1 00:00:20,081 --> 00:00:23,631 Speaker 2: Hi friends, this is Vinny Chopra from here in Danville, 2 00:00:23,691 --> 00:00:27,561 California, and you might be saying, Hey, Vinny, what are these over here? 3 00:00:27,791 --> 00:00:32,491 You know, I wrote this book a few years back, Apartment Syndication 4 00:00:32,491 --> 00:00:34,531 Made Easy, it became top seller. 5 00:00:34,731 --> 00:00:37,491 I came from India with 7 in my pocket. 6 00:00:37,691 --> 00:00:39,641 It says 500 million. 7 00:00:39,781 --> 00:00:42,611 It's going to be 1 billion very soon, very soon. 8 00:00:42,821 --> 00:00:45,511 I'm right at about 850, 900 million. 9 00:00:45,511 --> 00:00:48,081 It's And then I'm ready for the next billion. 10 00:00:48,161 --> 00:00:51,691 Actually, you will see that happening two billion in this book. 11 00:00:51,781 --> 00:00:55,101 Also, the other book I wrote, which has been a very big 12 00:00:55,291 --> 00:00:57,061 positivity has been my life. 13 00:00:57,401 --> 00:00:58,581 Always, always. 14 00:00:58,581 --> 00:01:01,241 I've been married 43 years with two children. 15 00:01:01,551 --> 00:01:03,691 And the beauty is to be positive. 16 00:01:03,731 --> 00:01:07,231 The mindset that can take you to all the places in the world. 17 00:01:07,491 --> 00:01:09,231 And that's the book that also. 18 00:01:09,581 --> 00:01:10,851 Became big, big seller. 19 00:01:11,031 --> 00:01:13,881 My third book, Senior Assisted Living is coming. 20 00:01:14,061 --> 00:01:18,541 So do yourself a favor, go ahead and click the link below to get free 21 00:01:18,541 --> 00:01:23,351 copies, audio copies of these books, even printed copies of these books. 22 00:01:23,571 --> 00:01:27,031 If you, I'm a print in means digital, if you can't afford it, 23 00:01:27,191 --> 00:01:31,281 but I would highly recommend for you to get these or go to amazon. 24 00:01:31,561 --> 00:01:31,971 com. 25 00:01:32,231 --> 00:01:33,351 Just go to Amazon. 26 00:01:33,591 --> 00:01:36,401 I got it in soft cover and hard cover. 27 00:01:37,096 --> 00:01:40,486 In Kindle, in audio, also the Spanish version of this. 28 00:01:40,546 --> 00:01:41,686 Oh, this book also. 29 00:01:41,956 --> 00:01:44,036 So let's crush it, guys. 30 00:01:44,346 --> 00:01:46,066 I know you can be successful. 31 00:01:46,066 --> 00:01:50,426 I know you can do the kind of things that you want to do in life and have 32 00:01:50,426 --> 00:01:55,796 the streams of income and know how to really, you know, educate yourself so 33 00:01:55,796 --> 00:02:01,306 that you could become a strong, strong force in this world in real estate. 34 00:02:01,476 --> 00:02:02,386 I know you can. 35 00:02:02,821 --> 00:02:04,031 So take that step. 36 00:02:04,171 --> 00:02:05,821 Don't just be on the sideline. 37 00:02:06,071 --> 00:02:07,451 Take charge of your life. 38 00:02:07,551 --> 00:02:09,091 Take charge of your education. 39 00:02:09,537 --> 00:02:12,657 All right. 40 00:02:12,677 --> 00:02:13,077 All right. 41 00:02:13,087 --> 00:02:14,947 Let's have some special time together. 42 00:02:14,947 --> 00:02:15,507 Yeah. 43 00:02:16,387 --> 00:02:17,227 How are you? 44 00:02:17,257 --> 00:02:18,147 How are you doing brother? 45 00:02:18,707 --> 00:02:23,247 I am doing good working from a beaver today because it was just out hot 46 00:02:23,247 --> 00:02:29,097 outside, but still looking for deals, still like excited about working 47 00:02:29,107 --> 00:02:31,057 for, getting something in place. 48 00:02:31,097 --> 00:02:31,747 Yes. 49 00:02:32,067 --> 00:02:35,417 I know things have not panned out exactly the way I wanted to, 50 00:02:35,417 --> 00:02:39,007 because I was hoping I would be getting some kind of a deal by now. 51 00:02:39,057 --> 00:02:43,247 But hopefully things work out and they will, they really will, and 52 00:02:43,287 --> 00:02:48,107 the exciting thing is that market is turning, interest rates are going 53 00:02:48,107 --> 00:02:49,927 to be coming down even further. 54 00:02:50,337 --> 00:02:54,057 Lot more hustle bustle is going to enter this market now. 55 00:02:54,437 --> 00:02:58,287 And multifamily is something you can always count on, so 56 00:02:58,287 --> 00:03:00,027 it's going to be fantastic. 57 00:03:00,237 --> 00:03:04,232 Just we need to have some little bit more patience also. 58 00:03:04,862 --> 00:03:06,982 Finding the right deal is so important. 59 00:03:07,042 --> 00:03:12,922 It's so very important because the first deal, if it's great, then the next and the 60 00:03:12,922 --> 00:03:14,972 next and the next will be very good too. 61 00:03:15,382 --> 00:03:20,602 And took me 11 months to get my first deal, by the way, 11 months, way back 62 00:03:20,602 --> 00:03:28,602 when, and then certain times lately, 2014, 15, 16, maybe I used to buy, you 63 00:03:28,602 --> 00:03:30,222 have to go through hundreds of deals. 64 00:03:31,347 --> 00:03:33,127 To find one gold nugget. 65 00:03:34,427 --> 00:03:35,487 One golden nugget. 66 00:03:35,497 --> 00:03:38,347 So keep that in mind, yeah, no problem. 67 00:03:38,547 --> 00:03:41,377 All right, let's just start by hello, Franco. 68 00:03:41,397 --> 00:03:42,357 How are you, brother? 69 00:03:42,377 --> 00:03:43,257 Good to have you. 70 00:03:43,877 --> 00:03:44,627 Yay. 71 00:03:44,767 --> 00:03:45,087 All right. 72 00:03:45,097 --> 00:03:45,807 Let's do this. 73 00:03:46,037 --> 00:03:49,037 Our attorney asked us to do glad you are all here. 74 00:03:49,377 --> 00:03:50,767 And hope you're excited. 75 00:03:50,777 --> 00:03:55,067 Welcome to my, weekly inner circle mastermind and so forth. 76 00:03:55,067 --> 00:03:59,697 And brother Daryl is coming in again, the it's for entertainment 77 00:03:59,697 --> 00:04:04,417 and educational purposes only that we meet and talk about real estate, talk 78 00:04:04,437 --> 00:04:06,807 about mindset, talk about positivity. 79 00:04:06,807 --> 00:04:08,507 All these great things. 80 00:04:08,767 --> 00:04:11,517 And it's educational, probably no legal. 81 00:04:11,842 --> 00:04:14,852 advice or accounting or, invites is given. 82 00:04:14,852 --> 00:04:19,272 So please consult your attorney and CPA and so forth like that. 83 00:04:19,272 --> 00:04:20,532 Again, growth mindset. 84 00:04:20,542 --> 00:04:21,202 It's huge. 85 00:04:21,492 --> 00:04:25,112 I'm going through my life with the knee surgery now, but I'm 86 00:04:25,142 --> 00:04:29,242 feeling so good in three weeks I'm walking without the Walker. 87 00:04:29,332 --> 00:04:34,787 And I, I was my therapist said, Oh my gosh, Even my superstar coming in, 88 00:04:35,287 --> 00:04:40,007 I couldn't believe it, so anyway, I feel positive that the recovery, full 89 00:04:40,007 --> 00:04:42,307 replacement recovery has gone well. 90 00:04:42,982 --> 00:04:43,682 Praise the lord. 91 00:04:44,012 --> 00:04:47,202 So brother daryl, how are you sir? 92 00:04:47,302 --> 00:04:52,342 All right Having a good day having a good day Hey, that's the key. 93 00:04:52,362 --> 00:04:54,672 That's the key, and brother franco. 94 00:04:54,702 --> 00:04:55,652 How are you? 95 00:04:55,682 --> 00:04:57,512 Yeah, i'm doing How are you? 96 00:04:57,622 --> 00:04:59,322 i'm doing great doing awesome. 97 00:04:59,622 --> 00:05:03,452 We might have three or four more students joining You know, they 98 00:05:03,452 --> 00:05:08,697 are finding more i'm doing event bright This is my first Eventbrite. 99 00:05:08,697 --> 00:05:15,677 I have 92 tickets sold out of 100 tickets and it is mind blowing. 100 00:05:16,057 --> 00:05:19,407 I'm going to be talking about senior assisted living, in this 101 00:05:19,407 --> 00:05:21,307 and it's a catchy, very catchy. 102 00:05:21,317 --> 00:05:23,227 A lot of people are really excited about it. 103 00:05:23,407 --> 00:05:27,967 Bill, who is my marketing manager, we were just discussing an hour before this. 104 00:05:28,217 --> 00:05:29,297 I meet with Bill. 105 00:05:29,737 --> 00:05:31,247 Every Wednesday. 106 00:05:31,557 --> 00:05:35,707 So we were able to get all the first name, last name, and the 107 00:05:35,717 --> 00:05:38,507 email addresses of 90 people. 108 00:05:38,857 --> 00:05:45,257 I don't even know them from Adam and they are the ones who want to attend my 109 00:05:45,267 --> 00:05:49,837 seminar webinar, which I'm giving for one and a half hour on Saturday morning. 110 00:05:50,202 --> 00:05:54,222 Not this Saturday, but the following Saturday, and they want 111 00:05:54,402 --> 00:05:59,722 to, learn how to buy, what to say, and how to do all those things. 112 00:05:59,742 --> 00:06:00,742 So very exciting. 113 00:06:01,102 --> 00:06:06,102 So I'm going to be doing like once two webinars on Eventbrite month. 114 00:06:06,882 --> 00:06:11,332 To build database also and also clients and things like that. 115 00:06:11,432 --> 00:06:14,722 Anyway, I wanted to share that with you because it's very simple way 116 00:06:14,722 --> 00:06:19,562 to gather lots of people who are interested in what you're doing. 117 00:06:19,582 --> 00:06:19,782 Yeah. 118 00:06:20,532 --> 00:06:23,632 All right, let's go to what should we talk about today? 119 00:06:23,952 --> 00:06:25,502 What's on the hot topic? 120 00:06:25,872 --> 00:06:26,447 Hot topic. 121 00:06:28,497 --> 00:06:35,107 So this group, except you, Vinny, I, Franco, and Daryl, we met yesterday. 122 00:06:35,177 --> 00:06:40,227 Talking about the deal that you had sent out. 123 00:06:41,947 --> 00:06:46,217 We were just like underwriting it thanks to Franco and Daryl's initiative. 124 00:06:46,647 --> 00:06:48,867 So I'm so happy you guys did it. 125 00:06:48,907 --> 00:06:55,577 It pleases me immensely because the thing is we need to be totally Ready. 126 00:06:55,847 --> 00:07:00,607 For analyzing lots of deals because you will find them now, and there 127 00:07:00,607 --> 00:07:02,207 is a great deal in Nashville. 128 00:07:02,397 --> 00:07:07,917 I just got today 71 townhomes looks very attractive, and my daughter 129 00:07:07,917 --> 00:07:12,277 and I we talked about when I go to buy 300 units 400 units like we've 130 00:07:12,277 --> 00:07:14,907 been doing for such high price. 131 00:07:15,232 --> 00:07:19,292 But we would love to go with a value at function at a smaller 132 00:07:19,292 --> 00:07:23,352 level, like 100 units is usually we are looking at, but no, go ahead. 133 00:07:23,362 --> 00:07:24,242 You want to share? 134 00:07:24,602 --> 00:07:25,892 Let's dig into it. 135 00:07:29,942 --> 00:07:34,002 Because the one in Huntsville, or was it the one in Georgia? 136 00:07:36,862 --> 00:07:37,142 Huntsville. 137 00:07:37,382 --> 00:07:37,652 Okay. 138 00:07:38,152 --> 00:07:38,452 Good. 139 00:07:38,642 --> 00:07:39,482 Excellent. 140 00:07:40,282 --> 00:07:45,172 Who knows, today we could do one hour of teaching, if we combine everything 141 00:07:45,172 --> 00:07:47,532 into session, yeah, there we go. 142 00:07:47,562 --> 00:07:48,192 Okay. 143 00:08:02,932 --> 00:08:03,262 Yeah. 144 00:08:03,262 --> 00:08:05,852 Basically we were looking at this at a very high level 145 00:08:06,082 --> 00:08:06,612 zoom in. 146 00:08:06,612 --> 00:08:12,152 So you can actually see what and this is the offering memorandum that we had. 147 00:08:12,392 --> 00:08:12,722 Yeah. 148 00:08:12,722 --> 00:08:13,742 Could you share that? 149 00:08:13,912 --> 00:08:16,522 Because I just passed it on to all of you, right? 150 00:08:16,522 --> 00:08:18,502 I said, let you all look into it. 151 00:08:18,682 --> 00:08:23,432 Let's look at the operating memorandum OP and look at and see what 152 00:08:23,602 --> 00:08:27,952 assumptions looked trimming was nice, little bit different maintenance. 153 00:08:28,272 --> 00:08:29,072 The wooden. 154 00:08:29,467 --> 00:08:31,117 The staircase is going up. 155 00:08:31,727 --> 00:08:35,117 We have to see if they were rotted or things like that, that just 156 00:08:35,137 --> 00:08:36,617 comes in my mind right away. 157 00:08:37,067 --> 00:08:38,397 And, oh, is this the one? 158 00:08:39,512 --> 00:08:39,962 Yes. 159 00:08:40,492 --> 00:08:40,832 Okay. 160 00:08:40,902 --> 00:08:41,242 Okay. 161 00:08:41,802 --> 00:08:43,112 So take us through here. 162 00:08:43,112 --> 00:08:44,682 Yeah. 163 00:08:45,742 --> 00:08:46,672 Yeah, sure. 164 00:08:46,712 --> 00:08:52,322 So basically this is like a newish kind of a place and then we did look at some of 165 00:08:52,322 --> 00:08:54,622 the houses that are close to this as well. 166 00:08:54,642 --> 00:08:58,202 So this looks like a little bit better than what is there in the neighborhood. 167 00:08:59,352 --> 00:09:06,102 Average rent is 810 and this is like a 36 unit of the 36 units. 168 00:09:06,102 --> 00:09:08,662 I think more than half are empty right now. 169 00:09:08,902 --> 00:09:15,952 So yeah, like the pro forma numbers are just not to be trusted, but this 810 170 00:09:15,952 --> 00:09:17,952 number can actually go up to around. 171 00:09:18,102 --> 00:09:23,912 1, 000 to 1, 100 based on rent o meter rents, but probably not in all 172 00:09:23,932 --> 00:09:27,112 the different, not in all the units. 173 00:09:27,112 --> 00:09:28,452 Units, all the units. 174 00:09:28,452 --> 00:09:28,792 Okay. 175 00:09:28,792 --> 00:09:29,252 Got it. 176 00:09:29,872 --> 00:09:31,222 Two acre of land. 177 00:09:31,282 --> 00:09:33,632 That's a pretty spread out, right? 178 00:09:34,142 --> 00:09:35,722 How many buildings are these? 179 00:09:36,002 --> 00:09:36,642 Let's see. 180 00:09:37,767 --> 00:09:42,447 These are, I think, five buildings. 181 00:09:43,687 --> 00:09:45,117 They show up pretty good. 182 00:09:45,197 --> 00:09:46,007 What happened? 183 00:09:46,407 --> 00:09:47,717 Half are empty. 184 00:09:48,027 --> 00:09:50,217 Did they have some murder in the place? 185 00:09:50,647 --> 00:09:52,727 Something, sometimes that happens. 186 00:09:52,977 --> 00:09:54,777 Sometimes bedbugs kill. 187 00:09:54,787 --> 00:09:59,197 By the way, bedbugs are very bad, people leave, tenants leave. 188 00:09:59,797 --> 00:10:06,107 So we're not sure what has happened over here, but the vacancy is very 189 00:10:06,107 --> 00:10:11,717 high, but let's just read through the investment highlights four and 190 00:10:11,717 --> 00:10:14,757 a half miles from the downtown. 191 00:10:14,807 --> 00:10:17,447 These are all just points about hansville. 192 00:10:17,447 --> 00:10:18,917 So we already know this. 193 00:10:19,017 --> 00:10:19,287 ? Yep. 194 00:10:19,287 --> 00:10:19,288 Yep. 195 00:10:19,927 --> 00:10:25,697 And there are like eight under 3, 4, 5, 6, 8 different different structures. 196 00:10:25,792 --> 00:10:27,707 Where where all these, so four plexes. 197 00:10:27,922 --> 00:10:29,362 So four, four times. 198 00:10:29,482 --> 00:10:29,992 Oh no. 199 00:10:30,212 --> 00:10:30,692 Eight. 200 00:10:30,752 --> 00:10:31,052 Eight. 201 00:10:31,052 --> 00:10:31,592 32. 202 00:10:31,592 --> 00:10:35,182 That would be otherwise, so maybe one has six, huh? 203 00:10:35,242 --> 00:10:35,752 Yeah. 204 00:10:36,102 --> 00:10:36,612 Yeah. 205 00:10:37,942 --> 00:10:39,052 So something like that. 206 00:10:39,052 --> 00:10:41,702 And then, . And then they look something like this. 207 00:10:41,822 --> 00:10:43,362 Oh, interiors look good. 208 00:10:47,092 --> 00:10:50,132 And all of them are two bed, one and a half baths. 209 00:10:51,052 --> 00:10:51,802 Excellent. 210 00:10:51,802 --> 00:10:52,362 Okay. 211 00:10:54,452 --> 00:10:58,062 By the way, that's even very good because usually we say one 212 00:10:58,112 --> 00:10:59,992 third should be one bedrooms. 213 00:11:00,132 --> 00:11:01,662 Two thirds should be two bedrooms. 214 00:11:01,672 --> 00:11:06,422 In this case, All two bedrooms, so families can live, you could 215 00:11:06,462 --> 00:11:09,372 increase the rents, at a higher level, you could do that. 216 00:11:09,632 --> 00:11:14,562 And two bedroom the pool becomes bigger, who can rent, right? 217 00:11:14,592 --> 00:11:15,762 That's a good thing too. 218 00:11:16,062 --> 00:11:19,592 So it's good to have two bedroom homes all of them. 219 00:11:20,062 --> 00:11:25,912 Now this is operating statement actual, or is It's just T6 and T12. 220 00:11:25,922 --> 00:11:29,432 Even the T6 and T12 that they're sharing, it's just made up 221 00:11:29,432 --> 00:11:33,142 numbers because they filled up the vacancies with the market range. 222 00:11:33,392 --> 00:11:35,342 Ah, okay. 223 00:11:35,382 --> 00:11:36,662 No, we don't want to do that. 224 00:11:37,452 --> 00:11:42,737 We want to pay the price that it's worth today, with 50 percent 225 00:11:42,737 --> 00:11:44,417 vacancy, like you said, right? 226 00:11:44,927 --> 00:11:49,577 And something like that cars also tell a lot about the demographics. 227 00:11:49,997 --> 00:11:51,607 And how about the police report? 228 00:11:51,617 --> 00:11:54,107 Did you guys do the police report on it or no? 229 00:11:54,597 --> 00:11:56,507 How's the crime in that area? 230 00:11:56,687 --> 00:12:01,767 I took a look, Vinny, but I wasn't able to find anything on the crime. 231 00:12:02,207 --> 00:12:08,427 I did find something on terms of housing starts and family 232 00:12:08,427 --> 00:12:10,307 starts, and they have quite a few. 233 00:12:10,407 --> 00:12:17,477 If I remember right, it was either 23 or 43 new multifamily starts. 234 00:12:18,767 --> 00:12:22,167 It's a good thing, which is good thing, by the way, what you just shared there 235 00:12:22,457 --> 00:12:28,157 by knowing that there are so many starts coming, it means other people have found 236 00:12:28,167 --> 00:12:35,097 this area where more growth of population is coming because they're going to spend 237 00:12:35,177 --> 00:12:36,982 the way building brand new product, right? 238 00:12:36,982 --> 00:12:41,207 25, 26, 27 will be when they come out. 239 00:12:41,467 --> 00:12:44,047 So there is a huge pent up demand. 240 00:12:44,497 --> 00:12:49,157 So new product, when it comes into a proper, into an area, it 241 00:12:49,157 --> 00:12:51,047 helps the older properties too. 242 00:12:52,397 --> 00:12:56,687 It does because it increases the rents, and then you move it along. 243 00:12:56,697 --> 00:12:58,127 So that's a very good thing. 244 00:12:58,427 --> 00:13:01,977 Of course, if I were to build another multifamily, I'll be 245 00:13:02,117 --> 00:13:07,507 scared because 44 other people, developers are coming in already. 246 00:13:07,892 --> 00:13:13,682 I would not take that step, but maybe this is telling us now, where is the 247 00:13:13,702 --> 00:13:20,012 path of progress is another thing, where is this property, and the biggest 248 00:13:20,022 --> 00:13:26,307 thing in my mind, when you just said my heart stopped, that it's 50% vacant. 249 00:13:26,707 --> 00:13:30,327 So my thinking is, how did it get there? 250 00:13:31,697 --> 00:13:32,897 How did it get there? 251 00:13:33,027 --> 00:13:37,647 That's what we need to be the biggest detective ever, with the, broker, 252 00:13:37,657 --> 00:13:39,347 with whatever you want to find out. 253 00:13:39,647 --> 00:13:46,917 I'll even put this address onto Google and space Loop net. 254 00:13:47,627 --> 00:13:53,197 So I want to find out more about it, from the internet, but maybe when this 255 00:13:53,197 --> 00:13:59,327 address and the reviews of tenants, so you could do lots of different things 256 00:13:59,747 --> 00:14:06,347 to find out the color on this property, because why it got where it is now 257 00:14:07,247 --> 00:14:15,067 and what's the loan on it now, who has owned it, how many years and how much. 258 00:14:15,932 --> 00:14:18,132 Apex money they have spent into it. 259 00:14:18,502 --> 00:14:20,752 Is it lipstick on the pig, I call it? 260 00:14:21,092 --> 00:14:24,202 Or is it really inside, they took care of it, right? 261 00:14:24,422 --> 00:14:27,042 Oh, look at that, Zillow's, something showed up there. 262 00:14:28,512 --> 00:14:29,912 Wow, look at that. 263 00:14:31,872 --> 00:14:34,702 Ooh, now that's a better looking. 264 00:14:35,182 --> 00:14:37,342 Why did they change the colors and all that? 265 00:14:40,292 --> 00:14:40,892 Wait a minute. 266 00:14:42,022 --> 00:14:43,432 How old is this picture? 267 00:14:43,472 --> 00:14:44,757 Can we see it, please? 268 00:14:46,997 --> 00:14:50,497 Looks like it's in because even Google maps has the same one. 269 00:14:51,707 --> 00:14:52,757 Oh, okay. 270 00:14:52,967 --> 00:14:56,857 So it would be within the past five ish years, five ish years. 271 00:14:56,877 --> 00:14:57,357 Yeah. 272 00:14:57,407 --> 00:14:57,807 Yeah. 273 00:14:58,637 --> 00:14:59,297 Wow. 274 00:14:59,347 --> 00:15:02,777 Overall, looks like a nice area. 275 00:15:02,827 --> 00:15:08,907 There is no fencing around when there are fencing and around the structure 276 00:15:08,907 --> 00:15:10,807 and all, there is theft going on. 277 00:15:11,067 --> 00:15:12,367 There is vandalism. 278 00:15:12,747 --> 00:15:17,262 But in these, in this case, Looks like these are lots of 279 00:15:17,312 --> 00:15:19,072 them opposite to each other. 280 00:15:21,302 --> 00:15:22,242 Wow. 281 00:15:23,722 --> 00:15:25,252 And there are brick there. 282 00:15:25,322 --> 00:15:27,062 I like the brick and all that. 283 00:15:27,122 --> 00:15:28,472 They look pretty darn good. 284 00:15:28,752 --> 00:15:30,712 And the roofs look nice to me. 285 00:15:30,722 --> 00:15:31,342 Look at that. 286 00:15:31,712 --> 00:15:35,312 The biggest expenses, roof appliances. 287 00:15:35,847 --> 00:15:40,567 And the foundational problems, foundation, if it is going to be, cracks and things 288 00:15:40,607 --> 00:15:46,757 like that, or looks like this, even the, maybe it's not wood, maybe, Oh, 289 00:15:46,757 --> 00:15:48,877 there is a construction truck there. 290 00:15:48,907 --> 00:15:52,057 Maybe they are fixing it up to sell. 291 00:15:52,557 --> 00:15:54,727 Your imagination should just flow. 292 00:15:54,727 --> 00:15:56,217 And you say, you know what? 293 00:15:57,167 --> 00:15:58,827 Why are they selling only six? 294 00:15:59,367 --> 00:16:06,207 Six, I think you said 32, why not the other, or maybe this owner owns only this. 295 00:16:07,207 --> 00:16:08,087 It's interesting. 296 00:16:09,437 --> 00:16:12,297 Eight of them, eight of them are being eight of them. 297 00:16:12,707 --> 00:16:13,007 Yeah. 298 00:16:13,047 --> 00:16:13,667 Yeah. 299 00:16:14,487 --> 00:16:16,967 Basically these ones all. 300 00:16:17,357 --> 00:16:17,817 Yeah. 301 00:16:17,817 --> 00:16:24,117 So Vinny, is this somewhere where each individual address is its 302 00:16:24,177 --> 00:16:27,747 own property, obviously, and then it could be broken up and sold. 303 00:16:27,877 --> 00:16:28,827 Is that what's going on? 304 00:16:28,947 --> 00:16:32,387 One owner has one loan against eight of them, and then the others are just. 305 00:16:32,962 --> 00:16:35,722 They could be owned by the same owner or different ones, or how does that work? 306 00:16:36,172 --> 00:16:38,062 Yeah, I'm trying to picture it. 307 00:16:38,072 --> 00:16:42,462 Most of the time owner will buy everything, right next to each 308 00:16:42,462 --> 00:16:43,932 other, like a whole lump sum. 309 00:16:44,462 --> 00:16:46,142 And then it can be in a deed. 310 00:16:46,142 --> 00:16:48,542 It depends on the deed, how they did it. 311 00:16:48,752 --> 00:16:50,662 Is it individual addresses? 312 00:16:50,927 --> 00:16:56,037 If it's beaded that way, you could sell them also separately as a piece 313 00:16:56,037 --> 00:17:02,017 by piece, or I don't know if you could sell each unit separately, that's that's 314 00:17:02,017 --> 00:17:06,707 called like condo conversions kind of thing, laws are there, and then you 315 00:17:06,717 --> 00:17:08,807 have to have a homeowner's association. 316 00:17:09,477 --> 00:17:13,887 If you're doing that, so is there, would there be like one umbrella loan over all 317 00:17:13,887 --> 00:17:17,047 these properties or you think there's individual loans for each property? 318 00:17:17,377 --> 00:17:17,927 Oh, no. 319 00:17:17,957 --> 00:17:18,657 I'm really alone. 320 00:17:18,797 --> 00:17:19,667 You can do umbrella. 321 00:17:20,167 --> 00:17:20,507 Yeah. 322 00:17:20,507 --> 00:17:20,897 Sure. 323 00:17:21,097 --> 00:17:25,967 Because as many buildings you put on, of course, each building will have its own 324 00:17:26,257 --> 00:17:28,187 lot size, which is there right there. 325 00:17:28,187 --> 00:17:28,827 I see it. 326 00:17:29,117 --> 00:17:30,767 And also the structure. 327 00:17:31,017 --> 00:17:36,317 So they are actually giving you a loan on the whole unit, the whole 328 00:17:36,357 --> 00:17:40,957 structure lot and the, oh, there is this guy Patrick right there. 329 00:17:41,297 --> 00:17:42,657 Did you call him yet? 330 00:17:42,657 --> 00:17:43,907 I was supposed to call him this morning. 331 00:17:43,907 --> 00:17:44,957 I got sidetracked. 332 00:17:45,467 --> 00:17:46,227 Please call him. 333 00:17:46,237 --> 00:17:47,597 I'm going to call him tomorrow morning. 334 00:17:47,867 --> 00:17:51,207 Yeah, now that we have these questions too, to find out about your property. 335 00:17:51,207 --> 00:17:52,987 So we'll add those to the list of questions. 336 00:17:53,287 --> 00:17:54,637 Please let's do it. 337 00:17:54,897 --> 00:17:58,557 They want to sell, we want to buy if the price is right. 338 00:17:59,017 --> 00:18:04,887 And if it makes sense, so I feel very see, I've never bought in Huntsville, 339 00:18:05,197 --> 00:18:07,417 but one of my student, very nice. 340 00:18:07,437 --> 00:18:12,077 My very good friend Robert Pereira is in Huntsville. 341 00:18:13,097 --> 00:18:20,057 And he's doing, he's making hay, big time hay in Huntsville, Georgia and Huntsville. 342 00:18:20,097 --> 00:18:21,647 Those are the two places he's in. 343 00:18:22,097 --> 00:18:26,757 And he just I'll send him, he wouldn't mind sharing his info a little bit. 344 00:18:26,797 --> 00:18:27,467 Let's see. 345 00:18:27,557 --> 00:18:29,867 Arc is his company's name. 346 00:18:30,662 --> 00:18:32,342 And right there. 347 00:18:32,392 --> 00:18:33,172 There we go. 348 00:18:33,492 --> 00:18:34,802 Arc Robert. 349 00:18:34,842 --> 00:18:35,362 Okay. 350 00:18:35,442 --> 00:18:35,882 Yeah. 351 00:18:36,402 --> 00:18:37,302 But please go ahead. 352 00:18:37,802 --> 00:18:41,762 Vinny, this city is growing over in the west side of town. 353 00:18:42,392 --> 00:18:45,802 Enormous growth, such that it's straining Hey, Ricardo. 354 00:18:45,822 --> 00:18:46,792 Where are you, man? 355 00:18:46,802 --> 00:18:48,512 You've been missing the class. 356 00:18:52,602 --> 00:18:53,682 It's the same link. 357 00:18:53,712 --> 00:18:54,642 Vinny's Zoom. 358 00:18:54,792 --> 00:18:54,912 Ha. 359 00:18:56,222 --> 00:18:57,182 Vinny's Zoom. 360 00:18:57,402 --> 00:18:58,932 I'll just send it to you again. 361 00:18:59,022 --> 00:19:00,072 It's the same Zoom. 362 00:19:00,457 --> 00:19:01,697 You got in Saurabh? 363 00:19:02,107 --> 00:19:02,267 Yeah. 364 00:19:02,277 --> 00:19:03,127 Everybody got in. 365 00:19:03,217 --> 00:19:03,307 Yep. 366 00:19:03,377 --> 00:19:05,087 I'll just send it to you again. 367 00:19:05,137 --> 00:19:05,867 Let's see here. 368 00:19:05,907 --> 00:19:07,707 I don't VZ. 369 00:19:08,177 --> 00:19:08,727 There we go. 370 00:19:08,757 --> 00:19:09,127 Okay. 371 00:19:09,127 --> 00:19:10,347 I was wondering about that. 372 00:19:10,847 --> 00:19:12,977 I said Ricardo was very excited. 373 00:19:12,977 --> 00:19:13,937 And what happened? 374 00:19:15,227 --> 00:19:15,627 Okay. 375 00:19:15,697 --> 00:19:16,037 Okay. 376 00:19:16,447 --> 00:19:17,287 Let's go for it. 377 00:19:17,417 --> 00:19:22,457 No, you were, see, the thing is we need to ask so many questions so that, 378 00:19:22,587 --> 00:19:25,227 the, not to really bog down the broker. 379 00:19:25,587 --> 00:19:26,937 But he wants to sell. 380 00:19:26,947 --> 00:19:29,977 We want to buy, we have very valid questions. 381 00:19:30,457 --> 00:19:33,087 How did it get to be 50 percent occupancy? 382 00:19:33,357 --> 00:19:37,447 What happened, to this asset, give us nitty gritty because we 383 00:19:37,447 --> 00:19:40,347 don't want to waste your time on our time, feel like that. 384 00:19:40,597 --> 00:19:41,077 Franco. 385 00:19:42,492 --> 00:19:45,242 And say that, you're representing a group of investors. 386 00:19:45,442 --> 00:19:48,222 You are vice president of PNC bank, whatever. 387 00:19:48,272 --> 00:19:53,472 You show your strengths, because the brokers will give you back answers. 388 00:19:53,757 --> 00:20:00,237 Depending on how you portray yourself, if you're meek and this and that, I'm just 389 00:20:00,237 --> 00:20:05,177 calling this no, hey, we analyze the deal, we met together, we are very interested 390 00:20:05,177 --> 00:20:08,907 in this area, we know some of the people who are really doing good in Huntsville, 391 00:20:09,137 --> 00:20:15,507 so we want to find out what's the real color on this, okay, yeah, no, I have no 392 00:20:15,507 --> 00:20:19,067 problem doing that, but getting all this information today will be very helpful. 393 00:20:19,437 --> 00:20:20,007 Excellent. 394 00:20:20,097 --> 00:20:20,727 Excellent. 395 00:20:21,137 --> 00:20:22,847 So that would be fantastic. 396 00:20:22,847 --> 00:20:23,687 Fantastic. 397 00:20:24,377 --> 00:20:28,307 So what Vinny, the the, , Vinny, the city's growing about one to 398 00:20:28,307 --> 00:20:30,977 2% each year since about 2020. 399 00:20:31,627 --> 00:20:35,792 Uhhuh, , Uhhuh, and actually what's happening is it's growing 400 00:20:35,822 --> 00:20:40,142 so fast in certain districts of the city that they're fire and police. 401 00:20:40,847 --> 00:20:42,477 are getting overwhelmed. 402 00:20:42,747 --> 00:20:44,197 Ah, okay. 403 00:20:44,217 --> 00:20:45,817 There's a busting at the seam. 404 00:20:46,157 --> 00:20:49,477 I call it they're bursting at the seams, so there's so 405 00:20:49,477 --> 00:20:51,527 many population is coming in. 406 00:20:52,177 --> 00:20:52,907 Wow. 407 00:20:52,917 --> 00:20:53,547 Wow. 408 00:20:53,957 --> 00:20:54,337 Yeah. 409 00:20:54,407 --> 00:20:55,337 Which is a good thing. 410 00:20:55,337 --> 00:20:56,567 Yes. 411 00:20:56,937 --> 00:20:57,457 Yes. 412 00:20:58,207 --> 00:21:01,827 Which is a good thing, actually, you have Veloster there, you have 413 00:21:01,847 --> 00:21:07,767 Toyota there, you have Polaris, you have GE, you have NASA there. 414 00:21:10,177 --> 00:21:10,767 Awesome. 415 00:21:10,837 --> 00:21:11,387 Awesome. 416 00:21:11,467 --> 00:21:13,027 No, that's fantastic. 417 00:21:13,027 --> 00:21:13,727 Fantastic. 418 00:21:14,027 --> 00:21:18,397 What you're saying is what we looked at over here, this Huntsville deal. 419 00:21:19,032 --> 00:21:21,562 You might get a lot of Florida people going out there too, right? 420 00:21:21,562 --> 00:21:23,112 After all these hurricanes, people might. 421 00:21:23,112 --> 00:21:27,232 Oh my gosh, Milton is there coming through now and elite 422 00:21:27,242 --> 00:21:29,202 just passed, it's devastated. 423 00:21:29,262 --> 00:21:33,652 That whole Tampa area and all these keys and everything. 424 00:21:34,012 --> 00:21:39,077 Thank goodness we sold our two properties there in Cape Corral and in Punta Gorda. 425 00:21:39,537 --> 00:21:40,267 Thank goodness. 426 00:21:41,547 --> 00:21:41,947 Yeah. 427 00:21:42,137 --> 00:21:43,547 I'm counting my blessings. 428 00:21:44,047 --> 00:21:44,917 Hey, Ricardo. 429 00:21:45,337 --> 00:21:46,047 How are you? 430 00:21:46,387 --> 00:21:47,147 How are you doing? 431 00:21:47,157 --> 00:21:48,477 We don't see your face. 432 00:21:49,287 --> 00:21:50,197 How are you bro? 433 00:21:51,167 --> 00:21:52,687 Yeah, there you are. 434 00:21:52,687 --> 00:21:53,577 There you are. 435 00:21:54,017 --> 00:21:54,507 Yeah. 436 00:21:54,507 --> 00:21:55,247 Join us. 437 00:21:55,247 --> 00:21:55,987 Join us. 438 00:21:56,527 --> 00:22:00,337 So this is the deal I sent to all of you and we were just 439 00:22:00,337 --> 00:22:02,477 analyzing and they met yesterday. 440 00:22:02,787 --> 00:22:07,787 Daryl and Saurabh and Franco look at the deal and so forth. 441 00:22:07,797 --> 00:22:13,677 So we discussed what to ask the broker, what questions, we need to be asking. 442 00:22:15,567 --> 00:22:17,017 So what's the fair price? 443 00:22:17,057 --> 00:22:19,437 If it's 50 percent occupied. 444 00:22:19,752 --> 00:22:26,092 Where is my detailed underwriting where you go with the 50% or you could even 445 00:22:26,102 --> 00:22:27,812 do it in the quick calculator too. 446 00:22:28,082 --> 00:22:28,212 Yeah. 447 00:22:28,322 --> 00:22:28,852 Same thing. 448 00:22:29,192 --> 00:22:29,712 I did it. 449 00:22:29,782 --> 00:22:31,662 And basically it's like 700k. 450 00:22:34,752 --> 00:22:35,892 See, look at that. 451 00:22:36,092 --> 00:22:38,762 And they want how much they want 2. 452 00:22:38,942 --> 00:22:39,142 4. 453 00:22:40,212 --> 00:22:43,337 They want three times more, three times more. 454 00:22:43,987 --> 00:22:48,187 See, that's the beauty of coming in a mastermind that you don't 455 00:22:48,227 --> 00:22:50,197 overpay for these properties. 456 00:22:50,247 --> 00:22:51,697 They, it's like a bride. 457 00:22:52,157 --> 00:22:58,267 They try to give you operating memorandum, so snazzy, everything pictures and, 458 00:22:58,267 --> 00:23:03,107 naive buyers investors will just look through it and don't even know. 459 00:23:03,622 --> 00:23:07,822 That's, Hey, it's worth so less than what they're asking. 460 00:23:08,112 --> 00:23:15,822 So anyway, So I did change the, once the property is completely rented out at 800 461 00:23:16,762 --> 00:23:19,532 unit, that's when we're getting at that 2. 462 00:23:19,532 --> 00:23:24,582 7 number, but without that, if we just look at. 463 00:23:25,152 --> 00:23:27,422 The current occupancy, which is 19 units. 464 00:23:27,742 --> 00:23:28,162 Yep. 465 00:23:29,852 --> 00:23:30,232 730. 466 00:23:31,032 --> 00:23:37,132 Oh there is a something to be said that, maybe a million might be good 467 00:23:37,132 --> 00:23:42,282 for them to get, because, Hey, your property is not, it's not renting, 468 00:23:42,372 --> 00:23:47,842 I'm the thing is, Stellar wants to you to pay high price as if you have 469 00:23:47,882 --> 00:23:49,762 put your business plan into action. 470 00:23:50,007 --> 00:23:55,527 But you as a shrewd buyer want to say, Hey, it's not worth it. 471 00:23:55,647 --> 00:24:03,137 The appraisal from my bank is not going to give me even the loan on this one. 472 00:24:03,517 --> 00:24:03,697 Yeah. 473 00:24:04,467 --> 00:24:09,947 When there's this, when there's this much vacancy, wouldn't it behoove the 474 00:24:09,957 --> 00:24:13,247 seller or the broker to let us know why? 475 00:24:13,847 --> 00:24:14,857 There's so much. 476 00:24:14,917 --> 00:24:15,237 Totally. 477 00:24:15,287 --> 00:24:17,687 That was my first question I asked you guys. 478 00:24:18,077 --> 00:24:23,627 Be the biggest detective to find out how did this property get to 50%. 479 00:24:24,977 --> 00:24:25,517 We want to know. 480 00:24:26,342 --> 00:24:31,772 As new buyers, we want to know what went wrong and let's what if there's 481 00:24:31,772 --> 00:24:35,572 a reasonable, so what if there's a reasonable explanation like, we rehabbed 482 00:24:35,572 --> 00:24:40,272 or we did, let's say there's something very reasonable on why there's 50 percent 483 00:24:40,272 --> 00:24:42,602 vacancy and it makes a lot of sense. 484 00:24:42,612 --> 00:24:43,562 Okay, good. 485 00:24:43,562 --> 00:24:46,322 How do you then restructure or offer? 486 00:24:46,332 --> 00:24:46,922 What would you do? 487 00:24:47,447 --> 00:24:48,087 Wonderful. 488 00:24:48,307 --> 00:24:54,827 Then next thing you want to do is call a property management company locally in 489 00:24:54,837 --> 00:25:01,987 that zip code to find out if they manage in this range, 32 units, 36 units, not the 490 00:25:02,017 --> 00:25:04,717 thousands of units like I do now, right? 491 00:25:04,957 --> 00:25:08,237 So you want to talk to them, get them involved. 492 00:25:08,257 --> 00:25:10,957 Hey, we are out of state owners. 493 00:25:11,307 --> 00:25:12,917 We are looking at a property. 494 00:25:13,147 --> 00:25:15,037 We want to ask your opinion. 495 00:25:15,572 --> 00:25:19,942 This again, you don't want it's already listed on this on outside, so 496 00:25:20,172 --> 00:25:24,562 it's not that it's off market deal or anything, but you can tell them the 497 00:25:24,562 --> 00:25:27,902 address property management company. 498 00:25:27,902 --> 00:25:29,952 We'll tell you a lot about the area. 499 00:25:30,622 --> 00:25:33,792 It will tell you a lot about that property itself. 500 00:25:34,072 --> 00:25:37,102 I'm telling you it's the state. 501 00:25:37,152 --> 00:25:39,492 It's a team sport. 502 00:25:39,492 --> 00:25:43,362 I call it commercial investing is not a solo game. 503 00:25:43,892 --> 00:25:48,272 It's a team sport coming into mastermind coming in here, getting 504 00:25:48,272 --> 00:25:53,282 other people involved because you want to ask everything and everything 505 00:25:54,242 --> 00:25:58,572 not pay high price, but what's your business plan into action. 506 00:25:59,022 --> 00:26:03,242 Now, by the way, I was just saying something, Hey, my lender 507 00:26:03,252 --> 00:26:04,392 is not going to give me loan. 508 00:26:04,592 --> 00:26:05,112 Guess what? 509 00:26:05,547 --> 00:26:08,057 Nobody's going to give you loan on this property. 510 00:26:08,057 --> 00:26:09,487 It's 50 percent occupied. 511 00:26:09,967 --> 00:26:15,627 Hard money lenders might give you money no, they won't. 512 00:26:15,747 --> 00:26:16,417 Not at all. 513 00:26:16,657 --> 00:26:20,837 Maybe 60, 40, they might say, Hey, LTV of 60, 40. 514 00:26:21,037 --> 00:26:23,307 We might you bring 40 percent of the money. 515 00:26:23,327 --> 00:26:28,927 That's a lot of money to be putting down, so that way it will not make sense. 516 00:26:28,927 --> 00:26:34,827 The cash and cash cannot really hold true if you're putting so much money in equity. 517 00:26:35,027 --> 00:26:36,207 What's cash and cash? 518 00:26:36,477 --> 00:26:39,307 That's total net cash at the end of the year. 519 00:26:39,672 --> 00:26:45,152 Divided by the total money that you put into it, closing costs, down 520 00:26:45,172 --> 00:26:49,182 payments, rehab money, whatever it needs to be put into it. 521 00:26:49,412 --> 00:26:53,832 So the cash and cash will be negative, maybe, because the occupancy is 50%. 522 00:26:56,432 --> 00:26:58,552 So I think, ask some questions, brother. 523 00:26:58,822 --> 00:27:03,332 And then we could come back and say, discuss it again next Wednesday. 524 00:27:03,897 --> 00:27:06,167 Because when did it got listed out? 525 00:27:06,537 --> 00:27:09,337 And we look at so they're under the water. 526 00:27:09,337 --> 00:27:14,997 Actually the thing is, if this package came out, I got it today or no couple 527 00:27:14,997 --> 00:27:16,937 of days back, I sent to you guys, right? 528 00:27:17,517 --> 00:27:21,687 So it took them about a month to put this package together. 529 00:27:22,277 --> 00:27:28,907 So seems to me that they've been talking to the seller for about two, three months. 530 00:27:29,387 --> 00:27:31,797 Hey, we need to sell this property. 531 00:27:32,157 --> 00:27:36,157 Maybe somebody I don't know what happened why they want to sell it and so forth, 532 00:27:36,197 --> 00:27:38,137 but we need to find out the real deal 533 00:27:40,517 --> 00:27:41,057 All right. 534 00:27:41,867 --> 00:27:43,607 What should we talk about next? 535 00:27:44,247 --> 00:27:45,177 So this is good. 536 00:27:45,177 --> 00:27:50,187 I'm glad you met yesterday and discussed it again, I do I'll go ahead. 537 00:27:50,207 --> 00:27:50,547 Go ahead. 538 00:27:51,317 --> 00:27:56,467 Yeah, go for it Yes, i'm winning so with that deal that is that's 50 occupied, 539 00:27:56,707 --> 00:28:01,937 and the lenders is they're not going to give you money, is it possible seller 540 00:28:01,937 --> 00:28:07,497 financing, and now and how would you go about increasing the occupancy? 541 00:28:07,947 --> 00:28:11,867 Can we buy this deal and salvage it? 542 00:28:13,662 --> 00:28:14,702 That's the key. 543 00:28:14,712 --> 00:28:15,792 That's the real key. 544 00:28:15,792 --> 00:28:18,472 Actually, today I interviewed one of my students. 545 00:28:18,522 --> 00:28:20,842 Paramod Singh is his name, from Chicago. 546 00:28:21,272 --> 00:28:22,602 And he's doing very well. 547 00:28:22,612 --> 00:28:23,722 So he came on my podcast. 548 00:28:24,392 --> 00:28:27,722 If anybody's interested, I'd love to give you the whole interview. 549 00:28:27,722 --> 00:28:29,112 I interviewed him today. 550 00:28:29,422 --> 00:28:31,062 And he's doing very well. 551 00:28:31,682 --> 00:28:37,732 He got the whole 76 units, I think near Chicago in Urbana? 552 00:28:37,807 --> 00:28:38,907 For zero money down. 553 00:28:39,297 --> 00:28:40,947 He took over the mortgage. 554 00:28:40,947 --> 00:28:41,817 That's all he did. 555 00:28:42,317 --> 00:28:43,482 This is the, yeah. 556 00:28:43,482 --> 00:28:48,177 Why was the seller selling at because he was in the, under the water. 557 00:28:48,917 --> 00:28:50,927 He was not able to pay the bills. 558 00:28:51,197 --> 00:28:53,147 The occupancy was very low. 559 00:28:53,267 --> 00:28:54,557 Just like what we are discussing. 560 00:28:54,557 --> 00:28:55,967 Ricardo right there, brother. 561 00:28:56,877 --> 00:28:58,347 As a matter of fact, you know what? 562 00:28:59,382 --> 00:29:00,672 This will be good one though. 563 00:29:01,152 --> 00:29:02,442 Maybe we could just talk. 564 00:29:03,272 --> 00:29:04,862 I can show you guys a little bit. 565 00:29:05,122 --> 00:29:05,512 Go ahead. 566 00:29:05,522 --> 00:29:06,332 Keep on talking. 567 00:29:06,332 --> 00:29:07,482 I'll open it up. 568 00:29:07,822 --> 00:29:11,982 I think I saved it in my Dropbox and we'll just watch that 569 00:29:12,012 --> 00:29:13,472 interview just a little bit. 570 00:29:13,762 --> 00:29:18,162 It will be very good for us to do that because it's all in learning 571 00:29:18,382 --> 00:29:19,912 how to put the deal together. 572 00:29:20,192 --> 00:29:26,302 He's going to buy that property in 2027 after he's stabilized it and everything. 573 00:29:26,952 --> 00:29:29,272 At the price that he locked in today. 574 00:29:31,727 --> 00:29:35,647 On a similar 3, 000, 000, 3, 000, 000. 575 00:29:35,747 --> 00:29:37,687 I think he said, no, go ahead. 576 00:29:37,697 --> 00:29:38,147 Shut up. 577 00:29:38,267 --> 00:29:38,517 Yeah. 578 00:29:38,882 --> 00:29:45,632 On a similar note, like basically I was thinking like, so I had a, 579 00:29:45,722 --> 00:29:47,842 the deal in Fargo, North Dakota. 580 00:29:47,842 --> 00:29:49,662 I think we were talking about that earlier, 581 00:29:52,242 --> 00:29:56,152 basically I gave him my numbers we talked about it. 582 00:29:56,152 --> 00:29:59,092 I got the data for September as well for September. 583 00:29:59,132 --> 00:30:02,410 They were cash flowing 0, not 0, 7. 584 00:30:02,410 --> 00:30:02,577 50. 585 00:30:02,977 --> 00:30:04,537 For all units. 586 00:30:04,767 --> 00:30:08,387 So I showed the data and I told him that, Hey, like 1. 587 00:30:08,387 --> 00:30:10,037 3 million is the price right now. 588 00:30:10,437 --> 00:30:12,127 I'm going to offer you 1. 589 00:30:12,127 --> 00:30:15,737 3 million and yes, he has a mortgage of 1. 590 00:30:15,737 --> 00:30:15,747 2. 591 00:30:15,747 --> 00:30:17,957 So I'll give you a hundred K extra right now. 592 00:30:19,047 --> 00:30:19,767 mortgage. 593 00:30:20,197 --> 00:30:24,897 But he has in his mind thought of a value, which is basically 1. 594 00:30:24,897 --> 00:30:30,127 6, because that's that he refinanced in into two years ago. 595 00:30:30,128 --> 00:30:34,177 So he already has that value in mind. 596 00:30:34,267 --> 00:30:34,777 And. 597 00:30:35,272 --> 00:30:39,282 There are different ways of valuation, valuating properties, like one is the 598 00:30:39,282 --> 00:30:43,982 net operating income that is there today, the way property right now, but 599 00:30:43,982 --> 00:30:47,462 then another is the replacement cost of the property and how much is the 600 00:30:47,472 --> 00:30:49,702 intrinsic value of the building, the land. 601 00:30:49,702 --> 00:30:49,922 Exactly. 602 00:30:50,002 --> 00:30:50,452 Sure. 603 00:30:50,532 --> 00:30:50,972 Sure. 604 00:30:51,212 --> 00:30:56,942 So the credit union that lent to him two, two years ago, they gave it to him for 1. 605 00:30:56,942 --> 00:30:59,422 6 million property valuation. 606 00:30:59,422 --> 00:31:03,692 And he's sticking to his gun that he sell it at 1. 607 00:31:03,972 --> 00:31:06,782 6 or maybe a little bit less at 1. 608 00:31:06,872 --> 00:31:07,462 55. 609 00:31:08,242 --> 00:31:12,082 So I know for that, that I'm not paying 1. 610 00:31:12,083 --> 00:31:14,727 55. 611 00:31:15,057 --> 00:31:15,587 1. 612 00:31:15,627 --> 00:31:17,387 2 and 1, 1. 613 00:31:17,388 --> 00:31:18,815 23 and 1. 614 00:31:18,815 --> 00:31:21,337 55 and the down payment right now. 615 00:31:21,707 --> 00:31:25,577 And he wants, and then we assume the mortgage. 616 00:31:25,817 --> 00:31:29,008 So I've said no to him because we're in a position of power right now, 617 00:31:29,008 --> 00:31:31,448 because he needs the winter is coming. 618 00:31:31,448 --> 00:31:35,128 He needs to, yes, before that for his side business. 619 00:31:35,668 --> 00:31:39,798 So I've said no to him, but I'm thinking, what should I say to him next? 620 00:31:39,978 --> 00:31:40,798 Should I wait? 621 00:31:41,038 --> 00:31:45,098 What's the next negotiation tactic in here? 622 00:31:45,288 --> 00:31:47,878 that's all for this episode of the investor impact. 623 00:31:47,878 --> 00:31:51,618 Stay tuned for the next episode and don't miss out on the opportunity to learn and 624 00:31:51,618 --> 00:31:53,708 grow alongside this powerful inner circle.