Latest / Master Passive Income Podcast Network / From Value-Add to Development with Justin Goodin - MPI Multifamily Commercial Real Estate Investing

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From Value-Add to Development with Justin Goodin - MPI Multifamily Commercial Real Estate Investing · Master Passive Income Podcast Network

• 0:04
  You're
• 0:04
  listening
• 0:04
  to
• 0:04
  the
• 0:04
  Master
• 0:05
  Passive
• 0:05
  Income
• 0:06
  Podcast
• 0:06
  Network.
• 0:10
  Hey
• 0:10
  guys,
• 0:10
  this
• 0:10
  is
• 0:10
  Charles
• 0:11
  seaman
• 0:11
  with
• 0:11
  Erica
• 0:12
  McNew,
• 0:12
  and
• 0:12
  we're
• 0:12
  here
• 0:12
  with
• 0:13
  the
• 0:13
  Master
• 0:13
  Passive
• 0:14
  Income
• 0:14
  Multifamily
• 0:15
  Podcast.
• 0:16
  And
• 0:16
  today
• 0:16
  we
• 0:16
  have
• 0:16
  a
• 0:17
  guest
• 0:17
  joining
• 0:17
  us.
• 0:17
  Our
• 0:18
  guest
• 0:18
  is
• 0:18
  Justin
• 0:19
  Gooden.
• 0:19
  So
• 0:19
  to
• 0:19
  give
• 0:20
  you
• 0:20
  a
• 0:20
  little
• 0:20
  background
• 0:20
  on
• 0:21
  him,
• 0:21
  Justin,
• 0:21
  after
• 0:22
  graduating
• 0:22
  from
• 0:22
  business
• 0:23
  school
• 0:23
  with
• 0:23
  a
• 0:23
  degree
• 0:23
  in
• 0:24
  finance,
• 0:24
  he
• 0:24
  started
• 0:25
  working
• 0:25
  as
• 0:25
  a
• 0:25
  multifamily
• 0:26
  underwriter,
• 0:27
  commercial
• 0:27
  bridge
• 0:27
  lender.
• 0:28
  And
• 0:28
  he
• 0:28
  quickly
• 0:28
  realized
• 0:29
  he
• 0:29
  was
• 0:29
  on
• 0:29
  the
• 0:29
  wrong
• 0:29
  side
• 0:30
  of
• 0:30
  the
• 0:30
  equation.
• 0:30
  He
• 0:31
  discovered
• 0:31
  that
• 0:31
  if
• 0:31
  he
• 0:31
  was
• 0:32
  ever
• 0:32
  going
• 0:32
  to
• 0:32
  achieve
• 0:33
  the
• 0:33
  net
• 0:33
  worth
• 0:33
  and
• 0:33
  lifestyle
• 0:34
  that
• 0:34
  he
• 0:34
  wanted,
• 0:34
  then
• 0:34
  he
• 0:35
  was
• 0:35
  going
• 0:35
  to
• 0:35
  have
• 0:35
  to
• 0:35
  start
• 0:35
  doing
• 0:35
  deals
• 0:36
  himself
• 0:36
  and
• 0:37
  not
• 0:37
  rely
• 0:37
  on
• 0:37
  a
• 0:37
  401k
• 0:38
  or
• 0:38
  W2.
• 0:39
  So
• 0:39
  he
• 0:39
  founded
• 0:40
  Gooden
• 0:40
  Development,
• 0:40
  a
• 0:41
  multifamily
• 0:41
  development
• 0:42
  firm.
• 0:42
  And
• 0:43
  in
• 0:43
  that
• 0:43
  firm,
• 0:43
  he
• 0:43
  helps
• 0:44
  busy
• 0:44
  professionals
• 0:45
  earn
• 0:45
  all
• 0:45
  the
• 0:45
  benefits
• 0:46
  of
• 0:46
  real
• 0:46
  estate
• 0:46
  without
• 0:47
  having
• 0:47
  to
• 0:47
  be
• 0:47
  a
• 0:47
  landlord.
• 0:48
  He
• 0:48
  also
• 0:48
  lives
• 0:48
  in
• 0:48
  Indianapolis
• 0:49
  with
• 0:49
  his
• 0:49
  wife
• 0:50
  and
• 0:50
  two
• 0:50
  dogs.
• 0:54
  Welcome
• 0:55
  to
• 0:55
  the
• 0:55
  Master
• 0:56
  Passive
• 0:56
  Income
• 0:56
  Multifamily
• 0:57
  Podcast
• 0:58
  where
• 0:58
  we
• 0:58
  we
• 0:59
  guide
• 0:59
  you
• 0:59
  to
• 0:59
  invest
• 0:59
  in
• 1:00
  commercial
• 1:00
  real
• 1:00
  estate
• 1:01
  with
• 1:01
  a
• 1:01
  special
• 1:02
  focus
• 1:02
  on
• 1:03
  raising
• 1:03
  money
• 1:04
  from
• 1:04
  others
• 1:04
  to
• 1:04
  buy
• 1:05
  bigger
• 1:05
  and
• 1:05
  better
• 1:06
  deals.
• 1:06
  And
• 1:07
  now
• 1:07
  here
• 1:07
  are
• 1:07
  your
• 1:07
  hosts,
• 1:08
  Charles
• 1:08
  seaman
• 1:09
  and
• 1:09
  Erica
• 1:10
  McNew.
• 1:13
  Justin,
• 1:14
  welcome
• 1:14
  to
• 1:14
  the
• 1:14
  show.
• 1:15
  Charles,
• 1:15
  thanks
• 1:15
  for
• 1:15
  having
• 1:15
  me
• 1:15
  on.
• 1:16
  So
• 1:16
  after
• 1:17
  that
• 1:17
  brief
• 1:18
  bio,
• 1:18
  do
• 1:18
  you
• 1:18
  want
• 1:18
  to
• 1:19
  share
• 1:19
  a
• 1:19
  little
• 1:19
  more
• 1:19
  about
• 1:20
  your
• 1:20
  background
• 1:20
  and
• 1:21
  how
• 1:21
  you
• 1:21
  got
• 1:21
  started
• 1:22
  in
• 1:22
  this
• 1:22
  with
• 1:22
  some
• 1:22
  of
• 1:22
  the
• 1:22
  listeners?
• 1:23
  Well,
• 1:23
  happy
• 1:23
  to
• 1:23
  start
• 1:24
  there
• 1:24
  and
• 1:24
  yeah,
• 1:24
  thanks
• 1:24
  for
• 1:25
  having
• 1:25
  me
• 1:25
  on.
• 1:25
  So
• 1:26
  like
• 1:26
  Charles
• 1:26
  mentioned,
• 1:26
  I'm
• 1:27
  from
• 1:27
  Indianapolis,
• 1:28
  Indiana
• 1:28
  and
• 1:28
  live
• 1:28
  here
• 1:29
  today.
• 1:29
  I
• 1:30
  got
• 1:30
  my
• 1:30
  first
• 1:30
  taste
• 1:31
  of
• 1:31
  real
• 1:31
  estate
• 1:32
  by
• 1:32
  investing
• 1:33
  in
• 1:33
  single
• 1:33
  family
• 1:34
  homes
• 1:34
  as
• 1:35
  rentals
• 1:35
  and
• 1:35
  fix
• 1:36
  and
• 1:36
  flips
• 1:36
  and
• 1:36
  doing,
• 1:37
  doing
• 1:37
  all
• 1:37
  that.
• 1:37
  You
• 1:37
  know,
• 1:38
  like
• 1:38
  most
• 1:38
  people,
• 1:39
  I
• 1:39
  thought
• 1:39
  you
• 1:40
  needed
• 1:40
  to
• 1:40
  get
• 1:40
  started
• 1:41
  in
• 1:41
  the
• 1:41
  residential
• 1:41
  space.
• 1:42
  I
• 1:42
  thought
• 1:42
  you
• 1:42
  needed
• 1:42
  to,
• 1:43
  you
• 1:43
  know,
• 1:43
  use
• 1:44
  fix
• 1:44
  and
• 1:44
  flips
• 1:45
  and
• 1:45
  rentals
• 1:45
  as
• 1:45
  a
• 1:46
  stepping
• 1:46
  stone
• 1:47
  before
• 1:47
  you
• 1:47
  got
• 1:47
  into
• 1:48
  commercial
• 1:48
  real
• 1:48
  estate.
• 1:48
  So
• 1:48
  that's
• 1:49
  exactly
• 1:49
  what
• 1:50
  I
• 1:50
  did.
• 1:50
  What
• 1:50
  I
• 1:50
  did
• 1:51
  and
• 1:51
  all
• 1:51
  I
• 1:51
  knew
• 1:51
  at
• 1:51
  the
• 1:52
  time
• 1:52
  was,
• 1:52
  you
• 1:52
  know,
• 1:52
  getting
• 1:53
  into
• 1:53
  residential
• 1:53
  space.
• 1:54
  So
• 1:54
  after
• 1:54
  doing
• 1:55
  that
• 1:55
  for
• 1:55
  a
• 1:55
  few
• 1:56
  different
• 1:56
  years
• 1:56
  and
• 1:57
  you
• 1:57
  know,
• 1:57
  after
• 1:58
  business
• 1:58
  school,
• 1:58
  I
• 1:59
  started
• 1:59
  working
• 1:59
  as
• 1:59
  a
• 2:00
  commercial
• 2:00
  underwriter
• 2:01
  for
• 2:01
  a
• 2:01
  multifamily
• 2:02
  bridge
• 2:02
  lender.
• 2:02
  You
• 2:02
  know,
• 2:03
  kind
• 2:03
  of
• 2:03
  like
• 2:03
  opened
• 2:03
  my
• 2:03
  eyes
• 2:03
  to
• 2:04
  the
• 2:04
  possibilities
• 2:04
  of
• 2:05
  commercial
• 2:05
  real
• 2:05
  estate,
• 2:06
  multifamily
• 2:06
  investing,
• 2:07
  working
• 2:07
  with
• 2:08
  partners,
• 2:08
  raising
• 2:09
  capital
• 2:09
  from
• 2:09
  investors,
• 2:10
  really
• 2:10
  just
• 2:10
  sort
• 2:11
  of
• 2:11
  opened
• 2:11
  my
• 2:11
  eyes
• 2:12
  to
• 2:12
  all
• 2:12
  those
• 2:13
  different
• 2:13
  possibilities
• 2:14
  and
• 2:14
  the
• 2:14
  benefits
• 2:15
  of
• 2:15
  commercial
• 2:15
  multifamily.
• 2:16
  So,
• 2:17
  you
• 2:17
  know,
• 2:17
  after
• 2:18
  working
• 2:18
  for
• 2:18
  the
• 2:18
  bridge
• 2:18
  lender,
• 2:19
  I
• 2:19
  decided
• 2:19
  to
• 2:20
  open
• 2:20
  up
• 2:20
  my
• 2:20
  own
• 2:21
  firm
• 2:21
  and
• 2:21
  invest
• 2:22
  primarily
• 2:22
  in
• 2:22
  value
• 2:23
  add
• 2:23
  multifamily
• 2:24
  deals
• 2:24
  across
• 2:25
  Indiana.
• 2:25
  So
• 2:26
  about
• 2:26
  the
• 2:26
  past
• 2:27
  four
• 2:27
  Years
• 2:27
  we've
• 2:28
  been
• 2:28
  buying
• 2:28
  existing
• 2:29
  multifamily
• 2:30
  assets
• 2:30
  here
• 2:30
  around
• 2:31
  Indiana.
• 2:31
  You
• 2:31
  know,
• 2:31
  buying
• 2:32
  properties,
• 2:32
  adding
• 2:33
  value,
• 2:33
  fixing
• 2:34
  them
• 2:34
  up
• 2:34
  and
• 2:34
  then
• 2:34
  selling
• 2:35
  them.
• 2:35
  And
• 2:36
  late
• 2:36
  last
• 2:36
  year
• 2:37
  we
• 2:37
  have
• 2:37
  transitioned
• 2:38
  fully
• 2:38
  into
• 2:39
  multifamily
• 2:40
  ground
• 2:40
  developments.
• 2:41
  And
• 2:41
  happy
• 2:42
  to
• 2:42
  chat
• 2:42
  more
• 2:42
  about
• 2:42
  reasons
• 2:43
  why,
• 2:43
  you
• 2:43
  know,
• 2:43
  behind
• 2:43
  the
• 2:44
  switch,
• 2:44
  but
• 2:44
  moving
• 2:45
  forward.
• 2:45
  Yeah,
• 2:45
  our
• 2:46
  company
• 2:46
  good
• 2:46
  in
• 2:46
  development.
• 2:47
  We
• 2:47
  are
• 2:47
  focused
• 2:48
  on
• 2:48
  building
• 2:49
  properties
• 2:49
  from
• 2:49
  the
• 2:49
  ground
• 2:50
  up
• 2:50
  here
• 2:50
  in
• 2:50
  Indiana
• 2:51
  and
• 2:51
  working
• 2:51
  with
• 2:52
  investors
• 2:52
  that
• 2:52
  do
• 2:52
  so.
• 2:53
  Justin,
• 2:53
  you
• 2:53
  have
• 2:53
  a
• 2:54
  really
• 2:54
  interesting
• 2:54
  background.
• 2:55
  You've
• 2:55
  been
• 2:55
  on
• 2:55
  different
• 2:56
  sides
• 2:56
  of
• 2:56
  the
• 2:56
  industry.
• 2:56
  You've
• 2:57
  been
• 2:57
  on
• 2:57
  the
• 2:57
  lending
• 2:58
  side,
• 2:58
  you've
• 2:58
  been
• 2:58
  on
• 2:58
  the
• 2:58
  investing
• 2:59
  side.
• 2:59
  Now
• 2:59
  you're
• 2:59
  in
• 2:59
  the
• 2:59
  development
• 3:00
  space.
• 3:00
  So
• 3:01
  let's
• 3:01
  hear
• 3:01
  about
• 3:01
  it.
• 3:02
  What
• 3:02
  motivated
• 3:03
  you
• 3:03
  to
• 3:03
  go
• 3:03
  from
• 3:03
  value
• 3:04
  add
• 3:04
  to
• 3:04
  development?
• 3:05
  Why
• 3:05
  the
• 3:05
  switch?
• 3:06
  Yeah,
• 3:06
  a
• 3:06
  few
• 3:06
  different
• 3:06
  reasons,
• 3:07
  Charles.
• 3:07
  One
• 3:07
  of
• 3:08
  them
• 3:08
  that
• 3:08
  kind
• 3:08
  of
• 3:08
  just
• 3:08
  sticks
• 3:09
  out
• 3:09
  to
• 3:09
  me
• 3:09
  is,
• 3:10
  I
• 3:10
  mean,
• 3:10
  all
• 3:11
  the
• 3:11
  competition
• 3:12
  in
• 3:12
  the
• 3:12
  value
• 3:13
  add
• 3:13
  space
• 3:13
  and
• 3:14
  you
• 3:14
  know,
• 3:14
  as
• 3:14
  you
• 3:14
  know,
• 3:15
  it's
• 3:15
  really
• 3:15
  like,
• 3:16
  you
• 3:16
  know,
• 3:16
  everybody
• 3:17
  when
• 3:17
  I
• 3:17
  go
• 3:17
  to
• 3:17
  events
• 3:18
  and
• 3:18
  conferences
• 3:19
  or
• 3:19
  I
• 3:19
  talk
• 3:19
  to
• 3:19
  other
• 3:19
  people
• 3:19
  on
• 3:19
  my
• 3:20
  network,
• 3:20
  I
• 3:20
  mean,
• 3:20
  you
• 3:20
  know,
• 3:21
  everybody
• 3:21
  and
• 3:22
  their
• 3:22
  brother
• 3:22
  is
• 3:22
  going
• 3:22
  after
• 3:23
  classic
• 3:24
  value
• 3:24
  add
• 3:25
  deals
• 3:25
  around.
• 3:26
  So
• 3:26
  the
• 3:26
  competition
• 3:27
  in
• 3:27
  the
• 3:27
  value
• 3:28
  space
• 3:28
  has
• 3:28
  just
• 3:28
  been
• 3:29
  tremendous.
• 3:29
  You
• 3:29
  know,
• 3:30
  I'm
• 3:30
  spending
• 3:31
  a
• 3:31
  tremendous
• 3:31
  amount
• 3:31
  of
• 3:32
  time
• 3:32
  like
• 3:32
  all
• 3:32
  operators
• 3:33
  trying
• 3:33
  to
• 3:33
  find
• 3:33
  out,
• 3:34
  you
• 3:34
  know,
• 3:34
  find
• 3:34
  these
• 3:35
  awesome
• 3:35
  deals
• 3:35
  that
• 3:35
  pencil
• 3:35
  out
• 3:36
  on
• 3:36
  the
• 3:36
  value
• 3:37
  add
• 3:37
  side
• 3:37
  and
• 3:38
  especially,
• 3:38
  you
• 3:38
  know,
• 3:38
  like
• 3:39
  the
• 3:39
  on
• 3:39
  market
• 3:39
  deals.
• 3:40
  When
• 3:40
  I
• 3:41
  find
• 3:41
  a
• 3:41
  deal
• 3:41
  that
• 3:41
  pencils
• 3:42
  out
• 3:42
  that's
• 3:42
  listed
• 3:43
  on
• 3:43
  the
• 3:43
  market
• 3:43
  for
• 3:44
  a
• 3:44
  broker,
• 3:44
  it's
• 3:45
  really
• 3:45
  rare
• 3:45
  that
• 3:45
  it
• 3:45
  happens.
• 3:46
  And
• 3:46
  even
• 3:46
  when
• 3:47
  I
• 3:47
  do,
• 3:48
  I'm
• 3:48
  competing
• 3:48
  against
• 3:49
  20,
• 3:49
  30
• 3:49
  other
• 3:50
  buyers
• 3:50
  against
• 3:51
  that
• 3:51
  other
• 3:52
  deal
• 3:52
  to
• 3:52
  win
• 3:52
  it.
• 3:53
  So
• 3:53
  for
• 3:53
  me,
• 3:53
  the
• 3:54
  competition
• 3:54
  in
• 3:54
  the
• 3:54
  value
• 3:55
  add
• 3:55
  space,
• 3:55
  maybe
• 3:56
  saturated
• 3:56
  wasn't
• 3:57
  the
• 3:57
  right
• 3:57
  word,
• 3:57
  but
• 3:58
  it's
• 3:58
  just
• 3:58
  really
• 3:58
  competitive
• 3:59
  and
• 3:59
  I
• 4:00
  just
• 4:00
  think
• 4:00
  it
• 4:01
  takes
• 4:01
  more
• 4:02
  of
• 4:02
  a
• 4:03
  different
• 4:03
  kind
• 4:03
  of
• 4:03
  investor
• 4:04
  to
• 4:05
  develop
• 4:06
  properties
• 4:06
  and
• 4:06
  go
• 4:06
  into
• 4:07
  development
• 4:07
  space.
• 4:08
  So
• 4:08
  yeah,
• 4:08
  to
• 4:09
  answer
• 4:09
  your
• 4:09
  question,
• 4:09
  I
• 4:10
  think
• 4:10
  there's
• 4:10
  less
• 4:10
  competition
• 4:11
  on
• 4:11
  the
• 4:11
  development
• 4:12
  space
• 4:12
  and
• 4:12
  my
• 4:12
  company
• 4:13
  is
• 4:13
  going
• 4:13
  to
• 4:13
  be
• 4:13
  able
• 4:13
  to
• 4:13
  do
• 4:14
  more
• 4:14
  deals
• 4:14
  and
• 4:14
  more
• 4:15
  transactions
• 4:16
  in
• 4:16
  development.
• 4:16
  Very,
• 4:17
  very
• 4:17
  neat
• 4:18
  and
• 4:18
  congratulations
• 4:18
  on
• 4:19
  that
• 4:19
  transition.
• 4:20
  Thank
• 4:20
  you.
• 4:20
  When
• 4:21
  you
• 4:21
  were
• 4:21
  making
• 4:21
  that
• 4:21
  transition,
• 4:22
  what
• 4:22
  do
• 4:22
  you
• 4:23
  think
• 4:23
  was
• 4:23
  the
• 4:24
  most
• 4:24
  difficult
• 4:24
  part
• 4:25
  of
• 4:25
  getting
• 4:25
  into
• 4:25
  the
• 4:26
  development
• 4:26
  side
• 4:26
  from
• 4:27
  value
• 4:27
  add
• 4:27
  multifamily?
• 4:28
  I
• 4:28
  said,
• 4:28
  yeah,
• 4:28
  I
• 4:28
  say
• 4:29
  the
• 4:29
  most
• 4:29
  difficult
• 4:29
  part
• 4:30
  is
• 4:30
  just,
• 4:30
  you
• 4:30
  know,
• 4:31
  you're
• 4:31
  in
• 4:31
  a
• 4:31
  whole
• 4:31
  different
• 4:31
  ballgame.
• 4:32
  I
• 4:32
  mean,
• 4:32
  of
• 4:32
  course
• 4:32
  when
• 4:33
  you
• 4:33
  switch
• 4:33
  from
• 4:34
  any
• 4:34
  different
• 4:34
  types
• 4:35
  of
• 4:35
  business
• 4:35
  or
• 4:36
  niche
• 4:36
  or
• 4:36
  asset
• 4:36
  class,
• 4:37
  you're
• 4:37
  in
• 4:37
  a
• 4:37
  whole
• 4:37
  different
• 4:37
  kind
• 4:38
  of
• 4:38
  business
• 4:39
  and
• 4:39
  you
• 4:39
  know,
• 4:39
  different
• 4:39
  things
• 4:39
  to
• 4:40
  learn.
• 4:40
  So,
• 4:40
  you
• 4:41
  know,
• 4:41
  going
• 4:41
  into
• 4:41
  the
• 4:42
  value
• 4:42
  add
• 4:42
  space,
• 4:43
  you
• 4:43
  know,
• 4:43
  is
• 4:43
  a
• 4:43
  whole
• 4:43
  different
• 4:44
  business
• 4:44
  plan
• 4:44
  and
• 4:45
  ball
• 4:45
  game
• 4:45
  than
• 4:46
  single
• 4:46
  payment
• 4:46
  homes
• 4:46
  and
• 4:46
  fix
• 4:47
  and
• 4:47
  flips.
• 4:47
  And
• 4:48
  similarly,
• 4:48
  like
• 4:48
  when
• 4:49
  I'm
• 4:49
  going
• 4:49
  from
• 4:49
  value
• 4:50
  add
• 4:50
  into
• 4:50
  development,
• 4:51
  you
• 4:51
  know,
• 4:51
  it's
• 4:51
  just
• 4:51
  a
• 4:51
  whole
• 4:51
  different
• 4:52
  ballgame.
• 4:52
  More
• 4:53
  things
• 4:53
  you
• 4:53
  have
• 4:53
  to
• 4:53
  learn
• 4:54
  and
• 4:54
  figure
• 4:54
  out
• 4:54
  along
• 4:55
  the
• 4:55
  way.
• 4:55
  You
• 4:55
  know,
• 4:55
  the
• 4:55
  way
• 4:56
  I've
• 4:56
  mitigated
• 4:57
  that
• 4:57
  is
• 4:57
  sort
• 4:57
  of,
• 4:58
  you
• 4:58
  know,
• 4:58
  finding
• 4:58
  other
• 4:59
  people
• 4:59
  that
• 4:59
  are
• 4:59
  in
• 4:59
  the
• 5:00
  development
• 5:00
  space
• 5:00
  already
• 5:01
  leveraging
• 5:01
  their
• 5:02
  knowledge,
• 5:02
  their
• 5:03
  expertise,
• 5:03
  partnering
• 5:04
  with
• 5:04
  them
• 5:04
  on
• 5:04
  deals,
• 5:04
  asking
• 5:05
  them
• 5:05
  questions,
• 5:05
  on
• 5:05
  looking
• 5:06
  at
• 5:06
  stuff.
• 5:06
  So,
• 5:07
  you
• 5:07
  know,
• 5:07
  in
• 5:07
  a
• 5:07
  way,
• 5:08
  you
• 5:08
  know,
• 5:08
  just
• 5:08
  going
• 5:08
  into
• 5:09
  like
• 5:09
  that
• 5:09
  whole
• 5:09
  different
• 5:10
  sort
• 5:10
  of
• 5:10
  niche
• 5:11
  has
• 5:11
  been
• 5:11
  the
• 5:11
  most
• 5:11
  difficult
• 5:12
  part.
• 5:12
  Let
• 5:12
  me
• 5:12
  ask
• 5:13
  you
• 5:13
  a
• 5:13
  question,
• 5:13
  Justin.
• 5:13
  So
• 5:14
  one
• 5:14
  of
• 5:14
  the
• 5:14
  things
• 5:15
  people
• 5:15
  always
• 5:15
  hear
• 5:15
  when
• 5:16
  they
• 5:16
  talk
• 5:16
  about
• 5:16
  development
• 5:17
  is
• 5:17
  the
• 5:17
  risk.
• 5:17
  You
• 5:18
  know,
• 5:18
  there's
• 5:18
  a
• 5:18
  lot
• 5:18
  of
• 5:18
  money
• 5:19
  that
• 5:19
  can
• 5:19
  be
• 5:19
  made,
• 5:19
  but
• 5:19
  there's
• 5:20
  also
• 5:20
  a
• 5:20
  lot
• 5:20
  of
• 5:20
  risk.
• 5:20
  And
• 5:20
  it's
• 5:21
  good
• 5:21
  that
• 5:21
  you
• 5:21
  have
• 5:21
  some
• 5:21
  experienced
• 5:22
  team
• 5:22
  members
• 5:22
  with
• 5:23
  you.
• 5:23
  So
• 5:23
  how
• 5:23
  do
• 5:24
  you
• 5:24
  mitigate
• 5:24
  those
• 5:24
  risks
• 5:25
  for
• 5:25
  your
• 5:25
  passive
• 5:26
  investors?
• 5:26
  You
• 5:26
  know,
• 5:27
  what
• 5:27
  risks
• 5:27
  should
• 5:27
  they
• 5:28
  expect
• 5:28
  and
• 5:29
  what
• 5:29
  do
• 5:29
  you
• 5:29
  do
• 5:29
  to
• 5:29
  mitigate
• 5:30
  them?
• 5:30
  Yeah,
• 5:31
  it's
• 5:31
  an
• 5:31
  awesome
• 5:31
  question.
• 5:32
  And
• 5:32
  of
• 5:32
  course,
• 5:32
  there's
• 5:33
  many
• 5:33
  risks
• 5:34
  in
• 5:34
  the
• 5:34
  development
• 5:34
  space
• 5:34
  or
• 5:35
  many
• 5:35
  risk
• 5:35
  in
• 5:35
  any
• 5:36
  kind
• 5:36
  of,
• 5:36
  you
• 5:36
  know,
• 5:37
  investment
• 5:37
  in
• 5:37
  general.
• 5:38
  I'd
• 5:38
  say,
• 5:38
  you
• 5:39
  know,
• 5:39
  some
• 5:39
  of
• 5:39
  the
• 5:39
  bigger
• 5:39
  risks
• 5:40
  and
• 5:40
  how
• 5:40
  we're
• 5:40
  mitigating
• 5:40
  them.
• 5:41
  I
• 5:41
  mean,
• 5:41
  one,
• 5:41
  the
• 5:42
  obvious
• 5:42
  one
• 5:43
  is,
• 5:43
  you
• 5:43
  know,
• 5:43
  what
• 5:43
  happens
• 5:44
  if
• 5:44
  your
• 5:45
  construction
• 5:45
  costs
• 5:46
  go
• 5:46
  over
• 5:46
  budget
• 5:47
  or
• 5:47
  more
• 5:48
  than
• 5:48
  what
• 5:48
  you're
• 5:48
  planning
• 5:49
  for
• 5:49
  in
• 5:49
  your
• 5:49
  underwriting?
• 5:50
  You
• 5:50
  know,
• 5:50
  in
• 5:50
  the
• 5:50
  deals
• 5:51
  that
• 5:51
  we're
• 5:51
  doing,
• 5:52
  we
• 5:52
  have
• 5:52
  a
• 5:52
  contract
• 5:53
  price
• 5:54
  with
• 5:54
  our
• 5:54
  construction
• 5:55
  company.
• 5:55
  So
• 5:55
  we
• 5:56
  have
• 5:56
  something
• 5:56
  baked
• 5:56
  into
• 5:57
  our
• 5:57
  contract
• 5:58
  called
• 5:58
  a
• 5:58
  guaranteed
• 5:59
  maximum
• 5:59
  price,
• 6:00
  meaning
• 6:00
  that,
• 6:01
  you
• 6:01
  know,
• 6:01
  if
• 6:01
  our
• 6:02
  budget
• 6:02
  goes,
• 6:03
  if
• 6:03
  our
• 6:03
  construction
• 6:04
  budget
• 6:04
  goes
• 6:05
  over
• 6:05
  our
• 6:06
  contracted
• 6:06
  price,
• 6:07
  our
• 6:07
  construction
• 6:08
  company
• 6:08
  is
• 6:08
  actually
• 6:08
  going
• 6:08
  to
• 6:08
  be
• 6:09
  on
• 6:09
  the
• 6:09
  hook
• 6:09
  for
• 6:09
  that
• 6:10
  overage
• 6:10
  and
• 6:11
  not
• 6:11
  us
• 6:11
  or
• 6:11
  our
• 6:11
  investors.
• 6:12
  So,
• 6:12
  I
• 6:12
  mean,
• 6:13
  that's
• 6:13
  one
• 6:13
  major
• 6:14
  way
• 6:14
  we
• 6:14
  mitigate
• 6:15
  the
• 6:15
  risk
• 6:15
  on
• 6:15
  the
• 6:15
  development
• 6:16
  space
• 6:16
  is
• 6:16
  just
• 6:16
  having
• 6:17
  that
• 6:17
  guaranteed
• 6:18
  maximum
• 6:18
  price
• 6:18
  option
• 6:19
  in
• 6:19
  our
• 6:19
  contracts.
• 6:20
  Let
• 6:20
  me
• 6:20
  ask
• 6:21
  you
• 6:21
  a
• 6:21
  question.
• 6:21
  That's
• 6:21
  definitely
• 6:21
  a
• 6:22
  great
• 6:22
  protection
• 6:22
  to
• 6:22
  have.
• 6:23
  Do
• 6:23
  you
• 6:23
  find
• 6:23
  that,
• 6:24
  do
• 6:24
  you
• 6:24
  do
• 6:24
  any
• 6:24
  financial
• 6:25
  vetting
• 6:25
  of
• 6:25
  the
• 6:25
  contractors
• 6:26
  to
• 6:26
  make
• 6:26
  sure
• 6:26
  they
• 6:26
  could
• 6:27
  actually
• 6:27
  make
• 6:27
  good
• 6:27
  on
• 6:27
  it?
• 6:28
  Because
• 6:28
  with
• 6:28
  some
• 6:28
  contractors,
• 6:29
  you
• 6:29
  know,
• 6:29
  if
• 6:29
  they're
• 6:30
  not
• 6:30
  large
• 6:30
  enough,
• 6:31
  they
• 6:31
  may
• 6:31
  not
• 6:31
  actually
• 6:31
  have
• 6:31
  the
• 6:32
  financial
• 6:32
  wherewithal
• 6:33
  to
• 6:33
  make
• 6:33
  good
• 6:33
  on
• 6:34
  that
• 6:34
  guarantee.
• 6:34
  Of
• 6:35
  course,
• 6:35
  yeah.
• 6:35
  I'll
• 6:35
  just
• 6:36
  take
• 6:36
  our
• 6:36
  last
• 6:36
  deal
• 6:37
  as
• 6:37
  an
• 6:37
  example.
• 6:38
  You
• 6:38
  know,
• 6:38
  when
• 6:38
  we
• 6:38
  had
• 6:38
  this
• 6:38
  deal
• 6:39
  basically
• 6:39
  ready
• 6:39
  to
• 6:39
  go,
• 6:40
  shovel
• 6:40
  ready,
• 6:41
  you
• 6:41
  know,
• 6:41
  we
• 6:41
  were
• 6:41
  already
• 6:42
  speaking
• 6:42
  with
• 6:42
  some
• 6:42
  different
• 6:43
  contractors
• 6:43
  throughout
• 6:43
  the
• 6:43
  entire
• 6:44
  process,
• 6:44
  going
• 6:44
  up
• 6:45
  to,
• 6:45
  you
• 6:45
  know,
• 6:45
  approvals
• 6:46
  and
• 6:46
  getting
• 6:46
  to
• 6:46
  zoning.
• 6:47
  But
• 6:47
  when
• 6:47
  we're
• 6:48
  ready
• 6:48
  to
• 6:48
  start?
• 6:49
  I
• 6:49
  mean,
• 6:49
  yeah.
• 6:49
  We
• 6:49
  bid
• 6:50
  our
• 6:50
  project
• 6:50
  out
• 6:51
  to
• 6:51
  three
• 6:52
  different,
• 6:52
  you
• 6:52
  know,
• 6:53
  local
• 6:53
  and
• 6:53
  reputable
• 6:54
  construction
• 6:55
  companies.
• 6:55
  So
• 6:56
  we
• 6:56
  are
• 6:56
  looking
• 6:57
  and
• 6:57
  working
• 6:57
  with
• 6:57
  companies
• 6:58
  that,
• 6:58
  you
• 6:58
  know,
• 6:59
  have
• 6:59
  experience
• 6:59
  in
• 7:00
  this
• 7:00
  space,
• 7:00
  have
• 7:00
  a
• 7:01
  tremendous
• 7:01
  amount
• 7:01
  of
• 7:02
  knowledge
• 7:02
  in
• 7:02
  the
• 7:02
  multifamily
• 7:03
  industry.
• 7:04
  You
• 7:04
  know,
• 7:04
  we're
• 7:04
  working
• 7:04
  with
• 7:05
  companies
• 7:05
  that,
• 7:05
  you
• 7:06
  know,
• 7:06
  we
• 7:06
  know
• 7:06
  like
• 7:07
  and
• 7:07
  trust,
• 7:07
  and
• 7:07
  we
• 7:07
  have
• 7:07
  a
• 7:08
  tremendous
• 7:08
  amount
• 7:09
  of
• 7:09
  confidence
• 7:10
  that
• 7:10
  they'll
• 7:10
  be
• 7:10
  able
• 7:10
  to,
• 7:11
  you
• 7:11
  know,
• 7:11
  execute
• 7:12
  our
• 7:12
  business
• 7:12
  plan
• 7:12
  and
• 7:12
  get
• 7:12
  our
• 7:12
  property
• 7:13
  built.
• 7:13
  So
• 7:13
  we're
• 7:14
  spending
• 7:14
  a
• 7:14
  lot
• 7:14
  of
• 7:14
  time,
• 7:15
  you
• 7:15
  know,
• 7:15
  vetting
• 7:15
  our
• 7:16
  construction
• 7:16
  partner
• 7:16
  in
• 7:17
  the
• 7:17
  beginning.
• 7:17
  It
• 7:17
  makes
• 7:18
  a
• 7:18
  lot
• 7:18
  of
• 7:18
  sense,
• 7:18
  I
• 7:18
  think,
• 7:18
  with
• 7:19
  anything
• 7:19
  in
• 7:19
  this
• 7:19
  business,
• 7:20
  you
• 7:20
  know,
• 7:20
  regardless
• 7:20
  of
• 7:20
  what
• 7:21
  side
• 7:21
  you're
• 7:21
  on.
• 7:21
  It's
• 7:21
  all.
• 7:22
  It's
• 7:22
  all
• 7:22
  the
• 7:22
  relationships.
• 7:23
  Right.
• 7:23
  So
• 7:23
  it
• 7:23
  sounds
• 7:23
  like
• 7:24
  that
• 7:24
  goes
• 7:24
  a
• 7:24
  long
• 7:24
  way
• 7:24
  in
• 7:24
  the
• 7:25
  development
• 7:25
  space.
• 7:25
  And
• 7:25
  just
• 7:25
  getting
• 7:25
  to
• 7:26
  know
• 7:26
  your
• 7:26
  kind
• 7:26
  contract
• 7:26
  is
• 7:27
  the
• 7:27
  same
• 7:27
  way
• 7:27
  you
• 7:27
  would
• 7:27
  any
• 7:27
  other
• 7:28
  professional,
• 7:28
  of
• 7:28
  course.
• 7:29
  So
• 7:29
  what
• 7:29
  set
• 7:30
  your
• 7:30
  projects
• 7:30
  apart
• 7:31
  from
• 7:31
  others
• 7:31
  in
• 7:31
  the
• 7:32
  market?
• 7:32
  Is
• 7:32
  there
• 7:32
  a
• 7:32
  competitive
• 7:33
  advantage
• 7:33
  that
• 7:33
  you
• 7:34
  guys
• 7:34
  have?
• 7:34
  Yeah,
• 7:34
  a
• 7:34
  few
• 7:34
  different
• 7:35
  ones.
• 7:35
  I
• 7:35
  feel
• 7:35
  like
• 7:36
  our
• 7:36
  biggest
• 7:36
  competitive
• 7:37
  advantage
• 7:37
  right
• 7:37
  now
• 7:37
  is
• 7:38
  that
• 7:38
  we
• 7:38
  are
• 7:38
  looking
• 7:39
  for
• 7:39
  opportunities
• 7:40
  to
• 7:40
  where
• 7:40
  we
• 7:40
  can
• 7:41
  actually
• 7:41
  partner
• 7:42
  with
• 7:42
  the
• 7:43
  city
• 7:43
  or
• 7:43
  town
• 7:44
  in
• 7:44
  the
• 7:44
  location
• 7:44
  that
• 7:44
  we're
• 7:44
  doing
• 7:45
  the
• 7:45
  project
• 7:45
  in,
• 7:46
  meaning
• 7:46
  we
• 7:47
  are
• 7:47
  working
• 7:47
  with
• 7:47
  different
• 7:48
  municipalities
• 7:49
  that
• 7:50
  want
• 7:50
  to
• 7:50
  provide
• 7:51
  incentives
• 7:51
  on
• 7:52
  our
• 7:52
  projects.
• 7:52
  You
• 7:53
  know,
• 7:53
  it's
• 7:53
  basically
• 7:54
  with
• 7:54
  how
• 7:54
  construction
• 7:55
  costs
• 7:55
  are
• 7:55
  without
• 7:56
  interest
• 7:56
  rates
• 7:56
  are.
• 7:57
  And
• 7:57
  we're
• 7:57
  doing
• 7:57
  this
• 7:58
  interview
• 7:58
  right
• 7:58
  now
• 7:58
  in
• 7:58
  September
• 7:59
  of
• 7:59
  2024.
• 8:00
  But,
• 8:00
  you
• 8:00
  know,
• 8:01
  development
• 8:01
  deals
• 8:01
  are
• 8:02
  almost
• 8:02
  impossible
• 8:03
  to
• 8:03
  get
• 8:03
  to
• 8:04
  pencil
• 8:04
  out
• 8:04
  on
• 8:04
  paper
• 8:05
  unless
• 8:06
  the,
• 8:06
  you
• 8:06
  know,
• 8:06
  the
• 8:07
  city
• 8:07
  or
• 8:07
  the
• 8:07
  town
• 8:08
  wants
• 8:08
  to
• 8:09
  invest
• 8:09
  in
• 8:09
  the
• 8:09
  project
• 8:10
  in
• 8:10
  some
• 8:10
  way
• 8:10
  to
• 8:11
  make
• 8:11
  that
• 8:11
  project
• 8:11
  happen
• 8:12
  again.
• 8:12
  It
• 8:12
  just
• 8:12
  goes
• 8:13
  back
• 8:13
  to
• 8:13
  construction
• 8:14
  costs
• 8:14
  and
• 8:14
  interest
• 8:14
  rates
• 8:15
  and
• 8:15
  things
• 8:15
  like
• 8:15
  that
• 8:16
  really
• 8:16
  make
• 8:16
  development
• 8:17
  challenging.
• 8:18
  So
• 8:18
  there
• 8:19
  are
• 8:19
  a
• 8:19
  lot
• 8:19
  of
• 8:19
  developers,
• 8:20
  like,
• 8:20
  sitting
• 8:20
  on
• 8:20
  the
• 8:21
  sidelines
• 8:21
  now.
• 8:22
  You
• 8:22
  know,
• 8:23
  they're
• 8:23
  not
• 8:23
  doing
• 8:23
  projects
• 8:24
  they're
• 8:24
  not
• 8:24
  building,
• 8:24
  and
• 8:24
  they
• 8:25
  can't
• 8:25
  get
• 8:25
  deals
• 8:25
  with
• 8:25
  pencil
• 8:26
  out.
• 8:26
  We
• 8:26
  are
• 8:26
  spending
• 8:27
  a
• 8:27
  lot
• 8:27
  more
• 8:27
  time
• 8:28
  on
• 8:28
  the
• 8:28
  front
• 8:28
  end,
• 8:29
  you
• 8:29
  know,
• 8:29
  working
• 8:29
  with
• 8:29
  municipalities
• 8:30
  and
• 8:31
  finding
• 8:32
  a
• 8:32
  way
• 8:32
  to
• 8:32
  partner
• 8:32
  with
• 8:32
  them,
• 8:33
  finding
• 8:33
  a
• 8:33
  way
• 8:33
  to
• 8:34
  inspire
• 8:35
  them
• 8:35
  with
• 8:35
  our
• 8:35
  projects,
• 8:36
  which
• 8:37
  does
• 8:37
  take
• 8:37
  a
• 8:38
  tremendous
• 8:38
  amount
• 8:38
  of
• 8:39
  more
• 8:39
  time
• 8:39
  in
• 8:39
  the
• 8:40
  beginning.
• 8:40
  And
• 8:41
  that's
• 8:41
  what
• 8:41
  sets
• 8:41
  our
• 8:42
  company
• 8:42
  apart
• 8:42
  from
• 8:42
  other
• 8:43
  developers
• 8:43
  that
• 8:43
  aren't
• 8:43
  willing
• 8:44
  to
• 8:44
  do
• 8:44
  that
• 8:45
  or
• 8:45
  are
• 8:45
  just
• 8:45
  more
• 8:45
  transactional
• 8:46
  or
• 8:47
  just
• 8:47
  doing
• 8:47
  skinnier
• 8:48
  deals.
• 8:48
  We're
• 8:48
  spending
• 8:49
  a
• 8:49
  lot
• 8:49
  more
• 8:49
  time
• 8:49
  on
• 8:49
  the
• 8:50
  front
• 8:50
  end,
• 8:50
  but
• 8:50
  we
• 8:50
  think
• 8:51
  by
• 8:51
  working
• 8:51
  with
• 8:51
  the
• 8:52
  city
• 8:52
  or
• 8:52
  the
• 8:52
  town
• 8:53
  that
• 8:53
  we
• 8:54
  have
• 8:54
  more
• 8:54
  opportunities
• 8:54
  and
• 8:55
  more.
• 8:55
  More
• 8:55
  value
• 8:56
  to
• 8:56
  be
• 8:56
  created
• 8:56
  in
• 8:56
  our
• 8:56
  projects.
• 8:57
  That's
• 8:57
  really
• 8:58
  brilliant.
• 8:58
  You
• 8:58
  know,
• 8:58
  I
• 8:58
  mean,
• 8:59
  you
• 8:59
  can
• 8:59
  sit
• 8:59
  there
• 8:59
  and
• 8:59
  you
• 8:59
  can
• 8:59
  fight
• 9:00
  city
• 9:00
  hall,
• 9:00
  you
• 9:00
  can
• 9:00
  work
• 9:00
  with
• 9:01
  them.
• 9:01
  And
• 9:01
  working
• 9:01
  with
• 9:01
  them
• 9:02
  certainly
• 9:02
  seems
• 9:02
  to
• 9:02
  be
• 9:02
  the
• 9:03
  smarter
• 9:03
  idea.
• 9:04
  What
• 9:04
  type
• 9:04
  of
• 9:04
  projects
• 9:05
  are
• 9:05
  you
• 9:05
  guys
• 9:05
  building,
• 9:05
  Justin?
• 9:06
  Are
• 9:06
  you
• 9:06
  guys
• 9:06
  doing
• 9:06
  affordable
• 9:07
  housing?
• 9:07
  You
• 9:07
  guys
• 9:07
  doing
• 9:08
  luxury?
• 9:08
  What
• 9:08
  are
• 9:08
  you
• 9:08
  building?
• 9:09
  Yeah,
• 9:09
  so
• 9:09
  in
• 9:10
  the
• 9:10
  great
• 9:10
  thing
• 9:10
  that
• 9:10
  you
• 9:10
  mentioned
• 9:10
  for
• 9:10
  me
• 9:11
  in
• 9:11
  the
• 9:11
  beginning,
• 9:11
  yeah,
• 9:11
  we
• 9:12
  are
• 9:12
  doing
• 9:12
  class
• 9:13
  A,
• 9:13
  multifamily
• 9:14
  and
• 9:14
  mixed
• 9:14
  use
• 9:15
  projects,
• 9:15
  meaning
• 9:16
  we're
• 9:16
  usually
• 9:17
  residential,
• 9:18
  regular
• 9:18
  apartment
• 9:18
  units
• 9:18
  on
• 9:19
  top
• 9:19
  and
• 9:19
  then
• 9:20
  some
• 9:20
  sort
• 9:20
  of,
• 9:21
  you
• 9:21
  know,
• 9:21
  commercial
• 9:21
  or
• 9:21
  retail
• 9:22
  on
• 9:22
  the
• 9:22
  bottom.
• 9:23
  And
• 9:23
  you
• 9:23
  know,
• 9:23
  going
• 9:23
  back
• 9:23
  to
• 9:24
  partnering
• 9:24
  with
• 9:25
  the
• 9:25
  city,
• 9:25
  you
• 9:25
  know,
• 9:25
  the
• 9:26
  city
• 9:26
  or
• 9:26
  the
• 9:26
  town,
• 9:27
  they
• 9:27
  like
• 9:27
  to
• 9:27
  see
• 9:28
  mixed
• 9:28
  use
• 9:29
  projects
• 9:29
  come
• 9:30
  into
• 9:30
  the
• 9:30
  area.
• 9:31
  So,
• 9:31
  you
• 9:31
  know,
• 9:31
  we're
• 9:31
  creating
• 9:32
  jobs,
• 9:32
  we're
• 9:32
  bringing
• 9:33
  businesses
• 9:33
  and
• 9:33
  companies
• 9:34
  into
• 9:34
  the
• 9:34
  area,
• 9:35
  we're
• 9:35
  providing
• 9:36
  housing.
• 9:36
  So
• 9:37
  by,
• 9:37
  you
• 9:37
  know,
• 9:38
  building
• 9:38
  a
• 9:38
  mixed
• 9:38
  use
• 9:39
  project,
• 9:39
  you
• 9:40
  know,
• 9:40
  the
• 9:40
  towns
• 9:40
  and
• 9:40
  the
• 9:41
  cities
• 9:41
  that
• 9:41
  we're
• 9:41
  talking
• 9:41
  to
• 9:42
  are
• 9:42
  more
• 9:43
  willing
• 9:43
  to
• 9:43
  incentivize
• 9:44
  those
• 9:44
  projects
• 9:44
  because
• 9:45
  they
• 9:45
  understand
• 9:45
  the
• 9:45
  benefits
• 9:46
  that
• 9:46
  a
• 9:46
  project
• 9:46
  like
• 9:47
  that
• 9:47
  brings
• 9:47
  to
• 9:47
  the
• 9:47
  area.
• 9:48
  Yeah.
• 9:48
  To
• 9:48
  answer
• 9:48
  your
• 9:48
  question,
• 9:49
  assay
• 9:50
  mixed
• 9:50
  use
• 9:51
  projects,
• 9:51
  typically
• 9:52
  between
• 9:52
  50
• 9:52
  and
• 9:53
  150
• 9:53
  units.
• 9:54
  Okay.
• 9:54
  So
• 9:55
  you're
• 9:55
  working
• 9:55
  with,
• 9:55
  you're
• 9:56
  working
• 9:56
  with
• 9:56
  the
• 9:56
  local
• 9:57
  government
• 9:57
  and
• 9:57
  you're
• 9:58
  building
• 9:58
  things
• 9:58
  they
• 9:58
  want
• 9:59
  and
• 9:59
  you're
• 9:59
  benefiting
• 9:59
  the
• 9:59
  community.
• 10:00
  So
• 10:00
  it
• 10:00
  sounds
• 10:00
  like
• 10:00
  aside
• 10:01
  from
• 10:01
  the
• 10:01
  profit,
• 10:02
  maybe
• 10:02
  there's
• 10:02
  also
• 10:02
  a
• 10:03
  little
• 10:03
  bit
• 10:03
  of
• 10:03
  passion
• 10:03
  and
• 10:03
  purpose
• 10:03
  involved
• 10:04
  in
• 10:04
  it
• 10:04
  too.
• 10:04
  Right.
• 10:05
  If
• 10:05
  we
• 10:06
  could
• 10:06
  circle
• 10:06
  back
• 10:06
  around
• 10:07
  when
• 10:07
  you
• 10:07
  were
• 10:08
  making
• 10:08
  that
• 10:08
  transition
• 10:09
  from
• 10:09
  value
• 10:09
  add
• 10:09
  multifamily
• 10:10
  into
• 10:10
  development,
• 10:11
  it
• 10:11
  sounds
• 10:11
  like
• 10:11
  you
• 10:11
  were
• 10:12
  doing
• 10:12
  the
• 10:12
  acquisition
• 10:13
  side
• 10:13
  of
• 10:13
  the
• 10:13
  value
• 10:13
  add
• 10:14
  multifamily.
• 10:15
  And
• 10:15
  it
• 10:15
  sounds
• 10:15
  like
• 10:15
  that
• 10:16
  was
• 10:16
  your
• 10:16
  role
• 10:16
  within
• 10:17
  the
• 10:17
  multifamily
• 10:17
  development,
• 10:18
  was
• 10:18
  the
• 10:18
  acquisition
• 10:19
  still.
• 10:20
  And
• 10:20
  then
• 10:20
  you
• 10:20
  had
• 10:20
  partners
• 10:21
  that
• 10:21
  you
• 10:21
  brought
• 10:21
  on.
• 10:21
  What
• 10:22
  does
• 10:22
  that
• 10:22
  look
• 10:22
  like?
• 10:23
  Sourcing
• 10:23
  acquisitions
• 10:24
  for
• 10:24
  the
• 10:24
  multifamily
• 10:25
  development?
• 10:26
  Great
• 10:26
  question.
• 10:26
  It
• 10:27
  definitely
• 10:27
  takes
• 10:27
  a
• 10:27
  lot
• 10:27
  more
• 10:28
  time
• 10:29
  and
• 10:29
  sort
• 10:29
  of
• 10:29
  like
• 10:29
  imagination
• 10:30
  on
• 10:31
  the
• 10:31
  development
• 10:31
  side.
• 10:31
  It's
• 10:32
  not
• 10:32
  always
• 10:32
  as
• 10:32
  simple
• 10:33
  as
• 10:33
  just
• 10:33
  like
• 10:34
  seeing
• 10:34
  a
• 10:34
  piece
• 10:34
  of
• 10:34
  land
• 10:35
  listed
• 10:35
  on
• 10:35
  the
• 10:35
  market
• 10:36
  by
• 10:36
  a
• 10:36
  broker
• 10:36
  and
• 10:36
  then
• 10:37
  just
• 10:37
  going,
• 10:37
  okay,
• 10:37
  I'll
• 10:37
  go
• 10:38
  get
• 10:38
  that
• 10:38
  piece
• 10:38
  of
• 10:38
  land,
• 10:38
  I'll
• 10:39
  go
• 10:39
  build
• 10:39
  it
• 10:39
  there.
• 10:39
  But,
• 10:40
  you
• 10:40
  know,
• 10:40
  we
• 10:40
  are
• 10:40
  contacting
• 10:41
  property
• 10:41
  owners
• 10:42
  directly.
• 10:43
  A
• 10:43
  lot
• 10:43
  of
• 10:43
  the
• 10:43
  time
• 10:44
  we
• 10:44
  are
• 10:44
  going
• 10:44
  and
• 10:44
  speaking
• 10:45
  with
• 10:45
  the
• 10:45
  town
• 10:45
  manager
• 10:46
  at
• 10:46
  different
• 10:46
  municipalities
• 10:47
  and
• 10:47
  saying,
• 10:48
  you
• 10:48
  know,
• 10:48
  we're
• 10:48
  asking
• 10:48
  them,
• 10:49
  is
• 10:49
  there
• 10:49
  a
• 10:49
  site
• 10:50
  that
• 10:50
  they
• 10:50
  have
• 10:50
  in
• 10:50
  mind
• 10:50
  for
• 10:51
  a
• 10:51
  project?
• 10:51
  Is
• 10:51
  there
• 10:52
  an
• 10:52
  area
• 10:52
  of
• 10:52
  the
• 10:53
  city
• 10:53
  that
• 10:54
  they
• 10:54
  would
• 10:54
  like
• 10:54
  to
• 10:54
  see
• 10:54
  improved
• 10:55
  or
• 10:55
  developed?
• 10:56
  Sometimes
• 10:56
  it
• 10:57
  may
• 10:57
  be
• 10:57
  a
• 10:57
  piece
• 10:57
  of
• 10:58
  land
• 10:58
  listed
• 10:58
  on
• 10:58
  the
• 10:58
  market
• 10:58
  by
• 10:59
  a
• 10:59
  broker.
• 10:59
  That's
• 11:00
  a
• 11:00
  rare
• 11:00
  case,
• 11:01
  but
• 11:01
  it's
• 11:01
  just
• 11:02
  more
• 11:02
  about,
• 11:02
  you
• 11:02
  know,
• 11:02
  networking,
• 11:03
  using
• 11:03
  your
• 11:03
  imagination.
• 11:04
  Maybe
• 11:05
  you
• 11:05
  Know,
• 11:05
  you
• 11:05
  drive
• 11:06
  by
• 11:06
  a
• 11:06
  property
• 11:07
  that's
• 11:07
  slighted
• 11:07
  or
• 11:07
  kind
• 11:07
  of
• 11:08
  like
• 11:08
  an
• 11:08
  eyesore,
• 11:08
  and
• 11:09
  you
• 11:09
  may
• 11:09
  think
• 11:09
  that's
• 11:09
  an
• 11:09
  awesome
• 11:10
  place
• 11:10
  to
• 11:10
  develop
• 11:10
  a
• 11:10
  multifamily
• 11:11
  project,
• 11:11
  so
• 11:12
  you
• 11:12
  go
• 11:12
  looking
• 11:12
  at
• 11:13
  that
• 11:13
  further.
• 11:13
  So,
• 11:14
  yeah,
• 11:14
  a
• 11:14
  combination
• 11:14
  of
• 11:14
  all
• 11:15
  those
• 11:15
  things.
• 11:15
  Erica,
• 11:15
  very
• 11:16
  neat.
• 11:16
  Awesome.
• 11:16
  So
• 11:17
  it
• 11:17
  sounds
• 11:18
  like
• 11:18
  you
• 11:18
  guys
• 11:18
  are
• 11:19
  finding
• 11:19
  ways,
• 11:19
  in
• 11:19
  spite
• 11:20
  of
• 11:20
  the
• 11:20
  challenging
• 11:21
  interest
• 11:21
  rate
• 11:21
  environment,
• 11:22
  to
• 11:22
  get
• 11:22
  deals
• 11:22
  done.
• 11:23
  So
• 11:23
  that
• 11:23
  definitely
• 11:23
  gives
• 11:24
  you
• 11:24
  a
• 11:24
  leg
• 11:24
  up
• 11:24
  over
• 11:24
  the
• 11:24
  competition.
• 11:25
  Do
• 11:25
  you
• 11:25
  find
• 11:26
  there's
• 11:26
  a
• 11:26
  lot
• 11:26
  of
• 11:26
  the
• 11:27
  competitors
• 11:27
  that
• 11:27
  are
• 11:27
  on
• 11:27
  the
• 11:28
  sidelines
• 11:28
  because
• 11:28
  of
• 11:28
  where
• 11:29
  interest
• 11:29
  rates
• 11:29
  are
• 11:29
  right
• 11:29
  now?
• 11:30
  Yeah,
• 11:30
  like
• 11:30
  I
• 11:30
  mentioned,
• 11:31
  there's
• 11:31
  not
• 11:32
  a
• 11:32
  lot
• 11:32
  of
• 11:32
  companies,
• 11:33
  at
• 11:33
  least
• 11:33
  that
• 11:33
  I'm
• 11:34
  seeing,
• 11:34
  are
• 11:34
  willing
• 11:35
  to
• 11:35
  work
• 11:36
  at
• 11:36
  the
• 11:36
  municipalities
• 11:37
  just
• 11:37
  because
• 11:37
  there
• 11:38
  is
• 11:38
  more
• 11:39
  red
• 11:39
  tape,
• 11:40
  more
• 11:40
  upfront
• 11:40
  work,
• 11:41
  more
• 11:41
  due
• 11:42
  diligence
• 11:42
  that
• 11:42
  you
• 11:42
  have
• 11:42
  to
• 11:42
  do
• 11:42
  in
• 11:43
  the
• 11:43
  beginning.
• 11:43
  You
• 11:43
  know,
• 11:43
  it
• 11:43
  might
• 11:44
  take
• 11:44
  nine
• 11:45
  months
• 11:45
  to
• 11:45
  a
• 11:45
  year
• 11:46
  before
• 11:46
  you
• 11:46
  even
• 11:46
  get
• 11:46
  a
• 11:46
  project,
• 11:47
  you
• 11:47
  know,
• 11:48
  closing
• 11:48
  and
• 11:49
  going
• 11:49
  off
• 11:49
  the
• 11:49
  ground.
• 11:50
  But,
• 11:50
  you
• 11:50
  know,
• 11:50
  we
• 11:50
  think
• 11:51
  doing
• 11:51
  that
• 11:51
  upfront
• 11:51
  work
• 11:52
  in
• 11:52
  the
• 11:52
  beginning
• 11:53
  is
• 11:53
  a
• 11:53
  lot
• 11:53
  more
• 11:54
  valuable
• 11:54
  in
• 11:54
  the
• 11:54
  long
• 11:55
  run
• 11:55
  and,
• 11:55
  you
• 11:55
  know,
• 11:56
  makes
• 11:56
  our
• 11:56
  basis
• 11:57
  lower
• 11:58
  on
• 11:58
  the
• 11:58
  project
• 11:58
  overall.
• 11:59
  And
• 12:00
  other
• 12:00
  companies,
• 12:00
  you
• 12:00
  know,
• 12:00
  just.
• 12:01
  It
• 12:01
  just
• 12:01
  depends
• 12:01
  on
• 12:02
  your
• 12:02
  business
• 12:02
  plan
• 12:03
  and
• 12:03
  what
• 12:03
  you're
• 12:03
  doing.
• 12:04
  Other
• 12:04
  companies
• 12:04
  that
• 12:05
  are
• 12:05
  developing
• 12:05
  the,
• 12:06
  you
• 12:06
  know,
• 12:06
  two,
• 12:07
  three,
• 12:07
  400
• 12:08
  unit
• 12:08
  properties,
• 12:09
  you
• 12:09
  know,
• 12:09
  I
• 12:09
  think
• 12:09
  that
• 12:10
  they're
• 12:10
  getting
• 12:10
  those
• 12:10
  deals
• 12:10
  that
• 12:11
  pencil
• 12:11
  out
• 12:11
  because,
• 12:12
  you
• 12:12
  know,
• 12:12
  they're
• 12:12
  just
• 12:13
  more
• 12:13
  transactional.
• 12:14
  They're
• 12:14
  taking
• 12:14
  more
• 12:15
  fees
• 12:15
  in
• 12:15
  the
• 12:16
  beginning.
• 12:16
  They're
• 12:16
  making
• 12:17
  money
• 12:17
  from
• 12:17
  their
• 12:17
  in
• 12:18
  house
• 12:18
  construction
• 12:18
  company,
• 12:19
  from
• 12:19
  their
• 12:19
  in
• 12:19
  house
• 12:20
  property
• 12:20
  management
• 12:20
  company.
• 12:21
  You
• 12:21
  know,
• 12:21
  I'm
• 12:21
  not
• 12:21
  saying
• 12:21
  it's
• 12:21
  right
• 12:22
  or
• 12:22
  wrong.
• 12:22
  It's
• 12:22
  just
• 12:23
  a
• 12:23
  whole
• 12:23
  different
• 12:24
  business
• 12:24
  plan.
• 12:24
  Those
• 12:25
  deals
• 12:25
  might
• 12:25
  be
• 12:26
  slimmer
• 12:26
  and
• 12:26
  more,
• 12:27
  you
• 12:27
  know,
• 12:27
  skinnier
• 12:28
  overall,
• 12:28
  but,
• 12:28
  you
• 12:29
  know,
• 12:29
  they're
• 12:29
  making
• 12:29
  money
• 12:30
  in
• 12:30
  different
• 12:30
  ways
• 12:31
  and
• 12:31
  more
• 12:31
  transaction.
• 12:32
  Would
• 12:32
  that
• 12:32
  make
• 12:33
  sense?
• 12:33
  Got
• 12:33
  it.
• 12:34
  One
• 12:34
  thing
• 12:34
  I've
• 12:34
  learned
• 12:35
  the
• 12:35
  last
• 12:35
  couple
• 12:35
  years,
• 12:35
  even
• 12:35
  in
• 12:36
  the
• 12:36
  value
• 12:36
  space,
• 12:36
  I
• 12:36
  think
• 12:37
  sometimes
• 12:37
  less
• 12:37
  transactions
• 12:38
  can
• 12:38
  be
• 12:38
  more
• 12:38
  so.
• 12:39
  It
• 12:39
  sounds
• 12:39
  like
• 12:39
  you're
• 12:39
  probably
• 12:40
  on
• 12:40
  the
• 12:40
  right
• 12:40
  approach
• 12:40
  there
• 12:40
  with
• 12:41
  development.
• 12:41
  That's,
• 12:41
  that's,
• 12:42
  you
• 12:42
  know,
• 12:42
  taking
• 12:42
  those
• 12:43
  skinny
• 12:43
  deals
• 12:43
  can
• 12:43
  get
• 12:43
  risky.
• 12:44
  Right.
• 12:44
  Because
• 12:44
  you
• 12:44
  wind
• 12:44
  up
• 12:44
  in
• 12:45
  trouble
• 12:45
  sometimes
• 12:45
  if
• 12:45
  things
• 12:46
  don't
• 12:46
  go
• 12:46
  100%
• 12:46
  as
• 12:47
  you
• 12:47
  expect,
• 12:47
  that
• 12:47
  it
• 12:48
  makes
• 12:48
  it,
• 12:48
  you
• 12:48
  know,
• 12:49
  what
• 12:49
  should
• 12:49
  have
• 12:49
  been
• 12:49
  a
• 12:49
  decent
• 12:50
  deal
• 12:50
  and
• 12:50
  not
• 12:50
  so
• 12:51
  great
• 12:51
  deal.
• 12:51
  So
• 12:52
  taking
• 12:52
  less
• 12:52
  and
• 12:52
  doing
• 12:53
  more
• 12:53
  work
• 12:53
  on
• 12:53
  the
• 12:53
  front
• 12:54
  end
• 12:54
  sounds
• 12:54
  like
• 12:54
  a
• 12:54
  really
• 12:54
  safe
• 12:55
  approach.
• 12:55
  I
• 12:55
  love
• 12:55
  that.
• 12:55
  Of
• 12:56
  course,
• 12:56
  Yeah.
• 12:56
  I
• 12:56
  mean,
• 12:56
  quality
• 12:57
  over
• 12:57
  quantity
• 12:58
  has
• 12:58
  always
• 12:58
  been
• 12:59
  a
• 12:59
  good
• 12:59
  model
• 12:59
  of
• 12:59
  mine
• 12:59
  to
• 13:00
  live
• 13:00
  by.
• 13:00
  You
• 13:00
  know,
• 13:00
  if
• 13:01
  you
• 13:01
  don't
• 13:01
  have
• 13:01
  a
• 13:01
  lot
• 13:01
  of
• 13:02
  margin
• 13:02
  for
• 13:02
  error
• 13:03
  in
• 13:03
  your
• 13:03
  deals,
• 13:04
  I
• 13:04
  mean.
• 13:04
  Yeah,
• 13:04
  it
• 13:04
  just
• 13:04
  Makes
• 13:05
  them
• 13:05
  overall
• 13:06
  skinnier,
• 13:06
  risky.
• 13:07
  And
• 13:07
  in
• 13:07
  the
• 13:07
  end,
• 13:08
  I
• 13:08
  mean,
• 13:08
  you
• 13:08
  just
• 13:08
  put
• 13:09
  more
• 13:09
  risk
• 13:09
  on
• 13:09
  your
• 13:09
  investors.
• 13:10
  So
• 13:11
  one
• 13:11
  thing
• 13:11
  I
• 13:11
  know
• 13:11
  you
• 13:11
  have
• 13:11
  a
• 13:11
  lot
• 13:11
  of
• 13:12
  experience
• 13:12
  with
• 13:12
  is
• 13:13
  underwriting.
• 13:13
  You
• 13:13
  know,
• 13:13
  with
• 13:14
  the
• 13:14
  different
• 13:14
  perspectives
• 13:14
  you've
• 13:15
  had,
• 13:15
  you
• 13:15
  know,
• 13:15
  working
• 13:15
  for
• 13:16
  a
• 13:16
  lender,
• 13:16
  finding
• 13:17
  your
• 13:17
  own
• 13:17
  deals,
• 13:18
  running
• 13:18
  your
• 13:18
  own
• 13:18
  deals.
• 13:19
  What
• 13:19
  tips
• 13:19
  do
• 13:19
  you
• 13:20
  have
• 13:20
  for
• 13:20
  somebody
• 13:20
  who's
• 13:21
  starting
• 13:21
  out?
• 13:21
  I
• 13:21
  know
• 13:21
  you
• 13:22
  have
• 13:22
  a
• 13:22
  lot
• 13:22
  of
• 13:22
  proficiency
• 13:23
  there.
• 13:23
  Quickly,
• 13:23
  like,
• 13:23
  speaking
• 13:24
  on
• 13:24
  the
• 13:24
  underwriting,
• 13:24
  like,
• 13:24
  how
• 13:25
  to
• 13:25
  learn
• 13:25
  underwriting.
• 13:26
  Yeah,
• 13:26
  you
• 13:26
  know,
• 13:27
  I
• 13:27
  know
• 13:27
  expert
• 13:28
  level
• 13:28
  underwriting
• 13:28
  strategies
• 13:29
  is
• 13:29
  definitely
• 13:29
  something
• 13:29
  you
• 13:30
  have,
• 13:30
  you
• 13:30
  know,
• 13:30
  a
• 13:30
  lot
• 13:30
  of.
• 13:31
  A
• 13:31
  lot
• 13:31
  of
• 13:31
  expertise
• 13:31
  with.
• 13:32
  I
• 13:32
  would
• 13:32
  recommend,
• 13:32
  if
• 13:33
  you're
• 13:33
  wanting
• 13:33
  to
• 13:33
  learn
• 13:33
  underwriting,
• 13:34
  I
• 13:34
  mean,
• 13:34
  definitely
• 13:34
  just,
• 13:35
  you
• 13:35
  know,
• 13:35
  look
• 13:35
  for
• 13:35
  somebody
• 13:36
  who's
• 13:36
  already,
• 13:36
  you
• 13:37
  know,
• 13:37
  doing
• 13:37
  deals
• 13:38
  that
• 13:38
  you
• 13:38
  want
• 13:38
  to
• 13:38
  do.
• 13:38
  Like,
• 13:39
  talk
• 13:39
  to
• 13:39
  them
• 13:39
  about
• 13:39
  how
• 13:40
  they
• 13:40
  learned
• 13:40
  underwriting.
• 13:41
  You
• 13:41
  know,
• 13:41
  look
• 13:41
  at
• 13:41
  deals
• 13:42
  they're
• 13:42
  doing,
• 13:42
  how
• 13:42
  they're
• 13:43
  underwriting
• 13:43
  them,
• 13:43
  network
• 13:44
  with
• 13:44
  them.
• 13:44
  On
• 13:44
  top
• 13:45
  of
• 13:45
  that,
• 13:45
  you
• 13:45
  know,
• 13:45
  there's
• 13:45
  tons
• 13:46
  of
• 13:46
  information
• 13:46
  out
• 13:47
  there.
• 13:47
  YouTube,
• 13:48
  podcasts,
• 13:49
  different
• 13:49
  online
• 13:49
  courses.
• 13:50
  You
• 13:50
  know,
• 13:50
  in
• 13:51
  the
• 13:51
  beginning,
• 13:51
  that's
• 13:51
  at
• 13:51
  least
• 13:51
  what
• 13:52
  I
• 13:52
  did.
• 13:52
  You
• 13:52
  know,
• 13:52
  just
• 13:52
  did
• 13:53
  a
• 13:53
  lot
• 13:53
  of
• 13:53
  networking,
• 13:53
  took
• 13:54
  courses
• 13:54
  online,
• 13:55
  watched
• 13:55
  YouTube
• 13:56
  videos.
• 13:56
  Working
• 13:57
  the
• 13:57
  bank
• 13:57
  was
• 13:57
  certainly
• 13:58
  helpful
• 13:58
  as
• 13:58
  well.
• 13:59
  But
• 13:59
  yeah,
• 13:59
  you
• 14:00
  need
• 14:00
  to,
• 14:00
  like,
• 14:00
  immerse
• 14:00
  yourself
• 14:01
  in
• 14:01
  the
• 14:02
  space
• 14:02
  and
• 14:02
  just
• 14:03
  take
• 14:03
  up
• 14:03
  as
• 14:03
  many
• 14:03
  resources
• 14:03
  as
• 14:04
  you
• 14:04
  can
• 14:04
  and,
• 14:05
  you
• 14:05
  know,
• 14:05
  learn
• 14:05
  from
• 14:05
  what's
• 14:05
  out
• 14:06
  there.
• 14:06
  And
• 14:06
  on
• 14:07
  the
• 14:07
  underwriting
• 14:07
  process
• 14:08
  of
• 14:08
  the
• 14:08
  development,
• 14:09
  I
• 14:09
  imagine
• 14:09
  at
• 14:09
  the
• 14:10
  very
• 14:10
  beginning
• 14:10
  that
• 14:10
  you
• 14:11
  weren't
• 14:11
  aware
• 14:11
  of
• 14:11
  what
• 14:11
  the
• 14:11
  costs
• 14:12
  were
• 14:12
  of
• 14:12
  permitting
• 14:13
  fees
• 14:13
  and
• 14:14
  building
• 14:14
  fees
• 14:14
  and
• 14:14
  all
• 14:14
  of
• 14:14
  those
• 14:15
  things.
• 14:15
  You
• 14:16
  worked
• 14:16
  really
• 14:16
  closely
• 14:16
  with
• 14:16
  the
• 14:17
  city
• 14:17
  manager
• 14:17
  in
• 14:17
  order
• 14:18
  to
• 14:18
  find
• 14:18
  out
• 14:18
  those
• 14:18
  things
• 14:19
  for
• 14:19
  your
• 14:19
  underwriting
• 14:19
  process
• 14:20
  on
• 14:20
  development.
• 14:21
  What
• 14:21
  did
• 14:21
  that
• 14:21
  look
• 14:21
  like?
• 14:22
  Yeah,
• 14:22
  great
• 14:22
  question.
• 14:23
  I
• 14:23
  actually
• 14:24
  went
• 14:24
  and
• 14:24
  spoke
• 14:24
  to
• 14:25
  another
• 14:25
  developer
• 14:26
  that
• 14:26
  is
• 14:26
  doing
• 14:27
  very
• 14:28
  similar
• 14:28
  quality
• 14:28
  deals
• 14:29
  that
• 14:29
  I
• 14:29
  want
• 14:29
  to
• 14:29
  do.
• 14:30
  And
• 14:30
  so
• 14:30
  I
• 14:30
  was
• 14:30
  actually
• 14:31
  able
• 14:31
  to,
• 14:31
  you
• 14:31
  know,
• 14:32
  leverage
• 14:32
  their
• 14:32
  knowledge,
• 14:33
  expertise.
• 14:33
  I
• 14:34
  looked
• 14:34
  at
• 14:34
  past
• 14:35
  budgets
• 14:35
  they
• 14:35
  had
• 14:36
  on
• 14:36
  their
• 14:36
  projects
• 14:37
  previously
• 14:38
  and
• 14:38
  use
• 14:38
  that
• 14:39
  as,
• 14:39
  like,
• 14:39
  some
• 14:39
  sample
• 14:40
  data
• 14:40
  to
• 14:41
  use
• 14:41
  when
• 14:41
  I'm
• 14:42
  underwriting
• 14:42
  my
• 14:43
  projects.
• 14:43
  On
• 14:43
  top
• 14:43
  of
• 14:44
  that,
• 14:44
  you
• 14:44
  know,
• 14:44
  I've
• 14:44
  already
• 14:45
  networked
• 14:45
  with
• 14:45
  other
• 14:45
  companies
• 14:46
  in
• 14:46
  the
• 14:46
  area
• 14:46
  as
• 14:46
  far
• 14:47
  as
• 14:47
  construction
• 14:47
  companies,
• 14:48
  architects,
• 14:49
  civil
• 14:49
  engineers.
• 14:50
  You
• 14:50
  know,
• 14:50
  when
• 14:51
  you
• 14:51
  really
• 14:52
  spend
• 14:52
  time
• 14:52
  in
• 14:53
  the
• 14:53
  beginning
• 14:53
  developing
• 14:54
  those
• 14:55
  relationships,
• 14:55
  you
• 14:55
  know,
• 14:55
  you
• 14:55
  can
• 14:56
  quickly
• 14:56
  send
• 14:57
  an
• 14:57
  email
• 14:57
  to
• 14:57
  somebody
• 14:58
  or
• 14:58
  call
• 14:58
  somebody
• 14:58
  on
• 14:58
  the
• 14:59
  phone,
• 14:59
  ask
• 14:59
  them
• 14:59
  about
• 15:00
  something.
• 15:00
  So
• 15:01
  networking
• 15:01
  is,
• 15:01
  like,
• 15:02
  really
• 15:02
  important
• 15:02
  in
• 15:02
  the
• 15:02
  beginning,
• 15:02
  and
• 15:03
  I've
• 15:03
  sort
• 15:03
  of
• 15:03
  used
• 15:03
  those
• 15:04
  relationships
• 15:04
  to,
• 15:05
  you
• 15:05
  know,
• 15:05
  understand
• 15:05
  what
• 15:06
  the
• 15:06
  numbers
• 15:06
  could
• 15:06
  be
• 15:06
  like
• 15:07
  in
• 15:07
  the
• 15:07
  beginning.
• 15:07
  That's
• 15:08
  awesome.
• 15:08
  What
• 15:08
  relationships
• 15:09
  would
• 15:09
  you
• 15:09
  say
• 15:09
  were
• 15:10
  the
• 15:10
  most
• 15:10
  important
• 15:10
  for
• 15:10
  you
• 15:11
  to
• 15:11
  consolidate
• 15:12
  and
• 15:12
  make
• 15:12
  sure
• 15:12
  that
• 15:12
  you
• 15:12
  had
• 15:12
  at
• 15:13
  the
• 15:13
  beginning?
• 15:13
  Mostly
• 15:13
  just
• 15:14
  other
• 15:14
  developers.
• 15:14
  Other
• 15:15
  developers
• 15:15
  that
• 15:15
  are
• 15:16
  in
• 15:16
  my
• 15:16
  own
• 15:16
  local
• 15:17
  city
• 15:17
  that
• 15:17
  are
• 15:18
  doing
• 15:18
  similar
• 15:18
  things
• 15:19
  that
• 15:19
  I
• 15:19
  want
• 15:19
  to
• 15:19
  do.
• 15:20
  I've
• 15:20
  found
• 15:20
  ways
• 15:21
  to
• 15:21
  network
• 15:22
  with
• 15:22
  them,
• 15:23
  take
• 15:23
  them
• 15:23
  out
• 15:23
  to
• 15:23
  lunch,
• 15:24
  schedule
• 15:24
  short
• 15:24
  meetings
• 15:24
  in
• 15:25
  their
• 15:25
  offices,
• 15:25
  you
• 15:25
  know,
• 15:26
  and
• 15:26
  just
• 15:26
  pick
• 15:26
  their
• 15:26
  brain
• 15:26
  about
• 15:27
  development
• 15:28
  costs,
• 15:28
  budgets,
• 15:29
  mistakes
• 15:29
  they've
• 15:30
  made
• 15:30
  on
• 15:30
  their
• 15:30
  previous
• 15:30
  deals.
• 15:31
  I
• 15:31
  mean,
• 15:31
  that's
• 15:31
  just
• 15:31
  like
• 15:31
  a
• 15:32
  superpower
• 15:32
  that
• 15:32
  I've
• 15:32
  done
• 15:32
  in
• 15:33
  past
• 15:33
  is
• 15:33
  just
• 15:33
  networking
• 15:34
  and
• 15:34
  just
• 15:35
  meeting
• 15:35
  as
• 15:35
  many
• 15:35
  different
• 15:35
  people
• 15:35
  as
• 15:36
  I
• 15:36
  can.
• 15:36
  Very
• 15:36
  cool.
• 15:37
  So.
• 15:37
  So,
• 15:38
  Justin,
• 15:38
  I
• 15:38
  know
• 15:39
  you
• 15:39
  have
• 15:39
  a
• 15:40
  passive
• 15:40
  investor
• 15:41
  course.
• 15:41
  What
• 15:42
  information
• 15:42
  would
• 15:42
  you
• 15:43
  give
• 15:43
  for
• 15:43
  a
• 15:43
  passive
• 15:43
  investor
• 15:44
  to
• 15:44
  just
• 15:44
  starting
• 15:45
  out?
• 15:45
  How
• 15:45
  should
• 15:45
  they
• 15:45
  be
• 15:45
  vetting
• 15:46
  a
• 15:46
  sponsor
• 15:47
  before
• 15:47
  committing
• 15:47
  capital?
• 15:48
  Yeah,
• 15:48
  great
• 15:48
  question,
• 15:49
  Charles.
• 15:49
  I
• 15:50
  would
• 15:50
  really
• 15:50
  look
• 15:50
  for
• 15:50
  a
• 15:51
  sponsor
• 15:51
  that,
• 15:52
  you
• 15:52
  know,
• 15:52
  you
• 15:53
  can
• 15:53
  know,
• 15:53
  like
• 15:54
  and
• 15:54
  trust.
• 15:54
  What
• 15:54
  I
• 15:54
  mean
• 15:55
  by
• 15:55
  that
• 15:55
  is,
• 15:56
  you
• 15:56
  know,
• 15:56
  you
• 15:56
  really
• 15:56
  want
• 15:56
  to
• 15:57
  understand
• 15:58
  who
• 15:58
  you're
• 15:58
  investing
• 15:59
  with.
• 15:59
  You
• 15:59
  know,
• 15:59
  we
• 15:59
  all
• 15:59
  know
• 16:00
  the
• 16:00
  deal
• 16:00
  is
• 16:00
  obviously
• 16:01
  important,
• 16:02
  really
• 16:02
  critical,
• 16:03
  but
• 16:03
  at
• 16:03
  the
• 16:03
  end
• 16:03
  of
• 16:03
  the
• 16:04
  day,
• 16:04
  you
• 16:04
  are
• 16:05
  investing
• 16:05
  in
• 16:06
  that
• 16:06
  company.
• 16:06
  So
• 16:07
  what
• 16:07
  I
• 16:07
  would
• 16:07
  recommend
• 16:08
  is
• 16:08
  get,
• 16:08
  you
• 16:09
  know,
• 16:09
  investor
• 16:09
  references
• 16:10
  from
• 16:10
  their
• 16:10
  past
• 16:11
  projects.
• 16:11
  You
• 16:12
  know,
• 16:12
  verify
• 16:12
  the
• 16:12
  performance,
• 16:13
  performance
• 16:13
  of
• 16:14
  their
• 16:14
  past
• 16:14
  and
• 16:15
  current
• 16:15
  deals.
• 16:15
  It's
• 16:16
  easy
• 16:16
  to
• 16:16
  see
• 16:17
  like
• 16:17
  projects
• 16:18
  and
• 16:18
  pictures
• 16:18
  like
• 16:18
  on
• 16:18
  their
• 16:19
  website,
• 16:19
  but,
• 16:20
  you
• 16:20
  know,
• 16:20
  really
• 16:20
  like,
• 16:20
  ask
• 16:21
  the
• 16:21
  sponsor
• 16:22
  for
• 16:22
  legitimate
• 16:23
  information
• 16:23
  about
• 16:24
  how
• 16:24
  you
• 16:24
  can
• 16:24
  verify
• 16:24
  those
• 16:25
  numbers
• 16:25
  of
• 16:25
  what
• 16:25
  they're
• 16:26
  showcasing
• 16:26
  or
• 16:27
  not
• 16:27
  showcasing
• 16:28
  on
• 16:28
  the
• 16:28
  website.
• 16:29
  And
• 16:29
  additionally,
• 16:29
  you
• 16:30
  can
• 16:30
  do
• 16:30
  background
• 16:30
  checks.
• 16:31
  I
• 16:31
  don't
• 16:31
  hear
• 16:32
  a
• 16:32
  lot
• 16:32
  of
• 16:32
  people
• 16:32
  talk
• 16:32
  about
• 16:32
  that.
• 16:33
  It's
• 16:33
  a
• 16:33
  really
• 16:34
  simple
• 16:34
  process
• 16:34
  to
• 16:35
  run
• 16:35
  a
• 16:35
  background
• 16:35
  check
• 16:35
  on
• 16:36
  somebody
• 16:36
  and,
• 16:37
  you
• 16:37
  know,
• 16:37
  see
• 16:37
  what
• 16:37
  has
• 16:38
  happened
• 16:38
  in
• 16:38
  the
• 16:38
  past
• 16:38
  as
• 16:39
  far
• 16:39
  as
• 16:39
  like
• 16:39
  litigations
• 16:40
  and
• 16:40
  things
• 16:40
  like
• 16:40
  that.
• 16:41
  All
• 16:41
  those
• 16:41
  things
• 16:41
  are
• 16:41
  really
• 16:42
  simple.
• 16:42
  But
• 16:42
  one
• 16:43
  of
• 16:43
  the
• 16:43
  most
• 16:43
  important
• 16:44
  things
• 16:44
  I
• 16:44
  can
• 16:44
  tell
• 16:44
  investors
• 16:45
  is
• 16:45
  just,
• 16:45
  you
• 16:45
  know,
• 16:46
  know
• 16:46
  who
• 16:46
  you're
• 16:46
  investing
• 16:47
  with
• 16:47
  and.
• 16:47
  If
• 16:47
  somebody
• 16:48
  was
• 16:48
  to
• 16:48
  invest
• 16:48
  with
• 16:48
  you,
• 16:49
  you
• 16:49
  know,
• 16:50
  what's
• 16:50
  the
• 16:51
  type
• 16:51
  of
• 16:51
  update
• 16:51
  that
• 16:52
  you
• 16:52
  provide?
• 16:52
  What
• 16:52
  should
• 16:52
  they
• 16:53
  expect?
• 16:53
  So
• 16:53
  for
• 16:53
  somebody
• 16:54
  just
• 16:54
  starting
• 16:54
  out
• 16:54
  that
• 16:55
  doesn't
• 16:55
  know,
• 16:55
  what's
• 16:56
  a
• 16:56
  good
• 16:56
  standard
• 16:56
  for
• 16:57
  them
• 16:57
  to.
• 16:57
  To
• 16:57
  be
• 16:57
  expecting
• 16:58
  that
• 16:58
  in
• 16:58
  the
• 16:58
  beginning.
• 16:59
  Yep.
• 16:59
  Yeah.
• 17:00
  So
• 17:00
  what
• 17:00
  happens
• 17:01
  first
• 17:01
  is
• 17:01
  you
• 17:01
  just
• 17:01
  go
• 17:01
  to
• 17:01
  my
• 17:02
  website
• 17:02
  at
• 17:02
  goodindevelopment.
• 17:03
  I
• 17:03
  have
• 17:03
  a
• 17:03
  simple
• 17:04
  form
• 17:04
  that
• 17:04
  you
• 17:04
  can
• 17:04
  go
• 17:05
  and
• 17:05
  fill
• 17:05
  out
• 17:05
  on
• 17:06
  our
• 17:06
  Invest
• 17:06
  with
• 17:06
  us
• 17:07
  page.
• 17:07
  After
• 17:08
  that,
• 17:08
  we
• 17:08
  can
• 17:08
  hop
• 17:08
  on
• 17:08
  the
• 17:09
  call,
• 17:09
  we
• 17:09
  can
• 17:09
  talk
• 17:09
  about
• 17:10
  your
• 17:10
  investing
• 17:10
  goals,
• 17:11
  what
• 17:11
  you're
• 17:11
  looking
• 17:12
  to
• 17:12
  invest
• 17:12
  in,
• 17:12
  some
• 17:13
  investing
• 17:13
  strategies
• 17:13
  that
• 17:14
  may
• 17:14
  be
• 17:14
  of
• 17:14
  interest
• 17:14
  to
• 17:15
  you,
• 17:15
  and
• 17:15
  then
• 17:15
  we
• 17:15
  kind
• 17:16
  of
• 17:16
  just
• 17:16
  see
• 17:16
  if
• 17:16
  it's
• 17:16
  a
• 17:16
  good
• 17:16
  fit
• 17:17
  to
• 17:17
  together
• 17:17
  in
• 17:17
  the
• 17:18
  past
• 17:18
  or
• 17:18
  in
• 17:18
  the
• 17:18
  future.
• 17:18
  I
• 17:19
  should
• 17:19
  say
• 17:19
  if
• 17:19
  it
• 17:19
  is,
• 17:20
  we'll
• 17:20
  keep
• 17:20
  you
• 17:20
  on
• 17:20
  our
• 17:20
  investor
• 17:21
  list.
• 17:21
  We'll
• 17:21
  keep
• 17:21
  you
• 17:22
  updated
• 17:22
  with
• 17:22
  stuff
• 17:22
  we're
• 17:22
  working
• 17:23
  on.
• 17:23
  And
• 17:23
  then
• 17:23
  when
• 17:23
  we
• 17:24
  have
• 17:24
  something,
• 17:25
  you
• 17:25
  know,
• 17:25
  we
• 17:25
  typically
• 17:25
  send
• 17:25
  out
• 17:26
  a
• 17:26
  mass
• 17:27
  email
• 17:27
  notification
• 17:28
  to
• 17:28
  our
• 17:28
  investor
• 17:29
  list
• 17:29
  and
• 17:29
  then
• 17:29
  we
• 17:30
  can
• 17:30
  go
• 17:30
  from
• 17:30
  there
• 17:30
  as
• 17:30
  far
• 17:31
  as
• 17:31
  that's
• 17:31
  another
• 17:32
  call.
• 17:32
  You
• 17:32
  can
• 17:32
  watch
• 17:32
  a
• 17:33
  webinar
• 17:33
  and
• 17:33
  then
• 17:34
  see
• 17:34
  if
• 17:34
  that's
• 17:34
  a
• 17:34
  good
• 17:34
  fit
• 17:35
  for
• 17:35
  you.
• 17:35
  Awesome.
• 17:36
  So,
• 17:36
  yep,
• 17:37
  go
• 17:37
  for
• 17:37
  it.
• 17:37
  Erica.
• 17:38
  I
• 17:38
  guess
• 17:38
  I
• 17:38
  can
• 17:38
  imagine
• 17:39
  that
• 17:39
  it
• 17:39
  gets
• 17:40
  very
• 17:40
  frustrating
• 17:40
  for
• 17:40
  people
• 17:41
  getting
• 17:41
  into
• 17:41
  investing.
• 17:42
  Maybe,
• 17:42
  you
• 17:42
  know,
• 17:43
  have
• 17:43
  a
• 17:43
  really
• 17:43
  good
• 17:43
  paying
• 17:44
  W2
• 17:44
  salary
• 17:45
  position
• 17:45
  and
• 17:46
  want
• 17:46
  to
• 17:46
  get
• 17:46
  into
• 17:46
  real
• 17:46
  estate
• 17:46
  investing.
• 17:47
  I
• 17:47
  see
• 17:47
  quite
• 17:47
  often
• 17:48
  where
• 17:48
  they
• 17:48
  attempt
• 17:48
  to
• 17:48
  do
• 17:48
  fix
• 17:49
  and
• 17:49
  flips
• 17:49
  and
• 17:50
  all
• 17:50
  of
• 17:50
  those
• 17:50
  things
• 17:50
  to
• 17:51
  scale
• 17:51
  in.
• 17:51
  What
• 17:51
  would
• 17:52
  you
• 17:52
  say
• 17:52
  is
• 17:52
  the
• 17:52
  biggest
• 17:52
  benefit
• 17:53
  of
• 17:53
  investing
• 17:54
  with
• 17:54
  someone
• 17:54
  like
• 17:54
  yourself
• 17:55
  versus
• 17:56
  trying
• 17:56
  to
• 17:56
  do
• 17:56
  fix
• 17:56
  and
• 17:56
  flips
• 17:57
  or
• 17:57
  wholesaling
• 17:57
  or
• 17:58
  any
• 17:58
  of
• 17:58
  those
• 17:58
  other
• 17:58
  strategies?
• 17:59
  Question.
• 17:59
  Let's
• 18:00
  say,
• 18:00
  you
• 18:00
  know,
• 18:00
  when
• 18:00
  you're
• 18:01
  investing
• 18:02
  with
• 18:02
  a
• 18:03
  operator
• 18:03
  or
• 18:03
  developer,
• 18:04
  I
• 18:04
  mean
• 18:04
  it's
• 18:05
  truly
• 18:05
  a
• 18:05
  hands
• 18:06
  off
• 18:06
  investment
• 18:06
  for
• 18:07
  you.
• 18:07
  The
• 18:08
  only
• 18:08
  part
• 18:08
  of
• 18:08
  the
• 18:09
  investment
• 18:09
  is
• 18:09
  where
• 18:09
  it's
• 18:10
  not
• 18:10
  passive
• 18:10
  is
• 18:11
  in
• 18:11
  the
• 18:11
  beginning,
• 18:11
  like
• 18:12
  I
• 18:12
  just
• 18:12
  mentioned,
• 18:12
  where
• 18:12
  you're
• 18:13
  researching
• 18:13
  the
• 18:13
  sponsor,
• 18:14
  researching
• 18:14
  the
• 18:15
  company
• 18:15
  and
• 18:15
  looking
• 18:15
  at
• 18:15
  their
• 18:16
  values,
• 18:16
  their
• 18:16
  past
• 18:17
  projects.
• 18:17
  In
• 18:18
  the
• 18:18
  beginning,
• 18:18
  it's
• 18:18
  like
• 18:18
  the
• 18:18
  only
• 18:19
  part
• 18:19
  that
• 18:19
  is
• 18:20
  not
• 18:20
  passive
• 18:21
  for
• 18:21
  the
• 18:21
  investor.
• 18:22
  So
• 18:22
  if
• 18:22
  you're
• 18:23
  looking
• 18:23
  for
• 18:23
  a
• 18:23
  completely,
• 18:24
  you
• 18:24
  know,
• 18:24
  hands
• 18:25
  off
• 18:25
  investment
• 18:25
  where
• 18:26
  you're
• 18:26
  going
• 18:26
  to
• 18:26
  trust
• 18:27
  the
• 18:27
  developer
• 18:28
  to
• 18:28
  execute
• 18:28
  on
• 18:28
  the
• 18:29
  business
• 18:29
  plan,
• 18:29
  deliver
• 18:30
  those
• 18:30
  returns
• 18:30
  that
• 18:31
  they
• 18:31
  talked
• 18:31
  about
• 18:31
  in
• 18:31
  the
• 18:32
  beginning,
• 18:32
  you
• 18:32
  know,
• 18:32
  investing
• 18:33
  in
• 18:33
  a
• 18:34
  syndication
• 18:34
  or
• 18:35
  development
• 18:35
  project
• 18:36
  will
• 18:36
  be
• 18:36
  the
• 18:36
  best
• 18:36
  fit
• 18:37
  for
• 18:37
  you
• 18:37
  simply
• 18:38
  because
• 18:38
  it
• 18:38
  allows
• 18:38
  you
• 18:38
  to
• 18:39
  focus
• 18:39
  on
• 18:39
  your
• 18:40
  busy
• 18:40
  career,
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  spend
• 18:40
  more
• 18:41
  time
• 18:41
  with
• 18:41
  your
• 18:41
  family.
• 18:41
  You
• 18:41
  know,
• 18:42
  you're
• 18:42
  not
• 18:42
  spending
• 18:43
  Saturdays
• 18:43
  repainting
• 18:44
  a
• 18:44
  rental
• 18:44
  or
• 18:45
  doing
• 18:45
  a
• 18:45
  fix
• 18:46
  and
• 18:46
  flip.
• 18:46
  You
• 18:46
  know,
• 18:46
  it's
• 18:47
  really
• 18:47
  a
• 18:47
  hands
• 18:48
  off
• 18:48
  investment
• 18:48
  for
• 18:48
  you
• 18:49
  after
• 18:49
  you
• 18:49
  make
• 18:49
  that
• 18:50
  initial
• 18:50
  investment.
• 18:51
  Very
• 18:51
  cool.
• 18:51
  Awesome.
• 18:52
  Well,
• 18:52
  Justin,
• 18:53
  we
• 18:53
  appreciate
• 18:53
  you
• 18:53
  joining
• 18:54
  us
• 18:54
  today.
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  I
• 18:55
  know
• 18:55
  that
• 18:55
  you
• 18:55
  have
• 18:55
  a.
• 18:56
  Excuse
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  me,
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  A
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  a
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• 18:59
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• 18:59
  investing
• 18:59
  course.
• 19:00
  Do
• 19:00
  you
• 19:00
  want
• 19:00
  to
• 19:00
  tell
• 19:00
  the
• 19:00
  listeners
• 19:01
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• 19:01
  that?
• 19:01
  Yeah,
• 19:01
  of
• 19:02
  course.
• 19:02
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• 19:02
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• 19:02
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• 19:02
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• 19:03
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• 19:05
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• 19:06
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• 19:11
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• 19:12
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  a
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  a
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• 19:19
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• 19:20
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• 19:21
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• 19:21
  best
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• 19:22
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• 19:23
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• 19:23
  money.
• 19:23
  Awesome.
• 19:24
  And
• 19:24
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• 19:25
  where
• 19:25
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  listeners
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• 19:26
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• 19:27
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• 19:27
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• 19:28
  Yeah,
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• 19:28
  really
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  on
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• 19:31
  Gooden,
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• 19:32
  And
• 19:32
  of
• 19:32
  course,
• 19:33
  at
• 19:33
  goodindevelopment.com
• 19:35
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• 19:35
  my
• 19:35
  social
• 19:35
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• 19:36
  will
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• 19:36
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