GMT20260506-154942_Recording_gallery_2080x1170.mp4

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

Favorite nerdy conversations.

I'm going to bring it over here. See if anyone can hear me. Can you hear me?

We can hear you.

Okay, cool. No, I just seen some new people popping in, so I wanted to— away from her popularity contest and touch base with everyone in here and let everyone know we'll be pulling Katherine back on the show here in about 30 minutes. So we've got some properties to look at today. We've got projects going on. Katia and Sir— Saray, oh, hey, you guys are going to get together and run that due diligence folder.

We're going to do the due diligence later today around 5 PM. So I'll schedule that if you want to join in. Yep. And then to introduce you guys, I have Lucas joining the call from Denmark. So he's a friend of ours. So Tommy, Lucas, Laura, Lucas Saray, and Lucas Blake.

Very nice to meet you guys. I'm excited to be here.

Pleasure to meet you as well. And coming from Denmark, what are you into real estate investing over in Denmark?

So I'm a, I'm a student out here, so I'm half Danish, but maybe you can tell from my accent, I've lived in California my whole life. So that's how I, I know Katja. Real estate out here is a bit tough. I know Copenhagen is really growing and really expensive. The rest of Denmark, not as much. And I don't know too much about real estate just yet. So I'm here to learn from the pros and Just see what it's all about.

Very cool. What is it? What is, uh, what does it look like as far as real estate over there? Do, do your laws and structure of real estate mimic what we have here in the United States at all?

So from what I know, it's quite a, quite a bit different. So there's a lot of, a lot of laws about rental properties and about even Airbnbs. I know it's extremely hard. So my family actually has what's called a summer house out here. And so those properties specifically are only to be used as vacation properties and you're not allowed to rent them out. So there's a, it's, there's a lot of like very strict rules pertaining to real estate out here. But I think for regular residential properties, there's, it's a little bit more lenient than that, but there's still a lot of hoops you have to jump through.

So very interesting. No, I'm always intrigued with how, how different real estate areas across the country. Or across the world, because like, for example, when I found out in Mexico you can't own land in Mexico, I was like, I'll never go to Mexico. Like that was immediate. Nope. Ain't doing that. Like if I can't own the dirt, I'm not interested. But you can get long-term, like long-term leases, 99-year leases and stuff, but you're gonna build a house. So basically the state's gonna own eventually. And if you ever screw up, they instantly own it. Like there's no, In Mexico, there's no messing around. If you, if you own a piece of property, if you lease a piece of property and build something on it and you mess up in Mexico, they come and get it. They don't, they don't mess around.

That's interesting. And Europe, it's like similar with the strictness, but not exactly. I just know there's nothing for the whole of Europe like there is in the US, like something like Zillow. And that's just basically because every country has differences in the laws and the rules about owning and investing in property. So it's, every country has like slightly different metrics and things like that. I bet if you go to south, you go to Italy, things like that, the market's completely different and what you're allowed to do with properties are completely different. So it is really cool. Maybe I can be the European net hunter out here for you guys.

No, for sure. If you can find us property to buy and make it make sense, we're all about it. So, so you're at school here in California. You say you've lived your whole life in California, but so do you have dual citizenship then?

So I'm in school here in Denmark. So I have dual citizenship. That's the reason I'm here. Basically because the school for me is free and I actually get paid to go to school here for university. No-brainer. And it's hard to pass that opportunity, but I did live my whole life in California beforehand.

Nice. Well, great to have you in here. And so I appreciate you coming in and sharing all that wonderful information with us and keep coming around. We'll keep learning more about Denmark and all the fun stuff over there. Yeah. So do, what do we have going this morning? I know that I had a, had a couple of projects that we were gonna pull forward if we didn't have anything. So I'm gonna make sure that Everybody got a chance. Katya, what do you got cooking?

I have a couple of more warehouses that I can show throughout the podcast. We still have progress going on the Palisades property. Just a bad week because I have finals and final presentations and stuff like that, which is why it's going a little bit slower than I want. But I can show you the warehouses if you want.

Okay, we'll hold those. Does Blake have any updates on the property he's got cooking? I know he was looking at a car wash or something like that.

I have a car wash in Phoenix, another car wash in Corona, California. And then I was able to find a multifamily property that the numbers seem to be decent on. I just want to run over as well.

All right. I'm glad you— I'll let you pick two and dance with that. And then Sarray and Laura, do you guys have anything at all or are you good with Blake jumping on real quick?

I'm good with Blake going. I don't have anything at the moment. Dealing with other things.

You're on mute, Ruth.

I'm good with Blake going. I have something I'm looking at, but I'm putting it through my filters before I bring it on and we'll see if it's even worth you looking at.

Perfect. It's just real easy. You can always say, ask it or tell it that you need to match the million dollars or the one acre. And, and if it meets that criteria, then the potential to make at least 40% ROI. Okay.

So if you want to know what I did was I put it through Land Shark and got a positive, but then I put it through the board that we created and I got a negative. So I just want to look at it a little bit more before I bring it on.

Nice. No worries. And again, your board is gonna poke holes in it, but then try to feed back to you best case scenario and trying to make it work.

Right. So I hope this was okay. I added 2 people to my board, which I added you so that I would have your voice in there. And then I also added Barbara Corcoran because I wanted— she's really good with gut instinct and strategy. So I added those 2 to my board and I really like using that filter. I think it's really cool. And it does show me a lot of things that I wouldn't know being so new.

Did you update your instructions that she sheet and all that stuff to do it. Perfect. Good, good.

And I added it to the memory, so now it's filtering through that a little bit more too.

So that's great. Awesome. So again, when you run a deal in Deal Hunter, you should be able to then take it and put it into your Real Estate Virtual board and let it reanalyze your deals. And it'll— where Deal Hunter's like, this looks good, your board's gonna be like, but we know you and we know what you're capable of. Right. That's what it, that's what it's good for. Sure. Awesome. All right. And then welcome on, Tina. I'm going to pull some property up with Blake here real quick, and then we'll jump over, find out what's happening and boom. So Blake, which one you want to do? You want to do the car washes or you want to do the multifamily?

I'm going to do the multifamily and then the car wash. So I'm going to pull up the car wash first.

All the resources that come from there to help families, to help the kids, everything.

So go ahead and share your screen when you're ready.

With AI, I literally got the child adopted. We've already gotten 9 kids adopted. And so literally changed the kid's life forever. So I adopted—

All right, sorry, I was prepping both of them. So this is the car wash that we were looking at. They were asking, it is a self-serve one that's 24 hours in Phoenix, Arizona. They're asking $3.7 million for it. I'll go through some of the photos real quick. So they have a drive-through section, but then they have 5 other bays. They also have a self-serve pet wash. So you were installing the septic tank when we ran over it. And then I ran it through Deal Hunter.

So you said run this deal and it shows this is a clean passive triple net income deal, right? Um, correct. Because the business is going to stay running, right? We're not, we're not taking over the car wash. It's going to stay operational.

I'm so sorry to interrupt. Lucas has never used Land Shark before, so I was wondering if, Blake, could you scroll up for 2 seconds just so I can show him? So all you have to do is find the link to the property that you find, put it in there, and you just have to type "run this deal" and it'll give you all this information.

It's like a very simplistic way of getting through some due diligence, doing some very important research. On property and getting, getting a quick, a quick set of eyeballs on it. In 33 seconds, this program has been able to look at all this stuff about this property and then return back a fair amount of information so that we can make an intelligent decision. So let's run through the, just quickly run through what it does provide us with. So it understands and validates the information provided in that document. And so Blake, if you want to show them the document we used to run this deal, it's just the offering memo from the, from the ad that he found on, on LoopNet, I'm assuming. So this shows right here that like they're leasing the business, they're leasing the land to the business, right? So this is a lease to that particular business. So every year they get an annual rent of approximately $2 million, or I'm sorry, $200,000 to $300,000 net. Okay. And so the terms of the lease are right there. And so you'd want to make sure that this is also going to be something that extends out and goes for a while. Right. But basically it's showing this is why the value is what it is, but to sit there and analyze this is going to take time. It's way easier to go dump it into Deal Hunter and say, run this deal and then let it, let it come back with some details. We'll show you. Okay.

That's awesome. Is this, is that tool available on ChatGPT if you don't have the Pro version?

It is, but it's suggestible to use the Pro version only because of the fact that the Pro version, $20 a month, it increases the intelligence level of it and it doesn't restrict you. Like when you start deep diving into something, it doesn't restrict you on how much conversation you can have with it.

I have a, I have Claude Pro and Perplexity Pro. I don't yet have ChatGPT, but that might be something that I consider then.

Oh, it does a, it does a miraculous job of providing Providing the details that are underlying that you would take 3 days to 3 weeks to discover. So that's the importance of paying for the Pro is that it has the, it has the deep dive capabilities that the free version doesn't.

And then that PDF from LoopNet that we saw there, that's just like readily available on LoopNet's website and on most real estate websites.

Correct. And again, this is what it'll do is we can actually deal source. Katya is a Pro at deal sourcing where she prompts it to go out and find the deals.

Right. That's awesome.

So you don't even have to, you don't even even have to really understand how to look for property. You can just type in, I like dirty dirt, and then boom, you'll get, you'll get, you'll get some amazing— who wowed me?

Nobody.

Laura wowed you. She deserved to say that.

Wow. Nobody has to wear the sash jar.

I was just sash jarring for a tattoo.

So that seems like a powerful tool.

That's awesome. It is pretty amazing that it returns back what we need without spending a lot of time looking at it. So What it brings back, it tells us a quick idea of what it looks like. So, and it gives us a go/no-go. Is it a buyback? Is it fit— is it a fit for what we do? And then it also tells us what it's not ideal for, like high leverage, high cash-on-cash, short-term value-add, like none of that stuff's available. So the target is between 3.4 and 3.5. They're asking 3.7, the maximum price that it would allow us to go in at is like 3.6. So the walk price where we're not interested in having that conversation is gonna be at the full asking unless they can do some creative financing with us and the buyer's willing to do some tax-driven acquisition with it. So meaning like we can find somebody that needs a giant tax write-off and sell it to them.

So it gives you some opportunities for the strategy that you use going into it, basically.

Correct. And it helps you strategize a plan on going in to do the takeover.

Right. That's awesome.

Nice. And if you keep scrolling, you'll see that it puts together a finance stress test. Like it does the computations and calculations for us to show like what the actual availability is. So, cuz even if we went to buy this, we'd have to buy it with debt. Say for example, we gotta go to the bank to get the loan. The bank is only gonna give us a certain percentage of that property. And so right here you can see that the highest amount that they give us, which is 25%, and at a ridiculously low rate of 7%, we are only getting a DSCR score of approximately 1.06. That is horrible for a commercial property because we want an average of 1.25 minimum, right? And we can't get the 1.25 unless we do a 60% LTV, which means that we have to come up with 40% of the money. So if we're at 3.75, let's just say at 3.75, that's going to be almost like another $1.5 million we got to come up with on our own to do the deal. Right. So this really breaks this deal a little bit in the fact that because of the DSCR score, if we take the two rents that we would have to pay, if we take the two loan payments we'd have to pay, and condition that against what we're getting on our lease, we're actually paying for our tenant to live there.

Okay. I understand that.

Makes sense. Right. So it's not worth doing that. And again, unless the owner's willing to do some owner financing deal. So then at that point it makes sense, but they're typically not interested. And all we can really do is just make it— keep going, keep going all the way through that for me, if you don't mind, Blake, we'll finish it out. So it's showing here like our return rates. On exit. So an IRR profile, if you will, is between 8% and 5%. Honestly, there's nothing out there in real estate right now under two digits that's worth doing. So if your IRR, which is your internal rate of return, is not greater than 10%, it's not worth doing, right? Because there's so much out there right now that's available to do that. This is literally more of a property set up for a tax write-off than it is for for it to be a cash flowing asset. It's not structured as a cash flowing asset.

Okay. Awesome.

Yeah. So going through, it shows like the strengths have the long-term lease, absolute triple net, annual rental growth at 2%. That's way too low. Typically it needs to be more like 3.5% or equivalent to inflation. Strong micro location. Eh, like I like Chandler Boulevard and 32nd Street, but the area's changing significantly. So. And right there it says the affluent trade area, the people don't want to wash their own cars. So those 4 bays are actually a liability, not an asset. So the tenant only started in 2021. They've not made it through their 2-year. Technically they're through their 2-year, but they're not, they're not probably making profit yet. So it says here that the current rent is probably too high, which is also an issue. Car wash equipment is dependent on success. So if their equipment fails now, what do you do? Right. Then you have environmental issues, like they need to go out and test the area for the detergents and stuff going down in the ground. And so if they have a bad outdated septic system, you're going to be replacing an entire water treatment facility. So, and then personal guarantees need verification. So the OM states that a personal guarantee with $9.5 million net worth is backing this up. Who is that? What is that? Right. And so it's pointing out things that we would not normally be able to pick out without a little bit of prior knowledge. And that's what I like about Deal Hunter. You don't have to have the prior knowledge to run it and figure it out to see if it's going to work out. So contract prices here, it's given us some options to negotiate at. I would actually offer $2.9 million and make them choke because at that point I would let them know right off the bat that their numbers don't match what buyers need. So in order for this to work, we need at least a 10% IRR. We need at least a 2.1% DSCR. And in order to get those, we have to have our price way closer to like 2.9%, not 3.7%. So scroll all the way down there, Blake. Let's take a look at it. It says funding strategies: conservative bank debt, seller carry to improve the DSCR. Keep going. 1031 tax motivated, all cash or low lever— lower leverage buyer, right? So these are the things that it's suggesting we can do. There's your due diligence checklist, and you can actually tell it to go do the due diligence checklist, create the checklist and the working on it. Keep going down. There's a lot to do there as far as inspections and everything else, getting your environmental, your title and zoning done. So objections, these are the lender investor objections. So when we face objections from the bank or from a lender on this, then For an investor, these are the things that's suggesting that we come back with. So tenants too new, special use property, DSCR is tight, environmental exposure, blah, blah, blah. So it says here, go if and no-go if, right? So keep going down. And then what did you, what did you, it says here that you're looking for prices on additional car washes. What is your end result on this one? Like, let's see what it come up with.

This one just pulled up all the different car washes nearby and then different types of them. So this is the one right here, self-serve, and then A lot of these, it didn't have the public data, so it wasn't able to pull them up.

Right.

So there was a couple—

Freak and Cobblestone and all that. And on that one, if it doesn't have a— if they're not operating under a membership deal, then, then it doesn't make sense. Like if they're just doing drive up and coin, that's outdated, right?

They do have a membership deal. It's $25 a month.

So I looked into that.

It's still good. Go ahead. Sorry. Definitely fun. So the, the numbers there are showing you like your market. We talked about, I think everyone had homework to go figure out how businesses and real estate are valued based on, remember what they were? Income, market, and asset, right? Do they have, wait, go back down. Did they have a membership deal right there?

They did. Yes. I inputted the website and this is, they have $25 a month, but then they also have individual washes that you can do.

Right. No, that's cool.

I thought I'll bring some other deals than just raw land. So looking at different assets, but that's good to know.

Okay. Go ahead and go all the way down there. Because again, we're buying, we're buying the building and the property. We're not buying the business on this one. So we would need to understand what it looks like to value the business. Because if they default on the lease, what is our protection? Right. And so with this, what we would end up doing is also getting a lease and targeting it through. So we'll pull the lease through here. And review it. And that would be the way we'd go through that as well. Go ahead and go down to the bottom. Let me give it a prompt and then we'll jump over and look at your other deal. All right.

This is Blake.

Can you restart it? Because Katherine doesn't know what we're doing yet. We're trying to run a deal, but I'm trying to prompt it and I can't do that with all the hootin' and holler and Canadian. Ready? Somebody needs to be in the hot seat today. All right. Ready? Go. We want to come back with an offer of $2.9 million. Do the math on that for us so that we understand what the economics of it are. Now that we want to offer $2.9 million, show us what our DSCR scores would look like, show us what our IRR would look like, and show us how we would be able to improve the economics based on that price. And so the computations of this would take at least 3 or 4 hours. It would take me 5 or 6 hours to get a hold of CPA to do it. And so at the end of the day, it literally is probably at least 3 days before I find the answers to this on any other, on any other thing. But because Deal Hunter by Land Shark is able to figure out computation so fast and do the things that it does, that it'll have the answers for us and, and really fast. So 3 minutes or less is usually what it does. So what is the other one you got? Like, let's see what that one's—

this one was in Glendale, Arizona. It was a 15-unit multifamily apartment. So looked at quite a few, but it currently has tenants.

They want $156,000 per unit. So does it currently have a rent roll and tenants in it?

Yes, it does. Let me look back at it. Let me see. It should say in Deal Hunter. I'm trying to remember off the top of my head.

So this is, I told it to, oh, this is your deal. Okay.

Go ahead. 15-unit. They were asking for $2.35 million for it. Opportunity Zone.

It says it was renovated in 2024, which I call BS on. It was built in 1965. So do the math on that. That'll tell you a lot. The average unit size is about 672 square feet, which means they're getting less than $1,000 a month, probably less than $1,000.

But pretty close.

It says that it's the assumed rent is $1,400, but I don't know why it's assumed if you gave it the OM. So go ahead and keep rolling through that. Let's see what it says. Cap rate becomes 7% and the DSCR is 1.3% with a, I think it was a 60% LTV.

I believe so.

And so it shows your sensitivity test right here with your rent assumptions and all that. So price check for a multi, uh, Class C multifamily. You can see that they're trading about $160 a unit. So the Class C cap rate, usually about 6.5 to 7. The listing shows at $156 per unit. So it doesn't say it's crazy on the surface, but at a base NOI of $169, The valuation method shows that a cap rate of 6.5 has the value at 2.6, but a 7 cap has it at 2.4. So a current asking at 2.3 says there is defensible, but if the real NOI is below $152, then they need to readjust the price again. So keep going. Your offer strategy is going to be at 2.1 and then max price before verified docs, 2.3. And maybe this is what that guy was talking about the other day, Katia, because I don't do multifamily and I I think that guy we were talking to at that office space over there, it was, that's the world he lives in. It's because it says right here that you make your offer and then they, then they give you docs to support it. Right. And so that may be the way they want to play that game. Doesn't sound like a whole lot of fun to me, but anyway.

So they want you to make an offer and then they present you all the documents?

To argue the price back up. So these are, these are tactics that maybe multifamily uses. I don't know. I know in land we don't do any of that because we don't care about your income when we're dealing with Or keep going down. So funding paths, again, conventional bank loan, seller carry, keep going. Private equity, JV partner, JV partner could be somebody with a 1031 that needs to move over into something like this, which is pretty decent. Due diligence checklist looks good. Keep going. And then here's your goes and no-goes. So there and there. And so when getting all the way through this, we're going to ask the seller to do more, more than a 10% carryback, we're going to ask for a Like a 40% carryback. But the other thing I would do too is keep in mind, if they don't have tenants here, I'd tear the damn thing down and build multi— build a bigger multifamily than what's there right now. That just makes more sense to me. I'd max out the units per acre. So go ahead and check your other deal real quick. And so 43 seconds it thought on it and came back and said at a 2.9 offer, here's what the economics look like. So the asking. Right. Going through it made the cap rate at 6.75%. By going to 2.9%, it makes it an 8.7%. We're dropping the price $837,000. And so we're able to get a decent basis points increase. So keep going down. It'll show what we got here. Now we've got DSCR scores that make sense. We can go up to, it looks like a 75% LTV still. Okay. And get ourselves pretty good and situated, right? Because our loan amount will be like $2.1 million. We'll still need to come up with another $800,000 to cover that. And that's where we asked the seller to carry that, right? So like they, here's the thing, people sell property, they go for the most that they can possibly get. They don't try to go less. So if we don't try to go with the best that we can possibly get, it don't make sense. Right. And so on this deal, He's got to take a haircut and it's got to make sense. So if they want to sell it, that's the way they do it right there. And we do a 2-year buyout with them on the owner carry part just to get through the note. And that's it. If they don't like it, too bad, sell it to somebody else. Good luck and move on. So go ahead and hit the dictate button. Put together, put together an impromptu LOI using all the components of a letter of intent necessary for it to be considered professional. And we want to use the— use the information that we currently have to do that. We want to offer $2.9 million. We want the seller to carry 30%, and we want to— we're going to be using a debt structure to get it taken care of through our commercial banker. We will need to have all of the pertinent information to verify and validate the current information as it's been provided. But we are only interested in offering a $2.9 million purchase price with owner carry of 30% of that so that we can get it, get it purchased quickly. If they're okay with this opportunity, let's, let's get into a deeper conversation. And so then I would just take whatever this LOI says and send it over to them and do what they say.

That sounds good.

The more offers you throw at people, the faster you're going to get to a deal. Right. You gotta throw, you gotta throw 100 offers to catch 10. Oh, Trevor Hicks showed up. Good morning, my brother. Morning. Good morning. There he is. We've gotta jump on a call later. We've gotta, Trevor put up some EMD for us and we've got, we've got a hiccup in the contract where we had a contract on a property and the tenants were evicted in the middle of the contract. Oh boy. So now we've got to probably go to arbitration because they're saying, well, they were your, they were your partners that got evicted. No, they aren't. We signed a contract under Titan Impact Group. We didn't sign a contract under the evicted partners. We were trying to help them get the loan, but we had no idea that they were going to get evicted in the process. And so now we've got this huge snafu because we've got equipment in the building that we currently own. The people that were there, we gave them The tenants that were there got a loan to pay the rent, but apparently they didn't pay the rent with the loan. And so that's how they ended up getting evicted. And so now we've got to play this cat and mouse game to try and work all this out on this contract. And so we'll keep everybody abreast because it's a rare opportunity to have to negotiate through a contract situation. We'd still like to buy the building. We'd even still pay the same price, but we need, we need to adjust the terms. So that it makes sense for our lender, because no one's going to lend money on a property that doesn't have a tenant in it. So unless we can make it make sense, I wanted to get— want to get with you later on, Trevor, on that. Sounds good. Here we round back. Cool. No worries. All right. Katia, do you have anything you're pulling up right now or what do you got?

Do you want to see the second warehouse that I could potentially walk this week?

Let's go look at it real quick. Let's see what the opportunities are. Okay. And so what this is, Katia is trying to develop a, expand her current investor club that she has from school. And this is, we're looking for a clubhouse to do this from. So it says here is the, this is a 17-second thought on a property called 3 Whatney. I really want to make fun of that name. I don't know why. Where are you having a party tonight? Over at Whatney?

I know it's a funny name.

You got a networking event? Whatney?

Okay. If it's not going to work out because of the name, I'll move on to the next one.

He's saying he likes the name.

I do, because I can pick on it all day. Freestanding industrial flex building.

Okay.

Yes.

And so, and it has cool stuff.

It has cool stuff. Yes. It's empty. That's one of the bonuses right there, right? It's an empty building at this point. That's nice. Looks like it has some industrial space in the back, right?

This is giving me Klaus Scottsdale vibes. Is that correct?

Good night. It's a good amount of it for sure.

With these lights and stuff.

Yep. And the base. Yes.

Right. And then it's Irvine. Oh, sorry.

Go ahead. Sorry. Is this the property that Manny Koshman owned beforehand or is he still owning it? Because he's another big real estate investor. It looks like his old property or whatnot.

Oh no. I don't know. I'm not sure. Does it say up there who owned it?

No, I just, I used to follow the guy Manny Koshman a lot. He's just another big investor and car collector, which is mostly where I found him from. And I believe this is his old property. So that's just interesting. Just thought I'd point that out.

It's worth it. It's worth the dive into, right?

So it's in by Irvine Spectrum and Great Park. So it's that same area that we were talking about.

So is it considered the Irvine MSA or is it considered the Podunk MSA?

That's a good question to ask, but it was advertised as in Irvine, right?

Okay.

Instead of Lake Forest, which is the one where the other warehouse was.

Got it.

Okay, let's see. $9.5 million purchase price, 29,000 square feet. Price per square foot is $325,000. 1.5 acres, 24-foot ceilings, 83 parking stalls. And a lot of parking stalls are good for this concept in case there's events and stuff like that. And then the second floor is— first floor is $19,000, second floor is $10,000. And here are your numbers, Tommy. You know the numbers better than me.

And again, like this has given us the idea that we'd be able to get a loan for 65 to 70%, which is a, is a $6 million loan, which typically, and it's given it to us at a like 7% vibe. So we'd need to still come up with at least $2.5 to $3 million, $3.5 million to cover the other side of that. And we could do that with equity. We have revenue targeting that we are going to have to look at. So with 83 members at $600, it like gives you what your illustrative monthly would need to be there. I like that as far as like, this is right. So the price per square foot is lower. It's a bigger building, better parking, more warehouse functionality, et cetera. So it says, it says that LoopNet labels it 100% leased flex building, even though it's marketed as an investment owner/user. So it's like, well, which is it? Right. So how much of the building do we control? How much do we actually use? Stuff like that. But metric-wise, like what we'd be able to lease it for and stuff, it was pretty good. Is that all you got on that one?

So is this worth— for now? Yes. Do you want to dictate anything? Is this worth a phone call to one of these guys?

Definitely worth a phone call. See if you can walk it. But again, I think what we would want to do is limit the information as to how much we're going to— like exactly what are we, what we're going to be doing there, et cetera. So if you don't mind, I would like to look at— go back up a little bit more. I'd like to look at the first floor office space. And it's right here, right? That floor plan right there. Go down a little bit where it says floor plan. Like I want to see that as possible because that's where your warehouse is in the back there.

And where it said revenue target thinking, it didn't mention anything about the luxury car storage. So that would be an add-on potentially in that warehouse.

And again, and I would actually expand the warehouse. It says that it could go to 10,000 feet. See the red area where it says it's expandable like that? That's what I'm realizing is that that's where I would want to do the expansion. I'd actually want to expand all the way through the first floor and eliminate, like, just only have a couple offices.

Well, it's nice because this is open space. So theoretically we could create this whole section open.

Right, exactly. So getting all that opened up for more vehicles in there for sure. And being able to have like at least 15,000 square foot to park cars would be great. So, and then the part that is second floor, you can see is right over that area right there. So it'd be lower ceilings or whatever, but we could totally deck out that upper floor to have more offices and be all window offices and like everybody gets an executive suite. We'd call it executive suites, right?

Okay, cool. So I'll call them today and I'll get a walkthrough scheduled. But I love how many windows it has. You can even see right here it has this awesome balcony. It looks— well, based on the pictures, it looks a lot better than the last warehouse we were at.

Maybe newer as well. I think it's— I don't think it's 40 years old. The building looks to be about 25, maybe.

Lucas, do you know what this building was used for?

I just did like a little bit of digging. I think it's a different one that just looks extremely very similar. So I'm not sure about this one. If it's the same one that I was thinking about, which it doesn't look like it is, then it was, it was just, it was just normally rented out except for, I believe, the first floor, which was used as the guy's own office or part of the first floor at least.

Okay. And so between this being like a Club Scottsdale and even like a workspace, a coworking space, like all the way across.

So, and I was talking to several entrepreneurs in the area and a lot of them Since COVID shut down a lot of these huge apartment business buildings, everybody's working from home and that's great. But at the same time, they want to go somewhere like maybe once or twice a week. Right.

And they don't— and again, they're not wanting to have a full-time office that they have to maintain.

Yes.

They would much rather have a coworking space, co-office space that they can just come and go.

Right.

So Tina's asking, what's the ROI on this investment? Are you talking about this warehouse that we're looking at, Tina?

Right. What's the expected And I ask this too, because this is when I start looking at my property or any property, right? I want to know where's the income going to come from based off of what's the invested amount of money into ChatGPT for just a second.

So just inside of what we've been talking about with Katya. So you can see the revenue on this is $131,000 a month. The mortgage was going to be around $50,000, but we also still need to pay the equity waterfall to the investor. So we don't, we don't know right now. It's a whole lot of assumptions. Why Katia is doing all this research, but the numbers are still looking pretty good so far.

Right. Because if we have a gross revenue of $130,000 and just say half of that goes to the mortgage, no, through expenses.

Right.

You're still at $70,000 a month left over, $60,000 a month left over, and your monthly mortgage is $50,000. You still have $10,000 a month surplus, which is $120,000 a year.

And to Katia's point, they haven't even added in the actual luxury car storage fees.

And we could end up with, like, we could target 2 or 3 rental companies or 2 or 3 luxury exotic car dealers like Lapham. And you find somebody like Lappin who's willing to pay $50 grand a month to be there. That's the point.

So Tina, we're still—

and you guys are seeing that you're able to get that revenue from coworking spaces?

We're thinking we're in the building doing it right now.

Okay.

And it's not just this building, but multiple buildings, right? We've got multiple locations as well at Utah, Texas, and Vegas that are doing this currently as well. So.

Philadelphia.

So we, yes, we're building this out all the way across the country.

Kati has already got about 80 people in her network, right?

But they're college students. I don't know if they would, they wouldn't be applicable to this.

Same rules apply though, right?

So SRA, same rules apply. If you can do this with a bunch of college students, you can do this with a bunch of investors and entrepreneurs.

Instead of going to college, we're going to car dealerships.

I can do that. I'll be at Cars and Coffee.

I was going to say you do Cars and Coffee. Oh my goodness. Oh, that's a great idea.

Great idea.

I'll be like, hey guys, do you want to come to my warehouse?

I was, I was also going to add that in the area that it's, that, that it is in, there are quite a few car dealerships. Irvine's main car dealership, like, center is right there, which has Lamborghini, Bugatti, McLaren. Then there's also, I believe, two others that are specifically for luxury cars as well, like literally a few minutes away, just in that general area. So so it's a— it seems like a good place to be.

So having a car club right there only makes sense.

This is Lucas, by the way, my friend from Denmark. I love it, Lucas!

I'm so happy you're here with us.

Again, thank you so much. This is just awesome so far, so I'm just really excited. I appreciate the opportunity.

Scratching the surface.

I'm really excited.

Absolutely.

I'm really excited that everybody's Landshark logo looks they're gonna get eaten by the land shark.

Am I wrong, or is mine the only way that's facing the other direction than everyone else?

No, yours is that way.

So that's it.

No, it's in the right direction.

It's reversed for you. Mine is the same way. If I look at my own, it's reversed, but it looks fine for us.

I see. I thought I was being targeted.

I'm sorry. No, you have your Zoom settings. Yes, just you wait.

So, Adia, let's dictate real quick with it and find out what the opportunity to do like a used car lot, executive car lot in there with me.

Okay. Ready, set, go.

We would like to see what the opportunity is to, to have an exotic car dealership inside this building. It's going to be an exclusive exotic car dealership, meaning that we're going to be basically just buying, trading, and selling. Exotic cars. We're not going to be doing a large showcase of them, but we want to have them inside the building and do by appointment only. Like the same rules apply as far as like a, a by appointment only mattress store. We're going to have by appointment only exotic car market store. So we first got to check if it's allowed to be done with the zoning. And then based on that, if we have a 10,000 square foot area that we're charging Just say we're charging $3 a square foot. That's $30,000 a month right there. So it's going to roll through that. Is today Wednesday or Thursday? I don't know why I want to feel like today is Thursday so bad.

Dancing tonight.

We are. We're going to go all the way to Goodyear.

Anybody want to go line dancing with us tonight? It's so fun. I would love to, but not next week.

I don't know how to line dance.

I'll have to virtually line dance with you, Katherine, from Iowa.

Yeah, okay, so appointment-only exotic car dealership is more plausible in Irvine than a traditional walk-in dealership, but the city appears to treat a low-intensity online vehicle sales office as a specific office type when it is truly appointment-only and does not include on-site repair, storage, or display beyond narrow limits. So is our goal to have the exotic car dealership membership, or is it to have the members?

It's another subtenant.

Okay, so we don't, we don't want the members to bring in their personal cars and pay for storage, or we do?

And again, what they're going to do is they're going to pay for a membership. Storage is free. Okay, the online, the online thing, same thing. We're not storing the vehicles, they're just parked here.

Okay, in 2026, Irvine approved— approval letter— the city approved an online vehicle sales office. Because it was office-based, appointment-only, and expressed— expressly excluded vehicle repair, storage, and broader display activity. That matters. The appointment-only part helps, but the indoor keeping, storage, display of inventory pushes the concept beyond the cleaner online vehicle sales office. So I'll need to call and see what they allow. The city specifically warns that in 5-4 general industrial properties in the Irvine spectrum, professional office use is generally limited to no more than 50% of each suite and must support a permitted activity. And they tell applicants to check the specific site with the planning counter because trip entitlements can block uses even when zoning sounds close. Could it work? Possibly, yes. Is it clean by right? Probably not something I would assume. What makes it more realistic? The building's physical specs are actually strong for this concept. Physically, it's one of the better boxes you have looked at for an appointment-only exotic inventory model. The main legal risk is if the city sees it as a vehicle sales dealership with on-site inventory storage display. My recommendation is to frame it carefully, and here is the number and email that I will reach out to.

Right, okay. Well, and again, like, this is just a tenant we can bring into the building. Most of these exotic car guys like to have their vehicles all parked inside. So let's see if it'll allow that co-working space.

Okay. Do you want me to dictate or just—

I'll dictate it. This would be one of the possible tenants that we would have in the building. They would only have about 10 to 12 cars rotating through here monthly. So the volume of traffic would be low enough. We also want to look at it being an exotic car club, an entrepreneur club with an affinity for exotic cars and expensive luxury cars. So we want to understand what the current— what is the current market price of industrial property leased in that area so we can understand the value for our members.

So Catherine, remember when you came to the man cave? So does he need— did the owner need to discuss with the zoning to have his cars parked in there?

Ready for this? It's called— it's literally called Learning How to Beg for Forgiveness Instead of Asking for Permission. Okay.

Right. This club that Catherine flew into for my financial literacy sessions, the guy has maybe 8 cars. So that's why I was asking.

Okay. You don't need permission for how you're going to use the warehouse. Okay. Good question. Say that again.

Her property has garage bay doors too. So what are we looking at here? So yes, I would separate this into market lease rates and member value rate. So it shows here that you're about, you're not over $2 a square foot on anything out there. Keep going. Go ahead and ask it to review like what it would be for, but okay, so now looking at it, let's figure out what the per square foot prices on the office space, because we would want to do a co-office unit, like the company called Spaces or the company called Workuity or the company called Incipitus. These companies have a coworking space. What is the office square foot price on this property? And so now it'll calculate out that other 10,000 square foot upstairs. I think both get an idea of what that looks like. So it's wanting to do the whole— I don't want it to do the whole space. So let's tell it that we only need the available office space, meaning that like 10,000 square foot. We only have about 10,000 square foot of usable office space that we would be leasing out. So I want to know the per square foot price of office space in the Irvine market. And then we're going to break all this down into what the building would totally be able to earn with the fact that we would have about 12,000 square foot of industrial, 10,000 square foot of office, and the rest of the space would be considered common area. Because I think based on— can you go back and look at your metrics on that flyer for the building up there at the top? And you're talking—

you're muted, Katya.

Sorry, I just had to move the bar. That like audio, video.

Okay. Go back down a little bit and we'll look at this floor plan again. And so it says like 12,000 square foot of office, 7,000 square foot of warehouse just on the first floor. And then you got the 10,000 square foot upstairs as well. So with the downstairs, we could probably definitely go bigger than that for sure. Okay. Built in 1982. Oh, it's more than almost 40 years old.

So.

Looking at it from here, you've got $30 a square foot on your, on your office base, and then $20 a square foot on your industrial. So let's see what the metrics are, what Buddy Economics has given us. So our revenue on office is anywhere between $20,000 and $25,000, $20,000, $25,000 on industrial. So do you see here, like, these are our base numbers, and so low case scenario is like $41,000 a month. And then the high case scenario, mid case and high case are below that. You're looking between $41,000 and $48,000 a month, just base, right? So that's why this only works if we get a club involved and multiple tenants. Okay. So that should answer Tina's question as to where's the ROI. There is none unless you do something fancy, right? And so owner operators, this is an owner operator space. This isn't something we buy and then try to find a tenant for because at the price that it's at, it's not worth it. So, but with Katya doing what she's wanting to do there, the club itself really does add to the value because again, we're going to be leasing out these 10 offices to people for $2,500 a month. That right there, those are little cubicles and we'll actually put 20 in there instead of 10. And we'll actually make them like $2,000 a month instead of $2,500. And That's going to bring us all the money we need to pay the, pay the mortgage. Everything else after that is gravy.

How do you anticipate— did I miss it— to taxes and insurance on this? Is that also going to be included into the tenant?

Again, like when we would be— if we were leasing it out to somebody else, that would be tied in, into the triple net. They're going to have a per square foot price and then they've got to pay the taxes, insurance, and maintenance, right? So that's a triple net we don't even factor. But if we're going to be the operators and the tenants at that point, that comes out as part of our operating expenses. So based on just trying to make sure we got the mortgage covered, we would need to lease out our co— our co-office spaces for $20 grand, $20— or I'm sorry, $2,000 a month to people that just need the office space and want to do it in a cool building. They don't need it full time. They just need it part time because But if we, if we gave them a 10 by 10 area for say $5 a month, that's $50 a square, $50 a square foot per year, right? No, $60 a square foot per year. And the going rate over there is currently $20. So that's the difference is when you get a fractional office space, you don't get to pay standard, standard going rate of market. It's usually double or triple what the going rate of market is because you're only getting the fractional space. So, and then there's signups for it and stuff like that. It operates much like a, I don't know if we had, if we only had 60 people in that and we had 20 spaces to rent, that's what it would come down to.

But I can already see so many ways to bring in high-level entrepreneurs into this space through outreach, marketing, hosting events. So I'm excited.

Yep. There's that. And so the part we're doing with this, if Katia is able to find a building that doesn't have environmental problems and jerk-offs for realtors, then what we would do is we would get a, we would draft a subsection A3 disclosure for Titan 23. We'd raise her the $10 million in capital necessary. And we would then support this through our endeavors with investors that we'd buy the building and have it set up so that we could build it out to be a big deal out there in Irvine. Thanks for coming in today, Tina. We'll see you. See you soon. All right. We've run over a little bit. Anybody got anything else to add and throw in here?

No. Tommy, did you see the email I sent you with the Chicago information for you to look over and let me know your thoughts?

I seen the thing where I had to sign up for something this morning, and that's as far as I made it. That was on the—

Okay, I'll just call you later. It's fine. Let's go.

Let me double check my messages. No, all I have from you is the Asana. Joining Asana. Is that where it's at?

I'll check. It was like a document I shared. I shared it, but let me just reshare it.

Okay.

And then I'll just call you later.

Okay. And then we—

Go ahead.

No, it's okay. Go for it. Okay. I was just going to say Lucas just sent me 2 luxury car dealerships in the Irvine area. With a similar concept, would it be smart to go to them and see their numbers and ask about their plans and outreach?

Okay.

Go there as a, as a possible person looking for a car. You can tell them that you're looking for a car. Just play the part, right? Don't go in there and be like, I wanna be your competition.

I'm super cute.

Okay.

Sounds good. They'll chuck you to the damn weeds. You'll have to come get your, your cowboy, your cowboy stepfather to come and whoop them Oh boy.

Okay. Sounds good.

We're going to make Amor come on the call next time we got dumb people. That way she understands why Tommy's so mean.

Oh boy. Oh boy.

We'll see if Amor can pray them into brilliance instead.

Probably, I guess. I'll try that.

Start dropping words of, words of Bible on them. So, but absolutely. No, we, let's see what you can come up with on that. Go check out the little things around the area on what Lucas sent you. Good job on digging that up, Lucas. And then. We're going to jump on a call at some point today, correct? With Serey O. A. and then walk through the due diligence report of the property that she's got out there. And that seller is like really far up my behind as far as like doing something. He's like, I want to do something now. Like the harder you push me, the slower I want to move.

You're welcome. I thought I would just come in really hot and bring something really intense.

The raise call's actually tomorrow, not today.

Is it tomorrow?

Well, my call with Katya is today, right? My call with Tommy is tomorrow.

And we're doing the LOI tomorrow. We're gonna do due diligence today and the LOI tomorrow for sure. So, and then I think that's the— I don't know. I don't have anything else. So if nobody has anything else, do you want to share more? Do you like, did you share it or how do you want to do it? Do you want to do it on the call tomorrow or you want to do it later today?

I'll do it on a— no, I'll do it on a call tomorrow.

Very good. So we're going to work on some more documents for Titan 23. We've got, now we've got an RV park that we got to do our documents on that. Get that done ASAP.

Is it live now? Is Titan 23 live now?

Okay.

I think you were sent the deal room to go look at for the data center.

So let me share this with all of you.

Well, some people I was going to share with, and I just, I just want to make sure.

If you go to the data center, can you show that?

Pull up the, pull it up, share it so everybody can see it.

I just want to make sure I'm doing the right thing.

And Tommy, I sent you a campground too that Daniel had somebody get in touch with him about. I don't know if you saw that. It was an email I sent you.

I might need to get a new email because like I am so—

it was a couple of days ago. I just figured you were busy, so I hadn't brought it up yet.

Always text me, and this goes for everybody, if you send me something in email, say, hey, I sent you an email.

Oh, I did. I was like, I know I did this. Am I losing my mind? Yes, I did. Yesterday at 6:16. Well, 6:16 my time.

You sent the email or the text message?

The email. Here, I'm just gonna forward it again. Well, you want me to text it to you instead? Is that better?

Send me the email, but then text me that you sent the email and that's— I'll be able to— okay, okay, okay. I'll be able to jump back in.

I'm gonna resend it to you.

Because Trevor was supposed to get an email as well and didn't get one.

So I was like, am I losing it?

I responded to Trevor and didn't get anything back. He said he didn't get anything.

It's fine. I'll just start texting you when I send this stuff.

Okay. Katherine, I'm sending you right now two documents from, from Matt Waltz about the two projects they're raising capital for.

Oh, and can you put me in touch? Like I just had another nonprofit in Arizona reach out to me. I know we were supposed to be talking to someone who, so I have a meeting set up with them to see what they need, but I can't think of the name of the nonprofit, but I'm meeting with them on Friday to just see what type of buildings and stuff they need.

We can do that. Yeah. We have a bunch of stuff available right now. Saray, I don't have anything from you.

Okay, I just sent you an email, Tommy.

No worries, I'll just resend it to you.

No problem. Oh wait, stop. Lake Area Campground, and it's—

I don't really know much about it. Daniel, it's Daniel's contact, and he asked me to send it to you, so I did as asked.

Daniel.

So sorry, Rook.

Their last name is Rook. Everybody calls him Rook, or he will always be Rook. He'll always be Rook in my mind.

Sorry guys, we were babies when we met. He did not go by the name then.

He did not go by his last name then. Let me see.

Well, I gotta run to my presentation. Very—

you got this, you got this.

In the meantime, here is the— the capital raise that we are doing for you all to check out on what it looks like.

I just— but sure, can you share the screen real quick so they can see it too?

So this is our data center. It's a $10 million raise. And I put the link so you all can check it out. So it's got all the fun pictures. Oh, got it. That's the targeted close date, which need to probably change that.

It's June 1st.

We need to change that. See all the details and everything. I need to give some project updates, but the investment presentation, everything's there. We'll be putting in some more fun things. So people can take a commitment, which just means that they're raising their hand saying, hey, I'm interested in this. And then they would say how much they want to invest. And then we'd go through the whole fund process.

Okay. Thank you.

We'd get a bunch of marketing. We're going to be doing a webinar. And when we get all that out, we'd love anybody's assistance in getting that shared. They want to be part of a very cool project.

And Tommy, when do we want to figure out the fractional?

I think what we, what we need to do is come up with the membership deal, right? And then we don't necessarily have to come up with the deals.

No, we don't.

Until we have all the numbers, right?

Yes. We don't have to come up with the deals.

What we're talking about is a, it's called Fractional. It's for non-accredited investors. Basically it becomes our own club and micro fund for anybody who wants to be a part of this. And we, I'll get to invest in it and then at a smaller rate and then creating those multiple streams of passive income and just keep doing deal after deal. It's very exciting. So we're— Amor is spearheading this for all of you and it's going to be pretty awesome. We're excited. Are you done? Do you want to say a prayer and let everybody go?

I'll pull it together with a prayer. Heavenly Father, we thank everyone for coming in today and we ask that you continue to bless and guide us so that we can go out into the world and do your will in your son's name, we pray. Pray.

Amen. Okay, thank you. We're excited you're here, Katya. Everybody, thank you for your participation. You're extraordinary. We'll see you tomorrow.

Thank you.

Bye-bye.

Thank you guys so