WEBVTT 1 00:00:00.000 --> 00:00:07.040 You've been searching for the best way to generate passive income in your life. 2 00:00:07.040 --> 00:00:09.640 And heard that real estate is a great way to do it. 3 00:00:09.640 --> 00:00:15.840 But you're tired of all the so-called gurus who are all talked in no substance. 4 00:00:15.840 --> 00:00:22.120 Get ready to celebrate because Kevin Buck has spent 14 years successfully making it happen. 5 00:00:22.120 --> 00:00:25.480 This is the real estate investing for Cash Flow Podcast. 6 00:00:25.480 --> 00:00:27.480 Now, here's Kevin Buck. 7 00:00:30.680 --> 00:00:33.800 Hey guys, Kevin Buck here and I want to welcome you to another episode of the Real Estate 8 00:00:33.800 --> 00:00:35.600 Investment for Cash Flow Podcast. 9 00:00:35.600 --> 00:00:39.280 Our mission is to help you build and maintain massive amounts of cash flow through 10 00:00:39.280 --> 00:00:41.760 income producing real estate investments. 11 00:00:41.760 --> 00:00:45.960 Now our guest for this week's show is Real Estate Investment Expert, Teni Tullafari. 12 00:00:45.960 --> 00:00:50.320 Now, Teni is a co-founder and director of acquisitions for ex-site capital investment 13 00:00:50.320 --> 00:00:53.760 and investment firm that specializes in value and multi-family properties. 14 00:00:53.760 --> 00:00:57.800 Now, as the director of acquisitions and co-founder of ex-site capital investment, 15 00:00:57.800 --> 00:01:03.120 Teni has led acquisitions amounting to over $168 million in assets under management. 16 00:01:03.120 --> 00:01:08.200 Now, Teni's journey into investment started from a place of curiosity and networking. 17 00:01:08.200 --> 00:01:12.560 And today, his goal was to help over 100,000 individuals gain financial independence. 18 00:01:12.560 --> 00:01:16.200 And guys, when Teni's not out there navigating the world of investing, 19 00:01:16.200 --> 00:01:20.520 he's looking forward to exploring its personal interests such as fishing, dancing, golf. 20 00:01:20.520 --> 00:01:21.480 We're going to talk about that today. 21 00:01:21.480 --> 00:01:23.280 I'm going to talk about the dancing actually more than anything else. 22 00:01:23.600 --> 00:01:24.480 Absolutely. 23 00:01:24.480 --> 00:01:27.600 Breakdancing, I don't know what kind of dancing I'm very intrigued there. 24 00:01:28.560 --> 00:01:31.040 But more importantly, guys, I think just like just like me, 25 00:01:31.040 --> 00:01:32.760 I talk about family a lot in this show. 26 00:01:32.760 --> 00:01:34.720 He chairs the spending time of his family. 27 00:01:34.720 --> 00:01:37.760 He's a devoted husband and father to the three beautiful kids. 28 00:01:37.760 --> 00:01:40.560 So with that, guys, I'd like to welcome Teni to the show. 29 00:01:40.560 --> 00:01:42.360 My friend, how are you doing today? 30 00:01:42.360 --> 00:01:43.720 I'm living in a dream, Kevin. 31 00:01:43.720 --> 00:01:45.200 Thank you so much for having me. 32 00:01:45.200 --> 00:01:46.560 Thank you so much for having me. 33 00:01:46.560 --> 00:01:47.280 Excited to have you. 34 00:01:47.280 --> 00:01:50.880 Excited to chat with you and just learn a little bit more about you. 35 00:01:50.880 --> 00:01:53.200 Pull back the curtain and see what's under it. 36 00:01:53.280 --> 00:01:55.920 So you're with that being said, I gave that brief introduction. 37 00:01:55.920 --> 00:02:00.440 My friend, you know, I know there's that was condensed version of your background. 38 00:02:00.440 --> 00:02:01.440 Who you are. 39 00:02:01.440 --> 00:02:05.640 I know you got your start and cybersecurity prior to entering your career path 40 00:02:05.640 --> 00:02:06.880 into real estate investment. 41 00:02:06.880 --> 00:02:08.760 So why don't we want to pass back to you? 42 00:02:08.760 --> 00:02:10.520 Tell us for those that aren't familiar with you. 43 00:02:10.520 --> 00:02:12.240 Don't know you, your backstory. 44 00:02:12.240 --> 00:02:16.160 Tell us about who you are, you know, and how you ultimately found your way into real estate. 45 00:02:17.240 --> 00:02:18.280 Absolutely. 46 00:02:18.280 --> 00:02:20.160 Hey, Kevin, thank you so much. 47 00:02:20.160 --> 00:02:24.680 You know, I've been a supporter of your work and I've been following you for a while. 48 00:02:24.680 --> 00:02:27.080 We've been connected on LinkedIn for a long time. 49 00:02:27.080 --> 00:02:32.680 And I'm just so appreciated for the fact that we can at least get an opportunity to chat here today. 50 00:02:32.680 --> 00:02:35.800 So so thank you so much for that. 51 00:02:35.800 --> 00:02:43.800 But about me, I'm a young guy moved here to the US in 2010 for grad school. 52 00:02:43.800 --> 00:02:48.200 I went to Bowie State for grad school at Studies Cybersecurity. 53 00:02:48.240 --> 00:02:50.920 I'm from a little island in Nigeria called Bowie Island. 54 00:02:50.920 --> 00:02:53.120 If you want to Google it, you can check it out. 55 00:02:53.120 --> 00:02:55.320 But I'm an island boy. 56 00:02:55.320 --> 00:03:04.080 And all I wanted was an opportunity for me to do something different that a lot of people have not done in my family. 57 00:03:04.080 --> 00:03:07.560 Come here, get my education, and of course, build wealth. 58 00:03:07.560 --> 00:03:09.960 And of course, I say the United States is the land of opportunity. 59 00:03:09.960 --> 00:03:12.000 So I said, I'm coming to the US. 60 00:03:12.960 --> 00:03:17.880 Mom, dad, sisters, my family supported me. 61 00:03:17.880 --> 00:03:21.840 And gladly I graduated from Bowie State in 2012. 62 00:03:21.840 --> 00:03:27.640 Started working with the likes of Boeing and Deloitte, doing cybersecurity for them. 63 00:03:27.640 --> 00:03:33.040 And then in 2016, I had a back injury. 64 00:03:33.040 --> 00:03:36.760 And in that back injury, I was, again, is a fourth of my life. 65 00:03:36.760 --> 00:03:37.600 I was lifting weight. 66 00:03:37.600 --> 00:03:39.880 I was living, lifting heavy weights. 67 00:03:39.880 --> 00:03:43.800 Because I felt like I was too strong. 68 00:03:43.800 --> 00:03:46.400 But I wasn't using good posture. 69 00:03:46.400 --> 00:03:49.520 And because of that, I hurt my lower back and my fifth disc. 70 00:03:49.520 --> 00:03:50.920 So I was home for a little bit. 71 00:03:50.920 --> 00:03:52.840 I was working at Bowie at the time. 72 00:03:52.840 --> 00:03:57.840 And I had started thinking about my life and what I want to do. 73 00:03:57.840 --> 00:04:01.240 And so a lot of people that I'm listening right now, 74 00:04:01.240 --> 00:04:03.880 as you're growing up, a lot of the things that you picked up from your family, 75 00:04:03.880 --> 00:04:08.840 from your parents, that when you become an adult, those things kick in. 76 00:04:08.840 --> 00:04:14.240 So in 2016, I started having that edge of entrepreneurship. 77 00:04:14.240 --> 00:04:17.080 At that time, I didn't know where the status coming from. 78 00:04:17.080 --> 00:04:22.040 But now I know it was from my mom, because my mom has been an entrepreneur all our life. 79 00:04:22.040 --> 00:04:23.680 But I started having that edge. 80 00:04:23.680 --> 00:04:28.200 I went to school, went to school, got all the degrees and stuff. 81 00:04:28.200 --> 00:04:30.160 But I was like, I need to do something about business. 82 00:04:30.160 --> 00:04:32.000 I need to do something about business. 83 00:04:32.000 --> 00:04:35.640 And I started the financial services business. 84 00:04:35.640 --> 00:04:38.480 While I was doing that, I was selling life insurance. 85 00:04:38.480 --> 00:04:41.200 I was still doing my 95 job in cyber security. 86 00:04:41.200 --> 00:04:44.400 But I started the side gig, which is in life insurance. 87 00:04:44.400 --> 00:04:49.200 In that process, while I was doing that, I met one of my partners, Leslie. 88 00:04:49.200 --> 00:04:50.560 Leslie, I was awesome. 89 00:04:50.560 --> 00:04:53.720 We did director of operation at the exact capital and one of the founder. 90 00:04:53.720 --> 00:04:57.400 I met his wife while I was trying to sell life insurance. 91 00:04:57.400 --> 00:04:58.880 And I told her about insurance. 92 00:04:58.880 --> 00:05:00.160 She said, you have to meet my husband. 93 00:05:00.160 --> 00:05:03.600 So I went to their house, met the husband. 94 00:05:03.600 --> 00:05:07.120 And the husband was like, wow, I like the way you think. 95 00:05:07.120 --> 00:05:10.200 What do you do for personal development? 96 00:05:10.200 --> 00:05:13.840 And interestingly, both of us are reading the same book at the same time. 97 00:05:13.840 --> 00:05:17.360 Elon Musk autobiography, the first one that came up came out. 98 00:05:17.360 --> 00:05:18.960 That was the same book we were reading. 99 00:05:18.960 --> 00:05:21.840 And before that, I just finished reading Money Mass at the Game 100 00:05:21.840 --> 00:05:23.440 by Anthony Robin. 101 00:05:23.440 --> 00:05:24.760 He has read that book as well. 102 00:05:24.760 --> 00:05:26.560 So we kind of had some similarity. 103 00:05:26.560 --> 00:05:30.560 And we now moved from insurance to personal development. 104 00:05:30.560 --> 00:05:33.440 So he was looking for somebody that is in personal development. 105 00:05:33.440 --> 00:05:35.360 I was looking for somebody that was in personal development. 106 00:05:35.360 --> 00:05:37.960 That's not in our friend's circle. 107 00:05:37.960 --> 00:05:40.960 And then every Friday, we started meeting to play the cash flow board game 108 00:05:40.960 --> 00:05:46.000 by Robert Kusaki at the brewery. 109 00:05:46.000 --> 00:05:51.120 So that's where me and him, that's what they're talking about business and real estate. 110 00:05:51.120 --> 00:05:56.400 Robert Kusaki have the cash flow quadrant, the E, the B, the S, and the I, right? 111 00:05:56.400 --> 00:05:59.200 And you see, if you want to be wealthy, you have to be in the B and I. 112 00:05:59.200 --> 00:06:01.120 And that's a philosophy I bought. 113 00:06:01.120 --> 00:06:04.440 So I was like, well, I have my 905 as an employee. 114 00:06:04.440 --> 00:06:06.240 I'm building the business financial services. 115 00:06:06.240 --> 00:06:07.960 What I'm missing is real estate. 116 00:06:07.960 --> 00:06:11.080 The only property I had at that point was my house, my primary residence. 117 00:06:11.080 --> 00:06:11.960 And that was it. 118 00:06:11.960 --> 00:06:13.720 I have no clue about flips. 119 00:06:13.720 --> 00:06:18.120 I have no clue about host selling more family real estate, 120 00:06:18.120 --> 00:06:21.720 more about home park and nothing like I was clueless. 121 00:06:21.720 --> 00:06:24.000 So meeting Leslie, we started talking about real estate. 122 00:06:24.000 --> 00:06:29.000 And I was like, okay, let's just go in and do the regular single family home, 123 00:06:29.000 --> 00:06:32.800 do the burn method and then move on from there. 124 00:06:32.800 --> 00:06:35.240 That's what we set out to do. 125 00:06:35.240 --> 00:06:38.240 And what's Leslie in real estate at all at that point in time, 126 00:06:38.240 --> 00:06:40.880 was he actively running a real estate business? 127 00:06:40.880 --> 00:06:44.240 Yeah, he had a, he had some properties in Maryland at the time. 128 00:06:44.240 --> 00:06:45.240 Okay. 129 00:06:45.240 --> 00:06:47.560 So I was like, oh, this is my key to real estate. 130 00:06:48.560 --> 00:06:52.520 So he, he was like, yeah, we can partner up because I'm very outgoing. 131 00:06:52.520 --> 00:06:56.400 He's more on the intro outside of things. 132 00:06:56.400 --> 00:06:58.080 So he's like, you go look for the property. 133 00:06:58.080 --> 00:07:00.160 I will look at the numbers and all of that good stuff. 134 00:07:00.160 --> 00:07:03.160 So that's how we found our chemistry. 135 00:07:03.160 --> 00:07:05.640 And we decided to create exact capital. 136 00:07:05.640 --> 00:07:07.120 So we created the exact capital. 137 00:07:07.120 --> 00:07:11.400 And the reason why we created the exact capital was just to buy single family homes. 138 00:07:11.400 --> 00:07:14.400 And then later we realized that there's more something called 139 00:07:14.400 --> 00:07:15.600 more than family real estate. 140 00:07:15.600 --> 00:07:18.440 I've lived in more than family in apartments, 141 00:07:18.440 --> 00:07:20.120 but I never knew that I could buy one. 142 00:07:21.920 --> 00:07:28.480 So I bought and how we came about this realization was I bought a material for $9.99 online. 143 00:07:29.440 --> 00:07:32.200 I studied it and I was like, oh, man, there's a lot of advantages to doing more 144 00:07:32.200 --> 00:07:36.440 than family real estate compared to flips and wholesaling and all of these things. 145 00:07:36.440 --> 00:07:39.400 So what we not started doing was to educate ourselves significantly. 146 00:07:39.400 --> 00:07:44.320 We went and got the mentors went to the bootcamp, went to listen to all the podcasts. 147 00:07:44.320 --> 00:07:46.040 We did all of that. 148 00:07:46.040 --> 00:07:48.960 And that's how we not started launching exact capital. 149 00:07:48.960 --> 00:07:51.000 And there comes our first failure. 150 00:07:51.000 --> 00:07:54.960 So while we were doing this, we got very excited. 151 00:07:54.960 --> 00:07:57.240 We had what's called ignorant enthusiasm. 152 00:07:57.240 --> 00:07:59.480 We were very excited about our new venture. 153 00:08:00.720 --> 00:08:05.520 And in that process, we met a group of folks that say, hey, guys, come and risk cap it on our deal. 154 00:08:06.760 --> 00:08:08.920 So we went in, tried to risk cap it up for the deal. 155 00:08:08.920 --> 00:08:10.200 We couldn't raise a dime. 156 00:08:10.200 --> 00:08:14.680 We raised $0 and our very first deal that the access to come and risk cap it all on. 157 00:08:16.320 --> 00:08:19.960 And then for me, unless it was like, well, do we really believe in this? 158 00:08:19.960 --> 00:08:22.880 If we do, why don't we just invest in a capital? 159 00:08:22.880 --> 00:08:29.560 So in 2019, I invested my very first capital as an LP in the deal in Atlanta. 160 00:08:29.560 --> 00:08:31.760 And that deal has been distributing capital to me. 161 00:08:31.760 --> 00:08:34.160 It all returns to me since I invested in that deal. 162 00:08:34.160 --> 00:08:35.720 So I'm very, very happy about that investment. 163 00:08:35.720 --> 00:08:39.160 So I put my money where my mouth is, I'm like, you know what? 164 00:08:39.160 --> 00:08:40.280 I learned, I like this stuff. 165 00:08:40.280 --> 00:08:41.000 I'm invested. 166 00:08:41.000 --> 00:08:42.320 So I invested my capital. 167 00:08:43.600 --> 00:08:50.560 And then in 2020, this was in 2019 in 2020, the same group had an opportunity 168 00:08:50.560 --> 00:08:54.840 for us to risk cap it up again in DC to become a code GP as well. 169 00:08:54.840 --> 00:08:59.920 And then Leslie now took that deal to the hospital because Leslie is a CRN, 170 00:08:59.920 --> 00:09:03.480 CRN, and he works at a hospital. 171 00:09:03.480 --> 00:09:06.800 And there's this guy at the hospital, that is an orthopedic surgeon, 172 00:09:06.800 --> 00:09:09.960 Dr. Julius Ooni, he said, I'm going to take the deal to him. 173 00:09:09.960 --> 00:09:11.840 So he took the deal to him. 174 00:09:11.840 --> 00:09:14.720 And then Dr. Ooni looked at it and said, hey, guys, I don't want to be just an investor. 175 00:09:14.720 --> 00:09:16.200 I want to be a partner. 176 00:09:16.200 --> 00:09:19.640 So Dr. Ooni came in on board, became a CEO of the company. 177 00:09:19.640 --> 00:09:24.320 And three of us joined forces and launched an exact capital to what you see today. 178 00:09:24.320 --> 00:09:31.320 And that deal, we raised $775,000 and then from there we went, I raised $4.3 million. 179 00:09:31.320 --> 00:09:37.040 And then that's how we just started growing as a company where we have $168 million of assets right now. 180 00:09:37.040 --> 00:09:42.960 So that is the story, I know it's long, but I appreciate that and ultimately, 181 00:09:42.960 --> 00:09:45.520 but a lot of that happened in a very short span of time. 182 00:09:45.520 --> 00:09:50.360 I mean, realistically said 2019 when you made that first LP investment. 183 00:09:50.360 --> 00:09:55.920 And then that was shortly after I think the first fail attempt of you raising capital with the XI brand 184 00:09:55.920 --> 00:09:57.640 and then ultimately met Julius. 185 00:09:57.640 --> 00:10:02.840 And I think he said 2020 and had that first successful coGP deal, 186 00:10:02.840 --> 00:10:06.000 raised some capital and then, you know, often running from that point forward. 187 00:10:06.000 --> 00:10:08.080 So what, you know, I always try to, you know, 188 00:10:08.080 --> 00:10:12.120 try to reflect back on, I don't know, it's not a failure. 189 00:10:12.120 --> 00:10:13.920 It's because you guys, you learned quite a bit, right? 190 00:10:13.920 --> 00:10:17.400 Like you want to look back on that, on that first time you tried to raise capital, 191 00:10:17.400 --> 00:10:20.520 you didn't raise a dime, what'd you do wrong? 192 00:10:20.520 --> 00:10:23.360 I mean, like what, what, what were you able to identify that you did wrong? 193 00:10:23.360 --> 00:10:27.680 That the second time around that you decided to take a, maybe a different, you know, 194 00:10:27.680 --> 00:10:32.400 approach or a different strategy again, what, what do you feel were the failure points there? 195 00:10:33.800 --> 00:10:38.120 I think the philosophy of point for us that we detect that was we had a scarcity mindset. 196 00:10:39.120 --> 00:10:43.400 The scarcity mindset was, well, let's just learn about this stuff. 197 00:10:43.400 --> 00:10:45.200 Let's figure it out and go do it ourselves. 198 00:10:46.600 --> 00:10:47.840 That's the scarcity mindset. 199 00:10:47.840 --> 00:10:50.240 We did not tell enough people about what we're doing. 200 00:10:51.640 --> 00:10:52.920 That was the biggest failure. 201 00:10:53.920 --> 00:10:57.840 If anybody's listening, as long as you were able to, you have a dream, 202 00:10:58.640 --> 00:11:00.440 don't share it with people that are going to kill it. 203 00:11:00.440 --> 00:11:03.520 Share with people that will help you and I hope not to hurt it. 204 00:11:03.520 --> 00:11:05.520 And that doesn't have to be your family. 205 00:11:05.520 --> 00:11:07.040 That doesn't have to be your friends. 206 00:11:07.120 --> 00:11:10.120 It could be an other social network or other network of people that are 207 00:11:10.120 --> 00:11:11.960 liquefied to do exactly what you're looking to do. 208 00:11:12.600 --> 00:11:17.000 But one of the things that killed that whole effort was we did not open our 209 00:11:17.000 --> 00:11:18.960 mouth to tell a lot of people about what we're doing. 210 00:11:19.600 --> 00:11:24.120 So when we came back to raise capital, it was a shock to them. 211 00:11:24.120 --> 00:11:25.760 They were like, dude, how are you telling me about it? 212 00:11:25.760 --> 00:11:29.000 I think that deal was a, we bought that deal for 32 million. 213 00:11:29.880 --> 00:11:32.680 So we're like, well, we're raising capital for 32 million dollar deal. 214 00:11:33.040 --> 00:11:33.880 Come and invest. 215 00:11:34.360 --> 00:11:35.880 Tanny, you're an IT professional. 216 00:11:36.000 --> 00:11:37.840 You're doing real estate financial services. 217 00:11:37.840 --> 00:11:39.120 How come not you're a real estate investor? 218 00:11:39.120 --> 00:11:40.000 What's going on here? 219 00:11:41.240 --> 00:11:44.680 So a lot of people were not, is the trust because they didn't know about their 220 00:11:44.680 --> 00:11:45.520 skeptical, right? 221 00:11:45.520 --> 00:11:45.880 Yeah. 222 00:11:46.560 --> 00:11:47.880 100% skeptical. 223 00:11:48.400 --> 00:11:52.560 So the advice I couldn't teach anybody from that is from the time you have 224 00:11:52.560 --> 00:11:56.040 the idea, start telling people that you're doing that. 225 00:11:56.640 --> 00:11:59.920 So that's that would take time for it to get in the head that you're actually 226 00:11:59.920 --> 00:12:03.520 doing something related to real estate investing or anything that you want to 227 00:12:03.520 --> 00:12:04.120 do in life. 228 00:12:04.720 --> 00:12:08.400 And again, don't let the Nese to kill your dream. 229 00:12:08.880 --> 00:12:12.320 Look for people that can inspire you, that supports you and then you share that 230 00:12:12.320 --> 00:12:15.560 to them because if you're good share with someone, that people will probably kill it. 231 00:12:16.000 --> 00:12:19.320 So, so what outside of meeting Julia, it's in presenting him the deal. 232 00:12:19.320 --> 00:12:22.440 And ultimately, he came on board, he applied for some capital to the equation, 233 00:12:22.440 --> 00:12:25.600 had some relationships with other docs there inside the hospital. 234 00:12:25.800 --> 00:12:29.760 What were some of the active steps and measures that you took to, you know, 235 00:12:30.080 --> 00:12:32.680 just yell, yell, yell to the mountain tops, right? 236 00:12:32.680 --> 00:12:36.840 Yeldus Louder, the message of who you are, what you're doing and the 237 00:12:36.840 --> 00:12:38.200 opportunities that you're presenting. 238 00:12:38.880 --> 00:12:40.320 What are the different steps that you take? 239 00:12:40.880 --> 00:12:42.960 That is a really, really good question. 240 00:12:43.280 --> 00:12:45.840 One of the things we did was we just started doing more stuff. 241 00:12:45.840 --> 00:12:50.200 Like, you know, we started doing a monthly meetup where we, we hosted 242 00:12:50.200 --> 00:12:54.240 a monthly meetup in Maryland, we started going on podcasts, right? 243 00:12:54.240 --> 00:12:56.800 We started going on podcasts and sharing our story. 244 00:12:57.040 --> 00:12:58.440 We started talking about our inspiration. 245 00:12:58.440 --> 00:12:59.880 We started going to more events. 246 00:13:00.520 --> 00:13:04.320 We came up with a blue ocean strategy where we start thinking about going to 247 00:13:04.320 --> 00:13:07.960 events that houses our investors, right? 248 00:13:07.960 --> 00:13:10.840 Where the kind of investors who are looking to attract to investments, 249 00:13:11.160 --> 00:13:13.080 we started going to those kind of events as well. 250 00:13:13.360 --> 00:13:16.920 So, there's some of the things we started doing to help put the water out there. 251 00:13:17.160 --> 00:13:19.040 We said, I don't want to lose it. 252 00:13:19.040 --> 00:13:19.920 Let's unpack that one. 253 00:13:19.920 --> 00:13:22.480 What type of events outside of real estate investment events? 254 00:13:22.480 --> 00:13:26.680 What type of events, were they special association meetings for particular 255 00:13:26.680 --> 00:13:31.720 industries or where were you going to get in front of your respective investors? 256 00:13:32.280 --> 00:13:33.840 Kevin, that's a blue ocean strategy. 257 00:13:35.760 --> 00:13:37.920 The blue ocean strategy within that is our strategy. 258 00:13:37.920 --> 00:13:38.920 I'm not giving it to the public. 259 00:13:38.920 --> 00:13:39.480 I'm just kidding. 260 00:13:39.480 --> 00:13:40.240 Yeah. 261 00:13:40.240 --> 00:13:40.960 I'm just kidding. 262 00:13:41.280 --> 00:13:46.640 So this if you want to catch fish or you want to catch a particular kind of fish, 263 00:13:46.640 --> 00:13:48.000 you go to where those fish are. 264 00:13:48.680 --> 00:13:52.800 If you want to serve a particular group of people, go where they congregate. 265 00:13:53.560 --> 00:13:58.560 So we were our avatar that would serve medical professionals, medical doctors, 266 00:13:58.560 --> 00:14:01.600 CRNAs, folks in the healthcare industry. 267 00:14:02.120 --> 00:14:05.280 So what we're not still doing was to go to those shows. 268 00:14:05.600 --> 00:14:09.600 For example, they have like Nigerian physicians, 269 00:14:09.600 --> 00:14:12.400 I'm from the origin, I'm from Nigeria, Nigerian physician conference. 270 00:14:12.880 --> 00:14:14.720 A lot of people go there and they talk about medicine. 271 00:14:15.320 --> 00:14:18.280 We come there and talk about real estate, blue ocean. 272 00:14:18.560 --> 00:14:20.200 What is this guy talking about real estate? 273 00:14:20.600 --> 00:14:23.880 They have National Medical Association in the US. 274 00:14:24.120 --> 00:14:27.440 They have a conference they have to do medicine. 275 00:14:28.000 --> 00:14:30.640 We go there, we talk about real estate, blue ocean. 276 00:14:32.040 --> 00:14:34.600 We have CRNA conferences. 277 00:14:35.360 --> 00:14:38.960 We are talking about nursing, CRNA and all of that stuff. 278 00:14:39.480 --> 00:14:40.920 We go there and talk about real estate. 279 00:14:41.280 --> 00:14:44.480 So that now I started making people feel like, okay, who are these guys? 280 00:14:45.240 --> 00:14:48.960 You know, why they hear when everybody else is talking about something else? 281 00:14:49.400 --> 00:14:54.800 So that now has helped us significantly creating a lot of interest to what we're doing. 282 00:14:55.240 --> 00:15:00.120 And we're using education as a means to bridge the gap between where they are 283 00:15:00.320 --> 00:15:02.400 and where they potentially want to go. 284 00:15:03.160 --> 00:15:07.840 So in my journey, I've never met anybody that's not interested in real estate. 285 00:15:08.560 --> 00:15:10.840 But I've met a lot of people that are interested in real estate, 286 00:15:11.240 --> 00:15:13.600 but don't want to deal with the headache that comes to real estate. 287 00:15:13.720 --> 00:15:14.120 That's right. 288 00:15:14.240 --> 00:15:17.120 So what we're helping them do as a company is bridge that gap. 289 00:15:17.560 --> 00:15:18.840 So basically that's what we do. 290 00:15:19.400 --> 00:15:20.360 Yeah, no, I love that. 291 00:15:20.360 --> 00:15:21.200 I love every bit of that. 292 00:15:21.200 --> 00:15:22.480 And I love that blue ocean strategy. 293 00:15:22.480 --> 00:15:26.200 I mean, that's, that's absolutely, it's so simple, but so brilliant. 294 00:15:26.200 --> 00:15:29.320 So when you go to these events, these events, would you get a boot? 295 00:15:29.320 --> 00:15:33.080 Would you actually like sponsor a booth and get like, you know, something in the expo hall? 296 00:15:33.080 --> 00:15:38.600 Or were you just basically, you know, divide and conquer and, you know, rub elbows and start conversations? 297 00:15:39.040 --> 00:15:44.000 So initially we just go, but we now realize that to that off of you to be effective, 298 00:15:44.280 --> 00:15:48.320 you have to make people know your presence, like, I feel your presence. 299 00:15:48.320 --> 00:15:49.680 And one of the things we do is booth. 300 00:15:49.680 --> 00:15:53.200 We, you know, we have our own booth with the exact capital on there. 301 00:15:53.200 --> 00:15:56.200 If you've, you know, checked me a LinkedIn, you see some of the things on Instagram. 302 00:15:56.200 --> 00:15:58.280 You see some of the, the shows that we've been on. 303 00:15:59.320 --> 00:16:01.760 Also, we host like private events. 304 00:16:02.200 --> 00:16:06.200 So we can just say, you know, exact capital is hoping to host in a happy hour. 305 00:16:07.320 --> 00:16:09.720 At this date, at this place, at this particular time. 306 00:16:09.720 --> 00:16:13.960 So a lot of people show up and we're just interactive folks, right? 307 00:16:14.160 --> 00:16:21.600 Um, yeah, that, that's what's basically, and then sometimes we just sponsor the, the, the, the organization. 308 00:16:21.600 --> 00:16:27.080 So yeah, it's a thousand dollars, two thousand dollars, exact capital is the sponsor that you put us in their email. 309 00:16:27.080 --> 00:16:28.320 They put us in their brochure. 310 00:16:28.840 --> 00:16:29.080 Yeah. 311 00:16:29.080 --> 00:16:30.200 So we do a lot of this stuff. 312 00:16:31.520 --> 00:16:32.640 Would you say that? 313 00:16:32.640 --> 00:16:33.400 No, I love it. 314 00:16:33.400 --> 00:16:33.880 I love it. 315 00:16:33.880 --> 00:16:35.360 I love you sharing that again. 316 00:16:35.360 --> 00:16:39.280 It's just, it's, it's thinking out of the box and it's not rocket science, right? 317 00:16:39.280 --> 00:16:41.480 I mean, it's, it's a pretty straightforward approach. 318 00:16:41.640 --> 00:16:47.640 Um, but, but most folks don't, don't think about the, the very minor out of the box strategy, right? 319 00:16:47.640 --> 00:16:51.960 I've just going where the herd isn't and exactly, exactly, I love it. 320 00:16:52.160 --> 00:16:58.520 So curious to know and maybe you don't know the exact, now you probably have a general idea, like what percentage of your investor base, 321 00:16:58.520 --> 00:17:02.640 those that are actively in your deals today are made up of medical professionals. 322 00:17:02.640 --> 00:17:04.760 Is it the majority, majority? 323 00:17:05.120 --> 00:17:05.400 Okay. 324 00:17:06.120 --> 00:17:08.240 And the reason why those at least that's listening. 325 00:17:08.240 --> 00:17:13.120 I mean, seriously, like that, and there's hundreds of different industries that you could take this approach with, right? 326 00:17:13.120 --> 00:17:13.640 Yes. 327 00:17:13.640 --> 00:17:13.680 Yes. 328 00:17:13.680 --> 00:17:20.560 Where there's plenty of high net worth individuals that are, you know, uh, professionals within that industry that I guarantee there's not a 329 00:17:20.560 --> 00:17:25.600 another booth there at their industry events that exactly an investment opportunity. 330 00:17:25.600 --> 00:17:27.520 You know, so I love every bit of that. 331 00:17:27.840 --> 00:17:29.400 And this is the principle behind it. 332 00:17:29.480 --> 00:17:31.560 It's commonality, right? 333 00:17:32.120 --> 00:17:32.760 I see you. 334 00:17:32.760 --> 00:17:34.040 He's an orthopedic surgeon. 335 00:17:34.200 --> 00:17:35.240 Let's just see RNA. 336 00:17:35.240 --> 00:17:36.720 They're putting the medical space. 337 00:17:36.720 --> 00:17:40.480 They understand the challenges that a lot of medical professionals go through. 338 00:17:41.160 --> 00:17:43.320 They understand the long hours that they work. 339 00:17:43.680 --> 00:17:45.040 They understand all of these things. 340 00:17:45.040 --> 00:17:48.120 And they're like, okay, these are the same problems that I faced. 341 00:17:48.680 --> 00:17:51.320 What if we can find a solution and help you guys solve that problem? 342 00:17:51.800 --> 00:17:52.440 And that's how it was. 343 00:17:52.440 --> 00:17:56.520 So everybody that's listening today, you got to figure out who you want to serve. 344 00:17:56.920 --> 00:17:58.160 That is the number one step. 345 00:17:58.480 --> 00:18:00.920 You have a product, who do I want to serve? 346 00:18:01.400 --> 00:18:04.360 And then once you find where you want to serve, you got to go to where they are. 347 00:18:04.720 --> 00:18:07.120 And then go there and then some of them is as simple as that. 348 00:18:08.400 --> 00:18:08.680 Yeah. 349 00:18:08.680 --> 00:18:09.600 Now I love that. 350 00:18:09.600 --> 00:18:10.200 That's great. 351 00:18:10.240 --> 00:18:11.320 Appreciate you sharing that, buddy. 352 00:18:11.320 --> 00:18:18.040 Um, I want to talk about basically your, your guys is business model, your strategy, um, 353 00:18:18.040 --> 00:18:19.400 in two parts of that. 354 00:18:20.360 --> 00:18:24.800 The first part being obviously capital was readily flowing in 2020. 355 00:18:24.800 --> 00:18:26.280 Obviously you guys got off running. 356 00:18:26.280 --> 00:18:28.160 You know, there's lots of liquidity in the market. 357 00:18:28.160 --> 00:18:32.400 Interstrates, you know, hidden all time low late 2020 and, and stayed at an all time 358 00:18:32.400 --> 00:18:36.880 historical low for, for a number of years before starting to work their way back up. 359 00:18:36.880 --> 00:18:39.320 Well, fairly quickly in late 2022. 360 00:18:39.320 --> 00:18:42.560 And so, you know, quite a bit of volatility over the last two years. 361 00:18:42.560 --> 00:18:46.480 But, you know, quite a, a bull run for a couple of years prior to that. 362 00:18:46.480 --> 00:18:51.960 And so just curious to know, um, you know, what the business, you know, I guess how 363 00:18:51.960 --> 00:18:57.200 the business differs today than maybe what it was when you guys first kicked it off for 364 00:18:57.240 --> 00:18:58.040 the first couple of years. 365 00:18:58.040 --> 00:18:59.120 I know you're in multifamily. 366 00:18:59.120 --> 00:19:00.760 You're still doing value and multifamily. 367 00:19:00.760 --> 00:19:04.160 You shared some basic details of, uh, of a deal you guys are working on right now. 368 00:19:04.160 --> 00:19:06.720 We'd love to, you know, to go through that here in a few minutes. 369 00:19:06.720 --> 00:19:10.680 But just curious as to what those last four years have looked like and how you guys, 370 00:19:10.680 --> 00:19:14.600 more specifically, how you've been able to navigate, um, some of the uncertainty and 371 00:19:14.600 --> 00:19:16.400 volatility that's happened in a marketplace. 372 00:19:17.520 --> 00:19:18.680 That's a really good question. 373 00:19:18.760 --> 00:19:23.000 Um, yeah, it's been challenging for the last two years. 374 00:19:24.200 --> 00:19:25.520 Isn't really challenging. 375 00:19:26.000 --> 00:19:30.840 Challenging on the outside or operation side or, or both everything. 376 00:19:31.320 --> 00:19:31.640 Yeah. 377 00:19:31.640 --> 00:19:34.520 It's been challenging on the, we acquiring deals. 378 00:19:34.920 --> 00:19:36.040 It's been challenging. 379 00:19:36.040 --> 00:19:37.080 It's a capital. 380 00:19:37.400 --> 00:19:39.720 He's been challenging, managing deals. 381 00:19:40.120 --> 00:19:42.680 Um, it's been a lot of challenge. 382 00:19:43.160 --> 00:19:48.080 But we are very, uh, we have a, what about COVID is tenacity. 383 00:19:48.560 --> 00:19:52.400 So it persists, um, amongst any adversity, right? 384 00:19:53.040 --> 00:19:57.240 Um, so doing 20, 2019, when we started buying deals. 385 00:19:57.240 --> 00:20:03.040 So in 2019, we invested as LP in 2020, we did two deals. 386 00:20:03.520 --> 00:20:07.960 We did one deal, uh, where we risk capital on a deal in DC. 387 00:20:08.440 --> 00:20:11.800 2021, we bought two, we invested in two deals. 388 00:20:11.800 --> 00:20:14.840 One, we bought that lead sponsor and we invested another group. 389 00:20:15.680 --> 00:20:18.680 2022, we did four transactions. 390 00:20:19.680 --> 00:20:24.040 We bought a $60 million deal and then we sold one of our deals. 391 00:20:24.640 --> 00:20:28.600 We projected 18%, we give them 29.9% return and investments. 392 00:20:28.840 --> 00:20:30.240 So we exceeding one of our deals. 393 00:20:30.600 --> 00:20:31.760 Markets was hot. 394 00:20:32.560 --> 00:20:39.320 Uh, we actually closed our last deal in 2022, December 30th of 2022. 395 00:20:39.440 --> 00:20:40.400 Yeah, tough time. 396 00:20:40.400 --> 00:20:44.440 And then very, very perfect timing and everything was perfect. 397 00:20:44.920 --> 00:20:50.680 And then 2023, the whole market, uh, dried out, you know, and we didn't stop. 398 00:20:51.360 --> 00:20:54.560 So we did not, what we do is we have a machine from the acquisition side. 399 00:20:54.760 --> 00:20:56.640 We don't ever stop on the right in deals. 400 00:20:57.240 --> 00:20:59.120 We were still going to our cadence. 401 00:20:59.120 --> 00:21:03.840 So we implemented this thing called traction in our company, entrepreneur operating system. 402 00:21:05.120 --> 00:21:09.440 Where we have metrics that we track every week and we have meetings every week that we track that. 403 00:21:09.960 --> 00:21:14.960 So on that acquisition side, we are looking, supposed to review 56 deals a week. 404 00:21:15.440 --> 00:21:23.200 How many 56, 56, supposed to review 26 says deals and we on the right, seven of them. 405 00:21:23.800 --> 00:21:25.120 Okay, I got you. 406 00:21:25.120 --> 00:21:25.640 I got you. 407 00:21:25.640 --> 00:21:25.880 Okay. 408 00:21:25.880 --> 00:21:29.640 So there's a large portion that get through our cows and say, exactly. 409 00:21:29.640 --> 00:21:30.840 How's that even possible? 410 00:21:32.400 --> 00:21:36.880 So in that time frame, we're going and looking at deals and then with something we have, 411 00:21:36.880 --> 00:21:41.680 that's called the slip test, what we basically look at the, the population, 412 00:21:41.680 --> 00:21:45.040 the income, the school, just the fundamental stuff. 413 00:21:45.520 --> 00:21:49.000 And if you see if it passes it, then we take it to on the right and we'll download the financials 414 00:21:49.000 --> 00:21:50.680 and then go through on the right in process, right? 415 00:21:52.000 --> 00:21:59.320 So we never stopped that from 2022, 2023, January, till today. 416 00:22:00.480 --> 00:22:04.560 So that means we're still in front of the brokers having conversations, saying, 417 00:22:04.560 --> 00:22:05.640 hey, we're interested in the deal. 418 00:22:05.640 --> 00:22:06.720 We're interested in the deal. 419 00:22:07.160 --> 00:22:10.960 And that has put us in the mind of the brokers for a long period of time. 420 00:22:11.640 --> 00:22:16.640 So when this opportunity came up, we beat that on the deal and we finally won it 421 00:22:16.640 --> 00:22:20.560 because we've been consistent over a long period of time. 422 00:22:20.560 --> 00:22:23.560 We told the brokers, we're not looking to stay on the sideline. 423 00:22:24.080 --> 00:22:25.160 We're going to be active. 424 00:22:26.000 --> 00:22:30.800 And the philosophy behind that was when everybody's scared, that's when you want to jump in. 425 00:22:30.800 --> 00:22:31.320 That's right. 426 00:22:31.360 --> 00:22:33.960 And of course, you got to minimize the risk significantly. 427 00:22:33.960 --> 00:22:36.200 But that's what we've basically done. 428 00:22:37.680 --> 00:22:39.000 Yeah, that's fantastic. 429 00:22:39.000 --> 00:22:40.560 I'd love to dissect this deal a little bit. 430 00:22:40.560 --> 00:22:45.080 Just, you know, I guess what, first and foremost, you know, what attracted you to it. 431 00:22:45.080 --> 00:22:48.280 I know that you're buying a discount from, you know, I guess what, you know, peak 432 00:22:48.280 --> 00:22:50.760 valuation might have been in 2022. 433 00:22:50.760 --> 00:22:53.040 But more specific, what's the business plan look like? 434 00:22:53.040 --> 00:22:55.640 It, you know, is it, uh, is it a light value add? 435 00:22:55.640 --> 00:22:57.680 Is it a heavy value, heavy value add? 436 00:22:58.520 --> 00:23:01.840 You know, what percentage of the use you guys intend to to renovate? 437 00:23:01.840 --> 00:23:06.880 What type of, you know, rent, maybe premiums, uh, you know, exists there once the units are turned. 438 00:23:07.280 --> 00:23:10.960 Just generally speaking, if he gives like maybe the 10,000 foot view of the business plan, 439 00:23:10.960 --> 00:23:13.280 this particular deal, uh, that'd be helpful. 440 00:23:14.560 --> 00:23:15.160 Sounds good. 441 00:23:15.160 --> 00:23:15.760 I can share that. 442 00:23:15.760 --> 00:23:16.760 I need the same business part. 443 00:23:16.760 --> 00:23:18.560 We've executed in a lot of our deals. 444 00:23:19.120 --> 00:23:27.240 This deal in 2022, it was valued at 60 million, 60 million, $700,000. 445 00:23:27.560 --> 00:23:28.000 Mm hmm. 446 00:23:28.960 --> 00:23:33.120 That's what colleagues value this deal as a valuation of this deal. 447 00:23:33.120 --> 00:23:37.280 We're buying it at 49.1 million dollars today, right? 448 00:23:38.000 --> 00:23:41.680 Two, we have another deal in the same market, 449 00:23:42.800 --> 00:23:45.040 during the different county, but in the same market. 450 00:23:45.040 --> 00:23:48.320 We do, one of the deals we bought in 2022 is in the Cap County, 451 00:23:48.320 --> 00:23:51.120 which is not such such a great county in Atlanta. 452 00:23:51.760 --> 00:23:53.280 This deal is in Gwyneth County. 453 00:23:54.240 --> 00:23:57.040 And if anybody knows Atlanta, Gwyneth County is one of the, 454 00:23:57.040 --> 00:23:59.920 the fastest Gwyneth County in the state of Georgia, right? 455 00:24:00.240 --> 00:24:01.840 So we're buying this deal in Gwyneth County. 456 00:24:02.320 --> 00:24:07.120 Another thing I would like to about this deal is the, the debt that we're assuming on the loan. 457 00:24:07.120 --> 00:24:11.040 And if anybody's, you know, inter-relisted, they don't know that one of the rules of real estate 458 00:24:11.040 --> 00:24:13.760 is you want to buy with a long-term debt. 459 00:24:13.760 --> 00:24:18.720 So we have a fixed rate debt at a 4.74% locked into the end of our business plan. 460 00:24:19.440 --> 00:24:21.600 And you asked about our business plan, what is that? 461 00:24:21.680 --> 00:24:26.400 It's a light value add. We're spending about between 13 to $14,000 a unit in renovation. 462 00:24:27.120 --> 00:24:31.680 And the same kind of renovation that we're about to do on this project, 463 00:24:31.680 --> 00:24:35.200 we've done it on our other project in the Cap County that's 14 minutes away. 464 00:24:35.200 --> 00:24:39.680 So we understand that some market, how much is going to cost us to do the renovation? 465 00:24:39.680 --> 00:24:45.280 And we're looking to renovate about between 85 to 105 units out of the 268 unit of the property 466 00:24:45.280 --> 00:24:46.640 that we're buying. Got it. 467 00:24:47.760 --> 00:24:49.840 That's exciting. So and then I know we talked about this before. 468 00:24:49.840 --> 00:24:56.640 We start recording is we expressed, you know, our, you know, just I guess the additional hurdles 469 00:24:56.640 --> 00:25:00.400 that exist with raising capital in today's environment. I think a lot of it, you know, it's, 470 00:25:00.400 --> 00:25:04.720 you know, there's been a lot of economic instability, you know, we had an election coming up. 471 00:25:04.720 --> 00:25:08.000 No one knew what was going to happen there. Lots of retail investors. 472 00:25:08.000 --> 00:25:12.720 If we're speaking to the retail investor group, there's been, you know, lots of challenging 473 00:25:13.680 --> 00:25:16.080 deals that have gone sideways. 474 00:25:16.640 --> 00:25:19.680 You know, folks have lost money. There's been lots of capital calls. 475 00:25:19.680 --> 00:25:21.840 Yeah. Yeah. Yeah. There's been lots of challenges out there. 476 00:25:21.840 --> 00:25:24.480 And I think it's, it's made folks skittish as well. 477 00:25:25.040 --> 00:25:25.520 Absolutely. 478 00:25:25.520 --> 00:25:29.840 So for all those reasons, it's been a little bit more challenging to raise capital, 479 00:25:29.840 --> 00:25:33.840 at least from the retail world. And you know, we're not in the institutional side. 480 00:25:33.840 --> 00:25:38.640 But I know that as well, it's also the equal amounts of a challenge on the institutional side. 481 00:25:38.640 --> 00:25:41.280 Although that's not absolutely our target audience. 482 00:25:42.240 --> 00:25:45.680 Just, I know that you guys, this is a big, this is a big raise for you guys. 483 00:25:45.680 --> 00:25:49.280 You guys are making great progress. But just, are you having the same experience with 484 00:25:49.280 --> 00:25:53.520 raising capital, just having to work probably five times as hard to get the same amount of capital 485 00:25:53.520 --> 00:25:59.760 through the door? One million percent. Yes. It's, it's challenging. 486 00:25:59.760 --> 00:26:04.560 It's challenging. You guys are doing like anything that you're doing that's unique in nature 487 00:26:04.560 --> 00:26:09.200 that that again, just thinking outside the box, anything that you guys have instituted that 488 00:26:09.280 --> 00:26:13.040 maybe you hadn't done two years ago when capital was more readily available. 489 00:26:13.600 --> 00:26:21.920 Yes. A lot of things. So first, the highest deal we've done as lead sponsor 490 00:26:22.560 --> 00:26:29.200 was $25 million deal. That we did as a capital was lead sponsor. And we found the deal 491 00:26:29.200 --> 00:26:32.400 on the road, put it under contract, closed it, and all of that good stuff, right? 492 00:26:32.800 --> 00:26:36.880 For us four or two years later, we jumped to $50 million deal. 493 00:26:38.160 --> 00:26:42.400 In that whole two years period, we were building, you know, investor database, 494 00:26:42.400 --> 00:26:47.280 we're using the blue ocean strategy. But there was a lot of hypothesis that we did not test. 495 00:26:48.320 --> 00:26:51.760 One, we said we've gone to all of these conferences, we have all of these investors. 496 00:26:52.400 --> 00:26:58.000 We did not test to see if they were ready to invest capital when we have the deal, right? 497 00:26:58.640 --> 00:27:02.400 We did not understand who are the guys that are actually ready to deploy capital right away. 498 00:27:02.960 --> 00:27:06.400 So we had an assumption that we have all these investors and boom once we have a deal, 499 00:27:06.400 --> 00:27:10.320 because we've not had a deal in a while, boom, everybody's just going to go and start swinging 500 00:27:10.320 --> 00:27:17.040 capital to us. Two, we had election, where there's a lot of uncertainty in the economy, 501 00:27:17.760 --> 00:27:22.960 interest rates was going up, right? So just a whole lot of things and a lot of uncertainty 502 00:27:22.960 --> 00:27:27.280 and a lot of fear in the economy kind of made everybody want to pause. Does that mean there was 503 00:27:27.280 --> 00:27:31.760 no capital? Absolutely. There was capital. Everybody had money. But everybody wanted to pause and see 504 00:27:31.760 --> 00:27:39.040 what's going to happen. So we got the deal during this period when there was a lot of uncertainty. 505 00:27:39.040 --> 00:27:44.000 And that's what that's what kind of stipend our progress when it comes to the race. Now, 506 00:27:44.000 --> 00:27:50.960 what are some of the things we were doing today that's helping us grow? Personally, as an individual, 507 00:27:51.520 --> 00:27:56.320 I've grown because of this deal I've grown significantly in terms of my skill set. 508 00:27:57.120 --> 00:28:03.760 I thought I knew how to sell. Now I have to kind of take myself selling my sales skill up the 509 00:28:03.760 --> 00:28:07.920 notch. I have to come and develop myself again, professional development because that's key, right? 510 00:28:08.640 --> 00:28:13.040 So one of the things we didn't have was a good sales process. Just like we know before we joined 511 00:28:13.040 --> 00:28:17.040 the call, you told me about some of the things you guys did from the top of the funnel all the way 512 00:28:17.040 --> 00:28:22.480 to the bottom. We didn't have a whole good process with scheduling calls, getting on calls, 513 00:28:22.480 --> 00:28:27.760 following up on calls, asking for people to actually invest. We used to just be like, 514 00:28:27.760 --> 00:28:34.320 hey, you know, this is the deal. Go check it, check it out. And that's it. Whereas people they buy 515 00:28:35.360 --> 00:28:42.400 with emotion, right? And they justify it to logic, right? And if you leave them, they'll use just 516 00:28:42.400 --> 00:28:49.520 that fear logic analysis, and they will take action, any action. So you as the investor, 517 00:28:49.520 --> 00:28:55.920 or you as the salesperson, or who is providing the opportunity, you have to be able to educate them 518 00:28:55.920 --> 00:29:01.680 about what this can do for them over a long period of time. Anyways, the court long story short 519 00:29:01.680 --> 00:29:07.840 viewed our whole sales process, sales process, marketing. Some of the things we were thinking 520 00:29:07.840 --> 00:29:12.480 were working marketing wasn't working. We had to hire a new set of people to market it. 521 00:29:13.440 --> 00:29:18.480 Because the work that what actually helped us did is 25 million dollar deal, we thought that 522 00:29:18.480 --> 00:29:23.520 would help us do a 50 million dollar deal is a whole completely different ballgame. So those are 523 00:29:23.520 --> 00:29:29.600 some of the things that we've learned. Also, another thing that we did not factor in was institutional 524 00:29:29.600 --> 00:29:36.960 capital is, hey, do we need institutional capital? And what would it take to attract institutional 525 00:29:36.960 --> 00:29:42.800 capital for a 50 million dollar deal? We did not know all of that stuff. With this particular deal, 526 00:29:42.800 --> 00:29:47.200 we've been able to test all of these hypothesis now, see what works and what doesn't work. So I 527 00:29:47.200 --> 00:29:51.440 will stop this if you have more questions. No, that's great. I appreciate that. No, it's I mean, 528 00:29:51.440 --> 00:29:56.800 just you're taking the necessary steps and and and testing new, you know, new theories as to, 529 00:29:56.800 --> 00:30:00.720 you know, how do we get there? Right? Like how we got there before isn't going to work this time 530 00:30:00.720 --> 00:30:06.000 around. This deal is literally double the size of the largest last deal that you did, and now 531 00:30:06.080 --> 00:30:11.200 capital is only five times harder to raise than what it was back then. So no, I appreciate that 532 00:30:11.200 --> 00:30:15.120 transparency. Yeah, it's just it's one of those things that you could push, you'll put your back 533 00:30:15.120 --> 00:30:19.200 into the corner. And ultimately, you got to find you'll fight your way out of it, right? And 534 00:30:19.200 --> 00:30:23.520 find find the right path. And the path that you took last time is probably not the right one. 535 00:30:23.520 --> 00:30:25.440 You're going to hit it. Absolutely. Yeah. 536 00:30:27.440 --> 00:30:31.040 Would be curious and then I'm going to be conscious of everyone's timing your time as well. 537 00:30:31.600 --> 00:30:35.520 But would be curious as far as like underwriting, just general assumptions, how they might have 538 00:30:35.520 --> 00:30:40.640 changed, maybe on this deal versus maybe a deal that you guys did two years ago, like, you know, 539 00:30:40.640 --> 00:30:45.520 rent growth, for example, like what are you guys typically putting it for, you know, annual 540 00:30:45.520 --> 00:30:50.480 rent growth and then, you know, on the exit, what does that exit cap rate look like? I mean, 541 00:30:50.480 --> 00:30:55.840 those are some of the rent growth is easier to, you know, to kind of pin your thumb on. 542 00:30:56.800 --> 00:31:00.800 Exit caps, a little bit more challenging, right? Especially like looking five years out. 543 00:31:01.680 --> 00:31:06.800 You know, what does that exit cap rate assumption look like and, you know, how do you guys arrive at 544 00:31:06.800 --> 00:31:13.120 that? That's a really good question. So for rent growth, and these are again, these are some of the 545 00:31:13.120 --> 00:31:19.280 things we do for when I sniff test before we will put the deal on our contract. This particular 546 00:31:19.280 --> 00:31:28.000 area is looking at a 15% rent growth between 2024 and 2028. So we're looking at about 3% 547 00:31:28.000 --> 00:31:32.080 rent growth, right? And this is all of this information I'm sharing right now is open to you 548 00:31:32.080 --> 00:31:38.000 in co-star if you have access to co-star. So we depend on co-star and of course we have market 549 00:31:38.000 --> 00:31:42.560 knowledge, which many we have, we work with asset liven, which is the property management company 550 00:31:42.560 --> 00:31:47.920 we use. So they have market knowledge. So on this particular asset market and this particular 551 00:31:47.920 --> 00:31:52.640 property, they're seeing the rent growth. See, the property management actually wanted us to do 552 00:31:52.640 --> 00:31:57.840 5% rent growth on the project, because that's what they've been seeing historically. But we brought 553 00:31:57.840 --> 00:32:04.640 it down to 3%. And then from a cap rate standpoint, we're going at a 5.3% cap rate. I will keep 554 00:32:04.640 --> 00:32:13.840 it flat and exit at a 5.3 cap rate, 5.3% cap rate. Though co-star is saying at 2029, we already know 555 00:32:13.840 --> 00:32:18.000 this interest is usually trend with cap rate. Interest is go that cap rate usually follow along. 556 00:32:19.040 --> 00:32:27.360 In 2029, co-star is saying cap rate is going to be at 4.6%. If we use that model, the return 557 00:32:27.360 --> 00:32:30.720 metrics just shoot up significantly for investors. But we're saying no, no, no, we're going to stick 558 00:32:30.720 --> 00:32:36.000 conservative. We're going to leave our entry cap rate and exit cap rate the same. And that is 559 00:32:36.000 --> 00:32:42.400 what we're using. Before now, and of course the debt that we're assuming on this loan is a 4.74% 560 00:32:42.400 --> 00:32:47.760 so we're positive going in. Before now, the way we own the right deals, we use 10 business points 561 00:32:47.760 --> 00:32:54.480 every year. And that's how we project it. But based on where this market is, where this project is 562 00:32:54.480 --> 00:32:59.200 and the debts that we're using, we're keeping the capital flat on the 5.3% cap rate, which is the 563 00:32:59.200 --> 00:33:04.240 market cap rate. Yeah. No, God, I appreciate you sharing that. Is the plan? What's the long-term 564 00:33:04.240 --> 00:33:09.520 strategy looks like? It looks like it's the plan that just exit out at the whenever the current 565 00:33:09.520 --> 00:33:13.920 loan comes due or will you guys recap it and put a new loan in place and hold it for a longer term. 566 00:33:14.560 --> 00:33:20.480 So the goal is to come in value add. First, I appreciate an exit in 2029. Got it. Got it. Okay. 567 00:33:20.480 --> 00:33:24.160 Fantastic, man. Well, that's exciting. I'm excited for you guys. Thank you so much. 568 00:33:24.160 --> 00:33:27.920 Thank you so much. Now it's fantastic, man. Just again, you want to be blind, 569 00:33:27.920 --> 00:33:32.160 buying when there's blood in the streets and again, just going the opposite direction of the herd. 570 00:33:32.160 --> 00:33:35.920 And most of the herd is on the sidelines right now. Absolutely. It's a good time to be 571 00:33:35.920 --> 00:33:40.320 buying. We've literally had our best two years last year and this year. Just wow, you know, 572 00:33:40.880 --> 00:33:45.120 going gang busters, looking at a lot of deals to find the ones that actually, you know, fit, 573 00:33:45.120 --> 00:33:49.760 you know, fit the criteria and check all the boxes. Absolutely. But again, you know, 574 00:33:49.760 --> 00:33:55.680 we were a little bit more skittish in 2020, 2021, 2022. We bought, but we didn't. We did buy 575 00:33:55.680 --> 00:33:59.840 as near as much of our competition. You know, lots of our competitors were scaling to the moon. 576 00:33:59.840 --> 00:34:03.200 But now they're not positioned to buy and we're in a position to buy. Let's work that with our 577 00:34:03.200 --> 00:34:07.200 riders and I had a crystal ball and that was going to happen. But ultimately, what I couldn't do, 578 00:34:07.200 --> 00:34:10.240 I had a hard time making things under right back then. You know, I just, I wouldn't look into 579 00:34:10.240 --> 00:34:15.200 those places. I don't know what I'm missing. And I, and I, and I, and I know that there's plenty 580 00:34:15.200 --> 00:34:19.520 smarter folks than I, but you know, it's just, you know, we were never, we've never make it even to 581 00:34:19.520 --> 00:34:23.040 final and best offers. And so a lot of the deals we bought were direct to owner things that we've 582 00:34:23.040 --> 00:34:27.760 been building relations for years. So again, we did really well in those other years, but, you know, 583 00:34:27.760 --> 00:34:32.320 we've scaled significantly over the past two years when others haven't. And it can only really 584 00:34:32.320 --> 00:34:36.800 attribute that to just being disciplined and kind of just sticking to our guns and not really 585 00:34:36.800 --> 00:34:41.200 falling into the, you know, the, the, the, the FOMO or the fear missing out, right? Which I think, 586 00:34:41.200 --> 00:34:47.440 the shiny objects and draw, you know, I think it's just inherent nature, you know, for, for, for most 587 00:34:47.440 --> 00:34:53.920 human beings. Like everyone's got, you know, a, a, a, a little bit, at least a little bit of FOMO, 588 00:34:53.920 --> 00:34:57.680 right? Of things going on around them. They're like, come on, man, what, what, what, what am I, 589 00:34:57.760 --> 00:35:00.560 what am I missing here? Like how's everyone else, you know, 590 00:35:00.560 --> 00:35:07.280 I can't make the economics make sense. And so the only thing that really made me feel good about 591 00:35:07.280 --> 00:35:10.880 all my decisions, and I feel really good about them today. We don't have, we have no deals that 592 00:35:10.880 --> 00:35:14.880 have, you know, variable right debt. We have no debt maturities. We have, you know, anyway, 593 00:35:14.880 --> 00:35:18.640 all of our deals, we continue made, you make distributions. We never stop making distributions, 594 00:35:18.640 --> 00:35:24.720 they're making us beautiful and all of our legacy funds. But the one, we started, we saw the number 595 00:35:24.880 --> 00:35:31.200 of our properties, we kind of pruned our portfolio out in 2020 and 2021, in 2020. You know, 596 00:35:32.160 --> 00:35:37.200 again, but only, only because we weren't interested in really selling, but, you know, 597 00:35:37.200 --> 00:35:41.600 let's elicit offers will come in. And, you know, if I could identify, number one, I knew the 598 00:35:41.600 --> 00:35:46.080 property better than anyone else we love for a number of years. And while again, there's always 599 00:35:46.080 --> 00:35:49.760 a better operator. There's always someone that can squeak a little bit more value out of something. 600 00:35:49.760 --> 00:35:53.920 If I couldn't even remotely make sense of an offer that was being presented to me, and I could 601 00:35:53.920 --> 00:35:58.880 realize, you know, maybe eight to 10 years worth of earnings right there. Then and now, 602 00:35:58.880 --> 00:36:03.280 they're like, okay, let's, let's, let's, let's get rid of it. Yeah, absolutely. Like, like, 603 00:36:03.280 --> 00:36:08.400 it doesn't make sense for us to hold on to it. Oh, don't worry. You realize, you know, nearly, 604 00:36:08.400 --> 00:36:12.400 you know, eight to 10 years worth of earnings right now. And I have no idea how they're, 605 00:36:12.400 --> 00:36:16.560 you know, getting to that number, you know, we know better than anyone else. So, anyway, 606 00:36:17.440 --> 00:36:21.360 always be everyone the best with their endeavors and, but I'm not sure, I'd love to know how some 607 00:36:21.360 --> 00:36:26.880 of those deals are working out now. But who knows? But it did is, I think we, people just have to 608 00:36:26.880 --> 00:36:30.720 stay disciplined, right? That's right. That's it. The fundamentals never, I mean, the general 609 00:36:30.720 --> 00:36:35.360 fundamentals don't change. Don't change. Right. Like the most changes rates change. But the general 610 00:36:35.360 --> 00:36:40.480 fundamentals don't change. And so anyway, I think it's, and at the end of the day, really say, 611 00:36:40.480 --> 00:36:45.280 I always, I always argue it's a real stage. It's, it's a long term game. Like, it's not. It is. 612 00:36:45.280 --> 00:36:49.120 You can make, you can make quick pops. You can get in, get out. We've all had those deals. And, 613 00:36:49.200 --> 00:36:52.160 and evidently, the longer you're in the business, you'll, you'll have many of those deals come 614 00:36:52.160 --> 00:36:56.880 your way in due time. Like, you'll have the, you'll get in, get out quick, you know, exceed 615 00:36:56.880 --> 00:37:02.160 projected returns, you're like literally by 2x. But then most of the deals you do, it's more of a 616 00:37:02.160 --> 00:37:07.040 long term slow and steady, you know, steady always wins the race. And, and I've been at this now 617 00:37:07.040 --> 00:37:11.920 for more than 20 years. And so I have now, now I can honestly say, I've been through one full cycle. 618 00:37:11.920 --> 00:37:14.880 I don't know where we're at in this current cycle. I'd like to say, I think we're at the bottom. 619 00:37:14.960 --> 00:37:19.600 I think we're at the trough. So, yeah, age myself by saying that because in the next year or 620 00:37:19.600 --> 00:37:24.240 two, I'll be able to say that I truly went through two full real stage cycles. Yeah, that's, 621 00:37:24.240 --> 00:37:27.680 I don't know if that's good or not. But in any of that, I feel like I've learned a little bit 622 00:37:27.680 --> 00:37:32.480 along the way. So with that, that's, that's a beautiful part about it. Like, you know, you've, 623 00:37:32.480 --> 00:37:36.560 and that's what that's what's helping because so I want to have an experience. Nobody can 624 00:37:36.560 --> 00:37:40.000 think that away. You win the game when all of these things are happening. You know, so, 625 00:37:40.960 --> 00:37:46.080 yeah, I think we also, we, we tend to great grow more patient. We, we, we, we grow more 626 00:37:46.080 --> 00:37:51.360 patients as we get older as well. Just stations and take time and just know that like things don't 627 00:37:51.360 --> 00:37:56.560 happen overnight and just make good informed decisions and know that time typically will take 628 00:37:56.560 --> 00:38:02.720 care of the rest. Exactly. Great property and a great market with good underlying fundamentals. 629 00:38:02.720 --> 00:38:06.560 And that's it. For the most part, the rest will take care of itself if you're willing to 630 00:38:06.560 --> 00:38:09.600 wait it out. You can't read it out, right? Right. Right. So, 631 00:38:09.600 --> 00:38:13.360 tanny, man, this has been a lot of fun, buddy. I'm glad we're able to finally connect in person. 632 00:38:13.360 --> 00:38:18.240 Glad to, you know, bring on the show and appreciate sharing, you know, all your insights and just, 633 00:38:18.240 --> 00:38:23.040 you know, the story, you know, the story is phenomenal. Wishing you all the best and looking forward to 634 00:38:23.680 --> 00:38:26.960 catching up in the future and just, you know, seeing where you guys are at. We'd love to maybe 635 00:38:26.960 --> 00:38:31.280 do a recap on this deal once you guys get it closed, get to the finish line. And is that happening 636 00:38:31.280 --> 00:38:37.360 this year or is that going to happen next year? So we have, so we have to get it, we've got to 637 00:38:37.360 --> 00:38:43.680 get a loan assumed and I have to go through. Okay. Yeah. So it's probably going to be early next year 638 00:38:43.680 --> 00:38:48.800 for me to get everything. Yeah, it takes some time. Yeah. So yeah, well, good deal. My friend, 639 00:38:48.800 --> 00:38:52.720 for those that want to learn more about you, the company, your firm, what you guys do, 640 00:38:52.720 --> 00:38:58.000 where's the best place to reach you, your website? Yeah, is Excite Capital, is Excite 641 00:38:58.080 --> 00:39:05.200 Xylophone, S-I-T-E capital, dot com. And of course, Tenetal of Fire, you can find me on LinkedIn, 642 00:39:05.760 --> 00:39:09.920 on Instagram, or Facebook, any social media is Tenetal of Fire. I think I'm the only one 643 00:39:09.920 --> 00:39:13.360 that's on there. So, yeah, that's the same thing. I think I'm going to have a bump out there. 644 00:39:13.360 --> 00:39:18.400 It's not even Kevin Bup, you'll find me. So, awesome. Tenet, it's been a pleasure having you, my friend. 645 00:39:18.400 --> 00:39:22.080 Thank you so much, Kevin. I really appreciate it. And of course, yes, once we close the deal, 646 00:39:22.080 --> 00:39:25.600 there's a lot of things that I'd like to share as well. So hopefully we can revisit it. And if you 647 00:39:25.600 --> 00:39:30.400 in Charlotte anytime, just let me know. And we can grab a beer or something. We'll make that 648 00:39:30.400 --> 00:39:33.920 happen, my friend. And guys, that's all we have for this week's show. So until we meet again, 649 00:39:33.920 --> 00:39:37.520 next week, this is your host, Kevin Bup, which is a huge success. Take care. 650 00:39:38.880 --> 00:39:43.920 Congratulations. Now you've got more of the best tricks of the trade in building massive 651 00:39:43.920 --> 00:39:50.320 amounts of passive income from real estate. For more amazing resources, visit real estate investing 652 00:39:50.320 --> 00:39:57.040 for cashflow.com. And we'll see you next Monday morning.