Latest / MPI Multifamily Commercial Real Estate Investing / Picking the Multifamily Strategy That Will Help You Achieve Financial Freedom

Transcript

Picking the Multifamily Strategy That Will Help You Achieve Financial Freedom · MPI Multifamily Commercial Real Estate Investing

• 1:13
  Foreign.
• 1:16
  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
  this
• 1:24
  is
• 1:24
  Charles
• 1:24
  Seaman
• 1:25
  here
• 1:25
  with
• 1:25
  Erica
• 1:25
  McNew
• 1:26
  and
• 1:26
  we're
• 1:26
  hosting
• 1:27
  the
• 1:27
  Master
• 1:28
  Passive
• 1:28
  Income
• 1:28
  Multifamily
• 1:29
  Podcast.
• 1:30
  And
• 1:30
  today
• 1:31
  we're
• 1:31
  going
• 1:31
  to
• 1:31
  be
• 1:31
  talking
• 1:31
  about
• 1:32
  a
• 1:32
  very
• 1:32
  exciting
• 1:33
  topic,
• 1:33
  going
• 1:33
  to
• 1:33
  be
• 1:34
  talking
• 1:34
  about
• 1:34
  different
• 1:34
  strategies
• 1:35
  you
• 1:35
  can
• 1:35
  use
• 1:36
  in
• 1:36
  multifamily.
• 1:40
  Welcome
• 1:41
  to
• 1:41
  the
• 1:41
  Master
• 1:42
  Passive
• 1:42
  Income
• 1:43
  Multifamily
• 1:44
  Podcast.
• 1:45
  We
• 1:45
  guide
• 1:45
  you
• 1:45
  to
• 1:45
  invest
• 1:46
  in
• 1:46
  commercial
• 1:46
  real
• 1:47
  estate
• 1:47
  with
• 1:47
  a
• 1:47
  special
• 1:48
  focus
• 1:48
  on
• 1:49
  raising
• 1:49
  money
• 1:50
  from
• 1:50
  others
• 1:50
  to
• 1:51
  buy
• 1:51
  bigger
• 1:51
  and
• 1:52
  better
• 1:52
  deals.
• 1:53
  And
• 1:53
  now,
• 1:53
  here
• 1:53
  are
• 1:53
  your
• 1:54
  hosts,
• 1:54
  Charles
• 1:54
  seaman
• 1:55
  and
• 1:55
  Erica
• 1:56
  McNew.
• 2:00
  Erica,
• 2:01
  do
• 2:01
  you
• 2:01
  want
• 2:01
  to
• 2:01
  share
• 2:02
  the
• 2:02
  first
• 2:02
  strategy
• 2:03
  with
• 2:03
  the
• 2:03
  listeners?
• 2:04
  Yeah,
• 2:05
  absolutely.
• 2:05
  And
• 2:05
  thank
• 2:06
  you,
• 2:06
  Charles.
• 2:06
  I
• 2:06
  think
• 2:07
  one
• 2:07
  of
• 2:07
  the
• 2:07
  first
• 2:07
  strategies,
• 2:08
  probably
• 2:08
  the
• 2:08
  most
• 2:09
  popular
• 2:09
  one
• 2:09
  I
• 2:09
  would
• 2:09
  say,
• 2:10
  is
• 2:10
  the
• 2:10
  buy
• 2:10
  and
• 2:10
  hold
• 2:10
  for
• 2:11
  cash
• 2:11
  flow,
• 2:11
  the
• 2:12
  multifamily.
• 2:12
  Especially
• 2:13
  when
• 2:13
  you
• 2:13
  get
• 2:13
  into
• 2:14
  economies
• 2:14
  of
• 2:15
  scale,
• 2:15
  that
• 2:16
  cash
• 2:16
  flow,
• 2:16
  you
• 2:17
  know,
• 2:17
  gets
• 2:17
  juicier
• 2:18
  and
• 2:18
  juicier.
• 2:18
  So
• 2:19
  I
• 2:19
  think
• 2:19
  that
• 2:19
  the
• 2:19
  strategy
• 2:20
  of
• 2:20
  purchasing
• 2:20
  for
• 2:20
  a
• 2:20
  long
• 2:21
  term
• 2:21
  hold
• 2:21
  can
• 2:21
  be
• 2:22
  great.
• 2:22
  One
• 2:23
  of
• 2:23
  the
• 2:23
  other
• 2:23
  kind
• 2:23
  of
• 2:24
  things
• 2:24
  that
• 2:24
  you
• 2:24
  can
• 2:24
  stack
• 2:25
  onto
• 2:25
  that
• 2:25
  long
• 2:26
  term
• 2:26
  hold
• 2:26
  would
• 2:26
  be
• 2:26
  purchasing
• 2:27
  an
• 2:27
  opportunity
• 2:28
  zones.
• 2:28
  Those
• 2:28
  are,
• 2:28
  you
• 2:29
  know,
• 2:29
  I
• 2:29
  think
• 2:29
  they're
• 2:29
  only
• 2:29
  lasting
• 2:30
  till
• 2:30
  about
• 2:30
  2026,
• 2:31
  last
• 2:31
  time
• 2:31
  I
• 2:31
  checked.
• 2:32
  And
• 2:32
  those
• 2:32
  allow
• 2:32
  for
• 2:33
  a
• 2:33
  really
• 2:33
  great
• 2:33
  opportunity
• 2:34
  for
• 2:34
  you
• 2:35
  to
• 2:35
  mitigate
• 2:35
  taxes
• 2:36
  with
• 2:36
  long
• 2:36
  term
• 2:36
  holds,
• 2:37
  especially
• 2:37
  when
• 2:37
  you're
• 2:37
  doing
• 2:37
  that
• 2:38
  long
• 2:38
  term
• 2:38
  hold
• 2:38
  for
• 2:38
  cash
• 2:38
  flow.
• 2:39
  So
• 2:39
  I
• 2:39
  think
• 2:40
  that
• 2:40
  is
• 2:40
  one
• 2:40
  of
• 2:40
  the
• 2:41
  strategies.
• 2:41
  Have
• 2:42
  you
• 2:42
  ever
• 2:42
  done
• 2:42
  that
• 2:42
  one,
• 2:42
  Charles?
• 2:43
  What
• 2:43
  do
• 2:43
  you
• 2:43
  think
• 2:43
  about
• 2:43
  that
• 2:44
  one?
• 2:44
  You
• 2:44
  know,
• 2:44
  so
• 2:44
  it's
• 2:44
  a
• 2:45
  favorite
• 2:45
  strategy.
• 2:45
  I
• 2:46
  think
• 2:46
  nowadays
• 2:47
  people
• 2:47
  look
• 2:47
  at
• 2:47
  that
• 2:47
  and
• 2:47
  kind
• 2:48
  of
• 2:48
  say,
• 2:48
  oh,
• 2:48
  that's
• 2:48
  boring,
• 2:49
  but
• 2:49
  I'm
• 2:49
  going
• 2:49
  to
• 2:49
  make.
• 2:51
  Real
• 2:51
  estate's
• 2:51
  supposed
• 2:52
  to
• 2:52
  be
• 2:52
  boring.
• 2:52
  You
• 2:53
  don't
• 2:53
  want
• 2:53
  it
• 2:53
  to
• 2:53
  have
• 2:53
  too
• 2:53
  much
• 2:54
  excitement
• 2:54
  because
• 2:54
  the
• 2:54
  more
• 2:54
  exciting
• 2:55
  it
• 2:55
  gets,
• 2:55
  the
• 2:55
  more
• 2:55
  money
• 2:56
  you
• 2:56
  risk.
• 2:56
  And
• 2:57
  it's
• 2:57
  a
• 2:57
  very
• 2:57
  smart
• 2:58
  strategy
• 2:58
  if
• 2:58
  you
• 2:58
  have
• 2:59
  the
• 2:59
  capital
• 2:59
  to
• 3:00
  go
• 3:00
  in
• 3:00
  there
• 3:00
  and
• 3:00
  purchase
• 3:00
  multifamily
• 3:01
  and
• 3:01
  hold
• 3:01
  it
• 3:01
  for
• 3:01
  the
• 3:01
  long
• 3:02
  term.
• 3:02
  You
• 3:02
  know,
• 3:02
  I
• 3:02
  always
• 3:03
  say
• 3:03
  you'll
• 3:03
  never
• 3:03
  go
• 3:04
  broke
• 3:04
  by
• 3:04
  holding
• 3:04
  for
• 3:04
  the
• 3:05
  long
• 3:05
  term.
• 3:05
  Absolutely.
• 3:06
  It
• 3:06
  is,
• 3:07
  I
• 3:07
  guess
• 3:07
  the
• 3:07
  number
• 3:08
  one
• 3:08
  way
• 3:08
  to
• 3:08
  build
• 3:08
  wealth
• 3:09
  in
• 3:09
  real
• 3:09
  estate
• 3:09
  is
• 3:09
  to
• 3:10
  do
• 3:10
  so
• 3:10
  slow
• 3:10
  and
• 3:11
  steady.
• 3:11
  And
• 3:11
  when
• 3:12
  you're
• 3:12
  purchasing
• 3:12
  multifamily
• 3:13
  for
• 3:13
  long
• 3:14
  term
• 3:14
  for
• 3:14
  the
• 3:14
  cash
• 3:15
  flow,
• 3:15
  it's
• 3:16
  definitely
• 3:16
  that
• 3:16
  slow
• 3:17
  and
• 3:17
  steady
• 3:17
  wealth
• 3:17
  building.
• 3:18
  And
• 3:18
  you're
• 3:18
  right,
• 3:19
  it's,
• 3:19
  it
• 3:19
  helps,
• 3:20
  you
• 3:20
  know,
• 3:20
  mitigate
• 3:20
  a
• 3:20
  lot
• 3:21
  of
• 3:21
  risk
• 3:21
  because
• 3:21
  even
• 3:21
  the
• 3:22
  financing
• 3:22
  you're
• 3:22
  getting
• 3:22
  with
• 3:23
  that,
• 3:23
  with
• 3:23
  long
• 3:23
  term
• 3:24
  loans
• 3:24
  can
• 3:24
  help
• 3:25
  reduce
• 3:25
  that
• 3:25
  monthly
• 3:25
  debt
• 3:26
  service.
• 3:26
  And
• 3:27
  so
• 3:27
  I
• 3:27
  agree
• 3:27
  it's
• 3:28
  one
• 3:28
  of,
• 3:28
  I
• 3:28
  think
• 3:28
  the
• 3:29
  less
• 3:29
  risky
• 3:30
  strategies
• 3:31
  and
• 3:31
  one
• 3:32
  of
• 3:32
  the
• 3:32
  Best,
• 3:32
  I
• 3:32
  think
• 3:32
  to
• 3:32
  build
• 3:32
  long
• 3:33
  term
• 3:33
  wealth.
• 3:33
  Yeah.
• 3:34
  And
• 3:34
  you
• 3:34
  know,
• 3:34
  I
• 3:34
  think
• 3:34
  something
• 3:35
  else
• 3:35
  that's
• 3:35
  important.
• 3:36
  You
• 3:36
  know,
• 3:36
  one
• 3:36
  thing
• 3:36
  that
• 3:36
  people
• 3:37
  often
• 3:37
  talk
• 3:37
  about
• 3:37
  is
• 3:38
  market
• 3:38
  timing.
• 3:38
  And
• 3:38
  they
• 3:38
  say,
• 3:39
  is
• 3:39
  it
• 3:39
  important
• 3:40
  or
• 3:40
  isn't
• 3:40
  it
• 3:40
  important?
• 3:41
  The
• 3:41
  answer
• 3:41
  is,
• 3:41
  I'm
• 3:42
  going
• 3:42
  to
• 3:42
  tell
• 3:42
  you
• 3:42
  it
• 3:42
  depends
• 3:42
  on
• 3:42
  your
• 3:43
  strategy.
• 3:43
  So
• 3:44
  if
• 3:44
  you're
• 3:44
  a
• 3:44
  long
• 3:44
  term
• 3:45
  owner
• 3:46
  and
• 3:46
  your
• 3:46
  goal
• 3:46
  is
• 3:46
  to
• 3:47
  hold
• 3:47
  that
• 3:47
  property
• 3:47
  for
• 3:47
  30,
• 3:48
  40
• 3:48
  years
• 3:48
  or
• 3:48
  maybe
• 3:49
  pass
• 3:49
  it
• 3:49
  on
• 3:49
  to
• 3:49
  the
• 3:49
  next
• 3:49
  generation,
• 3:50
  the
• 3:50
  market
• 3:51
  timing
• 3:51
  is
• 3:51
  probably
• 3:51
  not
• 3:51
  as
• 3:52
  important
• 3:52
  because
• 3:52
  you
• 3:52
  have
• 3:52
  a
• 3:53
  lot
• 3:53
  of
• 3:53
  time
• 3:54
  to,
• 3:54
  for
• 3:55
  lack
• 3:55
  of
• 3:55
  a
• 3:55
  better
• 3:55
  term,
• 3:56
  make
• 3:56
  up
• 3:56
  for
• 3:56
  any
• 3:56
  mistakes
• 3:57
  that
• 3:57
  happen
• 3:57
  by
• 3:57
  buying
• 3:58
  too
• 3:58
  high.
• 3:58
  As
• 3:58
  long
• 3:59
  as
• 3:59
  you,
• 3:59
  well,
• 3:59
  capitalize
• 4:00
  and
• 4:00
  you
• 4:00
  can
• 4:00
  maintain
• 4:00
  the
• 4:00
  property,
• 4:01
  you
• 4:01
  can
• 4:01
  hold
• 4:01
  it.
• 4:02
  Generally,
• 4:02
  if
• 4:02
  you
• 4:02
  hold
• 4:03
  any
• 4:03
  property
• 4:04
  for
• 4:04
  30
• 4:04
  years
• 4:05
  or
• 4:05
  regardless
• 4:05
  of
• 4:06
  what
• 4:06
  type
• 4:06
  of
• 4:06
  property
• 4:06
  or
• 4:07
  what
• 4:07
  area
• 4:07
  it's
• 4:07
  in,
• 4:07
  it's
• 4:08
  probably
• 4:08
  going
• 4:08
  to
• 4:08
  be
• 4:08
  worth
• 4:08
  more
• 4:09
  than
• 4:09
  it
• 4:09
  was.
• 4:09
  Yep,
• 4:10
  absolutely.
• 4:11
  I
• 4:11
  think
• 4:11
  on
• 4:11
  average
• 4:12
  American
• 4:12
  real
• 4:12
  estate
• 4:13
  market
• 4:13
  appreciates
• 4:14
  about
• 4:14
  4%
• 4:15
  year
• 4:15
  over
• 4:15
  year.
• 4:16
  And
• 4:16
  that's
• 4:17
  on
• 4:17
  average.
• 4:17
  Obviously
• 4:18
  with
• 4:18
  2021,
• 4:19
  2022,
• 4:19
  we
• 4:19
  saw
• 4:20
  something
• 4:20
  much
• 4:20
  different.
• 4:21
  However,
• 4:21
  I
• 4:21
  think
• 4:22
  that
• 4:22
  that's
• 4:22
  another
• 4:22
  reason
• 4:23
  that
• 4:23
  like
• 4:23
  that
• 4:23
  long
• 4:23
  term
• 4:24
  strategy,
• 4:24
  being
• 4:24
  satisfied
• 4:25
  with
• 4:25
  the
• 4:25
  cash
• 4:25
  flow
• 4:26
  and
• 4:26
  kind
• 4:26
  of
• 4:26
  stacking
• 4:26
  properties
• 4:27
  that
• 4:27
  cash
• 4:27
  flow
• 4:28
  well,
• 4:28
  that
• 4:28
  are
• 4:28
  less
• 4:28
  risky
• 4:29
  is
• 4:29
  a
• 4:30
  really
• 4:30
  smart
• 4:31
  way
• 4:31
  of
• 4:31
  going
• 4:31
  about
• 4:31
  it.
• 4:31
  You're
• 4:32
  going
• 4:32
  to
• 4:32
  have
• 4:32
  that
• 4:33
  appreciation
• 4:33
  over
• 4:34
  time.
• 4:34
  Yep.
• 4:34
  So
• 4:35
  let's
• 4:35
  talk
• 4:35
  about
• 4:35
  another
• 4:36
  strategy,
• 4:36
  very
• 4:36
  popular
• 4:37
  one
• 4:37
  in
• 4:37
  the
• 4:37
  syndication
• 4:38
  space,
• 4:38
  but
• 4:38
  also
• 4:38
  with
• 4:39
  smaller
• 4:39
  property
• 4:40
  as
• 4:40
  well.
• 4:40
  And
• 4:41
  that's
• 4:41
  called
• 4:41
  Value
• 4:41
  it.
• 4:42
  So
• 4:42
  what
• 4:42
  is
• 4:43
  value
• 4:43
  it?
• 4:43
  So
• 4:43
  value
• 4:44
  it's
• 4:44
  taking
• 4:44
  a
• 4:44
  property
• 4:45
  and
• 4:45
  typically
• 4:46
  that
• 4:46
  property's
• 4:46
  underperforming
• 4:47
  in
• 4:47
  some
• 4:48
  way
• 4:48
  and
• 4:48
  it's
• 4:48
  figuring
• 4:49
  out
• 4:49
  how
• 4:49
  to
• 4:49
  improve
• 4:49
  it.
• 4:50
  So
• 4:50
  sometimes
• 4:50
  it
• 4:51
  could
• 4:51
  be
• 4:51
  operational,
• 4:51
  sometimes
• 4:52
  it
• 4:52
  could
• 4:52
  be
• 4:52
  through
• 4:52
  capital
• 4:53
  improvement,
• 4:53
  sometimes
• 4:54
  it
• 4:54
  could
• 4:54
  be
• 4:54
  a
• 4:54
  combination
• 4:54
  of
• 4:55
  both.
• 4:55
  What
• 4:55
  do
• 4:55
  you
• 4:55
  think
• 4:55
  of
• 4:55
  this
• 4:56
  strategy,
• 4:56
  Erica?
• 4:57
  Yeah,
• 4:57
  a
• 4:57
  lot
• 4:57
  of
• 4:58
  my
• 4:58
  current
• 4:59
  investors
• 4:59
  are
• 4:59
  actually
• 4:59
  doing
• 5:00
  this
• 5:00
  one.
• 5:00
  And
• 5:01
  I
• 5:01
  think
• 5:01
  that
• 5:01
  the
• 5:01
  key
• 5:01
  here
• 5:02
  is
• 5:02
  like,
• 5:02
  you
• 5:03
  really
• 5:03
  have
• 5:03
  to
• 5:03
  be
• 5:03
  careful
• 5:04
  in
• 5:04
  measuring
• 5:05
  the
• 5:05
  level
• 5:05
  of
• 5:05
  experience
• 5:06
  that
• 5:06
  you
• 5:07
  have
• 5:07
  in
• 5:07
  a
• 5:07
  particular
• 5:07
  category.
• 5:08
  And
• 5:09
  if
• 5:09
  you
• 5:09
  don't
• 5:09
  have
• 5:09
  experience
• 5:10
  doing
• 5:10
  like
• 5:11
  construction,
• 5:12
  if
• 5:12
  you
• 5:12
  don't
• 5:12
  have
• 5:12
  the
• 5:12
  right
• 5:12
  team
• 5:13
  to
• 5:13
  do
• 5:13
  construction,
• 5:14
  I
• 5:14
  would
• 5:14
  highly
• 5:14
  recommend
• 5:15
  on
• 5:15
  this
• 5:15
  value
• 5:15
  add
• 5:16
  strategy
• 5:16
  that
• 5:16
  you
• 5:16
  look
• 5:17
  more
• 5:17
  at
• 5:17
  doing
• 5:17
  the
• 5:17
  operational
• 5:18
  efficiency
• 5:19
  side
• 5:19
  and
• 5:19
  kind
• 5:20
  of
• 5:20
  mitigate
• 5:20
  the
• 5:20
  amount
• 5:20
  of
• 5:21
  construction
• 5:21
  you're
• 5:21
  doing,
• 5:21
  especially
• 5:22
  on
• 5:22
  your
• 5:22
  first
• 5:22
  go
• 5:22
  round.
• 5:23
  So
• 5:24
  those
• 5:24
  two
• 5:24
  different
• 5:24
  parts,
• 5:25
  the
• 5:25
  construction,
• 5:26
  value
• 5:26
  add
• 5:27
  and
• 5:27
  then
• 5:27
  the
• 5:27
  operational
• 5:28
  efficiencies,
• 5:29
  I
• 5:29
  think
• 5:29
  so
• 5:29
  many
• 5:29
  people
• 5:30
  underestimate
• 5:31
  what
• 5:31
  you
• 5:31
  can
• 5:31
  do
• 5:31
  value
• 5:32
  adding
• 5:32
  with
• 5:32
  operational
• 5:32
  efficiencies.
• 5:33
  So
• 5:34
  I
• 5:34
  know
• 5:34
  that
• 5:34
  you're
• 5:34
  a
• 5:34
  big
• 5:34
  fan
• 5:35
  of
• 5:35
  that.
• 5:35
  Too.
• 5:35
  Charles,
• 5:36
  you
• 5:36
  know
• 5:36
  what?
• 5:36
  I
• 5:36
  am,
• 5:37
  I
• 5:37
  think
• 5:37
  definitely
• 5:37
  a
• 5:37
  lot
• 5:37
  of
• 5:38
  benefit
• 5:38
  to
• 5:38
  it.
• 5:38
  I
• 5:38
  would
• 5:39
  actually
• 5:39
  say
• 5:39
  in
• 5:39
  general,
• 5:39
  I
• 5:40
  prefer
• 5:40
  the
• 5:40
  operational
• 5:41
  side.
• 5:41
  So,
• 5:41
  like,
• 5:41
  for
• 5:41
  me,
• 5:41
  if
• 5:42
  I'm
• 5:42
  going
• 5:42
  to
• 5:42
  go
• 5:42
  in
• 5:42
  there
• 5:42
  and
• 5:42
  do
• 5:42
  evaluate
• 5:44
  95
• 5:44
  times
• 5:45
  out
• 5:45
  of
• 5:45
  100,
• 5:45
  I
• 5:45
  prefer
• 5:46
  a
• 5:46
  strong
• 5:46
  operational
• 5:47
  play
• 5:47
  versus
• 5:47
  a
• 5:47
  heavy
• 5:48
  capex
• 5:48
  lift.
• 5:48
  Now,
• 5:49
  the
• 5:49
  challenge
• 5:49
  with
• 5:49
  that
• 5:49
  is
• 5:50
  sometimes
• 5:50
  it's
• 5:50
  harder
• 5:50
  to
• 5:51
  conceptualize
• 5:51
  because,
• 5:51
  like,
• 5:52
  for
• 5:52
  most
• 5:52
  people,
• 5:52
  it's
• 5:53
  easy
• 5:53
  for
• 5:53
  them
• 5:53
  to
• 5:54
  think,
• 5:54
  okay,
• 5:54
  I'm
• 5:54
  putting
• 5:55
  $5,000
• 5:55
  into
• 5:55
  the
• 5:56
  unit.
• 5:56
  I'm
• 5:56
  going
• 5:56
  to
• 5:56
  increase
• 5:56
  rents,
• 5:57
  100
• 5:57
  bucks
• 5:57
  versus
• 5:58
  I'm
• 5:58
  going
• 5:58
  to
• 5:58
  go
• 5:58
  in
• 5:59
  here
• 5:59
  and
• 5:59
  do
• 5:59
  this
• 5:59
  differently
• 6:00
  than
• 6:00
  the
• 6:00
  prior
• 6:00
  ownership
• 6:01
  of
• 6:01
  the
• 6:01
  prior
• 6:01
  management
• 6:01
  and
• 6:02
  push
• 6:02
  rents.
• 6:02
  And
• 6:03
  so
• 6:03
  from
• 6:03
  like
• 6:04
  a
• 6:04
  sales
• 6:04
  tactic
• 6:05
  of
• 6:05
  like
• 6:05
  putting
• 6:05
  in
• 6:05
  front
• 6:05
  of
• 6:06
  investors
• 6:06
  and
• 6:06
  getting
• 6:07
  equity
• 6:07
  interested,
• 6:07
  the
• 6:08
  capital
• 6:08
  improvement
• 6:08
  play
• 6:09
  is
• 6:09
  definitely
• 6:09
  the
• 6:09
  easier
• 6:09
  one.
• 6:10
  But
• 6:10
  I'm
• 6:10
  going
• 6:10
  to
• 6:10
  make
• 6:10
  the
• 6:11
  counterargument
• 6:11
  and
• 6:11
  say
• 6:12
  that
• 6:12
  operational
• 6:13
  plays
• 6:13
  actually
• 6:13
  reduce
• 6:13
  the
• 6:14
  risk
• 6:14
  because
• 6:14
  by
• 6:15
  putting
• 6:15
  more
• 6:15
  capital
• 6:16
  improvement
• 6:17
  dollars
• 6:17
  to
• 6:17
  work,
• 6:18
  yes,
• 6:18
  there
• 6:18
  is
• 6:18
  a
• 6:18
  benefit
• 6:19
  to
• 6:19
  doing
• 6:19
  that,
• 6:19
  but
• 6:20
  sometimes
• 6:20
  you're
• 6:20
  wrong
• 6:20
  on
• 6:20
  the
• 6:21
  rent
• 6:21
  targets.
• 6:21
  And
• 6:22
  you
• 6:22
  know,
• 6:22
  it's
• 6:23
  better
• 6:23
  to
• 6:23
  be
• 6:23
  wrong
• 6:23
  on
• 6:24
  the
• 6:24
  targets
• 6:24
  when
• 6:25
  you
• 6:25
  have
• 6:25
  less
• 6:25
  capital
• 6:26
  estate
• 6:26
  than
• 6:26
  when
• 6:26
  you
• 6:26
  have
• 6:26
  more
• 6:27
  because
• 6:27
  it
• 6:27
  takes
• 6:27
  the
• 6:27
  risk
• 6:28
  and
• 6:28
  it
• 6:28
  reduces
• 6:29
  it
• 6:29
  a
• 6:29
  bit.
• 6:29
  I
• 6:29
  think
• 6:30
  that's
• 6:30
  something
• 6:30
  that's
• 6:30
  really
• 6:31
  good
• 6:31
  to
• 6:31
  point
• 6:31
  out,
• 6:31
  is
• 6:32
  that
• 6:32
  if
• 6:32
  you
• 6:32
  are
• 6:32
  doing
• 6:32
  that
• 6:33
  construction
• 6:34
  value
• 6:34
  add
• 6:34
  that
• 6:35
  you
• 6:35
  definitely
• 6:35
  want
• 6:35
  to
• 6:35
  be
• 6:36
  very
• 6:36
  strategic
• 6:37
  on
• 6:37
  the
• 6:37
  amount
• 6:38
  you're
• 6:38
  putting
• 6:38
  into
• 6:38
  that
• 6:38
  construction
• 6:39
  value
• 6:39
  add
• 6:39
  and
• 6:39
  making
• 6:40
  sure
• 6:40
  that
• 6:40
  it's
• 6:40
  going
• 6:40
  to
• 6:40
  yield
• 6:41
  the
• 6:41
  rents
• 6:41
  that
• 6:41
  you
• 6:42
  expect
• 6:42
  for
• 6:42
  it
• 6:42
  to
• 6:43
  increase.
• 6:43
  I
• 6:43
  guess
• 6:44
  the
• 6:44
  point
• 6:44
  of
• 6:44
  both
• 6:44
  the
• 6:45
  value
• 6:45
  add
• 6:45
  strategies,
• 6:46
  operational
• 6:46
  and
• 6:46
  construction
• 6:47
  is
• 6:47
  to
• 6:47
  do
• 6:47
  those
• 6:47
  rent
• 6:47
  bumps
• 6:48
  and
• 6:48
  to
• 6:48
  utilize,
• 6:49
  you
• 6:49
  know,
• 6:49
  take
• 6:49
  advantage
• 6:50
  of
• 6:50
  any
• 6:50
  rent
• 6:50
  bumps
• 6:50
  that
• 6:51
  are
• 6:51
  available
• 6:52
  totally.
• 6:52
  And
• 6:53
  keep
• 6:53
  in
• 6:53
  mind,
• 6:53
  even
• 6:53
  aside
• 6:54
  from
• 6:54
  rent
• 6:54
  comps,
• 6:54
  also
• 6:55
  underlying
• 6:55
  market
• 6:56
  conditions.
• 6:56
  So
• 6:56
  there's
• 6:57
  a
• 6:57
  lot
• 6:57
  of
• 6:57
  syndicators
• 6:58
  who
• 6:58
  bought
• 6:58
  properties
• 6:59
  in
• 6:59
  2021
• 6:59
  and
• 7:00
  2022,
• 7:00
  and
• 7:00
  they
• 7:00
  made
• 7:01
  what
• 7:01
  seemed
• 7:01
  to
• 7:01
  be
• 7:01
  reasonable
• 7:02
  assumptions
• 7:02
  at
• 7:02
  the
• 7:03
  time.
• 7:03
  But
• 7:03
  then
• 7:03
  when
• 7:04
  you
• 7:04
  kind
• 7:04
  of
• 7:04
  look
• 7:04
  at
• 7:04
  the
• 7:04
  bigger
• 7:05
  economic
• 7:05
  picture,
• 7:06
  certain
• 7:07
  things
• 7:07
  change.
• 7:07
  And
• 7:07
  the
• 7:08
  comps
• 7:08
  that
• 7:08
  existed
• 7:08
  at
• 7:08
  those
• 7:09
  times
• 7:09
  may
• 7:09
  not
• 7:09
  necessarily
• 7:10
  be
• 7:10
  good
• 7:11
  comps
• 7:11
  or
• 7:11
  six
• 7:11
  or
• 7:12
  12
• 7:12
  months
• 7:12
  later,
• 7:12
  which
• 7:13
  many
• 7:13
  of
• 7:13
  us,
• 7:13
  myself
• 7:13
  included,
• 7:14
  probably
• 7:14
  found.
• 7:14
  Out,
• 7:15
  I
• 7:15
  think
• 7:15
  in
• 7:16
  that,
• 7:16
  again,
• 7:16
  going
• 7:17
  back
• 7:17
  to
• 7:17
  that
• 7:17
  millionaire
• 7:18
  real
• 7:18
  estate
• 7:18
  investor
• 7:18
  book.
• 7:19
  I
• 7:19
  love
• 7:19
  that
• 7:19
  so
• 7:19
  much,
• 7:20
  such
• 7:20
  a
• 7:20
  guide
• 7:20
  and
• 7:20
  a
• 7:20
  manual.
• 7:21
  And
• 7:21
  it's
• 7:21
  really.
• 7:22
  It
• 7:22
  drills
• 7:22
  in
• 7:23
  so
• 7:23
  much
• 7:23
  about
• 7:23
  your
• 7:23
  work
• 7:24
  team
• 7:24
  and
• 7:25
  knowing
• 7:25
  that
• 7:25
  you
• 7:25
  have
• 7:26
  like
• 7:26
  the
• 7:26
  right
• 7:26
  work
• 7:27
  team,
• 7:27
  you
• 7:27
  have
• 7:27
  a
• 7:27
  broker
• 7:28
  that
• 7:28
  can
• 7:28
  pull
• 7:28
  comps
• 7:29
  for
• 7:29
  you,
• 7:29
  that's
• 7:29
  boots
• 7:29
  on
• 7:29
  the
• 7:29
  ground.
• 7:30
  You
• 7:30
  have
• 7:30
  a
• 7:30
  property
• 7:30
  manager
• 7:31
  that
• 7:31
  can
• 7:31
  give
• 7:31
  you
• 7:32
  Realistic
• 7:33
  numbers
• 7:33
  of
• 7:33
  what
• 7:33
  can
• 7:34
  be
• 7:34
  rented
• 7:34
  for
• 7:34
  currently
• 7:35
  and
• 7:35
  what
• 7:35
  are
• 7:35
  the
• 7:35
  rent
• 7:36
  bumps
• 7:36
  available
• 7:36
  after
• 7:37
  construction
• 7:38
  and
• 7:38
  value
• 7:38
  add.
• 7:39
  So
• 7:39
  I
• 7:39
  think
• 7:39
  like
• 7:39
  your
• 7:40
  work
• 7:40
  team
• 7:40
  and
• 7:40
  then
• 7:41
  having
• 7:41
  the
• 7:41
  right
• 7:41
  contractor,
• 7:42
  I
• 7:42
  think
• 7:42
  that
• 7:42
  becomes
• 7:43
  extremely
• 7:44
  critical
• 7:44
  if
• 7:44
  you're
• 7:44
  interested
• 7:45
  in
• 7:45
  doing
• 7:45
  a
• 7:45
  that
• 7:46
  construction
• 7:46
  value
• 7:46
  out.
• 7:47
  Especially
• 7:47
  because
• 7:47
  like
• 7:47
  you're
• 7:48
  saying
• 7:48
  you
• 7:48
  don't
• 7:48
  want
• 7:48
  to
• 7:49
  overestimate
• 7:49
  the
• 7:50
  rents.
• 7:50
  Now
• 7:50
  you've
• 7:50
  put
• 7:50
  all
• 7:51
  this
• 7:51
  money
• 7:51
  into
• 7:51
  it
• 7:52
  and
• 7:52
  it's
• 7:52
  not
• 7:52
  going
• 7:52
  to
• 7:52
  yield
• 7:53
  the
• 7:53
  return
• 7:53
  you
• 7:53
  thought.
• 7:54
  So
• 7:54
  I
• 7:54
  think
• 7:54
  your
• 7:55
  work
• 7:55
  team
• 7:55
  is.
• 7:55
  It
• 7:56
  becomes
• 7:56
  more
• 7:56
  and
• 7:56
  more
• 7:56
  critical
• 7:57
  as
• 7:57
  you
• 7:57
  get
• 7:57
  into
• 7:57
  this
• 7:57
  type
• 7:58
  of
• 7:58
  strategy
• 7:58
  especially.
• 7:59
  Right.
• 7:59
  Well,
• 8:00
  let's
• 8:00
  talk
• 8:00
  about
• 8:00
  another
• 8:01
  strategy
• 8:01
  and
• 8:01
  kind
• 8:01
  of
• 8:02
  a
• 8:02
  play
• 8:02
  on
• 8:02
  the
• 8:02
  value,
• 8:02
  but
• 8:03
  maybe
• 8:03
  a
• 8:03
  specific
• 8:04
  type
• 8:05
  and
• 8:05
  it's
• 8:05
  called
• 8:05
  the
• 8:05
  Burr
• 8:05
  strategy,
• 8:06
  which
• 8:06
  many
• 8:06
  of
• 8:06
  you
• 8:06
  probably
• 8:07
  heard
• 8:07
  of.
• 8:07
  I
• 8:07
  believe
• 8:07
  that's
• 8:08
  a
• 8:08
  term
• 8:08
  that
• 8:08
  Biggerpockets
• 8:09
  coined
• 8:09
  once
• 8:09
  upon
• 8:10
  a
• 8:10
  time.
• 8:10
  And
• 8:10
  for
• 8:11
  everybody
• 8:11
  unfamiliar
• 8:11
  with
• 8:11
  that,
• 8:12
  it's
• 8:12
  buy,
• 8:13
  rehab,
• 8:13
  rent,
• 8:13
  refinance,
• 8:14
  repeat.
• 8:15
  So
• 8:15
  who
• 8:16
  might
• 8:16
  that
• 8:16
  strategy
• 8:16
  work
• 8:17
  forever?
• 8:17
  Who's
• 8:17
  that
• 8:17
  a
• 8:17
  good
• 8:18
  fit
• 8:18
  for
• 8:18
  and
• 8:19
  what
• 8:19
  do
• 8:19
  you
• 8:20
  find
• 8:20
  with
• 8:20
  that
• 8:20
  strategy?
• 8:21
  I
• 8:21
  actually,
• 8:22
  I
• 8:22
  love
• 8:23
  this
• 8:23
  strategy.
• 8:23
  I
• 8:24
  think
• 8:24
  that
• 8:24
  a
• 8:24
  lot
• 8:25
  of
• 8:25
  people
• 8:25
  think
• 8:26
  that
• 8:26
  you're
• 8:26
  going
• 8:27
  to
• 8:27
  do
• 8:27
  this
• 8:27
  on
• 8:27
  single
• 8:28
  family
• 8:28
  and
• 8:28
  I
• 8:28
  don't
• 8:29
  think
• 8:29
  they
• 8:29
  realize
• 8:29
  you
• 8:29
  could
• 8:30
  do
• 8:30
  this
• 8:30
  on
• 8:30
  multifamily
• 8:31
  too.
• 8:31
  And
• 8:32
  so
• 8:32
  I
• 8:32
  really
• 8:32
  love
• 8:33
  this
• 8:33
  one
• 8:33
  because
• 8:33
  you're
• 8:34
  going
• 8:34
  in.
• 8:34
  You
• 8:34
  know,
• 8:34
  again,
• 8:35
  my
• 8:35
  suggestion
• 8:35
  would
• 8:36
  be
• 8:36
  to
• 8:36
  do
• 8:36
  the
• 8:36
  operational
• 8:37
  efficiency
• 8:37
  side
• 8:38
  of
• 8:38
  the
• 8:38
  value
• 8:38
  add.
• 8:39
  And
• 8:39
  you
• 8:39
  go
• 8:39
  in,
• 8:39
  you
• 8:40
  increase
• 8:40
  the
• 8:40
  rents.
• 8:40
  You
• 8:41
  have
• 8:41
  to
• 8:41
  wait
• 8:41
  a
• 8:41
  certain
• 8:41
  time
• 8:41
  period
• 8:42
  depending
• 8:42
  on
• 8:42
  your
• 8:42
  financing,
• 8:43
  whether
• 8:43
  it
• 8:43
  be
• 8:43
  six
• 8:43
  months
• 8:44
  or
• 8:44
  a
• 8:44
  year,
• 8:44
  to
• 8:44
  be
• 8:44
  able
• 8:44
  to
• 8:44
  get
• 8:45
  your
• 8:45
  money
• 8:45
  back
• 8:45
  out.
• 8:45
  But
• 8:46
  what
• 8:46
  happens
• 8:46
  when
• 8:46
  you
• 8:46
  get
• 8:47
  the
• 8:47
  money
• 8:47
  back
• 8:47
  out?
• 8:47
  You
• 8:48
  cash
• 8:48
  out
• 8:48
  refi
• 8:49
  after
• 8:49
  increasing
• 8:50
  the
• 8:50
  value
• 8:50
  of
• 8:50
  the
• 8:50
  asset
• 8:51
  is
• 8:51
  your
• 8:51
  cash
• 8:52
  on
• 8:52
  cash
• 8:52
  return
• 8:53
  now
• 8:53
  skyrockets.
• 8:54
  And
• 8:54
  I
• 8:54
  think
• 8:54
  that
• 8:55
  some
• 8:56
  of
• 8:56
  those
• 8:56
  key
• 8:56
  metrics
• 8:56
  are
• 8:57
  what
• 8:57
  allow
• 8:57
  you
• 8:57
  to
• 8:57
  scale
• 8:58
  so
• 8:58
  much
• 8:58
  quicker.
• 8:59
  So
• 8:59
  I
• 8:59
  really
• 8:59
  love
• 9:00
  the
• 9:00
  brrrr
• 9:00
  method.
• 9:00
  I'm
• 9:01
  a
• 9:01
  huge
• 9:01
  fan
• 9:01
  of
• 9:02
  this
• 9:02
  one.
• 9:02
  So
• 9:03
  I
• 9:03
  think
• 9:03
  most
• 9:03
  of
• 9:04
  my
• 9:04
  single
• 9:05
  family
• 9:05
  investing
• 9:05
  friends
• 9:06
  would
• 9:06
  agree
• 9:06
  with
• 9:06
  that.
• 9:06
  I
• 9:07
  know
• 9:07
  for
• 9:07
  many
• 9:07
  of
• 9:07
  them
• 9:07
  it's
• 9:08
  their
• 9:08
  favorite
• 9:08
  strategy
• 9:08
  and
• 9:08
  kind
• 9:09
  of
• 9:09
  they
• 9:09
  go
• 9:09
  through
• 9:09
  play
• 9:09
  over
• 9:10
  and
• 9:10
  over
• 9:10
  again.
• 9:10
  But
• 9:10
  the
• 9:11
  Erica's
• 9:11
  point,
• 9:11
  something
• 9:11
  a
• 9:12
  lot
• 9:12
  of
• 9:12
  people
• 9:12
  don't
• 9:12
  think
• 9:12
  about
• 9:13
  with
• 9:13
  multifamily.
• 9:13
  Now,
• 9:14
  it's
• 9:14
  probably
• 9:14
  not
• 9:15
  going
• 9:15
  to
• 9:15
  happen
• 9:15
  as
• 9:16
  much
• 9:16
  with
• 9:16
  100
• 9:17
  unit
• 9:17
  property.
• 9:17
  I
• 9:17
  mean
• 9:17
  theoretically
• 9:18
  it
• 9:18
  could,
• 9:18
  but
• 9:19
  it's
• 9:19
  less
• 9:19
  likely.
• 9:20
  But
• 9:20
  if
• 9:20
  you're
• 9:20
  buying
• 9:21
  small
• 9:21
  multifamily,
• 9:21
  you
• 9:22
  know,
• 9:22
  a
• 9:22
  duplex,
• 9:22
  a
• 9:22
  fourplex,
• 9:23
  an
• 9:23
  aplex,
• 9:24
  there's
• 9:24
  a
• 9:24
  lot
• 9:24
  of
• 9:24
  people
• 9:24
  who
• 9:25
  use
• 9:25
  this
• 9:25
  strategy
• 9:25
  very
• 9:26
  effectively
• 9:26
  and
• 9:26
  it's
• 9:26
  a
• 9:26
  way
• 9:27
  to
• 9:27
  do
• 9:27
  it
• 9:27
  without
• 9:27
  having,
• 9:28
  you
• 9:28
  know,
• 9:28
  a
• 9:28
  gazillion
• 9:28
  partners
• 9:29
  in
• 9:29
  the
• 9:29
  deal.
• 9:29
  So
• 9:29
  that
• 9:29
  way
• 9:29
  you
• 9:30
  actually
• 9:30
  keep
• 9:30
  more
• 9:30
  of
• 9:30
  the
• 9:30
  properties
• 9:31
  and
• 9:31
  you're
• 9:31
  getting
• 9:31
  more
• 9:31
  of
• 9:31
  the
• 9:32
  benefit
• 9:32
  once
• 9:32
  the
• 9:33
  properties
• 9:33
  are
• 9:33
  stabilized
• 9:35
  that
• 9:35
  people
• 9:36
  like
• 9:36
  using.
• 9:37
  And
• 9:37
  most
• 9:37
  of
• 9:37
  them
• 9:38
  do
• 9:38
  it
• 9:38
  again
• 9:38
  and
• 9:38
  again
• 9:38
  and
• 9:38
  again.
• 9:39
  Yep.
• 9:39
  And
• 9:40
  just
• 9:40
  like
• 9:40
  you
• 9:40
  said,
• 9:41
  I
• 9:41
  think
• 9:41
  something
• 9:41
  to
• 9:42
  note
• 9:42
  on
• 9:42
  this
• 9:42
  too
• 9:42
  is
• 9:43
  that
• 9:43
  like,
• 9:43
  this
• 9:43
  is
• 9:44
  a
• 9:44
  very
• 9:44
  strategic
• 9:45
  play
• 9:46
  that
• 9:46
  is
• 9:46
  being
• 9:47
  set
• 9:47
  up
• 9:47
  to
• 9:48
  happen
• 9:48
  within
• 9:48
  a
• 9:48
  certain
• 9:49
  time
• 9:49
  frame.
• 9:49
  So
• 9:50
  like
• 9:50
  if
• 9:50
  you're
• 9:50
  trying
• 9:50
  to
• 9:50
  do
• 9:50
  it
• 9:51
  with
• 9:51
  a
• 9:51
  hundred
• 9:51
  doors,
• 9:52
  that's
• 9:52
  a
• 9:52
  hundred
• 9:52
  tenants
• 9:53
  that
• 9:53
  you're
• 9:53
  trying
• 9:53
  to
• 9:53
  do
• 9:54
  this,
• 9:54
  you
• 9:54
  know,
• 9:54
  this
• 9:54
  strategy
• 9:55
  with.
• 9:55
  That's
• 9:56
  not,
• 9:56
  I
• 9:56
  don't
• 9:56
  think
• 9:57
  the
• 9:57
  play
• 9:57
  here
• 9:58
  with
• 9:58
  the
• 9:58
  brrrr
• 9:58
  method.
• 9:59
  I
• 9:59
  think
• 9:59
  doing
• 9:59
  it
• 10:00
  on
• 10:00
  the
• 10:00
  smaller
• 10:00
  multifamily
• 10:01
  is
• 10:01
  really
• 10:01
  key
• 10:02
  because
• 10:02
  it
• 10:02
  allows
• 10:03
  you
• 10:03
  to
• 10:03
  kind
• 10:03
  of
• 10:04
  consolidate
• 10:04
  your
• 10:04
  resources
• 10:05
  and
• 10:05
  hit
• 10:05
  those
• 10:06
  time
• 10:06
  frames
• 10:06
  of
• 10:06
  when
• 10:06
  you
• 10:07
  cash
• 10:07
  back
• 10:07
  out
• 10:08
  versus,
• 10:08
  you
• 10:08
  know,
• 10:09
  a
• 10:09
  hundred
• 10:09
  tenants,
• 10:10
  that's
• 10:10
  100
• 10:10
  leases
• 10:11
  that
• 10:11
  you're
• 10:11
  trying
• 10:12
  to
• 10:12
  do
• 10:12
  operational
• 10:13
  efficiencies
• 10:13
  with.
• 10:14
  So
• 10:14
  I
• 10:14
  think
• 10:14
  this
• 10:14
  is
• 10:15
  a
• 10:15
  really
• 10:15
  great
• 10:15
  method,
• 10:16
  especially
• 10:16
  for
• 10:16
  those
• 10:16
  like
• 10:17
  two
• 10:17
  to
• 10:17
  four
• 10:18
  units.
• 10:18
  I
• 10:19
  really,
• 10:19
  really
• 10:19
  love
• 10:19
  this
• 10:19
  for
• 10:20
  the
• 10:20
  small
• 10:20
  multifamily.
• 10:21
  Oh,
• 10:21
  totally.
• 10:22
  And
• 10:23
  most
• 10:23
  of
• 10:23
  the
• 10:23
  people
• 10:23
  I
• 10:23
  know
• 10:24
  do
• 10:24
  it
• 10:24
  is
• 10:24
  usually
• 10:25
  they're
• 10:25
  using
• 10:25
  a
• 10:25
  private
• 10:26
  lender.
• 10:26
  I
• 10:26
  mean,
• 10:26
  do
• 10:26
  you
• 10:26
  find
• 10:26
  that
• 10:27
  too,
• 10:27
  Erica,
• 10:27
  that
• 10:27
  most
• 10:27
  people,
• 10:27
  you
• 10:28
  know,
• 10:28
  is
• 10:28
  that
• 10:28
  usually
• 10:28
  the
• 10:29
  strategy?
• 10:29
  Because
• 10:29
  usually
• 10:30
  conventional
• 10:30
  financing
• 10:31
  is
• 10:31
  the
• 10:31
  exit
• 10:32
  play
• 10:32
  when
• 10:32
  you
• 10:32
  kind
• 10:32
  of
• 10:33
  rehabbing
• 10:33
  the
• 10:33
  property
• 10:34
  and
• 10:34
  getting
• 10:34
  the
• 10:34
  money
• 10:34
  out.
• 10:35
  But
• 10:35
  most
• 10:35
  people
• 10:35
  are
• 10:35
  using
• 10:36
  private
• 10:36
  money
• 10:36
  just
• 10:36
  to
• 10:37
  close
• 10:37
  it
• 10:37
  faster
• 10:37
  and
• 10:38
  be
• 10:38
  able
• 10:38
  to
• 10:38
  get
• 10:38
  going
• 10:38
  and
• 10:38
  hit
• 10:38
  the
• 10:39
  ground
• 10:39
  running
• 10:39
  as
• 10:39
  soon
• 10:39
  as
• 10:39
  they
• 10:39
  get
• 10:40
  in
• 10:40
  there.
• 10:40
  Yeah,
• 10:41
  that's
• 10:41
  exactly
• 10:41
  what
• 10:41
  I
• 10:42
  find
• 10:42
  too,
• 10:42
  Charles
• 10:42
  and
• 10:42
  I,
• 10:43
  I
• 10:43
  think
• 10:43
  even
• 10:44
  a
• 10:44
  lot
• 10:44
  of
• 10:44
  my
• 10:45
  investors
• 10:45
  will
• 10:46
  even
• 10:46
  like
• 10:46
  look
• 10:46
  at
• 10:46
  doing
• 10:46
  hard
• 10:47
  money
• 10:47
  lending
• 10:47
  for
• 10:47
  this.
• 10:48
  And
• 10:48
  I
• 10:48
  think
• 10:48
  some,
• 10:49
  so
• 10:49
  many
• 10:49
  people
• 10:49
  hear
• 10:50
  hard
• 10:50
  money
• 10:50
  lending,
• 10:50
  it's
• 10:51
  like,
• 10:51
  ooh,
• 10:51
  scary.
• 10:51
  But
• 10:52
  it's
• 10:52
  just
• 10:52
  you're,
• 10:52
  you
• 10:52
  know,
• 10:53
  you
• 10:53
  have
• 10:53
  a
• 10:53
  certain
• 10:53
  interest
• 10:54
  rate,
• 10:54
  you
• 10:54
  know
• 10:54
  what
• 10:54
  your
• 10:54
  timeframes
• 10:55
  are
• 10:55
  and
• 10:55
  you're
• 10:55
  just,
• 10:56
  you're
• 10:56
  making
• 10:56
  sure
• 10:56
  your
• 10:56
  cash
• 10:57
  flow
• 10:57
  equations
• 10:57
  are
• 10:58
  still
• 10:58
  going
• 10:58
  to,
• 10:58
  you
• 10:58
  know,
• 10:59
  match
• 10:59
  what
• 10:59
  you
• 10:59
  need
• 11:00
  from
• 11:00
  the
• 11:00
  property
• 11:01
  and
• 11:01
  your
• 11:01
  strategy.
• 11:02
  So
• 11:02
  I,
• 11:02
  you
• 11:02
  know,
• 11:03
  definitely
• 11:03
  more
• 11:04
  private
• 11:04
  money
• 11:04
  lending.
• 11:05
  Hard
• 11:05
  money
• 11:05
  lending
• 11:06
  I
• 11:06
  see
• 11:06
  used
• 11:06
  with
• 11:06
  this
• 11:07
  especially
• 11:07
  my
• 11:07
  investors
• 11:08
  are
• 11:08
  doing
• 11:08
  on
• 11:09
  single
• 11:09
  family.
• 11:09
  Well,
• 11:10
  let's
• 11:10
  talk
• 11:10
  about
• 11:10
  another
• 11:11
  strategy.
• 11:11
  And
• 11:11
  this
• 11:12
  next
• 11:12
  one
• 11:12
  I
• 11:12
  think
• 11:12
  is
• 11:12
  going
• 11:12
  to
• 11:12
  be
• 11:13
  really
• 11:13
  popular
• 11:14
  for
• 11:14
  anybody
• 11:14
  who's
• 11:14
  brand
• 11:14
  new,
• 11:15
  especially
• 11:15
  if
• 11:15
  it's
• 11:16
  something
• 11:16
  that
• 11:16
  you
• 11:16
  don't
• 11:17
  mind
• 11:17
  putting
• 11:17
  maybe
• 11:17
  a
• 11:17
  little
• 11:17
  sweat
• 11:18
  equity
• 11:18
  in
• 11:18
  and
• 11:19
  getting
• 11:19
  something
• 11:20
  that's
• 11:20
  going
• 11:20
  to
• 11:20
  boost
• 11:20
  your
• 11:21
  net
• 11:21
  worth
• 11:21
  and
• 11:21
  hopefully
• 11:22
  boost
• 11:22
  your
• 11:22
  income
• 11:22
  and
• 11:22
  take
• 11:23
  a
• 11:23
  major
• 11:23
  expense
• 11:23
  with
• 11:23
  your
• 11:24
  plate.
• 11:24
  And
• 11:24
  that's
• 11:24
  house
• 11:25
  hacking.
• 11:26
  So
• 11:26
  this
• 11:26
  is
• 11:26
  another
• 11:26
  term
• 11:27
  that's
• 11:27
  really
• 11:27
  become
• 11:27
  very
• 11:28
  popular
• 11:28
  in
• 11:28
  the
• 11:28
  last
• 11:28
  decade.
• 11:29
  And
• 11:29
  for
• 11:29
  anybody
• 11:30
  unfamiliar
• 11:30
  with
• 11:31
  that,
• 11:31
  what
• 11:31
  you're
• 11:31
  doing
• 11:32
  is
• 11:32
  you're
• 11:32
  buying
• 11:32
  a
• 11:32
  property
• 11:33
  and
• 11:34
  you're
• 11:34
  living
• 11:34
  in
• 11:34
  one
• 11:35
  unit
• 11:35
  and
• 11:35
  renting
• 11:36
  out
• 11:36
  the
• 11:36
  others.
• 11:37
  So
• 11:37
  now
• 11:38
  there
• 11:38
  are
• 11:38
  times
• 11:38
  where
• 11:38
  people
• 11:39
  house
• 11:39
  hack
• 11:39
  actually
• 11:39
  even
• 11:40
  in
• 11:40
  the
• 11:40
  same
• 11:40
  unit,
• 11:40
  maybe
• 11:40
  you
• 11:41
  buy
• 11:41
  a
• 11:41
  single
• 11:41
  family
• 11:42
  home
• 11:42
  or
• 11:42
  you
• 11:43
  buy
• 11:43
  a
• 11:43
  condo
• 11:44
  and
• 11:44
  you're
• 11:44
  renting
• 11:45
  by
• 11:45
  the
• 11:45
  room.
• 11:45
  Now
• 11:46
  that
• 11:46
  really
• 11:46
  takes
• 11:46
  a
• 11:46
  special
• 11:46
  type
• 11:47
  of
• 11:47
  person.
• 11:47
  I
• 11:47
  mean,
• 11:47
  for
• 11:48
  me
• 11:48
  personally,
• 11:48
  it
• 11:48
  probably
• 11:48
  isn't
• 11:49
  my
• 11:49
  cup
• 11:49
  of
• 11:49
  tea,
• 11:49
  but
• 11:50
  if
• 11:50
  you
• 11:50
  have
• 11:51
  the
• 11:51
  space
• 11:51
  and
• 11:51
  you
• 11:51
  have
• 11:51
  the
• 11:52
  willingness
• 11:52
  to
• 11:52
  do
• 11:52
  it,
• 11:52
  you
• 11:53
  can
• 11:53
  do
• 11:53
  it
• 11:53
  that
• 11:53
  way
• 11:53
  too.
• 11:54
  But
• 11:54
  the
• 11:54
  way
• 11:54
  people
• 11:54
  use
• 11:55
  is
• 11:55
  they're
• 11:55
  buying
• 11:55
  a
• 11:55
  duplex
• 11:56
  or
• 11:56
  a
• 11:56
  triplex,
• 11:56
  maybe
• 11:57
  a
• 11:57
  four
• 11:57
  plex.
• 11:57
  They're
• 11:57
  putting,
• 11:58
  you
• 11:58
  know,
• 11:58
  it's
• 11:58
  a
• 11:58
  residential
• 11:59
  property
• 11:59
  at
• 11:59
  that
• 12:00
  point
• 12:00
  for
• 12:00
  lending
• 12:00
  purposes.
• 12:01
  So
• 12:01
  you're
• 12:01
  putting
• 12:01
  a
• 12:01
  long
• 12:01
  term
• 12:02
  loan
• 12:02
  on
• 12:02
  it
• 12:02
  most
• 12:02
  times.
• 12:03
  And
• 12:03
  what's
• 12:03
  happening
• 12:04
  is
• 12:04
  that,
• 12:04
  you
• 12:04
  know,
• 12:04
  for
• 12:05
  many
• 12:05
  of
• 12:05
  us,
• 12:05
  you
• 12:06
  know,
• 12:06
  for
• 12:06
  somebody
• 12:06
  who's
• 12:07
  in
• 12:07
  that
• 12:07
  average
• 12:07
  person
• 12:08
  demographic,
• 12:09
  what
• 12:09
  you're
• 12:09
  finding
• 12:09
  is
• 12:10
  that
• 12:10
  housing
• 12:10
  is
• 12:10
  usually
• 12:10
  one
• 12:11
  of
• 12:11
  your
• 12:11
  biggest
• 12:11
  costs.
• 12:12
  And
• 12:12
  by
• 12:12
  house
• 12:12
  hacking,
• 12:13
  the
• 12:13
  benefit
• 12:13
  to
• 12:13
  that
• 12:14
  is,
• 12:14
  let's
• 12:14
  say
• 12:14
  even
• 12:14
  if
• 12:14
  you
• 12:14
  have
• 12:15
  a
• 12:15
  duplex,
• 12:15
  you're
• 12:15
  living
• 12:16
  in
• 12:16
  one
• 12:16
  unit
• 12:16
  and
• 12:17
  you
• 12:17
  have
• 12:17
  somebody
• 12:17
  else
• 12:18
  paying
• 12:18
  rent
• 12:18
  for
• 12:18
  the
• 12:18
  other
• 12:18
  one.
• 12:19
  So
• 12:19
  it's
• 12:19
  paying
• 12:19
  at
• 12:19
  least
• 12:20
  part
• 12:20
  of
• 12:20
  that
• 12:20
  mortgage,
• 12:21
  so
• 12:21
  you
• 12:21
  don't
• 12:21
  have
• 12:21
  to
• 12:21
  come
• 12:21
  out
• 12:21
  of
• 12:22
  pocket.
• 12:22
  Now
• 12:22
  if
• 12:22
  you
• 12:22
  have
• 12:22
  a
• 12:23
  fourplex,
• 12:23
  there's
• 12:24
  a
• 12:24
  good
• 12:24
  chance
• 12:24
  you're
• 12:24
  not
• 12:24
  coming
• 12:25
  out
• 12:25
  of
• 12:25
  pocket
• 12:25
  at
• 12:25
  all
• 12:25
  for
• 12:25
  the
• 12:25
  mortgage.
• 12:26
  And
• 12:26
  then
• 12:26
  you're
• 12:26
  kind
• 12:26
  of
• 12:26
  living
• 12:27
  for
• 12:27
  free.
• 12:27
  So
• 12:28
  you
• 12:28
  get
• 12:28
  all
• 12:28
  that
• 12:28
  money
• 12:28
  you
• 12:28
  would
• 12:28
  have
• 12:29
  spent
• 12:29
  on
• 12:29
  housing
• 12:29
  back
• 12:30
  and
• 12:30
  you
• 12:30
  can
• 12:30
  use
• 12:30
  that
• 12:31
  for
• 12:31
  other
• 12:31
  things,
• 12:32
  whether
• 12:32
  it
• 12:32
  be
• 12:32
  your
• 12:32
  next
• 12:33
  investment
• 12:33
  or
• 12:33
  some
• 12:33
  other
• 12:34
  area
• 12:34
  in
• 12:34
  life
• 12:34
  that
• 12:34
  you
• 12:35
  want
• 12:35
  to
• 12:35
  spend
• 12:35
  it
• 12:35
  on.
• 12:35
  Yeah,
• 12:36
  good
• 12:36
  stuff.
• 12:37
  That's
• 12:37
  absolutely.
• 12:37
  I
• 12:38
  love
• 12:38
  it.
• 12:38
  And
• 12:38
  like
• 12:39
  you
• 12:39
  said,
• 12:39
  the
• 12:39
  house
• 12:39
  hacking,
• 12:40
  it's
• 12:40
  like
• 12:40
  two
• 12:40
  different
• 12:40
  ways
• 12:41
  of
• 12:41
  doing
• 12:41
  it,
• 12:41
  right?
• 12:41
  You
• 12:42
  have
• 12:42
  the
• 12:42
  two
• 12:42
  to
• 12:42
  four
• 12:43
  units
• 12:43
  and
• 12:44
  that
• 12:44
  way
• 12:44
  you're
• 12:45
  typically,
• 12:45
  you
• 12:45
  can
• 12:46
  even
• 12:46
  do
• 12:46
  an
• 12:46
  fha.
• 12:47
  I
• 12:47
  was
• 12:47
  looking
• 12:47
  at
• 12:47
  three
• 12:48
  and
• 12:48
  a
• 12:48
  half
• 12:48
  percent
• 12:48
  down
• 12:48
  FHA
• 12:49
  loan
• 12:49
  for
• 12:49
  a
• 12:50
  four
• 12:50
  unit.
• 12:50
  And
• 12:51
  one
• 12:51
  of
• 12:51
  the
• 12:51
  keys
• 12:51
  to
• 12:52
  that
• 12:52
  is
• 12:52
  you
• 12:52
  do
• 12:52
  have
• 12:53
  to
• 12:53
  have,
• 12:53
  well,
• 12:54
  according
• 12:54
  to
• 12:54
  my
• 12:54
  lender,
• 12:54
  when
• 12:55
  I
• 12:55
  was
• 12:55
  looking
• 12:55
  into
• 12:55
  it,
• 12:56
  you
• 12:56
  have
• 12:56
  to
• 12:56
  have
• 12:56
  six
• 12:56
  months
• 12:57
  of
• 12:57
  cash
• 12:57
  reserves
• 12:58
  for
• 12:58
  each
• 12:58
  unit
• 12:58
  because
• 12:59
  they
• 12:59
  don't
• 12:59
  want
• 12:59
  you
• 12:59
  to
• 12:59
  just
• 12:59
  get
• 13:00
  in
• 13:00
  and,
• 13:01
  you
• 13:01
  know,
• 13:01
  start
• 13:01
  making
• 13:01
  cash
• 13:01
  flow
• 13:02
  and
• 13:02
  be
• 13:02
  a
• 13:02
  landlord
• 13:02
  and
• 13:02
  not
• 13:02
  have
• 13:03
  the
• 13:03
  cash
• 13:03
  reserves
• 13:03
  you
• 13:04
  need.
• 13:04
  If
• 13:04
  anything
• 13:04
  were
• 13:04
  to
• 13:05
  go
• 13:05
  wrong,
• 13:05
  especially
• 13:05
  with
• 13:05
  an
• 13:06
  FHA
• 13:06
  loan.
• 13:06
  So
• 13:07
  that's
• 13:07
  one
• 13:07
  of
• 13:07
  the
• 13:07
  caveats.
• 13:08
  But
• 13:08
  I
• 13:09
  really
• 13:09
  like
• 13:09
  that
• 13:09
  one
• 13:10
  a
• 13:10
  lot
• 13:10
  because,
• 13:11
  like
• 13:11
  you
• 13:11
  said,
• 13:11
  like,
• 13:11
  it's
• 13:12
  just
• 13:12
  a
• 13:12
  duplex.
• 13:13
  Like,
• 13:13
  they
• 13:13
  could
• 13:13
  be
• 13:13
  covering
• 13:13
  half
• 13:14
  your
• 13:14
  mortgage
• 13:14
  by
• 13:14
  the
• 13:14
  time
• 13:14
  you
• 13:14
  get
• 13:14
  to
• 13:15
  a
• 13:15
  four
• 13:15
  unit.
• 13:15
  Like,
• 13:16
  you're
• 13:16
  living
• 13:16
  for
• 13:16
  free.
• 13:17
  And
• 13:17
  then
• 13:17
  you
• 13:18
  literally
• 13:18
  just
• 13:18
  live
• 13:18
  in
• 13:18
  it
• 13:18
  for
• 13:19
  a
• 13:19
  year
• 13:19
  and
• 13:19
  cash
• 13:20
  out,
• 13:20
  refi.
• 13:20
  Move
• 13:20
  on
• 13:21
  to
• 13:21
  the
• 13:21
  next
• 13:21
  one.
• 13:21
  So
• 13:21
  you
• 13:21
  can
• 13:21
  even
• 13:22
  do
• 13:22
  the
• 13:22
  burst
• 13:22
  strategy
• 13:22
  with
• 13:23
  house
• 13:23
  hacking
• 13:23
  the
• 13:24
  other
• 13:24
  one,
• 13:24
  the
• 13:25
  room
• 13:25
  rent
• 13:25
  market.
• 13:26
  So
• 13:26
  room
• 13:26
  renting
• 13:27
  is
• 13:27
  super
• 13:27
  popular
• 13:28
  in
• 13:28
  Charlotte
• 13:28
  just
• 13:29
  because
• 13:29
  of
• 13:29
  how
• 13:29
  many
• 13:29
  people
• 13:30
  are
• 13:30
  moving
• 13:30
  here
• 13:30
  a
• 13:30
  day.
• 13:31
  I
• 13:31
  will
• 13:31
  say,
• 13:31
  like
• 13:32
  my
• 13:32
  investors
• 13:32
  that
• 13:32
  look
• 13:33
  for
• 13:33
  those
• 13:34
  houses
• 13:34
  that
• 13:34
  could
• 13:34
  fit
• 13:35
  for
• 13:35
  room
• 13:35
  renting,
• 13:36
  it's
• 13:36
  very
• 13:37
  strategic
• 13:38
  based
• 13:38
  on
• 13:38
  the
• 13:39
  floor
• 13:39
  plan.
• 13:40
  Right.
• 13:40
  And
• 13:40
  you
• 13:41
  have
• 13:41
  to
• 13:41
  make
• 13:41
  sure
• 13:41
  that
• 13:41
  you
• 13:42
  have
• 13:42
  like,
• 13:42
  the
• 13:43
  bathrooms
• 13:43
  that
• 13:43
  would
• 13:43
  be
• 13:44
  needed.
• 13:44
  And
• 13:44
  so
• 13:44
  like,
• 13:45
  the
• 13:45
  floor
• 13:45
  plan
• 13:46
  becomes
• 13:46
  really
• 13:46
  important
• 13:47
  of
• 13:47
  the
• 13:47
  home.
• 13:47
  And
• 13:48
  also,
• 13:48
  like,
• 13:48
  it's.
• 13:49
  It
• 13:49
  becomes
• 13:49
  even
• 13:50
  more
• 13:50
  critical
• 13:50
  that
• 13:50
  you're
• 13:51
  actually
• 13:51
  qualifying
• 13:52
  tenants.
• 13:52
  And
• 13:53
  he's
• 13:53
  like
• 13:53
  one
• 13:53
  of
• 13:53
  my
• 13:54
  investors
• 13:54
  that
• 13:54
  does
• 13:54
  this
• 13:55
  one
• 13:55
  a
• 13:55
  lot
• 13:55
  with
• 13:55
  several
• 13:56
  properties.
• 13:56
  He's
• 13:56
  always
• 13:57
  like
• 13:57
  kind
• 13:57
  of
• 13:57
  matchmaking,
• 13:58
  like
• 13:58
  this
• 13:58
  person
• 13:59
  will
• 13:59
  fit
• 13:59
  into
• 13:59
  this
• 14:00
  community
• 14:00
  that
• 14:00
  I've
• 14:01
  created
• 14:01
  in
• 14:01
  this
• 14:01
  one
• 14:01
  house
• 14:02
  because
• 14:02
  you
• 14:03
  have
• 14:03
  to
• 14:03
  make
• 14:03
  sure
• 14:03
  like,
• 14:03
  that
• 14:04
  they're
• 14:04
  going
• 14:04
  to
• 14:04
  get
• 14:04
  along,
• 14:05
  you
• 14:05
  know,
• 14:05
  so
• 14:05
  there's
• 14:06
  this
• 14:06
  extra
• 14:07
  element
• 14:07
  of
• 14:07
  vetting
• 14:08
  the
• 14:08
  tenant
• 14:08
  and
• 14:08
  making
• 14:09
  sure
• 14:09
  that
• 14:09
  you
• 14:09
  know
• 14:10
  that
• 14:10
  you
• 14:10
  mitigate
• 14:10
  risk
• 14:10
  when
• 14:11
  you're
• 14:11
  doing
• 14:11
  house
• 14:11
  tacking
• 14:12
  with
• 14:12
  the
• 14:12
  room
• 14:12
  renting.
• 14:13
  So
• 14:13
  I
• 14:13
  like
• 14:14
  the
• 14:14
  two
• 14:14
  to
• 14:14
  four
• 14:14
  unit
• 14:15
  strategy
• 14:15
  more,
• 14:16
  but
• 14:16
  definitely
• 14:17
  both
• 14:17
  of
• 14:17
  those
• 14:17
  can
• 14:17
  be
• 14:17
  really
• 14:18
  great
• 14:18
  strategies
• 14:18
  to
• 14:19
  scale.
• 14:19
  Scale
• 14:19
  much
• 14:20
  quicker.
• 14:20
  Yes.
• 14:21
  You
• 14:21
  know,
• 14:21
  that
• 14:21
  definitely
• 14:22
  takes
• 14:22
  the
• 14:22
  right
• 14:22
  personality.
• 14:23
  And
• 14:23
  if
• 14:23
  you're,
• 14:23
  if
• 14:23
  you're
• 14:23
  married,
• 14:24
  you
• 14:24
  probably
• 14:24
  want
• 14:24
  to
• 14:24
  check
• 14:25
  me
• 14:25
  spouse,
• 14:25
  make
• 14:25
  sure
• 14:25
  they're
• 14:26
  comfortable
• 14:26
  today
• 14:26
  as
• 14:26
  well.
• 14:27
  But
• 14:27
  you're
• 14:27
  very
• 14:27
  effective
• 14:28
  strategy
• 14:28
  if
• 14:28
  you're
• 14:29
  just
• 14:29
  starting
• 14:29
  out
• 14:29
  and,
• 14:30
  and
• 14:30
  to
• 14:30
  really
• 14:30
  help
• 14:31
  you
• 14:31
  get
• 14:31
  control
• 14:31
  of
• 14:31
  your
• 14:31
  cash
• 14:32
  flow
• 14:32
  and
• 14:32
  get
• 14:32
  control
• 14:32
  of
• 14:33
  your
• 14:33
  wealth
• 14:33
  building.
• 14:34
  Yeah,
• 14:34
  I
• 14:34
  will
• 14:34
  say
• 14:35
  one
• 14:35
  of
• 14:35
  my
• 14:35
  investors,
• 14:36
  the
• 14:37
  house
• 14:37
  hacking,
• 14:37
  like
• 14:38
  the
• 14:38
  room
• 14:38
  renting
• 14:39
  a
• 14:39
  property
• 14:39
  in
• 14:39
  Gastonia
• 14:40
  that
• 14:40
  she
• 14:41
  was
• 14:41
  doing,
• 14:41
  she
• 14:42
  actually
• 14:42
  received
• 14:43
  a
• 14:43
  letter
• 14:43
  from
• 14:43
  the
• 14:43
  city
• 14:44
  or
• 14:44
  from
• 14:44
  the
• 14:44
  county
• 14:45
  that
• 14:45
  said
• 14:45
  that
• 14:45
  they
• 14:45
  don't
• 14:45
  allow
• 14:46
  house
• 14:46
  hacking
• 14:47
  with
• 14:47
  room
• 14:47
  rentals.
• 14:48
  So
• 14:48
  you
• 14:49
  can't
• 14:49
  have
• 14:49
  more
• 14:49
  than
• 14:49
  three
• 14:50
  people
• 14:50
  that
• 14:50
  are
• 14:51
  renting
• 14:51
  a
• 14:51
  room
• 14:51
  in
• 14:51
  any
• 14:51
  particular
• 14:52
  home
• 14:52
  in
• 14:52
  that
• 14:52
  county.
• 14:53
  So
• 14:53
  I
• 14:53
  will
• 14:53
  say
• 14:54
  on
• 14:54
  that
• 14:54
  one,
• 14:54
  you
• 14:54
  definitely
• 14:54
  want
• 14:55
  to
• 14:55
  check
• 14:55
  with
• 14:55
  your
• 14:55
  local
• 14:55
  municipality
• 14:56
  and
• 14:56
  ensure
• 14:57
  that
• 14:57
  that
• 14:58
  strategy
• 14:58
  is
• 14:58
  going
• 14:58
  to
• 14:58
  be
• 14:58
  something
• 14:59
  you're
• 14:59
  not
• 14:59
  going
• 14:59
  to
• 14:59
  run
• 14:59
  into
• 14:59
  problems
• 15:00
  with.
• 15:00
  Yes,
• 15:01
  100%,
• 15:01
  I
• 15:01
  agree
• 15:02
  with
• 15:02
  you
• 15:02
  on
• 15:02
  that.
• 15:02
  Okay,
• 15:02
  so
• 15:03
  Then
• 15:03
  we
• 15:03
  have
• 15:03
  another
• 15:04
  one.
• 15:04
  This
• 15:04
  is
• 15:05
  probably
• 15:05
  a
• 15:05
  less
• 15:05
  common
• 15:06
  one,
• 15:06
  but
• 15:06
  you
• 15:06
  will
• 15:06
  see
• 15:06
  it
• 15:07
  in
• 15:07
  some
• 15:07
  properties
• 15:08
  is
• 15:08
  using
• 15:08
  them
• 15:09
  as
• 15:09
  short
• 15:09
  term
• 15:09
  rentals
• 15:09
  or
• 15:10
  corporate
• 15:10
  housing.
• 15:11
  So
• 15:11
  what's
• 15:11
  the
• 15:12
  benefit
• 15:12
  for
• 15:12
  this?
• 15:13
  Well,
• 15:13
  as
• 15:13
  many
• 15:13
  of
• 15:13
  us
• 15:14
  know
• 15:14
  who
• 15:14
  have
• 15:14
  been
• 15:14
  following
• 15:15
  the
• 15:15
  short
• 15:15
  term
• 15:15
  rental
• 15:16
  market,
• 15:16
  and
• 15:16
  probably
• 15:16
  the
• 15:16
  few
• 15:16
  of
• 15:17
  us
• 15:17
  who
• 15:17
  have
• 15:17
  been
• 15:17
  following
• 15:17
  corporate
• 15:17
  housing
• 15:18
  over
• 15:18
  the
• 15:18
  last
• 15:18
  couple
• 15:18
  of
• 15:18
  years,
• 15:19
  is
• 15:19
  that
• 15:19
  you
• 15:19
  generally
• 15:20
  get
• 15:20
  higher
• 15:21
  rates
• 15:21
  for
• 15:21
  those
• 15:21
  than
• 15:21
  you
• 15:21
  are
• 15:21
  going
• 15:22
  to
• 15:22
  get
• 15:22
  for
• 15:22
  a
• 15:22
  long
• 15:22
  term
• 15:22
  rental.
• 15:23
  Now,
• 15:23
  obviously
• 15:23
  there
• 15:24
  is
• 15:24
  some
• 15:24
  more,
• 15:24
  some
• 15:25
  more
• 15:25
  care
• 15:25
  involved
• 15:26
  with
• 15:26
  the
• 15:26
  short
• 15:26
  term
• 15:27
  rental.
• 15:27
  Once
• 15:27
  you
• 15:27
  get
• 15:27
  into
• 15:27
  that,
• 15:28
  it's
• 15:28
  almost
• 15:28
  more
• 15:28
  a
• 15:29
  hospitality
• 15:29
  business
• 15:30
  than
• 15:30
  it
• 15:30
  is
• 15:30
  real
• 15:30
  estate
• 15:30
  because
• 15:31
  there's
• 15:31
  a
• 15:31
  lot
• 15:31
  of
• 15:31
  moving
• 15:31
  parts.
• 15:32
  You
• 15:32
  have
• 15:32
  to
• 15:32
  make
• 15:32
  sure
• 15:32
  the
• 15:33
  units
• 15:33
  are
• 15:33
  ready
• 15:34
  and
• 15:34
  they're
• 15:34
  presentable
• 15:34
  and
• 15:35
  they're
• 15:35
  properly
• 15:35
  furnished
• 15:36
  and
• 15:36
  they're,
• 15:36
  they're
• 15:36
  marketed
• 15:37
  correctly.
• 15:37
  So
• 15:37
  that
• 15:38
  way
• 15:38
  you
• 15:38
  can
• 15:38
  get
• 15:38
  that
• 15:38
  premium.
• 15:39
  And
• 15:39
  same
• 15:39
  thing
• 15:39
  with
• 15:40
  corporate
• 15:40
  housing,
• 15:40
  with
• 15:41
  the
• 15:41
  main
• 15:41
  difference
• 15:41
  being
• 15:41
  that
• 15:41
  with
• 15:42
  corporate
• 15:42
  housing,
• 15:43
  instead
• 15:43
  of
• 15:43
  renting
• 15:43
  to
• 15:44
  somebody
• 15:44
  on
• 15:44
  Airbnb
• 15:45
  or
• 15:45
  Verbo,
• 15:45
  a
• 15:46
  lot
• 15:46
  of
• 15:46
  times
• 15:46
  you're
• 15:46
  seeking
• 15:47
  a
• 15:47
  corporate
• 15:47
  client
• 15:48
  that
• 15:48
  may
• 15:48
  have
• 15:48
  people
• 15:49
  coming
• 15:49
  into
• 15:49
  and
• 15:50
  out
• 15:50
  of
• 15:50
  an
• 15:50
  area
• 15:50
  on
• 15:51
  a
• 15:51
  regular
• 15:51
  basis.
• 15:52
  So
• 15:52
  a
• 15:52
  lot
• 15:52
  of
• 15:52
  large
• 15:53
  companies
• 15:53
  do
• 15:53
  corporate
• 15:54
  housing,
• 15:54
  you
• 15:54
  know,
• 15:54
  companies
• 15:55
  like
• 15:55
  Microsoft,
• 15:56
  companies
• 15:56
  like
• 15:56
  a
• 15:56
  lot
• 15:57
  of
• 15:57
  healthcare
• 15:57
  companies,
• 15:58
  because
• 15:58
  they're
• 15:59
  cycling
• 15:59
  people
• 16:00
  in
• 16:00
  and
• 16:00
  out
• 16:00
  of
• 16:00
  areas
• 16:01
  on
• 16:01
  a
• 16:01
  regular
• 16:01
  basis.
• 16:02
  So
• 16:02
  instead
• 16:02
  of
• 16:02
  putting
• 16:02
  them
• 16:02
  up
• 16:02
  in
• 16:03
  a
• 16:03
  hotel,
• 16:03
  it
• 16:03
  becomes
• 16:04
  cheaper
• 16:04
  to
• 16:04
  rent
• 16:04
  a
• 16:04
  couple
• 16:05
  of
• 16:05
  apartments
• 16:05
  and
• 16:06
  keep
• 16:06
  them
• 16:06
  furnished
• 16:06
  all
• 16:06
  times
• 16:07
  and
• 16:07
  be
• 16:07
  able
• 16:08
  to
• 16:08
  have
• 16:08
  somewhere
• 16:09
  for
• 16:09
  people
• 16:09
  to
• 16:09
  stay
• 16:09
  that
• 16:10
  actually
• 16:10
  becomes
• 16:10
  more
• 16:10
  cost
• 16:11
  efficient.
• 16:11
  Now,
• 16:12
  one
• 16:12
  thing
• 16:12
  that's
• 16:12
  really
• 16:12
  important
• 16:13
  with
• 16:13
  this
• 16:13
  strategy
• 16:14
  is
• 16:14
  you
• 16:15
  have
• 16:15
  to
• 16:15
  make
• 16:15
  sure
• 16:15
  your
• 16:16
  loan
• 16:16
  agreement
• 16:16
  allows
• 16:17
  you
• 16:17
  to
• 16:17
  do
• 16:17
  that.
• 16:17
  Some
• 16:18
  do
• 16:18
  and
• 16:18
  some
• 16:18
  don't.
• 16:19
  And
• 16:19
  they
• 16:19
  may
• 16:19
  have
• 16:19
  restrictions
• 16:20
  on
• 16:20
  how
• 16:20
  many
• 16:20
  units
• 16:21
  you
• 16:21
  can
• 16:21
  apply
• 16:21
  it
• 16:21
  to.
• 16:22
  So
• 16:22
  just
• 16:22
  be
• 16:22
  careful
• 16:23
  that
• 16:23
  you
• 16:23
  don't
• 16:23
  violate
• 16:24
  anything
• 16:24
  that
• 16:24
  can
• 16:24
  get
• 16:24
  you
• 16:24
  in
• 16:25
  trouble.
• 16:25
  So
• 16:25
  make
• 16:25
  sure
• 16:25
  you
• 16:25
  understand
• 16:26
  the
• 16:26
  financing
• 16:27
  and
• 16:27
  the
• 16:27
  terms
• 16:27
  of
• 16:28
  any
• 16:28
  agreements
• 16:28
  that
• 16:28
  you
• 16:29
  sign.
• 16:29
  What
• 16:29
  a
• 16:29
  good
• 16:30
  point
• 16:30
  that
• 16:30
  is.
• 16:30
  Yeah,
• 16:31
  absolutely.
• 16:31
  I
• 16:32
  do
• 16:32
  know
• 16:32
  that
• 16:32
  with
• 16:32
  corporate
• 16:33
  housing,
• 16:33
  short
• 16:33
  term
• 16:33
  rentals,
• 16:34
  especially
• 16:34
  when
• 16:34
  you're
• 16:34
  doing
• 16:34
  it
• 16:35
  on
• 16:35
  multifamily,
• 16:35
  it
• 16:36
  is
• 16:36
  phenomenal
• 16:37
  how
• 16:37
  it
• 16:37
  can
• 16:37
  increase
• 16:38
  your
• 16:38
  bottom
• 16:38
  line
• 16:38
  profit.
• 16:39
  But
• 16:39
  like
• 16:39
  you
• 16:39
  said,
• 16:40
  especially
• 16:40
  short
• 16:40
  term
• 16:40
  rental,
• 16:41
  you're
• 16:41
  getting
• 16:41
  into
• 16:41
  the
• 16:41
  hospitality
• 16:42
  industry
• 16:42
  and
• 16:43
  it's
• 16:44
  some
• 16:44
  heavy
• 16:44
  load
• 16:44
  on
• 16:45
  operations.
• 16:46
  So
• 16:46
  definitely
• 16:47
  it
• 16:47
  can
• 16:47
  be
• 16:47
  a
• 16:47
  great
• 16:47
  strategy
• 16:48
  to
• 16:48
  add
• 16:48
  in
• 16:48
  and
• 16:49
  duly
• 16:49
  noted
• 16:50
  on
• 16:50
  the
• 16:50
  lending.
• 16:50
  That's
• 16:51
  a
• 16:51
  really
• 16:51
  good
• 16:51
  point.
• 16:51
  Yeah,
• 16:52
  but
• 16:52
  definitely
• 16:52
  a
• 16:52
  way
• 16:52
  to
• 16:52
  increase
• 16:53
  income
• 16:53
  and
• 16:53
  certainly
• 16:54
  something
• 16:54
  that's
• 16:54
  become
• 16:54
  more
• 16:55
  popular
• 16:55
  and
• 16:55
  especially
• 16:56
  if
• 16:56
  you
• 16:56
  have
• 16:56
  a
• 16:56
  desirable
• 16:57
  area
• 16:57
  that
• 16:57
  people
• 16:58
  want
• 16:58
  a
• 16:58
  vacation
• 16:58
  in,
• 16:58
  you
• 16:59
  know,
• 16:59
  the
• 16:59
  people
• 16:59
  with
• 16:59
  properties
• 17:00
  in
• 17:00
  areas
• 17:00
  like
• 17:00
  Myrtle
• 17:01
  beach
• 17:01
  or
• 17:01
  any
• 17:02
  of
• 17:02
  those
• 17:02
  beachfront
• 17:02
  areas.
• 17:03
  And
• 17:03
  that's
• 17:03
  probably
• 17:03
  a
• 17:03
  great
• 17:04
  spot.
• 17:04
  A
• 17:04
  lot
• 17:04
  of
• 17:04
  the
• 17:04
  mountain
• 17:05
  areas,
• 17:05
  especially
• 17:06
  as
• 17:06
  you
• 17:06
  kind
• 17:06
  of
• 17:06
  get
• 17:06
  into
• 17:06
  the
• 17:06
  holidays,
• 17:07
  it
• 17:07
  gets
• 17:07
  a
• 17:07
  little
• 17:07
  bit
• 17:07
  cooler.
• 17:08
  People
• 17:08
  like
• 17:08
  spending
• 17:08
  the
• 17:09
  holidays
• 17:09
  in
• 17:09
  the
• 17:09
  mountains.
• 17:10
  So
• 17:10
  those
• 17:10
  become
• 17:11
  destination
• 17:11
  spots.
• 17:11
  And
• 17:12
  sometimes
• 17:12
  you
• 17:12
  can
• 17:12
  find
• 17:13
  extra
• 17:13
  revenue
• 17:14
  by
• 17:14
  using
• 17:15
  some
• 17:15
  of
• 17:15
  those
• 17:15
  units
• 17:16
  in
• 17:16
  that
• 17:16
  manner.
• 17:16
  Yeah.
• 17:17
  And
• 17:17
  then
• 17:17
  adding
• 17:18
  the
• 17:18
  furnishings.
• 17:18
  I
• 17:19
  guess
• 17:19
  there,
• 17:19
  there
• 17:19
  are
• 17:19
  companies
• 17:20
  that
• 17:20
  will
• 17:20
  allow
• 17:20
  you
• 17:21
  to
• 17:21
  actually
• 17:21
  lease
• 17:22
  the
• 17:22
  furniture
• 17:22
  and
• 17:23
  like
• 17:23
  just
• 17:23
  bake
• 17:23
  it
• 17:23
  into
• 17:23
  the
• 17:24
  cash
• 17:24
  flow
• 17:24
  equation
• 17:24
  or
• 17:25
  buy
• 17:25
  the
• 17:25
  furniture
• 17:25
  outright.
• 17:26
  But
• 17:27
  actually
• 17:27
  having
• 17:27
  it
• 17:27
  furnished
• 17:28
  for
• 17:28
  the
• 17:28
  short
• 17:28
  term
• 17:28
  and
• 17:29
  the
• 17:29
  corporate
• 17:29
  housing
• 17:29
  I
• 17:30
  think
• 17:30
  is
• 17:30
  something
• 17:31
  just
• 17:31
  to
• 17:31
  note.
• 17:31
  That
• 17:31
  is,
• 17:32
  while
• 17:32
  it
• 17:32
  does
• 17:32
  increase
• 17:33
  your
• 17:33
  cash
• 17:33
  flow
• 17:33
  as
• 17:34
  far
• 17:34
  as
• 17:34
  what
• 17:34
  you're
• 17:34
  bringing
• 17:34
  in,
• 17:35
  that's
• 17:35
  where
• 17:35
  that
• 17:35
  operational
• 17:36
  expense
• 17:36
  comes
• 17:37
  in
• 17:37
  as
• 17:37
  well.
• 17:37
  Because
• 17:37
  you
• 17:38
  do
• 17:38
  have
• 17:38
  to
• 17:38
  typically
• 17:39
  have
• 17:39
  them
• 17:39
  furnished.
• 17:40
  So
• 17:40
  just
• 17:40
  something
• 17:40
  to
• 17:41
  consider.
• 17:41
  Well,
• 17:41
  the
• 17:42
  next
• 17:42
  one
• 17:42
  we
• 17:42
  have
• 17:43
  and
• 17:43
  it's
• 17:44
  going
• 17:44
  to
• 17:44
  be
• 17:44
  combination
• 17:45
  syndication
• 17:45
  and
• 17:45
  joint
• 17:46
  venture.
• 17:46
  So
• 17:46
  syndication
• 17:47
  typically
• 17:47
  is
• 17:47
  going
• 17:47
  to
• 17:47
  be
• 17:48
  for
• 17:48
  a
• 17:48
  larger
• 17:48
  deal
• 17:49
  and
• 17:49
  there's
• 17:49
  no
• 17:49
  specific
• 17:50
  size.
• 17:50
  But
• 17:50
  like
• 17:51
  for
• 17:51
  me,
• 17:51
  I
• 17:51
  would
• 17:51
  usually
• 17:52
  recommend
• 17:52
  people
• 17:52
  use
• 17:52
  them
• 17:53
  for
• 17:53
  deals
• 17:53
  that
• 17:53
  are
• 17:53
  $2
• 17:54
  million
• 17:54
  and
• 17:54
  above.
• 17:54
  It's
• 17:55
  smaller
• 17:55
  than
• 17:55
  that.
• 17:55
  It's
• 17:56
  probably
• 17:56
  more
• 17:56
  of
• 17:56
  a
• 17:56
  hassle
• 17:56
  than
• 17:57
  it's
• 17:57
  worth.
• 17:57
  And
• 17:57
  a
• 17:58
  joint
• 17:58
  venture
• 17:58
  can
• 17:59
  really
• 17:59
  be
• 17:59
  used
• 17:59
  for
• 17:59
  any
• 17:59
  deal.
• 18:00
  So
• 18:00
  it
• 18:00
  can
• 18:00
  be
• 18:00
  used
• 18:00
  for
• 18:01
  a
• 18:01
  single
• 18:01
  family
• 18:01
  home
• 18:02
  all
• 18:02
  the
• 18:02
  way
• 18:02
  up
• 18:02
  to
• 18:02
  a
• 18:03
  10,000
• 18:03
  unit
• 18:03
  apartment
• 18:04
  complex.
• 18:05
  But
• 18:05
  most
• 18:05
  likely
• 18:06
  you're
• 18:06
  probably
• 18:07
  not
• 18:07
  going
• 18:07
  to
• 18:07
  see
• 18:07
  it
• 18:07
  used
• 18:08
  as
• 18:08
  commonly
• 18:08
  for
• 18:08
  a
• 18:08
  very
• 18:09
  large
• 18:09
  deal
• 18:09
  because
• 18:09
  the
• 18:09
  JV
• 18:10
  strategy
• 18:10
  is
• 18:11
  based
• 18:11
  on
• 18:11
  usually
• 18:12
  one
• 18:12
  partner
• 18:12
  or
• 18:12
  multiple
• 18:13
  partners
• 18:13
  putting
• 18:13
  up
• 18:14
  the
• 18:14
  money
• 18:14
  and
• 18:14
  one
• 18:15
  or
• 18:15
  more
• 18:15
  putting
• 18:15
  in
• 18:16
  the
• 18:16
  sweat
• 18:16
  equity.
• 18:16
  But
• 18:16
  usually
• 18:17
  it's
• 18:17
  a
• 18:17
  small
• 18:17
  group,
• 18:17
  two
• 18:17
  to
• 18:18
  four
• 18:18
  partners.
• 18:19
  So
• 18:19
  for
• 18:19
  most
• 18:19
  people,
• 18:19
  they're
• 18:20
  probably
• 18:20
  not
• 18:20
  going
• 18:20
  to
• 18:20
  have
• 18:21
  enough
• 18:21
  capital
• 18:21
  to
• 18:21
  go
• 18:21
  out
• 18:21
  there
• 18:21
  and
• 18:22
  buy
• 18:22
  a
• 18:22
  the
• 18:22
  500
• 18:23
  unit
• 18:23
  apartment
• 18:23
  complexes
• 18:24
  at
• 18:24
  JV.
• 18:24
  Some
• 18:25
  will.
• 18:25
  Depends
• 18:25
  how
• 18:25
  good
• 18:25
  your
• 18:25
  connections
• 18:26
  are.
• 18:26
  Mine
• 18:26
  aren't
• 18:27
  that
• 18:27
  good
• 18:27
  yet.
• 18:27
  But
• 18:28
  if
• 18:28
  you
• 18:28
  have
• 18:28
  connections
• 18:28
  that
• 18:29
  have
• 18:29
  that
• 18:29
  type
• 18:29
  of
• 18:29
  money,
• 18:29
  then
• 18:30
  sure.
• 18:30
  But
• 18:30
  most
• 18:30
  people
• 18:31
  use
• 18:31
  that
• 18:31
  for
• 18:32
  smaller
• 18:32
  multifamily.
• 18:33
  So
• 18:33
  you
• 18:33
  might
• 18:33
  see
• 18:33
  it
• 18:33
  anywhere
• 18:34
  from
• 18:34
  like
• 18:34
  a
• 18:34
  duplex
• 18:34
  up
• 18:34
  to
• 18:35
  maybe
• 18:35
  a
• 18:35
  50
• 18:36
  unit
• 18:36
  deal
• 18:36
  on
• 18:36
  a
• 18:36
  typical
• 18:37
  case.
• 18:37
  Unless
• 18:37
  you
• 18:37
  happen
• 18:37
  to
• 18:38
  have
• 18:38
  really
• 18:38
  good
• 18:38
  connections
• 18:39
  with
• 18:39
  very
• 18:39
  deep
• 18:39
  pockets
• 18:40
  and
• 18:40
  then
• 18:40
  syndications
• 18:41
  usually
• 18:41
  for
• 18:41
  deals
• 18:42
  larger
• 18:42
  than
• 18:42
  that
• 18:42
  many
• 18:43
  times.
• 18:43
  Yep.
• 18:44
  One
• 18:44
  of
• 18:44
  my
• 18:44
  partners
• 18:44
  is
• 18:44
  actually
• 18:45
  doing
• 18:45
  both
• 18:45
  of
• 18:45
  these
• 18:46
  right
• 18:46
  now.
• 18:46
  Syndicating
• 18:47
  on
• 18:47
  the
• 18:47
  larger
• 18:47
  multifamily.
• 18:48
  Here's
• 18:49
  our
• 18:49
  disclaimer.
• 18:49
  Make
• 18:50
  sure
• 18:50
  you
• 18:50
  have
• 18:50
  a
• 18:50
  really
• 18:50
  good
• 18:51
  SEC
• 18:51
  attorney.
• 18:52
  If
• 18:52
  you're
• 18:52
  going
• 18:52
  to
• 18:52
  be
• 18:52
  taking
• 18:53
  money
• 18:53
  from
• 18:53
  people
• 18:53
  and
• 18:53
  raising
• 18:54
  capital,
• 18:54
  it's
• 18:54
  really
• 18:55
  important
• 18:55
  that
• 18:55
  you
• 18:55
  know
• 18:55
  what
• 18:56
  you're
• 18:56
  doing
• 18:56
  and
• 18:56
  that
• 18:57
  you
• 18:57
  are
• 18:57
  abiding
• 18:57
  by
• 18:58
  all
• 18:58
  regulation
• 18:58
  for
• 18:58
  that.
• 18:59
  And
• 18:59
  then
• 18:59
  he's
• 18:59
  doing
• 18:59
  a
• 18:59
  JV
• 19:00
  on
• 19:00
  purchasing
• 19:01
  a
• 19:01
  Gold's
• 19:02
  Gym
• 19:02
  right
• 19:02
  now.
• 19:03
  So
• 19:03
  there's
• 19:03
  only
• 19:03
  going
• 19:04
  to
• 19:04
  be,
• 19:04
  I
• 19:04
  think,
• 19:04
  four
• 19:04
  of
• 19:04
  them
• 19:05
  in
• 19:05
  that
• 19:05
  JV
• 19:05
  partnership.
• 19:06
  But
• 19:06
  it's
• 19:06
  a
• 19:06
  very
• 19:07
  neat,
• 19:07
  it's
• 19:08
  very
• 19:08
  neat
• 19:08
  to
• 19:08
  see
• 19:08
  like
• 19:09
  that.
• 19:09
  It's
• 19:09
  almost
• 19:09
  like
• 19:10
  you
• 19:10
  said,
• 19:10
  if
• 19:10
  you're
• 19:10
  doing
• 19:11
  it
• 19:11
  less
• 19:11
  than
• 19:11
  2
• 19:11
  million,
• 19:12
  it
• 19:12
  kind
• 19:12
  of
• 19:12
  doesn't
• 19:13
  make
• 19:13
  sense
• 19:13
  to
• 19:14
  have
• 19:14
  to
• 19:14
  pay
• 19:15
  that
• 19:15
  amount
• 19:15
  for
• 19:16
  the
• 19:16
  student
• 19:16
  syndication
• 19:16
  paperwork.
• 19:17
  Even.
• 19:17
  So,
• 19:18
  like
• 19:18
  putting
• 19:18
  together
• 19:18
  the
• 19:19
  syndication,
• 19:19
  you
• 19:19
  know,
• 19:20
  it
• 19:20
  costs
• 19:20
  money.
• 19:20
  The,
• 19:21
  the
• 19:21
  legalities
• 19:21
  of
• 19:22
  putting
• 19:22
  the
• 19:22
  paperwork
• 19:22
  together.
• 19:23
  So
• 19:23
  it's
• 19:23
  just
• 19:23
  something
• 19:24
  to
• 19:24
  consider.
• 19:24
  If
• 19:24
  it's
• 19:24
  a
• 19:24
  deal
• 19:24
  that's
• 19:25
  a
• 19:25
  little
• 19:25
  bit
• 19:25
  smaller,
• 19:26
  maybe
• 19:26
  a
• 19:26
  JV
• 19:26
  actually
• 19:27
  makes
• 19:27
  more
• 19:27
  sense
• 19:27
  for
• 19:27
  that
• 19:28
  kind
• 19:28
  of
• 19:28
  deal,
• 19:28
  especially
• 19:29
  if
• 19:29
  it's
• 19:29
  something
• 19:29
  raised
• 19:30
  from,
• 19:30
  you
• 19:30
  know,
• 19:30
  from
• 19:30
  people
• 19:31
  you
• 19:31
  already
• 19:31
  know.
• 19:32
  And
• 19:32
  for
• 19:32
  somebody
• 19:32
  who's
• 19:33
  taken
• 19:33
  from
• 19:33
  somebody
• 19:33
  who's
• 19:34
  syndicated
• 19:34
  many
• 19:35
  deals,
• 19:35
  syndications
• 19:36
  can
• 19:36
  be
• 19:36
  a
• 19:36
  pain
• 19:37
  in
• 19:37
  the
• 19:37
  butt.
• 19:37
  Sometimes
• 19:37
  there
• 19:38
  are
• 19:38
  benefits
• 19:38
  to
• 19:38
  them,
• 19:39
  but
• 19:39
  there's
• 19:39
  a
• 19:39
  lot.
• 19:40
  There's
• 19:40
  typically
• 19:40
  a
• 19:40
  lot
• 19:40
  of
• 19:41
  partners
• 19:41
  involved.
• 19:42
  So
• 19:42
  if
• 19:42
  you
• 19:42
  can
• 19:42
  have
• 19:43
  a
• 19:43
  scenario
• 19:43
  that
• 19:43
  affords
• 19:43
  you
• 19:44
  the
• 19:44
  option
• 19:45
  of
• 19:45
  doing
• 19:45
  a
• 19:45
  jv,
• 19:45
  you
• 19:46
  know,
• 19:46
  you
• 19:46
  have
• 19:46
  a
• 19:46
  lot
• 19:46
  less
• 19:46
  partners,
• 19:47
  which
• 19:47
  means
• 19:47
  a
• 19:47
  lot
• 19:47
  less
• 19:47
  opinion.
• 19:48
  So
• 19:48
  sometimes
• 19:49
  that
• 19:49
  can
• 19:49
  be
• 19:49
  a
• 19:49
  good
• 19:49
  thing.
• 19:49
  So
• 19:50
  keep
• 19:50
  that
• 19:50
  in
• 19:50
  mind.
• 19:50
  Yep,
• 19:51
  absolutely.
• 19:52
  Okay,
• 19:52
  so
• 19:52
  another
• 19:52
  one
• 19:52
  we'll
• 19:53
  talk
• 19:53
  about.
• 19:53
  And
• 19:54
  this
• 19:54
  could
• 19:54
  also
• 19:54
  apply
• 19:54
  to
• 19:55
  single
• 19:55
  family,
• 19:55
  but
• 19:55
  specifically
• 19:56
  here
• 19:56
  for
• 19:56
  multifamily
• 19:57
  and
• 19:57
  commercial
• 19:57
  assets.
• 19:58
  And
• 19:58
  truthfully,
• 19:59
  almost
• 19:59
  my
• 19:59
  exclusive
• 20:00
  focus
• 20:00
  at
• 20:00
  this
• 20:00
  point,
• 20:01
  distressed
• 20:01
  properties.
• 20:02
  So
• 20:03
  right
• 20:03
  now,
• 20:03
  as
• 20:03
  we
• 20:03
  record
• 20:04
  this,
• 20:04
  It's
• 20:04
  November
• 20:04
  of
• 20:05
  2024,
• 20:06
  there's
• 20:06
  a
• 20:06
  lot
• 20:06
  of
• 20:06
  different
• 20:07
  opinions
• 20:07
  about
• 20:07
  where
• 20:08
  the,
• 20:08
  the
• 20:08
  market
• 20:09
  is
• 20:09
  and
• 20:09
  where
• 20:09
  it's
• 20:09
  heading.
• 20:10
  Some
• 20:10
  good,
• 20:10
  some
• 20:11
  bad,
• 20:11
  some
• 20:11
  ugly.
• 20:12
  And
• 20:12
  any
• 20:13
  of
• 20:13
  those
• 20:13
  scenarios
• 20:13
  are
• 20:13
  going
• 20:14
  to
• 20:14
  have
• 20:14
  at
• 20:14
  least
• 20:14
  a
• 20:14
  couple
• 20:14
  of
• 20:14
  distress
• 20:15
  deals,
• 20:15
  because
• 20:15
  even
• 20:15
  in
• 20:15
  the
• 20:16
  best
• 20:16
  of
• 20:16
  conditions,
• 20:16
  there's
• 20:17
  always
• 20:17
  going
• 20:17
  to
• 20:17
  be
• 20:17
  some
• 20:17
  deals
• 20:17
  that
• 20:18
  don't
• 20:18
  quite
• 20:18
  go
• 20:18
  as
• 20:18
  expected.
• 20:19
  So,
• 20:19
  Erica,
• 20:20
  what
• 20:20
  is
• 20:20
  a
• 20:20
  distressed
• 20:21
  deal?
• 20:21
  Why
• 20:21
  don't
• 20:21
  we
• 20:21
  start
• 20:21
  with
• 20:21
  that
• 20:22
  so
• 20:22
  people
• 20:22
  understand?
• 20:23
  Yeah,
• 20:23
  so,
• 20:24
  and
• 20:24
  I
• 20:24
  think
• 20:24
  this
• 20:24
  is
• 20:25
  twofold.
• 20:25
  I
• 20:25
  think
• 20:26
  that
• 20:26
  you
• 20:26
  have
• 20:26
  distressed
• 20:27
  sellers
• 20:28
  who
• 20:28
  are
• 20:28
  just
• 20:29
  personally
• 20:29
  in
• 20:29
  a
• 20:29
  financial
• 20:30
  position
• 20:30
  where
• 20:30
  they
• 20:31
  need
• 20:31
  to
• 20:31
  pull
• 20:31
  the
• 20:31
  money
• 20:31
  out
• 20:32
  and
• 20:32
  the
• 20:32
  timing
• 20:32
  didn't
• 20:33
  align
• 20:33
  like
• 20:33
  they
• 20:33
  thought
• 20:33
  it
• 20:34
  would
• 20:34
  for
• 20:34
  them.
• 20:34
  And
• 20:35
  then
• 20:35
  you
• 20:35
  have
• 20:35
  like,
• 20:35
  actual
• 20:36
  distressed
• 20:36
  properties
• 20:37
  that
• 20:37
  are
• 20:38
  dilapidated,
• 20:39
  you
• 20:39
  know,
• 20:39
  needing
• 20:40
  a
• 20:40
  lot
• 20:40
  of
• 20:40
  repair.
• 20:41
  And
• 20:41
  so
• 20:41
  for
• 20:42
  me,
• 20:42
  right
• 20:42
  now,
• 20:42
  I
• 20:42
  have
• 20:43
  a
• 20:43
  listing
• 20:43
  that
• 20:44
  she's
• 20:44
  five
• 20:44
  months
• 20:44
  behind
• 20:45
  on
• 20:45
  the
• 20:45
  mortgage.
• 20:46
  We
• 20:46
  stopped
• 20:46
  the
• 20:47
  foreclosure,
• 20:48
  and
• 20:48
  we're
• 20:48
  actually
• 20:49
  going
• 20:49
  into
• 20:49
  short
• 20:49
  sale
• 20:50
  status.
• 20:51
  So
• 20:51
  like,
• 20:51
  it's,
• 20:52
  we've
• 20:52
  stacked
• 20:52
  some
• 20:53
  distress
• 20:53
  things
• 20:54
  on
• 20:54
  that
• 20:54
  one.
• 20:54
  So
• 20:55
  I
• 20:55
  think
• 20:55
  that
• 20:55
  you'll
• 20:55
  find,
• 20:55
  like
• 20:56
  typically
• 20:56
  distressed
• 20:57
  situations
• 20:58
  happen
• 20:58
  from
• 20:58
  the
• 20:59
  four
• 20:59
  Ds
• 20:59
  as
• 20:59
  we
• 21:00
  call
• 21:00
  it
• 21:00
  in
• 21:00
  real
• 21:00
  estate
• 21:00
  investing,
• 21:01
  death,
• 21:01
  drugs,
• 21:02
  divorce
• 21:02
  and
• 21:02
  debt.
• 21:02
  And
• 21:03
  those
• 21:03
  situations
• 21:03
  happen
• 21:04
  no
• 21:04
  matter
• 21:04
  what
• 21:04
  the
• 21:05
  economy
• 21:05
  is
• 21:05
  doing.
• 21:06
  So
• 21:06
  I
• 21:06
  think
• 21:06
  it's
• 21:06
  really
• 21:06
  important
• 21:07
  to
• 21:07
  note
• 21:07
  those
• 21:07
  opportunities
• 21:08
  are
• 21:08
  always
• 21:09
  available.
• 21:09
  In
• 21:10
  certain
• 21:10
  economic
• 21:10
  shifts,
• 21:11
  they
• 21:11
  become
• 21:11
  more
• 21:12
  available
• 21:12
  than
• 21:12
  in
• 21:12
  others.
• 21:13
  So
• 21:13
  right
• 21:14
  now
• 21:14
  I'm
• 21:14
  seeing
• 21:14
  not
• 21:15
  short
• 21:15
  sailing
• 21:16
  yet,
• 21:17
  but
• 21:17
  I
• 21:17
  am
• 21:17
  seeing
• 21:18
  several,
• 21:18
  like
• 21:18
  pre
• 21:19
  foreclosures
• 21:19
  that
• 21:19
  are
• 21:20
  popping
• 21:20
  up.
• 21:20
  So
• 21:21
  been
• 21:21
  reaching
• 21:21
  out
• 21:22
  to
• 21:22
  those
• 21:22
  people,
• 21:22
  seeing
• 21:22
  how
• 21:23
  I
• 21:23
  can
• 21:23
  help
• 21:23
  them.
• 21:23
  And
• 21:23
  then
• 21:24
  the
• 21:24
  distressed
• 21:24
  property,
• 21:25
  you
• 21:25
  know,
• 21:25
  like
• 21:25
  if
• 21:25
  you
• 21:25
  see,
• 21:26
  last
• 21:26
  year
• 21:27
  I
• 21:27
  wholesaled
• 21:27
  my
• 21:27
  first
• 21:28
  property,
• 21:28
  made
• 21:28
  $60,000
• 21:29
  off
• 21:29
  of
• 21:30
  it.
• 21:30
  It
• 21:30
  was
• 21:30
  a
• 21:30
  property
• 21:30
  that
• 21:30
  was
• 21:31
  on
• 21:31
  my
• 21:31
  street.
• 21:32
  I
• 21:32
  just
• 21:32
  noticed
• 21:32
  that
• 21:32
  the
• 21:33
  grass
• 21:33
  was
• 21:33
  overgrown,
• 21:34
  the
• 21:34
  mail
• 21:34
  was
• 21:35
  overflowing
• 21:35
  out
• 21:36
  of
• 21:36
  the
• 21:36
  mailbox,
• 21:37
  and
• 21:37
  the
• 21:37
  property
• 21:38
  looked
• 21:38
  like
• 21:38
  it
• 21:38
  was
• 21:38
  kind
• 21:39
  of
• 21:39
  falling
• 21:39
  apart.
• 21:40
  And
• 21:40
  so
• 21:40
  I
• 21:40
  got
• 21:40
  the
• 21:41
  contact
• 21:41
  information
• 21:42
  for
• 21:42
  that
• 21:42
  person
• 21:42
  from
• 21:42
  the
• 21:43
  neighbor
• 21:43
  and
• 21:43
  ended
• 21:44
  up
• 21:44
  closing
• 21:44
  that
• 21:44
  within
• 21:45
  a
• 21:45
  month.
• 21:46
  So
• 21:46
  dilapidated
• 21:47
  properties,
• 21:47
  you'll
• 21:48
  see
• 21:48
  those
• 21:48
  often
• 21:48
  as
• 21:48
  you're
• 21:49
  driving
• 21:49
  by.
• 21:49
  Definitely
• 21:50
  make
• 21:50
  note
• 21:50
  of
• 21:50
  those
• 21:51
  addresses,
• 21:51
  skip
• 21:52
  trace,
• 21:52
  get
• 21:52
  owner
• 21:52
  information
• 21:53
  or
• 21:53
  talk
• 21:53
  to
• 21:53
  neighbors.
• 21:54
  And
• 21:54
  then
• 21:55
  right
• 21:55
  now
• 21:55
  I'm
• 21:55
  forming
• 21:56
  relationships
• 21:57
  with
• 21:57
  the,
• 21:57
  you
• 21:57
  know,
• 21:58
  the
• 21:58
  bank
• 21:58
  managers,
• 21:59
  especially
• 21:59
  a
• 22:00
  small
• 22:00
  community
• 22:00
  banks,
• 22:01
  starting
• 22:01
  those
• 22:02
  relationships,
• 22:02
  making
• 22:02
  sure
• 22:03
  they
• 22:03
  know
• 22:03
  like
• 22:03
  I'm,
• 22:03
  I'm
• 22:04
  well
• 22:04
  versed
• 22:04
  in
• 22:05
  helping
• 22:05
  these
• 22:05
  people.
• 22:06
  And
• 22:06
  please
• 22:06
  let
• 22:07
  me
• 22:07
  know
• 22:07
  anything
• 22:07
  that,
• 22:08
  you
• 22:08
  know,
• 22:08
  comes
• 22:08
  through
• 22:08
  the
• 22:08
  pipeline.
• 22:09
  So
• 22:09
  I
• 22:10
  think
• 22:10
  right
• 22:10
  now
• 22:10
  is
• 22:10
  a
• 22:10
  really
• 22:11
  good
• 22:11
  time
• 22:11
  to
• 22:11
  position
• 22:11
  ourselves
• 22:12
  to
• 22:12
  help
• 22:12
  a
• 22:12
  lot
• 22:13
  of
• 22:13
  people
• 22:13
  that
• 22:13
  are
• 22:13
  in
• 22:13
  distressed
• 22:14
  situations.
• 22:14
  Yep.
• 22:15
  And
• 22:15
  keep
• 22:15
  in
• 22:15
  mind
• 22:16
  on
• 22:16
  the
• 22:16
  buy
• 22:16
  side,
• 22:16
  the
• 22:16
  benefit
• 22:17
  to
• 22:17
  the
• 22:17
  stress
• 22:17
  is
• 22:17
  that
• 22:18
  often
• 22:18
  times
• 22:18
  you're
• 22:19
  getting
• 22:19
  it
• 22:19
  at
• 22:19
  a
• 22:19
  very
• 22:20
  favorable
• 22:20
  price.
• 22:20
  You
• 22:21
  know,
• 22:21
  for
• 22:21
  me,
• 22:21
  I
• 22:21
  always
• 22:22
  say
• 22:22
  the
• 22:22
  best
• 22:22
  defense
• 22:23
  with
• 22:23
  any
• 22:24
  property
• 22:24
  is
• 22:25
  buying
• 22:25
  it
• 22:25
  at
• 22:25
  a
• 22:25
  good
• 22:25
  cost
• 22:26
  basis.
• 22:26
  Because
• 22:26
  when
• 22:27
  you
• 22:27
  can
• 22:27
  lower
• 22:27
  the
• 22:27
  amount
• 22:28
  of
• 22:28
  risk
• 22:28
  you
• 22:28
  have
• 22:28
  going
• 22:29
  in,
• 22:29
  I
• 22:30
  don't
• 22:30
  want
• 22:30
  to
• 22:30
  say
• 22:30
  that
• 22:30
  you
• 22:31
  buy
• 22:31
  yourself
• 22:31
  the
• 22:32
  ability
• 22:32
  to
• 22:32
  make
• 22:32
  some
• 22:32
  mistakes,
• 22:33
  but
• 22:33
  the
• 22:33
  reality
• 22:34
  is
• 22:34
  in
• 22:34
  any
• 22:34
  deal,
• 22:35
  it's
• 22:35
  always
• 22:35
  going
• 22:35
  to
• 22:35
  be
• 22:35
  things
• 22:35
  that
• 22:36
  don't
• 22:36
  go
• 22:36
  quite
• 22:36
  according
• 22:37
  to
• 22:37
  plan.
• 22:37
  So
• 22:38
  by
• 22:38
  having
• 22:38
  that
• 22:39
  lower
• 22:39
  basis,
• 22:39
  it
• 22:39
  gives
• 22:40
  you
• 22:40
  more
• 22:40
  downside
• 22:40
  protection.
• 22:41
  So
• 22:41
  that
• 22:41
  way
• 22:41
  you're
• 22:41
  something
• 22:42
  doesn't
• 22:42
  go
• 22:42
  100%
• 22:43
  according
• 22:43
  to
• 22:43
  plan,
• 22:44
  you
• 22:44
  know,
• 22:44
  you
• 22:44
  still
• 22:44
  have
• 22:44
  some
• 22:45
  room
• 22:45
  there
• 22:45
  and
• 22:45
  the
• 22:45
  deal
• 22:45
  can
• 22:46
  still
• 22:46
  perform.
• 22:46
  Want
• 22:46
  to
• 22:46
  make
• 22:47
  a
• 22:47
  lot
• 22:47
  of
• 22:47
  money
• 22:47
  for
• 22:47
  everybody
• 22:48
  on
• 22:48
  the
• 22:48
  back
• 22:48
  end.
• 22:48
  I
• 22:49
  agree.
• 22:49
  That's
• 22:49
  the
• 22:49
  number
• 22:50
  one
• 22:50
  thing,
• 22:50
  right?
• 22:50
  Buy
• 22:51
  it.
• 22:51
  Right.
• 22:51
  If
• 22:51
  you
• 22:52
  buy
• 22:52
  it
• 22:52
  right,
• 22:52
  you
• 22:52
  are
• 22:53
  mitigating
• 22:53
  so
• 22:53
  much
• 22:53
  of
• 22:54
  your
• 22:54
  risk
• 22:54
  buying
• 22:54
  it.
• 22:55
  Right.
• 22:55
  And
• 22:55
  Then
• 22:55
  also
• 22:56
  like
• 22:56
  buying
• 22:56
  something
• 22:57
  if
• 22:57
  it's
• 22:57
  multifamily
• 22:58
  that
• 22:58
  has
• 22:59
  that
• 22:59
  rent
• 22:59
  bump
• 22:59
  available
• 23:00
  per
• 23:00
  door.
• 23:01
  Those
• 23:01
  seem
• 23:01
  to
• 23:01
  be
• 23:01
  the
• 23:01
  two
• 23:02
  metrics
• 23:02
  that
• 23:03
  I
• 23:03
  find
• 23:03
  that
• 23:03
  are
• 23:03
  like
• 23:03
  the
• 23:04
  best
• 23:04
  way
• 23:04
  to
• 23:04
  mitigate
• 23:04
  your
• 23:05
  risk
• 23:05
  going
• 23:05
  in.
• 23:05
  Yep.
• 23:06
  Okay,
• 23:06
  so
• 23:06
  the
• 23:06
  next
• 23:06
  thing
• 23:07
  we
• 23:07
  have
• 23:07
  and,
• 23:08
  and
• 23:08
  this
• 23:08
  is
• 23:08
  probably
• 23:08
  a
• 23:08
  more
• 23:09
  advanced
• 23:09
  and
• 23:09
  probably
• 23:09
  the
• 23:10
  most
• 23:10
  advanced
• 23:10
  strategy
• 23:11
  I
• 23:11
  would
• 23:11
  say
• 23:11
  on
• 23:11
  this
• 23:11
  list
• 23:11
  list
• 23:12
  that
• 23:12
  we're
• 23:12
  giving
• 23:12
  you,
• 23:12
  but,
• 23:13
  but
• 23:13
  nonetheless
• 23:13
  a
• 23:14
  very
• 23:14
  lucrative
• 23:14
  one
• 23:14
  if
• 23:14
  you
• 23:14
  do
• 23:15
  it
• 23:15
  right
• 23:15
  is
• 23:15
  development
• 23:16
  or
• 23:16
  redevelopment.
• 23:17
  So
• 23:17
  what
• 23:17
  are
• 23:17
  you
• 23:17
  doing
• 23:17
  there?
• 23:18
  You're
• 23:18
  taking
• 23:18
  land,
• 23:19
  you're
• 23:19
  taking
• 23:19
  an
• 23:20
  existing
• 23:20
  building
• 23:21
  and
• 23:21
  you're
• 23:21
  developing
• 23:22
  or
• 23:22
  redeveloping
• 23:22
  the
• 23:22
  property.
• 23:23
  So
• 23:23
  right
• 23:24
  now,
• 23:24
  you
• 23:24
  know,
• 23:24
  we
• 23:24
  have
• 23:25
  a
• 23:25
  lot
• 23:25
  of
• 23:25
  properties
• 23:25
  in
• 23:26
  our
• 23:26
  country
• 23:26
  and,
• 23:27
  and
• 23:27
  in
• 23:27
  many
• 23:28
  areas
• 23:28
  that
• 23:28
  are
• 23:29
  no
• 23:29
  longer
• 23:30
  functional
• 23:30
  with
• 23:30
  the
• 23:30
  purpose
• 23:31
  they
• 23:31
  were
• 23:31
  initially
• 23:31
  built
• 23:32
  for.
• 23:32
  And
• 23:33
  you
• 23:33
  know,
• 23:33
  I
• 23:34
  guess
• 23:34
  that's
• 23:34
  become
• 23:34
  kind
• 23:34
  of
• 23:34
  a
• 23:35
  talking
• 23:35
  point
• 23:35
  through
• 23:35
  many
• 23:35
  areas.
• 23:36
  Right.
• 23:36
  What
• 23:36
  do
• 23:36
  we
• 23:36
  do
• 23:36
  with
• 23:36
  these
• 23:37
  properties?
• 23:37
  So
• 23:37
  for
• 23:38
  those
• 23:38
  who
• 23:38
  are
• 23:39
  very
• 23:39
  bold
• 23:39
  and
• 23:39
  they're
• 23:40
  well
• 23:40
  capitalized
• 23:40
  and
• 23:40
  they
• 23:41
  have
• 23:41
  the
• 23:41
  expertise,
• 23:41
  they're
• 23:42
  going
• 23:42
  to
• 23:42
  go
• 23:42
  out
• 23:42
  there
• 23:42
  and
• 23:42
  take
• 23:43
  these
• 23:43
  properties
• 23:43
  and
• 23:43
  they're
• 23:43
  going
• 23:44
  to
• 23:44
  redevelop
• 23:44
  them
• 23:45
  to
• 23:45
  something
• 23:45
  that's
• 23:45
  more
• 23:46
  useful
• 23:46
  for
• 23:46
  the
• 23:47
  current
• 23:47
  time.
• 23:47
  A
• 23:47
  common
• 23:48
  talk,
• 23:48
  although
• 23:48
  this
• 23:49
  one's
• 23:49
  probably
• 23:49
  going
• 23:49
  to
• 23:49
  be
• 23:49
  a
• 23:49
  lot
• 23:50
  harder
• 23:50
  to
• 23:50
  execute
• 23:51
  than
• 23:51
  many
• 23:51
  people
• 23:51
  are
• 23:52
  thinking,
• 23:52
  is
• 23:53
  some
• 23:53
  of
• 23:53
  these
• 23:53
  office
• 23:54
  buildings
• 23:54
  in
• 23:54
  urban
• 23:55
  areas
• 23:55
  that
• 23:55
  are
• 23:55
  no
• 23:56
  longer
• 23:56
  desirable
• 23:57
  may
• 23:57
  be
• 23:58
  trying
• 23:58
  to
• 23:58
  find
• 23:58
  a
• 23:58
  way
• 23:58
  to
• 23:59
  convert
• 23:59
  them
• 23:59
  to
• 23:59
  some
• 23:59
  type
• 23:59
  of
• 24:00
  housing.
• 24:00
  And
• 24:01
  you
• 24:01
  know,
• 24:01
  believe
• 24:01
  it
• 24:01
  or
• 24:01
  not,
• 24:02
  there
• 24:02
  are
• 24:02
  certain
• 24:02
  property
• 24:03
  types
• 24:03
  that
• 24:03
  do
• 24:03
  convert
• 24:04
  a
• 24:04
  lot
• 24:04
  easier
• 24:04
  than
• 24:04
  others.
• 24:05
  Office
• 24:05
  and
• 24:05
  multifamily
• 24:06
  isn't
• 24:06
  quite
• 24:07
  so
• 24:07
  cut
• 24:07
  and
• 24:07
  dry
• 24:07
  because
• 24:08
  the,
• 24:08
  the
• 24:09
  layouts
• 24:09
  are
• 24:09
  so
• 24:10
  different
• 24:10
  that
• 24:10
  you'd
• 24:11
  almost
• 24:11
  have
• 24:11
  to
• 24:11
  redesign
• 24:12
  significant
• 24:12
  portions
• 24:13
  of
• 24:13
  the
• 24:13
  buildings.
• 24:13
  But
• 24:14
  for
• 24:14
  those
• 24:14
  who
• 24:14
  come
• 24:14
  up
• 24:15
  with
• 24:15
  creative
• 24:15
  solutions,
• 24:16
  there's
• 24:16
  going
• 24:16
  to
• 24:16
  be
• 24:16
  opportunities
• 24:17
  there.
• 24:17
  Yeah,
• 24:18
  absolutely.
• 24:18
  I
• 24:19
  actually
• 24:19
  have
• 24:19
  a
• 24:20
  property
• 24:20
  right
• 24:20
  now
• 24:20
  that's
• 24:20
  a
• 24:21
  20
• 24:21
  unit
• 24:21
  that
• 24:22
  my
• 24:22
  investor
• 24:22
  is
• 24:22
  underwriting.
• 24:23
  And
• 24:23
  based
• 24:23
  on
• 24:24
  the
• 24:24
  location
• 24:25
  I
• 24:25
  told
• 24:25
  him
• 24:25
  like
• 24:26
  one
• 24:26
  of
• 24:26
  the
• 24:26
  strategies
• 24:27
  for
• 24:27
  this
• 24:27
  one
• 24:27
  is
• 24:28
  actually
• 24:28
  that
• 24:28
  the
• 24:28
  property
• 24:29
  currently
• 24:29
  stands
• 24:29
  as
• 24:29
  it
• 24:29
  sits,
• 24:30
  is
• 24:30
  probably
• 24:30
  like
• 24:30
  a,
• 24:31
  like
• 24:31
  a
• 24:31
  class
• 24:31
  C
• 24:32
  plus,
• 24:32
  like
• 24:32
  B,
• 24:33
  B
• 24:33
  asset.
• 24:34
  However,
• 24:34
  it's
• 24:34
  in
• 24:34
  a
• 24:35
  location
• 24:35
  that
• 24:35
  with
• 24:36
  a,
• 24:36
  you
• 24:36
  know,
• 24:36
  like
• 24:36
  a
• 24:37
  five
• 24:37
  year
• 24:37
  hold,
• 24:38
  really
• 24:38
  like
• 24:38
  ten
• 24:38
  year
• 24:39
  hold,
• 24:39
  it
• 24:39
  makes
• 24:40
  sense.
• 24:40
  After
• 24:41
  you
• 24:41
  have
• 24:42
  depreciated
• 24:42
  the
• 24:42
  asset,
• 24:43
  you've
• 24:43
  gotten
• 24:43
  your
• 24:43
  cash
• 24:44
  flow
• 24:44
  out,
• 24:44
  you
• 24:44
  value
• 24:44
  added,
• 24:45
  you
• 24:45
  did
• 24:45
  all
• 24:45
  these
• 24:45
  things,
• 24:46
  it
• 24:46
  actually
• 24:46
  makes
• 24:46
  sense
• 24:46
  to
• 24:47
  tear
• 24:47
  it
• 24:47
  down
• 24:47
  and
• 24:47
  build
• 24:48
  a
• 24:48
  class
• 24:48
  A
• 24:48
  asset
• 24:49
  on
• 24:49
  that
• 24:49
  land
• 24:49
  because
• 24:50
  that
• 24:50
  land
• 24:50
  is
• 24:50
  going
• 24:50
  to
• 24:51
  appreciate
• 24:51
  so
• 24:51
  much.
• 24:52
  So
• 24:52
  I
• 24:52
  thought
• 24:52
  it
• 24:52
  was
• 24:52
  really
• 24:53
  interesting
• 24:53
  that
• 24:54
  one
• 24:54
  of
• 24:54
  the,
• 24:54
  some
• 24:54
  of
• 24:55
  these
• 24:55
  opportunities
• 24:55
  Are
• 24:55
  like
• 24:56
  currently
• 24:57
  multifamily
• 24:57
  is
• 24:58
  sitting
• 24:58
  there,
• 24:58
  but
• 24:58
  it's
• 24:59
  older,
• 24:59
  it's
• 24:59
  like
• 25:00
  1960s,
• 25:01
  1970s.
• 25:01
  And
• 25:02
  after
• 25:03
  a
• 25:03
  certain
• 25:03
  amount
• 25:03
  of
• 25:03
  time
• 25:04
  with
• 25:04
  the
• 25:04
  land
• 25:04
  value,
• 25:04
  it
• 25:05
  will
• 25:05
  begin
• 25:05
  to
• 25:05
  make
• 25:05
  sense
• 25:06
  to
• 25:06
  actually
• 25:06
  tear
• 25:06
  it
• 25:06
  down
• 25:06
  and
• 25:06
  just
• 25:07
  build
• 25:07
  class
• 25:07
  A
• 25:07
  multifamily
• 25:08
  again.
• 25:09
  So
• 25:09
  that's
• 25:09
  something
• 25:10
  that's
• 25:10
  unique.
• 25:10
  But
• 25:11
  one
• 25:11
  thing
• 25:11
  that's
• 25:11
  also
• 25:12
  really
• 25:12
  important
• 25:12
  to
• 25:13
  consider
• 25:13
  is
• 25:13
  that
• 25:14
  with
• 25:14
  development
• 25:14
  anyway,
• 25:15
  I
• 25:15
  don't
• 25:15
  know
• 25:15
  so
• 25:15
  much
• 25:15
  redevelopment,
• 25:16
  but
• 25:16
  development
• 25:16
  for
• 25:17
  sure.
• 25:17
  Many
• 25:17
  cities
• 25:18
  and
• 25:18
  counties
• 25:18
  offer
• 25:19
  tax
• 25:19
  benefits
• 25:20
  because
• 25:20
  they
• 25:20
  want
• 25:20
  to
• 25:21
  encourage
• 25:21
  people
• 25:21
  to
• 25:21
  go
• 25:21
  in
• 25:22
  there
• 25:22
  and
• 25:22
  build.
• 25:22
  They
• 25:22
  need
• 25:23
  housing,
• 25:23
  they
• 25:23
  need
• 25:24
  different
• 25:24
  types
• 25:24
  of
• 25:24
  properties.
• 25:25
  And
• 25:26
  for
• 25:26
  somebody
• 25:26
  who's
• 25:27
  going
• 25:27
  to
• 25:27
  go
• 25:27
  out
• 25:27
  there
• 25:27
  and
• 25:27
  take
• 25:28
  that
• 25:28
  risk
• 25:28
  at
• 25:29
  that
• 25:29
  time,
• 25:29
  there
• 25:29
  can
• 25:30
  be
• 25:30
  good
• 25:30
  tax
• 25:31
  incentives.
• 25:31
  Many
• 25:32
  counties
• 25:32
  and
• 25:32
  cities
• 25:33
  offer
• 25:33
  benefits
• 25:33
  on
• 25:34
  the
• 25:34
  property
• 25:34
  tax
• 25:34
  side.
• 25:35
  Some
• 25:35
  also
• 25:36
  offer
• 25:36
  income
• 25:36
  tax.
• 25:37
  So
• 25:37
  those
• 25:38
  can
• 25:38
  be
• 25:38
  benefits
• 25:38
  that
• 25:39
  people
• 25:39
  like
• 25:39
  and
• 25:39
  they
• 25:39
  utilize
• 25:40
  and
• 25:40
  they
• 25:40
  really
• 25:41
  juice
• 25:41
  the
• 25:41
  returns.
• 25:41
  Because
• 25:42
  many
• 25:42
  times
• 25:42
  as
• 25:43
  real
• 25:43
  estate
• 25:43
  investors,
• 25:44
  I
• 25:44
  know
• 25:44
  myself
• 25:45
  as
• 25:45
  a
• 25:45
  syndicator.
• 25:46
  So
• 25:46
  for
• 25:46
  development
• 25:47
  there's
• 25:47
  definitely
• 25:48
  many
• 25:48
  tax
• 25:48
  incentives
• 25:49
  that
• 25:49
  can
• 25:49
  also
• 25:49
  be
• 25:49
  a
• 25:49
  lesson
• 25:50
  that
• 25:50
  a
• 25:50
  lot
• 25:50
  of
• 25:50
  people
• 25:50
  like
• 25:51
  to
• 25:51
  use.
• 25:51
  Because
• 25:52
  as
• 25:52
  real
• 25:52
  estate
• 25:52
  investors,
• 25:53
  many
• 25:53
  times
• 25:53
  we
• 25:53
  look
• 25:54
  at
• 25:54
  returns
• 25:54
  and
• 25:55
  we
• 25:55
  really
• 25:55
  stop
• 25:55
  at
• 25:55
  the
• 25:55
  pre
• 25:56
  tax
• 25:56
  level.
• 25:56
  And
• 25:56
  the
• 25:56
  reason
• 25:57
  we
• 25:57
  do
• 25:57
  that
• 25:57
  is
• 25:57
  because
• 25:57
  it's
• 25:58
  simpler.
• 25:58
  And
• 25:58
  many
• 25:58
  of
• 25:58
  us,
• 25:59
  you
• 25:59
  know,
• 25:59
  we're
• 25:59
  not
• 25:59
  accountants,
• 26:00
  we
• 26:00
  don't
• 26:00
  have
• 26:00
  the
• 26:00
  tax
• 26:00
  expertise
• 26:01
  to
• 26:01
  know
• 26:01
  what
• 26:02
  it
• 26:02
  looks
• 26:02
  like
• 26:02
  post
• 26:02
  tax.
• 26:03
  But
• 26:03
  the
• 26:04
  returns
• 26:04
  we
• 26:04
  really
• 26:04
  should
• 26:05
  be
• 26:05
  interested
• 26:05
  in
• 26:05
  are
• 26:05
  the
• 26:05
  post
• 26:06
  tax
• 26:06
  returns.
• 26:06
  And
• 26:07
  that's
• 26:07
  where
• 26:07
  strategies
• 26:08
  like
• 26:08
  development
• 26:09
  really
• 26:09
  come
• 26:09
  in
• 26:09
  handy.
• 26:10
  Yeah,
• 26:10
  absolutely.
• 26:11
  And
• 26:11
  I
• 26:11
  will
• 26:12
  say
• 26:12
  on
• 26:12
  this
• 26:12
  one,
• 26:12
  it's,
• 26:13
  it's
• 26:13
  really
• 26:13
  important.
• 26:14
  It's
• 26:14
  not
• 26:14
  what
• 26:14
  you
• 26:14
  know,
• 26:14
  it's
• 26:15
  who
• 26:15
  you
• 26:15
  know
• 26:15
  and
• 26:16
  making
• 26:16
  sure
• 26:16
  to
• 26:16
  be
• 26:16
  involved
• 26:17
  with
• 26:17
  your
• 26:17
  local
• 26:18
  municipality.
• 26:18
  Like
• 26:18
  I
• 26:19
  just
• 26:19
  signed
• 26:19
  up
• 26:19
  for
• 26:19
  chamber
• 26:19
  of
• 26:20
  commerce.
• 26:20
  I
• 26:20
  think
• 26:20
  it's
• 26:21
  really
• 26:21
  important
• 26:21
  that
• 26:21
  you
• 26:21
  know
• 26:22
  who
• 26:22
  is
• 26:22
  the
• 26:22
  city
• 26:22
  council
• 26:23
  members,
• 26:23
  are
• 26:23
  they
• 26:23
  friendly
• 26:24
  to
• 26:24
  development
• 26:24
  or
• 26:24
  not?
• 26:25
  Are
• 26:25
  you
• 26:25
  going
• 26:25
  to
• 26:25
  have
• 26:25
  some
• 26:26
  pushback
• 26:26
  from
• 26:26
  the
• 26:26
  local
• 26:27
  community?
• 26:28
  Being
• 26:28
  very
• 26:28
  involved
• 26:29
  with
• 26:29
  your
• 26:29
  local
• 26:30
  politics
• 26:30
  and
• 26:30
  understanding,
• 26:31
  you
• 26:31
  know,
• 26:32
  who
• 26:32
  is
• 26:32
  in
• 26:32
  the
• 26:32
  planning
• 26:33
  department
• 26:33
  that
• 26:33
  you
• 26:33
  need
• 26:33
  to
• 26:34
  know,
• 26:34
  who's
• 26:34
  the
• 26:34
  city
• 26:35
  manager,
• 26:35
  who's
• 26:35
  the
• 26:35
  city
• 26:36
  council
• 26:36
  members.
• 26:37
  I
• 26:37
  think
• 26:37
  that's
• 26:37
  also.
• 26:38
  It
• 26:38
  plays
• 26:38
  a
• 26:38
  large
• 26:39
  part
• 26:39
  in
• 26:40
  making
• 26:40
  the
• 26:40
  development
• 26:40
  process
• 26:41
  a
• 26:41
  lot
• 26:41
  more
• 26:41
  smooth
• 26:42
  for
• 26:42
  you.
• 26:42
  So
• 26:43
  those
• 26:43
  relationships,
• 26:44
  getting
• 26:44
  into
• 26:44
  those
• 26:45
  relationships
• 26:45
  sooner
• 26:45
  rather
• 26:46
  than
• 26:46
  later,
• 26:46
  development
• 26:47
  is
• 26:47
  something
• 26:47
  you
• 26:47
  want
• 26:47
  to
• 26:48
  do
• 26:48
  long
• 26:48
  term.
• 26:48
  I
• 26:48
  think
• 26:49
  it's
• 26:49
  really
• 26:49
  critical.
• 26:50
  Yep.
• 26:50
  And
• 26:50
  then
• 26:51
  the
• 26:51
  last
• 26:51
  strategy
• 26:51
  we're
• 26:51
  going
• 26:51
  to
• 26:52
  talk
• 26:52
  about
• 26:52
  today
• 26:52
  is
• 26:52
  affordable
• 26:53
  housing.
• 26:54
  So
• 26:54
  in
• 26:54
  today's
• 26:55
  market
• 26:55
  and
• 26:55
  today's
• 26:56
  world,
• 26:56
  affordable
• 26:57
  housing
• 26:57
  has
• 26:57
  certainly
• 26:58
  become
• 26:58
  a
• 26:58
  hot
• 26:58
  button
• 26:59
  issue.
• 26:59
  And
• 26:59
  you
• 26:59
  can
• 26:59
  probably
• 27:00
  Hear
• 27:00
  that
• 27:00
  issue
• 27:00
  in
• 27:01
  every
• 27:01
  city
• 27:01
  and
• 27:01
  every
• 27:01
  county
• 27:02
  in
• 27:02
  America.
• 27:02
  Long
• 27:03
  story
• 27:03
  short,
• 27:03
  there's
• 27:04
  not
• 27:04
  enough
• 27:04
  of
• 27:04
  it
• 27:04
  in
• 27:04
  most
• 27:04
  cases.
• 27:05
  So
• 27:06
  there's
• 27:06
  opportunities
• 27:07
  there
• 27:07
  because
• 27:07
  the
• 27:07
  government
• 27:08
  wants
• 27:08
  to
• 27:09
  work
• 27:09
  with
• 27:09
  people
• 27:09
  who
• 27:09
  are
• 27:10
  willing
• 27:10
  to
• 27:10
  provide
• 27:10
  this
• 27:10
  type
• 27:11
  of
• 27:11
  housing.
• 27:11
  Being
• 27:11
  that
• 27:12
  there's
• 27:12
  such
• 27:12
  strong
• 27:13
  demand
• 27:13
  for
• 27:13
  it.
• 27:14
  And
• 27:14
  affordable
• 27:14
  housing
• 27:15
  can
• 27:15
  take
• 27:15
  many
• 27:15
  different
• 27:16
  forms.
• 27:16
  Sometimes
• 27:17
  it
• 27:17
  can
• 27:17
  just
• 27:17
  be
• 27:17
  a
• 27:17
  conventional
• 27:18
  property
• 27:18
  that
• 27:18
  you
• 27:19
  choose
• 27:19
  to
• 27:19
  accept
• 27:19
  Section
• 27:19
  8
• 27:20
  tenants.
• 27:20
  And
• 27:21
  Section
• 27:21
  8
• 27:21
  in
• 27:22
  many
• 27:22
  areas,
• 27:22
  it's
• 27:22
  a
• 27:22
  government
• 27:23
  run
• 27:23
  program.
• 27:23
  There's
• 27:24
  no
• 27:24
  restriction
• 27:25
  on
• 27:25
  the
• 27:25
  property
• 27:26
  itself.
• 27:26
  So
• 27:26
  you
• 27:26
  can
• 27:26
  choose
• 27:26
  to
• 27:27
  rent
• 27:27
  to
• 27:27
  a
• 27:28
  market
• 27:28
  rate
• 27:28
  tenant
• 27:29
  or
• 27:29
  to
• 27:29
  an
• 27:29
  affordable
• 27:29
  one.
• 27:30
  And
• 27:30
  what
• 27:31
  happens
• 27:31
  is
• 27:31
  the
• 27:31
  tenant
• 27:31
  receives
• 27:32
  a
• 27:32
  voucher
• 27:32
  from
• 27:33
  the
• 27:33
  local
• 27:33
  government
• 27:33
  that
• 27:34
  basically
• 27:34
  pays
• 27:34
  all
• 27:34
  or
• 27:35
  a
• 27:35
  portion
• 27:35
  of
• 27:35
  their
• 27:35
  housing
• 27:35
  corporation.
• 27:36
  Another
• 27:37
  piece
• 27:37
  is
• 27:37
  lihtag
• 27:38
  Low
• 27:38
  Income
• 27:38
  Housing
• 27:39
  Tax
• 27:39
  Credit.
• 27:39
  So
• 27:40
  when
• 27:40
  you
• 27:40
  get
• 27:40
  into
• 27:40
  that,
• 27:41
  that's
• 27:41
  actually
• 27:41
  going
• 27:41
  to
• 27:42
  have
• 27:42
  a
• 27:42
  restriction
• 27:42
  on
• 27:42
  the
• 27:43
  property.
• 27:43
  It
• 27:43
  has
• 27:43
  a
• 27:43
  covenant
• 27:44
  called
• 27:44
  a
• 27:44
  Laura
• 27:45
  L
• 27:45
  U
• 27:45
  R
• 27:45
  A
• 27:46
  and
• 27:46
  that
• 27:46
  restricts
• 27:47
  who
• 27:47
  can
• 27:47
  rent
• 27:48
  certain
• 27:48
  units
• 27:48
  of
• 27:49
  the
• 27:49
  property.
• 27:49
  So
• 27:50
  that
• 27:50
  will
• 27:50
  have
• 27:50
  a
• 27:51
  longer
• 27:51
  term
• 27:51
  impact
• 27:51
  on
• 27:52
  the
• 27:52
  property,
• 27:52
  but
• 27:52
  there
• 27:52
  can
• 27:53
  be
• 27:53
  income
• 27:53
  tax
• 27:53
  benefits
• 27:54
  from
• 27:54
  that
• 27:54
  and
• 27:54
  there
• 27:54
  can
• 27:55
  also
• 27:55
  be
• 27:55
  other
• 27:55
  opportunities
• 27:56
  to
• 27:57
  benefit
• 27:57
  from
• 27:57
  it.
• 27:58
  What
• 27:58
  are
• 27:58
  your
• 27:58
  thoughts
• 27:58
  on
• 27:58
  affordable
• 27:59
  housing,
• 27:59
  Erica?
• 27:59
  So
• 28:00
  I
• 28:00
  had
• 28:01
  actually
• 28:01
  done,
• 28:01
  there
• 28:02
  was
• 28:02
  an
• 28:02
  off
• 28:02
  market
• 28:03
  32
• 28:03
  unit
• 28:04
  and
• 28:04
  the
• 28:05
  IT
• 28:05
  was
• 28:05
  a
• 28:05
  new
• 28:05
  construction,
• 28:06
  so
• 28:06
  it
• 28:06
  was
• 28:06
  at,
• 28:06
  you
• 28:07
  know,
• 28:07
  0%
• 28:07
  occupancy.
• 28:08
  One
• 28:08
  of
• 28:08
  the
• 28:08
  partners
• 28:09
  had
• 28:09
  actually
• 28:09
  backed
• 28:10
  out
• 28:10
  and
• 28:10
  they
• 28:10
  were
• 28:10
  up
• 28:10
  against
• 28:11
  a
• 28:11
  financing
• 28:12
  deadline.
• 28:12
  And
• 28:12
  I
• 28:12
  was
• 28:13
  underwriting
• 28:13
  it
• 28:13
  with
• 28:13
  one
• 28:14
  of
• 28:14
  my
• 28:14
  investors.
• 28:15
  And
• 28:15
  through
• 28:15
  my
• 28:15
  underwriting
• 28:16
  process
• 28:16
  I
• 28:17
  realized
• 28:17
  that
• 28:18
  it
• 28:18
  was
• 28:18
  one
• 28:18
  of
• 28:18
  the
• 28:18
  few
• 28:19
  in
• 28:19
  that
• 28:19
  area
• 28:19
  that
• 28:19
  were
• 28:19
  that
• 28:20
  small
• 28:20
  as
• 28:20
  far
• 28:20
  as
• 28:21
  like
• 28:21
  the
• 28:21
  unit
• 28:22
  count.
• 28:22
  And
• 28:22
  the
• 28:23
  only
• 28:23
  other
• 28:23
  comparable
• 28:24
  property
• 28:25
  that
• 28:25
  also
• 28:25
  lacked
• 28:25
  the
• 28:26
  amenities
• 28:26
  was
• 28:26
  a
• 28:26
  smaller
• 28:27
  unit
• 28:27
  count,
• 28:27
  was
• 28:28
  subsidized
• 28:28
  housing.
• 28:29
  And
• 28:29
  what
• 28:29
  I
• 28:29
  had
• 28:29
  found
• 28:30
  through
• 28:30
  that
• 28:30
  underwriting
• 28:30
  process
• 28:31
  is
• 28:31
  it
• 28:31
  seemed
• 28:31
  like
• 28:32
  they
• 28:32
  actually
• 28:32
  were
• 28:32
  netting
• 28:33
  a
• 28:33
  higher
• 28:33
  lease
• 28:34
  rate
• 28:34
  on
• 28:34
  that
• 28:35
  type
• 28:35
  of
• 28:35
  property
• 28:35
  that
• 28:35
  didn't
• 28:36
  have
• 28:36
  the
• 28:36
  amenities
• 28:36
  and
• 28:36
  was
• 28:37
  a
• 28:37
  smaller
• 28:37
  unit
• 28:37
  count
• 28:38
  with
• 28:38
  subsidized
• 28:38
  housing
• 28:39
  than
• 28:39
  they
• 28:39
  could
• 28:39
  have
• 28:39
  otherwise.
• 28:40
  And
• 28:41
  so
• 28:41
  one
• 28:41
  of
• 28:41
  the
• 28:41
  key
• 28:42
  factors
• 28:42
  of
• 28:42
  that
• 28:42
  though
• 28:42
  was
• 28:43
  making
• 28:43
  sure
• 28:43
  to
• 28:43
  connect
• 28:44
  that
• 28:44
  investor
• 28:44
  with
• 28:45
  my
• 28:45
  property
• 28:46
  manager
• 28:46
  that
• 28:46
  specializes
• 28:47
  with
• 28:47
  subsidized
• 28:48
  housing
• 28:48
  so
• 28:48
  that
• 28:48
  he
• 28:49
  could
• 28:49
  give
• 28:49
  him
• 28:50
  all
• 28:50
  of
• 28:50
  the
• 28:50
  real
• 28:51
  information
• 28:52
  that
• 28:52
  he
• 28:52
  was
• 28:53
  going
• 28:53
  to
• 28:53
  need
• 28:53
  on
• 28:53
  what
• 28:53
  the
• 28:54
  operational
• 28:54
  side
• 28:54
  will
• 28:55
  actually
• 28:55
  look
• 28:55
  look
• 28:55
  like
• 28:55
  for
• 28:56
  that
• 28:56
  and
• 28:56
  just
• 28:56
  some
• 28:57
  tidbits
• 28:57
  on
• 28:58
  how
• 28:58
  to
• 28:58
  manage
• 28:58
  it
• 28:59
  and,
• 28:59
  and
• 28:59
  helped
• 28:59
  him
• 29:00
  kind
• 29:00
  of
• 29:00
  sort
• 29:00
  through.
• 29:00
  Is
• 29:00
  that
• 29:00
  something
• 29:01
  that
• 29:01
  he
• 29:01
  even
• 29:01
  wants
• 29:02
  to
• 29:02
  do?
• 29:02
  Right,
• 29:03
  because
• 29:03
  it's
• 29:03
  how
• 29:03
  much
• 29:03
  money
• 29:04
  are
• 29:04
  you
• 29:04
  making?
• 29:04
  But
• 29:04
  what
• 29:04
  is
• 29:04
  the
• 29:05
  decibel
• 29:05
  volume
• 29:05
  of
• 29:05
  noise
• 29:06
  that
• 29:06
  it
• 29:06
  requires
• 29:06
  to
• 29:06
  make
• 29:07
  that
• 29:07
  amount
• 29:07
  of
• 29:07
  money.
• 29:07
  So
• 29:08
  with
• 29:08
  subsidized
• 29:08
  housing
• 29:08
  like
• 29:09
  Section
• 29:09
  eight,
• 29:09
  you're
• 29:09
  going
• 29:09
  through
• 29:10
  annual
• 29:10
  inspections
• 29:10
  on
• 29:11
  the
• 29:11
  property.
• 29:11
  Right.
• 29:12
  You
• 29:12
  probably
• 29:12
  don't
• 29:12
  want
• 29:13
  to
• 29:13
  do
• 29:13
  that
• 29:13
  with
• 29:13
  a
• 29:13
  property
• 29:14
  that's
• 29:14
  going
• 29:14
  to
• 29:14
  require
• 29:14
  a
• 29:15
  significant
• 29:15
  amount
• 29:15
  of
• 29:15
  capex,
• 29:16
  or
• 29:16
  you're
• 29:16
  going
• 29:16
  to
• 29:16
  just
• 29:16
  continuously
• 29:17
  run
• 29:17
  into
• 29:17
  issues.
• 29:18
  So
• 29:19
  really,
• 29:19
  again,
• 29:19
  understanding
• 29:20
  the
• 29:20
  ins
• 29:21
  and
• 29:21
  outs
• 29:21
  of
• 29:21
  it
• 29:21
  by
• 29:22
  making
• 29:22
  sure
• 29:22
  you
• 29:22
  have
• 29:22
  the
• 29:22
  right
• 29:22
  work
• 29:23
  network
• 29:23
  in
• 29:23
  your
• 29:23
  connecting
• 29:24
  with
• 29:24
  people
• 29:24
  that
• 29:24
  can
• 29:24
  kind
• 29:25
  of
• 29:25
  guide
• 29:25
  you
• 29:25
  on
• 29:25
  that
• 29:25
  process,
• 29:26
  I
• 29:26
  think
• 29:26
  is
• 29:26
  critical.
• 29:27
  Yes,
• 29:27
  definitely
• 29:28
  is.
• 29:28
  Well,
• 29:28
  guys,
• 29:29
  we
• 29:29
  want
• 29:29
  to
• 29:29
  thank
• 29:29
  everybody
• 29:29
  for
• 29:30
  tuning
• 29:30
  in
• 29:30
  and
• 29:31
  listening
• 29:31
  to
• 29:32
  this
• 29:32
  episode
• 29:32
  of
• 29:32
  the
• 29:33
  Master
• 29:33
  Passive
• 29:34
  Income
• 29:34
  Multifamily
• 29:35
  Podcast.
• 29:35
  We
• 29:35
  hope
• 29:35
  that
• 29:36
  you
• 29:36
  learn
• 29:36
  something
• 29:37
  new
• 29:37
  and
• 29:37
  that
• 29:37
  you
• 29:37
  go
• 29:37
  out
• 29:37
  and
• 29:37
  apply
• 29:38
  these
• 29:38
  strategies.
• 29:39
  Till
• 29:39
  next
• 29:39
  time.
• 29:40
  Thanks,
• 29:40
  guys.