Deal Hunter 052626.mp4

Good morning and welcome to The Deal Room Live, the daily real estate deal tank powered by Titan Impact Group, a global leader in AI-driven real estate investing and funding, where the real estate world meets speed, precision, and profit. And bring us your deal so we can put it into our AI model that analyzes and structures real estate deals in minutes, generates all the docs you need to get the deal done, and gives you a verified, unbiased breakdown of due diligence reports. The investors get the advantage of getting fully vetted AI-analyzed deals that cut their due diligence time down by 60%. So you're in the right place. Let's the deal room now and get into today's opportunity.

Okay. Super excited to show you guys this. We— big week. We're in the middle of the getting the data center closed, which has taken months and months and months and months and months to do this whole thing that was supposed to be done in December. Great determination, perseverance. In the meantime, still doing other deals. So Tommy Dobczyk has a project out in Windon that we're gonna be doing, which I'm really excited about. In the meantime, do any of you have any deals that you're looking to run through deal Hunter and want to go through this morning?

I found one. It's not— it's very niche, but there is an actual like airport hangar slash office in Scottsdale. If we just want to look at it just to see. Okay.

So yes, get that ready. I for sure want to see that and I want Tommy Dobczyk to see it. I'm going to run you guys through the Wenden one while Tommy wraps up this call, but get your deals ready. Again, the whole purpose is like to run through the deals, right? Like this is where we develop the muscle of getting really good at it. Like, and I feel like you're possibly prejudging whether the deal is good or not to run through it. And I don't want that. Like, I want you to get the practice, like doing the reps, right? And the more we do the reps, the better we get at this.

So, but then is it a good thing if we're able to prejudge a property or do we just want the numbers just to tell us instead of our own instinct?

I want the numbers to tell you instead of your own instinct. Your instinct hasn't— you haven't done enough deals to have your instinct tell you.

Uh-huh.

Let's do a walkthrough tomorrow or Thursday. Meet him at the property. No, I'm in Arizona. Sorry. More hurdles to jump through. Super not fun. Okay, so let's go ahead and share this with you guys. So here's what I'd say for all of you, for your instinct. Until you've done as many deals as Tommy and I have done, I invite you to consider your instinct is not finely tuned. Tuned yet. And here's how I know: I've done thousands of deals and my instincts still aren't finely tuned. Because again, this is what I love about real estate, is that every single deal can be done differently, right? If this was a cookie cutter, like, this is the way it goes every single time and here's the right answer and here's the checkboxes, then yes. But that's not real estate. Real estate and these deals and these businesses require you to think, require you to put teams together, require like so many different parts of you. That are just not finely tuned yet. And so that's why even we, after doing thousands of deals, still use this. And more importantly than ever, like, lean into it even heavier so that it can help us really analyze the deals. Do the numbers, the numbers tell you what to do. Like, never once have you ever, or will you ever say, do what your intuition says. No, we'll always say, do the numbers and the numbers tell you what to do. That's it. Like, that's the answer. Okay, so Property conversion analysis. So this is a really interesting property. Again, this is the entrepreneur inside of Tommy, but he also knows the area. So it's some land out in what's called Wenden, Arizona. But if you understand where it is, it's on this main road that goes right into the lake that's up there, a very busy lake. And so what is needed up there? Because again, he knows the area is an actual outdoor recreation supply hub. So for fishing, for boating, for all the things, there's nothing out there like this. And so it's desperately needed. Again, right on the main road going in and out of the lake. So even if something happens to people while they're at the lake, they have— they don't have very far to go to actually get the whatever they need. For their trip. So it could be bait and tackle, hunting supplies, camping and outdoor goods. You can even rent side-by-side and UTVs. And then it's a convenience store, some add-ons, things like that. So again, this is all desperately needed out there and not out there. So again, it's the understanding— help enough people get what they want, you get what you want. Good morning, how are you? Pull up a chair, we started and just running through with the team. You can see them there. There'll be more people joining us. You guys, we have guests, which we're very excited about. Here, you guys can wave. Say hello. There we go. Sorry about that. We should have brought some more chairs over.

What's up, dude?

How are you today? Good.

Your holiday weekend?

Yes. Worked and got a bunch of stuff caught up. So I think without kids, holidays are gone. It's like, oh, I have a quiet day to get stuff done. So what we're doing is we have built out several custom GPTs. One of them is Deal Hunter and the other one is Free Estimates. And so the team here, everybody from literally California, Florida, Washington, like they're— everybody's across the country and people with lots of experience too. You got some college students here who are still in college learning how to do this, like genius. So We— there's a property out in Wendon that we're going to be acquiring, and with that property, thing that's needed is a bait and tackle shop, hunting, camping, and outdoor, and then side-by-side UTV rentals, because it's the only road going in and out of this particular lake. So it's like— it totally is. And so this ran through— so Tommy had a whole conversation with it about all of this, and then we were just starting to run through the actual property and what it's going to take to create this. So it literally generated the scope, the purpose, and then the lender's relevance to every single line item.

So I even tried to, I even tried to slide some like bullshit in there and it wouldn't let me.

So nice.

I put in there, I wanted a pond and I wanted some fancier landscaping, whatnot.

Did you see this message from Jason?

No.

The buyer's wanting us to do a walkthrough with them tomorrow.

I'm not in Virginia.

I'm aware. So I don't know how you want to answer that.

Go to Virginia and walk it.

Me?

Them. I'm not going to go walk it. I don't need to walk it. This is the exact crap that I was talking about. So we need to just go ahead and throw the thing into arbitration, cancel the seller or cancel the buyer and move into, move into raising the $10 million. Because these guys are really not interested in doing a deal. So Jason has to come around to reality. I know he wants to get a big fat $100,000 paycheck for doing it.

Arizona and the data center is in Virginia, period. It's not going to happen.

Shake your heads, guys. Is it going to happen?

Okay. Fast forward. Okay. So sources and uses. So the estimated costs. And so then it literally goes through.

Ready for this? Zoom down to the bottom. So I just did that. Hit that, hit the down button right there. Blast it right there and go up a little bit. So what I did was I went back through and I said, just make assumptions. Like I'm wanting to get details quick on this because we're looking at wanting to, wanting to get going on it, falls outside the criteria, right? It's under the acre, it's under a million, but it's part of the bigger plan. So it does fall into that. Up a little bit more. I created the— what I'm telling you is I created the assumptions of all the rest of it. So you can see, you go right here. Nope. You go a little bit more in here, a little bit more.

And then right here, Blake's property.

Okay. So right in here, I started getting the, to the, to the real numbers.

Do you want me to go up to number 1? Because we're at 7.

Go to number 1. Right here. So total project assumptions. Now you can see we've got our hard construction costs. Blake's got a deal. Blake, is it, is it queued up, brother?

It is queued up.

All right. Give me a minute. So here's a rough overview. We'll go quick then. If Katherine stays on the slider. So going through the total assumptions, I figured it was going to be about $34,000. Keep going down. They give me a revised capital stack. Knowing I got to get some owner buy-in, some SBA money. Then here's the assumed startup business costs. You can see for the inventory and all that, it broke it down and gave you a really estimate of about $125,000 for everything inside the store to operate the store. You can go down. We tag that into the full capital stack. Now we're at $445,000, $445,000, $446,000. This is why I said if we did an Opportunity Zone fund for $500,000, this falls into that, covers everything, and it legally ties into being able to do even operating costs to an extent. So rolling through the rest of this right here, we're able to see that the assumptions come out to this. If we have a loan with these guys on the construction side at this at these terms right here, we need to have a break even from the store. We need to get from the store $3,200 a month in rent. Like the store can make whatever it wants, but the store has to rent from us because we're keeping the dirt at least $3,200. What's that called? DSCR? What are you guys— know sign language from—

you guys, Tommy's asking you questions. I didn't know. I didn't know who you guys were talking to. Talking to you.

Okay.

Repeat the question. What's DSCR? The DSCR is debt-to-service coverage ratio, right? Nice.

Big girl. That want to make at least $4,000 to $5,000 a month to cover that $3,200 a month. Right. So keep going down. So on an owner income model, basically saying that the base rent's $4,000, there's a business platform fee of $1,000. That gives us a $60,000 annual income. If we have $14,500 in expenses, such as taxes, insurance, repairs, et cetera, then what we're looking at is an NOI of about $45,000. And all we do is own the dirt, like somebody else is running common business. We built it, provided it, sold it, let somebody else do it. Right. And so where that ends up with us is that over time we're praying that their revenue is going to increase, which will then kick back into our increase on the property as well. So setting up a lease to own on this, it shows right here that they can buy their way into the business, also paying monthly payments. So now I doubled my income. So paying rent on the store and rent on the business, right? And so rent on rent means that I'm probably making closer to $8,500 a month. Let's see if it came up with that. Boom. Now here's the ramp-up structure for that, showing that they're giving me rent share of 5%. We go right underneath there and begin to see how as it builds out, they're going to buy out the company, but they're never going to buy the dirt. We're McDonald's, baby. So what we end up with, looking at it from the strongest lender model underwriting version, Go underneath that and you're going to see right there that we have a built-in DSCR of 1.48x. That's— we're making like 38% on our money at that point, right? So going underneath that, looking at the key assumptions, we would have a very good opportunity to build out this capital stack providing— here we go. Here's where our investors would be able to make their money, showing that we have— in Filipino, it was a DSCR— that DSCR of 0.48x. 0.48 means that we're basically able to keep 24% for us and give our investors 24%. So did you all see how I figured that out? Thumbs up if we did.

Or was this a little too fast?

Like, did you catch it?

It was fast, but I, I'm also very low level, so I have to go back and like, that's why I couldn't, I didn't hear your question because I'm looking at the numbers so intensely.

Well, and again, it's like, oh, you guys probably aren't hearing me very well. How about this?

There we go. Is that better?

Yes. All right. So point is that when we looked at all the numbers on this, it's pointing toward it being the correct deal. Like you're with over 40%. So I always said it's gotta be $1.8 or $1 million or over 40%. And so this one's at 0.48, that's 48%. So there's a good chance for us to make real good money from that. You coming to join us? Awesome.

Oh, yay.

Let me get you another.

Look at you. I love it. Of course. Which airport is the closest to Buchanan, Virginia?

I'd also like to introduce you guys. So I heard Caitlin.

Hi, nice to meet you.

And Kelly, they were at an event we had last week or two weeks ago. A couple of weeks ago, the one you guys hosted. Okay. Was it the dinner? No, it was the networking collab and we talked. Okay. The one where we all sat around and talked and—

Oh, okay.

Right. And then that wonderful lady from the Philadelphia Exchange was here.

Oh yes.

Okay. And then find me the closest airport to Grand Virginia.

It's leaving today from Phoenix to that area.

Where is this property located again? So this property is, this property is in what's called Wenden, Arizona. It's on the pathway to, it's on the road to Lake Alamo. And so it's a, it's a well-known recreational fishing lake that's not as populated as like Lake Pleasant or Lake Roosevelt. So. It's got a state park to it and stuff like that. So a lot of stuff there. But the thing that is missing the most is any resources for outdoors people. Right. There's a, there's an RV park north of there from like 10 miles, but you got to go down a dirt road and off into the backwoods somewhere to get to it, then come back out with a trailer and a boat and all that. It can be tricky unless you're staying there. And that's the point. But if you're just wanting to go and enjoy the day. Unless you're staying at the RV park, you have nowhere to stop and get bait prior to. And so they do sell minnows if they have them in stock up in, like I said, the state park, but not a lot happening there. We also have a, we're getting an RV park just down the road from this, about 6 miles to the east of it. So for my purposes, I need something for my people to go to because I don't want a bait shop on my RV park. Right. I have a luxury RV resort. I do not want, I do not want worms and minnows coming over. Go to the store and get that. Go use it. Come back. I don't want that shit though. Because I grew up in RV parks that had maid cleaning and things. It stinks. They're horrible. Not good for sale. It's not good for sale. So that's that. All right. So Blake, what do you got? Oh, Mr. Moore, you're here. That's so good.

So it was just an interesting deal that I want to run over. It is an airport hangar slash office in Scottsdale, Arizona.

Why are you trying to do this to me today, bro?

I'm trying to do something else.

No, this is awesome, Blake. Come on, come on, Blake.

I don't get Tommy all riled up.

No, I love this.

So it's in Scottsdale, Arizona. It's currently being renovated, so it has some conceptual photos of it, but it's on the lower end of the airport since, you know, Scottsdale's a smaller airport.

Yeah, outside of the airport.

We're on the other side.

I know you guys are over here somewhere. Oh, okay.

East side of it.

So I'll go over the numbers. I won't go into too much detail with it, but it's 0.32 acres.

I got some newcomers here, so we want to— we want to get some.

We're going to— you're going to help educate them, Blake.

Roll it back.

So Blake is one of our college students. Him and Katya have done an extraordinary job finding deals and learning how to analyze these. So here we go, Blake.

And so Blake has this deal. He went and grabbed— show them back where you got it.

So I was on CREXi and I was just looking at different properties. This was under a specialty. And essentially the way I did is I just viewed The flyer, or it's Paradiso Momentum. So it just has some of the information about it, just some conceptual photos on the outside. And then it talks about the actual hangar with the office attached. And the office is 2 stories. And it's saying there's a fuel farm nearby for all the jets and planes that they have. The office floor plan that they have with the large hangar, 2nd story, 1st story. And then it goes through different size planes that they can actually fit inside the hangar.

You can put 2 of them in there.

Pretty good size.

That's the 600 and the other one's the 350. Okay.

Correct. And then it just talks about where it's at. So it's just down here on the lower lot off Helm Drive.

Taxi lane access and all that, it looks like. So it's not direct access, but that's okay. That's a, that's a nice little deal. So what we did was we built, we have what's called Deal Owner by Land Shark. It's a pay-as-you-go model. And so what we do is Blake took that PDF. Plugged it in there and he's the prompt wizard. So he comes up really intricate prompts and he said, run this deal. It's all he said. And so it was built that way though, right? Because we just want to get it understood. So go ahead, Blake, run it.

I just told it to run its deal and essentially it's just going to— it thought for less than a minute. So it comes back pretty quick. Then just gives a quick verdict on it. Pretty much this is a very unique deal. It's just going to be more of a higher yield or it's talking about a triple N hangar slash office lease. So it just runs over the numbers of it, talks about the square footage for the hangar, then also the offices, different door heights, zoning of it, when it was supposed to be completed, which was last year. I'm trying to see if it still seems to be under completion. And then it's just talking about what we could underwrite it for, the vacancy, the NOI, and then keep going through the different cap rates that we can have for its adjusted value. Because they were selling it— I'll have to look back for the price. I think I have to ask them.

We're gonna ask it, but I think it might have— it might have assumed it too. Assumed between, I think, 5.5 to 6.5, right?

So talks about just our requirements for a debt or how we're going to pay it off if we were going to go pay through debt. And then our LTV, so it's essentially giving the comps for it, listening about other similar ones. 1.21 acres at 6.3, 0.22, a recent one at 3.69 for $17.5 million. Talks about the strengths— it's rare, it's functional, and there's the fuel farm with an office. But then the red flags, it's missing a lot of its actual deeper numbers that we can actually use for it. So that's something I have to call and ask them. It is specialty. And then it does have a luxury office added to it. And it's also not fully completed that we can confirm just yet though. And then just goes over the offer strategy that we can talk to the seller. And then it's going to go over the different funding paths that it comes up with. And then just gives me suggestions.

Perfect. I like it. Awesome. And then if you do a due diligence checklist so that we can start going through it. Here's the cool part. Blake can actually copy that list and say, go do this.

Right.

And here, and then boom, it starts going and doing it.

So you want to do that?

Go ahead. But we're not keeping you on to do that. So when you hit that button, bye.

But we'll come back.

We'll go talk to him more.

Are you ready, honey? I'm trying to talk to the fireman, right?

The fireman, fire chief right now. So I'll be back in a minute.

I have, I have one I can show too if needed.

You did what?

Sorry, I didn't mean to interrupt. I have one to show as well if needed.

Okay. Is Cecily approved?

Cecily Black what? It's not Cecily approved, but I can approve it with her.

And then I see Tina down there and Mike Alpero. I wanna say good morning everybody. They popped in on me after while we were running that deal. Good morning. So more do you want? I wanna get details on that, on that this week. If we wanna get it, if we wanna get an offer on it, I can go out and see it this weekend, probably on Sunday. Okay. I'll let, I'm talking to him right now. So is he active? I just trying to make sure that he's still on board and all that. So I'll come back to you in a few minutes. If you want to get on a call, let me know. We'll do it live. All right. And then Tina, welcome back. Do you have anything you want to bring to the table?

Good morning. I'm just getting some estimates through the Land Shark and the free estimates right now on a property here in Des Moines, the one I was telling you about. And then we're looking at a couple of RV parks that I have the LOI agreement. Or not the LOI, I'm sorry, the NDA that I'm signing. So we can look at the, I think at the North Carolina park and then the one in Arkansas that I had thrown in here earlier. So I'm just waiting to get those back.

Was that Arkansas or was that Tennessee? Remember?

Well, the one they sent me was Arkansas, but the one that I'm looking, wanting to look at was North Carolina, I believe.

Right. I was like being out there by Cape Cove and stuff like that. So that RV park out there in North Carolina, that one made more sense to me, but I thought we ran the numbers on that. And it was just a little inflated.

So, and I was wanting to see their actual expenses on it too. The other property that I'm looking at right now was in New York and it was, it was an Airbnb home that was sitting on a really pretty riverfront with a couple of cabins on it. And so I'm looking at that one now and getting all of their actual expenses. They just gave us a rough idea of what's out there. So once I get some additional things put together, then I'll bring those on.

Perfect. How are we doing on Palisades, Katia? Are you showing me something new?

I don't have anything new today, but I will tomorrow because I'm deep searching through all the websites I was given yesterday and I'm submitting the request for the information.

Okay. And then again, like, we can build out 40-foot, 400-square-foot to 800-square-foot tiny homes there and qualify for that manufactured home, that mobile home thing. So I think we just need to have a meeting with them and discover what their position is. That's going to be doable. And we just try to get 270 units for the, for that to go in there.

Okay.

And without—

okay.

Sounds good.

Was there, you said you had something you were looking at?

Yes, it's in Yuma, Arizona, and it's, I can show you. So really quick while she's doing that, I'll just catch you guys up on what's happening. So we've built out based on 20 years, 30 years of experience of investing and doing all the things. It took me 20 years to figure out as an investor. I like two things. I like to be the bank and I like to rent dirt. So to collapse timelines and not have them like do a bazillion transactions like I have to figure two things out, we created an investor survey and it's based on everybody's individual personality and their personality, the things that are important to them, all of that. And literally takes about 20 minutes to complete the survey. And at the end of the survey, we literally give you like, this is the type of investor you are. These are the type of deals that'll make your heart sing., and then it builds out a 90-day blueprint and then a 12-month blueprint. And so all of them have their investor survey, so they're finding deals that fit their investor survey profile. And then we help structure the team, the money, all the things to put it all together. And so that's why no two deals look the same, because they all are different types of investors.

And that's why when we were talking about the equity fund, we have Titan 23, which is our general real estate fund. And then we have Opportunity Zone funds that we're also going to be launching out as soon as like August 6th. When that kicks in, we're— didn't— did you tell me you had some experience with Opportunity Zones?

I'm currently—

one of my clients is in the Birch Cash Advance, the investor, basically to get the debt, basically purchase the future receivables at a factor rate that returns back to the investor, but that's mostly in the giant space right now. Couple of different real estate private equity funds. Got it. Got it. So like, that's basically what we're doing is they're reaching out, doing their homework, getting, doing all the due diligence and digging. We got to go through at least 100 properties to find 10 viables that will hopefully return us anywhere between 1 and 3 opportunities to actually offer up and go. Right. So we work, we have a parameter of $1 million or, or an acre and then propensity of 40% ROI or better. And so that's our buy box. We're not agnostic to any vertical asset because we're just buying it, fixing it, flipping it, and it doesn't matter what it is. So utilizing AI to do that has been very helpful because, and then with the people that we have in here, they're able to go after cash flowing properties, which is good for a certain class of investors. Some go after long-term deals, 3 to 5 years, where we're going to be holding it and doing more of a waterfall. So. Depends on what they're structuring. All right, Kathy, what do you got?

Okay, I have this property in Yuma, Arizona. And if you guys see this, see this box right here, it's everything within here.

Okay.

And so it's 84 total units and I think it was 13-something acres. Yes. And then here's when I ran the deal.

So it's identifying it as a conditional go, right? What the listing says is they want $7.5 million for 2 properties.

I've seen one lot, so it might Well, I don't know if they consider this and this different.

Slide boxes that identifies what is to—

Say that again.

Partial. So just let's look at—

You're looking for more pictures?

It shows us what they got going on. It's a hotel. It's a hotel that's going to get scraped to the ground.

And then there's these that have kitchens and everything. These look like modular homes.

So you know who your contact on this is, right? Who? You played a movie director with him the other day.

Oh, Roman. Okay.

So he lives in Yuma. So this is his backyard. Backyard.

Okay.

You gotta get with him on this for sure. Okay. So, okay. So, and it says, what did it say about all the stuff? Did you get, did you get a financials off of that?

No, I just found this earlier this morning.

Got it.

Back of the napkin valuation. Okay.

So, NOI, these are the cash flows it has to have, right? So remember those NOI. So it's saying that unit per month price, that sounds about right. That unit per month price, $700 a month. So enrollment would be able to validate that. Okay. As an alternative, I think, you know, on your debt test, it's showing me that in order to do this, if you got a 65% LTV with a $2.5 million down payment, in order for you to get a DSCR score of 1.25, you'd have to have $572. I like to figure out what the debt service is for the whole damn asking price. So how far into it are you?

How far into this or into the property?

Oh, you're not too far in. You're good. So, okay. Land upside is huge because it shows that there's 3 acres undeveloped with 4th Avenue in front of it. So that area has grown so big, you could probably cut that out and sell it as a convenience store, gas station, something to that extent.

Okay.

Says that it's 100% leased. We'll go on and keep going. Okay. The Shark Cashflow Offer says to offer $6.5 million. Why? Great seller financing structure. Maybe we can try to get them to do that. Earnout performance-based where you go and— what, Tommy, what an earnout performance-based is?

This is a new lesson.

I don't think so. No.

But you're smart. Earnout performance-based. So I'm going to get it. They want 7.5. I'm going to give them 4 and then earnout performance-based is the 3.5 that I'm going to give them after I've been there 12 months.

Got it. Okay.

Right. Because what if I take over and then everybody moves out? You think I should give them their full asking price now?

No, because there's no tenants.

Exactly. We're going to, we're going to give them a sharp— So, because again, we bought it based on 100% leased out. And then when I buy it and they disappear, now what? Uh-oh. Where'd my money go to get to the bank? So unless I have a plan of redoing something there, which I 100% do, like I can't buy those people out fast enough. Is that common to include that into deals? That the seller will be open to that structure? Here's how I go at every deal. I'm going at every deal as if I'm— this is the last chance I've got and go for the no, because then it's always, well, where do you want to be? Right. I'm the guy that's like, well, how much do you want for that? Right. 'Cause then I gotta wait for them to tell me the story of why it costs that much. I'm not, I'm gonna be like, this is what I think I wanna pay for it. What do you think? And they go, no, oh, I didn't mean to insult you. By all means, tell me why it's worth more. Tell me what you need. Because now then it gives me the leverage to know they're coming at an emotional logical. Well, I need it to buy a car. Okay. I want the car. I'll go get the car. Give it to me for the price I want. I'll go get your car. Why would I do that? And the reason is because for my investors to see the deal I structure, because everything has to be transparent. If I show my investors that I got a deal for 25%, they're 100% interested in investing with me because they're like, holy crap, that guy's smart. Let me give him my money. He's going to make my money grow. Right? Would you give— I had a brother that was a professional poker player and another brother that was a professional gambler. Right? The one that played professional poker made money, drove fancy cars, lived in nice houses. The professional gambler, not so much. And they didn't play together, right? That's because the one, he could make magic tricks. The other one, he made money disappear. That's the only trick he knew, right? So when dealing with investors, being a savvy, being a savvy fund manager is shown in how you structure the deal. The Art of the Deal by Donald Trump. And again, people like, oh, Donald Trump, go read his books. You'll know why, right? I'm lifelong Democrat, voted for Republican 3 times. Which one I voted for 3 times? Donald Trump. That's it. Like, I still have all my thoughts and morals of what I thought, what I think the world should be. But when it came to running a company and a business, he figured it out. He knew how to do it. He knew how to structure deals. And so that's evident every day when you open the news and see what the guy's doing in the news. And you're like, holy shit, what's the guy going to do today? It's like watching a soap opera. Cause you're like, who's he going to buy? What country is he buying? Why are we buying that one?

So, but there's a structure to all of it.

Correct. It got an underlying issue, but much like when you walked in and I was doing the little single wide trailer with— I'm doing that literally so I don't have fishtails on my damn— in my, in my luxury RV. I got a luxury RV, keep it over there, right? So it's a bigger, it's a bigger play on a, on a smaller, smaller play on a bigger picture. So, all right, cool. Okay. Does that hurt y'all's ears when I bang into that thing like that? Sorry if it is. Anyway, so one of the other things it does is it shows us how to find ways to structure it and funding paths from commercial banking, seller financing, private money, bridge refis. We can come up with a debt equity structure, maybe do some debt, some mezzanine and cap stack it that way. So here's your list of stuff you need to ask them for, if that's what you want to play in. And again, before you, I would say before you do anything, send this chat over to Roman. Do you have Roman's number? I can put you guys together.

Yes.

Together on this and say Roman, do you think? Is it worth it? He may know the owner. Like, okay, you can probably go eat tacos and drink some mezcal with the guy tonight and you guys structure the deal, right? So, okay, so, right, so, all right, what do you got all the way at the bottom?

Operations. This is everything that I need to ask for: physical, legal, and then go/no-go thresholds, right?

So we got to figure out their revenue and their cash flow, stuff like that. So knowing where you got to be before you go and get all that stuff That's true. All right. Looks good. So, and then in your next question, it says, well, it doesn't ask you if you want to look at it for a higher and better use, but that's okay. We can break into that later. Let's find out what else we can do with it.

Okay. Do you want me to dictate or do you want me to do that on my own?

No, I want you to talk to Roman before you do anything else.

Okay. Sounds good. I'll send it to him now.

Perfect. Blake, you done?

Yes, it was done. Want to run back it over or run it back over?

But you're not wearing the hot seat. Backdrop when you go.

Oh, hold on. I don't have to pull it up. I'll have to do it next time.

All right. Do it next time.

All right. So it went through it. I essentially just sent everything and I just said, go complete this list and find more information. So it just talked about that this is a real aviation asset. Doesn't have clear enough data to clarify it as a complete go. So a lot of things are dependent on the broker title and then also on the lender. So it was just saying it was asking certain things. A lot of the stuff is open or has partial information, so a lot of it I just have to do a deeper dive on, as such as the asking price, the construction status— that's still open— permits, it has a partial of them, the dues, the association and different fees that they have, the agreement with the Fuel Farm. A lot of these things are open, so I have to go back through and find that. It has what you can actually fit for aircraft size, the rent comps, and then different environmental phase. And then triggers. So different findings that we get are that the entitlements are real. So if everything's approved for it, the data that it has in that showing, the zoning that it is, its actual lot area, the height limits, even though it talks about how the parcels may have changed with time. So, and then sales signal nearby or actually within the project. And then just talks about what I need for it to become a closer go, but it's not a go just yet because we still need the price, the CO, the association dues. Fuel rights, title, taxes, insurance, environmental exposure. And then just gives me a recommendation of what I should actually send to the broker.

Let's do a letter of interest to them, not a letter of intent. Ready? I would like to create a letter of interest to be able to send over to the listed broker. Put that together and include all of the things that are in the list that you provided above. We want to know the status of the build remodel and what, uh, what's going on with the construction and why it's been on the market for 600 days. Because again, if it's been on the market that long, because they've been under construction that long, That's too long to be under construction. Something broke for sure. So they might have construction loans that need assumption. They might have all kinds of fun stuff going on with that. So let that cook. Catherine, go ahead and pull ours up. Amor, did you get ahold of Chief Fire Extraordinaire by any chance? Go ahead and go over to the new conversation. Or let's do the Titan 23. Fuck, that's right.

You want this one?

So this is one of the— showed us the cost of this. Catherine, I just got this general real estate fund that has an over-umbrellating PPM that has Section 3 disclosure docs in it. And so what I'm going to do is I'm going to ask you to educate us on what that looks like and give us a case study. So, ready? I'm going to dictate. I need to do some educating with investors and future fund managers about the way Avestor set up Titan 23. We want to look at Titan 23. PPM and how the 8 disclosures work to set up multiple different asset verticals. Can you give us a case study of this on top of an explanation for my audience?

So we talk to it rather than typing, because when we type, we automatically condense what we're saying and it needs as much context and it captures way more than we realize when we're actually talking. And so it's better to actually like ramble on than it is to like type and like miss a whole bunch of stuff that is actually very useful for it. Okay.

And like Grok and Gemini and Claude and GPT are all different. One thing that, but the one thing that this does that GPT does that I haven't found that the others do is customer outreach. Like I can actually, and I'm going to talk with you about it. I want to create a Club Scottsdale GPT because ChatGPT is becoming the new Google. Everybody's got DPD on their phone, right? Not everybody's using Plog because what does Plog do? Well, it builds businesses. Is everybody an entrepreneur? No. So, Grok, what is Grok? It's a conspiracy theorist. Like, is everybody a conspiracy theorist? No, just people on X. They all use Grok. So again, it's like, it really, it's more like a soda can type of thing. Like, what you like, it's not, it's not the can itself that We're talking about the can is AI. It's what's in the can. People like Coke, people like Pepsi, people like Dr Pepper. There's some people like ginger ale, right? So that's what all these tools, these models are. And then within them, what are the benefits to it? Groq is great at providing you with very analytical stuff, but not probably not really good at creating like videos and pictures, whereas Claude's great at that. Can also do code and that's cool, but it's unable to reach out to customers. And then what? ChatGPT does is it can actually reach out to customers because again, everybody's using them and everybody has them. So, but this is what, this is what it came up with that within the Titan 23 structure, let's see, go down a little bit more. So what the A3 disclosure doc does is it creates the ability to customize our, for example, our offer, our offering. Most of the time the PDM has the offering in it. But in ours, the PPM says go to the A3 disclosure doc for the offer. And so when you go to an A3 disclosure doc for this covered by that PPM, and we can be very explicit, like we're going to do a 70/30 waterfall with an 8% prep. There's going to be a participation on our side of the, of the 30%, but we're also doing 5% of management fee. We're going to do a $50,000 due diligence cost, $100,000 acquisition fee, and break all that down with within that, so that in that A3, we're able to do all that because then it makes it simpler for the investor to know, okay, that's just the path I'm on. And not only that, but if we have a vertical that does go south, the entire fund's not infected by whatever happened on a vertical that failed. So scroll a little bit here. It shows some of the deals here. It shows like a real estate debt structure. Down a little bit. There you go.

This way.

So the real estate debt structure, for example, is where we Basically right out the turnstiles, we're the bank, they're signing a bank loan. And then our investors are getting, are getting a portion of that, that interest-only payment, if you will. So if we set up an interest-only payment with a, say, a home builder, we're doing this right now with a custom home builder. They're taking a million-dollar loan with us. We're providing them that million-dollar loan at 12%, but we're paying our investors a guaranteed contractual 8%, right? And we're holding that 4% as that. Processing. Now the builder also paid us 2% on the loan as part of the closing costs. So we took a 2% origination fee. So that way our investors didn't take that hit. We had it come from the actual builder. So an equity syndication, it's set up in a way where we can do like a waterfall or instead of the— it'd be more like a GP/LP situation where we GP with the builder. He needs $1 million. We get people to invest with us instead of them getting interest only What we're going to do is we're going to take the million dollars, we're going to hold that on the house for the 18 months. And then when we sell it, we're going to give them 70/30 from the proceeds. And so if we sold it for, say we sold it for $3 million and our net on it was a million, they will return their capital, their million, but then we're also going to give them $700,000 of the million that we got. And then at that point, though, I got a 1.7x multiplier to somewhere around the 40 or 35 to 45% IRR. The beautiful thing is I don't have to figure out that math. I don't have to contact the CPA. I don't have to, I don't have to wrangle anybody to give me this information because I can get this to do it for me. When we built it, we taught it, these are the metrics we need to have. These are the metrics we need to know. These are the things we need to understand in order for our investors to get documents that they will be able to consume and then invest with us.

Right.

And we could do that for them. So a little bit further down, you'll see that it always pulls a disclaimer out for us. And so we've got it always. We're always telling people as they use this, we're not advisors. We're just giving you information. You do what you want with it. Don't talk to anybody. And so if you're using a GPT that doesn't have disclaimers like that, I'm curious if you wrote it. Again, they might be asking, but these are, these are the things that we create. So I've created, we've created. Almost all of these over here on this side. This is for our event. This is for teaching people about opportunity zones. These are sponsored by lawyers. This helps build these. This one is the investor survey, which we'd love to give you guys to go and take and check out. This one is the one we're discussing right now. Free estimates is the one that if you scroll down, I like to give an example of it. Is it the rental? Keep going down. Gonna be the rental. We do a lot of damn deals. So, so, click rental up there. I'm going to search. Type in rental. Oh, because apparently it cut off right there. It didn't. Luxury rental deal analysis property. So nope, that's in Deal Hunter. I want the one that had the bathroom, kitchen and bath.

You sure it wasn't in here?

I know it's not because you know, I know the one you're looking for. So do kitchen up there. Just do kitchen. Okay. And it'll be the first one that comes up right there. Luxury kitchen.

This one, this is really cool.

So a lot of the times when we have deal hunters, they're out looking at deals and they're like, I want a fix and flip, or I want to buy and hold and do a rehab. Okay, great. Well, how much it's going to cost you? I got to call a contractor. I got to get this guy. I got to get that guy. And then in a month you'll have all the information and answers you want. Right. So he did this luxury rental deal analysis and I ran it and I'm like, this guy's asking a lot of money for a house that has really old cabinets.

If you scroll through the pictures, real quick, like you want me to open them?

So like you can see it's 2001 floor cabinets or 2001. And so countertops, like this is all, this is, this isn't a luxury house. This is a big house in a nice area. So I'm like, all right, cool. So I said, I would like to do a remodel of the kitchen and bath just to give an understanding. Here's the zip code. And I said, so go ahead and put this together real quick. And then boom. So it goes through and it identifies everything from the kitchen and the master bath that like what it looked like. And then it Starts giving me numbers and prices on everything. Each time going along, describing exactly what it's going to need to put in and where and why. Getting down to the bottom of the, of the list, it'll show us like total price and project around $244,000. Going down a little bit more. Now we're going to see, like, go up, go up to the good part first. Like it gives hiring tips and final notes, things you might want to consider. I said, go ahead and create the virtual picture of that so that I understand what you're, what you're claiming you're going to do now.

And then there's the design I created. And all of this was in a total span of about 5 minutes. Like, think about how long it takes to find a contractor, get them out there to give a bid. Like, I'm right.

But the cool part about this is it only took us about 5 minutes. If you go back to it, the other part is that as a contractor, the helpful part for me is the fact that when I used it, I'm like, now I need it to come out with my Arizona ROC contractor's approved contract and put it all together for them.

And they estimated takes about 42 days to complete this whole thing.

And so it built everything. I can go in and put my info in and tell it about my info. But this is a legal contract that covers everything. So now like that's done too. I don't even need a secretary. All together timestamps how long it takes for it to do certain things. But I think all together the timestamps total like 5 minutes. It's ridiculous. So that's what we do is we build these things out for folks to help them improve their jobs because we use these to improve our jobs. That's what we teach people. What do we got?

10:02.

All right. Amor, did, did Fire Marshal Bill show up or what? No, he just said, do we want to do a Zoom or a call or meet in person? I said, let's do a Zoom first and maybe we'll meet in person. Be able to see it this weekend or whatever.

How's it going back to me now?

All right, gotta work. Thank you so much. I'll have to pull up my copies tomorrow. Blake's got a little bit of work to do on the airport park thing. And Sisley, if there's any— and Tina, if there's anything you guys want to jump into, find it, bring it. We'd love to hear from you guys. We appreciate your support. You guys are always amazing as usual.

So thank you.

Other than that, anybody else? Got anything?

No, everybody had to go.

All right, I'll wrap it up with a prayer. Everybody bow your heads. Heavenly Father, we thank you for the blessing of this day, the blessing to go out and do the things that make your world beautiful and great. We ask that you continue to provide us with the strength of spirit and abilities to go out and do your son's will. In his name we pray. Amen. All right, everybody.

Thanks, everyone.

See you tomorrow. 3, 3 today for summit, for the Breakfast Club.

So bye, you guys.