Real Estate Deal MASTERMIND: How to Find $55K Profit

Hey, hey, hey, how's everybody doing? Rock and roll! Mika, how are you, sunshine?

I'm good, how are you?

Good. And I got it right this time, right?

Yes, you did.

I've been saying your name in my head every day since last Thursday.

Yes, it's right, Toby.

I'm well, thank you.

How are you?

I'm wonderful. So, uh, Did you go back on those 4 deals that we analyzed last week and what did, what did you conclude and where are we at?

Well, actually, I just kind of moved on because I agreed with you. They probably weren't the best fit. I have land, land stuff today. Oh, I get so many different ones coming in. Yeah, I just keep moving if they're not a good fit.

Good. Well, and I'm telling you, we're going to evolve you into our AI tool so that You can just run the hundreds and hundreds and hundreds and find the 2, 3, 4, 5 that's value and make it happen. Yeah.

Okay, great.

So, all right, let's see. Ray Knox. Ray Knox, how are you, brother? All right, driving down the highway, aren't you, Ray? Ray, are you there? There I am.

Now I'm on mute.

Hey, there's my man! How are you, buddy?

Sir, what's happening, boss?

Well, it's been a day or two, man. It's been a day or two. What have you been doing since the last time I saw you?

Uh, foot surgery.

Oh, that's what—

I broke my toe the other day. Um, so, but anyway, um, yeah, just the, the same old stuff here. We're still, uh, still, uh, pushing mortgages, you know.

Yeah, who did you kick that broke your toe?

Oh no, we're in the process of, um, moving, uh, to the house in Florida from New York, and I wound up dropping— I was moving the wine rack and the wine went on my foot.

Oh dang, that hurts, buddy, that hurts.

All right, Andy, so how are you guys doing?

You all right? Yeah, we're doing amazing, my man, we're doing amazing.

Good.

Hey Randy, looks like we're missing a couple of people. Uh, Megan's there, Avery's there, Joe, uh, um, Mariko. That all we're missing? Yeah, I'll start reaching out to them. Where's Doug? Doug, Doug! Am I seeing the whole gallery? Yep. All right. Hey, ladies and gentlemen, it is Thursday, 4:33, April 2nd. Um, tomorrow is Good Friday. I hope every one of you are going to enjoy that 3-day weekend that's coming up. I know we are. Um, got even a more exciting day. Uh, Saturday is my granddaughter's birthday, so we are partying up hard. She'll be 3 years old and she has been talking about it for almost 360 days. So it's been fun, been fun. All right. We got a couple of deals that came in. Miki, you want to start with your land deal and then we'll let— as other people are starting to roll in, we'll let— we'll go through those deals and then come through these other ones that have been submitted.

Okay. I got one in Texas. Address is 0 Kaufman Sunbury, so S-U-N-B-U-R-Y.

All right, this is your fourth donation.

It's the fifth donation.

Hey Joe, do you mind, uh, muting your phone, buddy? We're getting some background noise.

10 lots.

Uh, what'd you say, Mika?

It's, it's 10 lots in Houston. Um, each one of them, they look like their total parcel size is 39,240 square feet. So look like each one, depending on which one, is about 1,800 to 2,600 square feet. Um, he says, uh, no HOA, utilities are available, and it's not in the flood zone.

And it's off market.

Yes.

Yeah, yeah. All these are off market. Yes.

Okay. So I'm gonna have to get my, uh, I was hoping we had data here. So give me 2 seconds. So, all right. So we've got 10 lots, right? And are they, uh, looks like they are infill, Nick. Is that right? Are they in, in a subdivision, Mika?

Yes, they look like they're in a subdivision.

Okay, is that— does that look familiar right there that he's got pulled up on the screen?

He didn't show me the, um, I just got the address. He didn't show me the—

no, no, no.

What we— oh, so you haven't looked at them?

Yeah, I didn't look at it yet. Yeah, he just sent these to me.

So, um, you can send us that.

I mean, I don't know where it goes.

0 Kaufman, Sunbury Lane, right? Houston, Texas.

Okay. Yes, Sunbury Street.

Sunbury Street. We got Sunbury Lane. You want to change that?

See, 8301. I got another address here, 8301 Sunbury Street.

83, that may help us get this narrowed down. Houston, Houston.

Yep, yep.

So this one's got a house on it. Was one of the lots that already had a house?

No, no, he said they're all, they're all just, uh, lots.

All right, well, let's, um, let's just evaluate what we know because that 8301's got a house on it down in Houston. Um, and he said there are $320K for the 10, so $320K, so $32,000 a lot. Um, all right, so I'm going to go to my nifty nifty brain. Hey, Toby's AI. Hey, I've got 10 vacant lots down in Houston at Sunbury Street. Zip code is 77028. There's 10 vacant lots, infill, utilities are already there. They're running about $32,000 a lot based upon the analysis that you can pull up. What are those retail lots valued at?

In that part of northeast Houston, typical infill lots on Sunbury Street are generally selling in the range of about $40,000 to $70,000 depending on size and condition. Larger or corner lots might push closer to $90,000 to $120,000, while lots with issues could be around $20,000 to $30,000. If you need more precise comps, we can dig deeper into recent sales.

He said comparable. He said the comparable is showing the same property selling $100K more than the subject property is what he says.

If a comp shows $100K more, that's a huge spread. We need to know why. Is the lot bigger, corner, or zoned differently? Or is your data off? On Sunbury, the typical retail value ranges from $40,000 to $70,000, maybe more for special lots. Before you start believing a 6-figure jump, you need to see the details. Can you pull up that comp's lot size, location, and any improvements? We don't guess here, we trust the math. What's your next move?

So did he give you any comps, Mika? Go back to that, the— go back to where you were, scroll down to the map. There was a bunch of lots right there, right there. Can you blow that up right there? Uh, satellite or lot line? Yeah. So are those all vacant right there? Zoom that back in. Yeah. Is those all vacant right there?

Looks like there's a few.

There's— so, yeah, yeah.

He didn't give me the— he gave me just that the sizes were between 1,800 to 2,600 square feet, so Okay, so let's, let's run that analysis.

So it appears that our lots are about 1,800 to 2,600 square feet. Based upon that lot size, which seems pretty narrow, tell me what we would be looking at on comp valuation.

Looked for recent sales of vacant lots in the 1,800 to 2,600 square foot range on Sunbury Street in Houston 77028 zip code. But there aren't any recent recorded sales that size. The closest example I found was a larger 4,600-square-foot lot that sold for about $36,000, which works out to roughly $7.70 per square foot. Based on that, the smaller lot might sell in the $30,000 to $50,000 range, but more exact comparisons aren't available right now.

So I'm a little nervous. Um, those lots seems small. So 1,800, uh, to 2,600 square foot lot is small. I can't even— I'd have to put a 1,500 square foot house on it with a zero lot line. So if I'm a builder, so if I'm a developer and I'm coming in, I gotta look at how can I monetize this lot. And if it's going to cost me— let's just say we can get it for $25,000. Say we, we go back and say, hey, we're gonna We're going to buy these 10 lots, but max I'm going to give you is $250,000.

All right.

Even if they're at $30,000. So I've got a $50,000, you know, let's say they're $35,000 retail. So I've got a $100,000 room there, which only gives me $10,000 lot spread. But then I've got to look at how is this of value to a builder coming in there? Because I'm not a builder. If they are these long, narrow lots that we're looking at here, I got to— I got to make a house that's really narrow and long to fit on it, or I'm going to be right on top of the next house. So for that analysis, my house is going to be around 1,200 to 1,500 square feet. So in that aspect, if I'm at 1,200 to 1,500 square foot, 3-bedroom, 2-bath, one-car garage, which is kind of the demand, especially in Houston. I'm looking at probably a $250,000 house turnkey. My cost of construction is only about $180,000. So there's just— the margins are really, really thin on that.

Yeah.

Do you see where I'm going with all the dissecting of this? Mm-hmm.

Toby, do we know if those lots are connecting?

We don't, because we don't know for sure. Yeah, we don't know for sure that these are the ones that we're seeing. I believe they are based upon what we're— what we've got, the limited information that we have. I believe they are. So, so they would be that, that group or that series right there that we saw. We don't have that, but right, and he has these numbers.

He has, uh, all 10 of the numbers, so they're probably— it looked like they're kind of like Yeah, right next to each other. So it's probably correct.

Could you change the lot size, like take 3 lots and make them into 2 and put bigger houses on? Would that ever— would that make it more beneficial?

You could. You'd have to— yes, you could. You know, we could replot and rezone them. We'd have to get with the city, get the entitlement, and make sure that the city has no restrictions on that. Because the other thing— go back to that map. Real quick because I wanted to show something. So one of the things we have to make sure though, babe, is that we're not overbuilding for the neighborhood. And the neighborhood is consistently small, little bitty lots, older homes. If you look right here to my right, Nick— nope, other direction. On that same way over to my right, your left, right down, down a little bit more, not to the right, straight across. If you look at that mess right there, Blow that up right there if you can without losing it. Without losing it. Yeah, without losing it. Yeah, blow it up without doing that right there, Nick. What that was, was that was a massive commercial area. Had a bunch of cars, had a bunch of equipment, have a bunch of junk. Well, who wants to move into that? And remember, everything that we do in real estate is all about location, location, location. Yeah, right. You see all that right there? Yeah, right there. Just a nightmare. Look at that. It's a parking lot. It's a semi-parking lot. Who wants to live in that neighborhood, listen to those semis roll in and out at all hours of the day? Uh, so if those are those lots right there, that's why they're there. That's why they're sitting there. That's why they're a little bit overpriced but not really a valuation. And then you even go further to the right across, uh, what's that road right there? Yeah, look at that right there. That looks like a dumping ground.

Yeah, yeah, it does.

So we have to understand what's the value of the neighborhood. This neighborhood does not look— it's going to be like appreciating very fast. I don't know that I would put any time or energy on this in my, uh, 30 years of experience.

Lots for sale for $80,000.

Yeah, thank you.

Thank you. Okay, is that all you got for me today, Mika? Come on, girl.

No, I had another one, but I want to see if anybody else got anything.

Okay, we'll circle back around. Go ahead, Nick.

I'll say that if they do have, they can submit them.

Yeah, if you guys have a deal, jump into the chat. Is that what you want to put in the chat?

In the future, we send out that.

Yeah. So yeah, and that's a great point for every one of you that's joining on here. In that registration for tonight's deal, there's a submit a deal link. Drop, you know, put your deal in there, submit it over to us, then we can put it in order. Yeah. So you can start doing that. Uh, you had another deal. Let's pull up that one that you did get, the mobile home one. Is that right?

Yeah.

One of the things, while Nick's pulling that up, I want us to all fully understand, uh, real estate is all about facts. It's not about hype. It's not about, um, possibilities. And, and here's the, here's the profound thing about real estate. Real estate is all based upon history. Stock markets, gold, oil, all this stuff is all about futures. Real estate is all valued based upon history. What has happened in the past that we can guarantee will happen in the future. Now, if it gets better, great. But we always have to bank on what happened last month. Last quarter and last year. And based upon that movement, we can project probability of tomorrow, meaning if this neighborhood— and we go back to 2 or 3 Google Maps and we see that it was— had those parking lot or those semis and had all that, but today it's cleaned up and we've seen lots moving and new construction going in. We know that this is an appreciating neighborhood that the city has said, clean this crap up. Great example here in McKinney, Texas, which is just where we're located. There's East McKinney and there's West McKinney. Highway 75 splits it. And on East McKinney, it's Old McKinney. It's where people go to die, basically. And not literally, but just the businesses, the economy, all that. West McKinney. Is all the affluent, it's all the growth, it's all the, uh, $400, $500 million, $2 million houses. East McKinney, $10,000 trailer houses, $20,000 houses, and Section 8 apartments. Until 2 years ago, and the city said, we have been recognized for the last 5, 6 years as the fastest growing city in the United States, and yet we have this blight It's time to clean it up. And so the old mayor and the new mayor have implemented a redevelopment and they've gone in there and they built these amazing— probably, Angie, would you say 2,000 apartments in the last 2 years have gone up? Close to beautiful, beautiful apartments. They are redeveloping businesses. They're redeveloping the streets. There's redevelopment going on. So Knowing that, hey, let's get some houses. There's those old 1930s, 1940s, 1950s houses that people have been there for 4 or 5 decades. We can scrape those up. We can tear them down and build new, and it will fit right in in the next 3 to 5 years. Those are the kind of things that we have to look at when you're looking at going into neighborhoods. All right, so what do we got here, Nick? We got 106 Patterson Street, Wichita Falls, Texas. Who, who submitted this one?

The guy named Tyson, but I don't see him.

Tyson submitted a deal and then didn't even jump on to let me show him how much of a gold mine this could be.

He said— and he said it was under contract too. I don't know if it's, if it's something that he has that he's gonna sell.

Yeah.

Or if he's buying it.

Can you scroll down with the information just right under what's special?

Yeah.

What's that say? Freshly— so it is renovated. So that's great. So we got freshly renovated, 2-bedroom, 1-bath home, spacious, been on. So it's been on the market for 112 days. Yeah, yeah, yeah. Because this would be one that if it has not sold and the seller has put this time, money, and energy into it, to revitalize it, to rehab it, and can't move it. Scroll back up to the price. $65,840 square feet. So, um, $90 a foot. Is that what we're looking at?

It looks like one of those, um, um, what are they called? Were they, um, the cargo— the cargo trailer—

container homes.

Container homes.

Yeah, Nick said it, I said it, but only Taylor, she heard. Amazing.

Oh, that's about right.

Hey, Toby, I know this is the one from Tyson, right, that it's not on here? Yeah, uh, Christine posted one to analyze. Okay, great. She's on. She is on. Yeah, she's right there in the middle. I don't— well, my view, I guess you don't see her. I see her. No, I'm good. All right, let's go look at Christy's since, since Tyson's not on. Let's go look at Christine's. Christine, how are you? Pull her up.

Doing good.

How was your day today?

It was good. Yeah, yeah, we almost thought that a new hire wasn't going to show up today, but he did. We thought he was ghosting us.

So that might just wear you out to go through the process of interviewing, onboarding. Start date, and then they— yeah, yeah, the life we live as entrepreneurs. All right, we're going to pull your deal up here, Christine, as soon as my, my boy Nick can get there. Um, we have an amazing package being mailed out to you. I probably can't mail it out till Tuesday though, because I got a special gift coming to you. You will— and here's, here is the God's honest truth— you will be the first person in the Unshakeable Investor community that gets this gift. Oh boy, that's the truth.

Target everybody else on the call.

You will be the first. You'll be the first. All right, so we got this 132-900 Cedar Lake, Indiana. All right, hey, let's use some AI. Yeah, I'm curious because we got pictures. We got 10 photos.

Is it on? Oh, it is active.

Yeah, it's an active deal. So let me ask you this first before we go into all the assessments. How did you find this property?

Well, my only way of finding properties right now has been mainly through Zillow because I don't have your tool. I'm not into your tool yet.

We're getting it there. We're getting it. We're custom building one for you for your neighborhood. Okay. Um, all right, so you found it on Zillow. Um, do we know Who the listing agent— have we made contact with anybody on this? But I didn't know if she had reached out to him. Okay, all right, let's get my AI plugged in. Hey, I've got a property here in Cedar Lake, Indiana, zip code 46303, address is 8919 West 142nd Avenue. It is a 2-bedroom, 1-bath 912 square feet property, uh, marketing around $132,900. Tell me about the neighborhood, tell me about this property. Uh, we're looking at it for a fix and flip.

819 West 142nd Avenue in Cedar Lake, Indiana is a 2-bedroom, 1-bath home with about 912 square feet on roughly a quarter-acre lot built around 1924. It's listed for about $132,900, which is low compared to the area's median home price of around $372,000. Similar small homes have sold for between $100,000 and $270,000. It likely needs rehab, and a resale could land around $250,000 to $300,000 if renovated.

All right, I've got 10 photos here I'm getting ready to upload. I want you to go through and give me a rough number on the estimated rehab.

Sure thing. Once you upload the photos, I'll walk through them and give you a rough rehab estimate based on what I see. Go ahead and upload them and we'll get started.

Next. Next. That is one ugly bathroom.

Yes, yes it is.

Next. Next.

That's it.

That's it. Okay.

Yeah.

From what I can see in these photos, the house needs a full cosmetic overhaul. That means new flooring throughout, fresh paint, updated kitchen cabinets and counters, and a bathroom remodel. The exterior looks like it could use some siding repair and a roof check. I don't see major structural issues from the photos, but it's an older home, so I'd budget for electrical and plumbing updates just in case. On a 912-square-foot house, a moderate rehab like this could land around $30,000 to $45,000, depending on the quality of finishes and any surprises behind the walls. If you're aiming for a flip, Keep that in mind as you run your numbers. Does that fit your budget?

All right, let me do some deeper analysis, but I like where you start. Thanks.

Good.

Dig into the numbers, confirm the rehab with contractors if you can. Don't get stuck in analysis. How soon will you decide if this deal works for you?

Okay, I'll get back to you. Hang tight, okay?

No problem. Take the time you need. Run the numbers. All right, you're ready to—

let's go to the first picture. Stop talking to me.

It's your timeline to pull the trigger.

Yeah, yeah. All right, so let's talk about this. Let's go picture by picture, and here's how I would coach you through this. Number one, we've got a muddy road, okay? Uh, in Indiana, it snows, you get ice, you get rain, you get the full— all four seasons. Um, I would at a minimum because you have a pretty good spread. If we do dig into this and we see that this is a $250,000 to $300,000 area, it's heavily wooded. I love houses that are in wooded lots. I would put a concrete carport, okay, at a minimum, with a really solid gravel, with a solid base drive up, because I think the driveway's, uh, long. Maybe add another $8,000 to $10,000 for the concrete carport gravel driveway or asphalt. Okay. First and foremost, we got to get rid of— so as in here, I'm getting ready. I can't even say— I can't even say this, Nick. I don't say you got to get rid of the god-ugly orange, but here I'm wearing the same color of orange. So, but we got it. We got to change that to make it neutral. A taupe, a cream, a tan. We got to brighten up the house and get rid of the 1970s age. Okay. Drive-up appeal is everything. Mm-hmm. So next picture. First and foremost, now here's where I love getting into houses, and this is where my wife is the queen of. She takes the inside of a house and can just open it wide up and say, as a woman, this is what inspires me. I do not like that little nook with the spindles right there. That's coming out. If that's the living room into the kitchen, that's got to be one open room. You walk in and you have this wow factor. I got to be able to walk in and see the living room, the kitchen, the dining room. Because if I'm a female and my husband entertains, I want to be able to have everybody there, but yet be involved in what's going on in the day. And that's what people want to be a part of. If there's a separation, The person in the kitchen, and traditionally it's the spouse, the female, the wife, is cooking, preparing, and she's removed from the activity. So we go in and we open the living room, kitchen, dining room wide up. Okay. And that's outdated. So we're going to remove that. I assume there's popcorn ceiling texture. You can't hardly see it. You don't think it is, Nick? I can't see it from here, but we would look at that. Of course, yeah, we're going to go— I believe today's society has gone huge on LVT, laminate vinyl flooring, or tile. And so we go in there, we do not put carpet, especially with it being in the country. They're probably going to be looking at animals. You don't want carpet because it has to be replaced. But we go in there with a very powerful LVT flooring and move that around, bring the walls to very— what am I thinking of? Very universal earth tones. Next one. Yeah. So that just wrapped around right into that would, I assume, is a Dine, because that's the spindles on the left, that's the bathroom on the right. What is— what do you think that double door right there on the left is? Right there, we think that— you think that's utility closet? You think? Okay, which is fine. So you've got the— you walk in, you've got— you take that out, and now you got this open floor plan right there to the living room. Yeah, yeah, boom boom boom. So I love that part. And then you're wrapping to the kitchen over here past the, uh, powder bath. Yeah, that's it right there. But it looks good. So then, so, um, that's a full bath right there. Oh, it's only got one bath. Yeah, yeah, yeah, yeah, yeah. So of course in here we're ripping out the, uh, the wall inserts, putting tile up. Um, I would probably move the toilet too. I hate toilets that are right next to the showers like that. I hate it. Hate it. I would probably relocate the toilet to the left, and I would put a very nice updated pedestal sink in there. You're looking at, uh, $2,500, maybe $3,000, and just doing a complete redo in that tile. Tile on the floor, tile on the wall, uh, nice vanity. Possibly relocate the toilet, which is easy on this one because It's a, um, it's a, um, elevated floor. It's not a, it's not a monolithic concrete floor. Next one. Oh Lord, help us all. Lord, that man, I'd like to know what's behind that left wall. Money. Yeah, yeah. I mean, you're just going to go right into a bedroom. My thought is, if that's a bedroom right there, I am tearing that wall down. So go back to that picture. I am tearing that— that's one— that wall down, and I'm opening that kitchen wide up. Or, or I'm tearing that bathroom out, opening the kitchen that direction and moving the bathroom between the bedrooms, making a Jack and Jill. Do we have bedroom pictures? Let's, let's play this out. Oh, see that? I think that's the wall behind the kitchen. I think that's the wall behind the kitchen there, Nick.

The problem is I think that this one then only becomes a one bedroom because this is— it's a tiny house.

Oh yeah, yeah, I thought it was a 2-1.

It's, it's a 2-1, so I feel like that's the second.

You think that's a bedroom, man? That's like, like 5 feet wide and 30 feet long. Oh, it's got a window. Oh, there we go. It's— yeah, it's got a window. Just one window. It's like a jail cell. Um, go to the next one. Let's see. Okay, see, now that's a normal-sized bedroom. One more. Let's see what else we got. We had 10. I don't know what that picture does for me. Yeah, there's our There's our utility room. Good, good size utility room. Nice, nice size utility room. I just don't know where we would relocate the bath. We got to fix the kitchen, number one. So in houses, in real estate, there's 3 things you have to have in area— well, for location, but that's the given. You have to have an open floor plan from the living, dining room, kitchen. You have to have a big kitchen, open, spacious kitchen. And you have to have an amazing master bath. Those are the 3 things that have to be done. And you have to figure out, can it be done? If it can't, then what's plan B? But number 1, we know we can open this up. I would really like, you know, this would be one where I would, I would fly up there, Christine, and we would walk it to really get a true structure because I think there's some potential with it. But if the construction and remodel doesn't play out, then, then it's a no deal. I have to be able to do something with the kitchen, either move it back or move it forward. If I can move it forward and relocate that bathroom, that would be profound. If I could move the bathroom to this utility room on the left and just turn that into— remove the hot water heater, make it tankless, put my bath, my sink and toilet in there and make that just a powder bath. Then move a full bath as a Jack and Jill to the bedrooms. That's the plan that I would be looking at to see if it would be an option. And of course, we would have to keep the wallpaper there above that door. I mean, that's from what, 1965? That's like classic. The banner, the banner paper.

Yeah.

Yeah. And the flamingo bathroom is beautiful. It pops. It pops. It does. It stands out. I mean, it's eye-opening, right? All right. So here's what— so here would be my next step advice for you, Christine. How far is this house from you?

Probably like 15 or 20 minutes.

Perfect. Go walk it, go video it, and then send it to me.

How do you— this is my question for you, because since this one is listed, like, how do you get in these homes if they're not listed and if you're not working with an agent?

Uh, well, you call the listing agent because they're gonna, they're gonna love that you're not working with an agent because now they're scraping.

But I'm just saying, because I know that you are— we're supposed to be like, we're hoping to get these before they even get listed. How do you get in those homes before they're listed?

So, uh, when we get into homes that aren't listed, we call in the owner directly. So yeah, we'll call the owner direct, say, hey, I see this house is vacant, I see it's about to go on the market, Let me save you 6%. Let me save you $6,000, $7,000 by just buying it from you before you ever have to list it and deal with a realtor who's going to rake you through the coals. So that's the pitch to get into that house immediately. I'm a real estate investor. I'm paying cash. I'm closing in 15 days. You're going to say all the things that need to be said to get in the house. Okay, now I can't say this on this. There's a lot of houses I've walked in, and my wife will tell you nobody gave us permission. I'm that kind of guy that— and I think you and I are— I think— is that your husband sitting next to you on the right?

Yeah, he would tell you I'm the same type of person.

I was hoping he'd be down in the basement working. Uh, yeah, so we'll be driving, we'll be driving neighborhoods, and I'll see a house that's vacant, I'll pull in, and I was like, what are you doing? What are you doing? Like, I'm gonna go look at the house. I'm just gonna peek in the windows, baby. I'm not— no, you're not, you're gonna break I said, no, I'm not. And then the next thing I come through the front door, she's like, how did the back door was unlocked? It was. She goes, no, it wasn't. It was. So it is now. Uh, so I— so, and some of them are unlocked, so you can go. And even if you can't get a hold of somebody, it looked like there was no blinds, no, uh, curtains or nothing. You can take pictures from the windows. And get a full understanding. But you have to, you just, you have to. But I would, yeah, I would definitely. And here's the thing, you go there and there happens to be a neighbor out, hey, I just don't mean to bother you, we're here, we're thinking about buying this house, we heard about it from a friend who said it was vacant, do you know how to get a hold of the seller? Yeah, yeah, yeah, I got his name and he's an older man who's blah blah. Perfect. You know what? I'm going to give him a call. Thank you so much. Do you mind if I tell him how I got his number? Well, then, yeah, Joan gave me the number. Hey, Bobby, Joan, your neighbor, gave me your number. I was running into her the other day. She said you got this house for sale, and then we just roll right into it. So you've got credibility because Joan kind of already pre-introduced you. So I answered your question. I would buy this house at $120,000. I would, I would close on this house And I haven't even run the analysis through our, through our tools, but if they've got it valued at $133,000 to $135,000, I'm starting at about $118,000. I'll close it at $120,000, $122,000. I'm gonna put, I'm probably gonna put $60,000 into it and then, and then sell it. So let's just run this real quick. Dang, come on.

It's been on the market for over 100 days too, just to note.

Yeah. Hey, AI. So I'm on that property that we looked at on 142nd Street. We've done some— did some deep dives on it. So I think I could buy this property at about $122,000, maybe max $125,000. I want to put about $60,000, $70,000 in complete remodeling. With those numbers, how do I play out profitably?

Let's run it straight. If you grab it at $122K and sink another $60K to $70K, you're all in around $182K to $195K. If the resale ARV is in that $250K to $300K range, you've got potential margin. Take the lower ARV, $250K, and subtract your all-in. You'd net roughly $55K to $68K before closing costs, holding costs, and realtor commissions. Knock off another 10-12% for those, and you're left with maybe $30-40K. If you push to the upper ARV, say $300K, then you've got more breathing room. That could put you closer to a $70-80K net after all costs. The key is verifying that ARV. You need comps that prove $250K minimum. If you can't support that, it's a no. If you can, you've got a deal that can make you $30,000+ in a few months. Don't rely on hope, get those comps solid. What's your plan to lock down that ARV?

Yeah, so scroll down. Let me show you another trick. Um, um, next, I think it's the next. Scroll down a little more. Scroll down.

Scroll down.

Scroll down. Did that one have lot lines on it above? Toby, were you gonna put a concrete driveway in there? I was gonna put a concrete carport and then a natural gravel driveway back to the highway. Right there, that's what I want. Open— hit that right there. All right, so Christine, here's some— here's another trick I want to teach you. So you go to that little box on Zillow and, and hit lot lines, and this now tells you what Zillow has valued properties in that neighborhood at. And this is our first real quick glance when you're not using my tools but you're just scrolling through. Um, this tells you that the neighborhood is looking at it in, I think, $230,000 to $250,000.

They're, they're a range for what, for the area?

Yeah. So those— I can't see it from here. I can't see, man.

It depends where you go. I mean, this one.

Yeah. So, yeah. So, so what I want to make sure is that if I'm looking at a $250,000 to $300,000 retail price, are there houses in that neighborhood that already valued at that? If so, then I know I'm solid. If everything we pulled up was in the $150,000, $180,000, $200,000, then I know I'm going to have the biggest house on the block. And here we go. Here's a $250,000 house that looks just like ours. So the neighborhood supports our valuation and what we want to do.

This one's double square feet.

Double square feet. Yeah. So it's, yeah, at $250,000.

And it's also 3-bedroom, 2-bath.

Right. So we're probably because of the size of it, we might be going to be at that $200,000. It's a little bigger. It's 1,800.

Yeah, like, you ever—

it's a lot bigger, right? Go ahead, Christine.

Do you ever recommend, like, expanding, building onto, like, knocking out a back wall?

I would, but not for you.

Okay.

Yeah, not yet. Here's, here's the other thing. Until you have a multitude of flips— and I say 5, 6, 7, 8 is, is not the magic number— until you have a multitude of deals done with a contractor we love that knows his stuff, that is a partner with us. I would never let you do a massive rehab. And an expansion, whether it's 1,000 square foot, 500, is a massive rehab. Okay, when we're going in doing cosmetic updates, which is this one would be, I'm all in. This is a huge opportunity to learn. And what I tell my members, I want you to buy a property around $150,000, $200,000, put $30,000, $40,000 into it and flip it at $300,000. And you're not going to make a lot of money. You're going to make $15,000, $20,000, $30,000. But the experience is astronomical. Building the team is priceless. And this is where most people lose out, is they like, I want to make $20,000. It's not the $20 grand, it's the education and it's building the team. Because I normally, starting with a new area, will go through 4 to 5 contractors before we find the right one. Unless there's a previous experience and relationship that we can trust. Most contractors are only in it for their 30% markup. We want somebody who says, you know what? If you're going to do 20 deals in the next 12 months and I'm your guy, I'll only charge you material, labor, and 10%. I'll be in it for the volume, not for the quick buck. And then we say, okay, and then we see his work, we see his ingenuity, we see his professionalism, we see the integrity, and then we take it to the next level. Okay. And so yes, this would be one that we would definitely want to look at if you did, and we had the team, you could add 1,000 square foot to this and make a gold mine out of it. Okay. Any other questions? Somebody else was— had a question. I cut them off. Was that you, Dan?

No.

Okay, you have some questions in the box.

What, baby?

You have some questions in the chat.

Somebody read them off. Go ahead and read them off to me, baby.

How do we get very precise with these prompts like you, Toby? That's Abby.

Oh yeah, so, uh, our comps in our program that you're enrolled in will be very validated. So when you put this property as an example into our AI tool, this will give you your— this will give you your validation and know within 10%, give or take, where this property would retail out at. What else, babe?

Avery's asking, would you invest in a property remotely or would you prefer something locally?

So for the clients that are in our program, I need them to be doing deals in their neighborhood within a 1-hour radius to start with. And it's not— I need them to be boots on the ground as they're learning and evolving and developing. And then once we get a— and everything— let me just— let me— let me— guys, I need you to hear me right here. Everything is based upon your team. Your construction team makes or breaks every deal. In 2000— what was it, 2017, 2018, babe? We, we did a training like this. We brought in about 60 individuals in a membership program where we had the same tools and resources, and we had a lot of people saying, oh, that deal won't work and that deal won't work because we were finding the properties for them. So we would— we told them, you enroll into our membership program, we're going to put 100 properties. And this was in the Dallas-Fort Worth area. We're going to put 100 properties into the portal that you have login access to. 100. So we're bringing in 50 people. Everybody gets 2 and we'll always keep that at 100. So when you close a deal, you can get another one. Close the deal, you know, they just keep revolving it. And so we had all these loaded. And all these real estate experts like, Toby, that deal won't work. Toby, that deal won't work. Toby. And so I said, I'm done. Here's what we're going to do, ladies and gentlemen. I haven't flipped a property in almost 10 years, but because I know what I know and I believe in who I am, I'm going to go— you guys, you 50 members, pick a property off of this portal and tell me the one that won't work. And they all picked 4 or 5. Said, okay, we got it narrowed down to 5. Now out of these 5, which is— and you got it down to 1. And everybody said, yeah, that deal won't— based upon the numbers you have, Toby, that deal won't work. Now, mind you, this is how blessed I am. I didn't even have a construction crew at the time because I wasn't flipping deals. And I said, all right, I'll take that deal. Here's my numbers. Everybody has it. And I'm going to do it. And you guys are going to watch me do it. And so we went, walked the property, looked at it, analyzed it. I then started driving. So how do you find your contractors? Number one question I get all the time. How do you find your contractors, Toby? I pray, number one. Okay. First and foremost, I stopped the car and I said, Lord, I got to have— I got to have my guy because I got a lot riding on it. And we drove around. And so what you do is you drive neighborhoods. And you find houses that are being rehabbed and you walk in and you start talking to the contractors until you build a relationship and a trust with somebody. And I can— I'll show you how to do that. So we drove around, didn't see— and I had— I think I had Taylor or Amber with me and Angie was with me. We didn't see contractors, did not see not one. Was coming back home and there was a house right at the end of the block. and a guy was in the garage working. And I pulled, and my daughter, and I thought it was Taylor, she said, my daughter said, hey, go talk to this guy, go talk to this guy, maybe he's the one. All right, I'll go talk to him. Lo and behold, his name was Jesus. So I prayed to Jesus to find me a contractor. His name was Jesus, or Jesus, however you want to say it, spelled the same. And I talked to him and I said, hey, here's what I'm doing, what do you do? He says, I do it all. I said, so you're painting here, I do plumbing, I do it all. So really, I have a deal. Let's go. And long story short, we contracted him. We did that deal. We made the exact numbers that I said. And not— and then they all tell me, well, you got lucky. We did 19 deals in 12 months for those 50 members who said it couldn't be done. And they picked the 19 deals. I used Jesus on every deal. And we closed, funded, and profited every deal. As I said, a contractor makes or breaks your deals. Now, I will tell you that there was a couple of team members who were in our program. They wanted to jump in and they hired a buddy as their general contractor. and that was a total nightmare from day one. The house had value. The area was profound. The scope of work was on target, but their general contractor who was managing the subs was a putz, an absolute putz, and they had nothing but stress all the way through, and they couldn't get the property sold fast enough. Contractors make or break your deals. It doesn't matter how smart I am. It doesn't matter how great the numbers are. None of that matters. The contractor who is the person executing the job has to be your biggest fan. And they got to know the big picture. They got to understand the value that you're bringing to them. And the reason why Jesus and his crew loved us, because they had an absolute guaranteed job every day. They didn't have to go hunt it anymore. Here's another great example. We bought an apartment complex in Longview, Texas, 94 units, and 90 of them need to be rehabbed. And I'm— and probably, would you say, 60 of them need to be blown up. They were that bad. And I've shown it on our presentations. I've shown you guys this complex, but I had one guy that I was using in a property down in Pasadena, Texas. And so Longview and Pasadena is what, about 3 hours, 3.5 hours apart, Nick? From Pasadena, Texas to Longview? Yeah, probably even further. 4 hours apart. And I said, hey buddy, you're doing amazing work. I don't have any more work on this complex here. But I do have 94 units that I need you to do the same thing for. You can work every day, 7 days a week for the next 2 years for me if you want that job. He said, I'm in. And he worked on that job and has rehabbed 60 of those 94 units, 55 of those, and never blinked an eye. They do great work. They work hard. They work affordable. And they understand the big picture. When you have a team, they rock and roll. So contractors make or break your construction. This is why it's so important to find the right contractor. Once you— and you can't find— I got lucky. Not everybody finds them right off the bat. And when you do and they see a deal like this, They will help ensure your success on it because they know if they help you with this one, you've already got 2 more lined up and they don't have to worry about losing their crew because they can't pay them or can't keep them employed. You have to understand the big picture of the why. The why is absolute. I need job. I need work to pay my crew. My crew needs work to pay, put food on the table. And if I don't have it as the contractor, My crew's gonna go work for somebody else. And then when I do have a job, I don't have my crew. So by painting this picture, by elevating the expectation and the understanding, the right group is loyal and will do amazing work for you. And then you scale to the moon. Then you scale. All right, who's next? Pull that picture out. Abby, what you got, Abby? All right, you have— we have the address. No, look at me, look at my man Nick.

Um, this is gonna be like a co-wholesaling. Remember I told you about the Deal Depot, that different deals comes into, but this one already is under contract, but I'm trying to co-wholesale it. I will be bringing some more, uh, other wholesaling, uh, deals. So it's, um, okay.

So you're co-wholesaling this deal? You're wholesaling with somebody else?

Yes.

Okay, Minneapolis, Minnesota. All right, it's off market, 2 duplex.

Yes, it's under contract right now, looking for the end buyer.

Okay, my eyes are killing me. Um, oh, We got to do some work. So is the 370— so what are we, what are we getting it to contract at? What price are we getting to contract it, Abby?

You want—

I'm losing you, babe. You froze up on me, Abby. Yeah, go ahead and turn your camera off and see if you get a better signal.

Hello?

There we go. All right, talk to me now, girl.

Okay, um, it's a 5-1 and a 3-1, which is like an odd. It's supposed to be a duplex. I think he's using it as like a co-living right now. I think he has like 2 tenants, but I think—

And what, what are we— what, what can we get it contracted at? What price? I'm losing you, girl. I did. Yeah, she's off the video.

Can you hear me?

I can hear you right now. What's the contract price?

365.

Okay, 365.

I put it in the chat.

Oh, okay.

Yes, perfect.

What you got there? 365. All right, so we can contract this at 365.

That's what the contract is for now, but we can talk him down.

Okay, let's see what my AI says. Hey AI, I've got a property in Minneapolis, Minnesota, zip code 55407. Property address is 2812 12th Avenue South. It's 2,540 square feet. Tell me what we're looking at. It's a duplex, a 5/1 and a 3/1. But what is our estimated ARV for that neighborhood? Done with the photos.

Duplex at 2812—

don't you do this to me.

Mhm.

I don't know how recently.

Duplex at 2812 12th Avenue South in Minneapolis. It's about 2,540 square feet. And the last recorded sale was around $363,000 back in 2021. The median listing price for multifamily homes in that zip code is in the range of $275,000 to $308,000. Based on that, the after-repair value looks like it could be in the range of about $330,000 to $380,000, maybe up to $400,000 with premium finishes and strong rents. We'd need more recent comps to be sure.

Go back to it. Yeah, um, go back to the— yeah, go see me, go show me the lot. So let's do this real quick, Abby. Um, one more down. And this, yeah, uh, 363, 196, 344. Yeah, for 350. Yeah, yeah, okay. Let's look at the neighborhood lot lines.

So these, they show both for duplexes?

Well, but see, even if it was just one, if these were just single-family houses, the neighborhood's a $200,000 neighborhood. Yeah, yeah, click on that one. Yeah, let's look at that one. So it's, so this is a duplex also. Oh, it's a fourplex. Okay. Yeah, $76 a foot. Yeah. Yeah. So if you put the math on ours at $76 a foot, 2,500 square feet, what's that give you? $300,000, which is what I was saying. Yeah. So, Abby, I don't— I think our wholesale price is too high because now if we go back to it and here's why the rehab on this house is at least $70,000 and I just— that's just off top of my head. Go back to the photos. Outside looks good, HVAC looks good, but everything else is dated. You got the, uh, Berber carpet in there. You've got, um, yeah, the blower unit looks good. Um, you got popcorn ceiling. Yeah, uh, you got the shower that looks like Jesus's blind brother put it together. Um, Yeah, that's so— and this is something I want you all to understand. When you're looking at tile in showers, it's imperative that the tile guy knows what he's doing. This is terrible. And here's what I can show you. Scroll. If you look at that— no, no, go back, go back to the— if you look at this, here's what's bad about it. At the very bottom, and it's hard to tell, but what I can tell is there's very little grout in the very bottom corner, and as it goes up the wall, it gets bigger. Meaning the wall wasn't square and they didn't fix it. They just laid the tile accordingly. And that's where you just over— and they have a light switch in the shower. So that's now going to get fried. Yeah. So instead of moving the light switch outside, they tiled around it. That's— this is where you've got to be cautious. Um, say that again. That's a personal job. Yeah, probably homeowner did that.

I think, yeah, probably did that. My concern is the 2-bed, the 1-bathroom to 5 bedrooms. Probably gonna need additional bathroom.

Yeah. So here's where I would go at it. As a wholesaler, you've got a direct connection to the seller. You know, the guy is desperate. You know, he wants out. Let's find out what he owes. Let's do a deep dive. Let's dig into it. Let's find out what is— go ahead.

Last that he owed, he told me was $323,000. Ooh, a payoff would be a $320,000, but that was 2 months ago. When we first found out about him. It belongs to the community. Um, and let's see, what do you mean it belongs to the community? Um, to this, um, Osalin group that I'm connected with. Yeah, it's a member. So, and it's this, so everybody's trying to help him so that he doesn't lose double So there's several owners in this.

There's— it's like a REIT where you've got a group of investors that bought it, right?

No, it's a wholesaling community. Everybody there does wholesaling, and we have like a Deal Depot where highly motivated sellers bring their, you know, they complete the form and it gets delivered into the Deal Depot. So whoever gets the deal first or sells the property.

Gotcha, gotcha. So, um, even at $320,000, even if we could contract it for the payoff, which is what needs to happen, um, I'm sure it's more than $323,000 now.

It's probably like additional $10K. So I'm thinking like $3— $33,000 for a payoff now.

Mm-hmm.

Yeah. But I think he's trying to like have something. That's why he wants the $365,000 so that he can pay off and still have something to pay whatever he needs to pay.

Yeah. Right.

I'm sure if we speak to him, it can come down.

If, if I was, if I was in this game with you, if I was doing this deal, here's how I would do it. I would take this deal, these pictures, I would create this amazing marketing ad. I would dump it into all the Facebook real estate groups and say, hey, seller needs to— I need, I need to close immediately, dumping this property at bottom price, quick closing. I would find a buyer first. Once I found a buyer at, say, $330,000, $335,000, I would then wholesale. I would then contract it at the $320,000, $325,000. I would take my $5,000, $6,000, $7,000 profit and run. But that's the only way I would make this work. And if I found a buyer, great. If I didn't, no big deal. I would not wholesale this yet. Well, you can wholesale it because, uh, what do they want, $100 earnest money if you wholesale it?

I'm sorry.

So if you put this on a contract today, so if I came, if you as a wholesaler went to the community, said I want to contract this property, how much earnest money would you have to put up to have it contracted?

I think it'll take, it'll take $500.

I would give them $100. Okay, I'll give them $100. I'll put it on a contract at the $320,000. $325,000. Let's just be nice and give them $325,000. I'm going to contract this at $325,000.

I'll give you $100 earnest money and I'll close in 60 under contract, Toby.

Yeah, but it's at what, $370,000, right? And buyer.

So I can get my own cut. I'm just trying to help them find— I didn't get the deal for us today.

No, right.

But I have it under contract. So I'm like, I'll help you get in buyer and then I get my own cut.

But so if you're on contract, would you probably— you said $360,000?

$365,000. I think it will take— I think it will take $350,000.

I think you'll take $320,000 in about 30 days.

Yeah. Once these like— yeah, foreclosure step.

Yeah, yeah, yeah. So don't contract anymore. You're part of the community now. You bring me every deal first. I would have helped you negotiate this under contract at $320,000.

$325,000. They did. They did before I could speak. I know they already have it on a contract. I'm just trying to help them find the end buyer.

So, so here's how you get this off your— so what I would do, I would create, and we can help you. I'll have Nick and Randy help you. Let's create some amazing marketing, uh, ads for you, and then you're going to dump them. You're going to post them into every real estate portal on Facebook. You can— every real estate group you can find on Facebook. Quick closing, need to close, desperate seller, or motivated— don't say that— motivated seller, got to move fast. Somebody will buy it for a rental property and they'll just buy it and turn it right into a rental property.

I think that they did that last 2 months.

It didn't work. How many Facebook groups did you put it in?

Not me. They were doing the—

yeah, but now you got me. Now you got the guru. Now you got somebody with some weight.

Okay, so what do I do? No, that's it. I just want to like get this empire in place and then we'll really pick up.

We're going to create some, some ads for you that you can post and to get it moved, but you're going to have to dump it. And I'm talking 60, 70, 80 different real estate investor groups on Facebook.

Okay, so to change the contract, because I know it's very flexible now to, to really put— to redo the contract, to like reduce it, you know, to do an addendum to the contract. What will you say? How will you structure this? Because I actually— I mean, yeah, if you want to speak directly, I can have you speak with him directly. You're the end buyer that wants to, and I'm right part of the, you know, the team.

So, oh yeah, so the way I would do it if I was in your shoes today, you've got it contracted at 360. I would go back to the community and say, look, guys, here's the deal. Let me contract it at the 325 price with you and let me— and whatever I sell. So you can't get greedy, but you can, you can make profits. Whatever I sell it at over 335. So I want you to make 10 grand. Okay, Abby, I want you to make 10 grand. So guys, I'm going to contract this at $325,000 with you, and I'm gonna— anything I sell it over $335,000, we'll split. So if I sell for $340,000, then we split the, the $15,000, whatever I sell. But at $335,000, I get 100%. Anything over that, we split. So I get my 10, and then we split the 5.

Okay, so go down to $325,000.

$325,000, that's payoff. That's payoff. And then tell them you're gonna work your tail end off. You got a crew now that's going to help you market and move this property, and you're going to get it off their books, and nobody's going to get rich. We're just all going to get paid. Okay, that's how I would handle this.

So we have to market this to an end buyer. This is not something you want to buy for yourself, or you want to like partner with me to be a rental or something.

No, because even if we bought it at $325,000 and we put $70,000, $80,000 in rehab, which it needs to retail it, um, losing money.

You still have tenants in there. There's still like 2 tenants in there, right?

Yeah, and it's a good rental, but you're just— you're going to crank out $200, $300 cash flow a month, and appreciation isn't going to work on that house. It's just too old and outdated. It's not, it's not one that I would want to put in my portfolio for long-term rental asset.

So if he says yes to $325,000, what happens?

We recontract it. You let me know, and then we'll go to town getting this thing published to the world. Because there's a buyer out there for it. I can promise you this, there is a buyer out there.

So for how long would that be? Because we have to extend the, the content.

I would, I would— you need 60 days. You need 60 days just to be safe. We'll push it faster, but I don't want it to expire again. Tell them, hey, give me 60, I'm going to push for 35. I'm gonna try to get this thing moved, closing fund in 35, but give me 60 in case there's any kind of discrepancies.

So what would the addendum be?

Say that again.

What would the addendum look— sound like? 325?

325 with 60-day from that executed date, 60-day to close. That's correct.

Okay.

Uh, try that. I'll talk to him tonight.

Okay. All right. Yeah. And the next time, on your next deal, now you got to bring to us first.

Yes, yes. Before any contract.

So before you do anything, you bring it to us and we will do the contract.

They did already. They picked up. I'm like, okay. Now they can't find a buyer. I'm like, yeah, told you so. You don't go—

that's right, that's right. Not at— not at $370,000, $380,000. There's no buyer for that property. There's no buyer. But we'll fix— we can fix it. Okay, okay.

All right, all right.

One more. It's 5:39, 5:40. I'll take one more if we have any, or any questions need to be asked— answered. Anything else you got there, Nick? Hey, if anybody has anything that gets rid of massive splitting headaches, please send it to me right now.

Oh no.

Oh my gosh.

Um, have you tried Excedrin? Because Tylenol will not do it. Excedrin.

Excedrin? Yes, I take like 50 Excedrins today. Salt water, buddy. That's your problem, dude. I think these are quality salt. Your salt? Yeah, our, our, our, our, uh, I think sleep.

I think—

I'm sure you've had too much salt and too much Excedrin. Look at all these people judging me. I asked for help and everybody wants to judge me. I, I just No, I feel your pain.

I took half a muscle relaxer.

You're the one that gave it to me. You had a splitting headache. I don't think it's contagious.

I do don't think—

but I'm not gonna love on you anymore. I don't care. You transferred that dadgum headache to me.

You know, you know the truth though, Toby. What you need is a long 1-hour massage by me.

Oh, now you're talking to me. Now you're talking.

That would just take away every headache. And everything.

All right, all right. Hey, Billy, he's— Billy, we had a call today. I missed you. Yeah, is he not gonna unmute? Called him out. That's how Billy is though. Yeah, we had a, we had a coaching call today. No, I think the time he did show, but it was like the hour late. So I think he had the time zones messed up. You there, Billy? Yes, sir. So was that correct, we had time zones wrong? No, no, my, my Zoom— I, I logged into the Zoom and it just kept going around and around. Oh yeah, I was on, you weren't, but then I was jumping on the call after that and I saw you had joined. I'm like, oh Bill is— in fact, I had Randy reach out to you, uh, because you, uh, so I just figured you had the wrong time zone. That's all good. Reschedule. Let's get together. Okay. Okay, sounds good. All right, anybody else real quick? It's fine. I'm gonna give you 3 more minutes. I'm gonna cut this off at 5:45. Um, man, great information, everybody. Uh, I'm gonna do a real quick announcement while you're all thinking. Tuesday night webinar. Don't miss it. Don't miss it, ladies and gentlemen. If you are not in the Legacy Group, you are missing tools, resources. You saw how quick, how simple we were able to dissect and give answers in seconds. This is one of 5 tools that we give you. Now, nothing's ever going to replace me, and this is why we're here. Because I want to interact. I want to guide, direct, and coach you, mentor and partner with you. But while I'm not available, while we're not on, you have this tool, which is my brain, and right now it hurts. You have the analyzer, you have the profitability, you have all these other tools that you have at your beck and call. Be on the webinar Tuesday, 6:00 Central Standard Time. If you don't have the link, let us know. We'll get you there. But I'm telling you, this is the secret sauce to your success. Not just me here doing this mastermind and coaching here for free.

Huh?

Oh, you're right. Well, I think we're gonna go ahead. I think we're gonna go. You don't think so? I mean, hey, we've changed it 3 times today. We're on, we're off, we're on, we're off. I mean, come on, it's, it's, it's The Unshakeable Investor. I'm trying to unshake you guys. Yeah, uh, so we'll let you know. I know we're having— we're having the, the one on the 14th is going to be profound. So it's loud if you flip it over. Yeah, just muting. Uh, so, um, anything else? We got one more minute. Anything else in the chat? Angie, anybody in the chat got any questions?

No.

Uh, let's make sure.

Nope.

All right, I'm gonna go around the room real quick. Give me the gallery, please. I'm gonna go around the room real quick. Avery, any questions?

You answered most of them. I was just wondering if you would prefer to analyze deals, like if the AI software would allow you to analyze deals remotely, but you told me it's more locally. Will you suggest it be more local?

Mm-hmm.

Um, what, what are the key indicators on a property that tells you that it'll be successful?

So in the key indicators are going to be all mathematically establishing a threshold margin, meaning there's one thing we can't control, and that is the after-repair value. I can't control it. The market dictates it. I can't do anything about it. Out of the 3 numbers, One I can't control, which is after repair value. The other two I can— purchase price and rehab. I have 100% control over those numbers. When I plug all three of those in, then that margin has to be met. And our system tells you, and it also, um, plugs in carrying cost, closing costs, variables that most people don't even put into it, which we call phantom expenses. So in doing that with our systems, you then have this measurable that says, if I buy it at this and I don't spend any more than this on the rehab, then my profit is this. Does that hit the minimum threshold or not? Yes or no? It'll be green if it's yes, it'll be red if it's no. And that's the, the tool that we do.

That makes sense. So it all comes down to numbers.

All comes down to numbers first and foremost. Once the numbers are validated, then it comes down to the team. Can the team execute based upon these numbers? And if that's not— so you have number one, numbers, number two, team. And if any of those are no, you walk.

Doesn't your software also create estimates to where we can bring it directly to the contractor? To see the estimate.

Okay. Absolutely. It'll print out a line item scope of work based upon the imagery or what you— and what we ask for you to do is to look like with Christine, her next step on that property we ran would be to go to the property, walk it, video it, run it back through my AI and validate the cost of the scope of work. From there, Then it will give you that line item. Now she can present that to all the contractors that she's interviewing and says, can you do this work at this price? If they say no, then we know it's not viable. They should be able to because we've built this in for that zip code, that cost of labor, that cost of material. So there shouldn't be a reason that they can't. From that, then we know how to move forward. And also what it allows is we are— our AI might have missed something that a human would pick up on. So Joe, our contractor, is walking and says, hey, you forgot to put in here, I got to change out all these light fixtures, I got to change out all these sockets and all this light plugs. So now there's another $1,000 there. So there's where that human conversation comes in to really make it profound. Okay, awesome.

Thank you. That makes sense.

All right, Megan, any questions? Um, I don't have any questions.

Learned some things.

Good, good. Ray, what'd you think, Ray?

Uh, very interesting. Quick question though is, uh, Contractors, when we're looking for one in the area, what's the best way to find a contractor?

Drive the neighborhoods, buddy. I'm telling you, I, I want to know somebody who's working in that neighborhood. I want to know somebody. I want to be able to see their work, and I want to be able to meet them face to face while they're on the job. The way I choose contractors, and when we did the property in Evansville, Indiana, It was a 66,000, 4-story apartment complex that we were gutting and putting $4 million into it. We flew out there, we walked the property, we met the contractors, we even went to the city. Here's, here's how we got a list of the contractors. We went to the city on day one and said, went to the code enforcement manager said, I'm buying this building and I want to know who you like as a general contractor, commercial, and who you don't like. Meaning how many red tags are you giving this company and how many green tags are you giving this company? And he said, man, come in, sit down. He literally was walking out the door, said, nope, I want to talk to you. Sit down. We talked and I said, here's what I'm looking for. I need to know who you love working with that does good work. This building is downtown Evansville. We're going to revitalize it from the down to the bones up. And I need to know who the best 3 companies are that you've worked with. He's been there for 12 years that you would recommend. And he showed me why. He said, here's my top 3 and I'll show you all the buildings they've done. We've had like Of those 3 contractors in the last 10 years, he had like 2 red tags and it wasn't anything major. He said, now these guys, I won't even— I mean, I send my meanest inspector out on these guys because they do crappy work. So that's how you find your crew. You go and you find them on the job, in the streets, doing the work, you inspect it, you get to know them. If they're nice to you, if they're respectful, then you know you've got an opportunity. Got it. Thank you. Maurico, any questions? Mariko's not listening to me. He's probably got YouTube on his other phone. All right, it is 5:51. Hey, ladies and gentlemen, uh, thank you so much for being here tonight. Hope that you learned something. Hope you got educated. I am looking for all of you to be on Tuesday night because we are rocking the house. And again, I keep— I gotta quit saying because I don't know if we're gonna do We'll let you know. But anyway, I will see you, definitely see you next Thursday night. Bring me your deals. Come on, let's analyze, let's buy some properties, let's transform lives. You guys have a great evening. Talk to you soon.

You too.

Take care.