From NNN to Millions: Cherif Medawar on How to Scale Your Business with Triple-Net Investments

Hello and welcome to Raise Capital Legally podcast and YouTube channel, your go-to source for insights on raising capital the right way. We dive into topics that matter most to real estate syndicators and fund managers with live Q&A opportunities before we wrap up. I'm Krisha Young, your, your co-host, Business Development Director, and Client Success Coach at Syndication Attorneys, and joining me is attorney Kim Lisa Taylor, the founder of syndication attorneys. Now, before we get started, please note that audio and video from this event will be posted on our podcast platform, YouTube channel, website, and social media, and will be made available to the public. You can go ahead and ask questions at the end of the broadcast by raising your hand or typing it in the Q&A. Information discussed during this event is of a general and educational nature and should not be construed as legal advice. Now, today we've got From Triple Net to Millions, Sharif Medawar shows you how to scale your business with triple net investments. Kim Lisa Taylor and Chrisha Young welcome back Sharif Medawar, renowned investor, fund manager, and educator, for a deep dive on how business owners and entrepreneurs can scale using his triple net NNN lease model. Sharif breaks down on how triple net properties work, why they provide stable and predictable cash flow, and how you can leverage them to expand your portfolio or business without unnecessary risk. And with his assistance, he also shares practical strategies for securing deals, raising capital, building win-win partnerships that fuel long-term growth. So whether you're just starting out or ready to level up, this episode gives you the roadmap to scale your business from triple net to millions. Hello, welcome. Hi, it's nice to have you back because we had you on the Beyond Multifamily event that we ran earlier this year, and your, your Your piece was very popular. You had a lot of really beautiful information to share. So I'm excited about this today. Hi, Kim.

Hi. Hey, Krisha. Hi, Sharif.

Hello, Kim.

Oh my gosh. Sharif and I go way, way back. Gosh, I probably did more, more than 10 years, maybe.

Over a decade. That's true.

Yeah.

Yeah. I think I met him at an event. We were sitting next to each other at a table and got to know a little bit about what he's doing. And then he's gone on and done tremendous things with his real estate investment knowledge, and he's made an actual impact in Puerto Rico, in San Juan, by upscaling the entire downtown area. So we want to see what Sharif does and how you might be able to do it too. And he's got some wonderful offers here that you guys should all be hearing about. So Sharif, thank you so much for coming.

Thank you. Great. Well, you want me to get right into it? I'm excited about it.

Yeah. So, so you've built a lead— a reputation as a leading voice in the triple net space. Can you start by explaining what is triple net investment and why it's so powerful for business owners?

Cool. Yes, I like to start with the definition because people get lost sometimes with what does he mean by that. There are so many different types of commercial properties. Actually, you can more or less say there are about 12 different type of commercial properties, from apartment buildings to storage facilities, assisted living, and so on, hotels, etc. But what I like most is the single tenant building, which is the standalone buildings where you have, let's say, Jack in the Box or a Starbucks. They are standalone, meaning that building has one tenant. That's why it's called single tenant. And it's triple net because the tenant pays you the lease, net of property tax, property insurance, and property maintenance. So if they say we're going to pay, say, $8,333 a month times 12, that's $100,000 a year. They're going to pay the $100,000 rent, and then when the property tax comes in, let's say it's $15,000, they're going to pay it. Property insurance comes in, let's say it's $9,000, they're going to pay it. So you literally, as the owner of the building, the landlord, the fund manager, syndicator, You own a building like this. When you lease to that type of tenant, that tenant usually wants the building, that single tenant building, for 10 to 15 year lease. They pay it, they agree to a lease amount, they give you escalation every year, usually about 3%. Sometimes they negotiate the escalation to— the escalation is the rent increase, uh, instead of 3%, sometimes they say for 5 years we're gonna stay with the same lease, then we're gonna go up 10 to 12%. the next 5 years, etc. Now, they also handle then the payment of the tax and the insurance, and they maintain the building. These type of tenants also give you what's called the corporate guarantee. So if you lease to Jack in the Box and it's the national tenant, they will lease it from you for the 10 years and they will give you the corporate guarantee, means that that lease is guaranteed by the corporation, which is publicly traded. So it's just a wonderful thing to have because they literally do a direct deposit into your bank account as a landlord, as an owner, and then the bank takes that payment and now you have a beautiful net income coming in. So whatever you negotiate, you end up with net because you have no expenses on the property except if it's structural damage. The roof leaks, there is a problem with the flooring or something, then the landlord is responsible. And if you also want to have a tenant that covers the structure, like if you lease to Walgreens or bigger tenants like CVS, etc., you can sign a quadruple net lease, which is net of tax, insurance, maintenance, and structure. It's also called an absolute net. You could see it also advertised as no landlord responsibility. So if you're an irresponsible guy or lady out there, who don't want to deal with anything, want to be totally free, you can do an absolute net. The triple net is very advantageous because you don't get many quadruple net. A lot of the times the tenant will say, I'm willing to sign with you for 10 years for that location, and I'll pay you X, and we're going to increase it every year, and, uh, we want to come in, but we want you as the landlord to kick in some money for the TI. What's TI? Is tenant improvement. Give me some tenant allowance. So when I get a building under contract, I'm usually getting a building that's a single tenant on a busy street with good neighboring tenants. And then I put it under contract and I start calling these national tenants, and all I need is one tenant to call me back. So when I call that— the tenants and I leave them a message, I usually also follow up with an email with a video and some description of the property I have under contract. And then when one of them calls me back, they usually don't even call me. They send an email and say, we're interested in the location. We did some studies on the traffic and all this because they have everything online now. Say, we would like to have a Zoom call to discuss some details. And they give us usually a couple days, like, how about Tuesday between 2 and 4 or Friday 2 and 4? I always choose the earlier date because I have the property under contract for so many days, so many weeks. We got on the call and they say, we're interested in the location. Are you willing to, um, give us some maybe $100,000 tenant improvement? Because we probably want to upgrade the kitchen. And usually those tenants are QSR. QSR is the quick service restaurant. QSR is quick service restaurant. That is one of many different type of tenants that like to be in single tenant locations. So you have like the Subway, the Jack in the Box, the Burger King, the McDonald's, the Starbucks, Foxtail. I mean, there are 4,000. I have compiled 4,500 national tenants in the United States where their business model is to expand, whether through the national company that takes locations or through their licensees and franchisees. And some of them, even when they put a franchisee, You're leasing to the national tenant, and the national tenant subleases to the franchisee. So I get the corporate guarantee, but they're subleasing to a tenant, to another tenant, which is their sub, their franchisee. Why? So they can stay in control, and also they make money. Like I remember I did a deal with Subway one time many years ago, and the lease was about eight thousand. And then I'm talking to, and I give them the right in this in the lease to sublease. to any of their franchisees, licensees, sub-companies, etc. And I walked in, I'm talking to the franchisee, and he said, yeah, I'm paying, uh, Subway $10,000 a month. I'm like, oh my gosh. So they're paying me $8,000, which I was very happy with, but they're getting the franchisee to pay them $10,000. They're making $2,000 a month plus their marketing fees, their gross sales revenue, etc. So these franchisors are amazing. The franchisees are happy because they make money based on a system. And I, as the landlord, I'm happy, and the local community is happy because that building was vacant. So it's a game with no opponents, really. It's a game where everybody wins. So, so, so let's talk about a strategy. Okay, so how, how do you make money with this, all these great concepts? I want you to imagine that this is for your syndicators and fund managers. I know you have much more advanced people, Kim, and so I enjoy being on your shows and I really enjoy your work. Amazing. I mean, just prepping for this call, as we talked for 2 minutes, I just learned something from you. You just amazed me on 1031 Exchange. Like, oh my God, you're so right. I didn't think of this and that. But anyway, so imagine you're driving on a busy street and you see, let's say, 2-way street. You see a single-tenant building, standalone building, with a sign that says vacant. Now, a lot of signs say vacant. Why? Because probably the broker Got a call from the owner who said, "Look, I lost my tenant. I used to have, I don't know, XYZ tenant, and they just left. Their lease expired, and they need a bigger space than this one, and now sitting vacant. Do you think I can rent it or sell it?" Usually, the broker will say, "I think we should try to sell it and get you from under it." Like there's like a lingo for every type of business. And why would they say that? Because they make bigger commission. Selling it. So, so they put the available sign. So if a tenant calls them, calls the broker and says we're ready to lease it, they'll probably lease it. But usually when we see that, we call the broker. So the person seeing it, you call the broker and you say, hi, tell me a little bit about that property at 123 El Camino Real. And the broker will say, well, it's a single tenant building, there is a drive-through, the property is 2,000 square feet, the property is a second generation tenant. Second generation, like that means used to be, let's say QSR, built for QSR, and now they left. And it's, I don't know, let's say 8 years old, 10 years old, something like this. And we, uh, would like to sell it for, let's say, $750,000. And you say, oh wow, you know, this is sitting vacant, uh, you know, what's, what's the rent I should expect? And what's the— I'm looking at the tenants, this is pretty good. Let me get back to you and I will make an offer. And then you do some studies about what the values are here and there, but then you're going to be able to lowball them. Let's say you tell them $600,000 is my best offer. It's sitting vacant. I'll put it under contract. Back and forth. Let's say you go under contract at $700,000. Let's say that's what you're going to do. So what you're going to do is the broker will send you the contract and you're going to actually sign that you need it under contract for 45 days for due diligence and an additional 15 days to close. Sometimes you can put it under contract 60 days. Um, it depends. Like this time, uh, at the end of the year, usually get them under contract 60 days and then 15 days additional to close. When you have it under contract, you're going to put little money as earnest money deposit. We usually put $5,000 and we show earnest— we show the proof of funds that we can buy it. Um, if you have credit lines from the bank or something like this, if you're a fund manager or syndicator, you can show, hey, I'm a, I'm a syndicator, we can move forward. But we need to do due diligence. So now you have the property under contract. You can start making a little video and making all the information about the property to get pictures and all this. And you compose an email and you actually contact the national tenants and you start smiling and dialing, I call it. And you leave them a message. Usually they're not going to pick up. And you say, hi, my name is Sharif Medawar and I have a property at 123 El Camino Real. It's a single tenant building. Neighboring tenant, there is a gas station around the corner, is a Starbucks across the street, the Jamba Juice next door, Burger King and the other block. And I have a video here of the location. Please call me back. I'll also send you an email with the information. Subject line is 123 Camino Real, Kansas City, or Miami, or whatever it is. This is the same business model works worldwide, by the way. I have people did it in Malaysia. This blew my mind away. And they rented it to 7-Eleven. She inherited the building in Chinatown, Malaysia, and she got 7-Eleven there. That was crazy. But anyway, let's talk US right now. Canada also works very well. I have somebody did it in Cancun, by the way, for a tire company. Um, you could do this automotive, you can do this for pharmaceutical, etc. But let's just stick with the quick service restaurants because they're always growing. They did even well during COVID These guys are amazing. People have to eat. So you're smiling and dialing, and then you're sending an email. Sooner or later, somebody's going to reply by email. We're very interested in this location. We need to talk to you. And so then you set up the time, you go on the call, and then they say, okay, well, how much do you want for rent? So let's say you want— you say, well, I would like, um, I would like, uh, $9,000 a month. They say, well, you know, $9,000 would be too much. We'd like to pay $8,000. And you say, all right, so let's discuss the, the details. How many years are you going to lease? And then you go through a checklist that I teach people what to negotiate, you know, the how many years the lease, uh, with the corporate guarantee, how much is the deposit, when are you going to visit the property to tell me, you know, what you'll need from me as tenant improvement. Some tenants actually— I've had a tenant that said, I just need 3 months free rent and that's it, and you let me do my stuff and then we'll pay you This that you want. Sometimes maybe the first year a little bit lower rent, then we escalated going forward. Like second year, we give you what you want. Like it's a few items. You have eleven items to negotiate, but it's not so difficult because it's a conversation. But you got to know what you're doing. You got to follow proper negotiation. Otherwise, they'll eat your life because they negotiate with malls all day long. But let's say you agreed to. $8,300 a month, which is times 12, is $100,000 a year in rent. Okay, $100,000 a year in rent will actually make the property worth 16 times that base rent. It is something called a multiplier. That's how you make money in real estate. A multiplier is based on the net operating income. There is a formula. Times 16 is what is called the cap rate of 6%. You can back out the numbers and you'll see what I'm telling you. I just tried to give you the simplest way To calculate numbers. So if you have the property under contract at $700,000, and let's say they asked you for $100,000 tenant improvement, and you're going to give them the $100,000, so it's going to cost you $800,000, but it's going to be worth $1,650,000. To be exact, it's $1,667,000 at 6%. But let's say, just say $1,600,000. So you have a huge upside from, from $700,000, $800,000. So you have 9 $100,000, $1 million, $1.1 million, $1.2 million, $1.3 million, $1.4 million, $1.5 million, $1.6 million. $800,000 upside. Now people may be listening to me and thinking, wow, that's exaggerated. Well, look me up, look at my, um, properties. Go to crepr.com, and I have the largest— I'm the largest owner of historic properties in Old San Juan, Puerto Rico. And all I did was One after the other, after the other. I did it 36 times. Then I sold 10 buildings. This is over the years, of course. So it takes me like 6 months, 7 months every deal to be finished, and they make money. Then I sold actually a couple years ago 10 buildings, paid off the rest, and I own most of them free and clear. So, and, and it's just— I'm telling you, one deal, one deal will change your life, okay? And let's say they don't even pay you more than, than, uh, $60,000. Let's say that's all they pay you, $60,000. If they pay you just like $5,000 a month, do $60,000, $60,000, and at 6%, that means the property will go to $1 million. You have it under contract at $700,000, so you have $300,000 instant increase in value. If you flip it and you pay a commission for flipping it, because you put it on LoopNet and told the brokers, I'll give you 5% commission, you still walk away with a quarter of a million dollars back to back. I would say you wait a year and then do it at 1031 exchange, roll the money forward. If you're in syndication and you do one and you raise the money for the down payment and the bank gives you the loan, You put the tenant, you can refinance, literally cash out your your down payment and your tenant improvement money, and hold on to the building with small cash flow. But all your money is out. There is no more cash on cash. It's infinite rates of return. It's economic immortality. Oh my God! I get I get too excited. But you got the idea here.

So good. I love that economic immortality. I love that.

Infinite infinite. Streams of income with corporate guarantee, triple net, and no hassle. There is nothing to manage. There is my— I have, I have Sunglass Hut, for example, and Sunglass Hut just renewed with me. They've been with me 10 years. They just renewed another 10 years. Sunglass Hut came in, asked me for literally nothing. Sunglass Hut wanted— when they wrote, then we discussed the details, the letter of intent. They said, can you just help us with the requirements Because in Old San Juan, um, there is, uh, requirements for the signage because the historic zone right next to where the cruise ships arrive. And we just send them, here is what— how to put the signage. You cannot do Las Vegas lights with signage. This is a historic zone. It has to comply with the history of the location, etc. They've been with me now forever. I put Tommy Hilfiger, I put Burberry, I put Diamond International, one of the biggest diamond dealers in the Caribbean. We're doing a deal right now. I'm doing a deal right now in Decatur, Georgia, with one of my students. So we train people. I decided to expand by actually— and, you know, Kim, being in a fund management position, syndicator, you have—

you can—

you don't expand with your own money. You expand with investors' money. You're helping the community. Everybody makes money. So I had— I trained people how to do this, how to go find the ideal building. There are 15 criteria. How to talk to the broker. I give them my proof of funds from my fund. I say, "Here's the proof of fund." If you don't have the money now, you're raising the money for your fund, or you're an individual or whatever. I'll give you proof of funds. So when you talk to the broker, you say, "We're ready to close all cash." And then when they put it under contract, they send me the email that they're going to send to the tenants, and I adjust it for them, and they make a video that I review. And then I give them the national tenants. I give them the script, what voicemail to leave. And how to— as soon as the tenant says, I want to talk, we go together on a Zoom. And I, with the person that is a joint venture with me that I train, and the tenant representative, and sometimes usually there's the retail representative, etc., and then we discuss the letter of intent. And I do all the negotiation because once they see it once, these people can run on their own. And then I go through, uh, how long you're gonna stay, what do you need for tenant improvement, Can you visit the property next week? You know, we're talking to other tenants as well. So this is not confirmed. This is, you know, you're not at the liberty to walk away. And we also can deal with somebody else. We're willing to kick in some money for tenant improvement. We're working with you on this and that. And, and when we have all the letter of intent kind of bullet points agreed, I send it to them by email. I copy my joint venture student that I trained. I call them students, but they're syndicators, the people that, you know, Have done work with you, or you know they've been up and running for a while. They want to diversify not everything apartment building, apartment building, apartment. Okay, diversify a little bit. So with the corporate guarantee, if the market goes up or down, you're getting paid by a publicly traded company. These people literally print money.

All right.

Okay. And then the tenants come in, visit the property, and they're ready to sign, and we're done. So now we did a deal. We have right now a deal in Decatur, Georgia. I mean, I've never been to Decatur, Georgia, but this person got the training with me, went— it's his backyard. He found the deal, single tenant. We put it under contract. People can see it online. It's 3900 Flat Shoals Parkway, and we just got it under contract because I had not only a tenant interested to lease at— we have it under contract, uh, we, we bought it at $530,000. The reason I closed because I have 2 people lined up. I have a tenant interested, but they want to do final reviews, and they're interested at $100,000 a year rent. It's going to go to $1,667,000. That's a million-dollar profit on this. And my, uh, my, um, the, the JV partner, I pay them an assignment fee. So when you put it under contract for $500,000 and we line up a tenant that's going to pay $100,000 rent, the property value goes to $1.6 million. That's a million-dollar profit because I'm going to pay him on that difference 10%. It's an assignment fee, 10%. So he's going to get a $100,000 assignment fee. The broker— I bought it from a broker. We're not looking for desperate sellers. We're not looking for people down on their luck and they're dying or divorced. I'm not. I'm just looking at properties on the market. It's not— I'm just going online and trained them how to do it, and it was a group of people. So far we're doing 3Ds with that group. It was 6 people. We trained them. I told them, look, it's going to be a little slow because we're going into Christmas, and we're getting properties right and left. Why? Because the market has frozen on rehab. Construction is too high. Interest still— everybody's waiting for apartment building interest to go down. Banks are calling me to tell me apartment building, give it to you at a discount. I don't want it. I don't want to manage people. I don't want to kick people out of not paying rent. I got national companies. If I kick somebody out It's a national company. I'm not putting anybody out of their home. So, so we're gonna do that deal. We have that, and we have a company that made us an offer to buy it at $1.2 million. So if the tenant doesn't come in, I have the other company as a backup. But we already signed with the tenant now, so we want to wait for the tenant just, um, to see if that's going to happen in the first. So it's happening, it's out there. And even if you make— let's say, let's create problems. Let's create some problem. Let's say you put the property under contract, you have the tenant list, you started smiling and dialing and leaving messages, and every day you're calling 5 tenants, and every day you dedicate like 30 minutes. And a couple weeks later you say, you know what, nobody's calling me back, I'm gonna cancel the lease. Have you lost anything? You haven't lost money. Your earnest money deposit is refundable. You have no downside, but you have 45 days, so don't cancel. Wait. Because all it takes is 2-3 weeks, one tenant will email you. One is all you need. And if it happens, and when they call you, the upside is huge. So I tell you, I've done rehab. I still do some, uh, high-end rehab in San Francisco, California. I have luxury homes that we do rehab. Um, you know, they— people can Google what I've done and all this, but nothing is more profitable than the single-tenant buildings because I'm either selling them Or I'm actually refinancing, cashing out my money, and they continue producing for years. And I've done— my favorite assets are hotels because they're pretty similar to that. Because when I buy a hotel, it's small hotels, I'm not talking like mega properties here, I'm talking like small hotels. When I buy them, usually there's a team in the properties and all this, but it's still a lot of moving parts. A lot of people have to manage distribution channels and marketing. I don't I just want to buy a property and gain more freedom. Buy another property. If I get the tenant, we close. I don't have the tenant, we cancel, walk away. The broker is not upset. Why? We disclose everything. We have due diligence time. And they're able to tell other people, hey, you can be a backup offer because we have it under contract. Creates even excitement for their deal. So everybody's happy with it. And, you know, every now and then you actually, believe it or not, Kim, Since we, we, um, since COVID when we put properties under contract now with my JV partners and I, we train them, we get a lot of national tenants saying we have a franchisee that's interested but they want to buy it. Well, guess what? We're controlling it. So it's like wholesaling commercial real estate with a backup plan of putting a tenant and selling it for even more. Like, what is the downside?

So, all right, let's talk money here.

Yes.

So you're making this sound incredibly easy and it's super enticing and we all want to do it and Krish wants to do it.

I want to— I know. How do I sign up?

Exactly. All right. So, but let's, let's figure this out because, you know, all it takes for, uh, you know, the Big Bang Theory is one miracle, right?

Yes.

We just have to—

Yes. But I'll tell you what the hard part is. But, but go ahead and ask me the question.

Okay.

So we gotta have money first of all for your program so we can get access to you and learn how to do this. Because clearly there's a lot of things we need to learn. Uh, You know, all about what criteria to look for in the buildings, how to speak to the tenants, how to create the video, what should be in it, what, you know, the scripts for the emails, all that. And then, you know, of course, having you on the call to help negotiate the terms, that's going to be completely invaluable. So somebody has to put up a deposit. Who is that? Is that the student, or is that you, or how does that work?

Student. A student puts up the training. The training is $10,000. I've done it and that's how we do it. We've done it for years and it's limited by market. Like, I don't have like more than 3 people in certain cities because it's just— I want it to be exclusive. That's one obstacle. The good news with it is once they do the first deal and assign to me the second deal, they have the money, they have the knowledge, they have access to the list, and they've already known what to negotiate. So they do the second deal.

Let's kind of break that down in bite-sized pieces. So the first-time deposit, what's a typical deposit on?

So deposit. So now Once they get into the training and the program, when they call a tenant, they show the proof of fund. This is all cash. It's going to be an all-cash deal.

What about just getting the property under contract?

Yes, I'm going to tell you. So, so we put only $5,000 that he, the student, or she puts the earnest money deposit as $5,000, which is fully refundable. They have to have that.

Yes. Okay. And then we've got some closing costs. Oh, well, of course, you have to pay the remainder of the purchase price.

They pay nothing else. They put the earnest money deposit, $5,000, which is fully refundable. They make the smiling and dialing. One of two things will happen when they have a property under contract. Either one tenant will reply and say, I'm interested, and we're going to get on a conference call and I'll close the deal because it's a matter of how much I'm going to give them in tenant improvement. Or no tenant will respond because of whatever— maybe it's not the best location, whatever— and they can cancel, get their $5,000 back. If they actually have a tenant lined up and we go on the call and I close the deal from the purchase price they negotiated to the multiplier of 16 times based on the lease, they're going to get 10%. The lowest referral fee we paid was $41,000.

So back up a little bit. So that would mean that you're going to put up the remainder of the purchase price.

Oh yeah, exactly.

Plus the closing costs if they do the JV model with you. But let's, let's kind of walk it through as if a student was going to buy this on their own. And then we'll talk about how the JV model—

Oh, okay, okay. So, so we have, yeah, 3 out of 10 buy them for the, uh, for themselves. They take the training to do the deals themselves, and we still help them. It's perfectly fine. So a student comes in, learns all the scripts and all this. They take a full-day training with me personally. I don't assign this to anybody. So they come to my office either in Puerto Rico or they meet me in Los Angeles based on where I am, but usually it's in Puerto Rico because they want to see my portfolio there. They want to see buildings, etc.

Got it.

And, and what happens is they leave, they go, they identify property within 3 to 5 mile radius of where they are, they contact the broker, they put it under contract, and they send $5,000. They have to have proof of fund because in commercial real estate there's no pre-approval or pre-qualification. We're good there?

Yep.

They put it under contract, they have proof of funds, or they have a credit line with the bank or whatever, and now they start smiling and dialing, contacting tenants, telling them about that location, sending them based on what I told them what they do The the voicemail message, how they leave it, the information, what they send in the email, and the attachment, and how to do the video, etc. That is exactly what the tenants are looking for. Tenants are going to start to respond. Some send email with a question. Some say I want to discuss this further. Once they can set up an appointment and talk to the tenant, the tenant is going to say how much is the lease, and they may have questions like when did the Starbucks? I see it on Google Earth. There was no Starbucks, but the video you send, I see Starbucks. When did they open? You know. And you'll be able to answer those questions. If you don't have the answers, you will get it from the broker who, who has listed the property. And at that time, the tenant will say, okay, we're very interested. Let's write a letter of intent of what we discussed, and we're going to send somebody to go see the property.

Mm-hmm.

So then you set the appointment with the tenant. The tenant representative shows up. These are usually the designers and all this to see that the place is viable, that it truly exists. They go in, they take some pictures, and it usually happens within 48 hours of the phone calls because once they want to close on a deal, they want to put it under contract and then start lining up the team. So you're gonna call the broker, open the space for me. I have my team that want to look, and it's not your team really; it's the tenants coming in. You show them, they contact you back and say, "Okay, well, we need we thought it's going to be fifty thousand tenant improvement." This almost like standard. They will well, we need seventy thousand because we didn't realize we have to put a new AC that da da da. Okay, fine. Seventy thousand. So now the student has the letter of intent signed. They have the purchase. They have two. They have the contract to purchase the property for let's you know six hundred thousand, and they have a contract to lease it for let's say seventy thousand a year.

Yep.

So now they can go to the bank, literally speaking, and tell the bank, "I have a property under contract for six hundred thousand." It's a vacant property. The bank's first reaction is, oh, we're not going to loan you on this. It's a vacant property. No, one moment, sir. One moment, ma'am. I have right here letter of intent from Jack in the Box, and they want to come in and they'll be paying $70,000 with a corporate guarantee on a triple net basis. And here is the letter of intent. The bank takes the information and they say, let us do our underwriting. They, the bank, then underwriting department contacts the person on the letter of intent and say, hi, Joanne, We understand you represent Jack in the Box in the western region of the United States, in the northeast part of it. Are you interested in the— Yes, we sent a letter of intent to Susie who's got it under contract. We want to go ahead and sign the lease. How quickly can we do that? Wonderful. We just wanted to verify. Now they come back to Susie, the person who found the property, the student, and put it under contract. And they're going to say, okay, Susie, we need you to put 20% down. You're buying it for $600,000. Because there is a corporate guarantee, big tenant will ask you just for 20% down. So Susie will have $120,000 down payment with closing cost, and she will move into closing the property. She's going to run title, get the environmental report, the stuff that any broker that has listed the property will tell you. Well, I suggest you run these things. So I mean, I go through that in the training, but as a reminder, they will run a few things to close. The tenant, once you close Then the tenant will ask for the lease, and I also have. I give that to the the students attorneys that actually have worked with me for years for leases. I'm sure you can recommend somebody for leases, but there are attorneys nationwide that specialize for these triple net leases. They're experts. They're very good. I always say the attorney is the best friend you could have in a deal, especially commercial deals. Avoids a lot of problems, makes it airtight, and you need an attorney. Do not wing it by yourself trying to tell me, "Hey, do you have a standard lease?" I have some leases on the website. No, no, no, no.

You want somebody that understands the law in the state of Washington, or? Yeah.

Lease is signed. Tenant is in. You give them two months free rent and whatever. You already got their deposit. You got their first month rent, and you give them approval to go get the permits to do the changes and put the signage and get the cabinets and this. And now you sit down and you start getting direct deposits. And I'll even give you a bonus idea.

We had to close on the property. So we got the loan, lender gave us 80%, got put down the down payment, hired the attorney to create the lease, got that negotiated, got that signed, closed on the property. So the remainder of the purchase price closing costs is coming from the bank loan. And then hopefully some money for tenant improvements as well.

All right.

And so now what if the student says, well, I don't have the 20% down, I don't have the proof of funds, I don't have— I don't know how to talk to these people. That's where you come in, right?

Exactly. So some people get trained and said, okay, can you help me with the first deal? I want to be honest with you, I'm not going to assign anything to you. I just want you to help me negotiate. I got a quarter of a million dollars. I can put $120,000 down. I can give them $100,000. And I can pay closing cost up to whatever. Okay, so they're doing their first deal by themselves, but I'm guiding them through it.

Got it.

Or to your point, they just do it completely on their own because I cover so much. My, my training is so detailed. We've done it for so many years now. We've grown like crazy with it. But the thing is, once they close the first deal and the tenant is in, now it's a $600,000, and they put, let's say, $100,000 tenant improvement additional So you're with me so far. So it cost them $700,000. The bank on the $600,000 asked them for 20% down, so $120,000. So the bank gave them $480,000, and they can see that you— that you, the joint— the person that bought the property gave $100,000 of tenant improvement. It is done through the bank because they do some work, they send you the receipt, you release $20,000. Did another work, $17,000, you release. So it's all actually Verified. You want everything verified by the bank. It's a federal entity, if you will. You see, so now they can see that you have invested the 100 tenant improvement, 120 down and closing cost, and the loan is 480. You can literally go back to the bank, which usually has for these loans— there's 20 to 25 year loans and they have a 2% prepayment penalty. You can literally go to the same bank and say, now that you have a corporate guarantee from Jack in the Box or Subway or Ben and Jerry's or Tommy Hilfiger. I would like to refinance and cash out. The bank will not hesitate to give you the whole $700,000 as a new loan because it's better security for them and will cash you out completely. So you get all your money back out based on the lease income. And as a matter of fact, there is a trick that I do. I wouldn't call it a trick. It's kind of a method that I use with the bank. And I tell the bank, I'll assign the lease to you. So I literally tell the bank it is an assignment of lease. So now the bank not only has a lien, a mortgage lien recorded on the property, but they also has a UCC-1, which is a Uniform Commercial Code recorded for the lease because that's the business. UCC-1 is the Uniform Commercial Code for business loans because the business of the property is the lease. They record the lease assigned to them. And they send a letter to the tenant saying, "Oh, we have an agreement with the landlord Susie, who now gives us the authorization to ask you to send the rent payment to the bank and Susie." And when the tenant the rent comes, they deposit. It removes the risk from the bank. They have a corporate guarantee. They receive the money. I cannot default. The rental income is higher than the bank payment. You have your money out. You have positive cash flow. You have great relationship with the bank. You have a great financial sheet. You have investors or you're by yourself. Heck, you start one like this, you go set up a syndication— correct me if I'm wrong, right? Set up this situation, raise the money, cash yourself out. You don't even need the bank. And then go and do the second one, go to the third one, maybe cash out just the down payment and the earnest money. And how many do you want to do? Let's say each property makes you barely $2,000 because you cash out all the money. It's just barely making you $1,500. You want to do 10 of these, you're going to have $15,000 net a month for yourself. Uh, you're paying the investor X, you're gonna make— maybe you got to do 20 properties to net 10 and pay the investors, uh, on the return of investment. And you want to hold them or you want to flip them? After you start flipping a few, because it's so much more money, there is so much built equity.

So this is the tenant pays for everything model. Now let's talk about your JV model and how does that work.

So the joint venture model is I have people come in They invest in the training. I train them, and we meet in person, and we go step by step how to identify the right property, how to actually find all the 15 criteria of a property. You're not going to find them all in one property, but there are certain things like the location. You got to have a certain traffic number. Less than that, you're not going to get the numbers you want. You got to get better neighboring tenants. You got to get certain layout on the property. Those are the ones that attract people. And, and we go through all the training from how to talk to the broker to the proof of funds to how to negotiate. And I tell them, you will see it. My goal is to free you up, not to tie you to me. But eventually you're going to need me either to assign the deal to me, or if somebody comes and says they want to buy it, I'll help you either buy it and then sell it and you make some money. Because I have money. I have other people's reverse problem. I have money sitting that I have to deploy constantly.

Okay.

And then, so they leave.

You have your own fund, uh, or your own, your own funds that you can use to close on these properties, put up the down payment and whatever the bank requires, get the loan, sign on the loan, all that. So if a student comes and they don't have that ability, and, or at least not initially, then they could build that up over time by JVing with you. And then when you do the JV, then they basically assign the property to you, but they get 10%. As, uh, of the purchase price. 10% of what? Is it the purchase price or the—

Yeah.

So let's say we locked in the property at $800,000. I'm gonna put a tenant with the multiplier, it's going to be worth $1.2 million. So they got it at under contract based on my formulas at $800,000, and now based on the lease we negotiated on the call they were on, it's going to make the property— whatever the lease is times 16 is going to make the property worth $1.2 million. That $400,000, they get 10% If the lease is signed for 10 years, we're getting a lot of leases that sign for 15 years now because they get afraid of inflation. If we sign the lease for 15 years, I pay the student that came in 25% of that upside, so they get $100,000 assignment fee. And and why? Why is that? If it's the same rental income, why do I pay them so much more? Because they're so easy to sell. I mean, we put them on LoopNet and and. I don't actually need anybody. I just get people calling me directly. Hey, I'm selling a property. I'm getting out of this 8-unit apartment building. I'm tired of all the rent problems. I want to roll it into this type of triple net building. Can I do my money, roll it in? And yeah, 15-year lease, I'll pay you top dollars. So, so we pay them the assignment fee no matter if I'm going to have to put tenant improvement money or not. That's not the problem of the joint venture partner. They negotiated $800,000. I got to give the, the, the tenant $100,000. So it's going to really cost me $900,000. And then the property is going to still be $1.2 million. That's $300,000 upside. If it's a 15-year lease, I'll give them the $100,000. I just made $200,000 training somebody and help them make money. I'm making money and the place is going to be occupied.

Right. So do you have some students that just keep continuing to do the JV program with you?

Yes, eventually after two three days they realize okay I can do it alone and then they come back and they say okay well you know what I have some people that want to go in with me and I want to do this they either want somebody else to partner with them or they I have somebody that just told me that part of the training I give them other ways not to use me I said don't think I'm doing this just so you can use me as a matter of fact this guy said to me I really don't want to assign it to you I think this is such a great deal. What can I do? I said, "Do you have somebody has money?" Nobody. Everybody I know is broke. So I said, "Go to the seller of the property and tell him, how would you like me to pay you fifty thousand more?" And the seller of the property is going to be like, "What? What are you talking about? If we negotiated six fifty, why would you pay me seven hundred?" And tell him, "I have a tenant coming in. It's going to make the property worth a million one. If you work with me, I'll give you fifty thousand more. If not, I'll go to a hard money lender." And guess what? He called the owner. The owner met with him, and the owner was actually even more creative than me. He said, "I'm going to put you on the deed, and I'm going to let you refinance and cash me out once you get the tenant signed." Wow! There are so many. There is lease and sublease. I've taken buildings. They they didn't want to sell them.

The lease.

This is in the Caribbean. They wanted seven thousand a month. The owner was a jeweler. He didn't know the property could rent for ten, eleven thousand easy. It's a great location. So we leased it for him from— this I did it personally, not through a joint venture— lease it at $7,000, and I put it immediately to, to sublease, and I got a sublease for $10,000. And my lease is for 15 years, 3% escalation. This tenant is coming at $10,000 and he's going to pay for the first 5 years $10,000 because he's doing all the tenant improvement. Then he's going to go to $13,000, it's going to go to $15,000. So that's lease and sublease. I didn't have to use a bank, but I know how to put the pieces together, so I train on that. I also do in the training how to do build-to-suit. So if you have land or you find the land, how to deal— Starbucks are amazing with this, McDonald's. I mean, you think like, oh my God, those are big companies, would they be interested? They're very interested. They just want the right location. They don't care if it's me or if it's Joe or whatever.

Well, and the magic sauce is, from what I'm hearing, knowing who these national tenants are and knowing what they're looking for, right? And then also having the contact information so you're getting to the right people in those national tenant groups to figure out who's the person you should be talking to about this or that location. And maybe they're regional, maybe they're, you know, and you've kind of discovered the secret sauce to all of that, I would imagine. Yes.

And if I may add, you're right. And if I may add, it sounds Sounds easier than it is.

Why?

Because you find a property, you're showing a proof of fund for millions of dollars—that's buying. That's not hard. The broker will be all over it, and I suggest always use the broker that listed the property and make it happen. But you got to know what you're doing with the numbers, and that—that's the first obstacle. The broker will work with you because you're showing them I got millions. I either deal with you or somebody else. Okay, right, right, right. But the hard part is once you get it under contract and you start smiling and dialing, is to do the follow-up because there is a lot of. Follow up. These tenants are usually busy. They're the tenant representative, and and and they're they're dealing with malls, and they're dealing with this and that. So you have to follow up, follow up until they contact you back, and don't get too ambitious in calling 100 tenants one day and then five the next day. There is a follow-up. Call a few, and you follow up with more, and then you follow up as you build it so it can compound with a lot of work all of a sudden. So you have to. even you have a full-time job or whatever, you have to give 30 minutes a day for about a couple weeks to see if the property has traction or not. And then if it doesn't, okay, well, guess what? Maybe a tenant will respond and say, this is too small for us, if you have something bigger. Okay, now, so see the responses you're getting. Oh, uh, we had one, um, Carl's Jr. wanted something, but they wanted something bigger and said, we're gonna need it in March next year in your area. If you have something that's at least 3,000 square feet, you're looking— I said, now you found the tenant, go get the location now. Yeah. So, so, but so many, I can tell you honestly, so many people think like, I'm gonna do the training, I'm gonna come out next week, I'm gonna lock in something, and next month I'm gonna make $100,000 and I'm gonna tell my boss to shove it. I'm like, take it easy, take it easy. Let's just walk our way to wealth.

Sorry, Christian's already thinking that, right? I know.

No, no, no, you're coming with me.

Yeah, yeah, yeah.

You're coming with me. We're doing this together.

Follow-up. We're going to go do this. Yeah. You know, I've said this for years, Sharif. It's like, why am I not doing your program? And I really can't come up with the answer to that.

Well, my question is, why aren't more people doing this? Like, why aren't more people doing this?

You know, I wrote a book called Blue Ocean Opportunities in Commercial Real Estate, and I wondered the same thing. I call it Blue Ocean because nobody competes. Everybody's in the apartment buildings. Now, why do people go into apartment buildings? I don't mean to take cheap shots at apartment buildings. They're amazing. Okay, you can make a lot of money with apartment buildings. Not food each other. The thing is, apartment buildings are easier to get loans on from the banks. The banks can give you 75% with a credit line to rehab. I mean, they can work with you 30-year loans. I've seen all kinds of crazy things with apartment buildings. Number one. Number two, they like the multi-units because if one tenant leaves and 100 units, that's 1% vacancy. Versus a single tenant building, you lose the tenant, you got a problem. But I assure you, a corporate guarantee— within my history of doing this for God knows, I've been like doing this for 25 years— when you have a corporate guarantee, the tenant want to cancel the lease, they have to buy out the lease. It's a corporate guarantee, they have to buy out the lease. So the lease remainder is $700,000, they'll cash out. They say, listen, can you take $500,000 and get us out? Can you take 400? Can we sublease it? They can go get another tenant and they have 2 corporate guarantees. I've seen it all. I had Puma Corporation when they actually canceled the lease. They had to pay me $1,057,000. They were paying me $20,000 a month. This is at an address. If you go to the website, you'll see the address, 211 Crystal. It was Reebok. Reebok left. They paid me Puma, and then I put Crocs after that, and each one paid more than the one before. And when Puma left, they had to pay $1,057,000 to exit. I paid off the building. So wow, you get to— if you follow the formula, I mean, people, sometimes you teach them certain things, but they want to do it their own way. And, and you can improve on my formula. I've had people take the training, do one assignment to me. I had this gentleman, he went and bought a strip mall with 4 locations. So when he bought it, it was 2 locations leased and 2 vacant. So he said, Sharif, I'm just going to do the same thing, but I want the strip mall for myself. I don't do strip malls like that because if I'm training a student that's going to do the deals in Kansas City and another one in Fort Lauderdale, the easiest deal to do is a single tenant. Why? Because there is no due diligence from me. I'm not going to go check the rooftop. I'm not going to go check the floor. I literally just look at the video and I have given them the okay to start smiling and dialing. The tenant is the one that sends and comes back. To us on the call and says, well, we need $10,000 for the floor, we need another $20,000 for the roof, and you give us $75,000, we're gonna do the deal. Okay, you pay me this for the rent and you're locking for so much with the escalation, we do the deal right now. Okay, send us the letter of impact. It's a conversation. These people have to grow. It's their business model to grow, is distribution.

Well, do we have some questions, uh, Krishna? I think we, we might, and we've just got a few minutes. This has just been fascinating. I always love it. I'm sure if you're so full of energy, you're so full of enthusiasm. I know that you have— I would imagine you've got a lot of testimonials from, uh, happy—

We have over 1,000 video success stories on YouTube.

Wow.

Okay, that's pretty amazing. Yeah, that's, that's great. Okay, and so everybody, I've been harping to you guys for a while about get out of just thinking you're a multifamily investor, you have to sit on the sidelines till that comes back, because you are a real estate investor and you should learn A lot of different, uh, you should have a lot of different tools in your toolbox. If you only have a hammer, you're gonna have a hard time building a house. If you have a hammer and a lot of other tools and some knowledge, then you may be able to build your house. Yeah. So, uh, contractor.

Yeah.

Think of yourself as a contractor. You've gotta learn different skills so that you can, uh, be nimble and that you can move where the market goes and where the opportunities are. And, uh, this is pretty, Big. I think what I love about your program, Tarif, is you're like teaching people how to do this, but there's a whole lot of people with $30,000, $40,000 coaching programs out there, right? And they're very involved and they take a long time and they're, you know, a lot of labor intensive. This sounds to me like it's going to be a little bit of a shorter learning curve, but you're also kind of holding people's hands, then getting them through those first few deals, not with the idea that they're going to stay with you forever, but with the idea that they're going to learn it in a few deals. then have the confidence to go out and do it on their own.

And our interests are aligned. Our interests are aligned. And, and, you know, I've been telling you it's $10,000, and because you've been asking me, okay, what can we do for the people that you have in your database that, you know, set up syndications, or maybe they're starting with you, etc., I'm gonna do something. We're gonna do it for you, for the people that will come in here, at $5,997. Okay, so And and I want to be very clear. This is going to be till December 23rd, 4 p.m. Eastern Standard Time. Five thousand nine hundred ninety-seven. You will get the training that will include the proof of fund. You'll get the training directly from me. You'll have access to me, and I'll even throw in three months in the row. I do every month on the second Saturday. I do a call. For my students and joint venture partners, etc., where they can ask live questions. And I'll include three phone calls: the one for they're gonna miss the one for December, the one for January, February, and March, so they can make sure they can get a deal done in the first quarter of next year. And then we can get in and say success story. We were on the call with with Krishna and we with Kim and we did this and stuff. So $5,997 instead of $10,000.

Is there a coupon code or something that they need to apply?

We have a link. It's, it's a very long one, unfortunately. So I can't—

Yeah, but that's not taking people to the right place because I just clicked on it. It's just—

It should. That's the one I received.

Yeah, but look at it. It's not, it's not the right thing.

I know it's taking it to an Infusionsoft.

But it's also taking it to a $0 invoice.

Oh, that's not—

no, no, it's not, it's not. I just tested it.

Yeah, that's not what I see.

Yeah, it's Infusionsoft because we have to track the discount. I don't, I don't usually do it at a discount. We don't broadcast this.

Yeah, I'm not seeing that for some reason. I'm getting something different.

That's weird.

Yeah, check that link and make sure that's the right link, uh, Sharif.

Uh, okay, let me check again. Let me see.

And I did put a link in there to your book. I signed up for it.

Subtotal 0. Yeah, it shows subtotal 0.

That's weird.

Maybe it's free. No, I'm just kidding.

Yeah. So somebody else is saying the same thing. I get a 0 invoice.

Okay. Well, I will—

I see $5,997. I don't know.

You see $5,997?

Grab the link that you have, Krishna, and put it in again.

Yeah, yeah, grab your link.

It's the exact same link. I just copied it from chat.

That's strange. I don't know why I'm seeing, uh, yeah, I'm just seeing a zero invoice.

Okay, let me see.

Don says he's getting a zero. Laura says she's seeing an invoice.

Yeah, I don't know.

Some people see an invoice, some people see zero. I don't know why.

I—

because originally I saw an invoice and now I saw zero, uh. Well, maybe there is a way for us to resend it real quick.

This is what I see.

Okay, show us.

5997. Is this what we're supposed to see? This is what I see.

Yeah, that's not what I'm seeing. I'm getting the zero.

You're supposed to be getting zero here.

Yeah, I'm getting a zero.

That's bizarre.

I don't know why. Okay, I just asked Ashley to resend it. Ashley is my VP. She will.

Yeah, and she's pretty good.

Yeah.

You guys can email Krisha, krisha@syndicationattorneys.com, and she can help you get that. But also, Sharif, how can they reach out to you directly?

So they can go to Ashley. The easiest is Ashley, a-s-h-l-e-e, at cmrei.com, which is sharifmedawarrealestateinvesting.com, cmrei.com. So Ashley, a-s-h-l-e-e, At cmrei.com, and, uh, she can get you guys hooked up. Yeah, yeah, exactly. She will, she will follow up. She's very efficient. And we're actually— I don't know, this season we've been very busy. I'm very excited, um, because it was frozen a little bit. Real estate was frozen the last few months in the country. The single tenant, we did fine because again, the quick service restaurants seem to do well whether the market is good or bad. People got to eat. That is the Uber deliveries, the food people. You know, I remember during COVID when we went and got some properties on the contract, and I was just surprised that some tenants are calling us. And I asked this gentleman representing Subway in the Florida area. He said, "Believe it or not, we had to lay off some staff. We have the kitchen, and we have the deliveries, and our flow-through is going through the roof." We didn't realize. That we're going to do better in bad markets. So we want to expand. Wow. That's an amazing— yeah.

So yeah, you got to figure out where the money's going because it's going somewhere. It's just not going where you want it right now if you're trying to sit on the sidelines for a specific asset class. So, you know, if you can move into different asset classes, the more tools you put in your toolbox, the more well-rounded you'll be and you'll be able to weather different markets. So Deepak has a question. Is this the same for medical offices? Have you done Type of deals?

Yeah, we've done, uh, clinics where they're close to hospitals, single-tenant buildings that are available, and then they come in. And actually, the good thing about clinics and medical offices, they don't ask me for much TI because they have their own configuration they want to do. But they do ask for a lot of free months. Like, they would say, we need 4 months free rent. I gave one 6 months free rent, but they did a complete rehab for the entire place to make wider doors for handicapped, make Stuff. They had to put a lot of equipment. And you know, these people are not going anywhere. They signed for 10 years. On the 11th year, when rent renews, you can go through the roof. That's the thing you hold on to. That's just amazing stuff. What about—

okay, so somebody's asking, what if a tenant cancels the contract and moves out?

So if the tenant is a corporate guarantee tenant, they cancel the contract, they have to buy out the lease because the corporation gives the corporate guarantee. That means when you write the lease There is an additional page that says this lease is guaranteed by the corporation with a trading symbol of X, Y, and Z, and the lease is guaranteed by the corporation, and it's signed by the CEO or the CFO. So something goes wrong, they want out, they got to buy out the lease. So they can buy out the lease, meaning paying me. Hey, you have $100,000 a year for the next 5 years left on this 10-year lease. So yeah, you owe me $500,000. If you pay me right away, I'll take $400,000. Now, what do you do with the 400? That's found money because you can start smiling and dialing, do the same process you did to put the first tenant. It's easier on the second one. The property is remodeled, especially if you bring same type of tenant. Number one. Number two, the tenant in the leases we put, we can give them, we give them the right to sublease to another tenant. So if they change their model, like Burberry changed, we leased to Burberry for 15 years. They came in, the value of the building went through the roof, but I kept the building. What happened is the about two years into it, they called me and they said the CEO wants to expand in China. I'm like, okay, great. What do you want to do? Why are you calling me? So we want to cancel the lease. Okay, you're going to pay me a million dollars or you go find me another tenant. So they tried to find another tenant; they couldn't, and they ended up paying me one million dollars to cancel the lease. But let's assume they found another tenant. I would have continued receiving fifteen thousand plus a month. On that lease, right?

Right. Well, and have you ever had to force somebody through lawsuit, or are they pretty? You know, because these are public.

Yeah, I had the lawsuit with Crocs, and it was very easy. There was a hurricane. Hurricane hit, and they said in the contract, just kind of to give you some nuances. Hey, you as the landlord were supposed to structural. You were supposed to fix it in 120 days. You did not fix it. And I replied. I said, "You never notified me that I need fixing. Please look at the paragraph before. You need to notify me in writing." As a matter of fact, look at the email I sent you. I said you haven't opened back. What's going on? Everybody's open. The cruises are back and everything is happening. What are you guys doing? And the reply that came from the supervisor of the store was, "Don't worry about it. We're handling things with the insurance." So they sued me to return. I don't know, like seven months of rent, and I countersued them for the three years remaining on the lease, and I won. And I discovered that they were fraudulently collecting from the insurance and claimed that they lost money when they actually came out ahead. So it became a fiasco for them. And as of this date, we're waiting for the payment of the full lease plus the insurance plus the tax of the last 3 years plus, plus, plus the attorney's fees, etc. Look, you do things right, going to church or going to court is going to be a great experience.

Yeah, if you have the right, uh, like you said, that's the importance of having a super experienced Uh, commercial lease attorney, someone who deals specifically in that area, not us. We don't do that. We'll help you with the raising capital if you want to raise your own pool of capital to invest in these things. Um, you know, you can, uh, work directly with Sharif and, uh, have access to his capital. Um, you know, we do this as a public service. One, we love Sharif. I, I've known him so long and I just love talking to him and, and I'm always excited to to have him on our show. Um, but I'm excited to introduce him to you guys because I think you're going to really benefit by learning this new tool. And it is such an unused tool. Um, you know, I can't wait to read your book. I signed up for that. And okay, cool. Yeah, I'm sure Christian and I will have a conversation. Why aren't we doing this, right? Yeah, why aren't we even practicing law anymore? Why don't we stop doing that? Well, we do that as a public— we do that as a public service too.

Well, we'll still need to help people syndicate to, to get into deals too.

So that's right, because syndication really, it's not just about the investors, as you know, and I like what you do. It's about the assets. You're getting the investors into these great assets, and once they understand what they're going to invest in, they're going to love the syndicator more because they know— I mean, they're not going to know the training you're getting, you know. I'm talking to like your, your people that are listening. They're gonna just say, oh, I like this idea. I've seen Jack in the Box. I've seen— I go and I eat at the You know, Denny's and all this, and you're going to lease to these guys and they give corporate guarantees. We've seen the same Denny's for 25 years. They don't leave.

Well, and we've got a lot of different structures that we've been working with now, some flex fund structures and series structures and things like that that make it a lot easier to have the docs in place when you need to move fast on a deal like this. And, you know, keeps the legal costs down and keeps the timing down so that you're able to nimbly go out to your group of investors and get them to invest with you. So when you get ready to cut Sharif Lusk, because you've learned all you can from him, you've picked his brain, now you're ready to go be one of his independent success stories, then that's when we can certainly help you out there.

And I was mentioning to you that if somebody sets a syndication with you and they go into one building or a strip mall and they want to do this, want to sell, maybe you have a creative way for them to take the whole group into a 1031 exchange. I don't know.

Oh, absolutely. Yeah, yeah, you can turn a A syndicate can 1031 exchange its property. A fund can— that has a subsidiary entity that owns a property can exchange its property for another. We've had several tenants do that. The key there is be careful how you name your title-holding entities because it becomes really weird if you name it after the first building and then you go into—

Good one. That's a great point. You see, Kim, that's the invaluable stuff about these complicated things. People come up with an idea they can't execute. Well, guess what? Those who execute are talking to the right people.

Well, this is also a perfect place for, you know, a lot of 1031 money is out there that wants to go into triple net properties because— and so you can do that through Delaware statutory trust, which is kind of a complicated structure. But, you know, there's ways that even you could set that up so that it can kind of be replicated deal by deal. And, and not be as painful. And in that structure, they actually are allowed to 1031 exchange into the beneficial interests of a Delaware statutory trust. So, you know, these are all different ideas that can be implemented. You just have to know what you're doing, but you got to start with understanding the property, understanding the underwriting. This is where we're seeing a big deficiency in the market right now. If I can give any of you any advice on what you should be doing right now, Even if you can't find deals, is you need to learn how to underwrite deals. Because if you think you're going to invest with somebody else, you better know what they're doing and better figure out if they know what they're doing before you put your money or anybody else's money into that deal. And we're seeing a whole lot of people that don't understand underwriting right now. So, you know, get with Sharif. He's going to help you understand the metrics on these deals, whether or not they make sense, what— making sure you're buying the right things, not the wrong things. steering you in the right direction so you don't make mistakes early on and so you can be successful later. So, Sharif, thank you so much for sharing all of that.

Can I leave you with one, one final thought? I want you to imagine this. You're driving now, everybody that listened to this, and you're going to see this afternoon or tomorrow a single-tenant building vacant. And every car that's driving before you and after you is thinking, oh my God, Jack in the Box left over here. This place is going crazy. I think the market is bad. And you're going to say, Oh my God, there is so much money to be made here. It's a whole different mindset. But thank you for having me. You ladies are great. And if the link is not working, they can just email you and we'll set you up again with another.

We'll get you in touch with Ashley and you guys will get hooked up with Sharif.

So thank you so much.

He's been around a long time. He's the real deal. Don't miss out. These, you know, it's it's a hidden. It's a hidden market. So go for it.

Yeah, thank you so much. This was a lot of fun. Thank you everybody for being here.

Take care.

Bye-bye.

Bye-bye.

Bye.