Latest / MPI Multifamily Commercial Real Estate Investing / From Finding to Funding: Your Roadmap to Multifamily Investing

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From Finding to Funding: Your Roadmap to Multifamily Investing · MPI Multifamily Commercial Real Estate Investing

• 1:17
  You're
• 1:17
  listening
• 1:17
  to
• 1:17
  the
• 1:18
  Master
• 1:18
  Passive
• 1:18
  Income
• 1:19
  Podcast
• 1:19
  Network.
• 1:23
  Hey
• 1:23
  guys.
• 1:23
  Welcome
• 1:24
  to
• 1:24
  the
• 1:24
  Master
• 1:25
  Passive
• 1:25
  Income
• 1:26
  Multifamily
• 1:26
  Podcast.
• 1:27
  Charles
• 1:27
  Seaman
• 1:28
  here
• 1:28
  with
• 1:28
  Erica
• 1:28
  McNew.
• 1:29
  Hey
• 1:29
  guys.
• 1:30
  Today
• 1:30
  we're
• 1:30
  going
• 1:30
  to
• 1:30
  be
• 1:31
  talking
• 1:31
  about
• 1:32
  finding,
• 1:32
  underwriting
• 1:33
  and
• 1:33
  funding
• 1:34
  multifamily
• 1:35
  deals.
• 1:39
  Welcome
• 1:39
  to
• 1:39
  the
• 1:39
  Master
• 1:40
  Passive
• 1:40
  Income
• 1:41
  Multifamily.
• 1:42
  Podcast
• 1:43
  where
• 1:43
  we
• 1:43
  guide
• 1:43
  you
• 1:43
  to
• 1:44
  invest.
• 1:44
  In
• 1:44
  commercial
• 1:45
  real
• 1:45
  estate
• 1:45
  with
• 1:45
  a
• 1:46
  special
• 1:46
  focus
• 1:47
  on
• 1:47
  raising
• 1:47
  money
• 1:48
  from
• 1:48
  others
• 1:49
  to
• 1:49
  buy
• 1:49
  bigger
• 1:49
  and
• 1:50
  better
• 1:50
  deals.
• 1:51
  And
• 1:51
  now,
• 1:51
  here
• 1:51
  are
• 1:52
  your
• 1:52
  hosts,
• 1:52
  Charles
• 1:53
  seaman
• 1:53
  and
• 1:53
  Erica
• 1:54
  McNew.
• 1:58
  Erica,
• 1:59
  I'll
• 1:59
  turn
• 1:59
  it
• 1:59
  over
• 1:59
  to
• 1:59
  you
• 2:00
  because
• 2:00
  you
• 2:00
  have
• 2:00
  the
• 2:00
  resident
• 2:01
  real
• 2:01
  estate
• 2:01
  agent
• 2:01
  in
• 2:02
  the
• 2:02
  room
• 2:02
  so
• 2:02
  you
• 2:02
  can
• 2:02
  talk
• 2:02
  about
• 2:03
  finding
• 2:03
  deals.
• 2:04
  Absolutely.
• 2:05
  First
• 2:06
  and
• 2:06
  foremost,
• 2:07
  you
• 2:07
  want
• 2:07
  a
• 2:08
  really
• 2:08
  great
• 2:08
  real
• 2:09
  estate
• 2:09
  broker
• 2:09
  like
• 2:10
  myself.
• 2:10
  And
• 2:11
  again,
• 2:11
  it
• 2:11
  just
• 2:11
  goes
• 2:11
  back
• 2:12
  to
• 2:12
  relationships.
• 2:13
  And
• 2:13
  these
• 2:13
  are
• 2:13
  relationships
• 2:14
  with
• 2:14
  people
• 2:14
  in
• 2:14
  the
• 2:15
  market
• 2:15
  that
• 2:15
  I've
• 2:15
  built
• 2:15
  for
• 2:15
  the
• 2:16
  last
• 2:16
  nine
• 2:16
  years.
• 2:17
  And
• 2:17
  so
• 2:17
  the
• 2:18
  difference
• 2:18
  is
• 2:19
  actually
• 2:19
  getting
• 2:19
  deals
• 2:20
  done.
• 2:20
  I
• 2:20
  can
• 2:21
  call
• 2:21
  someone
• 2:21
  and
• 2:21
  I
• 2:22
  know
• 2:22
  they're
• 2:22
  going
• 2:22
  to
• 2:22
  answer
• 2:22
  the
• 2:23
  phone
• 2:23
  and
• 2:23
  they're
• 2:23
  going
• 2:23
  to
• 2:23
  give
• 2:23
  me
• 2:23
  the
• 2:24
  information
• 2:24
  I
• 2:24
  need.
• 2:25
  And
• 2:25
  that's
• 2:25
  not
• 2:25
  always
• 2:26
  the
• 2:26
  case
• 2:26
  for
• 2:26
  just
• 2:26
  anybody,
• 2:27
  especially
• 2:27
  for
• 2:28
  like
• 2:28
  buyer
• 2:28
  investors.
• 2:29
  So
• 2:29
  finding
• 2:29
  a
• 2:30
  really
• 2:30
  great
• 2:30
  broker
• 2:31
  that's
• 2:31
  very
• 2:31
  plugged
• 2:31
  in
• 2:32
  with
• 2:32
  the
• 2:32
  right
• 2:32
  relationships
• 2:33
  is
• 2:33
  critical.
• 2:34
  I
• 2:34
  actually
• 2:34
  call,
• 2:35
  I
• 2:35
  have
• 2:35
  a
• 2:35
  list
• 2:35
  of
• 2:35
  about
• 2:36
  10
• 2:36
  different
• 2:36
  brokers
• 2:37
  in
• 2:37
  the
• 2:38
  Carolinas
• 2:38
  and
• 2:38
  in
• 2:38
  Florida
• 2:39
  that
• 2:39
  I
• 2:39
  call
• 2:39
  consistently
• 2:40
  and
• 2:41
  I
• 2:41
  say
• 2:41
  what
• 2:41
  off
• 2:41
  market
• 2:42
  properties
• 2:42
  do
• 2:42
  you
• 2:42
  have
• 2:42
  right
• 2:43
  now?
• 2:43
  And
• 2:43
  they
• 2:43
  go
• 2:44
  fast,
• 2:44
  so
• 2:44
  I
• 2:44
  have
• 2:44
  to
• 2:44
  be
• 2:45
  ready
• 2:45
  to
• 2:45
  take
• 2:45
  notes
• 2:46
  and
• 2:46
  they
• 2:46
  will
• 2:46
  ramble
• 2:46
  off
• 2:47
  all
• 2:47
  of
• 2:47
  the
• 2:47
  off
• 2:47
  market
• 2:48
  properties
• 2:48
  they're
• 2:48
  currently
• 2:49
  sitting
• 2:49
  on.
• 2:49
  So
• 2:50
  my
• 2:50
  knowledge
• 2:50
  of
• 2:51
  who
• 2:51
  to
• 2:51
  call
• 2:51
  and
• 2:52
  when
• 2:52
  to
• 2:52
  collect
• 2:52
  those
• 2:52
  properties,
• 2:53
  that's
• 2:54
  what
• 2:54
  allows
• 2:54
  me
• 2:54
  to
• 2:54
  always
• 2:54
  have
• 2:55
  off
• 2:55
  market
• 2:55
  lead
• 2:55
  flow
• 2:56
  through
• 2:56
  those
• 2:56
  relationships.
• 2:57
  We
• 2:57
  talked
• 2:57
  a
• 2:58
  little
• 2:58
  bit
• 2:58
  about
• 2:58
  the
• 2:58
  distress
• 2:59
  tickers,
• 3:00
  distressed
• 3:00
  properties.
• 3:00
  I'm
• 3:01
  always
• 3:01
  looking
• 3:01
  for
• 3:01
  properties
• 3:02
  through
• 3:02
  data,
• 3:02
  going
• 3:03
  through
• 3:03
  CoStar,
• 3:04
  looking
• 3:04
  at
• 3:04
  maturity
• 3:04
  dates
• 3:04
  that
• 3:05
  are
• 3:05
  coming
• 3:05
  due
• 3:05
  on
• 3:05
  loans
• 3:06
  soon,
• 3:06
  tracing
• 3:07
  due
• 3:07
  to
• 3:08
  picking
• 3:08
  up
• 3:08
  the
• 3:08
  tax
• 3:09
  foreclosures
• 3:09
  in
• 3:09
  Central
• 3:10
  Florida,
• 3:10
  pretty
• 3:11
  decent
• 3:11
  at
• 3:11
  finding
• 3:11
  owner
• 3:12
  information
• 3:12
  or
• 3:13
  the
• 3:13
  sister
• 3:13
  or
• 3:13
  the
• 3:13
  brother
• 3:14
  or
• 3:14
  the
• 3:14
  cousin
• 3:14
  and
• 3:14
  their
• 3:15
  business.
• 3:15
  So
• 3:16
  getting
• 3:16
  in
• 3:16
  contact
• 3:17
  with
• 3:17
  the
• 3:17
  owner
• 3:18
  can
• 3:18
  sometimes
• 3:18
  be
• 3:18
  the
• 3:19
  hardest
• 3:19
  part
• 3:19
  if
• 3:19
  it's
• 3:20
  direct
• 3:20
  to
• 3:20
  owner,
• 3:21
  but
• 3:22
  you
• 3:22
  have
• 3:22
  your
• 3:22
  broker
• 3:23
  relationships,
• 3:23
  your
• 3:23
  direct
• 3:24
  to
• 3:24
  owner,
• 3:24
  and
• 3:25
  then
• 3:25
  you
• 3:25
  have
• 3:25
  your
• 3:25
  fellow
• 3:26
  commercial
• 3:26
  firms,
• 3:27
  the
• 3:27
  vertically
• 3:27
  integrated
• 3:28
  commercial
• 3:28
  firms.
• 3:29
  What
• 3:29
  I
• 3:29
  typically
• 3:29
  find
• 3:30
  is
• 3:30
  they
• 3:30
  are
• 3:30
  vertically
• 3:31
  integrated,
• 3:31
  they
• 3:31
  build
• 3:32
  it,
• 3:32
  develop
• 3:32
  it,
• 3:32
  property,
• 3:33
  manage
• 3:33
  it.
• 3:33
  If
• 3:33
  they
• 3:34
  sell
• 3:34
  it,
• 3:34
  they
• 3:34
  sell
• 3:34
  it
• 3:34
  internally.
• 3:35
  Getting
• 3:35
  your
• 3:35
  hands
• 3:35
  on
• 3:36
  that
• 3:36
  asset
• 3:36
  is
• 3:36
  very
• 3:37
  difficult.
• 3:37
  At
• 3:37
  one
• 3:38
  point
• 3:38
  I
• 3:38
  had
• 3:38
  even
• 3:38
  set
• 3:39
  up
• 3:39
  AI
• 3:40
  to
• 3:40
  scrape
• 3:40
  all
• 3:40
  of
• 3:40
  their
• 3:41
  website
• 3:41
  websites
• 3:42
  on
• 3:42
  a
• 3:42
  daily
• 3:42
  basis.
• 3:43
  So
• 3:43
  if
• 3:43
  there
• 3:43
  were
• 3:43
  more
• 3:43
  than
• 3:44
  like
• 3:44
  say
• 3:44
  a
• 3:45
  20%
• 3:45
  change
• 3:45
  to
• 3:46
  their
• 3:46
  website,
• 3:46
  I
• 3:47
  immediately
• 3:47
  was
• 3:47
  notified.
• 3:48
  And
• 3:48
  that
• 3:48
  helped
• 3:48
  me
• 3:48
  catch
• 3:49
  properties
• 3:49
  that
• 3:50
  they
• 3:50
  were
• 3:50
  listing
• 3:51
  only
• 3:51
  on
• 3:51
  their
• 3:51
  website
• 3:52
  and
• 3:52
  nowhere
• 3:52
  else.
• 3:53
  Now
• 3:53
  keep
• 3:53
  in
• 3:53
  mind,
• 3:54
  if
• 3:54
  you
• 3:54
  have,
• 3:54
  if
• 3:54
  you're
• 3:54
  a
• 3:54
  broker,
• 3:55
  you
• 3:55
  have
• 3:55
  buyer
• 3:55
  investors.
• 3:56
  They
• 3:56
  could
• 3:56
  be
• 3:56
  on
• 3:56
  the
• 3:56
  email
• 3:57
  list,
• 3:57
  so
• 3:57
  they
• 3:57
  could
• 3:58
  be
• 3:58
  receiving
• 3:58
  the
• 3:58
  same
• 3:58
  properties
• 3:59
  at
• 3:59
  the
• 3:59
  same
• 3:59
  time
• 3:59
  you
• 4:00
  do.
• 4:00
  But
• 4:01
  setting
• 4:01
  up
• 4:01
  AI
• 4:01
  to
• 4:01
  scrape
• 4:02
  their
• 4:02
  websites
• 4:02
  was
• 4:02
  one
• 4:03
  way
• 4:03
  that
• 4:03
  I
• 4:03
  made
• 4:03
  sure
• 4:03
  to
• 4:03
  get
• 4:03
  to
• 4:04
  the
• 4:04
  properties
• 4:04
  first
• 4:05
  and
• 4:06
  those
• 4:06
  distressed
• 4:07
  and
• 4:07
  going
• 4:07
  through
• 4:07
  data
• 4:08
  acquisitions
• 4:08
  I
• 4:08
  think
• 4:08
  is
• 4:09
  important.
• 4:09
  Really
• 4:10
  though,
• 4:10
  broker
• 4:11
  relationships
• 4:11
  is
• 4:11
  the
• 4:12
  key.
• 4:12
  A
• 4:12
  lot
• 4:12
  of
• 4:13
  deals
• 4:13
  that
• 4:13
  get
• 4:13
  brought
• 4:14
  to
• 4:14
  me
• 4:14
  are
• 4:14
  brought
• 4:14
  to
• 4:14
  me
• 4:14
  by
• 4:15
  other
• 4:15
  brokers.
• 4:16
  So
• 4:16
  here's
• 4:16
  a
• 4:16
  question
• 4:17
  for
• 4:17
  you,
• 4:17
  Erica.
• 4:17
  So
• 4:17
  somebody
• 4:18
  brand
• 4:18
  new,
• 4:18
  just
• 4:19
  starting
• 4:19
  out,
• 4:19
  how
• 4:19
  do
• 4:20
  they
• 4:20
  find
• 4:20
  the
• 4:20
  right
• 4:20
  broker?
• 4:21
  Who's,
• 4:21
  how
• 4:22
  do
• 4:22
  they
• 4:22
  know
• 4:22
  who
• 4:22
  that
• 4:22
  person
• 4:23
  is
• 4:23
  and
• 4:23
  how
• 4:24
  do
• 4:24
  they
• 4:24
  go
• 4:24
  about
• 4:24
  building
• 4:24
  a
• 4:24
  relationship
• 4:25
  with
• 4:25
  them?
• 4:25
  Yes,
• 4:26
  really
• 4:26
  good
• 4:26
  question.
• 4:27
  So
• 4:27
  relationships
• 4:28
  are
• 4:28
  just
• 4:29
  volume
• 4:29
  of
• 4:30
  touch
• 4:30
  points,
• 4:31
  so
• 4:31
  and
• 4:31
  quality
• 4:32
  of
• 4:32
  those
• 4:32
  touch
• 4:32
  points.
• 4:33
  That's
• 4:33
  what
• 4:33
  makes
• 4:33
  up
• 4:33
  a
• 4:34
  relationship.
• 4:34
  So
• 4:35
  when
• 4:35
  I
• 4:35
  first
• 4:35
  started,
• 4:36
  it
• 4:36
  was
• 4:36
  very
• 4:36
  important
• 4:37
  to
• 4:37
  me
• 4:37
  that
• 4:37
  I
• 4:37
  called
• 4:38
  through
• 4:38
  all
• 4:39
  of
• 4:39
  the
• 4:39
  top
• 4:39
  KW
• 4:40
  commercial
• 4:40
  agents
• 4:40
  in
• 4:40
  the
• 4:40
  entire
• 4:41
  company.
• 4:41
  Many
• 4:42
  of
• 4:42
  them
• 4:42
  I'd
• 4:42
  already
• 4:42
  connected
• 4:43
  with
• 4:43
  through
• 4:44
  networking
• 4:44
  events.
• 4:45
  And
• 4:45
  I
• 4:45
  called
• 4:45
  through
• 4:46
  to
• 4:46
  let
• 4:46
  them
• 4:46
  know,
• 4:46
  hey,
• 4:46
  I
• 4:47
  specialize
• 4:47
  in
• 4:47
  large
• 4:47
  multifamily
• 4:48
  in
• 4:48
  Charlotte.
• 4:48
  If
• 4:48
  you
• 4:49
  have
• 4:49
  anything
• 4:49
  in
• 4:50
  this
• 4:50
  area,
• 4:50
  please
• 4:50
  let
• 4:50
  me
• 4:51
  know.
• 4:51
  And
• 4:51
  so
• 4:52
  just
• 4:52
  reaching
• 4:53
  out
• 4:53
  to
• 4:54
  my
• 4:54
  networking
• 4:55
  event
• 4:55
  people
• 4:56
  that
• 4:56
  I
• 4:56
  had
• 4:56
  met
• 4:56
  through
• 4:56
  that
• 4:57
  was
• 4:57
  important
• 4:57
  immediately.
• 4:58
  That's
• 4:58
  how
• 4:59
  I
• 4:59
  picked
• 4:59
  up
• 4:59
  my
• 4:59
  institutional
• 5:00
  investor
• 5:00
  looking
• 5:00
  for
• 5:01
  the
• 5:01
  apartment
• 5:01
  complexes.
• 5:02
  That
• 5:02
  was
• 5:02
  referred
• 5:02
  to
• 5:03
  me
• 5:03
  from
• 5:03
  somebody
• 5:03
  within
• 5:04
  my
• 5:04
  network
• 5:04
  over
• 5:04
  in
• 5:04
  la,
• 5:05
  a
• 5:05
  fellow
• 5:06
  agent.
• 5:06
  So
• 5:07
  as
• 5:07
  far
• 5:07
  as
• 5:07
  the,
• 5:08
  the
• 5:08
  properties
• 5:09
  themselves,
• 5:10
  a
• 5:10
  lot
• 5:10
  of
• 5:10
  that
• 5:11
  for
• 5:11
  me
• 5:11
  has
• 5:12
  been
• 5:12
  direct
• 5:13
  to
• 5:13
  owner.
• 5:13
  And
• 5:14
  the
• 5:14
  reason
• 5:14
  is
• 5:15
  these
• 5:15
  people
• 5:15
  that
• 5:16
  own
• 5:16
  these
• 5:16
  properties,
• 5:16
  for
• 5:17
  instance,
• 5:17
  120
• 5:18
  unit
• 5:18
  that
• 5:18
  I'm
• 5:18
  raising
• 5:19
  the
• 5:19
  capital
• 5:19
  for
• 5:19
  in
• 5:19
  Florida,
• 5:20
  that
• 5:20
  was
• 5:20
  a
• 5:20
  guy
• 5:21
  that
• 5:21
  was
• 5:21
  self
• 5:21
  managing
• 5:22
  120
• 5:22
  units
• 5:23
  and
• 5:24
  just
• 5:24
  wanted
• 5:24
  dinners
• 5:24
  with
• 5:24
  his
• 5:25
  family
• 5:25
  again.
• 5:26
  So
• 5:26
  you
• 5:26
  would
• 5:26
  be
• 5:27
  amazed
• 5:27
  at
• 5:27
  how
• 5:28
  large
• 5:28
  an
• 5:28
  asset
• 5:28
  can
• 5:29
  be
• 5:29
  and
• 5:29
  somebody
• 5:29
  could
• 5:29
  be
• 5:30
  self
• 5:30
  managing.
• 5:30
  And
• 5:31
  this
• 5:31
  is
• 5:31
  just
• 5:31
  a
• 5:31
  good
• 5:31
  old
• 5:31
  boy,
• 5:32
  right?
• 5:32
  These
• 5:33
  are
• 5:33
  easy
• 5:33
  conversations
• 5:34
  to
• 5:34
  have.
• 5:34
  So
• 5:35
  going
• 5:35
  direct
• 5:35
  to
• 5:36
  owner
• 5:36
  is
• 5:37
  I
• 5:37
  think
• 5:37
  critical.
• 5:38
  And
• 5:38
  I
• 5:38
  get
• 5:38
  to
• 5:39
  direct
• 5:39
  to
• 5:39
  owner
• 5:40
  properties
• 5:40
  through
• 5:41
  those
• 5:41
  networking
• 5:41
  events
• 5:41
  that
• 5:42
  I
• 5:42
  go
• 5:42
  to.
• 5:42
  So
• 5:43
  I
• 5:43
  look
• 5:44
  at
• 5:44
  high
• 5:44
  net
• 5:44
  worth
• 5:45
  individuals
• 5:45
  and
• 5:45
  what
• 5:45
  they
• 5:46
  enjoy
• 5:46
  in
• 5:46
  life,
• 5:46
  right?
• 5:47
  They
• 5:47
  enjoy
• 5:47
  cars,
• 5:48
  really
• 5:48
  nice
• 5:48
  cars
• 5:48
  and
• 5:48
  they
• 5:49
  enjoy
• 5:49
  golf.
• 5:49
  And
• 5:50
  so
• 5:50
  I
• 5:50
  go
• 5:50
  to
• 5:50
  as
• 5:51
  many
• 5:51
  networking
• 5:51
  events,
• 5:52
  investor
• 5:52
  meetups,
• 5:53
  but
• 5:53
  also
• 5:53
  meetups
• 5:54
  for
• 5:54
  cars,
• 5:54
  car
• 5:55
  meetups
• 5:55
  and
• 5:55
  also
• 5:55
  like
• 5:56
  golf
• 5:56
  tournaments
• 5:56
  and
• 5:57
  that
• 5:57
  kind
• 5:57
  of
• 5:57
  thing.
• 5:57
  So
• 5:58
  getting
• 5:58
  in
• 5:59
  contact
• 5:59
  with
• 5:59
  those
• 5:59
  people,
• 6:00
  networking
• 6:01
  with
• 6:01
  those
• 6:02
  people
• 6:02
  to
• 6:02
  get
• 6:02
  direct
• 6:02
  to
• 6:02
  owner,
• 6:03
  I
• 6:03
  Think
• 6:03
  that's
• 6:03
  also
• 6:03
  been
• 6:04
  really,
• 6:04
  really
• 6:05
  helpful
• 6:05
  for
• 6:05
  me.
• 6:05
  Awesome.
• 6:06
  So
• 6:06
  let
• 6:07
  me
• 6:07
  ask
• 6:07
  you
• 6:07
  another
• 6:07
  question.
• 6:08
  And
• 6:08
  this
• 6:08
  is
• 6:08
  kind
• 6:08
  of
• 6:08
  from
• 6:08
  my
• 6:09
  experience,
• 6:09
  but
• 6:09
  it
• 6:09
  might
• 6:09
  be
• 6:10
  helpful
• 6:10
  for
• 6:10
  somebody
• 6:10
  starting
• 6:11
  out
• 6:11
  who's
• 6:12
  listening
• 6:12
  to
• 6:12
  this
• 6:12
  for
• 6:13
  the
• 6:13
  first
• 6:13
  time.
• 6:14
  So
• 6:14
  oftentimes
• 6:15
  in
• 6:15
  the
• 6:15
  commercial
• 6:16
  space,
• 6:16
  I
• 6:17
  find
• 6:17
  that
• 6:17
  track
• 6:18
  record
• 6:18
  and
• 6:19
  credibility
• 6:19
  is
• 6:19
  really
• 6:20
  key
• 6:20
  with
• 6:20
  getting
• 6:20
  a
• 6:20
  broker
• 6:20
  to
• 6:20
  take
• 6:21
  you
• 6:21
  seriously.
• 6:21
  So
• 6:22
  for
• 6:22
  somebody
• 6:22
  who
• 6:22
  already
• 6:23
  has
• 6:23
  that,
• 6:23
  that's
• 6:23
  great
• 6:23
  because
• 6:24
  they
• 6:24
  kind
• 6:24
  of
• 6:24
  have
• 6:24
  an
• 6:24
  easy
• 6:24
  path
• 6:25
  in
• 6:25
  the
• 6:25
  door.
• 6:25
  Somebody
• 6:26
  who
• 6:26
  doesn't,
• 6:27
  how
• 6:27
  do
• 6:27
  they
• 6:27
  get
• 6:27
  that?
• 6:28
  And
• 6:28
  what
• 6:28
  would
• 6:28
  make
• 6:28
  you,
• 6:29
  as
• 6:29
  a
• 6:29
  broker,
• 6:29
  take
• 6:29
  them
• 6:30
  seriously?
• 6:30
  Absolutely.
• 6:31
  And
• 6:31
  this
• 6:31
  is
• 6:32
  where
• 6:32
  sometimes
• 6:33
  you
• 6:33
  have
• 6:33
  to
• 6:34
  be
• 6:35
  creative
• 6:35
  on
• 6:35
  your
• 6:35
  pitch
• 6:36
  and
• 6:36
  you
• 6:36
  have
• 6:36
  to
• 6:36
  be
• 6:36
  confident
• 6:37
  in
• 6:37
  when
• 6:37
  you
• 6:37
  pitch
• 6:37
  it.
• 6:38
  So
• 6:38
  for
• 6:38
  me,
• 6:39
  just
• 6:39
  starting.
• 6:39
  And
• 6:39
  when
• 6:40
  I
• 6:40
  just
• 6:40
  started
• 6:40
  in
• 6:40
  real
• 6:41
  estate,
• 6:41
  I
• 6:41
  had
• 6:42
  come
• 6:42
  from
• 6:42
  a
• 6:42
  server
• 6:42
  background.
• 6:43
  I
• 6:43
  had
• 6:43
  no
• 6:44
  business
• 6:44
  experience,
• 6:44
  no
• 6:45
  sales
• 6:45
  background,
• 6:46
  nothing.
• 6:46
  Right.
• 6:47
  And
• 6:47
  I
• 6:47
  did
• 6:47
  my
• 6:47
  unique
• 6:48
  value
• 6:48
  proposition
• 6:48
  at
• 6:49
  that
• 6:49
  time.
• 6:49
  And
• 6:49
  what
• 6:50
  I
• 6:50
  had
• 6:50
  determined
• 6:50
  is
• 6:51
  I
• 6:51
  worked
• 6:51
  in
• 6:52
  an
• 6:52
  industry
• 6:53
  where
• 6:53
  it
• 6:53
  allowed
• 6:53
  me
• 6:54
  to
• 6:54
  get
• 6:54
  really
• 6:54
  good
• 6:54
  with
• 6:54
  people.
• 6:55
  And
• 6:55
  so
• 6:55
  my
• 6:55
  unique
• 6:56
  value
• 6:56
  proposition
• 6:57
  became.
• 6:57
  I've
• 6:58
  worked
• 6:58
  in
• 6:58
  the
• 6:58
  hospitality
• 6:59
  industry
• 7:00
  for
• 7:00
  about
• 7:00
  10
• 7:01
  years,
• 7:01
  very
• 7:02
  good
• 7:02
  with
• 7:02
  people
• 7:02
  and
• 7:03
  therefore
• 7:03
  pretty
• 7:03
  good
• 7:03
  with
• 7:04
  negotiation.
• 7:05
  And
• 7:05
  that
• 7:05
  was
• 7:05
  a
• 7:05
  unique
• 7:06
  value
• 7:06
  proposition
• 7:06
  that
• 7:07
  stuck
• 7:07
  with
• 7:07
  people.
• 7:08
  And
• 7:08
  that
• 7:08
  was
• 7:08
  based
• 7:08
  off
• 7:09
  me
• 7:09
  utilizing
• 7:09
  my
• 7:10
  server
• 7:10
  experience
• 7:11
  in
• 7:11
  restaurants.
• 7:12
  When
• 7:12
  I
• 7:12
  got
• 7:12
  started
• 7:13
  specializing
• 7:14
  with
• 7:14
  large
• 7:14
  multifamily.
• 7:15
  March
• 7:15
  of
• 7:15
  last
• 7:15
  year,
• 7:18
  I
• 7:18
  had
• 7:18
  only
• 7:18
  been
• 7:18
  under
• 7:19
  contract
• 7:19
  on
• 7:19
  six
• 7:20
  units
• 7:20
  in
• 7:20
  Florida.
• 7:21
  From
• 7:21
  the
• 7:21
  buyer
• 7:21
  investor
• 7:22
  side,
• 7:22
  we
• 7:22
  had
• 7:22
  to
• 7:23
  back
• 7:23
  out
• 7:23
  because
• 7:23
  misrepresentations.
• 7:25
  I
• 7:25
  did
• 7:25
  go
• 7:25
  through
• 7:26
  the
• 7:26
  entire
• 7:26
  underwriting
• 7:27
  and
• 7:27
  due
• 7:27
  diligence
• 7:27
  process
• 7:28
  on
• 7:28
  the
• 7:28
  six
• 7:28
  units,
• 7:29
  which
• 7:29
  was
• 7:29
  a
• 7:30
  great
• 7:30
  experience.
• 7:31
  Again,
• 7:31
  very
• 7:32
  small
• 7:32
  minute
• 7:33
  experience
• 7:33
  that
• 7:34
  I
• 7:34
  was
• 7:34
  able
• 7:34
  to
• 7:35
  create
• 7:35
  a
• 7:35
  unique
• 7:36
  value
• 7:36
  proposition
• 7:37
  off
• 7:37
  of.
• 7:37
  How
• 7:37
  many
• 7:38
  brokers
• 7:38
  do
• 7:38
  you
• 7:38
  know
• 7:39
  have
• 7:39
  personally
• 7:39
  been
• 7:40
  under
• 7:40
  contract
• 7:40
  on
• 7:40
  multifamily
• 7:41
  with
• 7:41
  an
• 7:41
  SBA
• 7:42
  loan?
• 7:42
  So
• 7:43
  right
• 7:43
  there,
• 7:44
  no,
• 7:44
  we
• 7:44
  didn't
• 7:44
  close
• 7:45
  it.
• 7:45
  That
• 7:45
  was
• 7:45
  the
• 7:46
  only
• 7:46
  experience
• 7:46
  I
• 7:46
  had
• 7:46
  to
• 7:47
  go
• 7:47
  off
• 7:47
  of.
• 7:47
  But
• 7:47
  I
• 7:48
  was
• 7:48
  able
• 7:48
  to
• 7:48
  utilize
• 7:49
  that
• 7:49
  to
• 7:49
  show
• 7:50
  that
• 7:50
  I
• 7:50
  had
• 7:50
  some
• 7:51
  type
• 7:51
  of
• 7:51
  track
• 7:51
  record
• 7:52
  and
• 7:52
  with
• 7:53
  the
• 7:53
  confidence.
• 7:54
  Right.
• 7:54
  And
• 7:54
  so
• 7:54
  immediately
• 7:55
  I
• 7:55
  picked
• 7:55
  up
• 7:55
  the
• 7:55
  institutional
• 7:56
  investor.
• 7:57
  I
• 7:57
  have
• 7:58
  a
• 7:58
  walkthrough
• 7:58
  on
• 7:59
  110
• 8:00
  units
• 8:00
  scheduled
• 8:00
  for
• 8:01
  next
• 8:01
  week,
• 8:01
  direct
• 8:01
  to
• 8:02
  owner.
• 8:02
  So
• 8:03
  one
• 8:03
  of
• 8:03
  the
• 8:04
  keys
• 8:04
  in
• 8:04
  that
• 8:04
  too,
• 8:05
  in
• 8:05
  pulling
• 8:05
  data,
• 8:06
  was
• 8:07
  not
• 8:07
  only
• 8:07
  did
• 8:07
  I
• 8:07
  make
• 8:07
  sure
• 8:08
  to
• 8:08
  get
• 8:08
  really
• 8:09
  well
• 8:09
  in
• 8:09
  contact
• 8:09
  with
• 8:09
  the
• 8:10
  relationships,
• 8:10
  I
• 8:11
  made
• 8:11
  sure
• 8:11
  to
• 8:11
  know
• 8:11
  my
• 8:12
  inventory.
• 8:13
  If
• 8:13
  there
• 8:13
  was
• 8:13
  something
• 8:13
  being
• 8:14
  built
• 8:14
  two
• 8:14
  miles
• 8:15
  down
• 8:15
  the
• 8:15
  road,
• 8:15
  and
• 8:15
  I
• 8:16
  don't
• 8:16
  know
• 8:16
  about
• 8:16
  it,
• 8:17
  that's
• 8:17
  a
• 8:17
  problem.
• 8:18
  So
• 8:18
  I
• 8:19
  made
• 8:19
  sure
• 8:19
  to
• 8:19
  pull
• 8:20
  all
• 8:20
  of
• 8:20
  the
• 8:20
  inventory
• 8:21
  in
• 8:21
  the
• 8:21
  entire
• 8:21
  Charlotte
• 8:22
  area,
• 8:22
  100
• 8:23
  to
• 8:23
  200
• 8:23
  apartment
• 8:24
  complexes.
• 8:25
  And
• 8:25
  I
• 8:25
  Went
• 8:25
  through
• 8:26
  the
• 8:26
  entire
• 8:26
  list
• 8:27
  and
• 8:27
  skip
• 8:27
  trace
• 8:27
  the
• 8:28
  entire
• 8:28
  list.
• 8:29
  So
• 8:29
  I
• 8:29
  Now
• 8:30
  know
• 8:30
  every
• 8:30
  100
• 8:31
  to
• 8:31
  200
• 8:31
  door
• 8:31
  apartment
• 8:32
  complex
• 8:32
  in
• 8:32
  all
• 8:32
  of
• 8:32
  Charlotte.
• 8:33
  I
• 8:33
  know
• 8:33
  where
• 8:33
  it's
• 8:33
  located.
• 8:34
  I
• 8:34
  have
• 8:35
  an
• 8:35
  idea
• 8:35
  of
• 8:36
  even
• 8:36
  when
• 8:36
  it's
• 8:36
  cash
• 8:36
  flowing.
• 8:37
  So
• 8:38
  that
• 8:38
  kind
• 8:38
  of
• 8:39
  knowledge
• 8:39
  around
• 8:39
  the
• 8:40
  data,
• 8:40
  I
• 8:40
  also
• 8:41
  utilize
• 8:41
  that
• 8:42
  to
• 8:42
  go
• 8:42
  say
• 8:42
  he
• 8:43
  see
• 8:43
  here
• 8:44
  investor,
• 8:44
  I
• 8:45
  know
• 8:45
  the
• 8:45
  inventory
• 8:46
  that
• 8:46
  you're
• 8:46
  trying
• 8:47
  to
• 8:47
  purchase.
• 8:47
  I
• 8:48
  have
• 8:48
  the
• 8:48
  owner
• 8:48
  information
• 8:49
  skip
• 8:49
  traced.
• 8:49
  And
• 8:49
  now
• 8:50
  it's
• 8:50
  just
• 8:50
  a
• 8:50
  matter
• 8:50
  of
• 8:50
  me
• 8:51
  cold
• 8:51
  calling
• 8:51
  and
• 8:51
  getting
• 8:51
  to
• 8:52
  it.
• 8:52
  So
• 8:53
  knowing
• 8:53
  my
• 8:53
  inventory,
• 8:54
  knowing
• 8:54
  my
• 8:54
  numbers,
• 8:55
  I
• 8:55
  think
• 8:55
  that
• 8:56
  was
• 8:56
  just
• 8:56
  as
• 8:56
  important.
• 8:57
  So
• 8:57
  keep
• 8:57
  that
• 8:57
  in
• 8:57
  mind
• 8:58
  guys.
• 8:58
  You
• 8:58
  know
• 8:59
  what
• 8:59
  she's
• 8:59
  saying
• 8:59
  is
• 8:59
  you
• 9:00
  want
• 9:00
  to
• 9:00
  be
• 9:00
  treating
• 9:01
  yourself
• 9:01
  like
• 9:01
  a
• 9:01
  professional
• 9:02
  because
• 9:02
  if
• 9:02
  you
• 9:02
  treat
• 9:02
  yourself
• 9:03
  in
• 9:03
  that
• 9:03
  manner,
• 9:04
  other
• 9:04
  people
• 9:04
  start
• 9:04
  treating
• 9:05
  you
• 9:05
  that
• 9:05
  way
• 9:05
  as
• 9:05
  well.
• 9:06
  Absolutely.
• 9:07
  Okay,
• 9:07
  so
• 9:08
  and
• 9:08
  if
• 9:08
  somebody
• 9:08
  wants
• 9:09
  to
• 9:09
  go
• 9:09
  direct
• 9:09
  to
• 9:09
  seller,
• 9:10
  what
• 9:10
  do
• 9:10
  you
• 9:10
  recommend
• 9:11
  there?
• 9:11
  What
• 9:11
  do
• 9:11
  you
• 9:11
  find
• 9:11
  effective?
• 9:12
  You
• 9:12
  know,
• 9:12
  so
• 9:13
  for
• 9:13
  somebody
• 9:13
  who's
• 9:13
  an
• 9:14
  investor,
• 9:14
  if
• 9:14
  they
• 9:14
  wanted
• 9:15
  to
• 9:15
  do
• 9:15
  something
• 9:15
  and
• 9:16
  get
• 9:16
  in
• 9:16
  contact
• 9:16
  with
• 9:16
  the
• 9:16
  shell
• 9:17
  or
• 9:17
  how
• 9:17
  do
• 9:17
  they
• 9:17
  do
• 9:17
  that?
• 9:18
  I
• 9:18
  always,
• 9:19
  always
• 9:20
  recommend
• 9:20
  that
• 9:21
  everybody
• 9:21
  within
• 9:22
  the
• 9:22
  investment
• 9:22
  world
• 9:23
  stay
• 9:23
  in
• 9:23
  their
• 9:23
  lane.
• 9:24
  And
• 9:24
  what
• 9:24
  happens
• 9:25
  when
• 9:25
  people
• 9:25
  try
• 9:25
  to
• 9:26
  save
• 9:26
  money
• 9:27
  and
• 9:27
  get
• 9:27
  out
• 9:27
  of
• 9:27
  their
• 9:27
  lane
• 9:28
  and
• 9:28
  go
• 9:28
  and
• 9:28
  take
• 9:28
  on
• 9:28
  another
• 9:29
  full
• 9:29
  time
• 9:29
  job
• 9:30
  is
• 9:30
  it
• 9:30
  typically
• 9:30
  doesn't
• 9:31
  end
• 9:31
  well
• 9:31
  for
• 9:31
  them.
• 9:32
  And
• 9:32
  so
• 9:33
  staying
• 9:33
  in
• 9:33
  your
• 9:33
  lane
• 9:34
  is
• 9:34
  something
• 9:34
  that
• 9:34
  is
• 9:34
  really
• 9:35
  important
• 9:35
  in
• 9:35
  this.
• 9:36
  I
• 9:36
  think
• 9:36
  that's
• 9:37
  why,
• 9:37
  you
• 9:37
  know,
• 9:38
  there
• 9:38
  are
• 9:38
  plenty
• 9:38
  of
• 9:39
  general
• 9:39
  partner
• 9:40
  syndicators,
• 9:40
  there's
• 9:40
  plenty
• 9:41
  of
• 9:41
  investors
• 9:41
  that
• 9:41
  want
• 9:42
  to
• 9:42
  go
• 9:42
  direct
• 9:42
  to
• 9:42
  owner
• 9:42
  and
• 9:42
  just
• 9:43
  do
• 9:43
  an
• 9:43
  off
• 9:43
  market
• 9:43
  sale
• 9:43
  direct
• 9:44
  to
• 9:44
  owner
• 9:44
  with
• 9:44
  no
• 9:44
  brokers.
• 9:45
  However,
• 9:46
  you're
• 9:46
  taking
• 9:46
  on
• 9:47
  a
• 9:47
  full
• 9:47
  time
• 9:47
  job
• 9:48
  to
• 9:48
  do
• 9:48
  proper
• 9:48
  due
• 9:48
  diligence
• 9:49
  of
• 9:49
  that
• 9:49
  asset
• 9:50
  while
• 9:50
  you're
• 9:50
  trying
• 9:50
  to
• 9:50
  do
• 9:51
  the
• 9:51
  underwriting
• 9:51
  for
• 9:52
  the
• 9:52
  loan,
• 9:52
  which
• 9:52
  is
• 9:52
  your
• 9:53
  investment
• 9:53
  side,
• 9:54
  you
• 9:54
  know,
• 9:54
  your
• 9:54
  investor
• 9:55
  side.
• 9:55
  So
• 9:55
  I
• 9:55
  think
• 9:56
  finding
• 9:56
  a
• 9:56
  really
• 9:56
  good
• 9:57
  broker,
• 9:57
  even
• 9:58
  if
• 9:58
  you
• 9:58
  have
• 9:58
  a
• 9:58
  potential
• 9:59
  property
• 9:59
  that's
• 9:59
  an
• 9:59
  off
• 10:00
  market
• 10:00
  direct
• 10:00
  to
• 10:00
  owner,
• 10:00
  that's
• 10:01
  awesome.
• 10:01
  Allow
• 10:02
  a
• 10:02
  really
• 10:02
  great
• 10:02
  broker
• 10:03
  to
• 10:03
  go
• 10:03
  in
• 10:03
  and
• 10:04
  actually
• 10:04
  get
• 10:04
  the
• 10:04
  T12
• 10:05
  and
• 10:05
  the
• 10:05
  rental
• 10:06
  financial
• 10:07
  information
• 10:07
  and
• 10:08
  extract
• 10:08
  all
• 10:08
  of
• 10:08
  this
• 10:09
  information,
• 10:09
  ensuring
• 10:10
  that
• 10:10
  you're
• 10:10
  extracting
• 10:11
  everything
• 10:11
  and
• 10:11
  that
• 10:11
  it
• 10:12
  looks
• 10:12
  accurate.
• 10:13
  Allow
• 10:13
  them
• 10:14
  to
• 10:14
  help
• 10:14
  mitigate
• 10:14
  some
• 10:15
  of
• 10:15
  the
• 10:15
  transaction
• 10:16
  and
• 10:16
  especially
• 10:16
  and
• 10:16
  allow
• 10:17
  them
• 10:17
  to
• 10:17
  be
• 10:17
  in
• 10:17
  that
• 10:17
  lane
• 10:18
  while
• 10:18
  you
• 10:18
  are
• 10:18
  in
• 10:18
  yours.
• 10:19
  So
• 10:19
  I'm
• 10:19
  a
• 10:20
  big
• 10:20
  advocate
• 10:20
  for
• 10:20
  even
• 10:21
  as
• 10:21
  an
• 10:21
  investor,
• 10:21
  if
• 10:21
  you
• 10:22
  find
• 10:22
  something.
• 10:22
  I
• 10:23
  personally
• 10:23
  am
• 10:23
  a
• 10:24
  broker
• 10:24
  and
• 10:25
  I
• 10:25
  have
• 10:26
  referred
• 10:26
  out
• 10:26
  many
• 10:26
  of
• 10:27
  my
• 10:27
  own
• 10:27
  transactions
• 10:28
  because
• 10:28
  it
• 10:29
  makes
• 10:29
  sense
• 10:30
  for
• 10:30
  me
• 10:30
  to
• 10:30
  stay
• 10:30
  in
• 10:30
  my
• 10:31
  lane
• 10:31
  as
• 10:31
  the
• 10:31
  investor
• 10:32
  and
• 10:32
  allow
• 10:32
  another
• 10:32
  broker
• 10:33
  to
• 10:33
  facilitate
• 10:34
  that.
• 10:34
  That's
• 10:35
  very
• 10:35
  valuable
• 10:35
  advice
• 10:36
  and
• 10:37
  I
• 10:37
  agree
• 10:37
  with
• 10:37
  you
• 10:37
  because
• 10:38
  you're
• 10:38
  right.
• 10:38
  You
• 10:38
  have
• 10:38
  to
• 10:38
  know
• 10:38
  what
• 10:38
  you're
• 10:39
  good
• 10:39
  at
• 10:39
  in
• 10:39
  life.
• 10:39
  You
• 10:40
  know,
• 10:40
  you
• 10:40
  can
• 10:40
  only
• 10:40
  be
• 10:40
  good
• 10:41
  at
• 10:41
  so
• 10:41
  many
• 10:41
  things
• 10:41
  and
• 10:42
  there's
• 10:42
  so
• 10:42
  much
• 10:42
  time
• 10:42
  in
• 10:42
  the
• 10:42
  day,
• 10:43
  so
• 10:43
  you
• 10:43
  got
• 10:43
  to
• 10:43
  stay
• 10:43
  focused.
• 10:44
  Yeah,
• 10:44
  absolutely.
• 10:45
  Know
• 10:46
  where
• 10:46
  your
• 10:46
  highest
• 10:46
  invest
• 10:46
  use
• 10:47
  is
• 10:47
  not
• 10:47
  just
• 10:47
  for
• 10:47
  the
• 10:47
  property,
• 10:48
  but
• 10:48
  for
• 10:48
  yourself.
• 10:48
  Right.
• 10:49
  You
• 10:49
  gotta
• 10:49
  figure
• 10:49
  out
• 10:50
  how's
• 10:50
  my
• 10:50
  time
• 10:50
  best
• 10:51
  spent
• 10:51
  and
• 10:51
  what's
• 10:52
  gonna
• 10:52
  make
• 10:52
  me
• 10:52
  the
• 10:52
  most
• 10:53
  money
• 10:53
  in
• 10:53
  the
• 10:53
  least
• 10:53
  amount
• 10:53
  of
• 10:53
  time.
• 10:54
  That's
• 10:54
  right.
• 10:54
  And
• 10:54
  when
• 10:55
  you
• 10:55
  have
• 10:55
  a
• 10:55
  great
• 10:55
  work
• 10:56
  network,
• 10:56
  like
• 10:56
  what
• 10:56
  you
• 10:57
  were
• 10:57
  mentioning
• 10:57
  about
• 10:57
  having
• 10:58
  these
• 10:58
  relationships
• 10:58
  in
• 10:59
  the
• 10:59
  different
• 10:59
  buckets,
• 10:59
  when
• 11:00
  you
• 11:00
  have
• 11:00
  great
• 11:01
  people,
• 11:01
  you're
• 11:02
  pretty
• 11:02
  confident,
• 11:02
  like
• 11:03
  they
• 11:03
  can
• 11:03
  do
• 11:03
  the
• 11:03
  job
• 11:03
  better
• 11:04
  than
• 11:04
  you
• 11:04
  could
• 11:04
  anyway.
• 11:05
  So.
• 11:05
  And
• 11:06
  if
• 11:06
  you
• 11:06
  don't
• 11:06
  feel
• 11:06
  like
• 11:07
  that,
• 11:07
  perhaps
• 11:07
  you
• 11:07
  need
• 11:08
  to
• 11:08
  top
• 11:08
  grade
• 11:08
  your
• 11:08
  work
• 11:09
  network
• 11:09
  and
• 11:09
  you
• 11:09
  need
• 11:09
  to
• 11:09
  continue
• 11:10
  to
• 11:10
  look
• 11:10
  for
• 11:10
  better
• 11:10
  relationships
• 11:11
  for
• 11:11
  that
• 11:12
  particular
• 11:12
  category.
• 11:13
  So
• 11:13
  you
• 11:13
  should
• 11:13
  have
• 11:14
  a
• 11:14
  people
• 11:14
  around
• 11:14
  you,
• 11:15
  your
• 11:15
  vendor,
• 11:15
  partners
• 11:15
  and
• 11:16
  everything
• 11:16
  that
• 11:16
  you're
• 11:17
  confident
• 11:17
  in
• 11:17
  what
• 11:17
  they
• 11:18
  can
• 11:18
  deliver
• 11:18
  and
• 11:19
  the
• 11:19
  quality
• 11:19
  of
• 11:20
  what
• 11:20
  they're
• 11:20
  delivering.
• 11:20
  Yeah,
• 11:21
  totally.
• 11:21
  Totally
• 11:22
  right
• 11:22
  about
• 11:22
  that.
• 11:22
  So
• 11:23
  then
• 11:24
  I
• 11:24
  guess
• 11:24
  we
• 11:24
  go
• 11:24
  from
• 11:24
  finding
• 11:25
  deals.
• 11:26
  Next
• 11:26
  step,
• 11:26
  I
• 11:26
  guess
• 11:27
  after
• 11:27
  that
• 11:27
  is
• 11:27
  underwriting,
• 11:28
  because
• 11:28
  you
• 11:28
  have
• 11:28
  to
• 11:28
  know
• 11:28
  if
• 11:28
  they're
• 11:28
  a
• 11:28
  good
• 11:29
  deal
• 11:29
  or
• 11:29
  not.
• 11:29
  Yep.
• 11:30
  So
• 11:30
  what
• 11:31
  are
• 11:31
  you
• 11:31
  looking
• 11:31
  for
• 11:31
  there?
• 11:32
  Well,
• 11:32
  for
• 11:32
  anybody
• 11:32
  who's
• 11:33
  not
• 11:33
  familiar
• 11:33
  with
• 11:33
  the
• 11:33
  term
• 11:34
  underwriting,
• 11:34
  it's
• 11:35
  basically
• 11:35
  analyzing.
• 11:36
  That's
• 11:36
  the
• 11:36
  term
• 11:36
  we
• 11:36
  use
• 11:37
  here
• 11:37
  in
• 11:37
  the
• 11:37
  commercial
• 11:37
  real
• 11:37
  estate
• 11:38
  world.
• 11:38
  What
• 11:38
  you're
• 11:39
  doing
• 11:39
  is
• 11:39
  you're
• 11:40
  taking
• 11:40
  the
• 11:40
  financials
• 11:41
  to
• 11:41
  really
• 11:41
  see
• 11:41
  if
• 11:41
  the
• 11:41
  deal
• 11:42
  makes
• 11:42
  financial
• 11:42
  sense
• 11:43
  and
• 11:43
  to
• 11:43
  figure
• 11:43
  out
• 11:43
  what
• 11:44
  price
• 11:44
  you
• 11:44
  can
• 11:44
  pay
• 11:45
  for
• 11:45
  it.
• 11:45
  So
• 11:46
  one
• 11:46
  of
• 11:46
  the
• 11:46
  mistakes
• 11:47
  that
• 11:47
  we
• 11:47
  discussed
• 11:48
  in
• 11:48
  previous
• 11:48
  episodes
• 11:49
  is
• 11:49
  it's
• 11:50
  very
• 11:50
  easy
• 11:50
  to
• 11:50
  overpay
• 11:51
  for
• 11:51
  a
• 11:51
  deal.
• 11:51
  And
• 11:52
  if
• 11:52
  you
• 11:52
  overpay
• 11:52
  for
• 11:53
  a
• 11:53
  deal,
• 11:53
  it
• 11:53
  will
• 11:54
  usually
• 11:54
  wind
• 11:54
  up
• 11:55
  helping
• 11:55
  you
• 11:55
  win
• 11:55
  that
• 11:56
  deal.
• 11:56
  But
• 11:56
  it
• 11:57
  may
• 11:57
  not
• 11:57
  produce
• 11:57
  the
• 11:58
  success
• 11:58
  or
• 11:58
  result
• 11:58
  you
• 11:59
  were
• 11:59
  hoping
• 11:59
  for
• 12:00
  if
• 12:00
  you
• 12:00
  wind
• 12:00
  up
• 12:00
  paying
• 12:01
  too
• 12:01
  much,
• 12:01
  especially
• 12:02
  if
• 12:02
  it's
• 12:02
  by
• 12:02
  your
• 12:02
  gross
• 12:02
  margin.
• 12:03
  So
• 12:03
  you
• 12:03
  got
• 12:03
  to
• 12:04
  feel
• 12:04
  confident
• 12:04
  in
• 12:04
  your
• 12:04
  numbers.
• 12:05
  And
• 12:05
  it
• 12:06
  goes
• 12:06
  back
• 12:06
  to
• 12:06
  what
• 12:06
  Erica
• 12:06
  was
• 12:07
  saying.
• 12:07
  It's
• 12:07
  just
• 12:07
  taking
• 12:08
  this
• 12:08
  seriously
• 12:08
  and
• 12:09
  treating
• 12:09
  yourself
• 12:09
  like
• 12:09
  a
• 12:09
  professional
• 12:10
  and
• 12:10
  treating
• 12:10
  it
• 12:10
  like
• 12:10
  a
• 12:11
  business.
• 12:11
  So
• 12:11
  you
• 12:11
  have
• 12:11
  to
• 12:12
  take
• 12:12
  some
• 12:12
  time
• 12:13
  and
• 12:13
  invest
• 12:13
  time
• 12:14
  and
• 12:14
  effort
• 12:14
  into
• 12:14
  yourself
• 12:14
  and
• 12:15
  your
• 12:15
  business
• 12:15
  to
• 12:16
  feel
• 12:16
  confident
• 12:17
  that
• 12:17
  you,
• 12:17
  you
• 12:17
  know
• 12:17
  what
• 12:18
  the
• 12:18
  numbers
• 12:18
  are
• 12:18
  telling
• 12:18
  you.
• 12:19
  And
• 12:19
  when
• 12:20
  people
• 12:20
  are
• 12:20
  looking
• 12:20
  at
• 12:20
  these
• 12:21
  deals,
• 12:21
  there's
• 12:21
  usually
• 12:21
  a
• 12:21
  handful
• 12:22
  of
• 12:22
  things
• 12:22
  they're
• 12:22
  looking
• 12:22
  for.
• 12:23
  One
• 12:23
  is
• 12:24
  cash
• 12:24
  flow.
• 12:24
  And
• 12:25
  a
• 12:25
  lot
• 12:25
  of
• 12:25
  times
• 12:25
  that's
• 12:25
  going
• 12:26
  to
• 12:26
  be
• 12:26
  measured
• 12:26
  with
• 12:26
  a
• 12:27
  cash
• 12:27
  on
• 12:27
  cash
• 12:27
  return.
• 12:28
  That's
• 12:28
  the
• 12:28
  metric
• 12:28
  you're
• 12:28
  looking
• 12:29
  at
• 12:29
  in
• 12:29
  the
• 12:29
  syndication
• 12:30
  space.
• 12:30
  You'll
• 12:31
  often
• 12:31
  Hear
• 12:31
  the
• 12:31
  terms
• 12:32
  average
• 12:32
  hour
• 12:32
  return
• 12:33
  and
• 12:33
  IRR
• 12:34
  internal
• 12:34
  rate
• 12:34
  of
• 12:34
  return.
• 12:35
  Those
• 12:35
  are
• 12:36
  some
• 12:36
  pretty
• 12:36
  common
• 12:37
  terms
• 12:37
  that
• 12:37
  you'll
• 12:37
  hear.
• 12:38
  Cap
• 12:38
  rate.
• 12:39
  Now,
• 12:39
  for
• 12:39
  me,
• 12:39
  I
• 12:39
  probably
• 12:39
  look
• 12:39
  at
• 12:40
  cap
• 12:40
  rate
• 12:40
  a
• 12:40
  little
• 12:40
  bit
• 12:40
  differently
• 12:41
  than
• 12:41
  many.
• 12:41
  I
• 12:41
  don't
• 12:42
  look
• 12:42
  at
• 12:42
  that
• 12:42
  as
• 12:42
  a
• 12:42
  return
• 12:43
  metric
• 12:43
  as
• 12:43
  much
• 12:44
  as
• 12:44
  I
• 12:44
  do
• 12:44
  a
• 12:45
  barometer.
• 12:45
  I
• 12:45
  use
• 12:45
  that
• 12:46
  as
• 12:46
  something
• 12:46
  that
• 12:46
  tells
• 12:47
  me
• 12:47
  what's
• 12:47
  going
• 12:47
  on
• 12:47
  in
• 12:47
  the
• 12:48
  area,
• 12:48
  and
• 12:48
  it
• 12:48
  lets
• 12:49
  me
• 12:49
  know
• 12:49
  if
• 12:49
  I'm
• 12:49
  kind
• 12:50
  of
• 12:50
  in
• 12:50
  the
• 12:50
  right
• 12:50
  ballpark
• 12:51
  with
• 12:51
  my
• 12:51
  pricing.
• 12:52
  But
• 12:52
  the
• 12:52
  truth
• 12:52
  is,
• 12:53
  unless
• 12:53
  you're
• 12:53
  paying
• 12:53
  more
• 12:54
  cash,
• 12:54
  it's
• 12:54
  not
• 12:54
  really
• 12:55
  going
• 12:55
  to
• 12:55
  be
• 12:55
  a
• 12:55
  return
• 12:55
  metric.
• 12:56
  However,
• 12:56
  as
• 12:56
  a
• 12:56
  general
• 12:57
  rule
• 12:57
  of
• 12:57
  thumb,
• 12:58
  you
• 12:58
  do
• 12:58
  want
• 12:58
  it
• 12:58
  to
• 12:58
  be
• 12:58
  higher
• 12:59
  than
• 12:59
  your
• 12:59
  interest
• 12:59
  rate.
• 13:00
  A
• 13:00
  mistake
• 13:00
  that
• 13:00
  many
• 13:00
  people
• 13:01
  made
• 13:01
  in
• 13:01
  the
• 13:01
  last
• 13:01
  couple
• 13:02
  of
• 13:02
  years.
• 13:02
  Yeah,
• 13:03
  absolutely.
• 13:03
  And
• 13:03
  I
• 13:03
  would
• 13:04
  say
• 13:04
  there's
• 13:04
  this
• 13:04
  initial
• 13:05
  underwriting
• 13:06
  analysis.
• 13:07
  A
• 13:07
  property,
• 13:07
  you
• 13:07
  see
• 13:08
  a
• 13:08
  property,
• 13:08
  you
• 13:09
  do
• 13:09
  your
• 13:09
  initial
• 13:09
  underwriting.
• 13:10
  Some
• 13:10
  people
• 13:11
  call
• 13:11
  it
• 13:11
  what,
• 13:11
  your
• 13:11
  napkin
• 13:12
  math.
• 13:12
  And
• 13:13
  then
• 13:13
  you're.
• 13:13
  Then
• 13:14
  you
• 13:14
  get
• 13:14
  into
• 13:14
  the
• 13:14
  deeper
• 13:15
  details
• 13:15
  of
• 13:15
  underwriting.
• 13:16
  And
• 13:16
  boy,
• 13:17
  Charles,
• 13:17
  I've
• 13:17
  learned
• 13:17
  a
• 13:17
  lot
• 13:17
  from
• 13:18
  you
• 13:18
  on
• 13:18
  some
• 13:18
  of
• 13:18
  those
• 13:18
  deeper
• 13:19
  details.
• 13:19
  Well,
• 13:20
  you
• 13:20
  know,
• 13:20
  listen,
• 13:21
  with
• 13:21
  anything,
• 13:21
  it's
• 13:21
  always
• 13:22
  diving
• 13:22
  into
• 13:22
  it,
• 13:22
  right?
• 13:23
  So,
• 13:23
  you
• 13:23
  know,
• 13:23
  there's
• 13:24
  a
• 13:24
  few
• 13:24
  things
• 13:24
  I
• 13:24
  would
• 13:24
  tell
• 13:24
  you
• 13:25
  that
• 13:25
  commonly
• 13:25
  stand
• 13:26
  out
• 13:26
  mistakes
• 13:26
  that
• 13:26
  I
• 13:27
  see
• 13:27
  people
• 13:27
  make
• 13:27
  in
• 13:27
  underwriting.
• 13:28
  One
• 13:28
  is
• 13:28
  that
• 13:28
  they
• 13:28
  get
• 13:29
  maybe
• 13:29
  too
• 13:29
  aggressive
• 13:30
  on
• 13:30
  the
• 13:31
  rent
• 13:31
  growth.
• 13:32
  And
• 13:32
  if
• 13:32
  you
• 13:32
  feel
• 13:33
  really
• 13:33
  confident
• 13:34
  in
• 13:34
  it
• 13:34
  and
• 13:34
  you
• 13:34
  know
• 13:35
  the
• 13:35
  submarket
• 13:35
  very
• 13:36
  well
• 13:36
  and
• 13:36
  you've
• 13:37
  executed
• 13:37
  or
• 13:38
  seen
• 13:38
  it
• 13:38
  executed
• 13:38
  many
• 13:39
  times,
• 13:39
  then
• 13:40
  you
• 13:40
  know,
• 13:40
  maybe
• 13:40
  there's
• 13:40
  a
• 13:41
  reason
• 13:41
  to
• 13:41
  be
• 13:41
  confident.
• 13:42
  But
• 13:42
  you
• 13:43
  have
• 13:43
  to
• 13:43
  be
• 13:43
  very
• 13:43
  discerning
• 13:44
  to
• 13:44
  make
• 13:44
  sure
• 13:44
  you're
• 13:44
  not
• 13:45
  being
• 13:45
  too
• 13:45
  confident
• 13:46
  just
• 13:46
  to
• 13:46
  win
• 13:46
  a
• 13:46
  deal
• 13:47
  versus,
• 13:48
  you
• 13:48
  know,
• 13:48
  confident
• 13:49
  because
• 13:49
  it's
• 13:49
  actually
• 13:50
  practical.
• 13:50
  So
• 13:51
  make
• 13:51
  sure
• 13:51
  you're
• 13:51
  accounting
• 13:51
  for
• 13:51
  that.
• 13:52
  Another
• 13:52
  thing
• 13:52
  is
• 13:53
  vacancy
• 13:53
  rates.
• 13:53
  And
• 13:54
  this
• 13:54
  is
• 13:54
  something
• 13:54
  that
• 13:55
  definitely
• 13:55
  varies
• 13:55
  from
• 13:56
  person
• 13:56
  to
• 13:56
  person
• 13:56
  based
• 13:57
  on
• 13:57
  how
• 13:57
  they
• 13:57
  underwrite.
• 13:58
  You
• 13:58
  know,
• 13:58
  so
• 13:58
  I've
• 13:59
  seen
• 13:59
  a
• 13:59
  lot
• 13:59
  of
• 13:59
  people
• 13:59
  get
• 14:00
  very
• 14:00
  aggressive
• 14:01
  with
• 14:01
  low
• 14:01
  vacancy
• 14:02
  rates.
• 14:02
  And
• 14:02
  that's
• 14:03
  great
• 14:03
  if
• 14:03
  you
• 14:03
  can
• 14:03
  run
• 14:03
  a
• 14:03
  property
• 14:04
  that
• 14:04
  way.
• 14:04
  But
• 14:05
  in
• 14:05
  general,
• 14:06
  if
• 14:06
  you're
• 14:06
  buying
• 14:06
  C
• 14:07
  class
• 14:07
  or
• 14:07
  even
• 14:07
  B
• 14:07
  class
• 14:08
  properties,
• 14:08
  a
• 14:08
  lot
• 14:08
  of
• 14:08
  times,
• 14:09
  you
• 14:09
  know,
• 14:09
  running
• 14:10
  a
• 14:10
  property
• 14:10
  less
• 14:11
  than
• 14:11
  7
• 14:11
  or
• 14:11
  8%
• 14:12
  is
• 14:13
  very
• 14:13
  unlikely.
• 14:14
  And
• 14:15
  that's
• 14:15
  between
• 14:16
  both
• 14:16
  the
• 14:16
  physical
• 14:16
  and
• 14:16
  the
• 14:17
  economic
• 14:17
  vacancy.
• 14:18
  But
• 14:18
  a
• 14:18
  lot
• 14:19
  of
• 14:19
  times,
• 14:19
  you
• 14:20
  know,
• 14:20
  those
• 14:20
  are
• 14:20
  best
• 14:21
  case
• 14:21
  scenarios.
• 14:22
  Right
• 14:22
  now
• 14:22
  I'm
• 14:22
  not
• 14:23
  seeing
• 14:23
  too
• 14:23
  many
• 14:23
  best
• 14:23
  case
• 14:24
  scenarios.
• 14:24
  I'm
• 14:24
  seeing
• 14:24
  scenarios
• 14:25
  that
• 14:25
  usually
• 14:25
  are
• 14:25
  a
• 14:25
  little
• 14:25
  worse
• 14:26
  than
• 14:26
  that.
• 14:26
  So
• 14:26
  you
• 14:26
  got
• 14:27
  to
• 14:27
  be.
• 14:27
  You
• 14:27
  got
• 14:27
  to
• 14:27
  be
• 14:27
  realistic
• 14:28
  with
• 14:28
  your
• 14:28
  numbers.
• 14:29
  You
• 14:29
  know,
• 14:29
  the
• 14:29
  key
• 14:29
  with
• 14:29
  the
• 14:30
  underwriting,
• 14:30
  keep
• 14:30
  in
• 14:30
  mind
• 14:31
  is
• 14:31
  you
• 14:31
  want
• 14:31
  to
• 14:31
  Be
• 14:32
  you
• 14:32
  want
• 14:32
  to
• 14:32
  be
• 14:32
  conservative
• 14:33
  enough
• 14:34
  that
• 14:34
  you're
• 14:34
  not
• 14:34
  getting
• 14:35
  into
• 14:35
  bad
• 14:35
  deals,
• 14:36
  but
• 14:36
  aggressive
• 14:37
  enough
• 14:37
  that
• 14:37
  you're
• 14:37
  getting
• 14:37
  into
• 14:37
  good
• 14:38
  deals.
• 14:38
  So
• 14:38
  keep
• 14:38
  that
• 14:38
  in
• 14:39
  mind.
• 14:39
  It's
• 14:39
  kind
• 14:39
  of
• 14:39
  a
• 14:40
  balancing
• 14:40
  act.
• 14:40
  Yeah,
• 14:41
  very
• 14:41
  much
• 14:41
  so.
• 14:42
  And
• 14:42
  I
• 14:42
  one
• 14:42
  of
• 14:42
  the
• 14:42
  things
• 14:43
  about
• 14:43
  leases,
• 14:44
  two
• 14:44
  things
• 14:44
  I've
• 14:45
  learned
• 14:45
  on
• 14:45
  that
• 14:45
  I
• 14:46
  had
• 14:46
  a
• 14:46
  property
• 14:46
  that
• 14:46
  was
• 14:46
  a
• 14:47
  36
• 14:47
  unit
• 14:47
  new
• 14:48
  construction
• 14:48
  where
• 14:48
  the
• 14:48
  partner
• 14:49
  had
• 14:49
  backed
• 14:49
  out
• 14:50
  and
• 14:50
  they
• 14:50
  were
• 14:50
  up
• 14:50
  against
• 14:51
  a
• 14:51
  financing
• 14:52
  deadline.
• 14:52
  And
• 14:53
  you
• 14:53
  know,
• 14:53
  in
• 14:53
  those
• 14:53
  situations
• 14:54
  they
• 14:54
  can
• 14:55
  bring
• 14:55
  another
• 14:55
  100k
• 14:56
  to
• 14:56
  the
• 14:56
  table
• 14:56
  and
• 14:57
  you
• 14:57
  know,
• 14:57
  financing
• 14:57
  can
• 14:58
  get
• 14:58
  pushed
• 14:58
  out
• 14:58
  and
• 14:58
  everything's
• 14:59
  okay.
• 14:59
  But
• 15:00
  they
• 15:00
  were
• 15:00
  on
• 15:00
  pretty
• 15:01
  tight
• 15:01
  time
• 15:01
  frames
• 15:01
  for
• 15:01
  that
• 15:02
  one.
• 15:02
  And
• 15:02
  so
• 15:03
  thank
• 15:03
  goodness
• 15:03
  it
• 15:03
  was
• 15:03
  only
• 15:04
  36
• 15:04
  units
• 15:05
  if
• 15:05
  it's
• 15:05
  at
• 15:05
  100%
• 15:06
  occupancy
• 15:07
  or
• 15:07
  100%
• 15:07
  vacancy.
• 15:08
  Right.
• 15:08
  I,
• 15:09
  my
• 15:09
  investor
• 15:09
  that
• 15:10
  was
• 15:10
  looking
• 15:10
  at
• 15:10
  that,
• 15:10
  I
• 15:10
  said,
• 15:11
  we're
• 15:11
  going
• 15:11
  to
• 15:11
  want
• 15:11
  to
• 15:11
  tier
• 15:12
  in
• 15:12
  the
• 15:12
  leases,
• 15:13
  right?
• 15:13
  Because
• 15:14
  one
• 15:14
  of
• 15:14
  the
• 15:14
  things
• 15:14
  is
• 15:14
  when
• 15:15
  you're
• 15:15
  looking
• 15:15
  at
• 15:15
  the
• 15:15
  actual
• 15:16
  dates
• 15:16
  on
• 15:16
  the
• 15:16
  leases
• 15:17
  and
• 15:17
  gosh,
• 15:18
  you
• 15:18
  would
• 15:18
  be
• 15:18
  amazed
• 15:19
  how
• 15:19
  many
• 15:19
  times
• 15:19
  I
• 15:19
  get
• 15:20
  the
• 15:20
  lease
• 15:21
  documentation
• 15:22
  and
• 15:22
  they're
• 15:22
  expired
• 15:23
  and
• 15:23
  this
• 15:23
  person's
• 15:23
  on
• 15:24
  a,
• 15:24
  you
• 15:24
  know,
• 15:24
  a
• 15:25
  default
• 15:25
  month
• 15:25
  to
• 15:26
  month,
• 15:26
  you
• 15:26
  know,
• 15:26
  so
• 15:27
  getting
• 15:27
  the
• 15:27
  actual
• 15:27
  lease
• 15:28
  documentation
• 15:28
  and
• 15:28
  looking
• 15:29
  through
• 15:29
  the
• 15:29
  dates
• 15:29
  and
• 15:29
  that
• 15:30
  I
• 15:30
  was
• 15:30
  suggesting
• 15:30
  that
• 15:31
  we
• 15:31
  tier
• 15:31
  those
• 15:31
  leases
• 15:32
  because
• 15:33
  you'll
• 15:33
  have
• 15:33
  them
• 15:33
  all
• 15:33
  coming
• 15:34
  due
• 15:34
  at
• 15:34
  the
• 15:34
  same
• 15:34
  time
• 15:35
  and
• 15:35
  then
• 15:36
  your
• 15:36
  vacancy
• 15:37
  rate
• 15:37
  can
• 15:37
  shoot
• 15:37
  up
• 15:38
  in
• 15:38
  that
• 15:38
  one
• 15:39
  time
• 15:39
  frame
• 15:39
  if
• 15:39
  you're
• 15:40
  not
• 15:40
  very
• 15:40
  careful.
• 15:41
  So
• 15:42
  in
• 15:42
  looking
• 15:42
  through
• 15:42
  that
• 15:42
  documentation,
• 15:43
  there
• 15:43
  was
• 15:43
  one
• 15:44
  property,
• 15:44
  I
• 15:44
  was
• 15:44
  not
• 15:45
  the
• 15:45
  broker
• 15:45
  on
• 15:45
  it,
• 15:46
  they
• 15:46
  had
• 15:46
  purchased
• 15:46
  the
• 15:47
  property.
• 15:47
  They
• 15:47
  did
• 15:47
  not
• 15:47
  look
• 15:47
  at
• 15:48
  the
• 15:48
  lease
• 15:48
  documentation
• 15:49
  in
• 15:49
  the
• 15:49
  detail
• 15:49
  that
• 15:49
  they
• 15:50
  should
• 15:50
  have.
• 15:50
  And
• 15:51
  a
• 15:51
  lot
• 15:51
  of
• 15:51
  the,
• 15:52
  like
• 15:52
  half
• 15:52
  of
• 15:52
  the
• 15:52
  building
• 15:53
  leases
• 15:53
  came
• 15:53
  up
• 15:54
  all
• 15:54
  in
• 15:54
  June
• 15:54
  and
• 15:54
  July.
• 15:55
  So
• 15:55
  their
• 15:56
  vacancy
• 15:56
  rates
• 15:57
  shot
• 15:57
  up
• 15:58
  right
• 15:58
  after
• 15:58
  purchasing.
• 15:59
  And
• 15:59
  the
• 16:00
  commercial
• 16:00
  lender
• 16:00
  did
• 16:01
  not
• 16:01
  like
• 16:01
  that
• 16:01
  very
• 16:01
  much.
• 16:02
  And
• 16:02
  so
• 16:02
  they
• 16:03
  had
• 16:03
  a
• 16:03
  lot
• 16:03
  of
• 16:03
  conflict
• 16:03
  with
• 16:03
  the
• 16:04
  lender
• 16:04
  of
• 16:04
  being
• 16:04
  like,
• 16:05
  no,
• 16:05
  we've
• 16:05
  got
• 16:05
  that.
• 16:06
  But
• 16:06
  it's
• 16:06
  like,
• 16:06
  obviously
• 16:07
  you
• 16:07
  should
• 16:07
  have
• 16:07
  done
• 16:07
  a
• 16:07
  little
• 16:07
  bit
• 16:07
  deeper
• 16:08
  due
• 16:08
  diligence
• 16:09
  on
• 16:09
  the
• 16:09
  actual
• 16:09
  lease
• 16:09
  documentation.
• 16:10
  So
• 16:11
  getting
• 16:11
  into
• 16:11
  the
• 16:12
  weeds
• 16:12
  with
• 16:12
  it
• 16:12
  and
• 16:13
  really
• 16:13
  into
• 16:13
  the
• 16:13
  details
• 16:14
  of
• 16:14
  like,
• 16:14
  what
• 16:14
  is
• 16:15
  the
• 16:15
  documentation
• 16:16
  say,
• 16:16
  what
• 16:16
  are
• 16:16
  the
• 16:16
  dates
• 16:17
  on
• 16:17
  everything,
• 16:18
  who
• 16:18
  are
• 16:18
  the
• 16:18
  tenants
• 16:18
  and
• 16:19
  how
• 16:19
  do
• 16:19
  they
• 16:19
  qualify
• 16:20
  them?
• 16:20
  That's
• 16:20
  a
• 16:21
  really
• 16:21
  big
• 16:21
  one.
• 16:22
  Sometimes
• 16:22
  they,
• 16:23
  the
• 16:23
  owner
• 16:23
  of
• 16:24
  these
• 16:24
  properties
• 16:25
  intentionally
• 16:26
  is
• 16:26
  just
• 16:26
  getting
• 16:26
  anybody
• 16:27
  they
• 16:27
  can
• 16:27
  in
• 16:28
  to
• 16:28
  make
• 16:28
  the
• 16:28
  net
• 16:28
  operating
• 16:29
  income
• 16:29
  look
• 16:29
  better,
• 16:30
  but
• 16:30
  they
• 16:30
  have,
• 16:31
  they're
• 16:31
  not
• 16:31
  doing
• 16:31
  a
• 16:31
  proper
• 16:32
  qualification
• 16:32
  process
• 16:33
  and
• 16:33
  all
• 16:33
  they're
• 16:33
  doing
• 16:34
  is
• 16:34
  getting
• 16:34
  a
• 16:34
  bunch
• 16:34
  of
• 16:35
  problems
• 16:35
  and
• 16:36
  you're
• 16:36
  about
• 16:36
  to
• 16:37
  inherit
• 16:37
  those
• 16:38
  problems.
• 16:38
  So
• 16:39
  really
• 16:39
  looking
• 16:40
  at
• 16:40
  the
• 16:40
  details
• 16:41
  of
• 16:41
  the
• 16:41
  lease
• 16:41
  Documentation,
• 16:42
  the
• 16:42
  process
• 16:43
  of
• 16:43
  how
• 16:43
  they
• 16:43
  qualify
• 16:43
  tenants,
• 16:44
  all
• 16:44
  that
• 16:44
  stuff
• 16:45
  is
• 16:45
  really
• 16:45
  important.
• 16:46
  You
• 16:46
  know,
• 16:46
  there's
• 16:46
  a
• 16:47
  lot
• 16:47
  of
• 16:47
  truth
• 16:47
  to
• 16:47
  that,
• 16:48
  and
• 16:48
  it's
• 16:48
  something
• 16:48
  I've
• 16:48
  seen
• 16:49
  time
• 16:49
  and
• 16:49
  time
• 16:49
  again,
• 16:49
  especially
• 16:50
  more
• 16:50
  common
• 16:50
  as
• 16:50
  the
• 16:50
  market's
• 16:51
  softening.
• 16:52
  Unfortunately,
• 16:52
  you're
• 16:52
  not
• 16:52
  going
• 16:53
  to
• 16:53
  know
• 16:53
  a
• 16:53
  lot
• 16:53
  of
• 16:53
  that
• 16:53
  until
• 16:53
  you
• 16:53
  get
• 16:54
  in
• 16:54
  the
• 16:54
  contract,
• 16:54
  which
• 16:55
  by
• 16:55
  that
• 16:55
  point
• 16:55
  you're
• 16:55
  spending
• 16:55
  money
• 16:56
  already.
• 16:56
  But
• 16:56
  that's.
• 16:56
  That's
• 16:57
  absolutely
• 16:58
  incredible
• 16:58
  information.
• 16:58
  Because
• 16:59
  the
• 16:59
  thing
• 16:59
  is,
• 16:59
  if
• 16:59
  you're
• 17:00
  inheriting
• 17:00
  the
• 17:01
  problem,
• 17:02
  you
• 17:02
  want
• 17:02
  to
• 17:02
  at
• 17:02
  least
• 17:02
  know
• 17:03
  that.
• 17:03
  Don't
• 17:03
  be
• 17:03
  surprised,
• 17:04
  and
• 17:04
  make
• 17:04
  sure
• 17:04
  you're
• 17:05
  paying
• 17:05
  for
• 17:05
  it.
• 17:05
  You
• 17:05
  know,
• 17:05
  some
• 17:06
  people
• 17:06
  don't
• 17:06
  want
• 17:06
  the
• 17:06
  problem,
• 17:07
  so
• 17:07
  they'll
• 17:07
  stay
• 17:07
  away
• 17:07
  from
• 17:07
  it.
• 17:08
  Maybe
• 17:08
  that's
• 17:08
  not
• 17:08
  the
• 17:08
  type
• 17:08
  of
• 17:09
  property
• 17:09
  they
• 17:09
  want.
• 17:09
  Other
• 17:10
  people
• 17:10
  will
• 17:10
  say
• 17:10
  they're
• 17:11
  fine
• 17:11
  with
• 17:11
  it,
• 17:11
  they
• 17:11
  just
• 17:12
  got
• 17:12
  to
• 17:12
  pay
• 17:12
  the
• 17:12
  right
• 17:12
  price.
• 17:12
  So
• 17:13
  that
• 17:13
  way
• 17:13
  it
• 17:13
  reflects
• 17:13
  that.
• 17:13
  So
• 17:14
  always
• 17:14
  keep
• 17:14
  that
• 17:15
  in
• 17:15
  mind.
• 17:15
  And
• 17:15
  these
• 17:15
  are
• 17:16
  opportunities
• 17:16
  for
• 17:17
  renegotiation.
• 17:18
  So
• 17:18
  you've
• 17:18
  submitted
• 17:19
  a
• 17:19
  letter
• 17:19
  of
• 17:19
  intent,
• 17:20
  you're
• 17:20
  now
• 17:20
  under
• 17:20
  contract,
• 17:21
  a
• 17:21
  certain
• 17:21
  price,
• 17:22
  you
• 17:22
  know,
• 17:23
  you're
• 17:23
  going
• 17:23
  through,
• 17:23
  and
• 17:23
  you're
• 17:23
  doing
• 17:24
  your
• 17:24
  due
• 17:24
  diligence
• 17:24
  and
• 17:25
  you're
• 17:25
  finding
• 17:25
  these
• 17:25
  things,
• 17:26
  and
• 17:26
  you
• 17:26
  go,
• 17:27
  this
• 17:27
  doesn't
• 17:27
  look
• 17:27
  right.
• 17:28
  And
• 17:28
  these
• 17:28
  are
• 17:29
  points
• 17:29
  for
• 17:29
  renegotiation,
• 17:30
  potentially.
• 17:31
  So
• 17:31
  it's
• 17:31
  something
• 17:32
  to
• 17:32
  take
• 17:32
  serious
• 17:33
  because
• 17:33
  it
• 17:33
  could
• 17:33
  ultimately
• 17:34
  save
• 17:34
  you
• 17:34
  money
• 17:35
  on
• 17:35
  the
• 17:35
  asset
• 17:36
  value
• 17:36
  of
• 17:36
  the
• 17:36
  price
• 17:37
  that
• 17:37
  you're
• 17:37
  paying,
• 17:37
  too.
• 17:38
  And
• 17:38
  I
• 17:38
  always
• 17:38
  love
• 17:38
  renegotiation
• 17:39
  points
• 17:39
  in
• 17:39
  a
• 17:40
  transaction.
• 17:41
  You
• 17:41
  know,
• 17:41
  they
• 17:42
  can
• 17:42
  definitely
• 17:42
  be
• 17:42
  a
• 17:42
  good
• 17:42
  thing
• 17:43
  if
• 17:43
  you're
• 17:43
  on
• 17:43
  the
• 17:43
  winning
• 17:43
  side
• 17:43
  of
• 17:43
  that.
• 17:44
  That
• 17:44
  equation.
• 17:44
  Right?
• 17:45
  Yeah.
• 17:45
  Well,
• 17:46
  let's
• 17:46
  talk
• 17:46
  about
• 17:46
  something
• 17:47
  else.
• 17:47
  Let's
• 17:47
  talk
• 17:47
  about
• 17:47
  funding
• 17:48
  Meals,
• 17:48
  always
• 17:48
  an
• 17:49
  important
• 17:49
  piece
• 17:49
  here,
• 17:49
  right?
• 17:50
  So.
• 17:50
  So
• 17:51
  probably
• 17:51
  the
• 17:51
  most
• 17:51
  important
• 17:51
  piece,
• 17:52
  you
• 17:52
  know,
• 17:52
  finding
• 17:52
  the
• 17:52
  deals,
• 17:53
  one,
• 17:53
  one
• 17:53
  part
• 17:53
  of
• 17:53
  the
• 17:54
  puzzle,
• 17:54
  but
• 17:54
  then
• 17:54
  you
• 17:55
  got
• 17:55
  the
• 17:55
  funding,
• 17:56
  which
• 17:56
  arguably
• 17:57
  is
• 17:57
  the
• 17:57
  bigger
• 17:57
  part.
• 17:58
  Right?
• 17:58
  Exactly.
• 17:59
  And
• 17:59
  I
• 18:00
  always
• 18:00
  tell
• 18:00
  people
• 18:00
  like,
• 18:01
  this
• 18:01
  is
• 18:01
  why
• 18:01
  investors
• 18:02
  that
• 18:02
  are
• 18:03
  wanting
• 18:03
  to
• 18:03
  jump
• 18:03
  straight
• 18:03
  into
• 18:04
  commercial
• 18:04
  and
• 18:05
  like,
• 18:05
  the
• 18:05
  reason
• 18:05
  you
• 18:05
  want
• 18:05
  to
• 18:06
  be
• 18:06
  careful
• 18:06
  of
• 18:06
  jumping
• 18:06
  straight
• 18:07
  into
• 18:07
  commercial
• 18:08
  rather
• 18:08
  than
• 18:08
  working
• 18:08
  your
• 18:08
  way
• 18:09
  in
• 18:09
  residential
• 18:09
  and
• 18:10
  working
• 18:10
  your
• 18:10
  way
• 18:10
  up
• 18:11
  is
• 18:11
  because
• 18:11
  of
• 18:11
  the
• 18:11
  lending
• 18:12
  and
• 18:12
  the
• 18:12
  funding
• 18:12
  and
• 18:13
  how
• 18:13
  different
• 18:13
  it
• 18:13
  is
• 18:14
  and
• 18:14
  how
• 18:14
  different
• 18:15
  you
• 18:15
  need
• 18:15
  to
• 18:15
  be
• 18:16
  in
• 18:16
  order
• 18:16
  to
• 18:16
  pull
• 18:16
  off
• 18:17
  commercial
• 18:17
  funding
• 18:17
  at
• 18:18
  a
• 18:18
  high
• 18:18
  level.
• 18:18
  I
• 18:19
  think
• 18:19
  I
• 18:19
  told
• 18:19
  you,
• 18:19
  Dave
• 18:20
  Ramsey
• 18:20
  and
• 18:21
  Grant
• 18:21
  Cardone,
• 18:22
  both
• 18:22
  of
• 18:22
  them
• 18:22
  are
• 18:22
  the
• 18:23
  way
• 18:23
  they
• 18:23
  are,
• 18:23
  and
• 18:23
  their
• 18:24
  financial
• 18:24
  beliefs
• 18:24
  are
• 18:24
  that
• 18:25
  way
• 18:25
  based
• 18:25
  on
• 18:25
  commercial
• 18:26
  lending.
• 18:27
  So,
• 18:27
  you
• 18:27
  know,
• 18:28
  Dave
• 18:28
  Ramsey,
• 18:28
  his
• 18:28
  loans
• 18:29
  got
• 18:29
  recalled,
• 18:29
  he
• 18:30
  couldn't
• 18:30
  make
• 18:30
  it
• 18:30
  work.
• 18:30
  He
• 18:31
  lost
• 18:31
  a
• 18:31
  lot.
• 18:32
  That's
• 18:32
  Mr.
• 18:32
  No
• 18:32
  Debt.
• 18:33
  Dave
• 18:33
  Ramsey.
• 18:33
  Grant
• 18:34
  Cardone,
• 18:34
  on
• 18:34
  the
• 18:34
  other
• 18:35
  hand,
• 18:35
  had
• 18:35
  $30
• 18:35
  million
• 18:36
  worth
• 18:36
  of
• 18:36
  loans
• 18:36
  get
• 18:36
  recalled.
• 18:37
  He
• 18:37
  went
• 18:37
  and
• 18:37
  got
• 18:38
  an
• 18:38
  attorney
• 18:38
  and
• 18:39
  fought
• 18:39
  it
• 18:39
  tooth
• 18:39
  and
• 18:39
  nail,
• 18:40
  kept
• 18:40
  all
• 18:40
  his
• 18:40
  assets
• 18:41
  and
• 18:41
  that's
• 18:41
  why
• 18:41
  he's
• 18:42
  all
• 18:42
  the
• 18:42
  leverage
• 18:42
  in
• 18:42
  the
• 18:43
  world.
• 18:43
  Mr.
• 18:43
  Grant
• 18:43
  Card.
• 18:44
  So
• 18:44
  commercial
• 18:45
  lending
• 18:45
  is
• 18:46
  no
• 18:46
  joke
• 18:46
  and
• 18:46
  it's
• 18:47
  something
• 18:47
  to
• 18:47
  definitely
• 18:48
  make
• 18:48
  sure
• 18:48
  you're
• 18:49
  prepared
• 18:49
  before
• 18:49
  you
• 18:49
  get
• 18:50
  into
• 18:50
  it.
• 18:50
  Yeah.
• 18:51
  So
• 18:51
  one
• 18:52
  thing
• 18:52
  I
• 18:52
  think
• 18:52
  that's
• 18:52
  really
• 18:53
  important
• 18:53
  to
• 18:53
  understand,
• 18:54
  especially
• 18:55
  for
• 18:55
  anybody
• 18:55
  listening
• 18:55
  this,
• 18:55
  who
• 18:56
  comes
• 18:56
  from
• 18:56
  a
• 18:56
  single
• 18:56
  family
• 18:57
  background.
• 18:57
  The
• 18:58
  loan
• 18:58
  programs
• 18:59
  that
• 18:59
  you're
• 18:59
  going
• 18:59
  to
• 18:59
  get
• 18:59
  are
• 19:00
  very
• 19:00
  different
• 19:00
  on
• 19:00
  the
• 19:00
  commercial
• 19:01
  side.
• 19:01
  And
• 19:01
  the
• 19:02
  biggest
• 19:02
  difference
• 19:02
  is
• 19:02
  the
• 19:02
  length
• 19:03
  of
• 19:03
  time
• 19:03
  that
• 19:03
  they're
• 19:03
  for.
• 19:04
  So
• 19:04
  when
• 19:05
  you're
• 19:05
  going
• 19:05
  out
• 19:05
  and
• 19:05
  you're
• 19:05
  buying
• 19:06
  a
• 19:06
  single
• 19:06
  family
• 19:06
  property,
• 19:07
  you're
• 19:07
  getting
• 19:07
  a
• 19:07
  loan
• 19:07
  with
• 19:07
  a
• 19:07
  15
• 19:08
  or
• 19:08
  30
• 19:08
  year
• 19:09
  term.
• 19:10
  That
• 19:10
  gives
• 19:10
  you
• 19:10
  a
• 19:10
  lot
• 19:10
  of
• 19:11
  time.
• 19:11
  You
• 19:11
  can
• 19:11
  ride
• 19:12
  out
• 19:12
  swings
• 19:13
  in
• 19:13
  market
• 19:13
  cycles.
• 19:14
  But
• 19:14
  in
• 19:14
  the
• 19:14
  multifamily
• 19:15
  side,
• 19:16
  most
• 19:16
  times
• 19:16
  your
• 19:16
  loans
• 19:17
  are
• 19:17
  if
• 19:17
  you're
• 19:18
  on
• 19:18
  the
• 19:18
  short
• 19:18
  term
• 19:18
  side,
• 19:18
  probably
• 19:19
  two
• 19:19
  to
• 19:19
  three
• 19:19
  years
• 19:20
  and
• 19:20
  if
• 19:20
  you're
• 19:20
  on
• 19:20
  the
• 19:21
  long
• 19:21
  term
• 19:21
  side,
• 19:22
  five
• 19:22
  to
• 19:22
  12
• 19:22
  years.
• 19:23
  So
• 19:23
  what's
• 19:24
  the
• 19:24
  risk
• 19:24
  with
• 19:24
  that?
• 19:25
  Well,
• 19:25
  the
• 19:25
  risk
• 19:25
  is
• 19:26
  that
• 19:26
  market
• 19:26
  conditions
• 19:27
  change
• 19:28
  while
• 19:28
  you're
• 19:28
  in
• 19:28
  that
• 19:28
  same
• 19:29
  loan.
• 19:29
  And
• 19:30
  as
• 19:30
  long
• 19:30
  as
• 19:30
  you're
• 19:31
  paying
• 19:31
  the
• 19:32
  debt
• 19:32
  service,
• 19:32
  that's
• 19:33
  okay
• 19:33
  until
• 19:34
  the
• 19:34
  loan
• 19:34
  matures.
• 19:35
  But
• 19:35
  you
• 19:36
  can
• 19:36
  get
• 19:36
  caught
• 19:36
  at
• 19:37
  a
• 19:37
  time
• 19:37
  where
• 19:38
  the
• 19:38
  property
• 19:38
  may
• 19:39
  not
• 19:39
  be
• 19:39
  quite
• 19:39
  as
• 19:39
  valuable
• 19:40
  as
• 19:40
  you
• 19:40
  would
• 19:41
  hope.
• 19:41
  And
• 19:41
  because
• 19:42
  of
• 19:42
  that,
• 19:42
  it's
• 19:42
  not
• 19:42
  as
• 19:42
  simple
• 19:43
  to
• 19:43
  refinance
• 19:43
  as
• 19:43
  you
• 19:44
  as
• 19:44
  you
• 19:44
  were
• 19:44
  expecting.
• 19:45
  So
• 19:45
  you
• 19:45
  know,
• 19:46
  there's
• 19:46
  people
• 19:46
  I
• 19:46
  know
• 19:46
  who
• 19:47
  actually
• 19:47
  had
• 19:47
  that
• 19:47
  happen
• 19:47
  in
• 19:47
  like
• 19:48
  2009,
• 19:48
  2010
• 19:49
  with
• 19:49
  like
• 19:49
  a
• 19:49
  Fannie
• 19:50
  Mae
• 19:50
  or
• 19:50
  Freddie
• 19:50
  Mac
• 19:51
  loan.
• 19:51
  They
• 19:51
  were
• 19:51
  paying
• 19:51
  the
• 19:52
  debt
• 19:52
  service
• 19:52
  every
• 19:52
  month,
• 19:53
  but
• 19:53
  their
• 19:53
  maturity
• 19:54
  date
• 19:54
  came
• 19:54
  due.
• 19:55
  The
• 19:55
  property
• 19:55
  was
• 19:55
  only
• 19:55
  worth
• 19:56
  a
• 19:56
  fraction
• 19:56
  of
• 19:56
  what
• 19:56
  it
• 19:56
  was
• 19:57
  when
• 19:57
  they
• 19:57
  first
• 19:57
  took
• 19:58
  that
• 19:58
  loan
• 19:58
  out
• 19:58
  and
• 19:59
  they
• 19:59
  actually
• 19:59
  gave
• 19:59
  those
• 19:59
  properties
• 20:00
  back
• 20:00
  to
• 20:00
  the
• 20:00
  lender.
• 20:01
  So
• 20:01
  that's
• 20:02
  a
• 20:02
  very
• 20:02
  serious
• 20:02
  thing,
• 20:03
  something
• 20:03
  you
• 20:03
  can't
• 20:04
  take
• 20:04
  lightly.
• 20:04
  But
• 20:04
  you
• 20:04
  have
• 20:05
  to
• 20:05
  just
• 20:05
  really
• 20:05
  assess
• 20:05
  your
• 20:06
  risk.
• 20:06
  And
• 20:06
  again,
• 20:06
  it
• 20:07
  comes
• 20:07
  back
• 20:07
  to
• 20:07
  knowing
• 20:07
  your
• 20:07
  numbers
• 20:08
  and
• 20:08
  being
• 20:08
  confident
• 20:09
  in
• 20:09
  what
• 20:09
  you're
• 20:09
  putting
• 20:09
  forth
• 20:10
  and
• 20:10
  also
• 20:10
  not
• 20:11
  paying
• 20:11
  on
• 20:11
  pro
• 20:11
  forma.
• 20:12
  Yeah,
• 20:12
  right.
• 20:13
  On
• 20:13
  our
• 20:13
  industrial
• 20:14
  building
• 20:15
  we
• 20:16
  finally.
• 20:17
  Right.
• 20:17
  We
• 20:17
  bought
• 20:17
  that
• 20:17
  in
• 20:17
  2020.
• 20:18
  October
• 20:18
  2020
• 20:19
  is
• 20:19
  when
• 20:19
  we
• 20:19
  closed.
• 20:20
  We
• 20:20
  finally
• 20:20
  were
• 20:21
  just
• 20:21
  able
• 20:21
  to
• 20:21
  refinance
• 20:22
  out
• 20:22
  of
• 20:22
  that
• 20:22
  arm
• 20:23
  and
• 20:24
  into
• 20:24
  something
• 20:24
  that's
• 20:25
  a
• 20:25
  long
• 20:25
  term
• 20:25
  funding
• 20:26
  option.
• 20:27
  The
• 20:27
  bank,
• 20:27
  we
• 20:27
  had
• 20:27
  to
• 20:28
  actually
• 20:28
  negotiate
• 20:28
  with
• 20:29
  the
• 20:29
  bank
• 20:29
  for
• 20:29
  them
• 20:29
  to
• 20:29
  take
• 20:30
  a
• 20:30
  slight
• 20:30
  loss
• 20:31
  on
• 20:31
  the
• 20:31
  value
• 20:31
  of
• 20:31
  the
• 20:31
  property.
• 20:32
  So
• 20:33
  they
• 20:33
  were
• 20:33
  willing
• 20:33
  to
• 20:33
  do
• 20:34
  that.
• 20:34
  And
• 20:34
  the
• 20:34
  only
• 20:35
  reason
• 20:35
  they're
• 20:35
  willing
• 20:35
  to
• 20:36
  do
• 20:36
  that
• 20:36
  is
• 20:36
  because
• 20:36
  we
• 20:36
  have
• 20:37
  a
• 20:37
  great
• 20:37
  relationship
• 20:38
  with
• 20:38
  them
• 20:38
  and
• 20:39
  we've
• 20:39
  been,
• 20:39
  you
• 20:40
  know,
• 20:40
  very
• 20:40
  solid
• 20:41
  with
• 20:41
  them.
• 20:42
  It's
• 20:42
  sba.
• 20:42
  So,
• 20:43
  you
• 20:43
  know,
• 20:43
  once
• 20:43
  you
• 20:43
  get
• 20:43
  your
• 20:43
  first
• 20:44
  SBA
• 20:44
  loan,
• 20:44
  they're
• 20:45
  like
• 20:45
  a
• 20:45
  long
• 20:46
  term
• 20:46
  partner
• 20:46
  with
• 20:46
  you,
• 20:47
  which
• 20:47
  we're
• 20:47
  grateful
• 20:48
  for.
• 20:48
  That's
• 20:48
  why
• 20:48
  it's
• 20:48
  so
• 20:48
  difficult
• 20:49
  to
• 20:49
  get
• 20:49
  in
• 20:49
  the
• 20:49
  first
• 20:49
  place,
• 20:50
  though.
• 20:50
  So
• 20:51
  they
• 20:51
  were
• 20:51
  willing
• 20:52
  to
• 20:52
  negotiate
• 20:52
  a
• 20:53
  slight
• 20:53
  loss
• 20:53
  in
• 20:53
  order
• 20:53
  for
• 20:54
  us
• 20:54
  to
• 20:54
  refinance
• 20:54
  out
• 20:55
  and
• 20:55
  thank
• 20:55
  goodness.
• 20:56
  So
• 20:56
  they're
• 20:57
  partners
• 20:57
  for
• 20:57
  sure.
• 20:58
  Oh
• 20:58
  yeah,
• 20:58
  that's
• 20:59
  the
• 20:59
  truth
• 20:59
  of
• 20:59
  it.
• 20:59
  So
• 21:00
  aside
• 21:00
  from
• 21:00
  debt,
• 21:01
  you
• 21:01
  also
• 21:01
  have
• 21:01
  equity.
• 21:02
  So
• 21:02
  keep
• 21:02
  in
• 21:02
  mind
• 21:02
  that
• 21:03
  that's
• 21:03
  going
• 21:03
  to
• 21:03
  be
• 21:03
  the
• 21:03
  loan.
• 21:04
  That's
• 21:04
  what
• 21:04
  you're
• 21:04
  getting
• 21:04
  from.
• 21:05
  You
• 21:05
  know,
• 21:05
  it
• 21:05
  could
• 21:05
  be
• 21:05
  a
• 21:06
  conventional
• 21:06
  lender,
• 21:06
  it
• 21:06
  could
• 21:07
  be
• 21:07
  a
• 21:07
  creative
• 21:08
  lender.
• 21:08
  You
• 21:08
  know,
• 21:09
  maybe
• 21:09
  it's
• 21:09
  a
• 21:09
  private
• 21:09
  lender,
• 21:10
  maybe
• 21:10
  it's
• 21:10
  a,
• 21:11
  it's
• 21:11
  a
• 21:12
  seller
• 21:12
  who's
• 21:12
  going
• 21:12
  to
• 21:12
  give
• 21:12
  you
• 21:13
  seller
• 21:13
  financing.
• 21:14
  So
• 21:14
  there's
• 21:14
  all
• 21:14
  different
• 21:15
  scenarios
• 21:15
  you
• 21:15
  can
• 21:15
  use
• 21:16
  for
• 21:16
  either
• 21:16
  debt
• 21:16
  or
• 21:16
  equity.
• 21:17
  And
• 21:17
  sometimes
• 21:17
  you're
• 21:18
  only
• 21:18
  limited
• 21:18
  by
• 21:18
  your
• 21:18
  imagination.
• 21:19
  So
• 21:19
  you
• 21:19
  got
• 21:19
  to
• 21:19
  keep
• 21:20
  that
• 21:20
  in
• 21:20
  mind.
• 21:20
  Right.
• 21:21
  So
• 21:21
  on
• 21:21
  the,
• 21:22
  on
• 21:22
  the
• 21:22
  debt
• 21:22
  side,
• 21:23
  most
• 21:23
  deals
• 21:24
  are
• 21:24
  going
• 21:24
  to
• 21:24
  have
• 21:24
  that
• 21:25
  as
• 21:25
  the
• 21:25
  larger
• 21:26
  piece
• 21:26
  of
• 21:26
  what
• 21:26
  they
• 21:26
  call
• 21:26
  the
• 21:27
  capital
• 21:27
  stack.
• 21:28
  And
• 21:28
  then
• 21:28
  the
• 21:28
  equity
• 21:28
  is
• 21:28
  usually
• 21:29
  going
• 21:29
  to
• 21:29
  be
• 21:29
  the
• 21:29
  difference
• 21:29
  between
• 21:29
  whatever
• 21:30
  your
• 21:30
  purchase
• 21:30
  price
• 21:31
  is
• 21:31
  and
• 21:31
  your
• 21:32
  loan
• 21:32
  amount.
• 21:32
  So,
• 21:33
  you
• 21:33
  know,
• 21:33
  there's
• 21:33
  different
• 21:34
  ways
• 21:34
  you
• 21:34
  can
• 21:34
  fund
• 21:34
  it.
• 21:34
  Some
• 21:35
  people
• 21:35
  have
• 21:35
  their
• 21:35
  own
• 21:35
  money.
• 21:36
  They're
• 21:36
  going
• 21:36
  to
• 21:36
  go
• 21:36
  out
• 21:36
  and
• 21:36
  buy
• 21:37
  properties
• 21:37
  and
• 21:37
  they're
• 21:37
  going
• 21:37
  to
• 21:37
  use
• 21:38
  their
• 21:38
  own,
• 21:38
  their
• 21:38
  own
• 21:38
  capital.
• 21:39
  That's
• 21:39
  okay.
• 21:40
  That's
• 21:40
  actually
• 21:40
  a
• 21:40
  great
• 21:40
  way
• 21:40
  to
• 21:40
  do
• 21:41
  it,
• 21:41
  probably
• 21:41
  a
• 21:41
  safer
• 21:42
  way.
• 21:42
  There's
• 21:42
  going
• 21:42
  to
• 21:42
  be
• 21:42
  some
• 21:43
  people
• 21:43
  who
• 21:43
  maybe
• 21:44
  they
• 21:44
  don't
• 21:44
  have,
• 21:44
  you
• 21:45
  know,
• 21:45
  two
• 21:45
  or
• 21:45
  three
• 21:45
  or
• 21:46
  $10
• 21:46
  million
• 21:46
  to
• 21:46
  go
• 21:46
  out
• 21:46
  and
• 21:47
  put
• 21:47
  in
• 21:47
  one
• 21:47
  of
• 21:47
  these
• 21:47
  properties,
• 21:48
  but
• 21:48
  they
• 21:48
  have
• 21:48
  50
• 21:49
  or
• 21:49
  100
• 21:49
  or
• 21:49
  $200,000
• 21:50
  and
• 21:50
  they
• 21:50
  want
• 21:50
  to
• 21:51
  invest
• 21:51
  passively
• 21:51
  in
• 21:52
  a
• 21:52
  syndication.
• 21:53
  That's
• 21:53
  another
• 21:53
  way.
• 21:54
  So
• 21:54
  in
• 21:54
  that
• 21:54
  example,
• 21:55
  you're
• 21:55
  getting
• 21:55
  a
• 21:56
  lot
• 21:56
  of
• 21:56
  investors
• 21:57
  to
• 21:57
  put
• 21:57
  a
• 21:57
  smaller
• 21:58
  amount
• 21:58
  in
• 21:58
  and
• 21:59
  the
• 21:59
  sum
• 21:59
  of
• 21:59
  all
• 21:59
  the
• 22:00
  parts
• 22:00
  gives
• 22:00
  you
• 22:00
  the
• 22:00
  amount
• 22:01
  of
• 22:01
  capital
• 22:01
  you
• 22:01
  need
• 22:01
  to
• 22:01
  do
• 22:02
  the
• 22:02
  deal.
• 22:02
  In
• 22:02
  other
• 22:03
  cases
• 22:03
  it
• 22:03
  could
• 22:04
  be,
• 22:04
  you
• 22:04
  know,
• 22:04
  finding
• 22:05
  larger
• 22:05
  partners.
• 22:06
  You
• 22:06
  know,
• 22:06
  it
• 22:06
  could
• 22:06
  be
• 22:07
  somebody
• 22:07
  who
• 22:07
  has
• 22:08
  access
• 22:08
  to
• 22:08
  money.
• 22:09
  It
• 22:09
  could
• 22:09
  be,
• 22:09
  you
• 22:10
  know,
• 22:10
  a
• 22:10
  more
• 22:10
  seasoned
• 22:11
  group
• 22:11
  like
• 22:11
  a
• 22:11
  family
• 22:11
  office.
• 22:12
  Now
• 22:13
  if
• 22:13
  you're
• 22:13
  just
• 22:13
  starting
• 22:13
  out,
• 22:14
  having
• 22:14
  access
• 22:14
  to
• 22:15
  something
• 22:15
  like
• 22:15
  a
• 22:15
  family
• 22:15
  office
• 22:16
  probably
• 22:16
  isn't
• 22:16
  going
• 22:16
  to
• 22:16
  be
• 22:16
  a
• 22:17
  viable
• 22:17
  option.
• 22:17
  You
• 22:18
  know,
• 22:18
  if
• 22:18
  you're
• 22:18
  established
• 22:19
  and
• 22:19
  you've
• 22:19
  done
• 22:19
  a
• 22:19
  couple
• 22:19
  of
• 22:19
  deals
• 22:20
  and
• 22:20
  you
• 22:20
  have
• 22:20
  track
• 22:20
  record,
• 22:21
  that's
• 22:21
  when
• 22:21
  you
• 22:21
  get
• 22:22
  access
• 22:22
  to
• 22:22
  some
• 22:22
  of
• 22:22
  those
• 22:22
  bigger,
• 22:23
  bigger
• 22:23
  players
• 22:24
  that
• 22:24
  are
• 22:24
  out
• 22:24
  there.
• 22:25
  All
• 22:25
  different
• 22:25
  ways,
• 22:25
  but
• 22:26
  you
• 22:26
  know,
• 22:26
  you
• 22:26
  want
• 22:27
  to
• 22:27
  make
• 22:27
  sure
• 22:27
  that
• 22:27
  you
• 22:27
  feel
• 22:28
  confident
• 22:29
  having
• 22:29
  the
• 22:29
  capital
• 22:29
  before
• 22:30
  you
• 22:30
  do
• 22:30
  these
• 22:30
  deals
• 22:31
  for
• 22:31
  a
• 22:31
  few
• 22:31
  reasons.
• 22:32
  One,
• 22:32
  your
• 22:32
  reputation
• 22:33
  gets
• 22:33
  ruined
• 22:34
  if
• 22:34
  you
• 22:34
  get
• 22:34
  under
• 22:35
  contract
• 22:35
  and
• 22:35
  you
• 22:35
  can't
• 22:36
  close.
• 22:36
  You
• 22:36
  know,
• 22:36
  it's
• 22:36
  not
• 22:37
  to
• 22:37
  say
• 22:37
  that
• 22:37
  you
• 22:37
  can't
• 22:37
  recover
• 22:38
  it,
• 22:38
  but
• 22:38
  it
• 22:39
  takes
• 22:39
  time
• 22:39
  and
• 22:39
  effort
• 22:39
  and
• 22:40
  it's
• 22:40
  definitely
• 22:40
  going
• 22:41
  to
• 22:41
  set
• 22:41
  you
• 22:41
  back.
• 22:41
  And
• 22:42
  it's
• 22:42
  a
• 22:42
  small
• 22:42
  world.
• 22:43
  It's
• 22:43
  much
• 22:43
  smaller
• 22:44
  in
• 22:44
  this
• 22:44
  world
• 22:44
  than
• 22:44
  you
• 22:45
  think.
• 22:45
  Everyone
• 22:45
  knows
• 22:46
  everyone,
• 22:46
  right?
• 22:47
  So,
• 22:47
  like,
• 22:48
  in
• 22:48
  comparison.
• 22:49
  And
• 22:49
  this
• 22:49
  is
• 22:49
  just
• 22:50
  a
• 22:50
  random,
• 22:50
  you
• 22:50
  know,
• 22:50
  a
• 22:50
  random
• 22:51
  example
• 22:51
  I'm
• 22:51
  going
• 22:51
  to
• 22:51
  give.
• 22:52
  I
• 22:52
  don't
• 22:52
  know
• 22:52
  the
• 22:52
  exact
• 22:53
  number.
• 22:53
  Erica
• 22:53
  might,
• 22:54
  but
• 22:54
  we're
• 22:54
  both
• 22:55
  in
• 22:55
  the
• 22:55
  Charlotte
• 22:55
  area,
• 22:56
  so
• 22:56
  there's
• 22:57
  probably.
• 22:57
  Would
• 22:57
  you
• 22:57
  say
• 22:57
  there's
• 22:58
  thousands
• 22:58
  of
• 22:58
  residential
• 22:59
  real
• 22:59
  estate
• 22:59
  agents
• 22:59
  in
• 23:00
  Charlotte?
• 23:00
  16,000.
• 23:02
  According
• 23:02
  to
• 23:03
  now,
• 23:04
  if
• 23:04
  you
• 23:04
  do
• 23:04
  more
• 23:04
  than
• 23:05
  two
• 23:05
  deals
• 23:05
  a
• 23:06
  year,
• 23:06
  you're
• 23:06
  in
• 23:06
  the
• 23:06
  top
• 23:06
  50%,
• 23:07
  though.
• 23:07
  So,
• 23:08
  okay,
• 23:08
  so
• 23:08
  we'll
• 23:09
  go
• 23:09
  with
• 23:09
  16,000.
• 23:10
  So
• 23:10
  16,000
• 23:11
  residential
• 23:12
  real
• 23:12
  estate
• 23:12
  agents.
• 23:13
  So
• 23:13
  to
• 23:13
  put
• 23:14
  in
• 23:14
  comparison
• 23:15
  for
• 23:15
  multifamily,
• 23:16
  and
• 23:16
  this
• 23:16
  is
• 23:16
  for
• 23:17
  like
• 23:17
  any
• 23:17
  market
• 23:17
  in
• 23:17
  the
• 23:18
  country,
• 23:18
  there's
• 23:18
  probably
• 23:19
  20
• 23:19
  to
• 23:19
  50
• 23:20
  people
• 23:20
  that
• 23:21
  control
• 23:21
  the
• 23:22
  multifamily
• 23:22
  space.
• 23:23
  So.
• 23:23
  And
• 23:24
  usually
• 23:24
  it's
• 23:24
  a
• 23:24
  handful
• 23:24
  of
• 23:25
  brokerages.
• 23:25
  Most
• 23:26
  brokerages
• 23:26
  have,
• 23:27
  you
• 23:27
  know,
• 23:27
  anywhere
• 23:28
  from
• 23:28
  one
• 23:28
  to
• 23:28
  five
• 23:29
  people
• 23:29
  in
• 23:29
  them
• 23:29
  that
• 23:29
  are
• 23:29
  actively
• 23:30
  working
• 23:30
  on
• 23:30
  multifamily.
• 23:31
  And
• 23:32
  it's
• 23:32
  a
• 23:32
  small
• 23:32
  space.
• 23:32
  And
• 23:32
  as
• 23:33
  Erica
• 23:33
  said,
• 23:33
  everybody
• 23:34
  knows
• 23:34
  everybody.
• 23:35
  So
• 23:35
  when
• 23:36
  you
• 23:36
  see
• 23:36
  each
• 23:36
  other
• 23:36
  at
• 23:36
  an
• 23:37
  industry
• 23:37
  event,
• 23:37
  word
• 23:38
  spreads,
• 23:38
  you
• 23:38
  know,
• 23:38
  you
• 23:38
  have
• 23:39
  a
• 23:39
  drink
• 23:39
  or
• 23:39
  two,
• 23:39
  you're
• 23:39
  talking,
• 23:40
  and
• 23:40
  all
• 23:40
  of
• 23:40
  a
• 23:41
  sudden,
• 23:41
  you
• 23:41
  know,
• 23:41
  you
• 23:42
  tell
• 23:42
  them
• 23:42
  more
• 23:42
  stories
• 23:43
  about
• 23:43
  who
• 23:43
  had
• 23:43
  what
• 23:44
  experience
• 23:44
  with
• 23:44
  what
• 23:44
  person
• 23:45
  and
• 23:46
  it
• 23:46
  spread.
• 23:46
  So
• 23:46
  keep
• 23:46
  that
• 23:47
  in
• 23:47
  mind
• 23:47
  just
• 23:47
  like
• 23:48
  any
• 23:48
  other
• 23:48
  industry.
• 23:48
  Yep,
• 23:49
  absolutely.
• 23:50
  And
• 23:51
  just
• 23:51
  from
• 23:52
  a
• 23:52
  funding
• 23:52
  perspective
• 23:53
  also
• 23:53
  of
• 23:53
  like,
• 23:53
  what
• 23:54
  broker
• 23:54
  you're
• 23:54
  choosing
• 23:54
  to
• 23:55
  work
• 23:55
  with,
• 23:55
  a
• 23:55
  lot
• 23:55
  of
• 23:55
  these
• 23:56
  commercial
• 23:56
  firms
• 23:56
  are
• 23:56
  vertically
• 23:57
  integrated,
• 23:57
  and
• 23:57
  so
• 23:57
  they
• 23:58
  work
• 23:58
  on
• 23:58
  teams.
• 23:59
  And
• 23:59
  what
• 23:59
  that
• 23:59
  means
• 24:00
  is
• 24:00
  their
• 24:00
  net
• 24:01
  profit
• 24:01
  at
• 24:01
  the
• 24:01
  end
• 24:01
  of
• 24:01
  the
• 24:02
  deal
• 24:02
  is
• 24:02
  really
• 24:03
  low
• 24:03
  compared
• 24:04
  to
• 24:04
  somebody
• 24:04
  that
• 24:05
  is
• 24:05
  on
• 24:05
  a
• 24:06
  cap
• 24:06
  system
• 24:07
  with
• 24:07
  their
• 24:07
  commissions
• 24:07
  like
• 24:07
  I
• 24:08
  am,
• 24:08
  and
• 24:08
  more
• 24:09
  independent
• 24:09
  business
• 24:10
  owner.
• 24:10
  So
• 24:11
  that's
• 24:11
  something
• 24:11
  to
• 24:11
  keep
• 24:12
  in
• 24:12
  mind
• 24:12
  when
• 24:12
  you
• 24:12
  are
• 24:13
  looking
• 24:13
  at
• 24:14
  what
• 24:14
  broker
• 24:15
  you
• 24:15
  should
• 24:15
  be
• 24:15
  using.
• 24:16
  Like
• 24:16
  a
• 24:17
  broker
• 24:17
  that's
• 24:17
  running
• 24:17
  an
• 24:18
  independent
• 24:18
  business
• 24:19
  instead
• 24:19
  of
• 24:19
  being
• 24:19
  with
• 24:19
  one
• 24:20
  of
• 24:20
  the
• 24:20
  bigger
• 24:20
  shops,
• 24:21
  is
• 24:21
  going
• 24:21
  to
• 24:21
  have
• 24:22
  more
• 24:22
  ability
• 24:23
  to
• 24:23
  get
• 24:23
  creative
• 24:23
  for
• 24:24
  you.
• 24:24
  And
• 24:24
  so
• 24:25
  that's
• 24:25
  just
• 24:25
  something
• 24:25
  to
• 24:25
  keep
• 24:26
  in
• 24:26
  mind.
• 24:26
  And
• 24:26
  getting
• 24:26
  creative
• 24:27
  is
• 24:27
  important
• 24:27
  in
• 24:28
  certain
• 24:28
  economic
• 24:29
  shifts.
• 24:29
  Right.
• 24:30
  So
• 24:30
  like,
• 24:30
  for
• 24:30
  instance,
• 24:31
  I
• 24:31
  found
• 24:31
  a
• 24:31
  commercial
• 24:32
  lender
• 24:32
  who
• 24:33
  would
• 24:33
  allow
• 24:34
  my
• 24:35
  sellers
• 24:35
  to
• 24:35
  get
• 24:35
  in
• 24:36
  or
• 24:36
  allow
• 24:36
  my
• 24:36
  buyers
• 24:37
  to
• 24:37
  get
• 24:37
  in.
• 24:37
  The
• 24:38
  seller
• 24:38
  would
• 24:38
  finance
• 24:39
  the
• 24:39
  down
• 24:39
  payment
• 24:39
  for
• 24:40
  the
• 24:40
  buyer.
• 24:40
  It
• 24:40
  would
• 24:41
  Be
• 24:41
  a
• 24:41
  second
• 24:41
  note
• 24:41
  on
• 24:42
  the
• 24:42
  property
• 24:42
  and
• 24:43
  then
• 24:43
  his
• 24:43
  investor
• 24:44
  group
• 24:44
  comes
• 24:44
  in
• 24:44
  and
• 24:45
  buys
• 24:45
  up
• 24:45
  the
• 24:45
  seller
• 24:45
  financing
• 24:46
  note
• 24:46
  afterwards
• 24:47
  so
• 24:47
  the
• 24:47
  seller
• 24:47
  can
• 24:47
  get
• 24:47
  out
• 24:48
  of
• 24:48
  the
• 24:48
  deal
• 24:48
  completely.
• 24:49
  There's
• 24:49
  a
• 24:49
  lot
• 24:49
  of
• 24:49
  people
• 24:50
  that
• 24:50
  are
• 24:50
  in
• 24:50
  the
• 24:50
  market
• 24:51
  of
• 24:51
  hard
• 24:51
  money
• 24:52
  lending.
• 24:52
  That's
• 24:52
  a
• 24:53
  very,
• 24:53
  very
• 24:53
  popular
• 24:54
  investment
• 24:55
  strategy
• 24:56
  because
• 24:56
  you
• 24:56
  don't
• 24:56
  have
• 24:56
  to
• 24:56
  own
• 24:56
  the
• 24:57
  real
• 24:57
  estate,
• 24:57
  you
• 24:57
  can
• 24:57
  just
• 24:57
  own
• 24:57
  the
• 24:58
  note
• 24:58
  that
• 24:58
  collateralizes
• 24:59
  it.
• 25:00
  So.
• 25:00
  But
• 25:00
  the
• 25:00
  ability
• 25:00
  to
• 25:01
  get
• 25:01
  creative
• 25:01
  with
• 25:01
  funding
• 25:02
  it
• 25:02
  also,
• 25:03
  like
• 25:03
  the
• 25:03
  relationships
• 25:03
  you
• 25:04
  have
• 25:04
  within
• 25:04
  your
• 25:04
  work
• 25:04
  network,
• 25:05
  matter
• 25:05
  a
• 25:05
  lot
• 25:05
  for
• 25:06
  that.
• 25:06
  And
• 25:07
  it
• 25:07
  is
• 25:07
  a
• 25:07
  competitive
• 25:08
  industry.
• 25:08
  My
• 25:08
  lenders,
• 25:09
  they
• 25:09
  all
• 25:09
  know
• 25:10
  that
• 25:10
  they
• 25:10
  compete
• 25:10
  for
• 25:11
  my
• 25:11
  investors,
• 25:12
  businesses.
• 25:12
  Right.
• 25:13
  So
• 25:13
  keep
• 25:13
  in
• 25:13
  mind,
• 25:14
  you
• 25:14
  know,
• 25:14
  on
• 25:14
  the,
• 25:15
  on
• 25:15
  the
• 25:15
  conventional
• 25:16
  financing
• 25:17
  side,
• 25:17
  a
• 25:17
  lot
• 25:17
  of
• 25:17
  times
• 25:18
  you
• 25:18
  got
• 25:18
  to
• 25:18
  have
• 25:18
  a
• 25:18
  net
• 25:18
  worth
• 25:19
  that's
• 25:19
  going
• 25:19
  to
• 25:19
  be
• 25:20
  equivalent
• 25:20
  to
• 25:20
  or
• 25:20
  greater
• 25:20
  than
• 25:21
  whatever
• 25:21
  amount
• 25:21
  you're
• 25:21
  borrowing.
• 25:22
  You
• 25:22
  got
• 25:22
  to
• 25:22
  have
• 25:23
  liquidity
• 25:23
  and
• 25:24
  you
• 25:24
  got
• 25:24
  to
• 25:24
  have
• 25:24
  experience.
• 25:25
  So
• 25:25
  those
• 25:25
  are
• 25:25
  the
• 25:25
  three
• 25:26
  things
• 25:26
  that
• 25:26
  conventional
• 25:27
  lenders
• 25:27
  are
• 25:27
  looking
• 25:27
  for.
• 25:28
  If
• 25:28
  you're
• 25:28
  lacking
• 25:28
  any
• 25:29
  one
• 25:29
  of
• 25:29
  those
• 25:29
  things,
• 25:29
  you
• 25:29
  need
• 25:30
  to
• 25:30
  go
• 25:30
  out
• 25:30
  and
• 25:30
  find
• 25:30
  a
• 25:30
  partner
• 25:31
  that
• 25:31
  can
• 25:31
  help
• 25:31
  you
• 25:31
  fill
• 25:31
  the
• 25:32
  gaps.
• 25:32
  Or
• 25:32
  you
• 25:33
  have
• 25:33
  to
• 25:33
  be
• 25:33
  willing
• 25:33
  to
• 25:33
  get
• 25:33
  creative
• 25:34
  and
• 25:35
  maybe
• 25:35
  not
• 25:35
  go
• 25:35
  the
• 25:35
  conventional
• 25:36
  route.
• 25:36
  And
• 25:36
  I
• 25:36
  will
• 25:37
  say,
• 25:37
  when
• 25:37
  you
• 25:37
  need
• 25:37
  the
• 25:38
  route
• 25:38
  of
• 25:38
  finding
• 25:38
  a
• 25:39
  partner,
• 25:39
  one
• 25:39
  of
• 25:39
  the
• 25:40
  most
• 25:40
  important
• 25:40
  things.
• 25:41
  Well,
• 25:41
  first
• 25:42
  is
• 25:42
  their
• 25:42
  core
• 25:42
  value
• 25:43
  system,
• 25:43
  their
• 25:43
  belief
• 25:44
  system
• 25:44
  and
• 25:44
  their
• 25:44
  core
• 25:45
  values.
• 25:45
  Do
• 25:45
  they
• 25:45
  have
• 25:45
  integrity?
• 25:46
  And
• 25:47
  number
• 25:47
  two
• 25:47
  is
• 25:47
  do
• 25:48
  they
• 25:48
  have
• 25:48
  liquid
• 25:49
  cash?
• 25:49
  And
• 25:50
  I
• 25:50
  think
• 25:50
  that
• 25:50
  there's
• 25:51
  a
• 25:51
  lot
• 25:51
  of
• 25:52
  partners
• 25:52
  out
• 25:52
  here
• 25:52
  who
• 25:53
  are
• 25:53
  phenomenal
• 25:54
  partners
• 25:54
  on
• 25:54
  paper,
• 25:55
  yet
• 25:56
  all
• 25:56
  of
• 25:56
  their
• 25:56
  cash
• 25:57
  capital,
• 25:57
  cash
• 25:57
  is
• 25:57
  deployed
• 25:58
  and
• 25:58
  they
• 25:58
  don't
• 25:59
  actually
• 25:59
  have
• 25:59
  a
• 25:59
  lot
• 25:59
  liquid.
• 26:00
  And
• 26:00
  so
• 26:00
  if
• 26:00
  you
• 26:01
  get
• 26:01
  into
• 26:01
  a
• 26:01
  situation
• 26:01
  with
• 26:02
  that
• 26:02
  partner
• 26:02
  where
• 26:03
  liquid
• 26:03
  capital
• 26:04
  is
• 26:04
  needed,
• 26:04
  you
• 26:05
  could
• 26:05
  have
• 26:05
  just
• 26:05
  taken
• 26:05
  on
• 26:06
  somebody
• 26:06
  that
• 26:06
  you
• 26:06
  think
• 26:07
  is
• 26:07
  going
• 26:07
  to
• 26:07
  look
• 26:07
  great.
• 26:08
  On
• 26:08
  paper,
• 26:08
  of
• 26:09
  course
• 26:09
  they're
• 26:09
  going
• 26:09
  to
• 26:09
  be
• 26:09
  a
• 26:09
  great
• 26:10
  partner.
• 26:10
  But
• 26:10
  if
• 26:11
  you're
• 26:11
  bringing
• 26:11
  them
• 26:11
  on
• 26:12
  for
• 26:12
  them
• 26:12
  to
• 26:13
  have
• 26:13
  liquidity,
• 26:14
  that's
• 26:14
  something
• 26:14
  you
• 26:14
  definitely
• 26:15
  want
• 26:15
  to
• 26:15
  double
• 26:15
  check
• 26:16
  beforehand.
• 26:16
  So
• 26:17
  picking
• 26:17
  good
• 26:18
  partners
• 26:18
  is
• 26:18
  an
• 26:19
  art.
• 26:19
  It's
• 26:20
  something
• 26:20
  you
• 26:20
  get
• 26:20
  better
• 26:20
  at
• 26:20
  over
• 26:21
  time.
• 26:21
  I
• 26:21
  think
• 26:21
  it
• 26:22
  totally
• 26:22
  is.
• 26:23
  One
• 26:23
  thing
• 26:23
  people
• 26:24
  don't
• 26:24
  realize.
• 26:24
  They
• 26:24
  don't
• 26:24
  realize
• 26:25
  how
• 26:25
  important
• 26:25
  that
• 26:26
  liquidity
• 26:26
  is
• 26:27
  until
• 26:27
  they
• 26:27
  have
• 26:27
  a
• 26:28
  problem.
• 26:28
  So
• 26:29
  when
• 26:29
  you
• 26:29
  have
• 26:29
  a
• 26:29
  problem
• 26:30
  in
• 26:30
  this
• 26:30
  business,
• 26:31
  it's
• 26:31
  usually
• 26:32
  cash
• 26:32
  that
• 26:32
  solves
• 26:33
  those
• 26:33
  problems.
• 26:33
  So
• 26:33
  there's
• 26:34
  a
• 26:34
  reason
• 26:34
  Eric
• 26:34
  is
• 26:34
  saying
• 26:35
  that
• 26:35
  very
• 26:35
  important.
• 26:36
  Yeah,
• 26:36
  absolutely.
• 26:37
  Because
• 26:38
  you'll
• 26:38
  have
• 26:38
  a
• 26:38
  lot
• 26:38
  of
• 26:38
  different
• 26:39
  options
• 26:39
  at
• 26:39
  these
• 26:39
  networking
• 26:40
  events
• 26:40
  and
• 26:40
  investor
• 26:41
  meetups.
• 26:41
  And
• 26:41
  it's
• 26:41
  important
• 26:42
  to
• 26:42
  find
• 26:42
  people
• 26:42
  that,
• 26:43
  that
• 26:43
  not
• 26:43
  just
• 26:43
  know
• 26:44
  what
• 26:44
  they're
• 26:44
  doing,
• 26:45
  but
• 26:45
  also,
• 26:46
  you
• 26:46
  know,
• 26:46
  have,
• 26:47
  have
• 26:47
  the
• 26:47
  something
• 26:48
  to
• 26:48
  back
• 26:48
  it
• 26:48
  up
• 26:49
  in
• 26:49
  case
• 26:49
  anything
• 26:49
  goes
• 26:49
  wrong.
• 26:50
  So
• 26:51
  a
• 26:51
  lot
• 26:51
  of
• 26:51
  good
• 26:51
  partners
• 26:52
  that
• 26:52
  you
• 26:52
  can
• 26:52
  pick
• 26:52
  up
• 26:52
  for
• 26:53
  better
• 26:53
  funding
• 26:53
  options,
• 26:54
  and
• 26:55
  like
• 26:55
  I
• 26:55
  said,
• 26:55
  it's
• 26:55
  a
• 26:55
  competitive
• 26:56
  industry,
• 26:56
  make
• 26:56
  them
• 26:57
  compete
• 26:57
  with
• 26:58
  commercial
• 26:58
  lending
• 26:58
  in
• 26:58
  particular.
• 26:59
  I
• 26:59
  tell
• 26:59
  people
• 26:59
  it's
• 27:00
  kind
• 27:00
  of
• 27:00
  funny,
• 27:00
  but
• 27:00
  it's
• 27:01
  really
• 27:01
  honestly
• 27:01
  based
• 27:02
  on
• 27:02
  how
• 27:02
  well
• 27:02
  you
• 27:02
  can
• 27:02
  button
• 27:03
  yourself
• 27:03
  up
• 27:03
  and
• 27:03
  how
• 27:04
  presentable
• 27:04
  you
• 27:04
  can
• 27:05
  be.
• 27:05
  And
• 27:05
  if
• 27:06
  you
• 27:06
  do
• 27:06
  your
• 27:06
  underwriting
• 27:07
  at
• 27:07
  a
• 27:07
  very
• 27:07
  high
• 27:08
  level
• 27:08
  and
• 27:08
  you
• 27:08
  are
• 27:08
  in
• 27:09
  depth
• 27:09
  on
• 27:09
  your
• 27:09
  underwriting
• 27:10
  when
• 27:10
  you
• 27:11
  go
• 27:11
  to
• 27:11
  submit
• 27:11
  that
• 27:11
  to
• 27:12
  a
• 27:12
  commercial
• 27:12
  lender,
• 27:13
  that
• 27:13
  right
• 27:13
  there
• 27:14
  could
• 27:14
  be
• 27:14
  the
• 27:14
  difference
• 27:14
  of
• 27:14
  them
• 27:15
  having
• 27:15
  a
• 27:15
  variety
• 27:15
  of
• 27:16
  different
• 27:16
  questions
• 27:16
  that
• 27:16
  now
• 27:17
  need
• 27:17
  to
• 27:17
  be
• 27:17
  answered
• 27:17
  or
• 27:18
  you
• 27:18
  look
• 27:18
  good
• 27:18
  to
• 27:18
  go.
• 27:18
  And
• 27:19
  let's
• 27:19
  move
• 27:19
  to
• 27:19
  the
• 27:19
  next
• 27:19
  step
• 27:20
  so
• 27:20
  how
• 27:21
  presentable
• 27:21
  you
• 27:21
  are
• 27:22
  with
• 27:22
  the
• 27:22
  package
• 27:22
  that
• 27:23
  you're
• 27:23
  giving
• 27:23
  to
• 27:23
  the
• 27:23
  lending
• 27:24
  partners.
• 27:24
  On
• 27:24
  my
• 27:25
  company,
• 27:25
  I
• 27:25
  did
• 27:26
  a
• 27:26
  score
• 27:26
  business
• 27:27
  plan.
• 27:27
  The
• 27:27
  score
• 27:28
  business
• 27:28
  plan
• 27:28
  is
• 27:29
  like
• 27:29
  30,
• 27:29
  40
• 27:30
  pages.
• 27:30
  It
• 27:30
  is
• 27:30
  in
• 27:31
  depth.
• 27:31
  However,
• 27:32
  by
• 27:32
  the
• 27:32
  time
• 27:32
  I
• 27:32
  went
• 27:33
  to
• 27:33
  do
• 27:33
  the
• 27:33
  SBA
• 27:34
  business
• 27:34
  plan
• 27:34
  to
• 27:34
  submit
• 27:35
  for
• 27:35
  SBA
• 27:35
  funding,
• 27:36
  it
• 27:36
  was
• 27:36
  simple
• 27:37
  because
• 27:37
  I
• 27:37
  had
• 27:37
  already
• 27:38
  done
• 27:38
  a
• 27:38
  score
• 27:38
  business
• 27:39
  plan,
• 27:39
  30
• 27:39
  to
• 27:39
  40
• 27:40
  pages
• 27:40
  of
• 27:40
  everything
• 27:40
  that
• 27:41
  the
• 27:41
  company
• 27:41
  was
• 27:41
  going
• 27:41
  to
• 27:41
  do
• 27:41
  for
• 27:42
  the
• 27:42
  next
• 27:42
  10
• 27:42
  years.
• 27:43
  So
• 27:43
  being
• 27:44
  really
• 27:44
  well
• 27:44
  buttoned
• 27:44
  up
• 27:44
  and
• 27:45
  presentable
• 27:45
  for
• 27:45
  commercial
• 27:46
  lending
• 27:46
  makes
• 27:46
  it
• 27:47
  so
• 27:47
  much
• 27:47
  easier
• 27:48
  because
• 27:48
  it
• 27:48
  is
• 27:49
  much
• 27:49
  more
• 27:49
  relationship
• 27:50
  based.