7 Steps That Will Help Passive Investors Sleep Better At Night

Hey, it's Mark Podolski, the land geek with your favorite niche real estate website, www.thelandgeek.com and I'm really excited for today's guest. This is he's been on the podcast before, but he's so wise and so full of knowledge. We had to do a part due with Hunter. But before we talk to Hunter, I'd be remiss I didn't properly introduce my co host. You know him, you love him. Six Sigma, the brain. Scott Todd from scotttodd.net landmodo.com and most importantly, not automating your Craigslist and your Facebook postings. PostingDomination.com TheLandgeek Scott Todd how are you?

Mark?

I'm great. How are you? I'm great. You know what, I really cut down on my caffeine and I feel a lot calmer and I think we're going to find a lot of people are actually going to complain because when they're listening to the podcast they don't need to put me on 2x right. But now they're going to have to and so I'm really slowing it down. But let's talk to our guests because we got a really meaty topic to get into. Hunter Thompson is back. If you don't remember Hunter from our previous podcast, he's a full time real estate investor and founder of Cash Flow Connections, a private equity firm based out of la. Since starting Cash Flow Connections, Hunter has helped more than 200 investors allocate capital to over 100 properties which have a combined asset value of more than $350 million. And in connection with some of these investments, he he's worked with some of the most experienced and well respected asset teams across the US and even Canada. He's also the host of the Cashflow Connections real estate podcast which helps investors learn the intricacies of commercial real estate from the comfort of their home, car or office. Hunter Thompson, welcome back.

Thanks again for having me on. It's an honor to be on.

No worries. Let's skip the pleasantries, Hunter. Let's just skip it.

All right, done.

No softball questions. What the hell is going on in this market right now that we need to really start delving deeply into due diligence and some of the frequent sort of mistakes that you see investors making in this current market?

Sure. So I think it's a really important topic because of the timing for a variety of reasons. I think the two main things that I think make it important to look at due diligence right now, number one, you have obviously an incredible run up since the recession, right. We just entered the 110th month of the economic expansion, making it the second longest economic expansion in the history of the U.S. since the Civil War. And I think that's just how far the data goes back. So people have every right to be interested in when the next correction is going to be and how significant it's going to be. Something else, though, is that you compound that with the fact that the Jobs act, which happened in 2012, allowed for a complete new level of investors to enter the marketplace. So the timing of that Jobs act, which was in part created because of the fact that the US Was in such a great recession, now allowed all these people to enter the real estate market. And all these people that have invested in real estate since then have had a tremendous amount of success. So the question becomes, how likely is it that that success is replicatable if they don't go through the due diligence processes that are necessary to do at the end of a cycle? Because most of the people that I talk to, and I've had the pleasure of interviewing many very successful real estate entrepreneurs, they're very active right now, but the level of expertise is very high. And so what I want to talk today about is some of the stages of due diligence, some of the steps of due diligence that I use as an investor that investors and listeners can use to protect their own capital.

All right, let's get into it. Scott, any questions from you before?

No. Let's hear what he has to say.

The seven deadly due diligence sins, if you will.

So these are basically listed in order of importance. And this is from the perspective of a passive investor. Right. So the first thing that I'm going to look at is the sponsor, then the on site manager, the loan and financing, which I think is completely underutilized and incredibly important. I'm going to talk about the pro forma, the property performance, the track record of the property itself, the market, the property, specific due diligence. This is like the physical components of the property and then the legal documents. And I think that'll give you a good understanding as to how I perceive the real estate due diligence space, especially as a passive investor. The legal documents being last is something that a lot of people might be surprised by. But this is all about the people that you're making a bet on. So all of this due diligence comes down to reading between the lines. Understand, understanding are the people that are involved and the Sponsor that is involved in the process, are they putting themselves in a position to deliver on their promises? And everything that we do through the due diligence process is really just a way to verify that. And I can go ahead and start some of those. But that's kind of the framework in which I viewed the entire due diligence process.

Yeah, I mean, now that we've seen it from 30,000ft, let's start with the most important piece for you as a passive investor taking a good hard look at the sponsor.

Sure. So, number one, I think that all of us are trying to make a really good understanding of are we able to verify some of the claims that they're making. So some of the easiest ways to do this. First of all, what I want to do is I want to talk to references. And when I say references, it is nice to talk to investors. That's fine. Most of them are going to be biased. Obviously that's not a surprise to anyone, but. But if you can talk to some of the professionals, that is when you start to get into a little bit more meaty of a reference. So if the sponsor claims to have $100 million under management, I want to talk to the lenders that have provided the loans that would verify that, or I want to talk to the attorneys that have drafted the ppms that could verify that or the cpas that would do that. Now, some of that information may be private, but at the same time, if you have 15, 30 minute conversations with some of these service providers, you're going to get a much better understanding as to if this lines up or not. Something else would be the on site manager. How many assets do you have with this firm? You know, how many square footage, how many square feet do you have with this firm? Those things really start to line up. And then when you look at something like track record, it's important to just go one or two levels of detail deeper than what is just provided to you. So if you see a track record and it says that they've been in the business for 30 years, I want to have a clear understanding as to what they were doing for that 30 years. You know, you may hear someone say, you know, I have been involved in $1 trillion of real estate. Well, they used to work for Goldman Sachs, which has 25,000 employees, and now they have a company with five employees. These type of things really do make a difference when you're trying to understand their background as a business owner. You can also do things speaking of that, like background checks. So I Use a company called tlo, which can basically give you a criminal and a business background check of a person. You want to just make sure that their claims line up with what you see in the background as it pertains to things like their business, when they start the llc, what type of educational background they have. Of course, you want to make sure they don't have any kind of criminal stuff relating to securities frauds or anything like that. Something else that I do that's relatively inexpensive, but also a good way to check things. Any sponsor can claim that they own any property. So a good step of due diligence is to look at the property, pull the title, at least a preliminary title report to see the entity which owns that property, just to make sure that that entity lines up with what they're claiming. At the end of the day, it's really just a gut check. So if all those things do line up, then it's just a matter of what have your communications been like with them? Do they respond to emails within 24 or 40 hours, depending on what you're accustomed to? If it's not a 10 out of 10 relationship upfront, it's certainly not going to be in seven to 10 years when these properties are going to be sold. And now I know that was a ton of information, but I do think that if you just do some of the things that I just mentioned, you're going to be in the top 80% or top 20%, I should say, in terms of the amount of due diligence and also because it's all focused on the sponsor, you're going to be in a really good position. So that's a really good intro into due diligence when it comes to passive investments.

Right, right. And just so that everyone understands what the sponsor is. So, for example, Scott and I have a fund. We have to talk to people directly, one on one with our fund. They have to be an accredited investor. But so we're essentially the sponsor. We're saying we're going to take you your money and Mr. Investor, and we're going to deploy it and hopefully get you this return. What you'd want to do then is make sure you follow Hunter's advice and make sure, like, has Mark and Scott been to jail? Right. Do we actually own these assets? Talk to the attorney that drew up our private placement memorandum. Make sure you go through these due diligence steps so that you sleep better at night. Don't just talk to the people that have given us money and made a return. Right. Because Maybe that's could be, I don't know, erroneous. Right.

Well, it's just easy to get someone's friend to say, yeah, sure, I invested with them. And look, anyone that's going to provide you reference, they know that that person is going to provide you really positive thing. Right. And we've all done it. If someone asked me for a reference, I'm going to provide them with someone that I have a relationship with, that I know that is not going to be inconvenience, they're going to be happy to do that. But when you start talking to, let's say the property manager, someone that works for the organization or the attorney, they have a professional reputation uphold and those conversations can be much more detail oriented and I find much more fruitful.

Right, right.

Okay, so now the sponsor checks out. What's the next step?

So this is kind of short, but the property manager is really important and I think it's next, but just not. Doesn't have to be that extensive. But it's just something to take note of really what I want to see is the level of reporting that's provided from the property manager to the sponsor. It may not need to be provided to me on a quarterly or basis. I just want to see how sophisticated the and how transparent they are and how detail oriented they are. I also want to see what software they're used. Something like YARDI is kind of the industry standard in self storage. We use a software called Web Self Storage which is created by U Haul. So I just want to know, and even if it's something I've never heard of, that's fine. I just want to see what that transparency looks like. When I ask questions like do they accept ACH payments in certain asset classes? This is mandatory in certain asset classes. Doesn't matter at all. If you're investing in a class multifamily apartments, it's pretty much mandatory that you accept electronic payments. If you're investing in mobile home park, for example, that may not be as necessary. The key though to all this is that if you start thinking about it in these seven steps and start asking just a few questions, you're going to get a sense of what's available out there and you're going to get a sense of who you're dealing with, which is kind of the overarching theme of the whole conversation.

Excellent, excellent. Number three.

So this is tremendously underutilized and is by far the most important when it comes to things that aren't typically talked about. I'd say that 99% of all the horror stories that have anything to do with real estate, and especially loss of principle, have to do with the loan. And so if you can look at the loans that are being acquired for your deals in a way that understands how conservative, aggressive they are, looking at a few key metrics, you're going to have a much better understanding of the overall risk profile of the deal. So obviously loan to value is really important, but again, one step deeper. How is that loan to value established? Is that based on as is value? Is that based on an appraisal? You know, something like that would be a really good question. Or loan to cost. So if you're investing in properties that have a value add component, let's say you're buying a property for $10 million and there's a $15 million loan, that's a reasonable loan to value. Well, if you're buying a property for $10 million and then putting an additional $2 million in the property to make it more valuable, that loan to value is much more conservative. So you want to take that into consideration when you're looking at the overall debt structure of the thing. Then something else we want to look at is the debt service coverage ratio. It's the ratio of income to the amount of income that's going to debt service on a monthly basis. That number typically I like to see 1.25% or so, excuse me, 1.25x or 125%. So if 100,000, $125,000 of income is coming in, then up to $100,000 can go to a loan. And that's kind of where banks start to be uncomfortable. When that number increases, the number is getting more and more conservative. So if you start at 1.25 and in three years you're at 1.5, the debt is becoming more and more conservative in the sense that there's more and more income to pay off that loan. But when you're looking at that, there's a couple other things to consider as well. So one of those is the interest only period. So in commercial real estate, it's very common that that a loan will have an interest only period of 1 years or 2 years or sometimes 5 years. This is the time at which alone the payments that are due are only interest and they're not paying themselves down. So the reason this is important is that if you're looking at two properties that are basically the exact same, one has a one year interest only period and the other has a five year Interest only period, the one with the one year interest only period is not going to look as good because you're paying the debt down in year two, meaning that the cash flow will be less. So you don't take that in consideration, you're going to have a skewed view of the property as a whole and you're not going to understand that the fact that it's not paying itself down means that the loan is not as conservative. So it should definitely be considered there. And there's some other things like the loan term, the time at which the loan needs to come due, is it five years or 10 years or 12 years or something like that, as well as the amortization schedule. So now you have several metrics that you can look at, tweaking them to see how conservative the loan is and really have a much better understanding as the big picture of the capital stack rather than just something like the loan to value, which is easily manipulated, for example.

Right, Scott? Todd?

Well, you know, first of all I'm thinking like man, how lucky we are that we deal with land and we're not going out and getting loans. I mean, you know, like that's kind of like the big deal. And you know, I think that a lot of times like the debt coverage ratio kind of it will, like you said, it will mess up or I'm sorry, the interest only piece will mess up the numbers if you're not taking that into consideration.

Duration.

Hunter, would you rather see like a loan where there is no interest only period or like would you prefer that there is an interest only period? As an investor, which one of those would you prefer?

Yeah, I think that's actually a really great question because it really starts to get into this whole looking at the whole debt side of things rather than just one metric. Right. So like previously in my career I was basically thinking five years of interest only is completely unacceptable. And if someone had five years of interest only, I'd basically throw in the trash because it was my perspective that you're being aggressive. Well, particularly now, late in the cycle. What if the loan to value is only 50% and because of the fact that it's interest only, the debt service coverage ratio is 1.5 or 1.8. You're starting to see loans like that. I would say that's a very conservative loan. It doesn't need to pay itself down. Even if it was paying itself down over five years compared to a normal loan, maybe the loan to value wouldn't even be the same in year 1, 2, 3, 4, 5. Does that make sense? I know I'm throwing a lot of numbers out there, but that's my best way to answer that question, is that it's important to look at the whole stack. Overall, I want to be conservative, but you want to be mindful of that debt service coverage ratio when considering that whole interest only period thing. I'm not opposed. Now I understand that if you had a sub 60% loan to value that having five years of interest only is. I think that's relatively conservative and still allows investors to experience cash flow during that hold period.

All right, awesome, awesome. Number four.

So this is really about the property performance and the pro forma. And this is where you're starting to get into the range where very few investors go to this level of detail. But this is important for the next stage of the whole syndication space. So what I want to look at is the trailing twelve and trailing three months financials of the property. I want to compare those historical averages to the first year of the pro forma of the projections. So basically I'm saying look at the history of the property and looking at what they're projecting for the next 12 months. Where are the big changes taking place? And I want to ask questions about how those changes can be validated. So one of the things that comes up sometimes is that you're looking at an expense ratio of the last 12 months of 55%, meaning that 55% of the income is going towards expenses. And then in year one, magically they're down at 53% or, excuse me, 43%. I want to say, how is it the case that there's such a significant jump or decrease in the expenses that are charging this property, especially if they end up saying that they're going to keep the same property manager on Those are the types of things that start to come up. If you're looking into that level of detail, basically saying, where are the major changes? You is the occupancy increasing? Is the rental rates increasing? Are the expense ratios getting more favorable? All of those the sponsor should have very good answers for. And when you ask questions like that, you'll be able to see how detail oriented they were. When they created these projections. Did they get them from comps? Do they have other experience in the market which allows them to know this without pulling comps? If they say, actually we have three properties right within three miles of this property, we, we know this property should be renting for this and the current owner is just not taking advantage of that, it's a really good sign that you're dealing with someone that knows what they're doing. If they say that, we just think that this will be the case. You're starting to get into the area of me being really uncomfortable.

Makes total sense. Total sense. And when I was doing investment banking, we would look at this all the time. And it was really, really critical that there were any red flags as far as expenses or being out. Like the ratio being way too high or way too low compared to industry standard. And that alone could kill a deal right there. So that's great. Number five.

So these are the assumptions which result in those projections. When you're looking at the pro forma, you want to see what are they assuming will take place to make this happen. And here are just a couple that I think are going to make a very big difference in that overall projection. So the rental rate increases, the exit cap. This can make a huge difference. The exit cap rate is big. So let's just talk about exit cap really quick, like thing. It's important. So if you're buying a property at a 6 cap in today's market conditions, the industry standard.

Let's just, let's just quickly define what the cap rate.

Oh yeah, sure, no problem. I know a lot of your listeners are focused more on land, so it makes sense to definitely go through something like that. So cap rates are basically the multiple at which real estate is traded if it was purchased in all cash. Okay. So if you're buying a property for a million dollars that's producing $100,000 of net operating income, you'd be purchasing a tin cap. So it's a multiple. It's a multiple which real estate's traded. So the higher the cap rate, the higher the year one cash flow, the higher the cap rate, the lower you are paying. It's inversely correlated with the purchase price. So when people refer to cap rate compression, that's if a property's purchased at a 10% cap rate and now the market has gone from 10 down to 7, that means the value of that same income is much more. There's much more value to it and the multiple is actually increasing. So what we want to do is to be conservative is to project that there'll be a cap rate expansion, meaning that instead of buying a property for. If you buy a property for a million dollars that's producing $100,000 in net operating income, we want to say that there's a 10 basis point expansion every single year. So we would buy the property, let's say, just for example, we buy the property for a million, but maybe by the end of the 10 year period it may be only worth 800,000 if the, if the income doesn't increase during that hold period. Now of course we want to buy properties where the income will increase through rental increases and value add, et cetera. But the point is we're not relying on the market to generate that massive return because of some significant cap rate compression, which is the opposite of that. Hopefully that clarifies that. You know, I, there's an ebook that I can probably link to that'll probably help listeners out that aren't familiar with that terminology.

So you're saying that unlike the pro forma, the exit component of the pro forma, what you're looking for is you're actually looking for a degradation of the cap rate. Cause I've seen investors where they'll say like, hey, we're buying it at 10, but we're going to sell it at a 6, right? And you're like, well, I mean there are some scenarios where you can do that, like you've made mass improvements to the market or to the property, the markets change, all this other stuff. But like you're saying if you're depending on that, you're out, right? Like you would rather see that they went from a 10 to a 12 over a five year period, something like.

That, in that range. And this is a conversation we can have, you know, an extensive conversation we can have. But a lot of people that look at value add properties, you know, previously what the pitch used to be was look, we're buying a 10 cap and we're going to sell it at a 6 cap because we're adding all this value. I think the opposite is true. Look, if you're buying a property that needs a ton of work and you're doing all that work, there's not as much meat on the bone for the next guy. So why in the world would he pay more for that same income if that value add potential is not there? And that's part of this changing market dynamic, is those conversations need to be had rather than the just saying it is what it is. It needs to be thought through more clearly. And I think that what I just explained makes a little bit more sense than saying now that the property is an incredible position and it's fully stabilized, people are going to pay this insane multiple for it. I don't think that adds up.

I love the logic. And it's such a conservative way to look at it because essentially you're Discounting any market factors. So I love that.

Exactly.

Number six.

So this is about the market itself and there's just a couple things that we can touch on really quickly. The main one is I want to make sure that the property is in a market which is large enough to facilitate a diverse economy. So I'm looking usually for a major metropolitan area, it's okay if it's 40 minutes away, but at least a half a million. Usually. This will allow you to have diversity of employment. So I'm looking for things like medical education, government hospitality, which can be very cyclical. So you don't want to be overweighted to that, obviously. And tech, which obviously there's a lot of high paying tech jobs. But many of these companies that are paying all this money, some of them aren't profitable, so they rely on additional funding. So it's important to look at all of that. I think a good rule of thumb would be 20 to 30% of the city's income. No more than that should be attributed to one particular industry. Especially if it's something cyclical like hospitality or even something like oil. People had a lot of trouble doing things like that. Also, risks of the market, tornadoes versus hurricanes. Tornadoes, those can be overcome. Hurricanes, historically speaking, those can present really serious challenges. I mean, you think about the damage that some of the tornadoes have done in the Midwest as opposed to the hurricanes in New Orleans, where things are still recovering. It take years. The whole economy can really struggle. So just high level, those will give you some good ideas. Median household income, income in general. Those are things I want to look at for the market as a whole.

Fantastic. One of the best websites, I think to check that out is bestplaces.net do you like that site?

Yes, I do like that one. There's one that's a little bit more. It's a little bit more costly, but I think it's visually really appealing as well. Which is Esri. Esri. They have something called a business analyst. It's about $1,000 a month. That's really good information. They pull it from the same information. It's census data, but it's, you know, it's. You get some visual stuff, it'd be cool to share it with investor kind of thing.

Very cool, Very cool. Scott, why are you smiling?

Thousand dollars a month. You lost me.

Oh, excuse me. It's a thousand dollars a year.

Oh, yeah, yeah.

I'm glad we clarified. You'd be surreal. I mean, that's like the cheapest it gets. The costar, for example, is another really good one. And those are most of the sponsors that we work with. They use Costar. It's 2,500 or $5,000 a month.

We love COSTAR because. Yeah, it's just building Scott's platform land Mondo every month because they keep raising their prices.

I love this because they are out to. Because they, they're trying to control a monopoly and they charge outrageous prices. So that's music to my ears. More.

Perfect. You just.

Thank you. I do have a question for you. So, like, one of the things that you had mentioned, and I'm going to go back to like the property. One of the things that you mentioned is like the property performance, et cetera. Do you ever invest in like a new development? So I'm going to come in and I'm going to build this apartment building. Is that something that you would invest in or. And if so, how do you look at the development or the property? Is it just kind of saying, well, okay, here's the architect and here's what we think and here's the projections on that component of it?

Yeah, that's really important. Obviously, when you're bringing in development, it's like an entirely new risk profile, even if it's only a component of the investment. So with things that we do through our company or my company, we want to focus on the value add to stabilized risk profile with some of the development components being a part of that value add component. So let's say that we buy a property that it's 50,000 square feet of CEL storage. We may have an opportunity to expand the facility by 25,000 square feet. That would be the highest in the range of risk that we feel comfortable in today's market climate or otherwise. I think that there's plenty of money to be made in that risk profile when you do that. To your point, it's not about the track record of that particular property. We want to ensure that that property has demand in place. You can make good, reasonable assumptions about the future in that case. But when it comes to the architect, the developer, the general contractor, those things are really based on track record. So it goes back to that first part, which is just verifying, going on site, seeing those relationships and verifying the claims that they're making.

Very good, very good. And then last but not least, hunter number seven.

So the, the pro. I think we're actually on six. I could be wrong about that. But there's definitely two more I want to talk about. I can run through them. I can know we're crunched on time trying to get as much content to the listeners as possible. So the property due diligence is something that's a little bit overlooked. It's really the physical property of itself. So I'll just throw a few couple key indicators out that I like to take a look at. So the number of units is really important to me because of the tenant diversification. So with self storage, for example, like 400 units, with retail elector to be at least 13 tenants. So that way you can get a good mix of different sectors of the economy. With multifamily, I like to have 100 units. With senior living, I like to have 100 units. That way if 10 people move out, you're not going to have a major problem. From a cash flow perspective, I also like to see daily traveled vehicles in the 20,000 to 25,000 range. And it's important to verify that those daily traveled vehicles do have visibility to the property itself rather than you're just driving. You know, if there's a freeway that's right next to the property, but the property is under the freeway, you're not going to get those, you know, 50,000 square feet. Excuse me, too many numbers. 50,000 daily travel vehicles aren't going to benefit you. So those are just some quick ones. And you know, there's obviously tremendous amount of details we can go into other than that.

All right, one more. Last one. Yeah.

All right, you guys are giving me some extra time and so I really appreciate it. But the last one, I will just touch on this quickly. The legal documents, it's really key here to read them. And I'm just going to say this, no one likes them. I have spent more hours reading ppms than anyone probably would like to admit. But the key here is just making sure that your understanding of the deal lines up with the way the deal actually is going to work. From a legal contractual perspective, does the executive summary line up with the legal documents? Once you get over that, you want to look at things like voting rights, under what circumstance do you get a vote? Do you have the capacity to remove a manager if they are a bad actor? And I'm not saying one way or the other, but if you start to read these documents, you'll start to get a range of what is appropriate and what is more investor favorable and what is more sponsor favorable. Really, really important one is additional capital requirements. We do not invest in deals where additional capital can be required other than on a voluntary basis. So that's something that's just a no for me, it may be okay for you, especially if you're just an investor and, you know, we have to raise investor capital. But then also the waterfall. Is there a preferred return? What's the split above the preferred return? Does cash flow from operations above the preferred return count as a return of capital? And honestly, guys, if you go through and just ask three questions about some of the seven that we just went through, you're going to be in a really, really high caliber of investors. And I think it's necessary for the next 10 years to be as good as the previous 10 years for your personal portfolio. I think if you start thinking about it like that, your investors are going to be really knowledgeable and in a really good position.

Yeah, absolutely. Scott. Ty, you know, my biggest takeaway was from this. What? Hire a guy, like, invest with someone who looks at this stuff every single day.

Someone who likes to read this stuff, huh?

Yeah. I mean, he's like a real estate quant and loves ppms and, you know, asks the right questions. And so to do this on your own, it's not that you can't do it on your own, but if, let's say you're a physician and you're making $750,000 a year, your time is better spent not pouring over, you know, sponsor questions and then verifying and going to TLO and going down all seven of these things, and then still not going to bed at night knowing definitively you've asked all the questions. When you've got a guy who does this every single day full time, this is his expertise. It makes absolutely no sense. So that was my biggest takeaway.

For sure. That's very, very kind. I do appreciate that. That's obviously very kind of you to mention that. So I'm just trying to help. I know it's going to be tough to replicate those returns, but I'm a huge proponent of these syndication investments. So I don't want people to be burned, and I certainly don't want the government to get involved when people do. So that's my goal.

No, and I think it's great. And, um, I, you know, what's interesting about it is it wasn't like you were throwing out a legal. Lot of legalese or overwhelming us. It was really good information. But at the end of the day, if you're gonna, you know, go into a syndication, you're better off doing it with a professional than you are on your own. I mean, with brother in law Bob, this is a great podcast to listen to again and again. Ask those questions, but you're still not going to, you know, sleep 100% because, you know, you only looked at one deal. I'd rather have somebody who's looked at a thousand deals, passed on 950 of them, and know the reasons why they passed on 950 of them and do it that way. So, Hunter, if we want to learn more about you, where can we go?

Yeah, so you can go to cashflowconnections.com, create an account. You'll also have access to some of the articles that I've written and the podcast that we have, which, you know, I love podcasts. I'm a huge fan of the podcast medium in general. Definitely had the honor to interview some awesome people on there. So I'm sure a lot of your listeners, like podcasts, will check that out. And other than that, you know, just don't hesitate to send me an email at any time, and I'll shoot you a couple of ebooks and, you know, keep the education going.

Yeah. So if we want to become more educated, what would be your tip of the week?

Yeah, I mean, to be honest with you, rather than one specific resource, it's really just focus and execution. So if you can just do those two things, it's really the answer to anything. Right. And so that's really the answer. So if, especially with the availability of good content out there on the Internet, if every day your main focus is to execute on learning as much as possible, you're going to have tremendous results just because of the one thing is that you're actually doing that. If you move, if you take action, the results are going to be tremendous, especially compared to the other competitors out there that usually don't take the type of action that is focused. So that's my suggestion.

I love it. I love it. Scott, Todd, do you have a tip of the week?

I do have a tip of the week, Mark. Check this out here. I'm going to put in the chat for you guys as well. Check out this. Check out this website called Picular Piculer. Co. It is the Google of colors. All right, so Google colors. Yeah, so like, type in whatever color you're looking for or like thinking like a motion or something like summer or like water. So I'm gonna type in, like, water, and all of a sudden the colors start coming up that they've identified deal with like water. So I got some beautiful blues on there, light blue, some greens. Right. It gives me the hex code. So all these cool things for colors. Really cool.

Whoa.

This is a great tip.

Wow.

I love it. All right, I'm gonna.

You know what? Can I throw. Can I throw an extra tip in? Because I just reminded me of something that I just did as well. Yeah, there is. I think it's called Coolers. C O O L E R S, I believe, is the website. I can't pull it up right now just because the Internet's lagging a little bit. If you're trying to get a color scheme for an event, for a wedding, for a birthday, that is where to go. And I. That's actually not the right website. So I'll link to the website. I'll send you guys the link so you can share it with your. But you just. Just reminded me real quick. Sorry about the interruption.

No worries. No worries. It's the best time ever to be alive, isn't it? I mean, it's just so good. So my tip of the week is obviously. Learn more about Hunter. Go to cashflowconnections.com and just a little reminder to the listeners, you know, please support us. Send. You know, you got to subscribe, you got to rate, you got to review the podcast. Send us a screenshot of that review to supportlandgeek.com we're going to send you for free the $97 passive income launch kit. And also, today's podcast is sponsored by my own book, Dirt Rich. And learn how you can get a $500 worth of goodies. Just go to thelandgeek.com dirtrich all right, Scott, are we good? We're good. Mark. Hunter, are we good?

Coolers Co is the company. Other than that, yes.

Coolors Co. All right, let freedom ring. Thanks, everybody.