Deal Room 052726

Tommy Dobczyk and his team review active real-estate deals, including a mobile-home park with missing mortgage data and a data-center purchase facing fraud allegations. They use AI tools like Deal Hunter and NotebookLM to speed due diligence by 60% and discuss proof-of-funds, escrow, and negotiation strategy.
Chapters
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.
The only information I have on the mobile home on the property is that it is a 1973 Kelly Homes, Bayshore 12. That was a copy of the recorded fixtures attached for your reference.
Okay.
So did she add that in or?
No, she can't add anything in.
Oh, she can't add anything in.
Okay.
The other part of the email saying that she has, by law, she can't.
Oh, I didn't see that. I see it now. Escrow cannot fill out any information on a FSBO information if you don't have it will need to be filled in by the seller, and the seller will need to contact the lender who provided funding to get the amount remaining for the sale price. Once all sections are complete, each party will need to initial each page and sign where indicated for that test, and we can get escrow open. Oh, okay. So I'm going to add that information in, and then if we're just taking— if the sales price is just the balance of the loan, do you have the latest mortgage statement? Or can you get the latest mortgage statement?
There's not really a mortgage statement because let me see what I can pull up here.
Basically, you just need to know if you're taking it subject to, then you need to know what the existing balance on the loan is. That's the sales price.
I'm going to forward it to you right now. So it's a residential UPB. There's a 16% interest rate on it.
And then what insurance are you, are you at it?
We haven't done the insurance part yet. That one, I don't know. I don't know what we're going to do with that part. What do we do with that part? Pretty well headed then.
I have no idea.
For insurance?
Can you call US— the USAA possibly would do it.
I could reach out to USAA.
Let me—
they're by far the best rates in my experience. Insurance. As long as you don't have—
this is going to be a commercial property though. So I'm also going to reach out to my other broker. This email is to John Prillman. I'm talking about an email to John Mazzarella's attorney.
Correct. Mine was to John Prillman's attorney. So I didn't know if you wanted to attach. What I said to— what I'm about to say to Perelman, to what you're saying to—
I can run it through that. Yeah, yeah, yeah.
The letter to Perelman is basically stating that they're in default, not us. And so you saying yes, that John Mazzarella reaching out is behind our back is 100% that, right?
Yep.
So absolutely.
Okay. So let me show Linda and then also put on there.
Tell Linda that it's been discovered that he committed fraud by lying on the loan application that put us in this situation. Email. Camille, is that the person from yesterday?
It's Robert's wife.
Okay.
Don't.
The fact that you knew my sign language.
Oh my God. Don't. Oh my God.
I missed it. I was looking away.
He read my mind and that's all that matters.
Nope.
That's all that matters.
Nobody needed to miss that. Everybody. Oh, listen, Linda, my little, my little, they get it.
Oh my word.
Stop it.
Oh my goodness.
Email to—
Look out, Surae! All right. We're going to make the rule that everybody's going to switch their background.
Everybody has to switch their background to what?
Yeah.
If we keep— I added it to Zoom, but I can't like put, make it come up. We, we have discovered that.
The one that Blake made with the actual lanyard coming through the door.
Yes.
Oh, that's the one you want? I don't know why it's not an option. Let me look and see if I can make it.
In her account, it's in there as content, I believe.
I know Zoom is funny these days. Can't get their shit together. Thank you.
Sorry guys, we're dealing with some interesting things that we'll share after it's all over and all your eyes will want to pop out of your heads.
All right. So who wants to learn? Who wants to learn drama about real estate?
No, no, not while we're right in the middle of it.
Who wants to learn drama state?
Drama state.
Drama state. Drama real estate.
Here's the thing that I know is that if this was easy, Everybody would be doing it, right? The first thing you need to understand is that no deal goes exactly how it's planned. So you need to have a backup plan.
To a backup plan.
B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X. I think we're like right about X right now.
Been there.
That's how many backup plans.
So anyway, the point being is that's why, as an entrepreneur, this is why you want to have an entrepreneur On staff, 100%. Blake just had it and then it popped over to this.
Hey Blake, will you down, can you send me the background? I'm going to see if I can add it in.
Which one?
The other, the Land Shark one.
The one with the shark in the doorway?
Yes.
Sure.
Will you send me the link to it?
That has become the backdrop choice by all Land Shark members. I think we need to have like a who's up, but it should be like a Land Shark who's up. It'd be like a, no, I like who's up.
It'd be a knock who's up.
Who's up.
That's funny.
I like that one too. If you don't know what we're talking about, you gotta go watch the movie, the TV show called The Great.
It's on Disney+.
It's a pathetically gratuitous, adult story.
It's an occasionally true story. Occasionally true story.
Adult-oriented situational chaos. Like, oh my goodness.
Kids cannot be in the room.
Not for children's ears or eyes. Buddy, here's where the, here's where the hook is. It's on Disney+.
I know.
Right? So is Deadpool. Craziness, right? So anyway, all being said, real estate drama. This is why we have to look at 100 properties, right? It's because you can literally get to the finish line and trip over a pebble and land on your face and be like, now what do I do? Right? So where we're at, our data center is 2 days away from closing. We got to close by the 30th, which is technically today, right? But they're like, well, you got to close by Friday. Well, by Friday, I got to figure out how to do what's called an ungunking. And so basically, like in the game Monopoly, I'm trying to buy a property and somebody is not willing to sell it to them. Okay. We're trying to get a deal done in Monopoly. And I've got somebody on the other side going, don't sell them that property. I'll do a deal with you as soon as it's my turn. And that's what we got going on there. So somebody is literally trying to backdoor our deal and knock us out of the data center deal because they're horrible, horrible individuals. And what's funny is I proved this because of one thing. I am a dragon slayer. I discovered this morning talking to Talking to the lending broker who was standing there. Look, he was, he was actually going to make about $90,000 off of our deal that we did, that we got because of all the work that he did to get this done.
Right.
And I'm talking to him and he's like, Tommy Dobczyk, do I just attract garbage or what? And I'm like, no, you don't know when to see garbage. And that's what I'm trying to— this is the moral of my story this morning is that I told him this morning, I said, we're good people, good people. We're not able to detect garbage as easily as garbage finds garbage. Okay. Right. So if you want to understand what I'm talking about, it's the fact that like the person we're dealing with right now on proof of funds, because we basically bought the property, divided it from building and land, we're keeping the land and we sold the building. The person that's buying the building has been trying to buy it from me since March 26th. And they've yet to send me proof of funds or send me escrow money. And so their contract is not valid until I have proof of funds. And earnest money deposit made. Earnest money deposit is what locks the contract. We've got a sales contract on the entire property, building and land collectively, but we're selling it as a building separate to this other person. And I feel like what they've done is they've gone around the backside of my deal and put themselves in a situation where they are sabotaging the deal. And this person that I've been dealing with is going behind me to get it.
Here's what Linda said.
The condition now is where Why I was there, I seen it and I tried to put a halt to it, but by that point they were already too far in. And so this person went to like the broker that's dealing with this on it, Jason, and told Jason, here, we got the money here. Let's just do the deal. And Larnell went around me.
That's why I'm like, Jason came and told you?
No, Jason said, we got to do this deal. And I'm like, bro, they already screwed me. He's like, no, they just, they're tired of dealing with you. Let me deal with them. And so I let Jason deal with them. Jason's a good person. So then when they were lying to Jason, couldn't tell, it looked like stupidity, right? Because these people claim, they said that they've done private equity before. And yet when they say that, and we tell them that we need proof of funds, they don't understand the concept of sending us a legitimate certified bank statement that says they have the ability to purchase the property. And so other people that are not liars are going to look at that and go, oh, well, you don't know what that means here. Let me explain it. And it doesn't look like a stall tactic. It doesn't look like an outright lie. It looks like somebody who doesn't truly understand. And so honest people will try to explain it. Whereas somebody that can detect bullshit like me goes, wait a minute, time out. Like, which one are you lying about? Either you're lying about the fact that you do private equity or you lying about the fact that you don't know how a proof of funds works. So it's one or the other, because somebody that does private equity has to know the other, right? And so I am an anomaly on the bullshit side of things where I say good people can't see trash. Well, I'm not necessarily a good person. I do bad things, but I'm a good man. Okay? I'm a good man. And I know I'm a good man because I had to come from the trash side of life. My dad was trash. My father knew how to lie to people and manipulate people. He would play dumb in order to buy himself time to take advantage of somebody. I seen it happen. I watched him do it. And so when I see people in my life doing it, I'm able to call them on it. But what's crazy is that the people around me are like, damn, why you got to be so harsh? And I, and I look like the bad guy because I'm the one going, hey, bullshit, I call a liar. And then, and then the people around me are like, oh Tommy, you're too harsh. Oh Tommy, you're too rough. Oh Tommy, you're too loud. You see the way I wear my boots? Let me back up and show you. I wear them like this so I can keep the bullshit off the bottom of my jeans. When I go to bed at night with my jeans on, I don't want trash on the bottom of my boot, on the bottom of my pants. I'll leave it on my pants. This is a bummer, we're not live currently, so we're not getting this broadcasted.
Oh, let me do that right now.
So we I didn't need that on Facebook and YouTube anyway.
I'd be kicked off because it's my account.
Let me get back to behaving, but that's what I'm dealing with this morning. When I gotta go on my walk and make 5 phone calls to attorneys, lawyers, and assholes before I get my first cup of coffee and prayer in, it's a day to be fired up. So the moral of the story is that when my buddy said to me, he says, Tommy, do I attract garbage? No, God just gives you the ability to take it out. And so these are the opportunities to take out the trash. So again, I deal with this bullshit because I have the ability to, not because I'm a bad person. And so God surrounds me with people that need that protection. Okay. I feel like when I was working in the ER and I was a pediatric emergency room nurse, certified pediatric emergency room nurse by default, like literally they were like, anybody want to volunteer for the pediatric department? And I thought, That's super easy. I was the only one that volunteered. I don't know why anybody else didn't. I was like, kids, they're fun. Come on. You always get dead babies, burnt babies, broke babies. You get every baby that comes in. It's just heartbreaking. Every single one of them.
Can you quickly read this so that I can send this off to his attorney? Anyway, don't read it out loud. Just again, because we're live.
All right. Somebody else to talk then. I know how to censor too. I would change it from since our last communication. We've always known there was material fraud and that's how we ended up in it. But it's not a $7 million transaction. It's $4.5 million. 5 million. So John committed loan fraud. He's withholding tenant estoppel. He's in bad faith coordination with the tenant, stuff like that.
Good morning.
Hi, how are you?
So all those things are real right there. The position is yes, that he's in total fiduciary, whatever. He is not only entitled to nothing, but should be forced by a judge to remove himself from all documentation. And this demand has to happen today by 4 o'clock in order to prevent us from—
known for a while now about the fraud, which is why why we were still proceeding and getting this done without him. The sale is $4.5 million, not $7 million.
We need to also show that not only is John not entitled to nothing, he should be forced to resign and sign the resignation letter that he was given over a month ago for this bad faith coordination and his inability to perform as manager of Sandman Holdings. We have written documentation from our funding partners and our financial partners on this project that stated that Katherine was the one doing the personal guarantee on the property, that John is only attached to Sandman Holding in name only and was not technically assigned to it in any other way and had no real connection to it.
So please update the email now.
Please update email now for this so that we can review it.
All right. Good morning.
All the way over here.
What?
My boss called all the way over here. We've been dealing with attorneys and 500 different Johns.
Good morning. Pull up a chair.
We can pull chairs from over there.
Yep.
Okay.
Got lots of people here. I feel like we need cameras to show everybody here.
No, no, her camera's right there.
We need to set up like a classroom. We can pull the chairs around so everybody can— the biggest thing you gotta see is that.
You see that you're killing everybody in the conversation. You told me to be private about it.
Well, I am.
I'm not showing it online.
Oh, you're not showing it online? No.
They can see because they're sitting right here.
All right. So everyone that doesn't have the background up, go change your background right now.
No.
So here's the deal. I think it'll be fine tomorrow because we're already— I made it the default going forward. But because this one has already started, you'd all have to log out to log back in. I was able to just add my own. So it'll be this way.
Let's pull it up. Okay. Let's put— let's highlight Blake real quick so we can discuss our background. Okay.
And anybody who has deals, raise your hands. Who has deals? Because we're going to run through those. Blake, you were running through a deal of yours yesterday, right?
Correct.
We were. Did you— are we continuing on with that one or was that one?
Well, that was— I think we gave it a prompt to run and then that's where we left it, right? Or did you— we left it with creating an LOI for it. So that's just something you need to send off to the broker. A letter of— letter of interest, not an NPN. Right?
Correct.
Right. So it wrote the letter of interest so we can take a look at that. I also want to pay attention. We got some people that came in this morning to be a part of the show here in Scottsdale. So we're always encouraging people to come out, be a part of the program and run deals and learn how to do presentations, real estate deals using AI. I spent a lot of time selling property. I've been selling property since I was 14 years old. And by taking all that knowledge and input and putting it into The Deal Hunter program that we use daily to run deals was more so as like an act of service, right? Before everyone showed up, I was on a bitching campaign about why good people are— it's hard for good people to see bad people's intentions. And it's because they don't think that way. Right? Like good people just don't think like liars and assholes and cheaters. Right? But unfortunately I was raised by liars, assholes, and cheaters. So I know what they look like, smell like, walk like, and talk like. That, right? And so it's easy for me to dictate that and find it. So we're building into Land Shark Mastermind the ability to do these due diligence reports because cutting down the risk is going to make it easier for you to stay away from bad guys, thieves, and crooks, right? And so Blake has a partner in here that he works with a little bit, Katya. Katya's out today, right?
I'm not sure why she's not here.
I said something yesterday about she had something to do today, but Blake and Katia worked very hard on the Land Shark Mastermind side, out going and getting us properties and deals to find and work diligently daily, out cracking down, trying to find a hundred properties a week to run. And joke and jest, but Katia is a magnet for finding the diamond in the rough. Right. And so accepting her role in that is something that we're working on because she's able to find these tough properties, but that require that level of—
but it also matches her investor profile, right? Which is what we're doing with you guys.
She's got that ability to be a nice, persistent, patient individual through the process. Right. And that's why she's able to find these third dog projects that require somebody with that expertise and skillset. And being able to work with like our professionals in here, Cicely. Cicely's licensed. She's the— California— MHP queen of California. Right. So she's able to work with our partners out there in California on these deals and finding the right ones to put all this together. But Blake had run up a deal yesterday. So why don't we start there?
And just really quick, Cicily or Saray, do you guys have deals that you want to run through today?
No, but I do have an experience I'd like to share.
Okay.
And I'm quiet. I'm a lot of times I have homeschool and I'm working in the background. So I listen and I'm taking in the information. So I use Land Shark. I have a mobile home park I'm working with, and I'm working with the consumer, and the consumer is dealing with a situation where they're trying to take their home, and they found the mobile home park took— they found a legal loophole to basically steal as many people's homes as they want. It's really bad, really, really ugly. And I figured it out. I figured it out because I studied the laws when I was younger, and I saw this section, the civil code, and I was like, huh. They can't do that. So then I started digging and then I went on Land Shark and I looked them up and I saw all these lawsuits. I saw like 10 different lawsuits. And so I was able to send this to the, to the client and the client. So now the client, the client actually has a potential huge lawsuit that he can file and we, that could be a class action. I was able to gather all the information from Land Shark. So I was like, it just dawned on me. I was like, let me try this. Let me just just let me just wing it. We figured, we figured out that they're doing this across the board, all of their mobile home parks, and a lot of homeless. It's causing a lot of homelessness. And I'm like, and the crazy thing is my broker is friends with him. I was like, I called my broker and I said, hey, I found out that this company, they're stealing homes. And he's like, sisly, back off. He's like, he's like, don't. He's like, you are, you don't have the lawyers, you're not equipped to deal with this. He's like, he's like, He's like, I'm amazed that you discovered something. He's like, just stay away. And I was like, oh my, but it's some crazy stuff going on. My broker was like, just stay out of it. Okay.
But here's the thing, you guys, when good people stand by and do nothing, that's worse than the criminal themselves. Like that'd be the conversation I'd be having with if he was my broker and I'd be looking for another fricking broker to work for. Like, I'm sorry, but that is like, right.
Well, again, it goes back to, and I can relate to that because while I was in nursing school, I had an instructor in nursing school, male instructor, who literally said, you're in a female-dominated industry, suck it up and shut it up. Because I wanted to recruit and retain more men to nursing. I wanted, I wanted the population of male nurses to reach over 20%. Literally, there's on the floor nurses, there's less than, less than 3% male nurses on the floor. So when women talk about equality, like, And I experienced this quite well. And then all the female nurses, like, yeah, again, it depended on the shoes you were wearing as a nurse. And so if you're a male patient or a female patient, like, I remember so many times it wasn't really the patients that were difficult. It were the nurses that had attitudes. I'm not saying women are catty. I'll let them say that for themselves, but we would literally have to break up a nurse and a patient from fighting. And I would have to adopt all these females that like were catty with each other because the nurse, the female nurses wouldn't deal with these catty patients or whatever. Right. And so that dynamic of female estrogen. So anyway, I know we're in real estate, but this is what he was talking about, was using Deal Hunter to problem solve instead of finding deals. And so we're just moving through some of that this morning and talking about it. Tamara, welcome to the podcast this morning. Did you send me the investor survey? I swear to God, I thought I seen it on Friday last week, but then for whatever reason, could never re-find it over the weekend to work on.
You're muted, Tamara. You're muted. We can't hear you. I did it on Sunday.
Sorry about that.
Can you do me a favor and resend it so that we can pull that up and run that for you?
Uh-huh.
I'll try and find it.
That would be great.
Do you think it went to my email when I finished it? Or where do I find it?
Go back to the conversation, the results.
Okay.
At the GPT, copy the results from the survey and then email those to me at Tommy@TitanImpactGroup.com.
Okay. And then I sent it to my partners to fill out as well, and then I just rescheduled call with you on Friday.
Perfect. Let's get through that survey. That would, that would help me during that conversation. Otherwise, just sit there and maybe talk about bingo school and stuff like that.
No, no.
Sent over hers. Did you send over yours?
I got to question like 25.
The paid version.
Okay. I'm gonna pay for the $20 a month version.
I sent it to my partners to fill out as well, so hopefully you get it from them.
It's just like—
Dewan just joined us.
Yes, I'm just saying, like, if you go and split dinner with a woman, you think you're going to be friends? What? Okay, listen, I'm on the therapist couch this morning, so I don't know, I don't know what else we'll say.
Did you do the survey? Did you send it?
How's it going, everybody?
Email it to Tommy at Titan.
I've been trying to put it into processes, and it was really good breakdown.
You want to run through it and get an analysis this morning on it?
The you sent me back, right?
The one that— the one I got. Katherine, can you pull that up? Share the screen on—
let me open it on my—
the other thing for everybody else, I just want to make sure everybody understands the numbers of like looking for deals and the ratio so everybody understands like what their homework is. So do that while I pull this up.
Well, again, this is the example. So trying to close a $7 million deal this morning. I got to go to court, take, take people to court to get that done. What that causes is it delays the process. Like, because the pipeline to get here, I looked at 1,000 deals to get to this one. Now it's fallen on its face at the finish line, right? So this is the importance to not giving up on looking for deals daily is because you've got to go through 100 of them to get to one. You're going to run across people that are liars, cheaters, and thieves, and you've got to know how to work and navigate that. Not saying that you have to negotiate with a liar, cheater, or thief. You just have to know how to play the Monopoly game alongside of them. They don't go away. Right. And so that's Cicely shared what she just had. I've been using Deal Hunter this morning to work through this contract and pointing out things like, for example, we signed a purchase agreement that said that there was tenants and a lease in place. Today, there's not a tenant in the building and the lease is in default. So guess what? Like the purchasing contract is in default, but they're disagreeing with that. And it's like, guess what? I got you.
I don't. Oh, NotebookLM. I was looking in ChatGPT.
And so with the fact that in NotebookLM, you got me talking sideways, or there's more than one. The situation where we got to go through 100 deals to get to that one is literally because of how difficult it can be to pin one deal down. Right. And so getting through all the BS, like that's where you're going to end up. So currently we got 6 deals in closing, but it was literally at least 1,000 deals to try and get So Blake and Cicely and Katia and Saray, you guys are doing the, doing the work that needs to be done for a community to be able to get 3 deals a month done. And so I just wanted to make sure the group understands the value to this, the value to this community is from the ability to sort through bullshit faster than anybody solo can.
Right.
And to understand and appreciate like us doing this way before AI, the insane amount of hours and days and weeks that it would take to actually get through even a couple of deals. Now we're able to go through them like Blake, how many deals are you essentially analyzing on a, in, on a day or in a week, do you think? Because you're like actively like you and Katya.
Sicily too. Sicily doesn't, she just tries. Sicily's waiting to get her diamond. Sicily's not going to show up with trash. Sicily's like, here's my gem.
She's so funny.
She's not showing up with trash.
I'm learning.
I'm listening. I'm absorbing. I'm coming. I'll be coming out.
Bri, on the other hand, is trying to find a $40 million $1 million deal for me to suck up.
It's like go big or go home, baby.
I love her. So I see, let's share the screen so that they can see the notebook. And then I would say I probably go through like 15 to 25 a day.
See right there, 15. He likes doing 15 to 25 deals a day right there.
We got to, I get 150 a day, 160 a day.
I would say like if you're, you want everybody to be at least analyzing 10 deals a day.
It's good practice. Lands Shark Strategic Business Plan 4 Block. Over on the right side, under sources, your studio, you're going to go to Savage System Blueprint.
This one? You want me to play it?
Play it. Just hit the play button. And so here we go.
So this is what you guys are going to get.
Yes, sir.
He's the managing principal on his project out there in Georgia, right?
North Carolina.
North Carolina. North Cackalacky. Next one. So right now he's presently an operator and what we're trying to do is get him over to a systems architect with the opportunity to be an enterprise owner of his, of his deal down there. And him and I are cut from the same cloth, basically, when it comes to what we're trying to do out there with multifamily development, affordable housing, and all the work he's doing. He's very big into the hustle. He's very big into the active time, but we hope that with this presentation, there's some reality checks here. So let's go next. So primary is in his assessment that he took, it indicated that what he is primarily a systems architect. He believes in the systems way of thinking. And then a secondary position is a cash flow philosopher, right? He's able to think inside of a cash flow way. So what this breaks down to is got repeatable workflow with predictable income. And what he ends up building is institutional wealth, like big money, like those are powerful tools. Next one. So the systems architect edge is that they understand repeatable workflows. They can get really, they're really good at delegation and automation. They believe in having a strong foundation, such as infrastructure. And then they also have a scalability mindset. Building out is important when you're building big projects like affordable housing, right? So within this, there's the primary focus is the predictable, durable income, and then having a leverage logic. And so what that does is it allows for there to be like I'm making money and then I'm going to leverage that to make more money and continue to make more money. And when you're able to build a pyramid of money, right? So many people hear the word pyramid, they immediately think scheme. And that comes from the fact that somebody utilized skills and systems to outmaster the system. And so everybody hears pyramid, but guess what? We still don't know how to build the damn thing. So when I say pyramid, I think about the fact that our ability to do that level of development and design and technology is gone because we forgot it. And so when I talk about it in the financial world, we have forgotten some financial tricks like building pyramids out of our cash. And we've done that because society says, oh, you gotta have a new car, new shoes, new, new house, new cat, new dog, like all these cool things. And what we're doing is we're fulfilling this psychological or emotional need. So inside of this, it shows here. That with that primary focus and that leverage logic, it fits well with apartment ownership and a stabilized cash flow portfolio. Doing good and doing well with what he's got, right? So this grows into generational wealth, and this is how it works. Next one. So anybody here heard of a SWOT analysis? SWOT analysis— strengths and weaknesses over opportunities and threats. SWOT. So within his assessment, these are the things that came out as a, as a, uh, uh, identifier of that simple breakdown, right? And what do you think, DeJuan? Is this, is this like legit? Is this not you a little bit?
The only thing I would say on the weaknesses is more the managing team complexity is putting the right team in place that can handle, that can handle all these different avenues for development because there's so many arms. And with me being a land guy, construction and land guy, but mainly land, it's, that's, it's so many avenues and So that temptation to scale piece is another one. It's like the scale piece is more temptation to go into too many lanes, too many different lanes.
Rather than optimize first.
Right. Well, I would encourage you to go check out my book called Blue Collar Revolution on Amazon. It's on Amazon. Blue Collar Revolution, helping contractors gain knowledge and efficiency through using AI. And so like you've used Free Estimates, I'm assuming. The AI.
Well, I don't, I don't do, no, I don't do more. No, really. I don't do contracting or anything. Everything around me revolves around the—
you're missing it. This is, this is where that weakness comes in. There's strength behind the AI free estimates that you haven't discovered yet. So you're a ground guy, right? I built this thing for me specifically. I'm a ground guy. And so I can actually feed it a site plan with cut and fill, how long, how much, and everything. Within 3 minutes.
Oh, wow.
See, I told you.
Okay.
Wow. Like you feed it, you can feed it an elevation cut and it'll come back and tell you how many trucks you need. It'll tell you what equipment to use. It'll tell you where to go rent it.
That I do need.
Okay. Next. So inside of this, what Savage has going on here, and I'm gonna just switch his name to Savage because I wanna say his first name so many different ways that I get confused. I'm gonna be like the Ron DeJohn.
Don't worry, man. I've heard it a thousand times.
Real long one, right? But the core focus right here is like where you need to be looking and getting expanded into the BTRs. I love that it's not talking about this guy as like he's a rookie. Like everything is talking about like, because he's at that level, he's professional level. He's not a newcomer, right? So build your recurring cash flow before you chase complexity, right? And that would be starting those syndications. Going into 40-acre properties to do big subleasing, right? Like, I know you can handle it, but we got to get the resume to do that.
And have it, the systems in place.
So over the next 30 days, this is going to be your 90-day blueprint, right? And you're going to set up infrastructure and deal flow, set up teams and pipelines, and then bust into the first acquisition and what you're going to be able to do with that. Maybe it's a, maybe it's a minor divide. I don't know what the rules are out there. In North Carolina, but I know, for example, out here in Arizona, I can buy 5 acres. I can split it 4 times and I don't have to ask anybody's permission to do it. I paid for a survey and they record those 3 new, 3 new parcel ID numbers. And it cost me less than $10,000 to create 4 new properties. Right.
Well, and he could have a conversation with Deal Hunter about building out these systems and just having them be repeatable.
Absolutely. I would suggest that he upgrades to the AI package that we have, right? That gets him, that gets him the Rosetta Stone, the AI voice, and the virtual team, right? So go ahead and hit the next one right there. What we're looking at is that these are your checklists, right? To find and get yourself situated with this. Go to the next one. Explaining like how to, how to set this up exactly. You can literally like screenshot this, put it in your, in your DVD and And they get creative. They create SOPs for me, create investor presentations for me, create off-market outreach campaigns, bring those to us and say, hey, Blake, I'll cut you a part of the deal.
You go get me a piece of property in North Carolina that matches this criteria. That's the whole point of all of us working together.
You gotta feed the bird dogs some birds to go bird dog on. Excellent. And that's why your membership here is important. It's because you have access to these people to do this stuff with, right? So what we do here is we, we're trying to get you into a situation where you're able to send out qualified letters of intent, get an asset closed, and then put that into the management loop, right? To set that up. So knowing what that looks like comes from how to establish each one of these things and doing the 12-month business plan, uh, infrastructure to the first deal, stabilization, scale, support, and then enterprise position. You're going to repeat this cycle until you leave that, reach that, or achieve that level of satisfaction. So here's my payrolls. Every one of them got here and they're doing it. I don't care. And the reason why is because I use what's called Maslow's hierarchy of needs. This is your hierarchy of funding architecture. You got your primary label layer where we can do commercial, conventional funding. You got your second layer where within Title 23, we can do your private money. Where you do your refis, and then you've got your backup layer too. What if the bottom two don't work? Well, that's where we have the joint venture already built into the membership with Land Shark. You create those private equity memberships and go into risk mitigation on larger development. So again, that's why my criteria box is $1 million or an acre. And if so, Savage wants to go and grab a 10-acre piece, but until we find— I'm on it. Because I can, I can make that 10-acre piece worth more than a million. I know how to do that. So what we got here is the architecture API dashboard. Where you need to be, here's your matrix. So you have an idea of what it's going to look like for Savage Enterprises to exist. So we always have pillars revolving around risk management because pillars, without pillars, you risk the roof falling on your head, right? And so we might have a stable foundation, but if we don't have 4 solid corners, what we put over the top of those could collapse on us. Right. And so these are the rules that you must follow in order to make sure that you have full understanding of what you're going into. Like we have right now, we're faced with a massive issue, but because of documentation, ensuring that our internal systems are in place, we stress tested our underwriting to the hill. We still did. We can't force people not to lie on an application because that's where all of our problems start, like when we do what's called a root cause analysis, RCA shows us that the root cause of our not closing the data center for $7 million, 100% revolves around somebody choosing to lie on an application.
So let's, I want to like pause and give that lesson. I want to make sure we come back to that, why this is a critical piece.
Never get through. Don't want Savage to get sabotaged by the rumors. So, and then right here, no cutting corners on compliance or reporting. Yeah.
Let's talk about that for a minute.
Ready for this? We've got somebody that owes us money. They owe us $6,000. They owe us $5,000 a month. They defaulted. We told them then it's accelerated now to $6,000 a month. They decided 3 months later, well, we'll send you $5,000. If I accept the $5,000, do I get to make claim to the $6,000 they actually owe me?
Yes or no?
No. Do I?
No.
Because I took the what? I took the $5,000 and I reset the term. Their convenience, not mine.
Right.
So I have to be willing to say, here's your $5,000 back. Give me 6 and then we're even.
So you're legally in compliance.
Legally enough. I can't take 5,000 because that's called a settlement.
Right.
So when we're taught as children to agree and don't argue and compromise, guess what happens? It makes you a weak business person. Oops. Mama's manners don't mean shit. I'm mad at my grandma.
So this is the end of this. So let me, I just want I want to share with everybody. That was the last slide. So really quick, here's the thing, you guys, like as you become more and more successful, you're going through, you're doing deals.
Oh, more. And she showed up.
There she is.
We love more.
Is that you're going to fill out lots of applications, lots of documentation. Eventually you're going to build out what's called an SREO, which is essentially your resume of all the deals you've done and structured. And make sure that everything is linked so that it's all in one place. Never ever lie or even embellish because it'll always come back and bite you. It's better to like be really conservative and undervalue like what it is you've done and how you've done it, because at least the team that's working with you knows how to work with that. But if there's been straight up like lying and fraud, this is a piece of what we're dealing with. Bad people trying to play dumb to get Well, and what happens in the world of like, like I have, I have to— SEC is who I have to basically report to for all the deals. And there's something called a bad actor. And so when we're doing full background checks on people, if they've lied, committed fraud, like all these things, these are the things that have them be considered a bad actor. Therefore, I need to cut them out to protect my investors. That's what I'm legally required to do. So don't ever do anything that has you be labeled a bad actor because you can never ever get rid of that label legally, ever. Like, once it's with you, it's with you, and that's it. Like, it's not like—
we had lunch with a guy who was trying to get us to raise $10 million. I did a background check on the guy while I went to the bathroom, came back, I'm like, let's go. She's like, why? I'm like, because we gotta go.
And even us, Tommy's point, us sitting and having lunch with him, like, that put us in legal jeopardy. Like, we have a friend of ours, and I can tell his whole story, but long story short, him and his business partner actually went to prison for having lunch with a bad actor. And that bad actor, a couple years later, did something illegal. And the judge went— or the IRS went around them basically and said, you should have known, you should have known what they were doing. And because we can't catch him and he has left the country, we're putting you in jail because you were associated. So you guys need to get— this is really serious.
Why it's important to do the due diligence. And so that goes back to what I was trying to share with Savage, because like, brother, I've been doing dirt a long time and bad actors show up in that deal all the time. There's a way around dealing with bad actors. That's why I have friends that can deal with bad actors. And then I deal with those people. That person's not a bad actor and I can get it done. What you got, Sis Lil?
How do we know if somebody's a bad actor so we don't assist?
Background checks.
Okay.
Full deep dive background checks on everybody. And if you need more information about that, let me know. Cause I'll work with my legal team to get that done for you.
Honor has the ability to do a small deep dive. That's true. I also have an AI written by a lawyer that lets me do a bigger deep dive. And then if we actually are taking more than a certain dollar amount, I do a professional deep dive with our SEC attorney who goes and checks what color their underwear were when they were born. So like, we'll figure it out.
Sarray, she's all, babies don't wear underwear. We'll find out. I heard you, Sarray.
Okay.
Deals. Whose deals are we running?
Amor's got a deal, right? We got to do—
I sent you the terms. Sheet, but I can't share screen right now. My thing is acting funny. But I sent you the— I also did $90,000. I know you told me to do $60,000 and $120,000 down for this RV park, but I also did $90,000 just to compare that. I sent it to your email.
Funny, right?
Say that again.
$60,000, $90,000, and $120,000, right?
Correct.
Let me get it up on the screen. Katherine, you're going to take care of yours real quick. Blake's got that deal ready to cook, right? I can flip the LOI.
We can have Blake go.
Blake, real quick so that Katherine can pull those numbers. And then as Laura is doing our transaction coordination right now on a few deals, we've got, we got 2 deals going into closing, I think right now. All right, here we are. This is the Nest Complex, Hangar 1 over on Helm Drive. We did not make it by there last night, but we'll go look at it today. Go ahead and go down pricing and seller terms, confirm current asking price. Okay. Instruction status. Occupancy permits and sign-offs. Okay. And then if they want proof of funds, we can send Catherine's PFS statement, our SREO certified thing going down, reason for extended market time, condo association documents. We also want to know about their fuel cells. So if that, are those fuel phone agreements, lease agreements, stuff like that. Airport taxi access confirmation. Yep. Title survey, easement, legal. I would, I would send that and then Are you signing it Titan Impact Group and sending it from your Titan Titan email?
Oh, you're talking to me.
Sorry.
No, what's this?
Let's see what email I sent. Oh, it's a shared Google document. Let me just reshare it so you have it at the top.
Who was sharing their screen? That LOI was for the hangar. That was my deal. That's what I thought. So did you go ahead and send that email to him, but make sure it's from your Titan Impact one? Thank you. So send that and see what we get. And again, if they want proof of funds or whatever, we can send over Katherine's PFS.
Personal financial statement. You're all gonna wanna start building yours. That could be a whole lesson.
Can you share? Sure.
Yep.
All right. Thanks, Blake. So this is from Amor. I got Katherine's and I got—
you got Katherine, Tamara, Camille.
Tamara and Camille.
And so we'll get theirs done so we can get their buy boxes ready. I'm not seeing anything from Amor.
Let me see it.
Send it down. Back directly to you, Katherine. Is this it? It says term agreement. Here, just sent it to you. I sent it to Katherine's email too now. Katya.
Katya.
Oh, there it is, Tommy, right under—
there it is.
These are the terms, right?
Yes, purchase price.
You want to save that and bring that in?
They probably definitely want less than 7 years, but I didn't know what you wanted me to change that to, so I thought we could talk about it.
So I think we're going to change it to 2. Let me pull it in and run it.
Did you already have a GPT running with this deal?
I did.
I No, I don't want to.
Oh, you want to start it from zero?
Okay.
Hunter, you want me to pull the—
okay.
And then talk to it?
Yeah. So I need to analyze what's going on. Is it working? I need to analyze this term sheet and I want to respond back with terms for owner financing on this RV park. The terms that I want is a $60,000 down, which is 10% of the asking price, which is $600,000. I want to show them a 10%, 20%, 15% down, opportunity for owner financing. I want the term to be for 2 years with a 20-year amortization and balloon payment after 2 years with an extension to go to 3 years. And I want to see what their monthly payment would be on all 3 cycles and what their total payoff amount will be after the term. Create this term sheet now in a canvas so I can edit, copy down.
So if y'all are paying attention, he's talking it through rather than typing. Because when we type, we condense what we want to say and we want as much as we can say because it gives the context easier.
It's really what works better for it. Because if you try to be concise and all that, it can be— it can mess up easier doing that than doing it the other way. So here we go. What do we got? So we're showing 6% interest only, all that, 10% down to $60,000, financing $540,000, go down. So over that 24 month period, we're going to owe them monthly payment of $3,869. And our window on this, correct me if I'm wrong, Amor, I think that they were saying that we make monthly a $5,400 a month, I think.
Something like that.
Right. Okay. Let's keep going through it. So, cause we got to pay attention to that. Sorry. Just hit the X up at the top with your left. It'll pull it back in. So option 1 shows that they're going to get an estimated total payments over 24 months of of about $92,000. And then we'll have an estimated balloon payment of $510,000. And so they'll walk away with $6,000— $600,000— $603,000. And that's because of the amortization. If we did that interest only, it's going to change it, change it again. We'll do it in a minute, but let's just run through this. Giving them $90,000 down brings us down to a payment of $3,654. And at the end, total payout after 24 months plus the balloon, they went down in price a little bit.
It's going to be $569.
I don't think it's taken into account the $90,000. So keep going down. We'll see. I don't think it is. It's not. Okay. Keep going. So the payment, the payment adjusts only by $200. Basically it goes from $38,000 to $36,000 to $34,000. Right. The payment for them is anywhere between $3,500 and $4,000.
Right.
And then we're making $54,000 and we're covering on that, but no expenses.
Right.
Keep going down.
This is where we always say, do the numbers and the numbers tell you what to do. So that's why I'm running through the numbers so that we can see this.
Go all the way down there. Hit the, hit the talk button. I noticed in the economics that you didn't include the $90,000 down payment into the final projections. If that is correct, make that adjustment now. And so now it'll just rewrite that canvas.
So it's thinking. It's done when it's a circle with the lines.
But if you scroll up, you can actually see it rewriting in real time too, right there.
So option 1. Okay.
It's still all out for some reason, but no, it's still doing it.
Option 2.
So watch, it'll change it. There we go.
It's changing it all right now. We're watching AI think.
What we're doing is we're trying to make sure more Fire Chief Extraordinaire understands the value to doing the owner finance. Because if he's going to, he's going to want to make sure he understands that the value is $450,000. We're giving them $650,000 now.
Okay.
Got it.
You see what I'm saying? Because that's truly the only way it really makes sense. And we can go out there and cash flow it at $7,585, $9,595 a month. And it makes sense for it to be that high because now the value is there. If we can get the cash flow to 95, if the value's at 650, there.
So I think for the benefit of everybody here, can you explain like the different terms that we can negotiate? Just because somebody says they want this much, there's all sorts of ways to structure it. So that's a win-win, right?
So you got, well, there's only really two terms that you negotiate in the contract: price and time. Those are the only two things that are are really your negotiables. Everything else is what they call a contingency. I want the refrigerator. I want the appliances. I want, I want you to fix the roof. Those are all contingent, right? To the terms. But the terms are always price and time. So when you're negotiating, if people want you to close fast and pay full price, that's a red flag. You gotta, you gotta work with me on something. So either I'm gonna pay less fast or I'm going to pay your price, but it's gonna take Because I want, I want to take my time trying to figure out if that price is valuable, if that price is worth it. Right. And so you either give me 90 days to close instead of 30, or I take 30% off the price and we close in 30 days. Which one do I want? Right.
And Deal Hunter helps figure out by doing the numbers, which one is a win-win for everybody.
Give me a time off and give me a price off it. And I'll present that. This one right here is owner financed. So what I'm doing here is we can close in a year. Because if all I have to do is put 10% down and take over the, take over the entire project, my cash out front of what I'm going to be making has to be greater than 25%. Does that make sense?
Wait, say that again. Can you say that again?
So my 10% buy-in, I'm getting the income coming in. I have to make sure that I'm 25% higher on that income so that I can pay the, pay the loan that I'm taking out. I'm asking, right? So, and they, and it's called DSCR, Debt Service, Debt Service Ratio. Has to be.
But what was the 25% thing that you said?
That's the DSCR. Be at 25% because if our monthly payment, let's just use round numbers. If our monthly mortgage payment's $1,000, I need to be paid $1,250 from the renter.
Got it.
I understand now.
Okay. For this property as a landlord. I'm paying $1,000 a month in a mortgage for the property. My renter, in order for me to cover that, needs to pay $1,250. Got it. Okay. Because my renter pays my mortgage and then I need to make profit.
But we still have to make some money on it, right?
Because there's expenses, there's taxes, it's called PIT, there's interest. So those are things to look at. Did it finish it? This— holy crap, it's—
it finally finished.
Okay. So basically what that shows is that the numbers go up slightly enough for them to understand. This is what I would send them because here it shows at the end on the, on the 10% down, it's at $663,000. At the 15% down, keep going down. It shows that they're at $660,000. They've added $50,000 by taking 15%. Go again. And then here you can see that. This one's at 682. Oops.
Sorry.
That one's at 682 total. So it's the, it's got the lowest monthly payment, but the highest down. Right.
And so they get to decide what's important to them.
So, and then if we wanted to, we can adjust it down to 5% and hit them low on an interest rate of 5%. So 6, but they say, no, I want 6. Okay. Well, we can do that.
Do you want to run the 5%?
Okay. We can send it back to him or do that.
Okay.
All right, Saray, thank you so much. Glad you came in. Look forward to our meeting later with the Florida group. When is that? Did we figure that out yet, Amor?
I thought it was on the calendar.
I think it is. Monday.
It's on our calendar.
You want me to send this chat to Amor?
Send this chat to Amor. And then Amor, if you want to put in there 5%, put in there 5% interest and give it to them like that. And that way there's room to negotiate up, right?
Love it.
All right.
And then you want me— I'll just send it to them with these options? With 5%?
Fill it 5% interest and boom.
So Amor, I'm just putting it at the bottom of the document so that you can—
Oh, thank you.
On the conversation there.
Okay.
Thank you. And you're sending me the link.
Okay. Just put it in your document.
Oh, got it.
Thank you. Your Google term right there.
I got it.
Yeah.
Got it. Okay.
Thank you.
Okay. Oh my God.
Who's number next?
There we go. No, that was it. So it's already 10:05, 10:06. Blake, you got yourself situated on this deal. Send that letter of interest and get the results. Make sure to incorporate me on that email out.
See what we're And I think what I want to start doing is I want to start getting like everybody's buy box and then we could put it into a spreadsheet and then like Blake and Katya, anybody who's like just doing the hunting part, they could literally start doing searches for that criteria to help find deals that meet that buy box. And then we could collaborate and do things together if anybody's interested in having Blake and Katya go have fun. Searching for deals like that.
Well, for once, we have our Florida meeting. I think we'll know more.
Okay, do you want to close us out?
I will do it. All right, everybody, bow your head. Heavenly Father, we thank you for the blessing of this day and the blessing of— we ask that you protect those that position themselves against us as enemies, because it was through you that they will receive all of their just dues. Give us the strength to refrain from vengeance and only seek your will. In your name we pray. Pray for your enemies because somebody needs to. That's all I got to say. But cool, thank you, and we'll see everybody later.
Bye everyone.
Bye.
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