Latest / Earn Your Leisure / EYL #267 How to Get $100 Million in Affordable Real Estate Developments: Tax Credits, Strategies, & Funding

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EYL #267 How to Get $100 Million in Affordable Real Estate Developments: Tax Credits, Strategies, & Funding · Earn Your Leisure

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  Speaker 1: An illegal alien from Guatemala charged with raping a child
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  Speaker 2: Sponsored by the United States Department of Homeland Security Earners.
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  Speaker 3: What's going on?
• 1:01
  Speaker 4: Listen, eylu is relaunching, revamping, retooling. That's why we're creating
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  Speaker 4: a new educational experience that's more expensive.
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  Speaker 5: Shot.
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  Speaker 6: Tell what we got, Yes, twenty twenty three. We got
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  Speaker 6: a lot in still a lot playing for you guys.
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  Speaker 5: So you know that EYLU already.
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  Speaker 6: Includes monthly financial planning calls with Me, book Club calls
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  Speaker 6: Revamp will include twenty seven local chapters from across the
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  Speaker 3: The biggest just got bigger.
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  Speaker 7: Head over to eyl University dot com. That's EYL. You
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  Speaker 7: n I V E R s I T Y dot com.
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  Speaker 3: See you there.
• 1:54
  Speaker 8: I think one of the best ways is as you
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  Speaker 8: drive around in neighborhoods and you see buildings, look at
• 1:59
  Speaker 8: those signs. One of those buildings has a ton of
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  Speaker 8: signs that has every single company name on them.
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  Speaker 3: Those are the people doing the developments.
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  Speaker 8: What better place should you start than your backyard with
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  Speaker 8: folks that are doing the work right now. So start
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  Speaker 8: with looking at very practical way when you drive around,
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  Speaker 8: take a picture of the signs, look them up, find
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  Speaker 8: people on LinkedIn, whether they black women, find some commonality,
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  Speaker 8: and try to, you know, get in with them. Whether
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  Speaker 8: it be the architect, the construction company, the engineers, or
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  Speaker 8: the developer. All of them work with developers all the time.
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  Speaker 3: They know.
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  Speaker 8: Developers don't say, oh, I don't want to result to
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  Speaker 8: the architect because I don't want to do that. Architects
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  Speaker 8: build for developers. Literally, they have a whole network of them,
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  Speaker 8: so if you build a rapportable one, they can introduce
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  Speaker 8: you to their well with dat.
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  Speaker 5: All right, guys, welcome back, y l. This is very
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  Speaker 5: rare air.
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  Speaker 2: Let's start there.
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  Speaker 5: Very rare that we we well. Nowadays especially is not
• 2:55
  Speaker 5: easy to earn. Alisha has become kind of like a
• 2:58
  Speaker 5: big deal for people to get on.
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  Speaker 3: That's understatement.
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  Speaker 5: Yeah, so to get on once is an accomplishment, but
• 3:05
  Speaker 5: to get on twice is an extremely rare feet. Only
• 3:08
  Speaker 5: a handful of people have ever graced the show twice.
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  Speaker 3: A handful of people.
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  Speaker 4: I try to run off the names, but we didn't
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  Speaker 4: make it to a hand We didn't even get to
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  Speaker 4: five fingers.
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  Speaker 5: Not a lot so branding rule. We did this episode
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  Speaker 5: probably somber and a half years ago, something.
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  Speaker 4: Like that, between nineteen what's up a ninth to be exact,
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  Speaker 4: because we had did the event December ninth, and that
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  Speaker 4: was we did a triples interview day.
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  Speaker 5: We was in DC and we shot some content and
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  Speaker 5: he was one of the people that we shot and
• 3:41
  Speaker 5: at the time it went crazy. He was talking about
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  Speaker 5: real estate development. I think he might have been the
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  Speaker 5: first real estate developer that we've had on and kind
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  Speaker 5: of giving him a breakdown of real estate development, how
• 3:52
  Speaker 5: it works, how he got started, how you get paid
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  Speaker 5: as a real estate developer, affordable housing, variety of different things.
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  Speaker 5: And he since then he has done a lot of
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  Speaker 5: news construction and new development. So we talked about the
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  Speaker 5: time you had a forty five million dollar grocery store
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  Speaker 5: mixed use property twenty four thousand square foot one hundred
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  Speaker 5: and fifty units in Madison, Wisconsin, and now that's completed, right, Yes,
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  Speaker 5: And then you also are currently working on two thousand
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  Speaker 5: units in Birmingham, Alabama. Yes, with nine hundred affordable.
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  Speaker 8: No, so it's really like fifteen hundred affordable, but in
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  Speaker 8: one of the development's nine hundred and twenty is a
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  Speaker 8: part of that choice neighborhood grant that we'll talk about.
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  Speaker 5: Okay, Yeah, and then you have one hundred and forty
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  Speaker 5: two units in Milwaukee. Yes, that's over one hundred million
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  Speaker 5: dollar project.
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  Speaker 8: That one's well one hundred and forty units, but it's
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  Speaker 8: about forty two million of the Harbor District, Harbond District.
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  Speaker 5: And then you have you have a project in Houston, Texas.
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  Speaker 8: Yeah, three hundred and forty units there, that's about one
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  Speaker 8: hundred million.
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  Speaker 5: So I had those numbers with the ones we said
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  Speaker 5: before lot it's a lot so so yeah, so you
• 5:02
  Speaker 5: would looking at what walk so yeah, So I felt
• 5:06
  Speaker 5: like it would be good to have a follow up conversation,
• 5:08
  Speaker 5: said you talk about, yeah, what you got going now
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  Speaker 5: in real estate development and what you've learned over the
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  Speaker 5: last couple of years, and provide information and insults. So
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  Speaker 5: first and foremost, thank you for joining us. Appreciate it.
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  Speaker 3: Thank y'all. Man.
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  Speaker 8: Before we jump into I want to say thank y'all too.
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  Speaker 8: You know, we did this December ninety, twenty nineteen, and
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  Speaker 8: y'all were an emerging company. Everybody knew the brand, you know,
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  Speaker 8: but y'all are established now. So I appreciate y'all still respecting.
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  Speaker 3: What I have going on and inviting me.
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  Speaker 8: But I want to give you all your flowers too,
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  Speaker 8: man Like what y'all did for the culture.
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  Speaker 3: So many people come up to me.
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  Speaker 8: Regularly, Yo, you changed my life on some Hey, I
• 5:45
  Speaker 8: never got into development, I know what this was like.
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  Speaker 8: I'm thinking about investing, et cetera, et cetera, and I
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  Speaker 8: know y'all get it too, but you know, the line's
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  Speaker 8: share of that probably came from that exposure that they
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  Speaker 8: got through this interview. So appreciate the platform y'all created
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  Speaker 8: and what y'all doing for the culture.
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  Speaker 4: We appreciate that, and to this day, man, that episode
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  Speaker 4: was one of the you know, you have some episodes
• 6:05
  Speaker 4: when you're familiar with an area and so you're asking
• 6:08
  Speaker 4: questions because you want to get more knowledge, and then
• 6:10
  Speaker 4: there's some episodes where you're not really familiar, and one
• 6:13
  Speaker 4: of your was yours and it was like wow that
• 6:16
  Speaker 4: we were just blown away by it. So thank you
• 6:17
  Speaker 4: and thank you for showing up, not just for this interview,
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  Speaker 4: but every time we've called you. You've been at multiple events.
• 6:23
  Speaker 4: Sometimes we see you out and it's like, yeah, it's
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  Speaker 4: always loved. So I just want to thank you for
• 6:27
  Speaker 4: being a genuine person that you that we met in
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  Speaker 4: December of twenty nineteen, to this day, what everything you become.
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  Speaker 3: I mean it's a lot too, because I feel the
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  Speaker 3: same about y'all.
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  Speaker 5: Yeah, Lane just came off to invest Fest.
• 6:37
  Speaker 3: They did, sir, there is it's that frivolous to be updated.
• 6:41
  Speaker 5: Invest Fast. Twenty thousand people was in attendances. That was
• 6:44
  Speaker 5: a monumental feat and you definitely tore the stage down. Yes,
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  Speaker 5: the real estate development panel, So that's something that you know,
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  Speaker 5: we appreciate as well.
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  Speaker 3: Well.
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  Speaker 8: I want to make sure folks know if they haven't
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  Speaker 8: saw it, they could catch the replay.
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  Speaker 5: That's a fact.
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  Speaker 3: That's why for free.
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  Speaker 5: But that's a fact. That's a fact, all right, bet
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  Speaker 5: So let's get into it. So let's start with the
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  Speaker 5: Madison project, right. So when we first spoke you would
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  Speaker 5: you just started the project. Now it's done. So the
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  Speaker 5: grocery store aspect is something that's important for the communities
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  Speaker 5: of every community, but especially you know, Black communities and
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  Speaker 5: communities that have been disenfranchised. So you put together that
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  Speaker 5: it's a mixed use of grocery store and actually housing.
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  Speaker 5: So talk about start to finish some of the challenges
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  Speaker 5: that you faced, obstacles, and why that project is important
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  Speaker 5: and why it's important for Madison Wisconsin, which a lot
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  Speaker 5: of people don't even know. Madison, Wisconsin actually has a
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  Speaker 5: black population absolutely pretty sizable, of.
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  Speaker 3: The most disenfranchisedments in the country too.
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  Speaker 5: Yeah, so talk about that project and just kind of
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  Speaker 5: give us to lay the land on that.
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  Speaker 8: So yeah, like you said, you know, one hundred and
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  Speaker 8: fifty units above a grocery store. So you go to
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  Speaker 8: larger metropolitan cities, you'll see this combination growing, right, grocery
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  Speaker 8: store with housing above. What you don't typically see is
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  Speaker 8: affordable housing above a grocery store. It's typically market rate
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  Speaker 8: because in the majority of those areas, groceris look for
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  Speaker 8: higher income. At the end of the day, it's one
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  Speaker 8: of the lowest margin businesses that you can have out there.
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  Speaker 8: So if you're in an area of poverty and people are,
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  Speaker 8: you know, it's a higher rate of theft that decreases
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  Speaker 8: your margins. So it was a very difficult time finding
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  Speaker 8: a grocer that wanted to actually be in an area.
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  Speaker 8: I mean, I talked to all these I'll talk to
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  Speaker 8: Trader Joe's Hope, who.
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  Speaker 3: You name it.
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  Speaker 8: I talked to all of them and they're like, nah,
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  Speaker 8: we're not interested. And ironically, Kroger had just purchased a
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  Speaker 8: pick and save next door when they were shutting it
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  Speaker 8: down because it wasn't a part of their expansion in
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  Speaker 8: their footprint. They're opening new stores, but this when it like,
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  Speaker 8: now we're out. So this RFP was from the City
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  Speaker 8: of Madison then and say, hey, we need a grocery
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  Speaker 8: store and we want to do housing, so.
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  Speaker 3: I compete it. RFP is the request for a proposal.
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  Speaker 3: Good point.
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  Speaker 8: So the city put out, hey, we have three and
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  Speaker 8: a half acres worth of land. We want someone to
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  Speaker 8: come in and develop this. Someone sent it to me.
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  Speaker 8: I'm like, all right, cool, let me check it out.
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  Speaker 8: At that time, I was thinking about doing a nine
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  Speaker 8: percent tax credit deal or four percent tax credit deals,
• 9:30
  Speaker 8: two different ones. One is competitive, ones not. And the
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  Speaker 8: nine percent round based on the time and in which
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  Speaker 8: they put it out, was already passed but had to
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  Speaker 8: wait a year. What I did creatively was put it
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  Speaker 8: as a four percent deal because I had more time
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  Speaker 8: to submit that, and I actually got my application in
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  Speaker 8: and was able to deliver a year before anybody else.
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  Speaker 5: Well, talk about what does that mean? Four percent tax
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  Speaker 5: credit deal?
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  Speaker 8: So the long come out of the tax credit is
• 9:54
  Speaker 8: broken out in two different things. Nine percent and four percent.
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  Speaker 8: It's a very complex structure to be ho so won't
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  Speaker 8: even get into it heavily. But at the nine percent,
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  Speaker 8: seventy percent in theory of all your total development costs
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  Speaker 8: will be funded by that, and then on the four percent,
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  Speaker 8: thirty percent of your total development costs will be funded
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  Speaker 8: by that. So if you think about, Okay, cool, I
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  Speaker 8: have a deal that's one hundred million, I'm getting seventy
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  Speaker 8: million from this tax credit. I'm getting thirty million from
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  Speaker 8: this tax credit. Just to keep it simple. So most
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  Speaker 8: we're looking at it from the nine percent perspective because
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  Speaker 8: you get more credits. But I was thinking about how
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  Speaker 8: do we creatively do it quicker with the four percent,
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  Speaker 8: and Wisconsin had just introduced a state credit that mirrored
• 10:36
  Speaker 8: the nine percent. All this extra stuff, but I ended
• 10:38
  Speaker 8: up creating value by saying, Okay, let me financially engineer
• 10:43
  Speaker 8: this thing so I can outpace all of my competitors.
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  Speaker 8: There were four I think primary applicants for four finalists
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  Speaker 8: at the time when we responded, I was one of
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  Speaker 8: the four, and then I went to a ton of
• 10:54
  Speaker 8: community meetings. I mean, I'm out there, getting there at
• 10:57
  Speaker 8: six seven pm, leaving at midnight, literally standing there waiting
• 11:02
  Speaker 8: till the last single person left, answering every single question.
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  Speaker 8: So I was like building with the community as much
• 11:07
  Speaker 8: as I could, and ended up getting awarded in December
• 11:12
  Speaker 8: of twenty nineteen, ironically, right around the time we were
• 11:17
  Speaker 8: talking about it. No, it must have been like September
• 11:20
  Speaker 8: Q three, Q four, twenty nineteen is when I got
• 11:23
  Speaker 8: it awarded from the city.
• 11:24
  Speaker 3: But that was just the first step.
• 11:26
  Speaker 8: Once you get the land awarded, you got to go
• 11:28
  Speaker 8: and actually like put the financial plan together.
• 11:30
  Speaker 3: So then I'm applying for tax credits. So when we
• 11:32
  Speaker 3: did our interview.
• 11:34
  Speaker 8: I got the land under contract, but I had to
• 11:36
  Speaker 8: go out and apply for the tax credits. So I
• 11:38
  Speaker 8: applied for that, ended up getting awarded. Found a grocerer.
• 11:42
  Speaker 8: It didn't work out with that grocery. It was a
• 11:43
  Speaker 8: black and Latino led grocery store. So you had an
• 11:46
  Speaker 8: all black, you had a black lead development team. I
• 11:49
  Speaker 8: partnered with a local nonprofit and then we had a
• 11:51
  Speaker 8: black and Latina grocery store, and we had so much flack.
• 11:55
  Speaker 8: I mean, government everybody. Now the government was on my side. Luckily,
• 12:01
  Speaker 8: the mayor wanted to see the black developer, you know,
• 12:03
  Speaker 8: move forward. It was a community. Yeah, some parts of
• 12:06
  Speaker 8: the community. So this one, let's put let's say it's
• 12:08
  Speaker 8: a circle, right, sixty percent of this circle is black community,
• 12:12
  Speaker 8: you know, twenty percent is long. And there was a
• 12:16
  Speaker 8: white community there. Yeah, like Asian. Yeah, they were like,
• 12:21
  Speaker 8: it's among Asian community over there as well.
• 12:24
  Speaker 5: There's Mongolia means I don't know where what's mong me
• 12:29
  Speaker 5: I never heard that before. That's a that's a good
• 12:31
  Speaker 5: like an acronym.
• 12:32
  Speaker 3: No, it's like ethnicity, you know, it's kind of like
• 12:38
  Speaker 3: go on to Google search on this one. Let's do that.
• 12:42
  Speaker 3: Let's not get us bend. Yeah in fact, but but yes,
• 12:47
  Speaker 3: it's an Asian community. It was.
• 12:48
  Speaker 8: It's black, it's melt black, Asian, Hispanic, et cetera. But
• 12:51
  Speaker 8: this small kind of white community was very supportive and
• 12:56
  Speaker 8: it was more affluent than some of the other neighborhoods around.
• 12:59
  Speaker 3: It was very supportive.
• 13:00
  Speaker 8: But there was a couple of bad apples that were
• 13:02
  Speaker 8: like intentionally trying to pull it down because they didn't
• 13:04
  Speaker 8: want me to succeed, which, ironically, I won't say the
• 13:08
  Speaker 8: names to some of the organizations, but leading black led
• 13:12
  Speaker 8: organizations in this country in the world were fighting against
• 13:16
  Speaker 8: me doing this development. Why this is it was the
• 13:19
  Speaker 8: most irrational things.
• 13:20
  Speaker 5: What was their reason that they were saying.
• 13:22
  Speaker 8: They just wanted another developer, the majority developer that was local.
• 13:28
  Speaker 3: They thought he was a better fit to be the developer.
• 13:31
  Speaker 5: Was he black?
• 13:32
  Speaker 3: Of course not.
• 13:33
  Speaker 4: That's interesting. The race part is one thing. Yeah, but
• 13:37
  Speaker 4: even for us, like even now, dealing with like real
• 13:40
  Speaker 4: estate and dealing with developers, that that's an issue. But
• 13:44
  Speaker 4: dealing with municipalities is an issue too. You said the
• 13:46
  Speaker 4: mayor was on your side. Yes, talk about that process,
• 13:49
  Speaker 4: because I'm sure there was challenges dealing with municipalities trying
• 13:52
  Speaker 4: to get this development all.
• 13:53
  Speaker 8: Yeah, it was typically there is, but this one actually
• 13:56
  Speaker 8: not many. They were fully on my side because the
• 13:59
  Speaker 8: r if he came from them. They had a vested
• 14:02
  Speaker 8: interest in moving us forward too. They wanted to see
• 14:04
  Speaker 8: the grocery store. They appreciated that it was a black
• 14:07
  Speaker 8: developer coming into a city that was black and had
• 14:11
  Speaker 8: a tremendous amount of black issues, and they wanted to
• 14:13
  Speaker 8: see me grow and prosper.
• 14:16
  Speaker 3: I found a local.
• 14:17
  Speaker 8: Nonprofit that I could partner with because they knew the
• 14:20
  Speaker 8: local lay of the land a little better. They knew
• 14:22
  Speaker 8: where the pockets and money were in Dane County and
• 14:25
  Speaker 8: the City of Madison, etc. So the municipalities were actually great.
• 14:30
  Speaker 8: It was not an issue with them at all. They
• 14:32
  Speaker 8: were fully to this day I have a call today
• 14:34
  Speaker 8: with them about the grocery store. And to this day,
• 14:37
  Speaker 8: Dan Ropes, who I met with, he's been phenomenal across
• 14:40
  Speaker 8: the board.
• 14:40
  Speaker 3: He's staff leveled at the city.
• 14:43
  Speaker 4: When you're fighting the power well the people that were
• 14:45
  Speaker 4: trying to stop this and derail the development, how are
• 14:50
  Speaker 4: you facing this?
• 14:50
  Speaker 3: Why do you meet this challenge?
• 14:52
  Speaker 8: I think just really foreman relationships and allies, having the
• 14:57
  Speaker 8: common council with you. So every there's a mayor and
• 15:01
  Speaker 8: then there's a council that governs like all of the
• 15:04
  Speaker 8: decisions that are made. So in this development there was one.
• 15:09
  Speaker 8: I was in one's district, but across the street was
• 15:11
  Speaker 8: another district. So those two council people in particular were
• 15:15
  Speaker 8: very influential in like keeping their constituents at Bay. Again,
• 15:20
  Speaker 8: there were a couple bad apples that was like, nah,
• 15:22
  Speaker 8: we just don't want him to do it for no reason.
• 15:25
  Speaker 8: I mean, they just thought that I couldn't do it.
• 15:27
  Speaker 8: To be honest, I was it. I did well, I
• 15:29
  Speaker 8: could do it clearly is done. So it got done.
• 15:31
  Speaker 8: But other than me being a young black developer, they
• 15:34
  Speaker 8: just didn't want that. But having those allies in the
• 15:37
  Speaker 8: city definitely helped me overcome some of those challenges.
• 15:40
  Speaker 5: So, okay, so you get the political support, but now
• 15:44
  Speaker 5: you have to actually and it didn't have to be
• 15:45
  Speaker 5: a grocery store. That was just your idea.
• 15:47
  Speaker 8: No, they wanted it so part of them. Yeah, that's
• 15:49
  Speaker 8: a good point. The request for proposal that they put out,
• 15:52
  Speaker 8: they got these three and a half acres, we want
• 15:55
  Speaker 8: a grocery store at the bottom and something above. So
• 15:58
  Speaker 8: it didn't have to be housing. It didn't have to
• 15:59
  Speaker 8: be wordable housing. That was your idea, that was my idea.
• 16:02
  Speaker 5: So all right, so how do you so once you
• 16:06
  Speaker 5: get past the hurdles and you actually get the RFB, Yeah,
• 16:09
  Speaker 5: now you actually have to put the plan together. Yes,
• 16:12
  Speaker 5: So you have to get the funding, yes, and you
• 16:15
  Speaker 5: have to get the grocery store yes, correct, So how
• 16:18
  Speaker 5: do you get the funding and how do you get
• 16:19
  Speaker 5: the grocery store?
• 16:20
  Speaker 8: So at the time of the submission with the RFP,
• 16:22
  Speaker 8: you have to have an idea of what that plan
• 16:24
  Speaker 8: is and Honestly, when you give it to them, it's
• 16:26
  Speaker 8: got to be close enough to pass the smell test.
• 16:28
  Speaker 8: But whatever you submit then is not really how it's
• 16:31
  Speaker 8: going to end up. Like the articles. At that time,
• 16:34
  Speaker 8: thirty one year old developer, I'm thirty four, now be
• 16:36
  Speaker 8: thirty five. In a couple of days, thirty one year
• 16:38
  Speaker 8: old developer is developing a forty one million dollar project.
• 16:41
  Speaker 8: That project ended up being over forty five million, So
• 16:44
  Speaker 8: that's a four million dollar delta. You know, that's a
• 16:47
  Speaker 8: ten percent increase in construction costs or whatever, and you
• 16:50
  Speaker 8: got to find financing for it. So based on all
• 16:53
  Speaker 8: of the rents that come in, you can figure out
• 16:56
  Speaker 8: what the value that property is. The bank will give
• 16:58
  Speaker 8: you a loan based upon the value, so they say, hey,
• 17:02
  Speaker 8: we'll go since it's affordable, eighty five percent loan to value.
• 17:07
  Speaker 8: Right now, you have to find a fifteen percent delta
• 17:10
  Speaker 8: between that kind of loan of value and what the
• 17:13
  Speaker 8: rest is.
• 17:14
  Speaker 3: But the challenge with affordable housing I mentioned.
• 17:16
  Speaker 8: On the previous episode is the value of that property
• 17:19
  Speaker 8: is less than the cost of construction. So the value
• 17:22
  Speaker 8: may only be fifteen million, even though it cost forty
• 17:26
  Speaker 8: five to bill because.
• 17:27
  Speaker 3: You're restricting the rents.
• 17:30
  Speaker 8: So now, okay, cool, I got let's just call it
• 17:33
  Speaker 8: twelve million of tax credit. It was probably closer to
• 17:36
  Speaker 8: like twenty but let's just say twenty million in tax credits.
• 17:38
  Speaker 3: Forty five million total.
• 17:41
  Speaker 8: Well, the loan might have only been fifteen, so ten
• 17:44
  Speaker 8: million dollar loan, forty five million dollar deal. You add
• 17:47
  Speaker 8: about twenty so twenty seven million in tax credits, So
• 17:52
  Speaker 8: now I have thirty five. We condoled out the grocery store.
• 17:56
  Speaker 8: We did not put it together. It's two different buildings.
• 17:59
  Speaker 8: On paper, it's the same structure, but it's two different entities.
• 18:02
  Speaker 8: So the grocery store fortunately was purchased by the city.
• 18:06
  Speaker 8: The City of Madison bought the grocery store back and
• 18:08
  Speaker 8: they're now leasing the grocery space. I don't have that
• 18:12
  Speaker 8: risk anymore. It's a lot of value there for me
• 18:14
  Speaker 8: being a developer, because if I was leasing that out
• 18:16
  Speaker 8: and the grocery store failed, I'm still on the hook
• 18:19
  Speaker 8: for that loan, as opposed to the city who used
• 18:23
  Speaker 8: their funding dollars. They don't have a loan. They just
• 18:27
  Speaker 8: can lease it out and make sure that that.
• 18:29
  Speaker 3: Grocery store is successful.
• 18:30
  Speaker 8: So we were paid four point six, So that was
• 18:33
  Speaker 8: another let's just call it five. So you know you
• 18:35
  Speaker 8: got ten plus to twenty from the tax credit, plus
• 18:37
  Speaker 8: another five here thirty five or so. Now I need
• 18:41
  Speaker 8: to find ten million more dollars to fill this gap.
• 18:44
  Speaker 8: The city of Madison ended up giving me a million
• 18:47
  Speaker 8: and a half for the affordable housing piece. The city
• 18:51
  Speaker 8: of Dane County gave me a little less than two million.
• 18:56
  Speaker 8: We applied for a federal home loan bank that had
• 18:58
  Speaker 8: this affordable housing program.
• 18:59
  Speaker 3: We applied for that.
• 19:00
  Speaker 8: We received nine hundred thousand I think from them as well.
• 19:04
  Speaker 8: So you just go and find, like all of these
• 19:07
  Speaker 8: places to plug the gap, and then once you get
• 19:10
  Speaker 8: it to a point where it's close enough, you defer
• 19:13
  Speaker 8: if my developer fee. My developer fee on that was
• 19:16
  Speaker 8: five million, but you have to defer at least half.
• 19:21
  Speaker 8: We talk about why later, but that two and a half.
• 19:24
  Speaker 8: Let's say I have a million dollar overrun. Now I
• 19:26
  Speaker 8: gotta defer three and a.
• 19:27
  Speaker 3: Half instead of two and a half.
• 19:29
  Speaker 8: So you just find enough sources so you can make
• 19:31
  Speaker 8: your fee and then it cash flows.
• 19:33
  Speaker 3: But that's essentially what it is.
• 19:35
  Speaker 8: You just go out and go to different cities, give
• 19:37
  Speaker 8: different counties and find different funding sources based upon whatever
• 19:41
  Speaker 8: program you have, and affordability typically has some.
• 19:44
  Speaker 3: Pockets and money out there.
• 19:46
  Speaker 4: So the affordable housing piece, you didn't have to do that,
• 19:48
  Speaker 4: like you said, but I know it's something that's.
• 19:50
  Speaker 3: Personally it was encouraged. But yeah, it's definitely persased to.
• 19:53
  Speaker 4: So talk about that, right because you could have done
• 19:54
  Speaker 4: commercial real estate, You're i mean super intelligent, you could
• 19:57
  Speaker 4: have done, but you're doing more community real estate. So
• 20:00
  Speaker 4: talk about why it's so personal to you and why
• 20:02
  Speaker 4: you continue to go down that path.
• 20:04
  Speaker 8: One, I mean for that deal in particular, some of
• 20:08
  Speaker 8: the other proposal student housing, because it's right about University Wisconsin.
• 20:11
  Speaker 8: You know that's a huge university, forty plus thousand people.
• 20:14
  Speaker 8: You can make a lot more money doing that. But
• 20:16
  Speaker 8: for me, it's like my first deals were in my backyard,
• 20:20
  Speaker 8: iss how I started. I'm like, yo, I want to
• 20:22
  Speaker 8: develop in this area at its face and gentrification and
• 20:26
  Speaker 8: the fact that I started in community development, I'm gonna
• 20:28
  Speaker 8: never let that go. So I work really closely now
• 20:31
  Speaker 8: with this guy, Egbert Perry.
• 20:33
  Speaker 3: He's a genius.
• 20:34
  Speaker 8: He was the former board chair Fannie May Like coming
• 20:37
  Speaker 8: out the recession, he's on the border pen just a
• 20:41
  Speaker 8: dope dope guy and developer, And one of the things
• 20:44
  Speaker 8: he enlightened me on was there's a huge difference between
• 20:46
  Speaker 8: community development and commercial real estate. Right, So commercial real
• 20:50
  Speaker 8: estate is let's just call it capital peece for profit
• 20:54
  Speaker 8: and a small and maybe no informasion. You go, you
• 20:58
  Speaker 8: make the money. It is what it is is transactional.
• 21:01
  Speaker 8: Community development, on the other hand, is a very large
• 21:03
  Speaker 8: information and it might be a small piece for profit.
• 21:07
  Speaker 8: So when I was starting off, everything I did was
• 21:09
  Speaker 8: community development. When we spoke last time, everything I was
• 21:11
  Speaker 8: doing was community development. But now I'm transitioning into commercial
• 21:15
  Speaker 8: real estate because although I am passionate about the community
• 21:18
  Speaker 8: development piece, it's difficult to build your entire business around that.
• 21:22
  Speaker 8: So you have to have the balance, yah know, diversification
• 21:25
  Speaker 8: right at the end of the day. So now I'm
• 21:26
  Speaker 8: getting into more market race stuff, whether it be studios
• 21:29
  Speaker 8: that I'm developing or market rate housing, et cetera. I'm
• 21:32
  Speaker 8: doing both, but really what I'm more so focused on
• 21:36
  Speaker 8: is master plans where I can like commingle both in
• 21:39
  Speaker 8: the same space. So the stuff that we're doing in
• 21:42
  Speaker 8: Birmingham is a prime example of that.
• 21:44
  Speaker 5: So like for people, you know, people always have criticisms,
• 21:50
  Speaker 5: so they'll say, like Alisia, like you're only interviewing rappers, now,
• 21:54
  Speaker 5: like what about like did he he's talking about liquor.
• 21:57
  Speaker 5: That's not something that we need. We need more always
• 21:59
  Speaker 5: gros store itself, follow you, follow you, folks. This is
• 22:05
  Speaker 5: something that actually is extremely important. From the grocery store
• 22:10
  Speaker 5: aspect and the housing aspect is probably the two most
• 22:13
  Speaker 5: essential things in life, actually food and shelter. So this
• 22:17
  Speaker 5: is a model that is actually very interesting to have
• 22:22
  Speaker 5: a grocery store and then affordable housing on top of
• 22:25
  Speaker 5: a grocery store. Do you think that this is something
• 22:28
  Speaker 5: that can be duplicated and if so, like for other
• 22:31
  Speaker 5: people that might be interested, like how what's the blueprint
• 22:36
  Speaker 5: for this model in disenfranchised neighborhoods moving forward? Because, like
• 22:41
  Speaker 5: I said, that actually is something that encompasses a variety
• 22:44
  Speaker 5: of different things. You know, we talked about food deserts. Yes,
• 22:47
  Speaker 5: so access to food is extremely important and access to
• 22:52
  Speaker 5: have somewhere to live is extremely important. So you can
• 22:54
  Speaker 5: if you can knock out two birds of one stone,
• 22:57
  Speaker 5: that's kind of an amazing accomplishment.
• 23:00
  Speaker 8: Yeah, So the great question by the way I think
• 23:02
  Speaker 8: for that there is a model for sure. I think
• 23:05
  Speaker 8: you've seen it a little bit, but we should see
• 23:07
  Speaker 8: more of it in the future. For anyone looking to
• 23:10
  Speaker 8: do it, I think where you start is really understanding
• 23:13
  Speaker 8: development first, because if you don't get that, if the
• 23:16
  Speaker 8: numbers don't work, we're just talking like this isn't charity.
• 23:19
  Speaker 8: It's business at the end of the day, and big,
• 23:21
  Speaker 8: big business, like even community development is big, big business.
• 23:24
  Speaker 3: We're talking hundreds of millions. Just in my portfolio.
• 23:27
  Speaker 8: There's billions of dollars going out monthly to these type
• 23:32
  Speaker 8: of deals. That's not Hey, I want to do this
• 23:35
  Speaker 8: type stuff. So to answer that, I think one understanding
• 23:38
  Speaker 8: development and really community development. One of the unique things
• 23:43
  Speaker 8: from a macroeconomic perspective that I did in Madison was
• 23:46
  Speaker 8: that particular neighborhood is in an area that has like
• 23:50
  Speaker 8: healthy connectivity around it. So yeah, the food desert may
• 23:54
  Speaker 8: be leaving, but there are other things there that this
• 23:59
  Speaker 8: development being affordable is going to enhance some of those
• 24:03
  Speaker 8: other things. The urban legomatics just put up a new building.
• 24:06
  Speaker 8: There's a tremendous amount of new development nearby. So my
• 24:10
  Speaker 8: recommendation would be find an area that is, yes, in
• 24:14
  Speaker 8: the food desert, but the nicest area within that. Don't
• 24:18
  Speaker 8: go to the worst area in the area like that
• 24:22
  Speaker 8: community and say I want to do that here. It's
• 24:25
  Speaker 8: probably not going to work. From a numbers perspective, find
• 24:29
  Speaker 8: something on the fringes. If there's let's say a two
• 24:31
  Speaker 8: mile radius that you're looking at, what is the best
• 24:34
  Speaker 8: area within this two mile radius that you could still
• 24:36
  Speaker 8: feel like connected to. Yeah, I'm doing this in my community,
• 24:39
  Speaker 8: but it's closer to whatever catalytic development is around here.
• 24:43
  Speaker 8: You want to always align yourself with something else that's
• 24:46
  Speaker 8: going on. You don't want to build in like I'm
• 24:49
  Speaker 8: not saying you don't want to, but you don't want
• 24:51
  Speaker 8: to build. From a business owner perspective, I don't want
• 24:56
  Speaker 8: to own something that is retail specifically in in an
• 25:00
  Speaker 8: area that has no healthy connectivity around it. Start there
• 25:05
  Speaker 8: and then move into those areas. So it's kind of
• 25:08
  Speaker 8: like the reverse of gentrification almost right. It's like, how
• 25:11
  Speaker 8: do we go align with that stuff and then continuously
• 25:15
  Speaker 8: like spread it to the other parts of the community.
• 25:18
  Speaker 8: Gentrification isn't bad. Displacement is bad. Those are two different things.
• 25:23
  Speaker 8: If we can build and develop in our communities and
• 25:26
  Speaker 8: not displace the people within it. It's beauty. So that's
• 25:29
  Speaker 8: how you do it. You put the healthy you look
• 25:32
  Speaker 8: for what's healthy in that area of a food desert,
• 25:35
  Speaker 8: and put a plan in that area, and then it'll
• 25:39
  Speaker 8: start to expand down to the other areas that need
• 25:41
  Speaker 8: it the most.
• 25:41
  Speaker 4: How much I mean, you have the proof of concept, right,
• 25:44
  Speaker 4: You've done this. So when you're doing this in Madison
• 25:46
  Speaker 4: before you get to the Harbor district, are you showing
• 25:49
  Speaker 4: this the scale I can do this? And now is
• 25:51
  Speaker 4: it making that process easier for you?
• 25:53
  Speaker 3: Number one? And number two?
• 25:55
  Speaker 4: How many developments are you taking on at a time
• 25:57
  Speaker 4: before it's like maybe the can we handle this much workflow?
• 26:00
  Speaker 3: Yeah, that's a great question too. So absolutely.
• 26:03
  Speaker 8: I think in Wisconsin in particular, I'm one of like
• 26:07
  Speaker 8: I'm one of the biggest developers in the state, you know,
• 26:08
  Speaker 8: regardless of race, color, age, any of that. So when
• 26:12
  Speaker 8: I pull up they see my resume. Now, that deal
• 26:15
  Speaker 8: we just talked about with the grocery serve, that was
• 26:16
  Speaker 8: the largest development in the state from a tax credit
• 26:19
  Speaker 8: perspective that year. This Harvard district one that I just
• 26:21
  Speaker 8: got in twenty twenty three, that's the largest one in
• 26:23
  Speaker 8: the state that was funded. So like, I now have
• 26:27
  Speaker 8: the track record where it's like now I'm standing on
• 26:28
  Speaker 8: my own and they look at me as if I'm
• 26:31
  Speaker 8: one of the historically you know, white developers, right, but
• 26:36
  Speaker 8: I'm black and I'm coming with energy and mission and
• 26:39
  Speaker 8: like community with me. So I think having that entire
• 26:42
  Speaker 8: story helps. What also helps is Milwaukee has changed. Man
• 26:46
  Speaker 8: Historically has been the worst place for black people. But
• 26:48
  Speaker 8: the Mayor's now black, the head of the county's black.
• 26:51
  Speaker 8: The head of the Weeda Economic Development in the whole
• 26:53
  Speaker 8: state of Wisconsin that was appointed by the governor's black.
• 26:56
  Speaker 3: The pretty much all the.
• 26:59
  Speaker 8: Positions, the power of the head of that you know DCD,
• 27:02
  Speaker 8: the community development arm that puts the money out is black.
• 27:05
  Speaker 8: Head of CDBG funds is black. So it's like so
• 27:09
  Speaker 8: renoissance on of us. It's like okay, cool, Like we
• 27:12
  Speaker 8: all are on that same wave. So I don't have
• 27:15
  Speaker 8: to sell it because they get it. So a lot
• 27:18
  Speaker 8: of the areas. That's why I'm in Birmingham too. It's like, Okay,
• 27:20
  Speaker 8: Madison got it, Milwaukee gets it, Birmingham gets it, the
• 27:24
  Speaker 8: land gets to DC gets it, Houston gets it. That's
• 27:27
  Speaker 8: why many these markets, I don't need to sell the
• 27:29
  Speaker 8: fact that black people should be able to do good
• 27:31
  Speaker 8: business regardless of color.
• 27:33
  Speaker 3: They get it. So the fact that I bring my resume.
• 27:36
  Speaker 8: And expertise, I could show just hey, this is what
• 27:39
  Speaker 8: I've done, this is what I do it for, and
• 27:40
  Speaker 8: this is what I'm looking to do here in that
• 27:42
  Speaker 8: respect it So you said last.
• 27:44
  Speaker 5: Time, like in order for a developer to really get
• 27:47
  Speaker 5: into the game, most time you have to like work
• 27:49
  Speaker 5: under like a JV or an established developer. Absolutely, So
• 27:53
  Speaker 5: at what point can you branch out on your own
• 27:57
  Speaker 5: and not have to ride with another person in the car?
• 28:02
  Speaker 8: From a tax credit type perspective, So community developm let's
• 28:07
  Speaker 8: break out community development and commercial real estate.
• 28:08
  Speaker 3: Commercial real estate. If you have money, you can.
• 28:11
  Speaker 8: Go tomorrow, you know, like a billionaire can literally go
• 28:16
  Speaker 8: and hire development consultants and just put up a development
• 28:19
  Speaker 8: if you wanted to. So you can do that with
• 28:21
  Speaker 8: no problem. Community development tax credit I wouldn't recommend it
• 28:25
  Speaker 8: because the returns are probably not going to be what
• 28:26
  Speaker 8: you want them to be, and they don't have the
• 28:28
  Speaker 8: same vested interest in them. You don't know what's going on.
• 28:30
  Speaker 8: You probably gonna lose your money, but you can do
• 28:32
  Speaker 8: it from a community development perspective when you're trying to
• 28:34
  Speaker 8: develop these communities and tax credit deals and affordable housing.
• 28:40
  Speaker 8: A HECK is the governing counsel of all tax credit
• 28:44
  Speaker 8: equity investors. They set a standard that was a million
• 28:48
  Speaker 8: dollars of liquidity and five million in network. So that's
• 28:52
  Speaker 8: really the starting the fence. Again, if you do what
• 28:54
  Speaker 8: to develop to be able to get the tax credit
• 28:59
  Speaker 8: equity and to allow you to be the developer.
• 29:01
  Speaker 5: You have a million dollars in liquid and five.
• 29:04
  Speaker 3: That's pretty much the standard.
• 29:06
  Speaker 8: But as deals get larger, if you're doing a fifty
• 29:08
  Speaker 8: plus million dollar deal, they gonna want to see a
• 29:10
  Speaker 8: little bit more and typically they want to see the experience.
• 29:13
  Speaker 8: But like that is, if there was a benchmark, that
• 29:15
  Speaker 8: would be it. And most of the time when we start,
• 29:17
  Speaker 8: now million dollars of cash and or a five million
• 29:20
  Speaker 8: net worth is not really there for folks. So you
• 29:22
  Speaker 8: got a JV and partner, like we explained on the
• 29:24
  Speaker 8: last episode, to be able to get to that point.
• 29:27
  Speaker 8: So now like I'm there, I'm doing like Harvard District,
• 29:30
  Speaker 8: it's on my own. I'm bringing in a good friend
• 29:32
  Speaker 8: of mine who's been doing my development consult Michael Amm,
• 29:35
  Speaker 8: and we're just gonna partner on it. I stand on
• 29:40
  Speaker 8: my own and everything, but he's a brother that I
• 29:41
  Speaker 8: really trust in respect. So it's like, now, let's just
• 29:44
  Speaker 8: do this together. So it's not like I needed him
• 29:46
  Speaker 8: at all, and frankly, he doesn't need me, but it
• 29:48
  Speaker 8: makes sense for us to like share, divide and conquer that.
• 29:52
  Speaker 8: To answer your question earlier about like, how do you
• 29:54
  Speaker 8: know when it's too much? Right now, I mean, it's
• 29:58
  Speaker 8: only I just hire my first person a couple months ago.
• 30:02
  Speaker 8: It's been me this whole time, full time. That's why
• 30:05
  Speaker 8: I don't put off this content. I'll just be working literally,
• 30:08
  Speaker 8: like I'm a staff of I've been a staff of one.
• 30:12
  Speaker 8: I had people assisting, and even the person that are hired,
• 30:15
  Speaker 8: she's been helping for like two years or so. But
• 30:18
  Speaker 8: full time, it's just me and one other person right now.
• 30:22
  Speaker 3: I didn't know that.
• 30:23
  Speaker 8: Wow, I am primarily doing the work. It's not like
• 30:28
  Speaker 8: I'm having team members do it. Like I'm atthe these
• 30:31
  Speaker 8: community meetings. I'm meeting with the folks, I'm putting together
• 30:33
  Speaker 8: the financial models. I'm looking at the construction plans like
• 30:36
  Speaker 8: I'm doing it.
• 30:37
  Speaker 4: When you broke down the financial model by square foot
• 30:40
  Speaker 4: the last time we spoke, I was, I mean, that
• 30:42
  Speaker 4: blew me away. And so I'm out looking at you
• 30:44
  Speaker 4: going from one hundred and forty unit development to now
• 30:47
  Speaker 4: in Birmingham where we got eleven hundred mixed unit.
• 30:50
  Speaker 3: Yeah, talk about scaling them.
• 30:53
  Speaker 4: What that looks like for you since you're i mean
• 30:55
  Speaker 4: talking about just being the sole person doing.
• 30:57
  Speaker 8: For sure, So partnerships, it's another key.
• 31:02
  Speaker 3: One. I knew.
• 31:04
  Speaker 8: I felt the market was changing. I didn't know it
• 31:07
  Speaker 8: would be this starting turn of the interest rates, but
• 31:09
  Speaker 8: I knew like we've been on the wave like OA
• 31:12
  Speaker 8: hit boom. Really from twenty ten to like twenty one
• 31:16
  Speaker 8: twenty two. That was a run that real estate hasn't seen.
• 31:21
  Speaker 8: Real estate is cyclical. It goes up and it goes down.
• 31:23
  Speaker 8: It's literally like this all the time. So I'm like, yo,
• 31:25
  Speaker 8: it's time that it's gonna go down. So I intentionally
• 31:27
  Speaker 8: didn't do any new developments. I was just working on
• 31:31
  Speaker 8: the construction of fourteen oh two eighteen eighty seven. I'm
• 31:34
  Speaker 8: gonna tell us, so I have right now three projects
• 31:38
  Speaker 8: little around a little over three hundred units under construction
• 31:42
  Speaker 8: right now in Wisconsin. So I was like, let me
• 31:44
  Speaker 8: just focus on that. But simultaneously I was looking for
• 31:47
  Speaker 8: how do I plan for the future where my time
• 31:51
  Speaker 8: right now may not yield this return, but my time
• 31:54
  Speaker 8: later will.
• 31:55
  Speaker 3: So I started to reach out to that.
• 31:58
  Speaker 8: I built a partnership with I grew An Egbert and
• 32:00
  Speaker 8: their team, and I started looking at master plan developments.
• 32:04
  Speaker 3: So that's what I was talking about before.
• 32:06
  Speaker 8: I didn't really get hit by the recession much because
• 32:10
  Speaker 8: all of my stuff was already kind of out the ground.
• 32:11
  Speaker 8: It's just being built. All my finance and is in order.
• 32:14
  Speaker 8: I put a pause on anything new. But as I
• 32:17
  Speaker 8: was pausing, I was working on this larger term stuff.
• 32:20
  Speaker 8: So I ended up getting eleven hundred units awarded that
• 32:23
  Speaker 8: we're developing with Smithfield Core that's in Birmingham, and we
• 32:27
  Speaker 8: just received the fifty million dollar grant on that, and
• 32:29
  Speaker 8: I also got about nine hundred units awards thank you. Yeah,
• 32:34
  Speaker 8: so that's about three three hundred with the market race,
• 32:38
  Speaker 8: so about three hundred fifty million in just the eleven hundred,
• 32:41
  Speaker 8: and then I have nine hundred units at tom Brown
• 32:45
  Speaker 8: in Birmingham that I'm.
• 32:46
  Speaker 3: Developing as well.
• 32:47
  Speaker 8: The way you can do that is like I looked
• 32:50
  Speaker 8: at capacity. We're doing the fifty million dollars broken out
• 32:54
  Speaker 8: into seven deals. I'm doing a deal a year for
• 32:56
  Speaker 8: the next seven years. And when I talked about the funding, right, Okay,
• 33:00
  Speaker 8: you have the loan, you have the tax for the equity,
• 33:03
  Speaker 8: but then you have to feel the rest. The fifty
• 33:05
  Speaker 8: million dollars is the gap filler for the rest. So
• 33:08
  Speaker 8: I have a pre pre funded seven deal run based
• 33:15
  Speaker 8: on fifty million dollars of a grant that was awarded
• 33:18
  Speaker 8: from the federal government.
• 33:20
  Speaker 3: So for me, that was capacity.
• 33:21
  Speaker 8: Like I don't need to do seven eight deals right
• 33:23
  Speaker 8: now because I'm a small team. But if I could
• 33:26
  Speaker 8: build seven, eight, nine, ten deals on my pipeline over
• 33:30
  Speaker 8: however much time, that was the key. So I'm doing
• 33:32
  Speaker 8: seven marked seven affordable deals for Birmingham and Smithfield with
• 33:38
  Speaker 8: two market ray deals and.
• 33:39
  Speaker 3: Then the other one.
• 33:40
  Speaker 8: I have about seven phases, so every year I'm going
• 33:42
  Speaker 8: to do really two deals a year in Birmingham.
• 33:45
  Speaker 4: So that Secretary Fudge is who the person who wire? Yeah, Secretary,
• 33:49
  Speaker 4: I mean if people don't know she's ahead of her,
• 33:51
  Speaker 4: she is. So how did you develop a relationship with her.
• 33:54
  Speaker 4: Where you on her radar? Did somebody introduce you? Because
• 33:56
  Speaker 4: relationships are important, we always talk about that. When did
• 33:59
  Speaker 4: that relationship development?
• 34:01
  Speaker 8: You know, what's interesting new people around. But I didn't
• 34:05
  Speaker 8: meet her until the day she brought their war Wow.
• 34:07
  Speaker 8: I didn't meet her until that day she brought her
• 34:09
  Speaker 8: fifty million dollar check and we met then prior to that.
• 34:15
  Speaker 3: Who does know her?
• 34:16
  Speaker 8: Randall Woofin mayor Woofin out of Birmingham, he knows her,
• 34:20
  Speaker 8: you know. So it's relationships, like you said, If the
• 34:22
  Speaker 8: mayor knows her and the councilwoman knows her and we
• 34:28
  Speaker 8: are all aligned in this development together, I mean, this
• 34:31
  Speaker 8: is what we are pushing for. At that point, I
• 34:33
  Speaker 8: didn't need to know her because they knew her, you know.
• 34:36
  Speaker 8: And I will say we put together one of the
• 34:38
  Speaker 8: best proposals they've probably ever seen. It's super unique to
• 34:43
  Speaker 8: get that choice. Neighborhood grant was it's been around for
• 34:47
  Speaker 8: some years. It really was Hope six first. So Egbert
• 34:50
  Speaker 8: is a pioneer of Hope six. Hud asked him consulting
• 34:54
  Speaker 8: on the model, et cetera.
• 34:55
  Speaker 3: Now we have this.
• 34:56
  Speaker 8: It's broken out into three tiers housingighborhood and people. Those
• 35:03
  Speaker 8: three tiers are super important to Hood because it's not
• 35:06
  Speaker 8: just about housing like you were saying earlier, like we
• 35:08
  Speaker 8: need food, we need shelter. We're doing We're moving the library,
• 35:11
  Speaker 8: putting that into the development. We are also doing a
• 35:14
  Speaker 8: social innovation campus that the city is going to run
• 35:16
  Speaker 8: and govern. In our senior building that's one hundred and
• 35:19
  Speaker 8: one units that we just applied for tax credits. On
• 35:21
  Speaker 8: the lower level is an early childhood education center, so
• 35:24
  Speaker 8: we have one hundred and one seniors that will now
• 35:27
  Speaker 8: volunteer with the kids, so the kids will be teaching
• 35:29
  Speaker 8: the seniors and the seniors to be teaching the kids
• 35:31
  Speaker 8: like they are models within models. It's not about the buildings,
• 35:34
  Speaker 8: it's about, you know, the broader play. But Hud realized
• 35:37
  Speaker 8: that the applicant was the housing a thrower to get
• 35:40
  Speaker 8: Birmingham District one hundred percent Black LAD. The co applicant
• 35:44
  Speaker 8: is the City of Birmingham one hundred percent Black LAD.
• 35:46
  Speaker 3: The Housing LEADS is.
• 35:48
  Speaker 8: A partnership between Real Enterprises and the Integral Group one
• 35:51
  Speaker 8: hundred percent Black LAD and owned. The Scent Project is
• 35:54
  Speaker 8: running the people side one hundred percent Black LAD, which
• 35:57
  Speaker 8: is a subsidiary of integral and the neighborhood again is
• 35:59
  Speaker 8: the city of Birmingam.
• 36:00
  Speaker 3: First time we've ever seen one of.
• 36:02
  Speaker 8: These really really large scale developments be one hundred percent black,
• 36:06
  Speaker 8: which I think tell the story.
• 36:08
  Speaker 4: So that might have been why, Secretary, as you were saying,
• 36:11
  Speaker 4: I'm thinking the common thing. We saw this happen in Milwaukee,
• 36:14
  Speaker 4: and we're seeing it happen. This episode is brought to
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• 38:06
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 38:10
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 38:14
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 38:18
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 38:22
  Speaker 1: some of the heinous migrant criminals caught because of President
• 38:26
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 38:30
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 38:35
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 38:38
  Speaker 1: one hundred thousand illegal aliens.
• 38:40
  Speaker 2: Have been arrested.
• 38:41
  Speaker 1: If you are here illegally, your next you will be
• 38:45
  Speaker 1: fined nearly one thousand dollars a day, imprisoned, and deported.
• 38:49
  Speaker 1: You will never return. But if you register using our
• 38:52
  Speaker 1: CBP home app and leave now, you could be allowed
• 38:56
  Speaker 1: to return legally. Do what's right. Leave now. Under President Trump,
• 39:01
  Speaker 1: America's laws order and families will be protected.
• 39:04
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 39:07
  Speaker 4: Birman and we had the opportunity to sit down with
• 39:09
  Speaker 4: Mayoe Fan and he was telling us like we were
• 39:11
  Speaker 4: in Atlanta, but we flew over and he was like, look,
• 39:14
  Speaker 4: everything that they have, we can have here and we
• 39:17
  Speaker 4: can control it. So when I saw you get watered,
• 39:19
  Speaker 4: that's why I mentioned you watching market Monders, I'm like,
• 39:21
  Speaker 4: this is incredible because I see this happening.
• 39:23
  Speaker 3: It's a transition.
• 39:24
  Speaker 4: Are there other cities that you are on the radar
• 39:27
  Speaker 4: that you can see that there's a possibility for this
• 39:29
  Speaker 4: type of infrastructure, this type of I guess not even combarineing,
• 39:33
  Speaker 4: but people being in positions of power to push the
• 39:36
  Speaker 4: button and say yes.
• 39:37
  Speaker 8: For sure, Atlanta one hundred percent moving there more full
• 39:42
  Speaker 8: time here in the next couple of months.
• 39:45
  Speaker 3: Houston, d C, d C. For sure. You know, I
• 39:49
  Speaker 3: still live in DC and I love DC. DC. You
• 39:52
  Speaker 3: can do it.
• 39:55
  Speaker 8: Milwaukee, like mentioned Saint Paul, Minnesota has a black mayor,
• 39:58
  Speaker 8: So there's there's actually a a list of like black
• 40:02
  Speaker 8: mayors that you can look up and I would start there.
• 40:07
  Speaker 8: I haven't actually done it, but that's something practical you
• 40:08
  Speaker 8: could do. It's like, look at the list of black mayors,
• 40:11
  Speaker 8: see where they are, see what their terms are, because
• 40:13
  Speaker 8: if they're leaving soon it might not matter as much.
• 40:15
  Speaker 8: But if they just got elected or something, Hey start
• 40:17
  Speaker 8: building those relationships. Now you start building with those black mayors.
• 40:20
  Speaker 8: They have the people and the teams that can start
• 40:22
  Speaker 8: to move things around.
• 40:23
  Speaker 3: And that's why I align myself.
• 40:25
  Speaker 8: One of the biggest opportunities for emerging developers and even
• 40:30
  Speaker 8: solidified developers like myself, are those municipalities in the partnerships.
• 40:35
  Speaker 8: Best of what I've talked about it in a lot
• 40:36
  Speaker 8: of some public private partnerships are key. But there are
• 40:40
  Speaker 8: a lot of black people getting these positions of power
• 40:42
  Speaker 8: that are vested in the equality in Hey, I'm not
• 40:48
  Speaker 8: gonna select you because you're black. I'm gonna select you
• 40:50
  Speaker 8: because you're good. But you also are black and you
• 40:52
  Speaker 8: have mission too, so we have an aligned mission.
• 40:57
  Speaker 5: Okay, so talk about talk about a little bit. But
• 41:00
  Speaker 5: let's go into this community development versus commercial real estate.
• 41:03
  Speaker 5: Community development is what is community development?
• 41:05
  Speaker 3: What that even mean?
• 41:06
  Speaker 8: Community development is where you are primarily working. So commercial
• 41:12
  Speaker 8: development in general is like the creation of something. Right,
• 41:16
  Speaker 8: So if you look at commercial real estate is the
• 41:20
  Speaker 8: traditional profit capitalists type of system.
• 41:26
  Speaker 5: It's for profit entities yes, like office buildings, yes, office.
• 41:30
  Speaker 8: Building, store, grocery yeah, retail, multifamily that's not subsidized.
• 41:36
  Speaker 3: Anything that's not subsidized. It's just for profit.
• 41:38
  Speaker 5: It's commercial that's commercial housing is commercial estate is well.
• 41:41
  Speaker 8: Absolutely, but community development there are elements of commercial real
• 41:46
  Speaker 8: estate that could be subsidized. Sell the long comeouts and
• 41:48
  Speaker 8: tax credit so housing is also commercial real estate, so
• 41:51
  Speaker 8: like building that grocery store, the city camming is subsidized,
• 41:54
  Speaker 8: so that's more community development work. So you're doing it
• 41:58
  Speaker 8: not necessarily for profit, but you're doing it for mission.
• 42:01
  Speaker 8: That's the stark difference. And the mechanics of how the
• 42:03
  Speaker 8: finance works is completely different. So how do they work
• 42:08
  Speaker 8: on the market rate side, It's really simple. If you
• 42:10
  Speaker 8: got if you have a hundred million dollar deal we
• 42:13
  Speaker 8: talked about if you haven't watched last episode, make sure
• 42:15
  Speaker 8: you take it out. If you got a hundred million
• 42:17
  Speaker 8: dollar deal, let's say you get seventy million of debt.
• 42:19
  Speaker 8: That's just is what it is. Those are the terms.
• 42:21
  Speaker 8: You need thirty million in equity. If you need this
• 42:24
  Speaker 8: thirty million equity, there's a system where the general partner
• 42:27
  Speaker 8: could come in. I'm gonna bring ten percent of the equity.
• 42:30
  Speaker 8: You're gonna bring ninety. It's just like the private equity funds.
• 42:33
  Speaker 8: It's all the same. Whether it's business or in real estate,
• 42:36
  Speaker 8: it's the same structure. So I'm gonna bring three million,
• 42:39
  Speaker 8: and you are gonna bring twenty seven. We're gonna get
• 42:42
  Speaker 8: this debt of seventy We're getting this still done simple.
• 42:46
  Speaker 8: It's really and the numbers rooted in that allow that
• 42:50
  Speaker 8: to work. Everyone gets their return. It is the metrics,
• 42:53
  Speaker 8: et cetera, et cetera. Community development is when that system
• 42:56
  Speaker 8: doesn't work, you can't hit those returns. But just because
• 43:01
  Speaker 8: you can't hit that return, does that mean you shouldn't
• 43:03
  Speaker 8: be able to build in these communities. No, like you
• 43:08
  Speaker 8: have to be able to build in all of the communities,
• 43:10
  Speaker 8: regardless of the income that is driving it. So community
• 43:14
  Speaker 8: development is really a system that allows for people like
• 43:17
  Speaker 8: myself to go in and like develop in communities where
• 43:20
  Speaker 8: the incomes don't work. Interesting thing, Egbert said once again.
• 43:25
  Speaker 8: I know I keep saying his name, but think about
• 43:27
  Speaker 8: a flight, right, We fly all the time. I know
• 43:29
  Speaker 8: y'all fly as much as I do. You bought your
• 43:32
  Speaker 8: flight three months ago. You bought your flight two months ago.
• 43:34
  Speaker 8: I bought my flight yesterday. Yours is one hundred, yours
• 43:37
  Speaker 8: is two hundred minus five hundred. We all in the
• 43:40
  Speaker 8: same row at the end of the day, No matter
• 43:44
  Speaker 8: how much you paid, it shouldn't determine the quality of
• 43:46
  Speaker 8: the service once you have. So the way I look
• 43:49
  Speaker 8: at housing is the exact same way. Just because you
• 43:52
  Speaker 8: make thirty thousand dollars or you might make twenty thousand
• 43:56
  Speaker 8: dollars and I might make a million dollars. Doesn't necessarily
• 43:59
  Speaker 8: mean you should live in a thirty thousand dollars apartment, right,
• 44:02
  Speaker 8: Like frankly, teachers, lawyers, no teachers, police officers, etc.
• 44:09
  Speaker 3: Like they are doing the public good. They're no worse
• 44:13
  Speaker 3: than a.
• 44:14
  Speaker 8: Celebrity that may be an athlete, Like we have to
• 44:17
  Speaker 8: be able to create something for them too.
• 44:19
  Speaker 4: Is the reason's community development is the reason you don't
• 44:21
  Speaker 4: see more people doing it in your opinion because of
• 44:23
  Speaker 4: the profit margins are not the highest.
• 44:26
  Speaker 8: More people in general, yes, more of us know the
• 44:31
  Speaker 8: predominantly white people that's been doing development forever. Yeah, it's
• 44:34
  Speaker 8: like it's not worth the brain damage in a headache.
• 44:37
  Speaker 8: It's a lot of work, and the profit margins aren't
• 44:39
  Speaker 8: as consistent.
• 44:41
  Speaker 3: It's not as.
• 44:44
  Speaker 8: Streamline is commercial real estate. It's just nuts and boats
• 44:47
  Speaker 8: over there. If you got the money, you got the land,
• 44:49
  Speaker 8: you buy it. You don't have to go through the
• 44:51
  Speaker 8: red tape over here is full of red tape. So
• 44:54
  Speaker 8: and it's not guarantee that you'll be able to move
• 44:57
  Speaker 8: forward on it. Like there's variable that are outside of
• 45:00
  Speaker 8: your hands. So yes, that's why a lot of people
• 45:02
  Speaker 8: don't do it that are doing this commercial real estate stuff. Now,
• 45:06
  Speaker 8: I think a lot of us don't do it because
• 45:07
  Speaker 8: of education and like that's it. I think way more
• 45:10
  Speaker 8: of us will do it if we knew one it
• 45:12
  Speaker 8: existed and too figured out a way to start to
• 45:14
  Speaker 8: do it.
• 45:15
  Speaker 3: When we talked about the numbers last time, like.
• 45:17
  Speaker 8: There's a real life, real life use case we're in
• 45:20
  Speaker 8: five years, you could be worth ten figures getting into
• 45:23
  Speaker 8: the space, even in community development exclusively. Now again, I
• 45:26
  Speaker 8: don't think that's the best business to just build. If
• 45:28
  Speaker 8: you want to like sustaining business, you should diversify it.
• 45:31
  Speaker 8: But it's a good place to be.
• 45:34
  Speaker 5: So are you actively buying land as part of this
• 45:37
  Speaker 5: developments or.
• 45:38
  Speaker 3: Great question, man, buying no get in control? Yes? So
• 45:45
  Speaker 3: those are two different things.
• 45:46
  Speaker 5: So how do you get control without.
• 45:48
  Speaker 8: Buying purchase and sell contract that allows you to wait
• 45:51
  Speaker 8: until you have your plan in order or your finance
• 45:54
  Speaker 8: and is in order.
• 45:55
  Speaker 3: To be able to buy.
• 45:56
  Speaker 5: Can you explain that?
• 45:57
  Speaker 3: Absolutely?
• 45:59
  Speaker 5: Uh.
• 46:00
  Speaker 8: They always say don't wait to buy land by land
• 46:03
  Speaker 8: and wait. That's like the big Instagram thing, right, I
• 46:07
  Speaker 8: disagree fundamentally, I disagree. I know that's I'm a minority
• 46:11
  Speaker 8: in this, but buying and sitting on land is not
• 46:15
  Speaker 8: a smart decision as it relates to investing. You can
• 46:19
  Speaker 8: put your money other places, in stocks, in bonds, etc.
• 46:24
  Speaker 3: Even in flipping some real estate whatever.
• 46:26
  Speaker 8: Because development is sexually so many people just want to
• 46:28
  Speaker 8: go out and say I'm doing this as that. When
• 46:31
  Speaker 8: you watch the people talking about buying land, don't look
• 46:35
  Speaker 8: for the people that say I bought this land or
• 46:38
  Speaker 8: I'm about to do this with it.
• 46:40
  Speaker 3: Look for the people that finished it.
• 46:41
  Speaker 8: Because a lot of those people that are saying we're
• 46:43
  Speaker 8: about to do this never get to the other side
• 46:45
  Speaker 8: of it. They don't come back for a second interview
• 46:47
  Speaker 8: and say, hey, that building is built, you can look
• 46:49
  Speaker 8: at it.
• 46:49
  Speaker 3: They don't have the same receipts.
• 46:51
  Speaker 8: And during that process there's holding costs, there's insurance, there's risk.
• 46:55
  Speaker 8: Like most of the time, buying land is not a
• 46:58
  Speaker 8: good investment unless you have a serpace of that's that
• 47:00
  Speaker 8: you're just sitting on. If you got money and it's
• 47:02
  Speaker 8: just like right there waiting and you need tax shelters
• 47:06
  Speaker 8: or anything like that, cool, you should do that.
• 47:08
  Speaker 3: But someone that is.
• 47:10
  Speaker 8: Trying to get into space like that's not the best
• 47:13
  Speaker 8: way to enter into this market at all. So no,
• 47:16
  Speaker 8: I don't buy land. I like to get it under contract.
• 47:19
  Speaker 8: I'll go and work with a municipality. Those are the
• 47:21
  Speaker 8: best people to work with when they are in sync,
• 47:28
  Speaker 8: because when they're not, it's tough. Or you could work
• 47:31
  Speaker 8: with a private seller that understands like, realistically, nobody else
• 47:35
  Speaker 8: is gonna buy this. So one of the things I read,
• 47:37
  Speaker 8: I think it was in the People's Principal, was like
• 47:40
  Speaker 8: your price my terms, all right, cool, you want to
• 47:43
  Speaker 8: five hundred thousand for this land, I'll give you the
• 47:45
  Speaker 8: five hundred thousand, but I'm gonna need eighteen months to close.
• 47:50
  Speaker 8: You've been sitting on it for five years. What's the difference.
• 47:52
  Speaker 8: Give me eighteen months. I may give you ten thousand
• 47:54
  Speaker 8: to put down. You know, after six months, I'll give
• 47:58
  Speaker 8: you another twenty five. That may go hard because I
• 47:59
  Speaker 8: think my plan is moving forward. But I'm not giving
• 48:02
  Speaker 8: you five hundred thousand until everything I know for my
• 48:06
  Speaker 8: exitus in place. Or if you buy land that's five
• 48:12
  Speaker 8: hundred thousand, but you know it's worth five million your
• 48:14
  Speaker 8: exiting is in place right there? Then you could buy
• 48:16
  Speaker 8: it quickly. I'm not buying land until my exit is
• 48:19
  Speaker 8: in place.
• 48:20
  Speaker 3: Period.
• 48:21
  Speaker 9: Never never into an investment before you know the exit.
• 48:25
  Speaker 9: Not doing it, simple principle. I'll lock it up, but
• 48:28
  Speaker 9: I'm not buying. So how are you moving into different markets? Like,
• 48:33
  Speaker 9: what are some challenges with that?
• 48:34
  Speaker 5: You started where you're from, but now you're going to
• 48:37
  Speaker 5: Texas and you're going to you said they moving to
• 48:39
  Speaker 5: Atlanta and different things like and then you're doing different
• 48:42
  Speaker 5: different product types as well. Yeah, we talk about navigating that.
• 48:46
  Speaker 8: So relationships, man, it's everything. I think when I was
• 48:50
  Speaker 8: coming up in Milwaukee, one of the things that I
• 48:54
  Speaker 8: did was just build those relationships off network, and I
• 48:57
  Speaker 8: was at every event. You couldn't miss me. I was
• 48:59
  Speaker 8: literally couldn't I missed me. I was everywhere. So I
• 49:02
  Speaker 8: took that same model. But now I'm doing it on
• 49:04
  Speaker 8: the national scale. Everything in DC real estate based events,
• 49:07
  Speaker 8: I'm there. I'm not there as much now because i've
• 49:10
  Speaker 8: been you know, headed down, but I'm in those Atlanta
• 49:13
  Speaker 8: based events, I'm in that, Houston based events, I'm in
• 49:16
  Speaker 8: those you know, Birmingham based events.
• 49:18
  Speaker 3: I'm in that.
• 49:19
  Speaker 8: So I look for the macro economic trends that I
• 49:23
  Speaker 8: like population growth. I really like red states and blue
• 49:28
  Speaker 8: cities because it allows for flexibility.
• 49:34
  Speaker 3: And getting out tennis that may not pay. Right.
• 49:38
  Speaker 8: I'm not saying you're vig folks, That's not what I'm
• 49:40
  Speaker 8: here for. But at the same time, places like Atlanta.
• 49:45
  Speaker 5: Atlanta is in a bad Atlanta's d C. Let's use
• 49:48
  Speaker 5: DC for example. You said red state and blue city.
• 49:50
  Speaker 3: Yes, those are places like Atlanta.
• 49:52
  Speaker 5: I like Houston, Georgia's Birmingham all blue states, red city.
• 49:58
  Speaker 5: I mean, I mean traditionally george is not a blue.
• 50:00
  Speaker 3: State though it No, no, no, I mean blue cities, red states.
• 50:03
  Speaker 3: I may have said it the wrong.
• 50:04
  Speaker 5: What Birmingham would be, Yeah, yeah for sure, New Orleans, Yes,
• 50:10
  Speaker 5: stuff like that. Yeah.
• 50:12
  Speaker 3: I really like blue states, red cities.
• 50:14
  Speaker 8: Sorry, blue cities, red states because the higher level laws.
• 50:19
  Speaker 3: Allow for more flexibility.
• 50:20
  Speaker 8: Like a place like DC, for example, there were people
• 50:22
  Speaker 8: that literally DC prior to the pandemic, you can go
• 50:27
  Speaker 8: rent an apartment, never pay your rent, and you don't
• 50:30
  Speaker 8: have to get out for at least seven months.
• 50:32
  Speaker 3: Because that's all want the process states like.
• 50:34
  Speaker 8: I know people that lived in the building that I
• 50:35
  Speaker 8: lived in that literally leased it and didn't pay rent.
• 50:39
  Speaker 8: They just leased it out every summer so they can
• 50:40
  Speaker 8: enjoy the rooftop, and they just burn up different people's
• 50:43
  Speaker 8: things like Okay, your name this year, were all gonna
• 50:46
  Speaker 8: live there. Your name this year, were all gonna live there.
• 50:48
  Speaker 5: Are there any Are there any major cities that are
• 50:51
  Speaker 5: run by Republicans? I don't think so. Right most every
• 50:53
  Speaker 5: major city is run by Democrats. Think about it. That's
• 50:56
  Speaker 5: a good Chicago, La. Miami's a Democrat, the mayor's a Democrat.
• 51:02
  Speaker 5: I don't think there's any major city that that's interesting.
• 51:05
  Speaker 5: I just thought about that, no major city has demo,
• 51:09
  Speaker 5: has Republican control, even even if it's in a Republican La.
• 51:15
  Speaker 3: Yeah.
• 51:15
  Speaker 8: San Francisco, San Francisco saying yeah, Philly Yeah, and you
• 51:22
  Speaker 8: know Pennsylvanica's back and forth.
• 51:23
  Speaker 3: But those cities, those states.
• 51:26
  Speaker 8: That have those very like stringent laws, like a DC
• 51:28
  Speaker 8: for example, I'm not the most fond of. Right, Like
• 51:33
  Speaker 8: during the pandemic, there were people that literally lived for
• 51:37
  Speaker 8: over a year just because of the system. And it's like,
• 51:40
  Speaker 8: you're not paying any rent. As a landowner that has
• 51:44
  Speaker 8: thousands of units, I don't want thousands of units in
• 51:47
  Speaker 8: the place that I can't get people exploiting this system
• 51:51
  Speaker 8: out in Wisconsin, you get somebody thirty days, all right, boom,
• 51:55
  Speaker 8: you go through the process.
• 51:55
  Speaker 3: Atlanta even quicker than that.
• 51:57
  Speaker 8: And I'm not saying we should exploit it either, But
• 52:00
  Speaker 8: from a business perspective, it doesn't make sense for me
• 52:03
  Speaker 8: to be in a place where X amount of people
• 52:05
  Speaker 8: that'll pay rent, especially as I'm rising, Like when I
• 52:07
  Speaker 8: get bigger, of course, maybe I could deal with some
• 52:10
  Speaker 8: of that drop, but right now now I'm focused on
• 52:12
  Speaker 8: cities where it makes sense financially.
• 52:15
  Speaker 4: So you move throughout the cities. I know the HUT
• 52:17
  Speaker 4: is involved in the Birmingham situation. There was three hundred
• 52:19
  Speaker 4: and seventy million allocated for the developments. Is it a
• 52:25
  Speaker 4: situation where you can now again go back to hood
• 52:27
  Speaker 4: and do the same type of proposing a different city.
• 52:30
  Speaker 8: Absolutely so I have I'm a finalist for three cities
• 52:32
  Speaker 8: right now.
• 52:34
  Speaker 3: Yeah.
• 52:34
  Speaker 4: I knew it, man, I knew.
• 52:36
  Speaker 8: I'm a finalist for three cities right now. I got
• 52:38
  Speaker 8: a call yesterday about one. We'll talk about the cities offline.
• 52:42
  Speaker 3: Yeah.
• 52:43
  Speaker 8: So the strategy in the game plan there is if
• 52:48
  Speaker 8: let's say once a year, once every other year, I
• 52:50
  Speaker 8: can pick up one of these.
• 52:52
  Speaker 3: Birmingham will be further along.
• 52:54
  Speaker 8: Now I'm starting that, and if each one is kicking
• 52:56
  Speaker 8: out a thousand plus units, you get three four cities.
• 52:59
  Speaker 3: I mean by the.
• 53:01
  Speaker 8: Time I'm thirty four, now, by the time I'm forty
• 53:03
  Speaker 8: two forty three, I have thousands of units under my
• 53:07
  Speaker 8: belt that I've developed and really just starting to enter
• 53:11
  Speaker 8: my prime.
• 53:12
  Speaker 4: On your financial map, does the percentage change with the
• 53:15
  Speaker 4: amount of units? Right when you started at the one forty,
• 53:18
  Speaker 4: you had your percentage that was put in. Now you're
• 53:20
  Speaker 4: doing eleven hundred, but you have partners.
• 53:22
  Speaker 3: Yes, great question. Yes it did change.
• 53:25
  Speaker 8: So each city that you go into their housing authority
• 53:31
  Speaker 8: that you so all of these are public housing redevelopment.
• 53:33
  Speaker 8: So think of Brittany Greens, think Marcie Projects, et cetera.
• 53:38
  Speaker 8: We're taking the projects and creating mixed income communities because
• 53:43
  Speaker 8: if you think about the projects, there were low density.
• 53:46
  Speaker 8: So it's thirty acres of land with three hundred units
• 53:51
  Speaker 8: on it. That's saying thirty acres could do three thousand
• 53:54
  Speaker 8: if you really wanted to, right, But you don't want to.
• 53:57
  Speaker 8: You don't want to go that dence. But that's just
• 53:59
  Speaker 8: an example. Of of like the what you are going after.
• 54:03
  Speaker 8: So because the housing authorities typically own those lands, whoever
• 54:08
  Speaker 8: is at the housing authority, they kind of dictate the
• 54:11
  Speaker 8: negotiation of like the housing authority and developer. In those terms,
• 54:14
  Speaker 8: the housing authority gets x percentage and then the developers
• 54:18
  Speaker 8: gets wide percentage. And right now Integrow and I are
• 54:21
  Speaker 8: splitting that percentage. But it's very favorable, like it's pretty
• 54:25
  Speaker 8: close to where it should be. And the way we
• 54:28
  Speaker 8: work they come. I'm driving, but they're they're every step
• 54:33
  Speaker 8: of the way in the passenger, you see. So I'm
• 54:35
  Speaker 8: able to learn from it in their experience. They've developed,
• 54:37
  Speaker 8: built and manage over ten thousand plus units. They've been
• 54:39
  Speaker 8: doing this, they created the model. I'm learning from them,
• 54:42
  Speaker 8: but I'm driving the ship at the same time. So yes,
• 54:46
  Speaker 8: I have to share in the economics, but you know,
• 54:49
  Speaker 8: three four hundred million dollar deals of pop, I don't
• 54:53
  Speaker 8: mind share.
• 54:54
  Speaker 3: We can figure it out.
• 54:55
  Speaker 5: So, so about access to capital, that's something that you
• 54:58
  Speaker 5: know down people, A lot of people have I talked about,
• 55:02
  Speaker 5: what is your thoughts on access to capital as far
• 55:05
  Speaker 5: as do on the real estate development side, and what's
• 55:07
  Speaker 5: your personal experience is trying to get access to capital.
• 55:11
  Speaker 8: The money on this commercial real estate side. Like I said,
• 55:14
  Speaker 8: the money is gonna be there. If you got to
• 55:16
  Speaker 8: deal to work, the money's gonna flow at the end
• 55:19
  Speaker 8: of the day. Now the terms for the money talked
• 55:21
  Speaker 8: about before, that's where it gets a little tricky. I'll say,
• 55:25
  Speaker 8: in a way of George Floyd. There was an eighteen
• 55:29
  Speaker 8: month period maybe even a little. I mean, it's still
• 55:33
  Speaker 8: kind of there, but it's scaling back where they were
• 55:37
  Speaker 8: throwing money in black developers.
• 55:38
  Speaker 5: Who's throwing money like black Rock?
• 55:41
  Speaker 3: Oh no, that's a great question. So like the paypals
• 55:45
  Speaker 3: of the world.
• 55:45
  Speaker 8: When they was giving out all of the like oh
• 55:47
  Speaker 8: I want to invest in black communities, primarily went to
• 55:51
  Speaker 8: cediafi's Community Development Financial Institution that we talked about last time.
• 55:54
  Speaker 8: There's some national cd of files that govern some of
• 55:56
  Speaker 8: those funds and they've been able to kind of distill
• 55:59
  Speaker 8: those funds to us. So like Enterprise Community Partners that
• 56:01
  Speaker 8: my equity investors on the Madison deal, they have a
• 56:04
  Speaker 8: program called Equitable Path Forward.
• 56:06
  Speaker 3: Their CEO just took over Fanny May.
• 56:10
  Speaker 8: So that's the scale of how big the CDFIs are now.
• 56:16
  Speaker 3: They're one of their presidents Lorri Chapman.
• 56:19
  Speaker 8: She created this program based upon all of that money
• 56:22
  Speaker 8: that was coming in from the corporations that were trying
• 56:24
  Speaker 8: to give to black dollars. And this program is specifically
• 56:27
  Speaker 8: created to be able to They have lines of credit
• 56:31
  Speaker 8: for us from an operational business perspective. They have pre
• 56:34
  Speaker 8: development loans so you can go out each one of
• 56:36
  Speaker 8: these deals, you need at least a half a million,
• 56:40
  Speaker 8: anywhere from a half a million to a million before
• 56:43
  Speaker 8: you close. You get it all back when you finish,
• 56:45
  Speaker 8: but you need that before you close. So when you
• 56:47
  Speaker 8: talk about like capacity, that's one of the things too.
• 56:49
  Speaker 8: If you have five of these deals going on at
• 56:51
  Speaker 8: one time, you're gonna need two and a half to
• 56:54
  Speaker 8: five million dollars worth of capital just to deploy to that,
• 56:57
  Speaker 8: not even talking about your operations and nothing like that.
• 56:59
  Speaker 8: The programs that are allowing for developers to be able
• 57:02
  Speaker 8: to tap into those type of money that helps us
• 57:04
  Speaker 8: grow in scale.
• 57:06
  Speaker 3: But the flip side of it is.
• 57:09
  Speaker 8: That's all to you know, kind of feel good money
• 57:12
  Speaker 8: that's gonna flip. But to don People's point, black people
• 57:17
  Speaker 8: don't manage big pension funds at all.
• 57:21
  Speaker 3: Right, I've heard him talk about it. On y'all's platform.
• 57:25
  Speaker 8: At the end of the day, we're less than one
• 57:27
  Speaker 8: percent of all of the management, Black brown women less
• 57:32
  Speaker 8: than one percent of all assets managed. But if in
• 57:34
  Speaker 8: New York, for example, with black, brown and women is
• 57:36
  Speaker 8: over fifty percent of what's going into that pension fund,
• 57:39
  Speaker 8: why is it less than one percent of us managing
• 57:42
  Speaker 8: or having access to manage those funds? What is the
• 57:44
  Speaker 8: governance around that to say, oh, you are not capable
• 57:47
  Speaker 8: enough to do that. That's still a really big challenge
• 57:50
  Speaker 8: to be able to even go from someone like myself
• 57:53
  Speaker 8: that's a developer that's established, to get into funded management
• 57:56
  Speaker 8: and be able to allocate to either my developments or
• 58:00
  Speaker 8: other developers in the same way that some of these
• 58:04
  Speaker 8: traditional majority firms are doing with no problem. So that's
• 58:08
  Speaker 8: really a challenge that I think needs to be addressed,
• 58:11
  Speaker 8: and I'm doing my job to do it. So reinvest
• 58:13
  Speaker 8: as a platform and I'm creating now it's a crowdfunding
• 58:16
  Speaker 8: platform that democratizes commercial real esset investment. My mother can't invest,
• 58:21
  Speaker 8: your parents can invest unless they are accredited.
• 58:24
  Speaker 3: Historically, but you've seen.
• 58:25
  Speaker 8: Crowdfundings start to grow in the real estate space a
• 58:27
  Speaker 8: little bit, so I'm doing a regulation eight plus.
• 58:31
  Speaker 3: We can raise up to seventy five million.
• 58:33
  Speaker 8: I'm gonna put a portfolio of deals together and have
• 58:37
  Speaker 8: people invest in that and back by the best of
• 58:41
  Speaker 8: the best in the country that are doing it, so
• 58:43
  Speaker 8: it's secure by those funds, I mean buy those firms,
• 58:46
  Speaker 8: and we underwrite the deals, We co invest in the deals.
• 58:48
  Speaker 8: It's not like investing in a company. It's not like
• 58:52
  Speaker 8: investing in a onesie deal like we are, you know,
• 58:55
  Speaker 8: putting together sophistication in a way that the marketplace has
• 58:59
  Speaker 8: not seen. That's one of the ways that I'm addressing
• 59:02
  Speaker 8: that access to capital challenge for emerging developers that are
• 59:06
  Speaker 8: like me and coming up behind me too.
• 59:08
  Speaker 3: Let's talk about the emerging developers.
• 59:10
  Speaker 4: I would imagine since your episode, people have looked at
• 59:12
  Speaker 4: it as an option or even a pathway as a career.
• 59:17
  Speaker 4: So what are some some resources. I know you gave
• 59:19
  Speaker 4: something great about, you know, finding cities with black mans.
• 59:21
  Speaker 4: What are some other resources that you would recommend to
• 59:24
  Speaker 4: to people who are in this space and are looking
• 59:26
  Speaker 4: at like I want to be the next Brandon Rule.
• 59:28
  Speaker 3: Yeah.
• 59:29
  Speaker 8: I think one of the best ways is as you
• 59:31
  Speaker 8: drive around in neighborhoods and you see buildings. Look at
• 59:33
  Speaker 8: those signs. Every one of those buildings has a ton
• 59:37
  Speaker 8: of signs that has every single company name on them.
• 59:41
  Speaker 3: Those are the people doing developments.
• 59:43
  Speaker 8: What better place should you start in your backyard with
• 59:46
  Speaker 8: folks that are doing the work right now, start there first.
• 59:50
  Speaker 8: Like someone in Milwaukee, they're going to see a rule
• 59:52
  Speaker 8: enterprise of sign. Someone in des Moines, Iowa. I'm not
• 59:59
  Speaker 8: wor working there. I can't help them in the same way.
• 1:00:02
  Speaker 8: And the rural enterprise of de Moining may not be black,
• 1:00:06
  Speaker 8: but they know their stuff. It's about knowledge and education
• 1:00:08
  Speaker 8: at the end of the day. Like the black thing
• 1:00:10
  Speaker 8: is an enhancer, but the bar the entry is just
• 1:00:13
  Speaker 8: education and knowing what it is. So start with looking
• 1:00:17
  Speaker 8: at very practical way when you drive around, take a
• 1:00:20
  Speaker 8: picture of the signs, look them up, find people on LinkedIn,
• 1:00:23
  Speaker 8: whether they black women, find some commonality and try to,
• 1:00:27
  Speaker 8: you know, get in with them. Whether it be the architect,
• 1:00:29
  Speaker 8: the construction company, the engineers, or the developer. All of
• 1:00:33
  Speaker 8: them work with developers all the time. They know developers
• 1:00:36
  Speaker 8: don't say, oh, I don't want to readous to the
• 1:00:37
  Speaker 8: architect because I don't want to do that.
• 1:00:39
  Speaker 3: Architects build for developers.
• 1:00:40
  Speaker 8: Literally, they have a whole network of them, so if
• 1:00:43
  Speaker 8: you build a raportable one, they can introduce you to
• 1:00:45
  Speaker 8: their role to deck. So that's one of the ways
• 1:00:48
  Speaker 8: I'm also looking at Since that episode, people come to
• 1:00:51
  Speaker 8: me all the time, yo put out, put some out,
• 1:00:54
  Speaker 8: put something out, put some out. So like I've been,
• 1:00:56
  Speaker 8: I've been against the course thing. That's not my thing
• 1:00:59
  Speaker 8: because you can't put together a course and someone comes
• 1:01:02
  Speaker 8: out and becomes a developer.
• 1:01:04
  Speaker 3: That's not a thing you can go, I said the
• 1:01:05
  Speaker 3: last time. But you can go to the best.
• 1:01:08
  Speaker 8: Schools and universities in the country for the commercial real
• 1:01:11
  Speaker 8: estate programs and not be a developer when you come out.
• 1:01:13
  Speaker 8: So I'm looking at like putting together a community of
• 1:01:16
  Speaker 8: folks like really to bring resources in all of this.
• 1:01:21
  Speaker 8: Whether you're in Chicago or in la or in Atlanta,
• 1:01:25
  Speaker 8: you can network and get the education, but then also
• 1:01:28
  Speaker 8: look at kind of local networks as well to deal
• 1:01:30
  Speaker 8: with people that are like minded. So that's another way
• 1:01:33
  Speaker 8: that'll be through the roles of Groove.
• 1:01:35
  Speaker 3: That I put out.
• 1:01:36
  Speaker 8: Finally, I'm putting together my podcast y'all inspire me to
• 1:01:38
  Speaker 8: and I'm trying to put it out so that but
• 1:01:43
  Speaker 8: in general, I think researching man like right now, YouTube university,
• 1:01:48
  Speaker 8: he well University. There's a lot of information out here
• 1:01:51
  Speaker 8: that you can find, like for free. You know that
• 1:01:55
  Speaker 8: the game that I gave on the last episode is
• 1:01:57
  Speaker 8: a great way to get into it, you know, right
• 1:01:59
  Speaker 8: down literally those things is some of the other people
• 1:02:02
  Speaker 8: that have done they are not working with developers now,
• 1:02:05
  Speaker 8: like at development shops. There are people that started their
• 1:02:07
  Speaker 8: own development companies. There are people that want rps that
• 1:02:10
  Speaker 8: there are living testimonies of folks that like lives have
• 1:02:14
  Speaker 8: changed because of that episode and the platform that you
• 1:02:17
  Speaker 8: all created. So I think leveraging resources in every aspect
• 1:02:22
  Speaker 8: of the way is really how you do it.
• 1:02:23
  Speaker 5: It's affordable housing from a developer perspective, just from a
• 1:02:28
  Speaker 5: social perspective, is it beneficial in closing the wealth gap?
• 1:02:35
  Speaker 5: Or does it just keep status quo. You're doing a
• 1:02:38
  Speaker 5: good thing by providing service for people, But I just
• 1:02:42
  Speaker 5: I don't know if that is something it's exactly It's
• 1:02:46
  Speaker 5: like welfare, right, Welfare is beneficial, yeah, assistance yes, but
• 1:02:51
  Speaker 5: it's you're kind of staying at this level es right.
• 1:02:53
  Speaker 3: Yeah, you one hundred percent right.
• 1:02:55
  Speaker 8: So affordable housing in the traditional sense most people think
• 1:02:58
  Speaker 8: it's Section eight, you know all of that stuff. But
• 1:03:00
  Speaker 8: if y'all notice, like, for the most part, I do
• 1:03:02
  Speaker 8: mixed income housing, so I have market right units and
• 1:03:05
  Speaker 8: pretty much all of my deals. It may be sixty
• 1:03:09
  Speaker 8: percent or seventy percent affordable and maybe twenty percent market.
• 1:03:12
  Speaker 8: And even the affordability is at different levels. It's thirty
• 1:03:15
  Speaker 8: percent of the AMI, which is low income. At Section eight,
• 1:03:18
  Speaker 8: you got it at sixty percent of the AMI, which
• 1:03:21
  Speaker 8: is typically your workforce, so you're barista at the local
• 1:03:26
  Speaker 8: coffee shop, or your teacher, et cetera.
• 1:03:29
  Speaker 3: They live there as well.
• 1:03:30
  Speaker 8: But then the market rate folks that may be at
• 1:03:32
  Speaker 8: six figures plus are also in these buildings, our building
• 1:03:35
  Speaker 8: areas that are predominantly market rate. So like the Water
• 1:03:39
  Speaker 8: Street building that I'm putting up right now will be
• 1:03:40
  Speaker 8: done really at the end of this month, but people
• 1:03:43
  Speaker 8: start moving in next month. That building right next door
• 1:03:46
  Speaker 8: is a ton of condos right across street, a ton
• 1:03:48
  Speaker 8: of condos. There were fifty people in opposition every single
• 1:03:53
  Speaker 8: community meeting we have for that deal, because they didn't
• 1:03:55
  Speaker 8: want them around. They thought of like this negative stigma
• 1:03:59
  Speaker 8: of affordable house. Again, what I'm doing is mixed income housing,
• 1:04:02
  Speaker 8: so like the people that are living in that condo
• 1:04:05
  Speaker 8: can actually live here too if they want to sell.
• 1:04:07
  Speaker 8: Are kind of a move and it's justice quality. So
• 1:04:10
  Speaker 8: when you have a mixed income in one group, that's
• 1:04:13
  Speaker 8: where you have the different levels of collaboration. It's kind
• 1:04:18
  Speaker 8: of like Uel, right, think about investments. There are people
• 1:04:20
  Speaker 8: super low income, there are people meeting income, and there
• 1:04:23
  Speaker 8: are people extremely high income. That's the melting pot of success.
• 1:04:28
  Speaker 3: If you just.
• 1:04:29
  Speaker 8: Continuously have affordability at this level and below. We never
• 1:04:32
  Speaker 8: get out of that because you never see, you never learn,
• 1:04:34
  Speaker 8: you never grow. Y'all are to live an example of
• 1:04:37
  Speaker 8: really the answer to your question you got to see
• 1:04:39
  Speaker 8: some to believe in. And if you just keep that
• 1:04:42
  Speaker 8: concentration of poverty together, No, that is not the answer
• 1:04:45
  Speaker 8: at all.
• 1:04:47
  Speaker 3: This is why you text me. This is why you
• 1:04:50
  Speaker 3: text me.
• 1:04:50
  Speaker 4: After the segment that we were going back and forth
• 1:04:52
  Speaker 4: on market, mondays, that's right, and I was trying to
• 1:04:54
  Speaker 4: It's kind of like the first thing is like, let's
• 1:04:56
  Speaker 4: have our basic needs met and then let's be inspired both.
• 1:05:00
  Speaker 4: I think both both points are pretty valid. You did
• 1:05:04
  Speaker 4: the mixed units but there's also different types of real
• 1:05:07
  Speaker 4: estate that you're invested in now. So let's talk about
• 1:05:11
  Speaker 4: what the portfolio is going to be looking like in
• 1:05:13
  Speaker 4: the next five to ten years.
• 1:05:15
  Speaker 8: Yeah, great question. U. Diversification from a geographic perspective a
• 1:05:19
  Speaker 8: kind of outline. But to your point, I'm looking at
• 1:05:21
  Speaker 8: other things. I think development in general right now is down.
• 1:05:24
  Speaker 8: Like real estate is cyclical. There's four cycles. Like we're
• 1:05:28
  Speaker 8: not in a good one right now. I won't say
• 1:05:30
  Speaker 8: not in a good one, We're just in one that's
• 1:05:32
  Speaker 8: historically like bad. Right You just have to know what
• 1:05:35
  Speaker 8: to do within that cycle. So right now, what I'm
• 1:05:37
  Speaker 8: really looking at is multi family acquisitions, Like, how do
• 1:05:42
  Speaker 8: I go, Yes, I got a couple thousand units on
• 1:05:44
  Speaker 8: my pipeline that I'm developing over the next eight to ten.
• 1:05:48
  Speaker 3: I take a long time, But how do I buy five.
• 1:05:51
  Speaker 8: Thousand units in the next five years? Acquisitions? You can
• 1:05:55
  Speaker 8: buy that? Like literally the formula on the commercial real
• 1:05:58
  Speaker 8: estate side, again, it's simple, one hundred million dollars. I'm
• 1:06:02
  Speaker 8: getting seventy a debt, I need thirty million equity. I
• 1:06:05
  Speaker 8: need to bring three million to the table. So really,
• 1:06:09
  Speaker 8: through the various platforms and initiatives. We can start to
• 1:06:12
  Speaker 8: identify that three million, so I could bring and find
• 1:06:14
  Speaker 8: it twenty seven. That can then fund the one hundred
• 1:06:17
  Speaker 8: million dollar deal. From an acquisition perspective, if I can
• 1:06:21
  Speaker 8: scale that up, it creates a level of balance, like
• 1:06:25
  Speaker 8: not just affordability, because developers are very like I said rich,
• 1:06:31
  Speaker 8: balance seats crazy, but like cash poor. I just said,
• 1:06:34
  Speaker 8: it takes five hundred thousand to a million dollars a deal.
• 1:06:36
  Speaker 8: So if you got five of them things, no matter
• 1:06:37
  Speaker 8: how wealthy you are at a certain point, it's like
• 1:06:39
  Speaker 8: my cash is low. But the thing about the value
• 1:06:43
  Speaker 8: asked stuff. I had a friend Venus. She bought a
• 1:06:46
  Speaker 8: deal right outside of Atlanta.
• 1:06:49
  Speaker 3: I think it was.
• 1:06:52
  Speaker 8: Forty million in twenty twenty one and soda for one
• 1:06:54
  Speaker 8: to twenty and like or twenty twenty twenty and total
• 1:06:58
  Speaker 8: eighteen months later for like one twenty. So you look
• 1:07:02
  Speaker 8: at opportunities from a value a perspective if you know
• 1:07:04
  Speaker 8: how to underwrite them and look for the right things.
• 1:07:07
  Speaker 8: There's class C and dep properties that really need the
• 1:07:11
  Speaker 8: same level care that some of these new developments are getting.
• 1:07:15
  Speaker 8: You go in, you put in the rehab money, you go.
• 1:07:18
  Speaker 3: Fix it up now. It's to be B plus a minus.
• 1:07:22
  Speaker 8: Now you're cranking out income equivalent to the new construction
• 1:07:27
  Speaker 8: stuff that's out there at a fraction of the cost.
• 1:07:30
  Speaker 8: So the value here is probably just less than the
• 1:07:33
  Speaker 8: value there. But your basis for getting in is here,
• 1:07:38
  Speaker 8: so that spread is yours. So I'm really looking at
• 1:07:40
  Speaker 8: it from that perspective. From a multi family acquisition play
• 1:07:44
  Speaker 8: developing some studios in Atlanta. Hopefully by the time this
• 1:07:49
  Speaker 8: comes out, I can make a formal announcement, but two
• 1:07:54
  Speaker 8: really really big you know, partners in conversations with their
• 1:07:58
  Speaker 8: industrial that was one of the best asset classes in
• 1:08:01
  Speaker 8: the pandemic across anything. I mean, didn't matter, stocks, bonds,
• 1:08:05
  Speaker 8: real estate don't matter. Industrial real estate was toe to
• 1:08:10
  Speaker 8: toe with anything else you put up there. So when
• 1:08:12
  Speaker 8: you look at that, it's like, okay, regardless of anything
• 1:08:15
  Speaker 8: that's going on in capital markets, this specific thing is booming.
• 1:08:22
  Speaker 8: And for production in Atlanta, it's the new Hollywood, right,
• 1:08:25
  Speaker 8: Like literally it's the new Hollywood. They have a thirty
• 1:08:28
  Speaker 8: percent tax credit. If you do one hundred million dollar
• 1:08:32
  Speaker 8: production in Atlanta, you get thirty million back.
• 1:08:36
  Speaker 3: That's why they're there.
• 1:08:38
  Speaker 8: So from a resident from a development perspective. My partner
• 1:08:42
  Speaker 8: is an Ecbert and those guys they developed Third Rail
• 1:08:45
  Speaker 8: Studios ended up selling it and whatnot. But the Rocks
• 1:08:50
  Speaker 8: movie Rampage was film there, Ozark was filmed there. Like
• 1:08:53
  Speaker 8: that's the quality of productions that will be coming out
• 1:08:54
  Speaker 8: of these studios. So studios, I think, is a huge
• 1:08:57
  Speaker 8: opportunity in Atlanta. It'll get saturated a little bit, but
• 1:09:00
  Speaker 8: right now it's time to strike.
• 1:09:02
  Speaker 5: So what about the Choice Neighborhood Implementation grant? It's that deal.
• 1:09:08
  Speaker 8: So that's that's the Birmingham man. That three hundred and
• 1:09:11
  Speaker 8: seventy million that they put it was from the federal government.
• 1:09:15
  Speaker 8: So last time we did a deep dive on tax credits,
• 1:09:17
  Speaker 8: but I think this time we should definitely highlight this fact.
• 1:09:22
  Speaker 3: I won a fifty million dollar grand granted. Was a team.
• 1:09:26
  Speaker 8: But I when I did that interview two and a
• 1:09:28
  Speaker 8: half years ago, I didn't know I could win a
• 1:09:30
  Speaker 8: fifty million dollar grant. I had no clue that there
• 1:09:32
  Speaker 8: was a fifty million dollar grant exists that Brandon Rule
• 1:09:35
  Speaker 8: could be a part of. But now it's like, oh,
• 1:09:37
  Speaker 8: I do so the Choice Neighborhood Implementation grant is that
• 1:09:41
  Speaker 8: fifty out of the three seventy, it was the highest
• 1:09:44
  Speaker 8: one that got We got the biggest check. Some people
• 1:09:46
  Speaker 8: got fifty, some got forty, some got less. But it
• 1:09:50
  Speaker 8: allows you to redevelop these communities. And when I talked
• 1:09:52
  Speaker 8: about the capital stack earlier on the community development side,
• 1:09:57
  Speaker 8: the value was here, but the cost is here.
• 1:09:59
  Speaker 3: That million plugs in that delta grant.
• 1:10:02
  Speaker 5: Where's the grant from the state federal?
• 1:10:04
  Speaker 8: Yeah, so that's when Secretary Fluds came down brought the check.
• 1:10:08
  Speaker 8: Federal government every year they put it out. They just
• 1:10:11
  Speaker 8: actually announced yesterday that they have I forget the exact number,
• 1:10:15
  Speaker 8: but they're putting out I think it was two hundred
• 1:10:17
  Speaker 8: and fifty or so million.
• 1:10:18
  Speaker 5: How can people find grant information? Like how can you even.
• 1:10:21
  Speaker 8: Google choice that specific one choice neighborhood implementation grant. They
• 1:10:26
  Speaker 8: have a planning grant too that cities typically go and
• 1:10:29
  Speaker 8: like that's such a five hundred thousand where they pay
• 1:10:32
  Speaker 8: different consultants to put together their plan.
• 1:10:34
  Speaker 3: But that fifty million is huge.
• 1:10:37
  Speaker 4: Yeah, I mean, and relationships again, like you said, the
• 1:10:39
  Speaker 4: fact that the mayor knew the Secretary of HUD, and
• 1:10:42
  Speaker 4: the fact that the Secretary of HUD looks like us
• 1:10:46
  Speaker 4: helps absolutely.
• 1:10:47
  Speaker 3: In two years that might not be the case.
• 1:10:50
  Speaker 8: It's time to strike or at least learn, because in
• 1:10:52
  Speaker 8: eight years it might be the case again exactly. But
• 1:10:55
  Speaker 8: you'll be prepared once you put yourself in that position.
• 1:10:57
  Speaker 8: Like my preparation really is what's manifesting itself into what
• 1:11:01
  Speaker 8: we are starting to see today. Like I, if it
• 1:11:03
  Speaker 8: wasn't for me doing those tax credit deals, I wouldn't
• 1:11:06
  Speaker 8: be able to do this master plan stuff.
• 1:11:07
  Speaker 3: But I know how to do each individual deal.
• 1:11:10
  Speaker 8: So now when I'm putting together seven, it's like, I
• 1:11:11
  Speaker 8: know how to do each individual one, but let me
• 1:11:13
  Speaker 8: put together the plan for the seven. Now I got
• 1:11:15
  Speaker 8: integrow and partnerships here and be able to help streamline
• 1:11:18
  Speaker 8: that process.
• 1:11:18
  Speaker 3: Compare yourself for the moment. That's right.
• 1:11:20
  Speaker 5: Well, there you have it, ladies and gentlemen, another gym
• 1:11:24
  Speaker 5: packed session. So I know you tell you got the
• 1:11:26
  Speaker 5: podcast coming. What else you want to leave the people with?
• 1:11:29
  Speaker 3: Yeah?
• 1:11:30
  Speaker 8: Check out the rods of group? So that how to
• 1:11:31
  Speaker 8: be the podcast? When's it come out? I'm rocking it? Ah,
• 1:11:35
  Speaker 8: by the end of the year. Let's just say that.
• 1:11:36
  Speaker 5: What's it about real estate?
• 1:11:38
  Speaker 3: Yeah?
• 1:11:38
  Speaker 8: Primarily real estate. Originally it was like entrepreneurship. I thought
• 1:11:40
  Speaker 8: about it in like twenty fifteen. It was like eyl honestly,
• 1:11:44
  Speaker 8: but I just was crazy busy, Like legit. If you
• 1:11:47
  Speaker 8: go back to Facebook in twenty fifteen, you'll see like posts.
• 1:11:49
  Speaker 4: That was I think I saw you was sitting on
• 1:11:52
  Speaker 4: the couch.
• 1:11:52
  Speaker 3: It was very dark.
• 1:11:53
  Speaker 8: Yeah yeah, I mean yeah, video qualities trying Yeah yeah,
• 1:11:57
  Speaker 8: so you know I was.
• 1:11:58
  Speaker 3: I was trying to do some stuff back then.
• 1:12:00
  Speaker 8: But now I think just market conditions, right, like there's
• 1:12:05
  Speaker 8: there's a source for that now, which I love. And
• 1:12:08
  Speaker 8: that's what I appreciate y'all for it, because I only
• 1:12:10
  Speaker 8: wanted to do it because I was coming up as
• 1:12:12
  Speaker 8: a developing an entrepreneur and like, yo, I don't see this.
• 1:12:14
  Speaker 3: But y'all did it. It's like perfect, Okay.
• 1:12:16
  Speaker 8: So I feel like there's a real estate void too
• 1:12:19
  Speaker 8: in a way that I think I could feel it.
• 1:12:20
  Speaker 8: So that's primarily what it's about. So I'll be doing
• 1:12:23
  Speaker 8: some entrepreneurs but mainly, yeah, it'll be real estate based
• 1:12:26
  Speaker 8: and then also reinvestors, this crowdfunded platform that will be
• 1:12:30
  Speaker 8: for developers. But one of the things that I created
• 1:12:34
  Speaker 8: and investors, one of the things I created on there
• 1:12:36
  Speaker 8: was a real estate calculator. So when I talk about
• 1:12:38
  Speaker 8: the financial model and whatnot, I literally built out a
• 1:12:41
  Speaker 8: whole financial model and the user interface that you can
• 1:12:44
  Speaker 8: just plug in the purchase price, plug in the amount
• 1:12:47
  Speaker 8: of rent, plugged it center then spit out all of
• 1:12:49
  Speaker 8: the stuff for you, so that'll be on reinvest and
• 1:12:52
  Speaker 8: that's for that's just free gym for the people.
• 1:12:55
  Speaker 5: All Right, you have it. Ladies and gentlemen, make sure
• 1:12:58
  Speaker 5: you follow my guy. What's your instrum b underscore?
• 1:13:01
  Speaker 8: Are you elli b roll on all platforms? And need
• 1:13:04
  Speaker 8: some good brothers?
• 1:13:05
  Speaker 3: Man.
• 1:13:05
  Speaker 8: One last thing I'll say behind the scenes, y'all some
• 1:13:08
  Speaker 8: really good brothers. We won't talk every day, but you
• 1:13:11
  Speaker 8: know what I'm saying. It's been stand up in genuine
• 1:13:12
  Speaker 8: from the beginning. So I know y'all might see them
• 1:13:15
  Speaker 8: with the celebrities and whatnot, but these are the same
• 1:13:17
  Speaker 8: brothers I'm met, you know, almost.
• 1:13:19
  Speaker 3: Three years ago at this point.
• 1:13:20
  Speaker 5: So appreciate you all, love, appreciate it all right, God,
• 1:13:24
  Speaker 5: thank you for rocking with us. We'll see you next week. Peace.
• 1:13:27
  Speaker 1: Peace an illegal alien from Guatemala charged with raping a
• 1:13:31
  Speaker 1: child in Massachusetts. An MS thirteen gang member from al
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• 1:13:43
  Speaker 1: just some of the heinous migrant criminals caught because of
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• 1:13:51
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• 1:14:22
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• 1:14:25
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