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Study Hall: Accessing Capital for Real Estate Development · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J.
• 0:20
  Speaker 2: Trump's leadership.
• 0:21
  Speaker 1: I'm Christy nom the United States Secretary of Homeland Security.
• 0:25
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 0:29
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 0:33
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 0:37
  Speaker 1: next you will be fined nearly one thousand dollars a day, imprisoned,
• 0:41
  Speaker 1: and deported.
• 0:42
  Speaker 2: You will never return.
• 0:44
  Speaker 1: But if you register using our CBP home app and
• 0:47
  Speaker 1: leave now, you could be allowed to return legally.
• 0:50
  Speaker 2: Do what's right. Leave now.
• 0:53
  Speaker 1: Under President Trump, America's laws, border and families will.
• 0:57
  Speaker 3: Be protected sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 4: So how are you moving into different markets? Like what
• 1:02
  Speaker 4: are some challenges with that? You started where you're from,
• 1:05
  Speaker 4: but now you're going to Texas and you're going to
• 1:07
  Speaker 4: you say they moved to Atlanta and different things like
• 1:10
  Speaker 4: and then you're doing different different product types as well. Yeah,
• 1:13
  Speaker 4: we talk about navigating that.
• 1:15
  Speaker 5: So relationships, man, it's everything. I think when I was
• 1:20
  Speaker 5: coming up in Milwaukee, one of the things that I
• 1:23
  Speaker 5: did was just build those relationships off network, and I
• 1:26
  Speaker 5: was at every event. You couldn't miss me. I was
• 1:28
  Speaker 5: literally you could not miss me. I was everywhere. So
• 1:31
  Speaker 5: I took that same model. But now I'm doing it
• 1:33
  Speaker 5: on the national scale. Everything in DC real estate based events,
• 1:37
  Speaker 5: I'm there. I'm not there as much now because i've
• 1:39
  Speaker 5: been you know, headed down, but I'm in those Atlanta
• 1:43
  Speaker 5: based events, I'm in that, Houston based events, I'm in
• 1:45
  Speaker 5: those you know, Birmingham based events, I'm in that. So
• 1:49
  Speaker 5: I look for the macro economic trends that I liked
• 1:53
  Speaker 5: population growth.
• 1:56
  Speaker 6: I really like red states and blue cities because it.
• 1:59
  Speaker 5: Allows for or flexibility and getting out tennis that may
• 2:06
  Speaker 5: not pay right. I'm not saying you're vig folks, That's
• 2:09
  Speaker 5: not what I'm here for. But at the same time,
• 2:11
  Speaker 5: places like Atlanta. Atlanta is in as bad Atlanta's d C.
• 2:16
  Speaker 5: Let's use DC for example. You said red state and
• 2:19
  Speaker 5: blue city. Yes, those are places like Atlanta. I like Houston,
• 2:23
  Speaker 5: Georgia's Birmingham all blue states, red city.
• 2:28
  Speaker 4: I mean, I mean traditionally george is not a blue state.
• 2:30
  Speaker 5: No, no, no, I mean blue Citi's Red states. I may
• 2:32
  Speaker 5: have said it the wrong way. Birmingham would be yeah,
• 2:37
  Speaker 5: yeah for sure, New Orleans.
• 2:39
  Speaker 6: Yes, stuff like that. Yeah. I really like blue states,
• 2:42
  Speaker 6: red cities.
• 2:43
  Speaker 5: Sorry, blue cities, red states because the higher level laws allow.
• 2:48
  Speaker 6: For more flexibility.
• 2:49
  Speaker 5: Like a place like DC, for example, there were people
• 2:51
  Speaker 5: that literally d C prior to the pandemic. You can
• 2:56
  Speaker 5: go rent an apartment, never pay your rent, and you
• 2:59
  Speaker 5: don't have have to get out for at least seven
• 3:01
  Speaker 5: months because.
• 3:01
  Speaker 6: That's all in the process takes.
• 3:03
  Speaker 5: Like I know people that lived in the building that
• 3:04
  Speaker 5: I lived in that literally leased it and didn't pay rent.
• 3:08
  Speaker 5: They just leased it out every summer so they can
• 3:10
  Speaker 5: enjoy the rooftop, and they just burn up different people's things,
• 3:13
  Speaker 5: like okay, your name this year, were all gonna live there.
• 3:15
  Speaker 5: Your name this year, We're all gonna live there.
• 3:17
  Speaker 4: Are there any Are there any major cities that are
• 3:20
  Speaker 4: run by Republicans? I don't think so. Right most every
• 3:22
  Speaker 4: major city is run by Democrats. Think about it.
• 3:25
  Speaker 6: That's a good Chicago, LA.
• 3:29
  Speaker 4: Miami's a Democrat, the mayor's a Democrat. I don't think
• 3:32
  Speaker 4: there's any major city that that's interesting. I just thought
• 3:35
  Speaker 4: about that. No, no major city has demo, has a
• 3:39
  Speaker 4: Republican control, even even if it's in the Republican l
• 3:43
  Speaker 4: A yeah, San Francisco, San Francisco saying yeah, Philly yeah,
• 3:50
  Speaker 4: and you know Pennsylvanica's back and forth.
• 3:52
  Speaker 6: But those those cities, those states.
• 3:55
  Speaker 5: That have those very like strings and laws, like a
• 3:57
  Speaker 5: DC for example, I'm not the most fond of right
• 4:03
  Speaker 5: Like during the pandemic, there are people that literally lived
• 4:05
  Speaker 5: for over a year just because of the system.
• 4:08
  Speaker 6: And it's like you're not paying any rent.
• 4:11
  Speaker 5: As a landowner that has thousands of units, I don't
• 4:15
  Speaker 5: want thousands of units in the place that I can't
• 4:18
  Speaker 5: get people exploiting this system. Out in Wisconsin, you get
• 4:22
  Speaker 5: somebody thirty days, all right, boom, you go through the process.
• 4:25
  Speaker 6: Atlanta even quicker than that.
• 4:26
  Speaker 5: And I'm not saying we should exploit it either, but
• 4:29
  Speaker 5: from a business perspective, it doesn't make sense for me
• 4:32
  Speaker 5: to be in a place where X amount of people
• 4:34
  Speaker 5: that'll pay rent, especially as I'm rising like when I
• 4:36
  Speaker 5: get bigger, of course, maybe I could deal with some
• 4:39
  Speaker 5: of that drop, but right now, nah, I'm focused on
• 4:41
  Speaker 5: cities where it makes sense financially.
• 4:44
  Speaker 7: So you moved throughout the cities. I know the HUT
• 4:46
  Speaker 7: is involved in the Birmingham situation. There was three hundred
• 4:49
  Speaker 7: and seventy million allocated for the developments. Is it a
• 4:54
  Speaker 7: situation where you can now again go back to hood
• 4:56
  Speaker 7: and do the same type of opposing a different city.
• 4:59
  Speaker 5: Absolutely so, I have I'm a finalist for three cities
• 5:02
  Speaker 5: right now.
• 5:04
  Speaker 6: I knew it, man, I knew.
• 5:05
  Speaker 5: I'm a finalist for three cities right now. I got
• 5:07
  Speaker 5: a call yesterday about one. We'll talk about the cities offline.
• 5:11
  Speaker 6: Yeah.
• 5:12
  Speaker 5: So the strategy in the game plan there is if
• 5:17
  Speaker 5: let's say once a year, once every other year, I
• 5:19
  Speaker 5: can pick up one of these. Birmingham will be further
• 5:22
  Speaker 5: along now I'm starting to that, and if each one
• 5:25
  Speaker 5: is kicking out a thousand plus units, you get three
• 5:28
  Speaker 5: four cities. I mean by the time I'm thirty four, now,
• 5:31
  Speaker 5: by the time I'm forty two forty three, I have
• 5:35
  Speaker 5: thousands of units under my belt that I've developed and
• 5:38
  Speaker 5: really just starting to enter my prime.
• 5:42
  Speaker 7: On your financial map. Does the percentage change with the
• 5:44
  Speaker 7: amount of units? Right when you started at the one forty,
• 5:47
  Speaker 7: you had your percentage that was put in. Now you're
• 5:49
  Speaker 7: doing eleven hundred, but you have partners.
• 5:52
  Speaker 5: Yes, great question, Yes it did change. So each city
• 5:57
  Speaker 5: that you go into there how you So all of
• 6:01
  Speaker 5: these are public housing redevelopment, So think of Brittany Greens,
• 6:05
  Speaker 5: think Marcie projects, et cetera.
• 6:07
  Speaker 6: We're taking the projects.
• 6:09
  Speaker 5: And creating mixed income communities because if you think about
• 6:13
  Speaker 5: the projects that were low density, so it's thirty acres
• 6:17
  Speaker 5: of land.
• 6:20
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• 8:10
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:14
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 8:18
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 8:22
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:26
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:30
  Speaker 1: Donald J.
• 8:30
  Speaker 2: Trump's leadership. I'm Christy Noman, the.
• 8:33
  Speaker 1: United States Secretary of Homeland Security. Under President Trump, attempted
• 8:37
  Speaker 1: illegal border crossings are at the lowest levels ever recorded,
• 8:41
  Speaker 1: and over one hundred thousand illegal aliens have been arrested.
• 8:45
  Speaker 1: If you are here illegally, your next you will be
• 8:48
  Speaker 1: fined nearly one thousand dollars.
• 8:50
  Speaker 2: A day, imprisoned, and deported. You will never return.
• 8:54
  Speaker 1: But if you register using our CBP home app and
• 8:57
  Speaker 1: leave now, you could be allowed to return legally.
• 9:00
  Speaker 2: Do what's right to leave now.
• 9:03
  Speaker 1: Under President Trump America's laws, border and families will.
• 9:07
  Speaker 3: Be protected sponsored by the United States Department of Homeland
• 9:10
  Speaker 3: Security with three hundred units on it.
• 9:13
  Speaker 5: That's saying thirty acres could do three thousand if you
• 9:15
  Speaker 5: really wanted to, right, but you don't want to, you
• 9:18
  Speaker 5: don't want to go that dence, but that's just an
• 9:20
  Speaker 5: example of.
• 9:22
  Speaker 6: What you are going after.
• 9:24
  Speaker 5: So because the housing authorities typically own those lands, whoever
• 9:29
  Speaker 5: is at the housing authority, they kind of dictate the
• 9:32
  Speaker 5: negotiation of like the housing authority and developer. In those terms,
• 9:35
  Speaker 5: the housing authority gets X percentage and then the developers
• 9:39
  Speaker 5: gets why percentage and right now integrew and I are
• 9:42
  Speaker 5: splitting that percentage, but it's very favorable, like it's pretty
• 9:46
  Speaker 5: close to where.
• 9:48
  Speaker 6: It should be.
• 9:48
  Speaker 5: And the way we work they come. I'm driving, but
• 9:53
  Speaker 5: they're they're every step of the way in the passenger seat,
• 9:55
  Speaker 5: so I'm able to learn from it in their experience.
• 9:57
  Speaker 5: They've developed, built and manage over ten thousand plus units.
• 10:00
  Speaker 5: They've been doing this, they created the model. I'm learning
• 10:03
  Speaker 5: from them, but I'm driving the ship at the same time.
• 10:06
  Speaker 5: So yes, I have to share in the economics, but
• 10:10
  Speaker 5: you know, three four hundred million dollar deals a pop,
• 10:13
  Speaker 5: I don't mind sharing.
• 10:15
  Speaker 6: We can figure it out.
• 10:16
  Speaker 4: So talk about access to capital, that's something that you
• 10:19
  Speaker 4: know down people. A lot of people haven't talked about.
• 10:23
  Speaker 4: What is your thoughts on access to capital as far
• 10:26
  Speaker 4: as doing the real estate development side and what's your
• 10:28
  Speaker 4: personal experience is trying to get access to capital.
• 10:32
  Speaker 5: The money on this commercial real estate side. Like I said,
• 10:35
  Speaker 5: the money is gonna be there. If you got to
• 10:37
  Speaker 5: deal to work, the money's gonna flow at the end
• 10:40
  Speaker 5: of the day. Now the terms for the money talked
• 10:42
  Speaker 5: about before, that's where it gets a little tricky. I'll
• 10:46
  Speaker 5: say in a way of George Floyd, there was an
• 10:50
  Speaker 5: eighteen month period maybe even a little. I mean, it's
• 10:54
  Speaker 5: still kind of there, but it's scaling back where they
• 10:57
  Speaker 5: were throwing money at black developers.
• 11:00
  Speaker 4: Move stolen money like Black Rock.
• 11:02
  Speaker 6: Uh No, that's a great question. So like the Paypals
• 11:06
  Speaker 6: of the world.
• 11:06
  Speaker 5: When they was giving out all of the like oh
• 11:08
  Speaker 5: I want to invest in black communities, primarily went to
• 11:12
  Speaker 5: cdffi's Community Development Financial Institution that we talked about last time.
• 11:15
  Speaker 5: There's some national cdf fis that governed some of those
• 11:18
  Speaker 5: funds and they've been able to kind of distill those
• 11:20
  Speaker 5: funds to us. So like Enterprise Community Partners that my
• 11:22
  Speaker 5: equity investors on the Madison deal, they have a program
• 11:25
  Speaker 5: called Equitable Path Forward.
• 11:27
  Speaker 6: Their CEO just took over Fanny May.
• 11:31
  Speaker 5: So that's the scale of how big these CDFIs are now.
• 11:37
  Speaker 6: They're one of their presidents, Lori Chapman.
• 11:40
  Speaker 5: She created this program based upon all of that money
• 11:43
  Speaker 5: that was coming in from the corporations that we're trying
• 11:45
  Speaker 5: to give to black dollars, and this program.
• 11:48
  Speaker 6: Is specifically created to be able to.
• 11:51
  Speaker 5: They have lines of credit for us from an operational
• 11:54
  Speaker 5: business perspective. They have pre development loans so you can
• 11:57
  Speaker 5: go out each one of these deals, you need at
• 12:00
  Speaker 5: least a half a million, anywhere from a half a
• 12:02
  Speaker 5: million to a million before you close. You get it
• 12:05
  Speaker 5: all back when you finish, but you need that before
• 12:07
  Speaker 5: you close. And when you talk about like capacity, that's
• 12:09
  Speaker 5: one of the things too. If you have five of
• 12:11
  Speaker 5: these deals going on at one time, you're gonna need
• 12:14
  Speaker 5: two and a half to five million dollars worth of
• 12:16
  Speaker 5: capital just to deploy to that, not even talking about
• 12:18
  Speaker 5: your operations and nothing like that. So they have programs
• 12:21
  Speaker 5: that are allowing for developers to be able to tap
• 12:23
  Speaker 5: into those type of money that helps us grow in scale.
• 12:27
  Speaker 5: But the flip side of it is that's all the
• 12:31
  Speaker 5: you know, kind of feel good money that's gonna flip.
• 12:34
  Speaker 5: But to don people's point, black people don't manage big
• 12:40
  Speaker 5: pension funds at all. Right, I've heard him talk about
• 12:44
  Speaker 5: it on y'all's platform. At the end of the day,
• 12:47
  Speaker 5: we're less than one percent of all of the management,
• 12:50
  Speaker 5: Black brown women less than one percent of all assets managed.
• 12:54
  Speaker 5: But if in New York, for example, with black, brown
• 12:57
  Speaker 5: and women, it's over fifty percent of what's going into
• 12:59
  Speaker 5: that pension fund, why is it less than one percent
• 13:02
  Speaker 5: of us managing or having access to manage those funds?
• 13:05
  Speaker 5: What is the governance around that to say, oh, you
• 13:07
  Speaker 5: are not capable enough to do that.
• 13:09
  Speaker 6: That's still a.
• 13:10
  Speaker 5: Really big challenge to be able to even go from
• 13:13
  Speaker 5: someone like myself that's a developer that's established, to get
• 13:15
  Speaker 5: into fund management and be able to allocate to either
• 13:20
  Speaker 5: my developments or other developers in the same way as
• 13:23
  Speaker 5: some of these traditional majority firms are doing with no problem.
• 13:28
  Speaker 5: So that's really a challenge that I think needs to
• 13:31
  Speaker 5: be addressed, and I'm doing my job to do it.
• 13:34
  Speaker 5: So Reinvestor is a platform and I'm creating now. It's
• 13:36
  Speaker 5: a crowdfunding platform that democratizes commercial real esset investment. My
• 13:41
  Speaker 5: mother can invest, your parents can invest unless they are accredited.
• 13:44
  Speaker 6: Historically, but you've seen.
• 13:46
  Speaker 5: Crowdfundings start to grow in the real estate space a
• 13:48
  Speaker 5: little bit. So I'm doing a regulation a plus. We
• 13:52
  Speaker 5: can raise up to seventy five million. I'm gonna put
• 13:55
  Speaker 5: a portfolio of deals together and have people invest in
• 13:58
  Speaker 5: that and back by the best of the best in
• 14:02
  Speaker 5: the country that are doing it, so it's secure by
• 14:05
  Speaker 5: those funds, I mean buy those firms, and we underwrite deals.
• 14:08
  Speaker 5: We co invest in the deals. It's not like investing
• 14:12
  Speaker 5: in a company. It's not like investing in a onesie deal.
• 14:14
  Speaker 3: Like.
• 14:15
  Speaker 5: We are putting together sophistication in a way that the
• 14:19
  Speaker 5: marketplace has not seen. So that's one of the ways
• 14:22
  Speaker 5: that I'm addressing the access to capital challenge for emerging
• 14:25
  Speaker 5: developers that are like me and coming up behind me too.
• 14:28
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 14:32
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 14:36
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 14:40
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 14:44
  Speaker 1: some of the heinous migrant criminals caught because of President
• 14:48
  Speaker 1: Donald J.
• 14:49
  Speaker 2: Trump's leadership.
• 14:50
  Speaker 1: I'm Christy Noman, the United States Secretary of Homeland Security.
• 14:54
  Speaker 1: Under President Trump, attempted illegal border crossings are at the
• 14:58
  Speaker 1: lowest levels ever recorded, and over one hundred thousand illegal
• 15:02
  Speaker 1: aliens have been arrested. If you are here illegally, your
• 15:05
  Speaker 1: next you will be fine nearly one thousand dollars.
• 15:09
  Speaker 2: A day, imprisoned, and deported. You will never return.
• 15:13
  Speaker 1: But if you register using our CBP home app and
• 15:16
  Speaker 1: leave now, you could be allowed to return legally.
• 15:19
  Speaker 2: Do what's right, leave now.
• 15:21
  Speaker 1: Under President Trump, America's laws, border and families will be protected.
• 15:26
  Speaker 3: Sponsored by the United States Department of Homeland Security,