Ep 125 - Week 18 Live Progress Update

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our podcast, which is called Freedom through Passive Income. That's right. And today is another live episode. This is our. This is our week. Live recap review. Which one is this one?

You're just making me giggle this morning.

It's our review. Yes. This is the review of the week. And this is. And today is 5, 5 22. Happy Cinco de Mayo.

Happy Cinco de Mayo.

Happy Cinco de Tacos. And of course, I'm wearing my American flag shirt. Did not plan well on this one. Sorry. Although I don't own a Mexican shirt.

So that's what I was giggling about. And we started that. I couldn't stop.

Okay, so again, welcome. So some quick reviews. Our podcast is now over 7,000 downloads. Unbelievable. And on YouTube, there's over 3,100. What is it? Views on YouTube? I think it was. Yeah, I'm not sure. It's not Downloads off of YouTube, but it's views.

Yeah.

Right, right, right.

Yeah, I think it is. Views. Yeah.

Yeah. And that's awesome. And I wanted to say a big shout out to Pat because Pat's the one that gets us all this information and she's super excited about this. So do me a favor. If you're out there listening right now or watching or whatever, hit the like button. And this one's for Pat because she loves it. She's like, they're so funn. People need to like these people.

Thank you, Pat, for all your hard work.

Yes. Again, hit that like button for Pat.

There we go. All right. Okay, so a deal update. So we've been talking about storage units and this other 344 unit that I had surprised you about last week.

Yes.

So both storage units fell through. The one that we kept. Yeah, that we kept on going. Is he going to sign? Is he going to. He just flaked out. Like, he wouldn't respond. He refused to sign the loi. Suddenly we get close, we think, to the finish line, and suddenly another buyer is now in. Got this other buyer, and they can do this. And we're just like, we're not gonna play games. We gave you our best offer. And we don't get emotional about these things. I mean, I do kind of because I fall in love with them. But if the numbers aren't right, I'm willing to walk away and everybody should be. So that one fell through, the other one. Numbers didn't work. We were going to be able to pay Cash for that particular deal. But he wanted like $535,000. It was a storage unit in Indiana. The numbers don't. They don't line up for that. So we did offer, I think around $350,000 cash. And he has another buyer that was gonna pay 550, like over his asking. We're like, oh, with that one. But it wasn't a cash buyer, so I bet we're gonna follow up. And that one might come back and who knows, the other one might come back too. We just don't know. Whenever we lose deals, it doesn't mean that they're gone completely. It means they're just baking. We call them bakers.

Bakers. That's right.

That's right. Also the 34 unit, that one's gone too. Again, the wholesaler, it was somebody who wanted. It was an investor who wanted us to JV with them. And we had all these question, well, if we're going to JV with you, we need to know your experience. We know who's handling operations. We have to vet everything because we're not going to put our money or our investors money into a deal where we don't know that we have full total control. Turns out they had gotten in a contract and wanted to give it to us for around 2 million. Ken, our underwriter went in, it was like maybe like 1.3. And so we're like, oh, so we're.

Just a little off.

Yeah. So that was out. And then we just got an email this morning from our lender that we're on Track for our 560 closed for the 48 unit here in Ohio. And then 339 unit in Arizona just got sent off to a couple people for underwriting. We'll see if that ends up being a deal. So that's our deal update.

And I just want to let you know that approximately 10 minutes ago I learned about the 339 unit as well. But real quick, that is a learning lesson, though, on that storage unit. You know, it was too many red flags with that guy.

Yes.

You know, and because we're not emotional. Yes, I know we're emotional. Especially because it was like our first storage unit. We really wanted to get this one. But the red flags, you can't ignore them, you know, and there was one. There was too many red flags. And he's just like, nope. Because if he's doing that now, he's going to do that all the way through closing and it's going to be a nightmare. And Then we also update on the apartment refinance. This is the Manchester apartment. So we just sent in our deposit this morning or yesterday? Yesterday, yes. We just sent in the deposit to get that refinance and get that whole process started.

Yeah, so now you're going to hear.

That I think the process started like months ago. So it's to keep the process continuing.

Yes, yes, exactly. Yeah. We have been in the process for a while. So they just asked for the deposit. We think 45 to 60 days. We just don't know. But you're going to get the live updates. So you hear how the refinance is going and it's, you know, it's interesting for us too, because it's our first time.

So we're going to. Well, and we did an episode on the power of 72. And so whenever a bank or lender tells you 45 to 60 days, use the power of 72 and multiply that by 72 and that's your closing date. Right.

You're goofball.

Thank you.

Okay. Yesterday met with Tina and Jody. We created our asset manager checklist for the things that we're going to be doing for the 48 unit because we're getting close to closing, going over the business plan, reviewing the property management agreement with the property manager, getting everybody's ownership of all the things that they're going to be in charge of. So that was super exciting when you get close to the finish line and you're really starting to talk about, okay, let's get the latest update. What's vacant? What's an eviction? You know, what's here so that we can update all the columns that we had set out of. We know we can rehab this many. And this is the. Oh, it's just super. I was just like, woo. I got super excited. And we're still on track for that closing as well. And then financial forecast.

Yeah. So we're almost done with the financial forecast now. This is, this is. It's different than the other five businesses. Yes, this is the slow play. Yeah, this is the slow roll.

Freedom to passive income.

Yes, slow roll. And it's because a lot of these deals, you know, we might not actually be getting the profit from them for three or four years.

Yes.

And so because of the slow roll on a lot of these deals, it makes a fine, you know, forecasting or finances for this company. It makes it a lot more difficult.

Yes, a lot more difficult. And the reason that we don't get those funds is because we have investor partners like yourself. Right. And when we, you know, give you a return model, a projection model of what you're going to make by partnering us with the deal, you get paid first if you're in preferred position. Right. So we're going to get some reimbursements of certain types of fees because we're involved in the deal as well. But we're not gonna get cash flow profit until you guys get your cash flow profit. So it's this whole model that we're working. We're saying, okay, we've got this. This apartment complex, We've got this one. We've got, like, four apartment complexes. Listen, we've got when the cash flow for us starts, if we're gonna sell them in five years, what that projection is. It's just. It's a big, like, I was like, my mind, the brain damage that went on. But thank you to cj. If he's watching, he's the one that's helping us getting this all together. And it's been really fun to just watch it and go, oh, look, in five years. Holy moly. Super exciting.

Yeah. His financial forecast, the Excel, was just mind blowing. Yeah, it was. He was like. And then after, like, five minutes of it, I'm explaining it, he says, flip. What do you think? I'm like, it looks pretty.

Good.

Great job, cj. Make sure that you are going down to our website right here, freedomcapitalinvestments.com and getting into our investor. That's right, because that's where you're going to find out about all these deals, because we can't share these on Facebook and so and linkedins and whatevers. But make sure you're watching all the podcasts. Of course you are, because otherwise you wouldn't be watching right now. But again, let us know if you have any questions, recommendations, requirements, or anything else. But we like to end all of our episodes with Invest Smart, Live Happy. Bye, everybody.

Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial, or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss, y'.

All.