Watch Us Analyze a 20-Unit Texas Apartment Deal in Real Time (Cold Calling Brokers)

Who got the most leads?

Shout out. Right now they expect you to pay market cap, especially if there's no value add. Yeah. So it sounds like they've done a good job getting tenants in there. They're just not doing a good job operating.

We got to consider there are serious delinquency issues.

Property is like right near one of the country clubs, like golf courses.

We don't like anything about it except the fact that he's lower than us.

Brokers are good at telling stories.

There you go. It's near one of the military bases.

Okay.

It's by a military base.

Okay.

And this specific property is like right near one of the country clubs, like golf courses in the.

So it's country club and military base.

Okay.

It actually looks like the rents are a little already above market from what I'm seeing.

Yeah.

Okay. So let's take a 924 as the market rent times 2 to 9 units times 12. And what's the current occupancy?

95.

Perfect. So 2.5 million GPR and expense ratio is 229 unit. What's the vintage? What year was it built?

1960.

Wow.

Yeah, it's kind of old.

1960 built property in Lawton, Oklahoma. I think it got to be over 55% or 55% expense ratio.

I think she has the actuals.

Right.

I do.

Want to use that. Or do you want to just run it without.

Based on the actuals, what's the current expense ratio?

That's 1.7.

So their current total expense. 17. 325. 325. What's their total income?

2 million 276. 226? Yeah, 6.

Okay.

75%.

They're running 75% expense ratio. And 95% occupancy.

So take their problem opportunity. But unless you get the right price and we still got to underwrite it. But that's. And that's not uncommon to. Like I was saying earlier, you buy something at a negative or real low cap rate because they're running it so poorly. But you sure got to find out why. There are some underlying reasons.

Sometimes there are a lot of. There are a lot of problems for this property, I can promise. But let's go for the best case scenario for. For NAP analysis. That's some 60% expense ratio. Would you agree with that?

Year of 60s?

Yeah.

60% expense ratio. That's the best we can do potentially. You got it.

Yeah. You're already. It's already like.

Hey, Jack, you also didn't. It's only 95 occupied. So don't you want to take down GPR?

It's all right. Yeah, we can do that.

All right, you just do it below it. You can just say it at 95% sure here either we're at someplace the just the GPR needs people and if.

You think about it, we don't take that into account on the napkin. We don't check in the council.

Best case scenario, that's tomorrow. Yeah. All right, so 2, 5, 3, 9.

Napkin is assuming everything's 100 occupied.

Yep. And then assume 60% expense.

Everybody's paying.

Everybody's paying 1, 2, 3, 4, 9 1. So get your NOI. A little over one million dollar NOI. Yep.

There's your noi. Everybody understand how we got there? Questions? No question's a bad question. All right, so there's our NOI. Now what's our market cap?

Six and a half, 1960s six and a half. I don't think that's a 6% cap rate market. Like I said, 675.

Yeah. Closer to 7.

Right, close to 7. Six and a half. 675.

Yeah.

Again, Google Photos help, but we're just going to say because it's 1960s, it'd be 6.75% cap rate. Again, this is, this is just a cap rate that as you get familiar, you're just going to assign something.

Yeah. I know you don't like me throwing off the napkin, but that's where right here you can just divide by that if you know you want to dial in at an eight and a half cap rate, you're done. You just divide by 0.85.

Well, you say you still got to know that 6.75 and then you want to do a little bit above.

Yeah, well, we're eight and a quarter on the other so older property, more trouble. You don't want to be eight and a half or nine. So you quickly. But let's stick to the.

Stick to the cap rate index has it at 8.24.

Yikes.

Exact for multifamily.

Haven't we found though that that cap rate index is not accurate? A lot of times you got to.

Make sure it says it's the exact type. Does it give any kind of vintage or class cb, anything like that?

I don't use it. I just thought some. Somebody had determined it was it found some anomalies.

What's the population, do you know? 53,000. That's the other thing about cap rate index is if it's a rural area or if it's a, if it's somewhere else, you know with not a lot of population they don't have a lot to compare it with and so you don't always get the most accurate.

But again you know we have Jack AI index. You don't see, you look all over the country, you don't see much over.

Seven do you know especially I mean that's. Yeah, especially for 220something unit property. Yeah, I don't see too much, I don't see any like above 7 cap rate. So I think that I mean unless they can pull some cell comps to validate the accuracy of their you know cap rate data, I think over 8% cap rate, you know institutional buyers can just buy them without looking at the numbers for you know as 8 point something percent cap rate.

Deal.

All right, so let's do want to do 80% or 70% discount.

And that's why our buy box is up to 150 units because I mean is it.

250 the new one?

Yeah, never mind.

No, the Sweet spot is 75 to 150 but I think we expected that.

Funny but, but yeah, I mean it's. Once you get up here you're, you're competing with institutional guys and it's just fewer and far in between that you're going to find something at that level. We'll all pitch in on that deal. It'll be all the tables combined.

It's going to be 229. So that's literally translates to 52k 52 per unit and it's currently 95% occupied. So, so unit interiors. I don't think there are any down units in a property but we do need to confirm the CapEx budget we need to request the last three years, you know their CapEx report from the setter. But I do, I do believe there are a lot of deferred maintenance issues in this property. It's going to be tons of different maintenance issues.

So what told you that? What told you that?

They're running 75% expense ratio which is much higher than the market standard and it's built in 1960s. It doesn't look like institutional level product. It doesn't look like being managed by a good management company or institutional level investors. So you know, depending, depending on when the current owner purchased the property. I don't think these guys, these mom and pop operators ever spent you know a lot of capex money into this deal. So over the time there, there must be like huge number, you know There must be a lot of defer maintenance issues in this property.

What would you think, Jack? I mean, you would probably want it to budget at least 5,000.

At least. Yeah, you read my mind. I was thinking about at least 500,000 up to a million dollars, depending on what kind of lab of product you.

Want to make it to.

So let's than 500,000 to be the minimum for this.

It's a whole lot better to have capex budget left over than run out of money, that's for sure.

Yep. Except you have to.

Well, with this occupancy too, you're not going to be doing a lot of capex all at one time as well. So.

Yes, 5,000 per unit.

No, it's about 2500.

2500?

Well, I was saying at a half.

A million, it's 25.

Five's gonna be more conservative.

Cause this is napkin. Just trying to see if you're in there. I guess when you get asking questions, get into is that you're thinking what you get. Is that right, Jack?

Yeah.

Being a little more conservative with the napkin. I mean, one thing he didn't even do, when you get in the deal analyzer, you go and look that T12's got a 75% expense ratio. But you got to look in there and see is it mostly in utilities? Did they have some.

No, he's right.

It's mostly payroll or most of the players. Yeah.

And maintenance.

So.

So they've been doing everything they need to.

Yeah. And I think there's a gamemanship for more astute owners. What they'll do is they'll renovate. Once you renovate, you won't have the maintenance and repairs. Right. Because you're, you're playing an noi game. So you renovate. This guy obviously has high maintenance and repairs. He's not renovating, so he's not as astute. But if I can capitalize an expense and take it over multiple years, it doesn't come into my income evaluation. So the other. And I'm trying, I'm. I'm not trying to be complicated on it, but there are also three different valuation methods. A cost, a market, an income approach. Right here we're concentrating on income value, but there are other methodologies of value. So another way, think of it as a cost. If I get something for 50,000 a door boy, that's the price of a car. And I may, if I like the area and I think it has good population, good population growth, I may take a little bit more risk on something like that, you know, if it's in my backyard particularly.

Still got to cover the loan payment.

But you still got to cover the. Yeah, you got to still cover that, but those are. There's just a couple other nuances along the way that you want to consider or. Why are you part of reis? Because you can then ask questions and get advice in there as well. That's part of the benefit of being part of the community as well.

Drumroll. What are they asking? That's what I'm saying.

They don't have an offering.

Oh, I missed that on the offering. Just says to be determined by the market.

You want to call them?

Hello, I'm the market caller.

Yeah, they don't have one, so I don't know.

Yeah, just.

Just. You want to call them?

I think that's.

Where did you find this?

On a, A, like a realtor's website. Like a, Like a group that sells these.

Yeah, let's just give him a call, I think.

Give him a call.

Give him a call.

What's the number? Yeah, you got something while we're looking?

Got like 15 numbers. Who do you want to call?

Larry? You going to do this?

I'll be glad.

Real quick, contact.

The senior manager. Yeah, sure.

1960S is perfect to have to jackhammer slabs and replace plumbing.

Unicorn. Yannick. Yannick. Yannick.

Well, this should be fun.

You want to give him a call?

I can use my phone.

His name's A. Yannick, but who is he with?

They're with the multi family group tmg. They're like a top broker in Dallas and surrounding areas, I guess Texas.

Yannick, are you. Are you in that area? Are you. How are you? Okay. Yeah, well, I can just tell him I have a partner in Dallas. Cause, you know, sometimes you calling these people around the country and I operate in the Southeast and they start saying, what do you know about Lawton? I don't know anything. It's in Oklahoma, you know, and they don't want to. But we'll call those who. It's keeping you Mic.

Yeah, let's ask about their waste per price.

You can tell my mom.

What's the name of it? What's the name of the deal? Hey, this is Larry Kite. How are you doing?

Hey, howdy. Doing well, sir.

How are you doing?

Good.

I was calling about this listing you got in Lawton, Oklahoma. 229 units. You know the one I'm talking about?

Yes, sir.

Country Club View.

Yeah, what's the. Is that still active? What's the status on that?

Yes, sir, we Are our firm is listing that one right now and we're gonna have a call for offers second week of February. I believe it actually is Friday the 13th of February. Maybe it's the 12th.

Actually.

No, it's the 12th. Thursday the 12th. So we're accepting all offers until then. You know, the property looks good in person. I don't think you'll be disappointed to see it in person. It's located very well on Gore and right in the middle of Lawton. You know, around the country club. If you're going to be a lot, it's probably one of the best locations you can possibly have. So lots of, you know, thoroughfare traffic right there, a lot of frontage. But. Yeah. What?

Yeah, yeah. So we're coming in a little late to the process. I've got a partner out that way and we were, you know, running the numbers on the deal. Do you have some kind of guidance pricing on where you're expecting it to go?

I'm expecting it to land somewhere in the, you know, 36 to 30 unidoor range.

Okay.

Based on the interest that we've had.

That's.

That's where I expected the win.

Yeah. What are, what are the main challenges with that property? I see they have pretty heavy expenses.

Yeah, well, so this is a. The owner that had this one, he passed away. His son now has the property. He's offloading it. They have spent, you know, there's basically a no expenses bar type situation where they're, they're spending a lot of money on it.

You know his.

They pay their people extraordinarily well. You know, they're R M. They, they throw a lot of their make ready's, we'll call them make readies. But basically fixing up their units to rent out at higher prices. They've been doing that with all their RNM insurance. We've already got quotes that are lower than where they're what they're paying right now. So there's a lot of. Yeah, it's run really fat. That's just true. And the next buyer is going to be able to step in day one and cut a lot of those expenses right off the bat. But in terms of challenges, this is a boiler chiller property. If you're familiar. Are you familiar with how chillers work?

Not enough.

Yeah, well, chillers basically you can only have hot or cold on at any time. You basically have to have somebody flip the switch for the whole, the whole thing. So it's either always hot or it's always cold, which is you Know, that's a challenge for, for owners. It's, you know, it's, it's, it's challenging for the tenants. So some tenants don't like that. So it's a negative of the property, so to speak. You know, they've replaced over half the buildings roofs in the last five years with, within the last five years. But that means that, you know, there's still other parts of the roofs that while they're not leaking, you know, it's probably something that you're gonna want to.

Have rent per unit and then, you.

Know, if you're gonna. This property qualifies for agency debt all day long. You know, it's, it'll be, it'll cashflow beautifully, especially when you, you cut out the, the fat expenses. And so this property will qualify for debt free agency debt. But you're probably gonna have to ask for some money for some parking lot repairs because the agencies are very particular on having very clean parking lots. And there's, you know, there's some broken concrete there. So that's, those are the challenges. It's probably the chiller system. You're probably going to want to budget some money for the roofs and then for the roofs that haven't been recently replaced and then some parking lot repairs that I'm sure that the agencies are going to want you to repair. And you know, it helps your curb appeal. So those would be the challenges.

How many buildings is it?

Right off the top of my head, I don't how many buildings. But it's four quads. So there's four quads of four buildings. I'm going to say four buildings. I think it's four, but it could be that they're broken up a little bit more. But there's four quads of buildings.

So they've just replaced roofs as they have to.

Not necessarily just for what they had to, but they've done because they've done more than half. That's not typically very common for somebody to do that many buildings roofs. But yes, they have. They didn't just do a full replacement of the whole thing.

Yeah. So what's Yalls capex budget you're giving? Y' all have one estimate?

Yeah, I'm expecting, you know, buyers to have to budget about 700,000.

Yeah, that sounds reasonable. So what do you think? I mean, what are the units like? What do you think the rent can be pushed to in the next 18 months?

We have a rent breakdown in our offering memorandum. I think there's, I think there's a little bit More room to push on the rents. But I think this is really an operational play. I think that whoever buys this is going to. Because it's, you know, occupancy is really high and everything, you should be able to qualify for good agency debt. He's going to cut expenses right off the bat. And so I think this is more of a cash flow play where you guys are going to be able to cut on payroll admin. I mean they have about $50,000 in accounting fees. So stuff like that that you just, you're not going to have to do going forward. They're just throwing everything in there to reduce their net income. And you know, I think that once you cut, you know, the admin fees like that, you know, you can drop your payroll down. You don't need to pay them as well as the seller's banks paying people there.

Yeah, so it sounds like they've done a good job getting tenants in there. They're just not doing a good job operating. But what, what do you think the delinquency. Do you have any idea where they're, where they are on delinquency?

I can, I can ask them for a delinquency report, but my understanding is that they're actually doing an excellent job in that department as well.

Yeah. That's good. So sounds you said you got offers coming in, you're expecting pretty good bit of interest in.

I'm expecting so. Well, it's law in Oklahoma. You know, I sold. We're about to close on a property in Richardson where I had 20 offers. Right. We're not gonna get 20 offers but I think we'll have you know, four or five credible groups offer and you know, for law in Oklahoma that's, that's a pretty good turnout.

Got you. I may have missed it. You said they are self managing the property?

Yes, the owner is the management company.

How many other units do they have?

They have thousands of units but none in Oklahoma and none are left. At least this is the last one in Oklahoma.

Okay, so they're not selling everything, they're just selling what they don't like. Just kind of calling out this region.

So they're based out of Tennessee, so they're, they're just selling out of the region.

Gotcha. But nothing else on the radar. We definitely like Tennessee. Okay, well I think you answered the questions I need, so we'll, we'll follow up with you.

Do you have my email?

Yeah, I believe so. Yes. Got your information. We have the offering memorandum. So, so we were just, we Were we were early. We're kind of early looking at it. Just want to give you a quick call mainly to make sure it was still available and just to kind of fill in some of those questions. But we'll continue to plug away at it and, and get back to you.

Yeah.

And remind me, do you guys own properties currently or would this be your first activity?

Yeah, yeah, for sure.

We're mostly southeast. Got a, you know, new partnership we put together in that Texas area. We've. We've come close on a couple of deals there. So this one popped up on the radar. Was interesting. So, you know, it fits a lot of our buy box criteria. So. Sure.

After this, could you. Do you mind sending me an email with just when I have your email, your name and, you know, which group you're with and everything. That would be very helpful for me because this isn't the only property that, you know, I'm helping oversee.

Yeah, man, sure will be glad to do that. I'll have a partner do that and, you know, reference my name, Larry Kite. Let her know we talked.

Okay, great. Thank you so much, Larry. I appreciate it.

Thank you. Bye bye. He had already said. He had said 36 to 38 a unit.

Yeah.

Yes.

Oh, did he?

And we were 52. So you got to find out what the rest of the story is. I like to say, you know, that old guy.

So he confirmed 924 current. Did he confirm it?

No. Well, you said you got a rent roll.

It's on the alarm.

Yeah.

I mean, most of this we have. I just didn't want to key. I'd already asked him a couple of dumb questions because I, you know, got the om. But he was very nice guy, obviously.

What.

What did we miss? Or what do you think we missed?

80%. We char. We put 10% discount.

10% vacancy at least.

So can you run Jack, real quick? What if we paid 38 a unit? What. What would that look like?

36 a year or 38.

I would go in at the high side. We'll offer him 40. Y' all want the deal?

Okay, let's see. Let's do 38 though.

No, I think that'd be a good follow up conversation once you kind of run through it and. But you know, it's the deal where they're calling for offers. It's been out there on the market. Everybody's seen it. So you're going to be competing with 12 other people with deeper pockets. Maybe. Maybe. Would this be an institutional deal?

Maybe not Lawton.

Not Lawton.

Not that location, not that age institution.

Doesn'T want, like, quasi institutional.

Okay, we're quasi.

Yeah. Well. And honestly, you know, you got to think does. Would we want it because it is Lawton? Because it is a 60s property. And, you know, it's going to have surprises along the way. But that's why you got to get a really good.

Everything has a number.

And if you. If you send an loi, they may require you to come, you know, want you to come look at the property. Already wants an email. And a lot of brokers, like, have that requirement. Like you got to tour the property if you're going to submit a lot. But if you did that and sent an aloi, and even. Even if it was 31, a door you've made helped your credibility with that broker, you know, for other deals they may have come up.

That'S over 11% cap rate.

What do you think we're missing this morning?

But I can.

I think, first of all, I almost.

Want to call him back and say, did you say 36 or so?

So for a unit, your property, like, in this size, we got to consider there's six delinquency issues and the vacancy loss, their total economic loss could be up to 20 from 30%. It's like you're making deal.

No, he said they thought delinquency was okay, though.

Yeah, that's that he said.

But he said I can get a copy of the delinquency report, so.

I don't believe it.

Yeah, I don't either. Something not believable, right? Yeah, Again, I mean, their job is to make that offering memorandum look as good as it possibly can.

Yeah, we can. We need to. We need to consider like maybe 20% or 15% economic loss based on this GPR.

I wish I knew a guy like Dan had talked to earlier that lived in Lawton, and you could call him and say, there you go. What's it like? Cause he's in Dallas. Right. The broker. All right, that's good, though.

Next step to find out why is that 36. Why is they asking 36,000?

Well, the next step now is. Yeah, Deal analyzer, Right.

Yep. So let's request a few things. Their accounts receivable.

Well, once he said 36, we don't like anything about it except the fact that he's lower than us.

Yeah.

So then we need to find out a story that was funny by looking to their delinquency report and their true occupancy, because I feel like the 10% or 5% on the OM. That's what their projection is. We need to find out what their true occupancy is and their true delinquency is.

But you would pursue it?

I would definitely pursue it.

All right. If your group was looking for 200 and something units in tertiary Oklahoma markets, you would be all over.

Probably not. I mean we don't have that jockey.

No, I said if they were.

Let's. Let's put this on tomorrow. Tomorrow we're going deeper into underwriting. Okay, but Jack said it's interesting. Isn't that right, Jack?

I said it could be interesting.

Could be interesting.

When did you find out the story?

All right, who's got the next deal?

Let's go.

We got one right here.

That's neat.

All right, go ahead.

She got.

So we got the 26 units in Norfolk, Virginia.

26 units Norfolk, Virginia.

Built in 1970s. It's currently at 90% occupancy. And the accent price is 5, 5.2 million.

5.2 million?

Yes.

It looks like 1870.

19.

Yeah.

And then the current market rent is 1500.

Wow. That's a market rent or in place?

In.

Place.

But he said after including other revenue.

It averages out to 1750. That's market rent current. What do you think of the market rent would be? Okay, let's start from the in place. 1750. That includes other income.

Does anybody know this area in the room?

Norfolk?

I. I know this.

It's hot.

Okay.

Okay. First thing you know for the napkin is what's the market rent?

When I Confer unit count. 26 again.

26 units.

You have an idea of what you think the market rents would be? You got it's below 100 or 200. You want to give it 1850, Jack and stick with the napkin.

Sure.

Eighteen fifty times. Yep. Y77200. It was built in 1970s.

Yeah.

Norfolk. 26 unit I think I can do in this area. Given that rents are high, I can potentially do 40% expense ratio for this property. NOI 346,000 Norfolk, Virginia. 6 and quarter percent cap rate. 6 and quarter cap rate. Or let's make it safe. 6.5%. 6 and quarter. To be. To be to my understanding is fair. So let's do 6 and quarter percent cap rate.

Now.

What's their current occupancy? 90%.

Okay.

Okay. So we came up to a stabilized value of 5.5 million. And any idea on their. Their the current condition of the property? Cap hacks or age of the roofs, H Vac and everything like that.

So they Said I'm currently undergoing renovation, so they're renovating the property right now.

Okay, Any. Any. Any. Any idea on, you know, what, the current age of the roofs, H vac, or any different maintenance issues? Okay, so let's assume, since we already assumed $100 increase on the rents based on current rent. And so we can't just assume like $10,000 per unit for the renovations, plus, you know, to resolve any defer maintenance issues, assume like 226 unit and 260,000. All right. That gets you a maximum allowable offer.

Drumroll.

What are they asking?

5.2.

5.2. Jack thinks we can be it. Oh, my gosh. 5.2.

Oh, sorry. 80% discount.

Ah.

Let'S. Norfolk, let's play 100%.

Sorry for that.

But that's good validation. They want. They expect you to pay, right. Market cap. Right.

Minus your 260.

They expect you to pay market cap. Especially if there's no value add. You know, if it doesn't need work, it doesn't have room to raise rents, then it's hard to make deals work because there's no value add.

He thought that was too high of a number.

Even entertainment. Okay. Yeah. I mean, for that market, Northern Virginia, if you expect to. If we expect like pay 80% of their stabilized value, it's gonna be really difficult. That's just a really hot market there. Yeah.

So you may have to be 85, 90.

Yeah, but that's our return matrix. That's what we want to get, so we can't compromise on returns. So 80%. 4.1. 4.2 million. That's what we want to pay.

So do we move on to the deal analyzer or do we squash it? Remember, our rule is if it's within 30% of the asking, if our Mao is within 30%, do we squash it or do we keep going? This is 80%, right?

80%.

It's 80%. So I would say again, it depends on how picky you want to be. But I would say take it to the deal analyzer and that's what we'll do. Depending on what information. What information do we need from the broker or the seller?

The same thing we need to figure out what's the current condition to try to get their last three years capital expenditure summary and their delinquency report and the current round roll and historical financials. We can run a more deep analysis on it based on the information they can provide.

Speed dial.

What was it?

You got his number?

Yeah.

McCollum.

Oh, sorry. Their Current capital expenditure summary listing their last three years total capital expenditure and their current delinquency report.

Know what we're really calling the house, though. We have all the information.

Their current round row, most updated round row, Railroad round row. Yeah, sorry. Accidents. And their historical financials. Last 12 months. Historical financials, I guess it would be.

No, we don't have that. Is not a T12.

Okay. Can they provide some sort of financials?

Yeah, T3, T3 or whatever.

Exactly. You got to get something.

And one more thing. Per day. Per day, we're saying that 100, you know, 1750 current rent, that's their current base rent, plus other incomes. We need to know. Yeah. Including other incomes, that base run plus other income get to 1750. So we need to bring. Break it down, like what the current base rent is. What other incomes are they charging? Does that include, like, utility reimbursements or not? And these are all the things we need to validate. We can't just trust them saying, oh, these are the total income.

So next step, we need a T12 and rent roll or something close to that.

Yep.

You want us to call and get it? So are you going. All right.

Yeah.

Yeah. What it do you have? What do you have? And where does it originate from? I mean, where do you find this? Oh, you're direct to seller. Okay. That's not a broker you're talking to.

So it wasn't a broken.

Okay.

It's a principal owner, as far as you know. Okay.

That's gotta be tough.

Seventeen fifty.

Seventeen fifty. Including other incomes. Including other incomes.

But y' all have talked to him since the VA talked to him, and he said he didn't have. He just didn't want to send you financials. He was trying to sell the product. What's. Don't ask me. I just bullshitted with him. Oh, that's good. Well, congratulations on being able to do this.

Some damn notes.

Yeah, that's. That's your. It was awesome. Yeah. Oh, here, just sit your hand.

All right, all right, let's give it up.

Well, we can call back and say. Well, we can call him back and say, look, I'm standing there with a bag of money. What's your name again? Sorry. Becky. Say, Becky came to me and interrupted my nap. Since she had a deal.

I think.

We just call them. Call them, Say that there's nothing wrong with calling.

They'll give you number 200, a door. Do you want to. What do you want to f. What do you want to focus on? Like, why, how you came up with that number. Like why are you.

Yep.

Cuz if I, if I do see.

Is where we're at from a rough estimate.

1750 times. Yeah.

Point.

Hold on a second.

Yeah, we're at 160.

What you use for expense ratio.

400.

Yeah. So if I took 12 times 0.6 divided by point. What'd you say cap rate?

Six and quarter. That's Norfolk. That's decent area.

Yeah. So if we were all in at an 8, you'd be okay because it's a good area at an 8 cap.

Yeah.

So using my little formula I did earlier, 12 times 0.6 divided by 12 times 6.25. 0.08 is 90 a unit. Using my little factor I did earlier. 90. I mean 90 times rent. So 90 times 1750 is. One hundred and fifty. 150 ish. Your door, is that where we are? Was 157 5. So yeah. I can just tell you, man, the 6 cap, what is it per door?

Six and a quarter.

But what's it worth per door at market?

Oh.

That's where I want to focus with 2013.

Oh, so you need to subtract the.

Yeah, but he knows what it's worth. It would appraise for 200 a door.

Yeah.

So I can't really beat him up on his thing. I just like I was looking for a little meat on the bone. Right. There's no meat at 200. You're looking for different type of buyer. So you're not negotiable. You know, we're not going. How long ago did he buy it? How long has he owned it?

Three. Three years ago.

Y' all just making that up. All right, let's call him.

So he said three years ago.

Let's call him.

Yeah.

And you know, if you had co star or something, you could see what he paid for it. It's kind of nice to know, but it's kind of irrelevant. They say it's irrelevant, but it's nice to know. What's the number?

477. 4061.

What's his name? Rico. Jake?

Brian.

Brian.

Brian. I always need. I always Forget to ask. 26 years. Norfolk. Do we have an address or at least name of the property? It's always a little better when you can say that. You have a. If somebody Google address real quick.

12:19 East Ocean, Norfolk. Looks all right.

Obviously I typed in her own. I had 773-477-4761. What did I get wrong? Right.

It seems.

It seems like that property has A seven zero three. Okay. 4061.

Yes.

They have a garage.

These. These units have a garage.

To this question, but I'd like to have you look at it anyway. So this is a property that my VA actually called the owner. The owner said, talk to my agent. I called him. I called the owner. He said, talk to my agent. So I talked to the agent and got some information from him. And then I've been kind of an email correspondent, so I'm a little further than just, you know, initial broker call on it.

Good.

They don't have a T12. It's. What do they call them? Unsophisticated operator. The guy owns it, operates it himself, and he's. He's just ready to get out of it. So there's a few factors there. I normalize the T3 to try to get it, you know, so we have kind of T12 numbers.

Where'd you get a T3 from?

That was from the agent. Yeah, they're putting it together right now.

I don't know how they have a T3, but a T12.

So they've been working with him to try to get his financials together.

While they're putting it.

They're putting it. Yeah, while they're trying to get it together for going on the market.

We're racing this.

I can do it.

Or as I do.

I got it. You're right.

How many units?

This one's 20 units.

20 units? Where at.

It is in Leander, Texas, about 30 minutes north of Austin. What.

What's. What's the name? Say it again.

Leander. L, E, A, N, DER. Probably other syllables in there since it's Texas, but okay.

20 units. All right.

Do you want the unit mix? There's. There's 16, two bedrooms. And there's four. Three bedrooms.

Unit A. Market rent.

Market rent for this two bedroom. Should be 1650. Three bedrooms. I put at 2000. I'm seeing a really big range.

Okay, so let's go.

But that should be conservative. Got it.

It's a little bit complicated, huh? All.

Right. 2009.

Wow.

80, 82, 86,000. Population is not a small. Not a real small place.

Y' all can do this. Y' all can do this on your calculator. Go ahead and get your calculators out. We got.

Dang.

That kind of damaged my ear. Does it damage your ear? I was right there.

What?

Sixteen units times two bedrooms each. The market rent first two bedrooms is 1650. So there's 16 of those 16, two beds. Sixteen hundred and fifty dollars per month in market rents gives you 26,400. Okay, that's for.

That's monthly.

Monthly. And then we have four units. That's three bedrooms. That's $2,000 per month in market rent. That's $8,000. We add those together times 12. Make sure you're following. 412,800.

And what's the current occupancy of this property?

95% perfect.

And 95% occupancy. So for a 2009 build property in lender taxes close to Austin, I would assume 40% expense ratio. And to be honest with you, I think the market can expect. For some buyers, they can expect lower than 6% cap rate for this property. That's what I've seen all the time around Austin, Texas.

Why do you say 60% expense ratio on a 2009 property?

40% expense ratio.

Oh, 40%.

I'm sorry, 40% expense ratio. No.

Who's got it?

247,680.

2. 47,680. Is that right?

Yes.

All right, Great job.

All right, so for this location 2009 built, I would use 6% market cap rate because some buyers would like. I said they would like to buy this property for even below 6% cap rate. So stabilized valuation, Six percent.

Mm.

And at 80% of the value. 3302, 400.

See if we can move it up a little bit.

Put yours back that way. Okay.

And then in terms of capex for a 2009 Booth property, did they mention about, you know, the age of the roofs?

It says new. Okay, but they didn't say age.

How about H Vac?

Don't know about H Vac.

Okay, let's assume. And for this particular deal, I would say 20 unit. Let's just assume $100,000 for different maintenance and for some basic renovations. So let's do capex of 100,000. Came up to a maximum allowable offer of 3200. 2. 400.

What are they asking?

They're at 3. 4.

They're at 3, 4.

Yeah.

They're at 3.4. And this is. This is kind of where I want to see what the next layer to this looks like. He said the offer needs to be. It needs to start with three. So there's a little bit of wiggle room, but not a lot.

3.000001. Yeah. Like the price is right. Different. Did we. It was this actual rent. So did we do a market rent?

That's market rent.

What's the in place?

So in place. And this is where, this is where it gets a little more complicated for me personally. So in place is flat at about 1450 for all units, whether they're classic or Renault. He has two that are renovated and he's charging the same rent.

So how confident are we in the.

Market rents that's supposed to be conservative? I mean the research that I'm doing shows anywhere between like 1600 to 2000,000 for a two bedroom and like 2000 to 2200 for three.

Do you know what the units look like on the inside?

It's well maintained, definitely classic. I mean the 2009 units are. They're original. The renovated units are granite, stainless steel.

But you don't think you're having to do that to get to this.

Yeah, I mean these are, these rents are post renovation rents or for classic.

For rents for classic units that should be post Renault.

Oh, yeah. Then we need to increase the budget then.

Yes. What I'm thinking the Capex needs to be higher.

Yeah.

So their om said 7,500. I think that's obviously optimistic.

7,500?

Yeah.

Per unit.

Yeah.

Times 20 unit and then plus unit exterior probably.

So the broker, the om saying hey, you can get this lot higher wrench. So you come in and make them real nice. And that is the place. So that's, that's the good news. Because if not, why would they be selling it less than market value if it didn't need.

Right, exactly. How many units have been renovated?

2.

So we renovate 18. So 17. 7500 per unit for unit exterior renovations and plus $100,000 for exterior.

You know, but he's only getting 1450 for those two. Even the two that they supposedly renovated.

He hasn't done anything with rent that's flat across the board, two bed, three bedroom, no pet rent, no parking. There's washers and dryer hookups, but he doesn't offer washer dryers. I mean there's.

Are you near there?

Not anybody.

I'm dfw. I've got a brother in law out there that could actually go too far.

Is it. How far was it? An hour and a half.

It's close to 3 with traffic. Yeah.

I looked at on the map. I forget how big Texas is.

Everywhere is three hours away.

Yeah.

Lawton, Oklahoma is a lot closer actually.

So Mao is still in the threes.

Perfect.

$3,067,400.

Next step is. I think I can make and get to three if everything checks out. I still like, still like competition, you know. I mean, I always think. But don't assume stuff, you know, you may be right. Good timing. But if there's multiple people looking, making offers, makes it harder to get that discount you want because everybody would like that. Right?

Yeah.

You like to buy things at a price where you could tell 10 other people and nine of them would say, man, I wish I could have got it for that.

Yeah. So there's another thing.

So.

This pricing assumes that you're going to renovate the rest of 18 units, but that doesn't mean the market can hold it up. Right. So maybe you only need to renovate 10 of them. But yeah, let's do a market research, see the demand for these premium units on the market.

You're running that same calculation. 40% expense ratio at 1450 rent, the NOI is 208. So I like to do that. If you, if you didn't do a thing and just kept operating it, then you'd be 208,000 in OI. And if you paid 3.3.0674, that'd be a 6.8 cap. So you're still ahead of the game. You know, if it, if it looks good running it the pro forma, then that's a good thing to do. Is just like if I just took over tomorrow, you know, it didn't do anything but run it. Well, you still got to run it.

Well, yeah.

And again, we're not, we're not adding additional rent revenue. That's tomorrow, Jonathan said. But we're also not subtracting delinquency and lost the lease.

And did you assume 1450 flat for all units?

Yeah, just 1450. Oh, I'm sorry. Yeah, I used all 1450 times, 20 times 12 times 0.6 was 208.

Yeah, that makes sense. Well, yeah, that seems like a 3 million range. It really could be a good deal. Even you assume 10% economic occupancy.

Yeah, well, it makes it a really me being comfortable saying it could be a really good deal because it's 2009 near Austin, Texas.

Yeah.

That takes away a lot of other concerns.

And when you're talking about not doing any kind of Renault to it, I mean, that's something that could be done in steps, as Jack was saying, and where the rents are flat. My thought was, well, you know, you could start charging for some of the common things, I think. I don't think there's build back for utilities. There's nothing like that in place. So it seems like maybe could jump up if doing the repairs and Renovation or not repairs, but renovation. They said you could fence the backyards on the lower units. I don't know if there's return value there even.

You just put a washer and dryer in unit and charge $50 more more or $100 more. That's also a good return on investment.

Okay, Right.

And when I'm very curious, like, why he charged a flat 1450 for the two and three bedrooms. How does that happen? Does he rent them out to one corporate or, like, he just doesn't know what he's doing?

No. And it's the 1450 is the average. He's got some at 14, some at 15, but it's average. So this is like one of three businesses. He runs a construction company. This is a property he just had the vision for to build on some land. It does have a lot next to it where it's. You could put 23 more units.

But you're dealing with a broker, right?

Correct. Yeah, his agent. But.

So the.

It's not on the market. On the market.

You know what they're in. AI is or you said he doesn't have it. They're putting it together.

They don't have it.

Based on trailing 12, just T3 annualized.

Yeah. So just.

I mean, a big question is, why are they selling the 6.8 when Jack's saying that people will pay sub 6.

Yeah.

2009 property, like, why hasn't it sold?

Why aren't I agree?

Why aren't people offering 3.5?

That's why I wanted you to look at it.

Has it received any offer yet that I don't know.

Find out if they've got offers. So, I mean, they're. No, I. Based on the normalized T3 is like 284.

284,000.

Yeah.

Well, that's good. But what the guy may be saying. I mean, the guy may want 3.7. He just may be saying, you got to be in the threes to even be in the.

Yeah.

Conversation.

Yeah. And he's saying three fours, you know, asking three, four.

Yeah. So there you go.

Okay.

That his numbers are kind of off. Maybe they know. You know something. He's got some squirrely numbers in there. So they're trying to put together. All right.

How do we get to the bottom of it?

We're there.

Let's call him.

Want to give him a call?

I talked to him, like, gosh, two hours. But I talked to him earlier when we were calling.

Another good question to ask when you're early with a Broker, even if it is a glossy offering memorandum. Is, is this going to go all the way, like full cycle, what they call it to, you know, call for offers, like out there for 90 days where every buyer in from here to China can get an offering. Or if I get you a good number, would they go ahead and take it now?

Okay.

And the broker will say, well, I'd like to talk him into it. Yeah, I think we're, you know, they want to see all the offers kind of thing. Because like then you're saying like, well, what would it take? Like I'm coming in right around three. But what would it take for him to like go ahead and move on with us? He may say, well, if you get.

Three, three or whatever, happy to let you work your, your Larry magic. If you want to call him again. I told him that we'd crunch some numbers and get back to him, so. But I've not done the full analysis on it.

So why don't you call him then if you have the relationship and then pass it over to us.

Okay.

You want to do it now?

Yeah, we can call him, call him now if you give me what else I need to ask him. Tighten up numbers.

Well, you could just say, hey, I got my partners here and I just want to ask you a few questions and then introduce Larry.

Oh, okay.

Oh, like hand with the phone.

Yeah, okay, that'll work.

Seems interesting for two bedrooms, three bedroom unit.

Mix around and I'll say, I'm here with my analysts.

I'm passing to Jack.

Wow, you're gonna say, I'm with my acquisitions team.

I have Jack GPT on the line analyzing it.

Jack GPT.

Yeah.

Two bedroom, three bedroom around Austin, Texas.

Yeah, I agree.

100.

Yeah.

Yeah.

But yeah, you've done some really good presentations on. I think Austin was in there right on trending.

Yeah. I recently look into one of the new construction properties, brand new, and they're asking 1300 for one bedrooms.

But what you're saying, you can't really lump this in with Austin. You're saying it's not fair to give.

It's like wrong rock.

So, so you think our six, you think the six cap is still safe?

I'm using six and quarter. Oh, I use. Oh, sorry. I use six.

You're giving a little credit for Austin?

Yeah, I'm giving a little credit for Austin.

So what? An hour outside?

I, I agree, I agree.

I got you. We'll ask that. That's a good question. Why hasn't he raised rent?

Well, and, and they keep Using unsophisticated. Uh, this is not. This isn't his business. So he. I think he's tried to operate it just so he doesn't have bumps.

But did you get these from that specific market that's.

He.

The broker gave.

No, that. That's my research on in Leander, though.

Not all.

Correct.

When you look into the comps, did you consider if they're offering any concessions? Right. One month or two months for rent?

Didn't.

So that market is like because of the massive new construction happening, they're offering like huge concessions. Yes.

Yeah.

That's fair.

That's the big question. Why somebody pay.

Anything around Austin with The unit makes two bedroom, three bedrooms built in 2009. Like, if we pay 150,000 per unit, it doesn't seem like, you know, a way off price. I mean, for Austin, Texas, even. Not in the city, but.

But it's not Austin.

I know, but it's close. Yeah.

She's saying it's a whole different demographic and workforce. I mean, that's where that local knowledge.

Is.

That that's not in Austin's wild. That's in like Round Rock. Yeah, it's not.

But he saw. I mean, he did. You did a study. You called some other. Or you went on apartments.com. right. And you saw two bedroom units for 1650 in Leander.

Correct.

But you don't know if they're at 80% occupancy. Yeah, that's where you really. I mean, you gotta be careful.

There could be a lot of markets.

You could rerun it and go. Okay, let's do 1550 and 1800 and see where that lands. Yeah.

So let's better do these rents first.

Yep.

By diving into.

All right, go ahead.

We got to make some time.

Okay, let's go.

He's trying to come. Same questions, just still holding.

Let's put the speaker on the mic.

Hey, how are you doing? Well.

Doing well.

How are you doing? Good. Yeah. Got somebody I know well, that's from that market. We're just. I mean, it looks like we can get hopefully close, but just a little confused on the rents. It's all, you know, depending on how much we can push those rents. And I know you were kind of explaining to Josh why he has not increased those much, but we were just trying to understand that a little clearer why he hasn't leased the four bedrooms.

There are not any.

I mean, I'm sorry, the three bedroom. Excuse me.

Yeah, yeah. So I mean, the crux of this is that the owners wanted to Stay full, attain what he considers to be able to, you know, fair market rent. His expenses are fairly low and he's not overburdened by his debt. And so he's kind of kept it easy. He is, he is not the most real estate savvy investor in the world.

Yeah.

You know, and so a lot of the way that he's kind of run this has been, you know, hey, here's what I'm looking to get for rent. Somebody comes in and, you know, passes the screening and says, you know, well, that three bedroom at, you know, 1550 sounds good, but, you know, I'd like to pay 1400. 1450. He will oftentimes take that.

I got you. How familiar are you with that market?

Extremely.

I got you. So what do you think is, is conservative on those rents?

I think it depends on the business plan.

Yeah, we're talking, you know, updating the units.

I'll, I will tell you that there's, there's room in the updating, there's, there's room in the rents with a like value add strategy here. Right. I mean, I'm not, I'm not sure how much, you know, you're really going to be pushing on like these unrenovated units. You know, if it were me doing it, I would do a, a light renovation here. There's a couple of other things in particular that we could get into. But you know, as I sit right now with, with, with the renovation, you know, quality and again, I would do a little bit more updating for some of the lighting and you know, stuff like that. Right. But you know, there's, there's, there's. I, I would tell you that you've got probably, you know, 150ish there today. Right. I think that most people that are looking at this probably going to be looking at like a year two renovation. You know, given that most people like in the market are just trying to, you know, manage for occupancy above anything else.

Right.

But like, in a year one, what I would look to do is implement private backyards on these ground floor units and the washer dryers in unit that you lease back to the tenants. Those are things that are certainly achievable, like in a year one here, you know, I think it's, I think it's not crazy to say that, you know, we'd be able to get like, you know, 50 to $100 fee for the backyards. I think that like, you know, $50 fee or so for, you know, the washer dryer and unit is completely reasonable as well. That's kind of, that's kind of standard, right. In the market. Some, some are, some are lower, you know, on the three bedroom versus the two bedroom. You know, I think that there, there should be frankly like a little bit more, you know, there should be, there should be more rent obviously charged to that three bedroom unit right now. You know, to be, to be fair, that three bedroom unit is not like a different size. I mean, it's the same exact size of the floor plan. I'll tell you kind of where. Yeah, because he, he built all of these, he built all the units to be like uniform size. You know, there this one box stacked on top of the other. Right. So some of the stuff's moved around a little bit, like, you know, the closet and whatnot. But, you know, I'll tell you kind of how we're, how we're looking at it, you know, as is right now. You know, we kind of have our market rents on those two bedrooms, you know, paying to like a 1450 and on the three bedrooms, you know, a little bit more.

Right.

We're at like 1500, like, you know, conservatively. So like $50 extra. Again, I don't, I don't know if you're in beginning, like, you know, 200 extra, given it's kind of a small bedroom. Right. You know, on the, on the renovation side, I think it's very reasonable to be Targeting like a 1550 number here post renovated on the two bedrooms and like a 1600 number on the threes. You know, that's kind of independent, I suppose, of, you know, some of the other added fees that we would be talking about on top of that. So. Yeah, I mean, at a high level, like, there's, there's room to, there's room to push it, you know, but yeah, I think it also speaks pretty strongly about kind of how he's running this right now with, you know, really no online presence. Yeah, there is no. Yeah, like, there's no photos. There's no, you know, there's none of that.

I got you. Yeah. We were initially kind of first run being a little probably too aggressive on rent increases, but we're still, you know, I think bumping close. He said you thought we had to be in the threes to even be in the hunt, but just still curious why this has been on the market so long and nobody's pulled the trigger. Obviously, it's a good market, newer property, it's definitely got potential. And you know, we're typically looking for something we can add value with operations and rent increases in the first year or two or they generally don't know, don't. The numbers don't work. So why hasn't somebody hot donut, you think?

Well, there's a couple of reasons. I mean one's going to be the timing in a lot of this, you know, when we, when you first took this out to market, you know, it's a quiet time of the year. Right. Two is going to be the profile. So like a lot of, a lot of groups that are going to be looking at this like, you know, are just kind of out of the market right now. So you really do thin the herd a lot. And because of that you get all sorts of different, you know, people like a 20 unit asset. Like a lot of the people that are looking at this, you know, would be a first, second time multifamily buyer, maybe like a single family, you know, owner. Right. That's like looking to scale up into multifamily. I mean we've got, you know, more sophisticated and experienced, you know, operators too. But you know, then unless you really got like the real estate acumen and kind of know what you're looking at, you know, it could be hard to a long time because we didn't really have true financials. Like we didn't, we didn't really have like a team, you know, I guess we've got like a T4 at this point. I mean we didn't have this put together until like fairly recently. And so you know, we've had, we, I mean we've had to kind of walk through like how to put this all together for him, for example.

Yeah, I got you. So if you get a number that.

Very good books and records, don't get me wrong, like there's, you know, it's all, it's all there on his end. I mean he's got everything but it's, you know, it's, he doesn't have like a, you don't have software.

Not his primary focus. And who's managing it for.

He's self managing it right now. He used to have manager. His manager was actually his assistant for his businesses and he got fired and so the manager was, was, was no longer there now, you know, part of, part of the problem just timing wise too. I mean, you know, basically like a little under probably a month into marketing this, he had fired the manager.

Right.

Well that time of year too also had a couple of these leases come and do and so they kind of dropped the ball on the changeover with these renewals and everything. So we did dip down in occupancy because of that. And, I mean, he kind of got his feet under him and now, you know, obviously has it all leased up again. But, you know, it's kind of took. Took a couple of bumps in the road to get to where we are.

But, yeah, you know, we're finally kind.

Of at that point where, you know, ready, ready to go. It is hard to, obviously, to look at a deal with no financials and understand how it's going to be operating and, you know, very.

Yeah, we'd obviously have to dig into that more. But, you know, we run our pro forma on what we think we can do. It sounds like it could be good timing. But if you said asking 3.4, we need to be in the 3. So if we get you a number that you think is reasonable, are you going to try to push that through or y' all waiting for this to sit out there a good while longer and try to generate more offers?

Nobody's got any interest in, like, waiting to, you know, until we find that one in a million, you know, like, that's not. That's not what, you know, this is, you know. Yeah, he's got prices that, like, he's gotta.

He's got.

He's got a price that, you know, to be honest with you, I think it's completely, completely fair. Like, I don't think we should be transacting for less than. For less than 3 million and. And also just, you know, so, you know, I mean, like, we've got a handful of other groups looking at this and, you know, probably pretty close to, you know, pretty, pretty close to, I think, you know, selecting a buyer. Right. But, you know, nothing in the next, like, day or two necessarily. Now, you know, some of the groups that have offered on it previously, you know, now that we've got, you know, full financials, everything going back, I mean, we've got counters out to. To another two people as well and, you know, expecting another offer here in the next day, I believe from group, we'll see where they kind of come in. But, you know, again, like, asking prices 3.4, we've got room in there, I'll tell you. You know, it's. We got to be between, like that three, you know, three, four number, you.

Know, if it starts between three, four and what?

We're definitely between that three.

Oh, yeah, yeah, yeah.

Three, four.

I got you.

Yeah.

Right.

So, yeah, so, I mean, if it's. If it's, you know, less than 3. And y' all don't have any, like, room. I don't know if it's worth, you know, spending much time on to. Got other people there.

Yeah, no, really, really appreciate you telling me that.

Of course, of course.

You know, get to that.

Yeah.

And, you know, it's. It's good timing to your point, because, you know, I mean, it's the start of the year and everybody's feeling like a little bit. A little bit refreshed. Right. I mean, frankly, we lost a, you know, a month and a half through the holidays. Right. And, you know, nothing's really getting done between Thanksgiving and Christmas. And so, you know, here kind of at the start of the year, we finally got a grip on, you know, the trailing financials and everything. And I was telling Josh earlier, I mean, as y' all look through anything, I mean, if you guys have any questions, like, let me know. I mean, you know, he's. He's a. He's, you know, not the most experienced real estate operator in the world, but, you know, very reasonable guy. And I'll definitely on top of everything, you know, sometimes. Sometimes take a little bit of coaching to, you know, put it in a way that makes sense for, you know, U.S. real estate.

So let me ask you, what's most important for y' all in the offer? If you got somebody at 3.3.05 and somebody at 3.15, what would. What would make you accept that lower offer?

You know, I mean, we can talk about, you know, earnest money and, you know, all that, but I mean, I think that there's a couple of things. I mean, you know, obviously prices, pricing is always going to be a factor.

Right.

But, you know, I don't know if we're talking about leaving like, $100,000 on the table. I think that, you know, if we feel reasonably good about, you know, the higher offer, he's probably going to take that. But, you know, if we're talking about, you know, tighter closing timeline, the certainty of close is a bit. Is a big one, right? I mean, you know, yeah, sure, it's nice to see, like, you know, bigger earnest money deposits, but at the end of the day, like, that's not, you know, what. We're not in the business of collecting earnest money.

I get it. I may have given you too broad a range there, but that's helped. Just kind of want to see what was most important is does he own. I guess he has debt on the property?

Yeah, a little.

He's got. He's got a loan on It. I mean, it's not super high leverage or anything, but I know Josh had brought up the point about, you know, possible like, seller, seller carry or seller finance. I mean, honestly, we've had that come up a couple of times. I mean, it's been a. It's been shot down pretty consistently. I got, you know, straight seller financing at like 70% or something like that. Wouldn't be doable anyway.

Yeah, I got you. Yeah. Normally, don't mention that too quick because usually when somebody calls and says that out of the gate, they're maybe because they don't have money or ability to close without that. Right. But always ask because it does give us the ability to make a higher offer. But, yeah, we're not one of these groups that are going to send you four different offers with all these kind of crazy, creative things. But just wanted to ask, just a lot of times it does benefit the seller to get a higher price. And I think you've told me what I. What I need to know. When would we. So sooner we get you something that is in that range, the better it sounds like.

Yeah, I mean, look, I mean, I want you to put something together that you all feel comfortable and confident in. Right. You know, I don't think it benefits anybody to, you know, write an offer that you can't stand behind.

Oh, 100%. Yeah, right.

But. But, but, yeah, I mean, look, you know, sooner the better. Absolutely.

Go ahead.

Sorry, I was just gonna say, just as far as, like, you know, our timeline and everything, you know, I don't necessarily know what this week holds, you know, for next. Next week. I mean, on. On our end, you know, we're going to be out at NMHC in Vegas, and so we will be fairly out of touch. Like, um, but, you know, for calls, emails, texts, whatnot, but maybe a little bit of a delay. Um, so, you know, if y'.

All.

If y' all need anything, I mean, I would. I Honestly, I wouldn't. I wouldn't recommend, you know, letting it drift into. Into next week, though, to be honest. I would. I would recommend trying to put something together sooner than later.

Okay. Yeah, I got you, man. Appreciate it.

Uh, he said that y' all have a partner that's in Austin, too. I mean, you know, we're happy to go meet him out there and. Him or her. Yeah, you know, for. For a tour as well.

Yeah, sounds good, man. I appreciate it. Hey, are those. I assume those are original roofs, right?

No, the roof is actually replaced three years ago.

Oh, wow. Okay. Well, that's. Good. All right, man. Thanks a lot. We appreciate it. Have fun in Vegas. We'll.

We'll have a little bit of fun. A lot of work, but looking forward to that. I. I appreciate. Well, yeah, y' all take care, and let me know if y' all got any questions.

All right?

Thanks a lot.

Thanks.

Appreciate it.

We'll talk soon.

Yeah, thanks.

Brokers are good at telling stories.