GMT20260313-155928_Recording_gallery_1774x766.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.

Hey guys, good morning. Here we are in Denver, Colorado at the Gaylord Resort. Barbara Cooperman is speaking at the conference right now. She's the one.

No way.

How awesome.

Really amazing story. I want to actually go back and hear the rest of her story. It's really powerful.

She started like a multimillion-dollar real estate company with like $1,000, right? Something like that.

Yeah, because her husband decided to leave her and marry the secretary. And then she said he came back at her and said, you'll never make it without me. She said, nothing better than an insult to motivate, right? Yeah. She sold her company for $66 million.

I love that. That is awesome.

No better motivator than an insult.

Nico. Who's Nico? Promo Nico.

He's the one that's got that super cool app that—

Oh, right, right.

The audio of your goals and stuff.

Yeah.

Want you all to do. There he is. Hey, Nico.

So, yeah, I couldn't see myself. And then Laura was like, who's this Nico guy?

I love it. Glad you guys are here. Yesterday, so many things are happening again. I don't particularly like conferences, but I do like the connections and the relationships that come out of it. So of course yesterday made a ton of friends, met another billionaire, had an amazing conversation, got to share about the Scottsdale Summit, which he's actually going to come check out. He's super excited. And the nonprofit of getting 120,000 children adopted and stuff. So very profound conversation that I got to have with him. And with lots of other people that are going to come be a part of the summit, which I'm really excited about. So we're getting, definitely getting some traction. I can see that. Especially deal heat deals here, like you can feel like literally in the air, people want to do deals. Like that's like the biggest thing. And that's what we're going to be doing at our conference. So I'm really excited about that. So we really want to be promoting that. That's exactly what's going to happen. So I'm super excited. And then, um, talk about the power of connection. I get this text yesterday that, um, or no, it was a call. I got a call. On Wednesday, right before we were getting on the plane from somebody I'd coached years ago with all the AI and helping him raise capital. And he said, you like to be the bank and rent dirt. So we have this opportunity that's 720 acres in Nevada. It's dirt, you know, can you take a look at it? And anyway, so I was like, send me, send me over the information. I'm getting on a plane. I can't, you know, I'll look at it later. So he sends me over the information and then yesterday we Ran it through, run this deal. So, and of course he, uh, the plan that they had, it just, yeah, for lots of reasons isn't the highest and best use of the land. So then I called my connection back and just said, look, the deal you sent me just isn't the highest and best use. However, the highest and best use, we do have other ideas for it. If this person is open to it. We would be happy to sit down and have a conversation. I'm in Denver, so I, you know, not going to be able to do anything until I get back. Turns out that the guy actually lives here. So he was very interested in what we had to say, ended up driving 2 hours just to come sit with me yesterday at 5:30 last night. And we sat and talked for about an hour, an hour and a half, went through all the things. And this morning he texts back that him and his partners are very interested. And, uh, they're needing an LOI and, you know, to move forward with all the things. So again, you never know who you're gonna meet. You know, again, it's just showing up, right? I think about all those times if had I just showed up, and as a series of events, you know, I met Andrew, and Andrew's connected me to this person. You know, it's like all these— just show up. You never know, you know. So this is a perfect example. So this morning Tommy's been working hard to work out the details of this LOI and all the details. So he's standing right here.

We're going to do it on the show. We'll do it on the podcast, but I sent you in a text message Rob's information. So I want you to show, I want you to show them what we talked about with Rob.

So, so which ChatGPT?

This one. That one's—

this one.

Yeah. Do that one.

Okay.

Do you have a microphone on or no?

Um, you got— you all can hear me, can't you?

Yeah, we can hear you. You're loud and clear.

I'm just thinking for the video quality so that we can— okay, I'm not— people need to hear you because I'm going to go on my phone down the street down here.

Oh, going down the street?

I'm heading down.

You're gonna walk down the street?

The corner?

You're gonna head to the corner?

I'm gonna head to the corner.

Tommy's gonna work the corner.

So this hotel is so large, you definitely could talk say it's the street for sure.

I'm going to a different area code. I'll be back.

That is accurate at that hotel.

Are you guys at the Gaylord? Yeah, yeah, the Squad Up Summit.

It's monster size.

But yeah, let's see if we can get this open first.

Yeah, beautiful hotel though.

Close it and come back into it. There you go. So share that with them and let them know, and I'll jump online. Somebody let me in.

I'll let you in.

Okay, so let me share with you all. So it's kind of comical being here at the Squad Up while he's coming on, it's that they have these awards for your first $10,000, $100,000, million dollar, $10 million. I'm like, I've already exceeded all those. What else you got? I've already exceeded $100 million. So, and the people look at me like, well, why are you here? Connections. And to serve whoever I can serve. Okay. So let me share my screen with all y'all. Okay. Can you see this? Yeah.

Okay.

So this is who he is. So he has, uh, he's tied to oil field and water treatment. Um, what he could verify is that he's the president of Water Assets. So he has a, uh, patent, which we're gonna talk about in just a minute. So this land that we're talking about, they were originally talking about just doing cannabis on it, but 720 acres, you can do so much more than just the cannabis. So they have 13 artesian wells on this property. And so we talked about doing the buffalo, doing the alfalfa, doing retreats and like agritourism stuff. Yeah. So is Tommy here yet?

Yeah, he's here.

Did you let him in?

He's in.

Yeah.

I'm just, I'm just walking out to the, to the veranda here at the, at the hotel. So I don't want to get yelled at by anybody for being too loud. So anyway, yeah, the guy, the guy's sniff test passed when we, when we ran him through GPT because again, we're, we got to trust and verify. So when the guy said that he did something with oil and oil and water is what he said, never heard anybody say it like that. So I was like, oh, he's in the, he's in the minerals. He's not after oil. He's after minerals. Water is minerals, right? So when he talked about his information about this, this, and I found out this morning, he does not have a patent on it. He did not patent it because it's a blueprint for people to steal from you. So his technology was just for proprietary use only. And so that has value, but it also decreases opportunity. So by having a patent, he could leverage it to raise the $2.5 million that he has. Right. So what we're going to do, uh, is we still have the conversation from yesterday that Catherine ran, right? And what I'm thinking we do is we pop that conversation back up and we feed it the information we discussed from yesterday after we had the conversation with him, because he's wanting $2.5 million for 700 acres and he's wanting to have 70 acres of the 700 is going to be used for cultivation of cannabis. And so the numbers on that cultivation of 70 acres turns out to be somewhere around $100 million a year. So when you understand that, yeah, it's, it's, it's a, it's a risky business. Right. And, and, and all of that. Well, so was Jack Daniel's back in the 1940s.

Yeah.

Right. So there's a lot of evidence that shows risky businesses doesn't mean that you necessarily need to lose money. Right. If it's going to make a net ton of money, great. We got a net ton of money that's there. What do we do with it? Oh, we go grow alfalfa. We grow microgreens. We grow mushrooms. We go bison. We grow grass. We grow a bunch of stuff that doesn't make money using the money coming from the stuff that makes money. So if we have, if we have 90% of our land operation costs covered by 10% of the property, That's the goal. Yeah. Right. And so that's what I want to talk to GPT about today. We'll review what we went over yesterday about the property and the cannabis operation. And then we talked to it about the bison, because I talked to Rob this morning and his like, literally like, he's like, I know it's not going to be a deal breaker, but I got to ask. He's like, one of our, one of our partners on our team wants to know if we do bison, can we, can we carve out a portion of that and make it kosher? I've never heard of a kosher bison, but I, I'm now wanting to try one.

Sure.

Yeah, 100%. Yes. Like, I ain't got to argue about that. Absolutely. Let's do it. Let's make— I've had kosher pickles, right? It didn't kill nobody. So I was like, yeah, we'll do that. But again, it goes back to when Tom— when Rob mentioned all the things that he did, I went to ChatGPT, looked at the prompt that I put in there. It's very simple. Deep dive this dude. And what it did was it went out and deep dived, pulled back a lot of information that I could validate then that he told me yesterday. ChatGPT verified it. And I validated it. So now, yeah, let's talk a little bit more about this property. So when I reached out to him this morning about the patent, because in the, in the documentation that GPT came up with said that he had the technology, but it wasn't real clear if it was a patent. So that's what I had to find out. And so he said, no, he doesn't have a patent on it. So I want to make that clear. But moving forward, his technology is very useful for the aggregation of and cultivation of crops. Right? We can actually use his technology to clean the water that's coming out of the 13 wells that are out there. And when I say wells, these are natural wells. These are not man-made holes in the ground. This is literally an artesian well, basically a spring. They call it an artesian well based on how it flows. Go look up the difference between an artesian well and a cold water, hot water spring. There's a difference. And so it's all based on like what it does, but it produces somewhere around 1 million gallons a day. And so what we can do with 1 million gallons of water a day when it comes to agricultural projects like growing alfalfa, microgreens, mushrooms, bison, all these different things, vertical farming in and of itself, like Nevada's not the best place to do any kind of corn farming or anything like that, in my opinion. But it certainly would bode to be out there with solar panel trailers that you can grow vertical, you know, farming in blueberries, raspberries, stuff like that, tomatoes, you know, so vertical farming is a wonderful idea for out there because we can actually produce our own energy right from that site to maintain that stuff. Right. And then the water's there, it's free. So we got free water, free energy. And then the land is all we really got to worry about and cover. And the cost of doing all of that comes from growing the marijuana and selling it at, you know, $100 million a year. So the, it's good to bank on that or have that as a backup. But as I told Rob this morning, we're going to have to build out the other 90% of that 700 acres because 70 of it is for the cannabis. The rest of that has to be built out in a way that it makes at least a profit of, you know, 1.2 DSCR, right? Debt Service Covered Ratio. So whatever it's gonna cost us to build all that out, it needs to be able to produce that and 20% more, right? And so if I can show that, then whatever the cannabis thing brings to the table pushes it that much further over the edge, right? But for banking purposes and banking documents and working with investors, The cannabis has to be an icing on the cake. It can't be the cake, right? It's in an opportunity zone, which means that we can produce 90% of that opportunity zone structure. That 10% cannabis part cannot be directly related to the opportunity zone fund, but what it can be is an asset held outside of it, right? So we have a holding company that has two parts of a holding company. There's the part that holds 90% of the assets, and then there's the part that holds 10% of the assets outside of the opportunity zone fund. So there there's a lot of work to be done there and researching that and discovering whether or not we can do that. But, you know, talking to our GPT about it, getting the lawyers to validate and confirm it, it'll get done faster. Right. So let's take a look what we got going on right here. I wanted to, Katherine, I wanted to see if we could go back to the conversation we were having yesterday about the property.

So here's the long conversation and I was taking notes and I also have the whole conversation we had recorded. So, got it.

Okay.

But I didn't pull that script into this. Do you want me to pull that script in?

Yeah, if you want to do that, that'd be great. Pull the script from the conversation we had into it. And then let's, uh, let's also have, let's start while you're going to do that. Let's have a conversation with it about setting up the, uh, you know, the 10/90 split and on the 90% of the property, what are we going to do with it? Because we discussed yesterday splitting it up into 20. Let me prompt it. Let me prompt it. Let it cook and then go get the conversation ready. We want to. Have—

hold on, hold on, hold on, hold on. Let me try this again. Okay, go.

We want to have a conversation about taking this, uh, property and dividing it into, uh, 20 to 25 parcels. Uh, the parcels need to be at least 36 acres per parcel. So divide it all up into, uh, 36-acre parcels, um, and give me an idea of what the appraised value of each parcel would be based on area comps of those size, uh, so those size lots. Um, we know that as a 700-acre property, the value is set at what, uh, what 700-acre properties are going for. So by subdividing this down to 36-acre parcels for agricultural production purposes and cultivation, would that be able to increase the value of the entire property by having 35 separate— I'm sorry, 20 or 25 separate parcels that have, with most of them having, uh, artesian wells on them. So, I believe like over half of them would be, you know, have access, direct access to water, while the other parcels would have rights to that water. So, uh, go ahead and run a report on this and report back what what you feel like the value would go up to. Currently it's $2.5 million for 700 acres. What would the value increase to if we had 20 or 25 36-acre lots? Run that deal. And again, like, a human being would not appreciate you rambling like that. Let me just put that out there, right? Because if I had to listen to myself talk, I'd smack myself.

Smack myself.

I would smack—

Irish now? With that last name, you're not Irish, my friend.

Smack me, son.

So we're getting close to the 17th. That's all I know.

That is true.

But again, this is the point to why GPT is awesome. It's because I can ramble at it. I can word dump. I can verbally vomit all over it, and it doesn't get upset about it. And it actually comes back with something, you know, more logical than I said it, for damn sure. So anyway, go get— while it's cooking, why don't you go get that conversation, Miss Bell?

I'm working on it right now.

Okay, cool. Kathy, I got some news back yesterday from Daylon, and we got a, uh, an LOI finally sent over and signed, uh, for them to, uh, come back and let us know what they think, which we are excitedly open to and looking forward to. Uh, the, the part that I get, I get worried about is like, I don't get worried about a counteroffer. I get worried about if they say yes too fast, because if they say yes too fast and I feel like What happened? Like, did I mess up? Right. And so anytime in the past where I've said yes too fast, I end up with like really, really, really, uh, let's just say I end up with really close partners because I've been very generous apparently and didn't realize the value of whatever I had. I've done that with a car before. Like I sold a car, I didn't realize it, but it was a special VIN number and that VIN number, there was only like 500 of these cars. Which made the value of it 10x. But, uh, the guy— I, I sold it for $1,500. The guy's like, okay, great, you know, didn't even— I'm like, wait a minute. And then after he bought it, of course, he's like, yeah, this thing's worth $7,500. I'm like, you mother— really? You know, and so I only needed the $1,500. I didn't need, you know, I didn't need $7,500, but it would have been nice to know that the vehicle was worth that, and I could have like got it up to like 3 grand or 4 grand, you know. But Pawn Stars, if anybody's ever watched that TV show, it cracks me up. People bring in like a guitar, they had no, no idea what it's worth. Rick, the guy behind the counter, is like, let me call an expert. Expert comes in, tells them that the guitar is worth 20 grand. The first thing the dude says is, I want 20 grand. Rick's like, duh, that's what I'm going to sell it for. You want to pawn it, tell me how much you want, I'll give you 5, right? That to me is way more fair than, than waiting until you've given me what I want and then be like, haha, I gotcha. You know? So Laura, what?

Sorry, I'm, I need to pause you for a second. I, Laura, I just sent you the audio. It's not letting me transcribe it from my side. I'm hoping it'll let you transcribe it from your side. It's the second half of the conversation. The first half was the presentation.

Was it on Fathom or was it on Vlog?

No, it's in my Apple Notes and for some reason it's not transcribing right now.

Where'd you send it to me?

I texted it. It's like trying to—

it's just popped through.

Why don't we just take a look at what, what came up then? Because I want to do this LOI before we get off the call.

Okay. So I'm screening two ways, current bulk value. Are you seeing this?

We're seeing—

Tommy, are you seeing this? Did we lose him? No, he's here.

I can see it, but talk through it. Like, Because we're, we're—

found a structural issue. 25 parcels at 36 acres each is impossible on 720 acres. The math caps you at 20 full 36-acre parcels. If you want to stay 40-acre bucket under Nevada's land sale exemptions, you'd be looking at 18 full 40-acre parcels instead. So here's the clean read on the math. 25 acres or 25 parcels at 36 acres does not fit. What the current appraisal is asking is $2.5 million as is. That's $3,400 an acre. And your acre divide does not automatically value retail per acre price for smaller parcels. The legal friction point, your target of 36-acre parcels is workable in concept, but not the cleanest threshold. Nevada's subdivision sale for subdivided land is 40— is at least 40 acres in Nye County. So do we want to go back and run it at 40 acres? Water is the whole ballgame. The idea only works if water can be allocated cleanly and defensively, the appraisal.

Catherine, adjust your microphone, please. It's really dim.

No, it's fine. You're just— it's fine. She's just not reading all the time.

So, the picture— half the parcels have an artesian well and the others just have rights— can only work if access is legally documented, water is properly permanent or transferable easement, and operating agreements are recorded, and each parcel is independently marketable. Without the water premium is mostly a story, not a valuation fact. My— valuation take. I did not find direct 36-acre round mountain ag sale comps strong enough to support the precise retail appraisal today. So the honest way to run the scenario analysis: one, a current bulk appraisal of $3,400 per acre. The reasonable idea that the smaller ag parcels with real water access can sell for more acreage, 720-acre bulk, which we knew what I think the parcels are worth. Floor case, no real subdivision premium. If the market treats this mostly as a chopped-up rural ag lots and the water story is muddy, so $125,000 to $150,000 per, uh, 36-acre parcel. Total gross is $2.5 to $3 million. It's basically no real win after the cost. The base case realistic retail. So, if you create 20 legal 36-acre parcels, established recorded access, and can show a credible parcel-by-parcel water plan, $162,000 to $198,000 per parcel, total gross value of $3.24 to $3.96 million. This range, I think, is most is most defensible today. Strong case, direct water parcel commands for premium. If more than half the lots truly have direct well spring access and the other have legally protected irrigation, domestic rights, and easements, direct water access, roughly $200,000 to $225,000. Non-direct water parcel, roughly $160,000 to $185,000. Blended total, $3.6 million to $4.2 million. The simple blended example, 10 better water lots at $225,000 and 10 support lots at $175,000 means $4 million gross or about $1.5 million gross lift over today's appraisal. Stretch case, best marketing options if the water is fully cleaned, lot layer is small across, access market access Premium ag. So it's $4.5 to $4.7 million gross, if possible, $6,500 an acre for retail math. So that's about $234,000 per parcel for 20 parcels. I would not use this as a base underwriting case. My conclusion: does subdivision likely increase value? Yes, probably, but not because it's chopped smaller by itself. It increases value only if Legal saleable parcels, defensible access, a real water allocation plan, and a believable end buyer use case. What do you think the property is worth subdivided? Best case scenario, gross as it's subdivided is $3.25 million to $4.2 million. Most likely $3.8 to $4 million. This implies rough gross value lift, $750,000 to $1.5 million over the current $2.5 million appraisal. What can kill the premium? 36-acre lots. Are below the cleaner 40-acre threshold. So entitlement friction goes up. Water rights are still adjudicated. Uh, absorption, selling 20 rural ag parcels takes time, and the appraisal itself is about 12-month exposure period on the current tract, not instant retail absorption. Best version of the plan, if the goal is maximum value, minimum friction, I would not lead with 20-acre, 20 acres at 36 parcels. I would lead with 18 parcels at 40 acres for a cleaner legal regulation story or a hybrid plat with premium water parcels and larger support parcels. The Shark Verdict: yes, subdivision can create value here. No, I would not underwrite a giant jump without water title plat work. Current best estimate is $2.5 million. Are around $3.8 to $4 million gross as a well structure and 20 lot egg splits with an upside more toward $4.2 million only if the water is truly, um, partialized and marketable. The next steps, so do a build-out 20-lot subdivision concept with parcel count, parcel-by-parcel water, likely value per lot in gross versus net resale math after survey, engineering, roads, and legal. So do you want it to do that?

Yeah. Can you, can you check your microphone and see how close it is to your face?

It's literally right at my chin.

Yeah, it's fine.

I don't know. Cause I can hear Laura better than I hear you. And I'm just thinking for video purposes, it's going to be a pain in the ass on the, on the volume side anyway. We'll look at getting better microphones. Yeah, tell it to— we do want to open a conversation with it a little deeper because it does make very valid points. I know that Arizona is the 36-acre law. I didn't know that it was 40 acres in Nevada. So having 18 lots at 40 acres is fine too. And what we can do is have, you know, give it a conversation about pulling it out of adjudicated status and giving it, you know, a water district out there that would be able to sustained water to all, all 18 lots. And so, yeah, let me, let me dictate to it and give it a conversation.

Okay, go ahead.

We want to definitely divide it the cleanest way possible with 18 lots, 40 acres clean. We want to create a water district out of one of the lots that has the most wells coming from it and create, create a water district that services water to all the lots equally. As well as the ones that have the water on them by themselves. We do have plans to bring in operators such as the 70 Acres, uh, will be going over to a cannabis farm, uh, and cultivation project. They'll be having a lab and, and, uh, it'll be a build to suit. We're also going to build to suit a bison operation. I would like to use at least half of this property for bison cultivation, uh, and propagation. Having a complete calving, calving, breeding, and, and feeding operation, including a farm-to-table subsidiary company, I'll guess, to sell the meat at 3 to 5 years out. The rest of the property would be divided and sold off to other entities such as a microgreen or, or a, or a aquaculture operator, somebody that's growing microgreens, mushrooms, anything that's hydroponic, as we could set up hydroponic cultivation on the property. We're also looking at the opportunity to put in, with the fact that we've got the water there and the cleaning of the water can occur, We believe that the water is suitable enough to create a bottled water company and also to grow tropical fish or, or have a fish hatchery on, on one of the parcels. So, go ahead and put together an entire, uh, master plan, or master plan agricultural development, uh, and pad, not an NPUD. And let's see what the, what the numbers look like then based on that future value of the operation being that we would be doing this in conjunction with the cannabis operation on, on 80 acres.

Do you want to add in the gross versus net resale math after survey and sharing roads and legal?

No, I wanted to do that.

Say that again.

No.

Okay.

Because again, I want to put together the LOI to say that we want to— we have to give our, our reason of interest, right? So it looks legit, like we put forethought behind it. My phone's blowing up. What else do we have that, um, that it's out there right now? I know that the website's done. They've got that worked up really, really nice. We got to get our pictures into the drive. So I was wondering who we could have work on that. I was thinking maybe Trevor or somebody, but we'll have to figure that out. To get, I want to get the pictures, headshots, bios, and logos all organized so that they can get on the website for the Summit, Scottsdale Summit website.

So, Katya, that would actually be helpful if you would start chasing everybody down to in the, uh, the Google Drive. Uh, there's, it says bios and headshots. And, uh, we want to probably create a list that we make sure that we get everybody. And I mean, the reality is, is that most people's LinkedIn, if it's updated or whatever, we could probably create their bios for them. So we would just need updated web headshots. So if we could start moving through to get that done and give everybody like they've got 24 hours to, you know, get that to us so that we can keep on track with the timelines for everything.

Yeah, sounds perfect. I get— I travel all day tomorrow. Um, but I get back Saturday night, so tomorrow night, so I can get started on managing everything Sunday. Would that work or is that too late?

Tommy, say that again.

If I get started on this Sunday, would that be great or would that be too late?

Yeah, that's fine. Okay.

Just because I'm traveling all day tomorrow back home.

Yep. No worries. We're— all I'm looking to do is to reach out, outreach to everybody, see what picture they want for their headshot. See if we get a bio. We've got logos that I need to load up in there myself, but anyone that's interested in being a sponsor vendor needs to have logos pulled in. So we want to put together that outreach. Like if we're reaching out to somebody, we can say, you know, do you have a logo or something like that you want us to put on the website and kind of go from there? You know?

Yeah, 100%. Okay. I'll get started on that on Sunday then.

All right. Perfect. So this thing's still, still tasking. What's it doing?

Yeah, it's thinking. You gave it a lot to think about.

You rambled a lot. And it is working it all out.

I just went over the website for the summit, I think, 2 days ago. And just a couple of questions I had going over it. I know they're uploading the media and some of the videos on there as well. And then I noticed they are doing general admission refunds when someone checks in at the event. But then I know the refund policy is there is no refund. You can only transfer it 14 days before. So once someone checks in, if they just have a general ticket, they just get their money back for that? Or how does that fully work?

What's that? As far as the event—

for the event, I was just going through it. I noticed that it said once general admission checks in, they get a refund back for their ticket. But I just saw the frequently asked questions. You can't refund it just before the event. You can only transfer it 14 days before. I just want to cross-verify and just make sure That's just up to date.

Yeah. So what we're doing is the $500 acts as a seat holder, right? So we're rewarding, rewarding the attendees for showing up by giving them their $500 back when they show up. Now, if they want to cancel prior to, it's only transferable. It's not once you give us the $500, you better give it to somebody else because we're paying for your seat to be there. So once you show up, you give us the $500 back or we give you the $500 back. You're, you're basically just a general admission ticket. Older. If they wanted to upgrade, stuff like that, then we definitely are looking at, you know, reinvesting that $500. But it was a program I went to in San Diego about 3 years ago. They offered the same ticket deal, and I swear to God, everyone there did deals. It was really just a mindset thing because they knew spending the money, they'd get it back, and when they got it back, they put it— they turn around, put it right back in the next thing they wanted to do. Right. So it's a, it's a, it's a sales psychology option that we're exercising so that because at the end of the day, if they come and they don't, you know, they don't upgrade or anything like that, I still got to give my vendors the opportunity to sell to them too.

That all makes sense. Thank you very much, Tommy.

ScottsdaleSummit.com, Nika, for the website.

Say it one more time.

ScottsdaleSummit.com.

Thank you.

Okay, so it's finished. Oh, it's still thinking. Well, I can start reading through it while it's printing. So it says I'm building a real master plan screen, not just a concept pad. Parcel map logic, utility water district concept, operating mixture, and future value view.

Let's just cover the highlights. Let's just cover the highlights of it. Because reading every single thing there, you know, we can just cover it. So I would not market equal irrigation rights to all 18 lots yet. The appraisal and executive summary both say that the property water position is based on 13 unadjudicated vested claims. So what that means is that it's telling us that, you know, we want to make sure that we, you know, have the irrigation use set up for the ones that have the actual property. So looking through it, Lot 1, 40 acres, Lot 2 and 3, 80 acres. But this has given us the best master plan layout. Scroll through that. Right there on the first lot, we can do the bottle plant, the tanks. Treatment. It's telling you all the things we can do. Lots 14 through 12, lots 13 through 18. So, uh, now why, why is this structure the right one? You got 12 greenhouses, you got labs, manufactured homes, all that stuff on there. Water district— I would not start by trying to form a formal statutory irrigation district. So I love that it's giving us— and it gives us, see right there in the corner, it gives us the site, right? It gives us a source. So, um, use a master utility parcel. Okay.

Keep going through.

Water rights story is not a clean thing. Cannabis piece. Okay. Okay. Keep going. 360 acres for bison is good. We've got our 6 ag lots right there. That's good. So we've got a margin of 24% on the bison. That looks good. The bottled water has a 22% margin. 60% on utilities for water services, ag education and tourism's 45%, cannabis is holding on its own. So stabilized cash flow is $2 million a year. The cannabis operations economic plays out that that's at 22%, right? So a combined ecosystem shows that the holding company has $2 million, uh, the other one had somewhere around $2 million. The stabilized EBITDA is $4 point something million, right? So now where we're at is we've got $10 million for the non-cannabis hold— hold— holding company costs. Hold on, we went too fast. Go back up. Parcel sale proceeds. If you sold, uh, 6 serviced, uh, 40-acre parcels at $240 apiece, that only generates $1.4 million. So we need the grants. These are all the grant options that are on there like that. Net holdco capital. Leads $7.9 million. Hold on. So then the total ecosystem capital, including cannabis, is $12.7 million annually. So financial ability of all of this shows that it's producing about a 4.89% DSCR for the cash flow. So now these are things that are making sense as far as like bankable product, bankable document. Best version of this deal says 18 lots, one master utility lot, 80 acres for separate cannabis, $360 for the Bison, $240 for the other lots, bottle company, non-cannabis earnings. All that is good stuff. It, it kind of lays out what I think the other question was that, that it had before, Catherine, right? Like, what is the, what is the total potential NOI on this if we did it that way, right? Yeah. Okay, so what would you like to do next? I was asking if you remember the question from before.

Sorry, it's super loud here. It said right here, so, net resale, math, survey, engineering, roads, legal. Yeah, right.

So it was asking more about the development side of it, but I don't really like diving into what it's going to cost to build something until I know what it's going to cost to make, like what we're going to make from it if we spend that.

Right.

So that's what I'm saying. I think it answered that question based on what we've seen there with $12 million net income a year on that deal.

Okay. So what do you want to do next?

So let's go ahead and just get it ready to write an LOI. Can you just ask the basic question to cover all the components of an LOI for commercial property?

Hold on, I can barely hear you, so I'm going to let you talk. Go ahead.

Run a— give me a list of all the things that we need for a properly professional, properly written and professional LOI for this type of property. Show us what all the components are that we need to cover in an LOI. All right, I can read it out.

So it says, I'm turning this into a deal-specific LOI checklist, not a generic template. So it covers land split, water rights, cannabis carve-out, diligence, and assignment structure. Absolutely. For this property, a professional LOI needs to be— needs to do more than state price and closing. It needs to lock down The land split, water rights structure, cannabis carve-out, diligent rights and assignment development structure. So you do not get trapped after signing. The core LOI sections you need. Katherine, you'll just scroll down.

Yeah, we got to, we got to teach it what we want it to do before we actually tell it to do it. This is why I tell it to go and get, you know, get me a nice outline of what all the components of an LOI are, because if I want it to add anything to it, now's the time. I don't want it to write the actual LOI until I know that it knows all the components of an LOI.

Well, that's what it— yeah, I mean, I think that's what it's listing out.

So, right, that's why, and that's why I told it to, to produce this right now. And so now if there's nothing else I want to add to it, now I can say use all the information from the, the deal that we have above to write the LOI below. And we want to do that. I've got the guy's name here. We need to write this LOI where it says number go. Uh, Canwell Group LLC.

Do you want to dictate to it right now?

Yeah, go ahead.

Okay, go ahead.

Now that we know all the components to the professional LOI, use all the information above about the property to write an LOI to Canwell Group LLC. And Canwell Group LLC is the current entity holding the contract with the seller. So we want to provide this LOI directly to Canwell in care of Rob Rosinowski, R-O-S-I-N-O-S-K-I. Rob is the principal of the Canwell Group and is currently the one that signed the contract and looking for the $2.5 million to purchase the entire property. We have intentions of doing all the things we mentioned above and raising capital, uh, $20 million to actually do all of the, uh, suggested above and be able to acquire the property. Rob and his team will be receiving off of this 80 acres of this for the cannabis operation, but the holding company itself will still be, uh, part of Rob, but the cannabis company will be a subsidiary off of Rob. and separate from what we're going to raise, uh, $20 million for on the opportunity zone side. So, uh, incorporate into the LOI what we're doing with the other 90% of the land, how we're going to be creating an opportunity zone fund for that. And our primary fund, uh, round A is going to be $20 million. So now it's going to pull this all together. Let's roll through it and just hit the highlighted points. The properties, uh, located in Nye County. So we'll leave that buyer entity name. I think that's us. So we want to put Titan Impact Group on that. It describes the property very well. And transaction structure, master plan, agricultural development. Okay. Yep. Looks good. We can also tie into this some workforce housing as well, because it's going to need that. Go ahead and go through it. Yeah. Okay. Yeah, right there. What time period is it giving us?

60 days.

Okay, we'll change it to 90.

Well, let me change it in here.

What I, I wanna, I wanna re-dictate to it the things we need to do. And so part of the LOI— somebody asked yesterday, what do we do with an LOI? Well, the reason to an LOI is that the LOI also lays out what we need them to provide us, right? Because what we need them to provide us is like the water samples. They ran water tests. We need to know, we need to know what the water's got in it. There's that.

It's like junk.

What's that?

Case documents, title survey, closing confidentiality, exclusivity, assignment costs, expensive brokerage operations. You got to change the expiration date.

Well, we want them to execute the LOI by March 20th.

Okay.

Got it. Right.

Okay. So now it says I draft the LOI in the canvas.

Yeah. Let me add to it real quick.

Okay. Go ahead.

There's only a couple of spots that we need to edit. The buyer in this case is going to be Titan 23 LLC. Part of the Titan Impact Group conglomeration. So we want to add this to the LOI. We also want to add to the LOI that we need 90 days, not 60 days. We will also increase the asking price if necessary to get through due diligence to satisfy the current owner on any concerns of value depreciation based on taking our, our time to do the entitlements and get, get the entitlement work started. We also are asking that the LOI include the— crap, I can't remember what the other thing was—

the water samples.

Yeah, it already said— yeah, make sure it says something about the water samples and that we need all of the documentation for water, uh, out there. But, um, there was something else that needed to go in there. I don't know, go ahead and send that. And so part of what we can do with this as well is like we we can set up to create owner financing opportunities. Like if we have people that want to, want to become greens farmers, like if they're going to buy all the equipment and pay for all that, we can owner finance them the land to do it from. Creating that note creates value. The Bison Ranch will actually carry a note on the dirt. They're not going to buy the property. They're going to lease all that land. So we could probably lease the land to the cannabis operation as well. I can't remember what else I was going to say. It didn't change the buyer on that one line right there. So you can go back and fix it.

So purchaser Titan 23 LLC, part of Titan Impact Group.

Did it say 60 or 90 days? Are you checking that? Yeah, I'm looking for that feasibility. It's up higher. Cannabis. You went past it already.

It says 90 days.

Right. Okay.

Closing occur before 30 days after exportation feasibility.

Specifically, the no shopping is important too. They can't, they can't shop with other buyers on this for 90 days if they sign it. Right there it says buyer entity name needs to be Titan. Titan 23. Okay, so go to edit, then put Katherine Bell in the name, and then the title, you know. Yeah, and that's it. You got to just package that in on a, uh, on a letterhead, Titan letterhead, and send it.

Okay, cool. So it's 11:03.

Yes. So let's just take us out in a prayer real quick. Heavenly Father, we thank everyone for the blessing in this day and the blessing in this life, and we ask that you continue to bless and guide us to do your will. And then it's through your son's name we pray this. Amen. Everyone go have a great day. We'll see everybody on Monday. We'll be back on regular, uh, the regular, uh, schedule of Arizona because being in Colorado has really thrown everybody off. We're gonna have our We're going to have our Expo meeting on Tuesday and discuss like ramping that up as well. So I pray everyone has a great day and we'll talk soon.

Have fun.

Bye, Tommy. Travel safe while you're getting home, honey. Yeah.

Thank you so much. Thank you. You guys as well. Have a great rest of your event too.

Thank you. Thank you.

Bye everyone. Thank you.

Bye.