket, but he can do a personal guarantee. You know, we talk about the 5 C's of capital, right? What are the 5 C's of capital? First one with the microphone off gets a $20 gift card.
Know that one of them is credit.
But you just hit the one, you just hit the one that we're going to use was credit. Chris has credit. Chris is going to use a personal guarantee to raise the capital. The other thing that we're going to do is collateral. What is collateral? Piece of property, right? Piece of dirt. Something I can, I can take and make my money back with, right? That's collateral. Cash. Duh. But the, uh, the two that most people forget: contacts and contract, right? We can, we can make money off a contract. Contracts can become capital and contacts can become capital. We are each other's capital. I have an extensive amount invested in every single one of you. And, and I feel like, uh, what I've invested in you is, uh, is, um, more than, or, or, or what I've gotten back as far as my return is way more than I've put in. Right? Because what you guys have brought to me, uh, I've probably 10x'd what I feel like I've put out to you. Right? You guys have brought me that much value. So that's why I do this every day. I, I know that's what Catherine's driven by.
