GMT20260219-155924_Recording_gallery_1504x810.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 Open the deal room now and get into today's opportunity.

Good morning.

How are you?

I'm good. How about you?

Good. Trying to get all the things set up. Definitely a challenge doing it all on my own. This production is an obscene amount of work.

What production?

Just getting all the cameras and computers and everything set up.

Gotcha.

Gotcha.

Recording in progress.

Computers.

This. Okay. Can you hear me? Can you hear me from the other computer?

Sorry, I went to go close my, my door. Yes, I can hear you.

Awesome sauce. Thank you.

Okay. So many things going on. How's school going?

It's going good. I have 4 entrepreneurship classes that I'm taking. Oh wow, they're all— we get to work directly with businesses, so that's pretty exciting.

Yeah, that's very, very cool that they have you working with actual businesses and business owners.

Yes, and actually, when you come down for the networking finale celebration event thingy, there's going to be a professor there who is the head of the entrepreneurial marketing division, and they offer an opportunity for business owners such as yourself to be a part of this program where you get 5 entrepreneurship students and a mentor working together on any marketing obstacles or goals that you have. So I feel like that would be pretty cool. I wish I could connect you guys earlier so that a team could help you with this event. But they already started their semester. That's super cool.

Yes, I'm very interested for sure.

Okay, then I'll definitely introduce you guys because last semester I took his class and I was working with a restaurant, like painting the walls, discussing the menu design, hosting events. It's really cool.

That's incredible.

I love this. Okay, Laura, I am promoting co-host.

Fantastic. Thank you. Sorry, back-to-back calls already this morning, which is barely 8:00.

Yep.

I've been going since 4:30 this morning.

Kyle. Who's Kyle?

4:30? Yeah, I'm—

so there's a whole other thing that I'm really excited about that I've been digging into that I'm really excited to be bringing online to bring to all of you to generate the cash flow to turn around and be able to buy the assets that provide the passive income. And all that. So I'm like full on immersed.

More, more, more, more, more. Oh my gosh.

More, more, more.

It's only so many hours in a day to get all the things done.

So I got to get up at, you know, make your clone work on it.

And then I'm going until like 9, 10 at night where I can't even keep my eyes open. So I'm—

You get your clone to work on it.

Right. So this is where having you come in, Katya, to assist in taking some of this workload off of me, and it just keeps piling up more and more and more, and it's getting pretty overwhelming.

I can definitely jump in.

Yeah, we're stuck with and going through significant anxiety around all this anyway.

Okay, I know today is an industrial day, but I brought an industrial deal and a commercial deal. Is that okay?

Honey, you can bring any deal into all—

is that okay?

No, no, it's not okay. I can hold—

we had initially outlined that just to give people like ideas of the different deals that can be done, but we don't— if you haven't figured out, like, we don't have a clear agenda ever. It's like shows up and, um, you know, whatever is needed, like, let's do that because You know, it's money doesn't wait for deals. And, you know, deals are— when good deals are there, we need to jump on them immediately.

Awesome. That's so cool.

Okay, I guess we're not doing the— I don't know where Tommy is. So apparently he's not showing up today.

He's here but muted. It looks like he's talking to somebody else. Are you talking to us or did you mute intentionally?

Again, too many freaking electronics needs production team. So you said that you brought a deal, Katya?

Yes, I just sent it into the chat, or I can read you the address.

Yeah, I'd love for you to share your screen. And let's have you actually go through this because you've seen us do it a number of times. And now I'd like to— this is the muscle memory for you. So go ahead and share your screen and pull up we're going to go into ChatGPT and pull up the Deal Hunter by Land Shark.

Yes.

So I just, I'll do it in a sec. Hold on. I need to delete. I have like a gajillion tabs.

Oh, that never happens for any of us.

Wait, what? Oh, you guys can't judge my tab amount.

Oh honey, you're in good company.

We, I'm sure we could crush your tab amount.

That's true. That's a good point.

I have about 6 different Gmail accounts currently open with anywhere from, you know, minus some crazy—

I have a 49-inch monitor with all my screens and multiple tabs on each screen.

Oh my God.

I'm pretty close to it across 3 monitors. I got 2 32s and a 27 and an iPad and an iPad. A Mac and a—

Oh gosh.

And a—

Yeah.

You're not alone. Okay.

So do you see it?

Yep.

Yep.

Okay.

So I put—

Yep.

So this is the, what I found, and this isn't for— hold on, where is it? Oh, right here. It's just something that I found that stood out to me. So I just want to learn. So this is in Arizona.

Okay.

And it's, again, I don't know anything, so you guys need to tell me.

We're— I'm very familiar with this.

Yep.

Okay, so then there's this property right here. Okay, and I don't, I don't, it says industrial, and it also says opportunity zone. And so I heard you guys say opportunity zone. So I was like, okay, let's explore this. Yeah, so the Deal Hunter said this is development territory, which excites me. I like the whole process of development. I understand it's not a beginner deal. Let's see.

But you have some who's that aren't beginners.

Can you say that again, Katia? You said this isn't a what?

Beginner deal.

What is a beginner deal? Like, I mean, you played cash flow. Is this a, is this a small deal or a big deal?

It's a big deal.

Why is it a big deal? Is it cash flowing?

Well, I didn't actually play cash flow yet, so I can't tell you 100%, but so I don't know. But that's why we're exploring.

Yeah, no, absolutely. So again, mindset being everything, if you think an elephant's too big to eat, you're trying to eat the whole thing at once, right?

Yes. Yeah.

So when you, when you put it through Deal Hunter, you— what did you find out? Let's see what you found out.

Let's see. So I-2 industrial zoning. What I learned is that's like warehouses, industrial storage. And you have the opportunity to rezone it, but how difficult is it to rezone? And when is that an important option? That's a question that I have. But I—

the question is, who knows how to rezone? And then have the conversation with them, right? For somebody, if you're asking how difficult it is, you're asking the wrong question. Because for somebody who knows how to do it, it's not difficult for them. So it's not a difficulty question.

Which is why I asked you to answer the question, but it is difficult to do this because you'll ask, you'll ask it here in a minute. Go ahead and go through this real quick.

Okay. So let's see what size developer buys this. It's a 200+ unit apartment play, institutional industrial warehouse deal, $10 to $30 million total project size. It's about 5. 8.7 acres, which is 255,000 square feet. It could be a rezoned multifamily with 230 possible units. 40— that would be $40 million in development territory. See why this listing exists: Opportunity Zone funds, mid-sized developers. This is capital stack heavy. Let's see. So then it gives you the zoning. The reason it keeps jumping back into the Current capital is because I kind of let it know my current situation. So that's why it keeps jumping back.

That's why it's saying it's a, it's not a beginner deal.

Yeah, exactly. So this is again the mindset. So, uh, and it actually, I love, okay, so I love the difference of how Deal Hunter operates with different people. I designed it. When I talk to it, it actually operates under a little bit different pattern than, than, than what yours is doing right now.

So, and so, so I actually asked it to shift perspectives and I said, let's look at this deal from a perspective of a skilled investor.

Right.

And it said it completely shifted. So now it says you're not thinking 4 to 8 units. You're thinking about rezoning to multifamily industrial warehouse demand, mixed-use play. Opportunity Zone tax shelter. And these are the questions: buy-right industrial play, is it a rezoning for multifamily, a covered land bank instead of an Opportunity Zone? Just some things to think about. And the first scenario is the industrial developer, and then the multifamily rezoning, and then the Opportunity Zone fund. So what makes this a good deal? It's only good if the land cost per buildable unit is low enough. So then here it gives some calculations. So if the land costs $8 million and supports 250 units, that's $32,000 per door land basis. This could work if the land costs $15 million, that's $60,000 per door. So the truth is this could be a deal for experienced developers with entitlement teams, with capital stack depth, with construction relationships, and with 20% plus contingency reserves. So if I was a skilled investor, I would call the city planner, order preliminary title, run environmental phase 1, estimate the horizontal development costs, and stress test construction debt.

All right. So at that point, what you're able to see is that it— I love that it says, let me ask you, do you have $3 million liquid, a GC partner, capital stack ready, and a zoning attorney? If you do, you're good to go. So these are the tools you need to play this game right here, right?

Yeah.

So again, and it goes back to, I love that Deal Hunter operates within the mindset of the person operating it. This is the proof that AI is not going to take over the world because it still needs, it still needs you to plug in the information, right?

So, yes, definitely.

Right. So that being said, on this deal, this particular deal, Let's put a couple more prompts to see if we can pull the nose up on it.

Okay, sounds good.

Go ahead. And is that the last thing you have down there?

This is something new that I input, but I can branch out this chat. You want to see this one?

Yeah, let's roll through that.

Okay, so this one was this plot of land in Scottsdale, right next to some townhomes. And for this, I was asking, would this be a good purchase to potentially build storage units to make passive income?

Right.

So that was the mindset I went into it with. It's shovel-ready storage development. And so then it explained to me why storage is attractive, which is very interesting. Talking real numbers, it does. It didn't have a price, but Land Shark estimated $4 to $8 million. Let's say this is the building cost. So $13.7 million in construction, total project cost around $22 million. So the annual gross is $2.48 million, assuming 35% operating expense, NOI $1.6 million. If valued at 6% cap, it would be $26.6 million, roughly $4 million potential spread.

It's developer math.

I love that.

Developer, man.

So this would make sense for skilled investors if the land basis is right, construction bids are controlled, lease-up projections are realistic, market supply isn't saturated, and financing secured at good terms.

Great.

But this depends on whether or not there are competitors, because if there are, the rent can drop, the lease-up slows, and returns shrink super quickly. So what they told me is that Scottsdale is high income, but it's also competitive.

Yep. Yep. Yep. So good. This is a good projection. So, and again, it's apparently you've told it you want to do between 4 and 8 units because it keeps referencing 4 to 8 unit dreams.

Yes.

Right. So that's where it's, that's where it's pulling information from. Keep scrolling through down to the bottom real quick. So it shows you here what you're going to need.

Yes.

Is that institutional level, you'll need equity partners, construction lender. 35% equity and development teams with a feasibility study. So, you know, that's, that's kind of where you're going to have to land in this. These are on-market properties on LoopNet, right?

Yeah.

So they're going to be with savvy investors, people that understand equity, stuff like that. I'm not saying that all landowners don't understand it, but like an example of what I'm going through this morning is I'm trying to do a merger and acquisition with this concrete company only to find out that the entity itself has been out of business since 2022.

Oh, no way.

Yeah. So how do you have merger and acquisition with somebody who's not there? Yeah, right. It's— I'm, I'm literally trying— in the business world, it's called getting married to a corpse. So, and, and yeah, I— you can't do it. Like, so I had to call the guy this morning and be like, look, we got a problem, brother. So we work through— we're working through that currently. But again, this is to the point that you have to— you have to— before you start anything, you have to understand where you're ending it. And so you're— what you've ran a deal on here, it's using your mindset that 4 to 8 units is your dream. So it's going to compare that to your dream. Everything you feed it is going to compare it to that dream until you tell it that that's not the dream anymore. You give it a new dream, right?

Okay.

Because this is the way that ChatGPT works. I'm exploring how Claude and some of the other GPTs work because they're not built to be so emotionally driven.

Yeah.

But again, I don't put any emotion into my Deal Hunter. That's why it pops out stuff that like has mostly analytical to it.

Yeah.

When you're using Deal Hunter, it's going to relate to what you put into it. And you said you want to have this and you like this. And so have you already done your 125-question investor survey yet?

No, I haven't.

My suggestion is get that survey done and then, and then get the results over to me. And then when you get the results over to me, I'll build it out so that you can actually take your results, put it back into your GPT, into kind of like your Rosetta Stone, and will be the knowledge base that it pulls from all the time.

So do I take the 250 investor questionnaire through here, through the Land Shark?

It's 125 questions. If you go to GPT, you're the one sharing the screen right now, right?

Yeah.

Go over to GPT for me. Gotcha.

Okay.

Nope. GPT's right there.

Okay.

You're going to type in explore.

Okay.

Explore. And you're going to type in Land Shark investor survey. Land Shark's two words. It might need two words.

Sweet.

Boom. So when you select this, you're going to go, go ahead and start a new chat. And what it'll do, you can click on anything. I made them all the same. So it forces you to just pick one. And what it does is it begins the prompt. And so you don't have to, you don't have to finish it right now, but you can, if you don't mind going through each step, we can actually capture this as content. So this is step 1. Step 2 is to type the words ready.

Okay. Let me read it really quickly. One question at a time, multiple choice. Final output: Shark Investor profile. Okay. Ready?

And the intake information here says, you know, that what you're going to do is just put your name, your email address, and your experience level with your primary investing goal. And with the primary investing goal, those are examples. You can give it whatever you want, but those are the ones that kind of stick out to us a lot.

So could I— should I say mixed? And then should I put the specifics in parentheses?

Go ahead.

Okay.

And then with step 4, you're just going to hit the— just tell it to start. And what it's going to do is it's going to ask you one question at a time. And the best way to answer these is as quickly as you can. Like, whatever the first thing that comes to your mind comes in, put it in there.

Dang, putting me on the spot.

Does it work to talk? Do you have it set up, Tommy, to work to talk to it?

Yeah, you can actually dictate to it. Yeah, hit the dictate button and tell it your 3 sentences.

Okay, here. I don't think I've ever used dictate. Let me see. Okay, my top 3 financial goals for the next 5 to 10 years is ideally I would love to make enough passive income to sustain my lifestyle of travel and family as well as impacting others. I would love to own a home. Dang, this is difficult.

One more, one more. Pass it. Own a home and throw one more out.

I would love to, I would love to be able to retire and not have to work a 9 to 5 by the end of that 10-year gap.

There you go. So hit the check mark.

Boom.

It's going to verify everything. You can read through what you said and then you can hit the, hit the up button if it all sounds right.

I'm going to say in Southern California, because that's more specific.

If you're a manifester, that's how that works. And so the different style of questions, you go through them, 125 of these, they change up. There's, there's going to be like long form questions like you just answered.

Okay.

One is a Likert scale. So how important is financial independence to you?

It's super important.

Boom. Put a number 5 and hit the enter button.

Okay.

And then some of the other questions it asks is kind of like multiple choice. Hold on. Don't you hit the— I was going to say, don't you hit the X button.

You better— I gave you 5.

I need my 5 stars.

Okay.

Which long-term wealth outcome matters most to you?

Select one of these.

Well, I feel like the first for me would be financial freedom because then I can focus on building a legacy, creating community impact. Okay.

So again, you can roll through this pretty quickly. Yeah. And if you want, you can come back to it later if you want to.

Okay.

Store over in your chats. So if you go and click new chat right now, uh-huh. And then rid of it right here. It's right there. And you can start over again just like that.

Sweet. Sounds good. Perfect.

Go back to your deal. Let's go back to the, to the real estate deal and look at it again.

Okay. I have this one and then I have that one.

I like that one because again, this is, this is the one you started out with, right? Uh-huh. Okay. And so, uh, if you scroll down a little bit, uh, it shows that this is an industrial on a county island. So I want to kind of discuss this with you a little bit.

Okay.

But I want to do it in Deal Hunter. So let's go back to Deal Hunter because I want to feed it a prompt. I want to see what it does when I tell it what to do. Go to your conversation though, not this one.

Okay.

Where was your conversation that you had?

Hold on. Let me try to find it. Deal Shark.

Was it the— nope, that's the assessment.

Yeah, it's not the marketing strategy. It might be this one. No, I think this was another one.

Go to your search. Do you know where your search is?

Right here?

Okay. LoopNet. Is this the— yeah. And so it's probably that one up there.

Should I start a different one?

If you can't find it.

Yeah, I'm not sure. I'm so sorry about that.

Put in, try, try to search your chat again and look for Tempe. Because Tempe was in there. T-E-M-P-E. Yeah. See what comes up. Is that not the, is that, is that where, is, is that where you had that chat going?

Oh yes, it is, because then I was asking definitions.

Got it.

Okay, there's a long conversation. Yeah, here it is. Okay.

All right, shoot all the way back up there to that, to where the conversation split, where we were going to have that conversation split.

Okay, I'm going to split it right before the image. So right here.

Yeah, right there. That'll work.

Okay.

Branch a new chat. Sweet. If you can hit the dictate button, see if it'll work.

For some reason, it always dictates To my phone. Let me see.

Well, if you hold your phone up to the microphone, I can still talk to it.

Okay. Yeah, go for it.

How's that? Okay, perfect. So hit the X button right now, right there, and then do it again.

Okay.

So what I would like to do now is analyze this deal for industrial development. Since it already has industrial zoning, give me 10 possible things that I can build here. And identify what the return on investment would be for each one of those. Click it and go. Yep. Just send it. And so now what it should be doing is analyzing this for what the zoning currently is. One of the things you can eliminate by having to do a rezoning is, is, is a lot of time. This has got what's called I-2 industrial zoning, which makes the land value very high just based on, on the zoning.

Okay.

Okay. Thing is that it's in a county island, and I'll explain that in just a minute. So, okay, going down. Let's go through this. So the industrial development options with estimated ROIs. Let's take a look at those real quick.

Okay.

Build 120,000 square foot. Total project's $20 million. Rent's expected to be about there. ROI 58%.

Nice.

Okay. Last mile logistics warehouse. Do you know what a last mile is?

I have no idea what a last mile is.

So they ship stuff from California to FedEx. FedEx sends it to a smaller warehouse. That smaller warehouse then takes it from that smaller warehouse out to the consumer. That's the last mile warehouse.

Okay.

Okay. So we built another 150,000 square foot building, rent it, do all the things, ROI 45%.

Do you guys have a rule where you won't invest into something unless it has like 60-plus percent ROI or 40-plus? What's your rule?

When I built Deal Hunter, I told it for me, I told it because you told it 4 to 6, 4 to 8 units is a dream for you. My dream that I told Deal Hunter, it has to be between $1 million or more than an acre.

Okay.

Needs to get more than 40%. And we, we start looking at 60%.

Okay.

And we won't touch nothing under 20%.

Okay.

That's the, that's the dream I gave mine. Keep going down. Let's take a look. Light man—

I didn't tell him my dream was 4 to 6 units. We, we decided together.

Yeah. So this one, light manufacturing facility with a single tenant, lease to credit tenant, meaning a credit tenant is somebody like Amazon, right? Total credit tenant. We put them in there at 69% ROI. Industrial condo units. This is Adams Lane right here. We build them, we sell them, we don't lease them, and our ROI is 80%. Keep going. Wow.

Okay.

Data storage, climate control warehouse, 95%. Wait for it. We're at number 5. We ain't even made it to number 10 yet.

Holy moly.

RV boat storage facility. Very low build cost on that.

$113,000?

Possibly. Keep going. Self-storage, $83,000. Industrial office hybrid campus, $57,000. Cold storage, $78,000. Outdoor storage, $125,000. That's my cake right there.

Well, what is outdoor storage yard?

So an outdoor storage yard is where I store 53-foot trailers that usually haul up and down the road. So those guys can go home and poop in their own toilet.

No way.

$125 plus $300 per truck. Now, you ready for this? Let's dictate it again.

Okay, I'm ready.

Based on the total square footage of the lot, I like option number 10 the most. Tell me, uh, break this one down, uh, 100% for me. As a logistics yard for 53-foot trailers and the rigs that carry them down the road. I want to know how many units I can put in there and how much I should materially charge to do this. And I want it to be fully maxed out with trucks. Tell me what that looks like. Ready, go. Okay. It'll know which one to do.

Okay.

And so here it identifies a lot of the, a lot of the things that we already understand, that there's a low vertical cost to it, low risk on that. It's in high demand because it's temp B. Matter of fact, I was talking to Trevor. How many days ago were we talking about this, Trevor? Like a week ago? Yeah, I think it was the end of last week. Yeah. And look at this. Kathy is like slamming the door in my face. She's not even in Arizona. It's like, what I found for you. See?

Boom. Get this going.

Go, go.

Okay.

Right here. Realistic usable coverage space is 65 to 70%, which says that then what we have is a total of 179,000 usable feet. The standard truck parking needs 12-foot by 60-foot. Keep going. So that roughly means that I'll need 3,000 square foot per trailer positioning, which puts us around, let's see what the rest of it says, around 47 full tractors. Okay. So 45 to 50 full rigs in operational functionality. They're going to pay $600 to $1,200 bucks per month per stall. Okay, because of the security, location, the paving, quality lighting, gated entrance, proximity to that, to all those spots, right? So just averages at $950 at 47 stalls, $950 a month, $44,000 gross annual revenue, $535,000. I have 10% for vacancy, and then estimated expenses are 20 to 25% because I've got insurance, taxes, staffing, security and maintenance.

I'm not—

no, I have $361,000 and a cap rate of that. It stabilizes at a value of $5.5 million. Okay, right. So, and that's fully rented out, doing all the things. So that's awesome, right? So I mean, and again, I'm just collecting mailbox money. $365,000, $360,000 per year mailbox money. I'm not doing anything with it. This is 100% passive once I get it to that point.

That'd be great, right? Okay.

Which point you go, I want 10 of them.

Get into it to, to, to really like make it 100% the best place in the world. It cost me $4.5 million. And then if the, the site cost me $800,000, I'm sorry, $8 million plus land cost. So if I think— did this one have a price on it or no?

Um, I don't think so.

It didn't.

No.

Ready for this? Let's get it to go and do a little work for us.

Okay, I'm putting you back.

Address. If you can go back, find the address, copy the address right there at the top. 1035 East Curry.

Okay.

Right, bring it in there, drop it in there, and then give it to dictate. I need you to scrape— I need you to scrape every site out there for this address. And tell me what the last price it sold at was and tell me if it's been listed at any time in the last 5 years and how much it was listed for. Ready, go. And so I'm going to talk to it like, like a realtor. Like, I now I need it to act like a title agent, right? Okay.

I don't have live web streaming. Okay.

Okay. It's— I'm not going to let it tell me to do the work. I'm going to tell it to do the work. So let's see what it did.

Okay.

Keep going. It's telling me all the steps, but I want it, I want it to do the work, right? So again, it's just guiding you on what to do. Now I'm going to tell it to do the work.

Okay.

I appreciate all the steps you've provided me. Now I need you to do the work and go find where it's listed. Use all the listing sites we've, we've put into the knowledge base here and use any information you can find on the internet, including public access websites.

Okay. That's a bunch of hockey puck Do you want to see if it, if you do it on your end, if it'll—

Yeah, give me the address. Let me see if I can get it to do it online.

Okay, I'll put it in the chat. Or would you rather I read it to you? 1035 East Curry Road and 1050 East Gilbert Drive.

Keep that right there for a minute. Let me go through this. While you're looking at that, the other part of this is the county island. Let's go back to your, your GPT, and I wanted to explain to you what the county island aspect means. And so This, this particular lot is not located in the city limits of Tempe. And why that matters is right here. The county controls it. Zoning, building permits, development standards, impact fees, annexation, everything is all based on the county. Now we can get the city to annex it into the city after we build it.

Okay.

Right. Which then gives us— we can go in and negotiate tax incentives. By doing that.

Okay.

All right.

That's awesome.

Yeah. Yeah. Super cool stuff with this.

So, yeah, that's so exciting. Okay.

Right. We have city access to stuff like— we have city police, fire services, water, garbage, all that. But we're not paying city taxes. Now, the city can— we can annex into the city to get zoning changes done and density increases and stuff, but the value will jump exponentially as well.

Okay.

Okay. And this is why I told you, don't, don't think you have to be Donald Trump to build this. Okay. And this is why, because you can literally strike a deal with these guys, go down, talk to the city, get the city to agree to annex it. And you're brokering the deal to get it annexed. You could literally get it annexed before closing and then sell it as an annexed property as kind of like a wholesale. I don't want to call it wholesaling because it's not wholesalers. Don't do shit to improve the property value. So I will tell that to every wholesaler out there. Um, this particular item here, being that it's in a county island, if you can get the city to approve your idea and say, yes, we'll annex it, you'll add probably another $1.5 million to $2 million to the property, just based on the fact that it's now a city property.

So annex, um, can you give me a quick definition?

Put it right there.

But then it'll— okay, let's read through this beforehand. Why developers care because of the timeline. The real question: do you want to develop, annex, and rezone land, build?

Okay, when it's in the city limits, it can be governed by the city. But when it's not in the city limits, it's governed by the county. City is guided by elected city officials. They make the rules.

Okay.

When it's the county, it's called the board of county. Uh, it's a board that is elected and they're typically not as in tune with the different things relating to development.

Okay.

But just a finer group of people looking at it. Right.

Okay.

So ask it to give you some of the values to being annexed and it'll probably tell you that as well. Right here. It's telling you right there.

So zoning potential.

So we can, we can go to the city and say, hey, we'll build more, we'll build more multifamily. We'll, we'd like to maybe put some retail in here because the city wants tax dollars. With this property not in the city, it doesn't get any tax dollars from it as a city. So by putting it into the city annex, it gets to charge them taxes. And then they'll, they'll be like, oh, well, you want to change it from industrial over to multifamily? Absolutely. You're bringing more people into our city, right?

Okay, but if we wanted to do the lot to host the trucks or the trailers, that would be industrial?

Yep.

Okay. And if the county allows industrial, and we don't need to do a rezoning or an annex, then we're fine leaving it with the county? Or is it still better to go with the city?

No, it's actually better to leave it with the county if you go industrial, because it's already there. The only reason why you would take it city is because let's just say, for example, you don't know me and you don't know how to turn this into a truck parking lot. That's why it's suggesting you look at it as multifamily, because the market says this is a good multifamily spot.

Okay.

And so in order to get it ready for multifamily, you don't have to be a multifamily builder to do it.

Okay.

You literally just present the idea. You do all the legwork and paperwork to get the city to approve it. You add value to the property that way and then sell it to a multifamily developer.

Okay.

Right?

Yeah.

And so this is how you do it as a beginner. You can get into it doing this under that.

Okay. Awesome. And yeah, like you said before, $3 million under county industrial, but $9 million potential if annexed and rezoned.

How did you all of a sudden make $6 million in equity? By doing a little work and a little paperwork and some idea I had that on On Deal Hunter.

So you can, you can purchase it and then just do the rezoning and annex it and then sell it to a developer.

Purchase. You can do a purchase option.

Okay.

Which is if you, if you— that's homework for you. Look up how to do a purchase option.

Okay. Option.

Option. Okay.

Yeah. Option to buy or purchase options.

A purchase option gives you control of the property. You can negotiate in that purchase option to do all of the entire titlements necessary to raise the value. The purchase option locks you into a contract price they can't change. So basically, it's like if you went to a car dealer and you went and bought a Lexus and you said, I want to pay, uh, $50,000 for this Lexus. They said, great. You said, okay, and then I'm going to have a bunch of add-ons and upgrades added to it, and I'm going to sell it for $100,000 when I'm done. And they were like, yeah, I don't care. And so because again, they got their $50,000, that's what they were happy with. Right. And you added some add-ons to it that made it worth $100,000. They're not, they're not entitled to anything but that $50,000. Right.

Okay.

So that's what a purchase option does for you with a piece of land is it locks you and the landowner into a price that he can't change regardless of what you do.

Okay. Okay. This is so cool. No way. Okay.

Right.

So this is what we just talked about.

Yeah.

Land entitlement arbitrage.

Yeah. And so what you're trying to do then is just a land entitlement. Boom, boom. So, but it says right here, it says to buy the island cheap. You might not be able to. So instead of buying it cheap, you talk to Trevor and his crew and you buy it, create it.

Okay.

So, right, Trevor?

All day long.

He's like, yep, that's what we do. So, because again, There's, you know, when you're looking at real estate, you want to stay in your lane. And this is why I'm encouraging you to do that investor assessment survey so that you understand what your best channel into stuff would be. Right? So give me that address one more time. My GPT is freed up now. I can, I can pop this in there.

Yeah, no problem. It's 0— I mean, 1035 East Curry Road. And 1050 East Gilbert Drive. And it's also an opportunity zone. So opportunity zones can be used for tax benefits, correct?

Right. And then so if you want to, if you want to play around with that, go back to your GPT.

Uh-huh.

Go to your GPTs.

Okay.

Go to explore. And then you're going to type in, you're going to type in O-Z, like opportunity zone. Is it this one? There you go. That one. Yep. And so you can start the chat there and you can put the, go ahead and put the, the listing. Do you have a, like, a screenshot of that listing?

Yeah, I do.

So you just drop it right there into the, into the chat, and then tell it, if you want— I'll, uh, go ahead and analyze this deal for an Opportunity Zone development. Give us a case study of how this will work. And so what it's going to do is it's going to utilize the information we've given it from an Opportunity Zone developer standpoint kind of break down what, what you can actually do here with this in an opportunity zone. So it'll describe how to set up the entities, because that's really what it's about, is that these are entities that have to be formed.

Okay.

You'll have, you're going to have like your capital timelines, you know, raise the capital, deploy the capital, build the things. It explains all of that. Then you've got the compliance mechanics, very important side of this where the project side has to meet certain criteria. It's like a 70% tangible property test, the 50% gross income test, the same business rules. So these are things that you need to be aware of. And then the big investor outcome is that there'll be a deferral of the original capital gains plus a potential exclusion of appreciation in the opportunity zone investment. After a 10-year hold. So, it builds a case study for you now.

Okay.

That you can see here is that you would build 2 to 4 buildings or maybe 1 or 2 large ones, do divisible bays, split them up, do light manufacturing, contractor service, e-com, last mile, blah, blah, blah, put everything in there. And then, it even gives you a phase plan so that you can phase yourself up to where you got to get with it.

Okay.

And it'll build it out 100%. And then what you're trying to do is develop a qualified opportunity fund that has the ability to generate a return. In the industrial space, we've seen that return was pretty high, so we could, we could adjust accordingly. But it, you know, it's got to be ground-up OZ. It's got infill. The infill adds a strength and There's a two-parcel configuration already, which means you could literally like build two different buildings and sell them to two different people because this is one and this is the other. Yep. Yep. And so you're dividing it that way and creating, creating two properties out of one.

That's awesome.

Right. And so, yeah, there's a lot of things you got the opportunity to do here. So the property, I got the agent's phone number right now. Let me— We'll run our tests because this is why we created Deal Hunter, right? Because who wants, who wants to put the bet that, that he's not going to answer the phone?

$2.

Anybody, anybody want to bet this guy answers the phone?

I'll bet $2 that he answers.

I'll lose that $2 because there were 1,000,000 on, on realtors that don't answer. And so this— hello? Hello? It didn't even ring. Oh gosh, you don't even, you don't even ring. Try it again.

Okay.

602-775-4101. And this is Robert.

This is Robert Souls.

Yeah, we're trying to call Robert.

And what are you asking Robert?

Hello? Hello? It won't even ring. So I've got 2 more numbers.

Okay.

I got a 323-904-2222. I don't know why. I don't know why realtors carry phones anymore. Back up. So, wrong number. 602-750-1695. And so it's funny, there's a guy coming to town doing a speaking engagement, and he's, uh, uh, hi, you reached Kimberly Rollins.

Sorry, I can't take your call right now, but please leave your name, number, and a brief message, and I'll return your call at my earliest convenience.

You owe me $2.

Okay.

Good morning, Kimberly. My name is Tommy D. I'm calling about a piece of property in Tempe, Arizona. It's a 5.87-acre piece of property. You came up as a possible contact for this through MRED Commercial Properties Incorporated. So if you would give me a call back, my number is 602-888-9199. Thank you. And I'm going to try that other number one more time because It was weird how it didn't even ring. It just went straight to like— it was like it literally just picked up. Hello? It literally just—

that's so weird.

I know.

What the heck?

So again, this is why I, I have a hard time working with real estate agents in general, is because it just— they never answer the phone, right?

So if I click message, they won't respond?

There's— if you click message, there's going to be an outside agent that contacts you to act buying agent.

Okay.

And then you won't talk to the listing agent.

Okay. So when you call them, what would you have asked?

And so can I call them and get the information for you? Yeah. I mean, we can— let's pretend, let's just pretend, uh, uh, on that real quick. But, uh, you can go right here and I'll, I'll prompt it to tell you what to ask or how that conversation would go. Can, can you give me, um, a list of questions to ask the listing agent once they answer the phone so that we can move forward on possibly putting together an LOI on this property. And so my question, first question to them is, why is it getting sold? Why are you selling it? So, but you can ask all these questions and get it to get you some more information this way too. Right.

Okay.

So, but my first thing is to always follow the rule, like what, why are you selling it? Because At the end of the day, it's like when somebody's selling a car, why are you selling the car? Oh, well, because it's got, it's got mechanical issues. Okay, good to know that. Right. If you tell me you're selling your car because you need to raise money to, you know, pay for, for food, like, okay, well, let's work out something else. Like, maybe I don't want to buy your car. Maybe I want to help you with the food.

Yeah.

Okay. So it's just things like that that, that I look at. Yeah.

The why will give you their motivation and how motivated they are or not.

Yeah. And so, and then getting into the conversation about the price, I ask about the pricing. I ask about what are—

I always immediately go to what's more important, closing now or getting all the cash they want, because that can lead to seller or some sort of financing, correct?

I have the ability.

Okay.

When, when I— because I'm going to negotiate one or the other, I'm not going to ever get the time I want and the money I want. Yeah, I'm going to find out what they're motivated by. Are they motivated by the money or are they motivated by how fast this can happen? So if they're motivated by how fast this can happen, I'll bring, I'll bring them a really low offer and get them out of the way fast.

Yeah.

Or if they're like, oh, well, we don't care how long it takes. Great. Are you— can I pay the price you want? But can you give me, can you give me a year to close? Can you give me 18 months to close?

Okay. Okay. And then we'd pay them monthly or quarterly. Okay.

No, not at all. No, you don't pay them anything until that time.

18 months.

Oh, okay. That's cool.

So the idea is that they accept my full price offer, but give me 18 months to do what I need to do.

Okay. Gotcha.

So just little tidbits of how to, how to maneuver and work through some of those things.

Okay.

And then let me see.

I'll call them and I'll ask the questions and I'll get back to you.

There you go. There you go. So they're probably going to say, do you have a proof of funds? You're going to say, my partner does.

Okay.

Right. And then they may ask you to have that proof of funds sent over, stuff like that. But yeah, you want to know all the, all the questions and sometimes they will delay you in getting those because that's what they do.

Okay.

Right.

Okay. Okay. But I'll try it out because I feel like it'll be a cool learning opportunity.

Absolutely. And, and there's a guy coming to town, uh, his, his moniker is TTP or something like that, and he's always encouraging people to pick up the phone and call. Um, I would like if somebody came to town and had a conference that taught people how to pick up the phone and answer. That's the conference I want to see.

Your conference? Answer incoming calls, not Tommy Dobczyk.

I have his direct number. I know exactly who you're talking about. It's Brent Daniels. Yeah, Brent Daniels. Like, I want to go on his panel and say, Brent, how do you get them to answer? What is that, right? So, but yeah, Brent Daniels, he's going to be talking with Ingrid, I think.

That's what you told me. You got to be that they're going to pick up the phone. That's how you get them to answer, right?

Right. So again, I, I get frustrated, and that's A lot of the reason why a lot of people leave the industry is due to the frustration of dealing with these people that call themselves professionals. I know for a fact that if I was selling a property and the agent couldn't answer the phone, I would fire them immediately.

Yeah.

So that's just me. Okay.

Well, I'll try.

I'll try. Just make the call.

No try.

There is no try in Land Shark.

There is no try.

Well, no, I'll try to get in contact with them.

No, no, no. There's no try.

I will get in contact with them.

Well, the other best way to do it is you find a commercial broker in town and say, hey, I've been trying to get a hold of this guy to buy the property. Can you help me get a hold of them to do so? Because again, once it goes into a listing, like, good luck.

Gotcha.

I've literally— ready for this quick story? In order to buy a piece of property, I literally had to write 10 contracts on it through 10 different agents to get to the point that I could actually have one finally accept.

No way. Okay.

Yep.

Sounds good.

And I had to— and I had to go and get 6 different joint venture partners to help me do it too, because after, after it got denied and thrown out, we had to start over just like it because they refused to tell me the price or at least be, be negotiable on the price. Right. So I would, I would work the deal and then find something wrong and try to negotiate that. And then the price would drop after the fact. And then I'd have to come in with a new buyer and a new agent. And do the whole thing over again. Wow. Yeah.

No way.

Yeah. No, that's how it works sometimes.

Well, it's exciting. Okay. I'll get back to you.

Awesome. All right. I'm looking forward to it.

Sweet. Likewise.

All right. Well, we're past the hour, so let's just, uh, end it up, wrap it up with a quick prayer. Heavenly Father, we thank you for the blessing of this day and the blessing of everything that we have in this world. We ask that you continue to bless and guide us so that we can always go out and do your will and your son's name we pray. Amen.

Good. All right, everybody, have a great job today, Katya.

Thank you. Have a great rest of your day, guys.

You guys too. And Trevor, we'll catch up after this call, correct? Bye, guys.