Ep 528: Syndication Vs Fund Raising Capital and Fund Structures

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what's up Ru neck crew Ru neck Army Who you calling these people we call rough
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neck Army but that's a joke oh y'all got I thought y were being serious this
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whole time we're back live we're here with Anthony G I've never heard you say
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your last name so I just been making [ __ ] up this whole time gaana gaana what gaana say it braxon g yeah there you go
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no I'm not try nobody ever Nails it in the first TR right you got to get the mic in in front
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of your face there you go is that better yeah like it's a no no no no no like
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it's a wiener real close that's all you play yeah Anthony goana goana just skip
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it I'm racist so Anthony G damn Trump voters Anthony G from hobon
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doing massive land deals in Texas yeah yeah it's pretty cool it's it's a it's a good hon living pays the bills got that
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mic in your face more oh yeah jeez people the people want to hear you they don't they don't want to almost hear you
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how do I turn up the sensitivity oh we don't know we don't know that's God Where's God where you at we're good y
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we're good we're good now hello so hell says we're good real good okay so uh
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what's up Anthony what brings you to Dallas oh I just wanted to come hang out with those rough neck guys man I see you
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guys content getting uh pretty good I saw that show where you guys were cleaning out that super nasty house and
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then I was reading the comments they were like I can't believe them boys put that [ __ ] on their face I hope they got out of there
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healthy I know those guys are some of the healthiest guys I know dude you you came even cleaned the house out with us
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yeah you said he needed he said he need I I've never been to an eviction before so I'm like I bring a pistol like I don't know what's going on I'm just here
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to help yeah next thinging know a Furniture mover so oh nice man that was the world's worst eviction it was pretty
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cool we got some good good content out of it cono was really nice the the tenants were really nice every was very cordial there was a giant Yellow
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Jacket's Nest where it was on the side of the house did you not see it you didn't see I didn't see any bees at all
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we were pretty much almost done at the end of that first day dude there was a big one consal came around he was like
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900 and he's like I've never seen one that big I mean and yellow jackets are bad you mess them up they mess you up
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damn so what's up Anthony what what what's a big deal you got going on right now uh I don't got too many big deals we
Chapter 2: The Process and Challenges of Land Entitlements.)
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got uh 243 Acres we we bought in uh Somerset and we're entitling it for residential subdivision so what what
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does entitling mean now I listened to y'all's podcast Steve train I was in the
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bathtub so I didn't finish it if we can be 100% honest I didn't [ __ ] my pants that day that day that day
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any day not [ __ ] your pants is a pretty good day I would say yeah 40's been rough to me but anyway so yeah I
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was in the bathtub listening to y'all and Steve train chop it up and I didn't even know what
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entitlements were I've never I I I had heard there's a guy that used to come
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into this studio that did some deals like that but he's like a big money guy
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I don't know he's just passive investor M and he had kind of explained it to us but break down entitlements because
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entitlements is something that's like a foreign like concept not not necessarily
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to me but definitely to the community yeah so it's it's pretty much just um taking a piece of property that has like
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little to no restrictions little to no zoning so let's say agricultural right guy has like a bunch of goats out there and he hasn't been to the property for
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years uh so that's what they do uh you you would take it from there and let's say hey I want to put an apartment
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complex here or a self storage you got to go ask permission to do that right you can't just start throwing up an apartment complex with your cousin hold
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on I own the land I've got the deed who it's between me and God at that point
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yeah yeah I mean depends how far you want to push that to the Supreme Court but you got in the
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government yeah you got to you got to go ask somebody's permission and it's usually like a like local County City
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there's some kind of governing body that wants to know is like hey uh can I put 400 units here on this 4 Acres like well
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no you don't have the correct drainage there's no public sewer there so you're going to have to get like a septic or commercial septic so everybody just kind
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of wants to have a good look at it so like that subdivision we're doing down there in Somerset like you're going to have to look at the the Fire Marshal
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right uh the flood St he got to go to the federal government got sent out to FEMA and say hey look here's how the water's going to shed off this property
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after we install 180 homes uh so that four months by itself right so that's a
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all part of the process before you get to your stage where you take all your documents from your engineer you take all your documents from that local
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municipality you package it up and then you submit it like to the county or to the city and say here here's what I'm going to do now and femas included what
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does all that cost this neighborhood this is the this is my first rodeo right here guys okay
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so bear with me this is like literally the first subdivision I've done like this it's going to be 180 Lots 30,000 ft
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each we got about I want to say like 2 and a half miles of Road in there it's probably going to be chip seil but it's going to be like County aect approved
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Road electrical waterline I think hard cost is going to be like maybe like 2 m something like that so two 2
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million but y you're going to do these improvements or you're just to I'm starting I got equipment on site right now they're going to start laying down
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clay for the road right now they're like doing it today so y'all already got all the permitting and everything approved
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no so all I'm doing is I got permission to go and clear the trees that were in the pathways of where all the streets are going to go inside the neighborhood
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and I'm just going to just drop some clay there because we're having trouble navigating it it's a it's I call them a sand lot I don't know if there's a better name for it but the the the
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material is like beach sand is what it is so you're driving a 50,000 lb rig back there and it's going to sink and
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it's going to be hard to get out so we're going to lay down uh like 15 Ines of clay or 18 inches of clay and compact it down so we can at least like navigate
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the whole Ranch along that path where we cleared all those trees okay so some
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people do entitlements and they go and they do all the engineering and then they once they get
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everything approved through FEMA and the government and God we just call the government God yeah and then they get it
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approved and then that's an improved property at that point you can sell it to somebody because then they can
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actually go to work on it because it's shovel ready at that point do y all do that is that is that what you're going
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to do with this neighborhood or you actually going to build it all the way out I'm going to build it out so if I if I do the entitlements and then we we
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sell that as a package to a developer we could probably walk away with like two million or something maybe two and a
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half but if I throw in two more million into infrastructure and uh lay out all those roads well now we're targeting
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like 12 to 14 million in cells so then I'm looking at making like eight or 9 million so like I'm not far enough along
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in my career to where I could just burn five or 7 million down like I really need it real bad and then also I know
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that that money is not realized like until you have those realized gains when that money's in your account but right now I can afford to gamble you know and
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I'm going to you know I don't want to make two I need to make 10 okay so so where did you go get the money private
Chapter 3: Current Land Development Projects.)
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money private investors yeah just through my network asking friends asking those guys and then we did a partial seller carry at 0% interest so uh yeah
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we had the seller carry back uh 1.6 so you're making monthly payments to the seller M all principal yep okay and then
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the money for the improvements you're still raising it or you're going to raise it or have you got that far along
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in the process uh we've got quite a few people that are kind of in line to give us money so like even if is it fully
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raised probably if it's not it'll be just a couple phone calls more okay so
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what other land deals have you done I see the simp simple land deals the 10 acre tracks those are your easiest
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cleanest deals man those 10 acre subdivides that really pays the bills you know you can make like anywhere from between 100 and 500 you know uh on on a
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simple deal that's going to take no more than like 6 to 12 months and it's repeating okay have you done any of those yeah
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plenty of them that's uh that's kind of our primary target for deals we call that the first lens so that's like if if
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we can't get out in 10 acre tracks we should just not do the deal at all okay so we got a deal right now and I I
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actually just text the seller it's under contract 52 53 Acres um we can't get
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water there's water in the ditch and they won't give us water meters dang no
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drillable water it's it's water is becoming a real problem in Texas have
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yall ran into that I guess you'all got drillable water there probably that's our first that's like our main first
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requirement when somebody sends me a deal and they say hey this guy wants so much and this acreage and it's in this area and all that stuff that's my first
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question is what's the water situation is it public water is it groundw do we have something in writing that says that
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they're going to give us those meters we're doing it right now on quite a few properties it's going be 4500 bucks a meter for 3 meters uh but we need it
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like I need something in riding that says hey I got water like should we wait until we have them sold no let's order the meters now and that'll be easier on
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the sell side when they know that they got a water a meter sitting there for that reason and if we can't get water at all then we're just not in at all I
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don't want that land for anything yeah it's it it's it's becoming a very difficult six situation in Texas the
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Waco area the it's actually kind of ass backwards in my mind but the west side of Waco has water they got Lake wo um
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there's plenty of groundwater out there I would assume because we just drilled five Wells on a property out there um
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but east of Waco in between Waco and yeah there's no water and I mean the
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county water and the little water well companies that are out there um they they're tapped out they're they don't
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have any more meters um we're paying $355,000 on a 6
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acre it's really no it's four acres but six lots that we subdivided um we have a
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eight 18 unit mobile home park behind it that probably takes up 3 acres has 18
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water meters okay we're getting rid of that we're we're turning that into an RV
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park we wanted to take some of those water meters that are already in place they're already there and get them onto
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the six acre the six tracks that we have the 4 acre we subdivide 4 Acres the six
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tracks I'm a little [ __ ] up right now the Zen's Hing right you a little zened out those end out but anyways we wanted
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to just get them you know hey we we don't want them here some of them are already on the
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Lots we just want to move them over here they wouldn't do it they said we had to
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upgrade the whole line mhm something we missed in due diligence during this
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whole process um now it's costing us $35,000 so have you ran into any of that
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have you have they made you upgrade any lines have you have you we just did one in Tyler right now they sent them like 38 000 to upgrade that line are those
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the ones we're doing the homes on yeah did y'all send us a wire I don't know call Daniel live on live right now no I
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don't I assume Jacob will tell us if we got a wire I asked some teams yesterday day before he said no so but we got the
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we got the septic plans ordered so I talked to Mr Jessup I told him that you guys were going to throw some houses in for us really yeah who Lance yeah what'd
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he say oh he's excited it's dope I'm tell my son more houses yes Lance is the
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Godfather of this Lance does this [ __ ] in his sleep Lance wouldn't have missed that [ __ ] upgrade in the water line
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he would have just been like you're going to need to upgrade that water line I'd been like that's impossible we're going from 18 M to seven how could we
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possibly have to upgrade a waterline they just want to know they want to engineer it in they want you
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engineered maybe you're on some black ply pipe they haven't seen in 20 years they just want a brand new line it's up to however they however they design
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their infrastructure is based on what they get back from their own Engineers that work for the city so they say hey if they're going to start sucking a lot
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of water that way that pipe's been there for 100 years we just going to replace all of it the actual crazy part about that deal is we would not have got it
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done AB we would have got told no they would have not done it for us but Jacob
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knew somebody that knew the president and that's the only reason we got it done they would have said no they would
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have said we're not messing with that's what it is man so when I talk to these counties like you got sometimes you're getting in a meeting with the county commissioner those guys right and they
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could be a-holes right because they really they hold the keys to the kingdom so do they want your development there in that area yes or no and it's really
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up to them and then you can you can say okay well we follow the law to the tea so now we're going to sue you guys but I
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me you want you want to start suing counties as a business model right no not at all no it's it's it and that's
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some of what we uh We've ran into I mean these are small deals you know we
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thought that we had this one in the bag the water meters were already on the land and it's still something that jumps
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up and bite you in the ass so grandfather day man you got if something's set a certain way then you
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got to assume that it's the county or the city is always gonna they're going to honor it that way but once you start making changes yeah then it's just
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whatever whatever they want to do yeah you're going to open up a can of worm so you got to be prepared for that but I I think we're all trading our hours of Our
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Lives for cash so just do something that you're really interested in right and I've just I've been in Remodeling and rehabbing for so long in construction
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with my dad's company that I'm just done like I mean building million dollar roofs you know for people like I wasn't the actual installer but I'm selling
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them suing the insurance that kind of stuff um and I'm just over Remodeling rehabbing and that kind of stuff but
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it's a great business model there's a lot of room for it we need affordable housing right now mhm yeah but every time I walk into Home Depot I'm just
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like ready to just like jump off a bridge like I'm just done not me I love Home Depot I got so many Home Depot
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rewards I need to go claim just that smell as soon as I walk in I'm like oh man that's like a recurring nightmare
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yeah damn since I was 12 years old man I'll be 40 something on Sunday right
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looks like he's got a question on his mind I was just curious what uh when you go into a deal any of these he said you
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know you have array of land sizes what's your uh hopeful timeline for something
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like your new development that you got oh that development M man uh we're targeting uh for like soft cost by the
Chapter 4: Funding and Financial Strategies in Real Estate.)
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way on that is about 450,000 for engineering just before I can break ground holy smokes so we got that and
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then the timeline was 10 to 12 months okay so it's it's fairly quick it's
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quicker than I thought it would be it's pretty quick we were aiming for like seven months cuz we were going to go in phases so we were going to go uh phase
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one two three and four but the engineer said that that would be 30,000 more but we would break ground like two or three
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months earlier I don't give a [ __ ] I'm already like I said I'm already laying clay I'm digging out tanks all that stuff already anyway so I I kind of
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jumped the gun a little bit on that one but what uh are are you trying to pay off the seller ASAP or let him ride as
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long as he's willing to no we have a it's a short-term loan I feel like it's like 18 or 24 months or something we have a balloon so enough for your whole
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project yeah just enough to get me to the next phase also what we're doing is like we're bringing in different types of lenders so we're doing like a blended
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Capital strategy where you can use like either hard money or private money to take it down and then once you're
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entitled at the end of 12 months then you bring in the other guy so bring in private at that point or hard money and
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then refy the deal out pay off those lenders and then bring in some fresh lenders and go ahead and start with the development gotcha yeah how do you like
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the monthly Debt Service it could be tremendous and you Pat it in right so the way that we've been able to Pat it
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in is let's say we're buying something that's 100K down and it's five grand a month well let's say the term of the
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loan is going to be 24 months we'll just borrow the 100K plus all those payments for two years and then just put that
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aside and that way that thing it's paying for itself based on the initial borrow yeah I've heard a lot of people
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doing that do you have you explored Equity as an option what like like at
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the end like Equity is so much so much better better in my opinion you got your
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carried interest so you bring in your investors you give them 80% of the deal you take 20 you go do the work but
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there's no pressure to to do the there's no Debt Service there's none of that you
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you set it up to where we're not going to start paying out until 18 months 2
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years whatever it takes whenever we start getting paid you start getting paid and you give up a lot more of the
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deal but you can do a lot more deals does that make sense cuz you're we're doing it now too we're g we're paying
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like 20 and keeping 80 we're not doing it the other way around but uh yeah we have a lot of our lenders where they get
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no payments per month until the deal is closed yeah so yall setting up funds where you get they bring 100% of the
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capital they bring all the money and your carry is 80% and they're not
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batting an ey so it's not a fund yet okay we we paid fund launch we gave them like 30 grand they have everything's
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ready with sign it tomorrow if we want but we had a a guy that's a high networ due like half a billion he said don't
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launch the fund until somebody's ready to throw in like a full five or 10 million into it based on where we're headed we're trying to do a $100 million
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raise 25 at a time so he said if you launch and then somebody throws in 10 million on day one he said it'll be easy
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to raise the other 90 but if you launch and then it takes you you know two years to throw 5 million in there it just it
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looks it looks it reflects poorly on the investment strategy huh yeah well he
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would know better now because he's got half a billion but why wouldn't he just F the whole deal he's he's aiming for it
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so they're they're committed to 20 million and they said they'll put in a second 20 million by the time they place all that so we're doing it a more
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syndication style where we're raising per deal as opposed to uh all at once yeah that's what we I mean that's what I
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mean this would be like I don't know what's the name of the town Somerset Somerset it's it's potit
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yeah but suet so Somerset subdivision whatever you going to name it fund one you need what 4 million gets the whole
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thing done yeah so you would just raise 4 million you would raise maybe four and
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a half million so what you don't know doesn't get you yeah and I mean give 80%
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to the investors 20% carry or maybe a 7030 I don't know on the more lucrative deals maybe you get with that when we
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were fundraising the carried interest did you know what carried interest meant yes but I didn't
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understand why it was a concern till the one F we we had an attorney friend of
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ours a corporate attorney you know we basically when we structure our funds going forward we're going to have
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language in there that says if we sell this at a loss or if we sell it sell it
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day one and it doesn't meet our PPM for lack of a better word am I
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saying this Rob braxon clean up this you're like a so like if we sold day one
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at what the value of the fund is like 4 million so we raised 4 million so we selling it for 4
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million we wouldn't be entitled to our carried interest on that so if it's a
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$45 million fund or $5 million fund we don't get to walk with a million because well that's what we're entitled to if
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we're selling it at bases it would be every dollar over a million as where you hit that Target right I like that
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business model I think we might start offering that when we do officially launch the fund I'm thinking something like that like a prep of like I mean a
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$100 million fund this just the way I see it if I if if we launched a $100
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million fund tomorrow and we have one fellow come in and give us $100 million we definitely have new problems CU we
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don't have $100 million with the real estate and even placing 5 million or
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four and a half whenever we did it was [ __ ] work we looked at a lot of deals
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to get it and we I mean there's some of those deals that ain't that ain't I don't like them they're not going to
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they're not bangers like we thought they were going to be and part of that was because we
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were concerned about getting the money working right getting it into an asset
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and if you got $100 million and you can't put it into an asset how do you pay returns you can't you got to have an
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asset to go into so doing it on a deal by deal basis it's I mean $100 million if you're going
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to spread it over 10 deals you go get the 10 deals you break it out into 10
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different funds and you do 10 different funds it's cleaner it's easier it's you know
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it's not cheaper but I mean like the the first thing we do with our legal fees so
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what does it cost about 40 typically mhm 30 to 40 30 to 40 in legal fees per fund
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yeah the first thing we do is so when we start paying out dividends we hold back
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a little to pay back the legal fees right cuz the legal fees are part of the working capital that we need to yeah you
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got to keep the machine alive so everybody's money stays alive yeah well it's just not part of the we don't we don't underwrite it into it's like we
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don't we don't raise part of the money for legal fees but it pays legal fees so we take the legal fees out of the
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revenue that's generated Franchise Tax the franchise tax I they just changed the law on the
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franchise tax for LLC so you got to do over 5 million I think is that right I
Chapter 5: Navigating Legal and Logistical Issues in Real Estate.)
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don't know might right I have to reread it but the the Lo the fund itself has to
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pay franchise tax what's it you know it's like you get to the end of the year and you pay the franchise tax we have
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money to pay the franchise tax but that should have come out of out of our expenses right so that was part of the
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expens what you doing carrying out of pocket at first no no no we just it's just stuff like that that you don't know
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what you don't know right yeah so you say we sell we we buy a deal for $100 we
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tell sell it for $200 we take $10 out for the legal fees
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right cuz we knew about those and we pay out $90 well we should have held out $5
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more doar for the franchise tax right that's all it is we got to a franchise
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tax and we're like oh so we just pay it out of Revenue right cuz that's that's what it should get paid out of because
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it's part of your expenses like property tax or insurance or anything else so you
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know because each individual investor you know they get their they get their if they got a LLC and they're
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getting money they're probably not going to hit the threshold where they have to pay a franchise tax but the fund itself
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still has to pay a franchise tax in Texas this is all in Texas um so I mean
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there's stuff like that that that I mean even the the fees we pay to AppFolio right so that's a separate entity right
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that that's out of our carried interest but that has to be paid you know it's
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like we get paid this month Braxton gets his share Jacob gets his share everybody gets their share of what that gets paid
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but hey look we got to pay the at folio bill first right cuz it's what 800 bucks
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a month I think it's like 900 now cuz you had two two funds right so anyways
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there's there's things that that happen there that you know you can't you can't tax the fund so even doing 10 of those
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funds that's going to come out of future profits it's not you know it's not like the legal fees are are an expense that
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you have the money to cover it up front so you don't have to worry about it but you can you can take it at a future
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revenue and pay it back so that Mak yeah I think that's what I'm aiming for right now man because I can clearly see
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how the books and the numbers can get out of hand quickly so yeah that's why we're looking on bringing on like now
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third party like entities like for bookkeeping and legals and all that stuff and yeah somebody to say Hey you
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know we're going to buy this apartment complex down there by L like no you're not right not at least until next April
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right so I need somebody like that over my shoulder like just kind of helping us run some books in could you buy till next April well I'm just saying like
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let's say we it looks like we have a lot of cash on hand but we and then we don't because that's all money that it's already allocated for Debt Service and
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other things like that oh yeah so that's what I'm looking for man I just need a I want a high powerered bookkeeper and then the the gentleman that's going to help us run our fund uh he's already
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running a $500 million fund so he's putting us in contact with a lot of their bookkeepers and stuff that they already have set in place so we don't
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have to learn you know from scratch we're just going to kind of just follow his framework at least for the the beginning well we have an in-house
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bookkeeper we pay him $25 an hour yeah bookkeeping I I mean bookkeepers work hand inand with the CPAs the CPAs teach
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the bookkeepers how to how to book the bookkeepers train us how to send it
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right so send me this invoice you manage it yourself inh house oh yeah we've always I mean Jacob did the bookkeeping
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forever but then we hired Kevin and Kevin's done our bookkeeping and Jacob trained him how we do our bookkeeping
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and then he works handin hands with the CPAs when it comes time I mean the only hold up on getting all of our taxes
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filed is the CPAs I mean they they you know we're all we always have all they
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always have everything right but then they like on our first fund this year I
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think they filed an extension but got it out like a couple days after but that's very important in a fund because
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everybody else you got to get them their K1 so they can pay their taxes right so
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if you give me money and I pay you money all year and I don't get you a K1 by
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April 15th now I'm I'm I'm [ __ ] you you know what I mean cuz you can't file your
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tax you got to file an extension so yep it's it's the most I mean Bar None the most important part
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but I mean you don't have to go hire some high-powered bookkeeping you have to hire a firm a CPA and get a
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bookkeeper in house brought somebody on recently that's running combing through all of our books everywhere yeah they I
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mean I mean we're probably at the point the the advantage of having a a a firm
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for a CPA is anything that comes up you know anytime anybody reaches out from
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the threel word we won't mention they they they handle it right
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so they they they if you have just a guy on staff that's in-house you know
26:11
accountant I mean he can't fight that you know what I mean like so you want the we got the firm CPA but the
26:17
bookkeeper in housee so I mean that's simple that's I mean how mean companies does he do he does all yours mhm he does
26:26
all Brandon's I think some of Jason yeah he does I mean he's doing 20
26:31
companies for us in house he makes $25 an hour what is he a bookkeeper yeah he's a bookkeeper in house inh housee he
26:37
works for us works for property manag that's amazing so I mean they can handle
26:43
a lot they are good they are very very good um but the the CPA is we use jrbt
26:50
at a Waco M they got a big building that came recommended by our attorney and
26:55
they've done a done a hell of a job I mean I think overall we pay about probably 100 Grand a year to the CPAs
27:02
for all the entities but if you didn't pay them you'd be paying it in taxes CU
27:07
got in mistakes in mistakes yeah I mean you know so I mean having having them do it you know they you know all of our our
27:15
personals they you know we they file an extension for all of those but they get them done so I mean it's fine but yeah I
27:22
think that's where we're at now man I already I realized like yeah this thing is going to get bigger than than I could possibly carry it so that's why I just want I just want people involved in I
27:29
guess that's the next stage getting those uh yeah those people in place that can kind of Juggle all this stuff well
27:34
it I mean it there's I don't know braxon you had the the the the um solicitation
27:43
part of it when we were when we started our fund we couldn't solicit right so we
27:50
couldn't we couldn't come on here and be like hey if you want to invest with us you know jump you know jump in the chat
27:57
talk to to us about it we there what's up hi with this podcast live on live ask
28:03
Anthony about his new truck what's up with the new truck I got me a Roblox truck you getting the the
28:10
Cyber truck yeah that's awesome yeah ordered it for November 2019 is the day
28:15
I ordered it and it's coming in Tuesday yeah dang what's it cost like 1 10ish oh that so it's about
28:23
a like a F350 yeah that's it yeah they they're not as bad it back whenever I heard the price they
28:30
were high and now all trucks are I mean you go buy F F150 what is it 80 yeah so
28:37
yeah just a regular Tahoe like a family ass Tahoe not even a limited edition like 90 grand 95 Grand it's a $30,000
28:45
truck all day all day yeah the used Tahoe Market's going to be doing good but they yeah the the um the
28:53
solicitation part of it braxon had to sign something at the very end what what
28:58
was it essentially saying like we in good faith didn't Market or solicit to one people outside of Texas or two just
29:05
kind of openly type thing MH and I me there's a lot of compliance that we have to follow for the particular fund
29:11
structure we picked in the future we might pick a different one that would let us but then it's like well now we
29:16
can't do non accredited has to be accredited or that sort of deal which one did you guys go with we did a
29:22
504 and so we could do state of Texas residents sophisticated investors
29:28
so they could be not accredited but had to be sophisticated okay and basically
29:34
people we already have a working relationship withh so we couldn't I mean we couldn't post about it on the internet you know we know you and you
29:41
know somebody you could make an introduction but you know we couldn't we couldn't couldn't be out there
29:48
just sending mailers and soliciting so yeah you know and that's when you're
29:55
running a podcast and you have a channel and everything else like this second one you know we were very buttoned up about
30:01
it one cuz we didn't want to lose the deal we don't want anybody I mean we were very like if we send this to the
30:06
wrong person we're going to have problems get someone else calling the seller type thing like couldn't risk
30:13
that yeah so and then you know we were we were very guarded with this one but we didn't we didn't I don't even I don't
30:19
think one piece of content's H the internet about that 80 unit purchase I think I posted about it since we've
30:25
already got the fund closed out but I don't think I've you know we haven't made an official announcement or
30:31
anything yet and won't until did did the check get deposited Jane called me but
30:39
did you text he was uh yeah he uh he was going so we got 200,000 hanging out last
30:46
deposit hits the bank today I guess the attorneys will file everything after that the fun will be closed sign paper
30:53
work on Friday so then we'll be then we'll be like
30:58
making content around it a lot because then we'll be paying our investors you know everybody it it'll be no holds bar
31:05
we'll be telling everybody you should have got in on this deal and Monday we can hit that distribution button yeah
31:12
for all the rents we've been collecting congrats guys man you guys are running man fing it's been amazing to watch well
31:18
but I just I mean from the compliance side of things it's very I don't know like we didn't realize
31:24
when we got into it because the first one was so easy and came from people you
31:30
know that we already done business with the second one people were introducing us to people and so we were always
31:35
having to go to the attorney and be like you know hey haven't met that person out that introduction well we would send it
31:42
so we like we'd send it to a guy we send it to a guy here in Dallas we know he's accredited we know a lot about him we've
31:48
I mean he's a great guy M well he sent it to his buddy in Florida well we can't take his buddy in
31:53
Florida you know what I mean well his buddy in Florida is reaching out to us about it and we're like we got to run it through the attorneys and then we run it
32:00
through the attorney attorney says no and you know that's it and then he's like did y'all solicit to this guy and we're like what do you mean he's like
32:06
well why does he know about it we're like well we sent it to a guy and he sent it to a guy he's like oh okay well
32:11
we are good and we're like why and he's like well these These are crimes that you could have committed by sending it
32:18
oh yeah they're Financial Crimes by the way it's felonies yeah so it's like it's like these are crimes you could have committed byend sending that to somebody
32:25
and we're like but what you do you mean by sending it like you know and so it's like we at that moment in time we're
32:32
like running through our head like well who did we send it to you know what I mean like cuz it's like we you know it's
32:37
like we know we know who we sent it to but like we don't know who they send it
32:42
to and we don't know and we're not asking like hey what's your address is if we met someone an event at in Houston
32:48
or San Antonio or whatever it's like if we're talking to these people people we've maybe done deals with before talk
32:54
to him about like hey what do you think about this it's like well you know we're not yeah we don't we you know he's like
33:00
you know and then you send it to them and then they come back and they're like well I live in Wyoming it's like why did I meet you in San Antonio well I lived
33:06
in San Antonio at the time right can't they still invest even though they live out of state no Texas only but not only
33:12
can they not invest you can't solicit them you can't talk to them about it right so for me to even send it to
33:17
someone that lives out of state even if we've done business together could be seriously bad it's like the the very
33:23
first phone call like you get them on the phone it's like yeah I Met You in San Antonio but where do you live you
33:30
know what I mean like oh yeah make that very clear up front right before you ever tell them you're calling them about
33:36
a deal that you know they had expressed interest that if we are doing deals in the future hey you know we want to be in
33:41
on them so you know we didn't know that we didn't we didn't we found that out very late in the game and then we're
33:47
like [ __ ] you know like I like so anyways but luckily we only you know we
33:55
have a very small group of people I think how many people are in this with us 34 so I mean we only got 34 people to
34:01
get $3 million so you know I mean it it we were fine but that's including our
34:08
share too so really 33 investors yeah so anyways congrats guys that's huge man
34:14
and so why not a 506c uh 506c would eliminate my Aunt Vicky right my Aunt
34:22
Vicki is a sophisticated investor she's got probably half a million dollar wor
34:28
the assets but she's not accredited that's the best way to say
34:33
that we don't want to exclude ant Vicki from these smaller deals right and I'll
34:39
call them a smaller deal in the nicest way possible uh $5 million deal is a small deal but our next our next deal
34:45
will be a 506c it's going to be a a note buying fund the note buying Market's drying up and we're going to go to try
34:52
to go to Wall Street and just get a full $10 million from one one person like hey
34:58
we want to buy notes here's the business plan this is why we need it you know I need to follow you into that space
35:04
because I'm going to head there too so let's let's let's talk about that well to me there's there's a soft spot in
35:09
that market right now Big Time CU there's nobody buying notes mhm and the reason why they don't want to buy notes
35:15
is they don't want to deal with the foreclosures so these I don't know like you got like
35:20
Class A bonds and you got Junk bonds you know what I mean mhm people view these
35:26
owner finance node as like junk bonds it depends what you wrote right it does depend on what you wrot I mean they view
35:32
them as junk bonds because it could be the down payment it could be the credit profile I mean how many different
35:37
questions do you run into on a note buyer ton every single one's got different buying parameters they're like
35:43
oh I care about this but I care about this but it's like they'll pick apart the aralo package and it's like it's on
35:49
top of the fact it's like we have the aralo package we've gone through all the things we're supposed to do we had one
35:55
back out recently because the credit on the buyer had changed from the time they bought the property it sounds like a
36:01
buyer they hadn't been laid on payments hadn't defaulted or anything like that this is a current note and it was like
36:08
oh the credit score was this when was the last time y'all ran credit it's like [ __ ] this is these scarcity mindset note
36:14
buyers man well it's not that they they have they are building [ __ ] hang on guys
36:19
two seconds they they on live they they're they're they're building a a portfolio of notes to sell to a bigger
36:26
note buyer so they're they're building I mean it's almost like the cattle business you know what I mean there's
36:31
people that buy black cattle there's people that buy red cattle there's people that buy white cattle you know you can't you know I got to just buy
36:38
black cattle and that's that's what they're building their portfolio for because they go in and they buy these
36:44
notes to say a 16y old or 13y old or whatever they get5 or $10 million wor the note now they sell them to somebody
36:51
at 8 yield and they make the margin but it pays them in between right getting paid to carry it well I mean it pays
36:58
tremendous and then you get paid again and then you restock your portfolio of notes and then you sell it to a bigger
37:03
note buyer so they're building a portfolio that they can sell to one buyer um that is Wall Street no doubt um
37:12
and that's why they do it that way but to me I'm like you know we're we're better at it we we we
37:19
can originate good notes we can originate qualified mortgages we can you
37:24
know get a portfolio of these notes that are performing some of them aren't going to perform we'll deal with them but we can get a portfolio of them the ones
37:31
that don't perform for Wall Street are a nightmare cuz now what we got our forclosed we got to do all that for us
37:37
it's a blessing why we have agents on staff we can you know res cash for keys
37:43
do whatever yeah do whatever so I mean it's like we have we have the ability to manage that asset all the way through
37:50
even if it becomes a rental property you know the Wall Street doesn't have that so we'll be the boots on the ground and
37:56
and since there's nobody else in the space buying any you can get Hella returns I mean some of these things you
38:01
could probably buy at a 20 yield off of paper stack right now if you had the cash you could just you know go evaluate
38:08
the asset like you're going to own it as a rental and buy that note and as long
38:13
as they perform everything's good if they don't take it back rent it out resell it whatever you want to do so
38:20
yeah I want to start funding subdivides so somebody calls us and they say hey I got a 10 acre subdivide I need 50 Grand
38:25
or 100 grand for surveys and coverts and Bo bull [ __ ] and then uh so front the font end front end cash and then they'll
38:32
sell all of it for cash and notes like we do and then I want to be the note buyer on the back end too okay so that
38:38
way they they can just do all the work and then we just bankroll it yeah that and that's a good that's a good strategy
38:43
but I don't know if you're going to get somebody to do 80% carried interest on that that's that I mean that I was
38:49
talking to somebody that's very smart and I mean very smart one of the smartest guys I know and he thought
38:56
money worked the same way he thought he brings the deal and does all the work he gets 80% of it and the people that bring
39:02
the money get 20 and what what's your experience with people that have money they uh they understand the value of
39:09
that money they will not they like that when that carried interest question came up cuz we we did 20% carried interest so
39:16
we have an 8020 split so essentially we paid ourselves a million the day we
39:22
bought that we got a million dollar worth of shares and we didn't bring any money we brought the deal so Anthony
39:30
please pull your mic close told you oh man so where's Teck support when you
39:36
need just pull it like pull the yeah yeah so anyways um and people you know
39:44
sophisticated investors had a real problem with 20% carried interest you know you can do you know Grant does some
39:52
of his 7030 I mean depending on the deal um he has the lowest lost of capital on
39:59
planet Earth I think he pays like 3% for his Capital it's [ __ ] crazy but I've heard that D hell guy Whatever Gets 0%
40:07
money well that doesn't make Legend has it I know who would put their money to work for 0% I like I've seen it on
40:13
Facebook I didn't make that number up it wasn't a dream I feel like he posted it somewhere he's lying he's a liar probably who is he no maybe I made that
40:20
statistic up so let's not call the guy Li what what's his name Dave last name is like h e i l or i e l or some [ __ ]
40:26
like that oh no Dave hell the the the guy that that does self sorage yeah I feel like I've seen him post like
40:32
carrying all his debt at 0% interest no he's got low interest debt he's getting SBA Loans so self storage qualifies for
40:40
SBA completely different ball game um as far as like outside capital I don't think he uses any outside capital I
40:46
don't think I I don't I don't believe he does MHM that's Dave yeah Dave not Dave
40:52
he don't he don't he doesn't use any outside Capital so Banks USDA you said no no he uh Self
41:00
Storage uh qualifies for SBA Loans SBA really so each entity is its own
41:05
business so you just pull a loan out of it yeah I mean like self funded they they could buy it with with a credit
41:11
union or buy it with whatever I don't I don't I honestly preface I don't really know I don't know for sure I know he
41:18
doesn't use outside capital I know that I don't think he um I don't think he uh
41:25
I think he uses a credit union probably gets stabilized and then takes out with the SBA loan that's what I think that's
41:31
what I'll Pine I don't know he's he's very close to the vest with that every other self- storage person I know uses
41:38
SBA they use SBA to build them they use SBA to refinance them I mean it's the
41:44
SBA it's the government you know what I mean let me I just call called Trump be like can I hold a dollar real quick I
41:51
mean what are the Google the interest rates on an SBA loan right now I bet you curious I bet you they're in the fives
41:58
and I wonder what the Lend requirements are for them too we're about to do one on a on a RV park that's some dirty
42:04
Arbitrage right there if you can get 5% money on that [ __ ] it was two or build those it was two or three really what I
42:11
mean I just like average Spa loan oh you got it does it just take too long to turn the money or what no that's I mean
42:19
Dave hell's like crushing it cuz you can get all your Capital back out so best
42:24
SBA lenders in Texas I thought maybe he had a bunch dumb money or something he was just stacking it all in one place no
42:30
he I mean SBA money the the he finds an underperforming asset not because it's beat up or ugly or anything but because
42:37
it's just Mis been brought up to rents and yeah it's just mismanaged they're just you know 60% full and they need to
42:43
be 80% full what is it 7year variable rates 8 to
42:49
13 economic injury does that oh AO of course
42:55
so maybe them SBA loan ain't ain't cracking right now 10 to 13 it looks
43:02
pretty bad looks like a high like a hi mine loan right there 14.75 but they'll take they'll they'll
43:08
do a a high loan to cost I don't know what I don't know what the they'll take
43:13
you out there's no way that's right Prime ratees eight and a half Prime R 8
43:19
and a half go down so but if you go read his post he he's I mean they they've got
43:25
credit unions I know they use and then I was I might have been wrong about the SBA thing I don't really know but no he
43:32
doesn't use out yeah you got people dropping like that you know we saw a podcast of some kid that's doing like
43:37
luxury hotel fund and he had one check riter for like 120 or something 150 or something crazy like that I think you
43:44
believe too much of what's on the internet well I mean they're out there putting themselves out there if they're out there lying then hey it's not it's
43:50
not my funeral you said not my digital funeral definitely true 100% I don't I I
43:55
mean it have ever had anybody offer you $120 million not
44:01
lately I I've been I've been doing this a while I never had anybody come to me
44:06
and say I'll give you 120 million if you can find me a deal I've never had somebody come to me and say 5 million we
44:13
do have a guy in Oklahoma that can stroke a $5 million check anytime we need it as long but he
44:21
wants a deal deal you know but he understands it he invests in it all the time I mean people that are in that
44:28
space that have that kind of cash know where they want to go with that cash now the everybody else has to be sold right
44:36
you have to go to them have a plan have a track record and show them your
44:41
integrity a kid on the internet doing 120 million luxury hotel funds whoever
44:48
this kid is do you know he's in fun lunch I think he I think he did interview with Bridger yeah pull it up
44:53
what's his name is Daniel Hine watching this he would know possibly Danel hmon
45:00
put this kid's name in the comment section we're about to go creep him so what what luxury is he building a luxury hotel for I don't have no clue what the
45:06
kid's doing I just uh does he work for the guy that's doing it no he put it he's putting his own fund together the
45:12
kid put his own fun together and got $120 million one check one check writer yeah and it wasn't his ant I don't know
45:19
that's to that's that's to be told right now yeah I I mean I don't hey Thea I
45:24
need to borrow a couple dollars I don't think if that is the case good for him great for him but what I what I realized
45:31
about raising Capital right what you know challenges that you can have is people want to know that U that you need
45:38
that amount of money in the first place right so you have a bunch of idiots out there going out and raising a $20 million fund or $50 million fund and
45:43
then they have nowhere to place it at all zero like lose 1% is what they ended up with uh and there's a lot of that
45:49
going on people raising massive capital and not knowing where to place it so something that Daniel and myself noticed
45:54
is that the bigger problem you have like the more the more Capital you need then the easier it is to raise it right so if
45:59
this guy has this thing where he wrote that he needs 500 million well then 100's a lot easier ask right but if
46:06
you're doing single family flips 100 Grand at a time you really have any you don't have any ground to say hey I need
46:12
to borrow $100 million well you couldn't you I mean no ground yes but you
46:19
couldn't like Zillow [ __ ] it up right yeah Zillow didn't have the the
46:25
contractors didn't have any anything they just thought where did they think all those Mexicans were going to come from what no I don't they buy thousands
46:33
of houses like who's going to fix all this [ __ ] they could have done it they could have done it yeah all they needed was a guy like me more Pedro no they
46:40
just need a guy like me that that go out no that could go not run daylight bro I don't have to do any of that the guys
46:46
that can actually get out there in the community and find out who's real and who's not real yeah who do we send a wire or two that's actually going to
46:52
show up and do the work yeah it wouldn't take that long to figure out where the Bad actors are either yeah well yes but
46:57
I mean you could have some misses in that I mean you're going to know you you could have two crews in every city and
47:04
do the volume that [ __ ] that that Zillow was trying to do they just didn't do it they they they couldn't and you
47:11
underr it as a rental from day one they could have took all those 7500 houses they bought and put renters in them and
47:17
they'd have been fine just depreciated them down yeah they just put renters in them and wait Deb service just just wait
47:22
just wait you okay so they're not selling just put renters in them and wait what they do they sold it ultimately uh I don't exactly know what
47:29
they did you know Zillow makes a lot of money they have a lot of Revenue so it isn't like you know selling anything at
47:36
a loss is really hurting them that bad that's also say maybe they just really needed the write off and they're like just just buy all these houses and dump
47:41
them at a loss no I think they saw open door I think they saw other people and realized they fomo no they had the they
47:48
had the infrastructure they have the data it's easy we put it on our website people are going to click we have the
47:54
traffic it's easy we have the money you know we can raise the money so you think
48:00
they lost money or made money uh I don't overall they're they're probably not losing the amount of money people would
48:07
think they would lose but they didn't understand why they were buying it right you're buying it to rent it out you're
48:12
not buying it to flip they try to be an investor on a spreadsheet instead of being boots on the ground well they had a bunch of guys that went to college
48:19
sitting in there going this will this will work right we drew all the models out like has anybody ever seen one of these houses in person like no why would
48:25
we do that no they they had people go look no yeah I know they through pictures I think an Open Door one not a
48:30
Zillow yeah they they have people come look at it they just didn't have it's like if it doesn't sell if we we they
48:37
did shitty remodels probably got ripped off on those they didn't have a plan to rent
48:43
them out they didn't understand why you buy real estate they're Zillow and they didn't understand real estate they have
48:49
the fundamentals you rent it out if a deal don't work out for us what do we do put a t in it I what you're saying is
48:57
and discrepancy and this is what we think it's worth versus this is what we can get it at yeah one of those
49:02
Executives was up one night like at 2: in the morning smoking a fat J he's like I got an idea he put it he put it on a
49:10
spreadsheet that right there that's our Gap who's that no I'm just saying uh
49:17
like in the in the disparity there and then but I I get what you're saying it's like having the knowledge to know it's
49:25
like okay if this doesn't go how we or no problem throw it TI in there and ride
49:31
with it ride with it just wait you don't have to force your hand no you don't have to you don't to take a loss on a sale because you know that no just put a
49:40
tenant in there ride it out I mean it sometimes it sucks to suck but put a
49:46
tenant in there you know the ones that that that turn over put that money back out go back to work learn from the
49:51
mistakes you made they bought 7,500 houses with no plans of having a tenant
49:57
that's crazy that's a stupid plan it was going to be 100% flips I think that they they were just buying them and and I
50:04
think their their margin was something crazy like 7% or something oh my God so they're buying them with these crazy low
50:11
margins so you have no no no no room for error but they still could have put a
50:17
tenant in there and waited for inflation to do its thing that was not that was on on their spreadsheet yeah he didn't get that high
50:24
but I you know I think I think overall I think if you had $100 million and you wanted to go do a house flipping is this
50:31
the guy he don't look young how old is he who is this supposedly the guy the guy
50:38
that did it this is Wolf Graham capital y Law School yeah I mean come
50:44
on if he did it which I'm not saying he didn't I don't know anything about this bro he has 500 connections of course he
50:51
did it it's yell law school he has 3,600 followers you guys a baller yeah
50:57
yeah well but y Law School if that's real if that's real I mean you're
51:02
plugged into the oldest money in the country yeah he knew he didn't have to look that far for it no it yeah what's
51:08
it say 500 million AUM private Equity Firm specialized in value ad Hospitality
51:14
Investments across luxury and select service assets recent all cash acquisition of the
51:20
walro atoria and Park City Utah ask him if I can hold $10 million real quick I got do
51:27
we you need to reach out I took a big [ __ ] on this guy earlier I got to come up now now we need him 10 millions in our note fund I'm gonna send him a
51:34
friend request on LinkedIn yeah we should do that send him a video he's in Houston yeah is he
51:39
really wolf gaham he might be our guy we might just go there yeah we'll just
51:45
drive down there and go talk to the guy yeah roll up on him what's up luxury hotels do you do you follow Ben Mala I
51:54
go go to Ben mala's YouTube so Ben MAA he is you you gotta you got to
52:01
listen to this fell this F is [ __ ] phenomenal that one's probably not the
52:08
one that one might be the one watch that's Ben MAA a property that's going up for
52:16
auction you know what that means highest bid gets the deal and you only got 30
52:22
days to pay for it I know this area like the back of my hand all kinds of empty
52:27
stuff right down the block it's sitting there empty I don't know can we buy it
52:32
can we fix it and can we rent it that's what it's all about that's what we do or
52:38
at least that's what Ben Junior's going to do I'm just going to sit around and say all right let's buy it Ben junor
52:44
handle it and then he'll just yell at me every week until it's done I bet your money Ben Junior needs to grow up here
52:50
all right so so you don't know who Ben ma is that guy looks like he eats zins for breakfast no he's has actual he's
52:59
supercharged up so I mean Ben MAA is in the hotel space MH and I mean you can go
53:07
back to his content six seven eight months ago he got in his words not my
53:12
words he got greedy and he didn't lock his rates his rates adjusted on him and
53:19
he had to sell got wiped he didn't get wiped no he ain't wiped he he 1031 out
53:24
of a duplex in Oakland California mhm and he's 1031 to everything ever since
53:31
into half a billion dollars worth the real estate okay so he doesn't get wiped
53:36
there's no there's no there's no wiping this guy because the debt the the thing about and this is like the big not I
53:43
don't want to say it's a secret of of 1031 but this is what the 1031 guys do they start with a small property and
53:50
they just keep rolling it over well let's say you buy that duplex and you use $100,000 wor the debt and it sells
53:55
for $300 ,000 now you got to step up your basis so you got to buy something worth more than
54:01
300,000 so you go buy something for 400,000 okay your debts trailing
54:07
slower than your your assets does that make sense yeah so if you do a stepup basis of only 50,000 and you only owed
54:14
100 you're going to have enough cash and your your debts only going to come up inced incr remedially then you hit a big
54:23
[ __ ] Spike where values go way up rents go way up income goes way up on your
54:28
assets you can sit there and go well hell I don't owe but you know 30% of
54:34
what they're worth yeah I can now do a cash out refund pull all that money out no tax penalty and then go buy the next
54:41
asset and that's what he's done he's refinanced and refinanced and refinanced
54:48
but he got he got some hotels and he said he got greedy who's trying to save 2% interest and his rates adjusted and
54:56
the deal wasn't working out and he's like sometimes you just got to sell him at a loss you got to sell him at a loss and move on now does his loss mean what
55:04
our loss mean I don't think so you know what I mean because he's looking at little more tremendous yeah well no I
55:10
mean he's looking at his interest like your basis is a lot of things right so he's still getting money at closing it's
55:17
not like he's you know what I mean not getting money but he's 1031 and into a different asset and that's what he's talking about here he's always talking
55:24
about placing the money so he's always real estate do what he only does commercial hotels commercial like that
55:29
he actually got into hotels cuz his daughter's Professor taught her taught his yes his daughter's professor at
55:36
College taught her about hotels and then he went and hired the professor and got into hotels and hotels really blew him
55:43
up but he had to sell his Hotel in Fort Lauderdale and and you know he's like it was too far away it was too big of a
55:50
reach it was too you know what I mean it was just too much for me I'm just going to ditch this asset and put it into
55:56
Apartments so he ditched it and put it into Apartments I mean the guy is a
56:02
tremendous follow and if you're you know anywhere in this space you need to be following Ben Mala cuz I mean he's
56:09
us you know when I'm 60 I guess I'll be old and fat and yelling eating
56:15
cigarettes probably eating cigarettes but I mean he that guy's not smoking them he's like [ __ ] like
56:21
Doritos I mean he's he's a great guy we did we did a call with him and he took
56:26
deal that we just did and we told him the we just told him the bare minimum of you can go watch the
56:32
video it's on our YouTube and what did he do he's like yeah know absolutely that's just his back of the napkin math
56:40
he's like no that that makes sense that unit price those rents it's going to work but what else did he do he nailed
56:47
the exit yes he nailed the exit like something that that when we were out
56:53
trying to to to explain it to our investors that this isn't going to be a cap rate exit we're going to ex we're
56:59
buying it wholesale and we're selling it retail we're selling it as individual Lots he he knew that instantly he's like
57:05
oh man you can sell those as individuals boom that's a deal you need to focus on
57:11
that [ __ ] we were calling him about getting him out to an event he's like yall don't really need to be doing events you need to just focus on the
57:17
real estate he did the what that movie Half Baked where they got that guy sleeping on the couch dude like y'all
57:22
need to focus on the robbery right now dude he I mean he nailed it and but that's dope he's in the he's in the
57:28
hotel space so I'm guessing walr Capital just finds a guy like him that wants to
57:35
sell something because his interest rate blues and buys it all cash probably a good trade that's what Grant cardone's doing grant cardone's
57:42
not using debt right now he's buying Office Buildings apartments and everything how's how's he buying them
57:47
with what cash he's buying them with cash that he gets from his investors mhm
57:53
so he he's raised what Have you listened to any recent up to is he bring a fund or does he do
57:58
syndication per complex like he does syndication per complex there is no one
58:03
there is no blank it fun no master fund I mean you can do it if you want but when you get into the paperwork you're
58:09
going to realize how much ass you have hanging out there and it's not the kind of ass that like you get wiped out and
58:14
then that's it you come back next week and you do it it's kind of ass where
58:19
every one of the [ __ ] sue you the government comes and sees you going to prison like it could be I mean I mean
58:26
it like like like the mistakes are the the risk of doing it like the the 506c
58:34
when we do it we'll be registered with the federal government so we'll be we'll have to report to them and everything MH
58:41
it costs $40,000 to set up the 504 it costs $100,000 to set up the
58:47
506 then you have quarterly reporting and everything you have to do if you're not in compliance with that if you don't
58:54
have a law firm and a accounting firm handling that for you and it's not to
58:59
the tea I mean if you the windbreakers show up yeah now you now now you're in a
59:06
now now you're you know alphabet boys well the the the Tulsa real estate fund
59:11
that guy you know I mean all these all these clowns that went out and did it they they you know they did it they for
59:18
sure did it no doubt about it they raised the capital they bought real estate they didn't understand renting it out they still don't how you can buy
59:27
like I think that guy's fund was $15 million and he crowdsourced it so he took like $100 from you ,000 from him
59:35
dam was he set up for that yeah he set it up all properly but he didn't do with the real estate what he said he was
59:40
going to do with the real estate inside of his PPM what did he do just change
59:46
directions or just completely different asset class or what no just didn't do what he said he was going to do in here
59:52
he wrote down in here he was going to do this and he did something well not something completely different it don't
59:58
have to be completely different it can be this much different you see what I mean and now they're digging through it
1:00:04
they're not happy you know he's definitely I don't know you know there's all these allegations on the internet
1:00:10
about him whatever that is is whatever that is but that's not whatever it is
1:00:15
the government shows up to investigate if that's true or false and he just not in a good way right now you know what I
1:00:22
mean that's not not a good place to be in it's not a good place to be in and you know as far as allegations go you
1:00:28
know I mean in the reporting I mean I I think it would say what the assets are I don't know I don't know enough about the
1:00:33
reporting do you know anything about it not really I mean you have to be specific about what assets and the
1:00:40
amounts allocated but I don't know how far it goes into like class or what type it is or those sort of specifics I mean
1:00:47
you're talking about our our documents are 80 pages when you go 506b it's 160
1:00:53
Pages it's twice the paperwork m twice of disclosures it's you know and and
1:00:58
then you know you just got to be you it's generalized but it's pretty specific too you know it's like you're
1:01:06
you know we disclosed in in all of our paperwork so we own these companies and these companies will be doing work for
1:01:12
the fund right that's in the disclosures you know it's like we put
1:01:18
the assignment fee that we paid um you know we sold it we we had it under
1:01:24
contract we paid an assignment fee to the company that had it under contract we put the assignment fee in
1:01:30
the fund so it was like on this last one was a $300,000 assignment fee so we put
1:01:35
that in the fund it's disclosed it's like might even have its own page like you might have to read that five times
1:01:42
so they know very clear yeah this is this is Happ we taking an assignment to ourselves on this on this so I mean you
1:01:52
it's like anything that's not in writing you know you just don't want to be doing so it's like these are the companies
1:01:58
these are the plans this is what we're going to do this is our track record yeah I mean if you're going to go ask
1:02:03
somebody hey can I borrow $20 million like yeah you should they should know where every Penny's going to borrow yeah Equity is not borrowing they
1:02:11
own do you want to own $20 million with the real estate you know that's going to
1:02:17
pay X number of returns so you you know it's like the you know and we don't do
1:02:23
what's it called um the guaranteed
1:02:28
interest uh like return preferred preferred returns we don't do preferred returns at all no preferred return is a
1:02:36
guaranteed interest rate that we're going to pay out it's another word for debt okay because in the winter time
1:02:44
when Real Estate slows down you know we told everybody like everybody I talked to you know you this thing will do
1:02:50
phenomenal during the summer but during the winter it's going to slow way down real estate doesn't sell all of our
1:02:56
rents and and owner finance notes will still come in but the stuff that we're trying to sell is probably not going to sell in the winter time and we had some
1:03:04
kind of slow months I think what's our lowest payout 37 it was like low 30s or something so you know we're below
1:03:12
projection for a month but we have some that are 70 and 80 in the summer so we'll have one that's hopefully a
1:03:19
million that's a big one I hang on to that one now I'm playing but I mean it's
1:03:25
like the the you just want to be I don't know like like on the on the structuring of that
1:03:31
you want to make it deal specific the guys that are out there if they're doing these massive funds they but they do
1:03:37
funds to buy stocks and all that stuff too MH and those are pretty generalized I think it also depends it's like if we
1:03:43
were just a shop where we're like financial advisers or something like that I think that does make it way
1:03:49
easier in a sense where it's like you just give me money to invest on your behalf with yeah so they there there's
1:03:55
got series sevens and they're Brokers that that Wall Street stuff I don't
1:04:00
understand it Braxton he's been studying it he understands it a little bit but
1:04:06
You' ever partner with one of those guys or bring them on or something like that or have those licenses it would
1:04:11
definitely open up to like we can solicit just to take your money in general like I got 10 grand that I want
1:04:17
to put somewhere it's like I need to hold that real quick every every guy that we've talked to that has a series 7
1:04:24
though won't touch it they won't not only will they not invest their clients money they won't come on
1:04:30
as a partner so that tells me there's something in their license that says
1:04:36
[ __ ] I'm going to get it's like it's too small to do anything but like if it gets much bigger than it's like it's just
1:04:43
there's a weird there's too much risk I was going to say there's probably not enough return for the amount of risk that they would take on losing their
1:04:48
license and stuff getting somebody into a bad deal and like when now I have I lost my ability to make money in this space because I tried to invest into for
1:04:55
us to be a product yeah Edward Jones or something it's like how big do we have to be before it's like we got to be able
1:05:02
to suffer a tremendous loss right so if you brought on $100 million and you lost
1:05:07
10% of it like you know you might want to give it back out of your own account versus going to prison right no well I
1:05:13
don't that ain't I mean that's not how Investments work anyways though I mean that's the the risk is on the investor
1:05:20
it like losing money in real estate is a phenomenal task that's that binance guy
1:05:26
yeah but the binance guy was uh crypto yeah he didn't if he' have bought real estate he'd still own the real estate
1:05:33
and it'd still pay him every month should have bought some apartments with that money it I look said more dinosaur
1:05:38
coin just think about it like this if you go by if you go by I I mean there
1:05:43
are there are bad Plumbing bad roofs bad air conditioners
1:05:50
bad parking lots bad tenants you there's bad every everything right but if you
1:05:57
buy a run-ofthe-mill you know you factor in air conditioners
1:06:02
parking lot roofs you negotiate that in the purchase price you replace the roofs
1:06:08
you replace the parking lot you replace the air conditioners you have a good capek budget for the tenants you lose
1:06:15
and you negotiate it into the discount on the real estate and you bought it at full retail even still but you have the
1:06:21
Deferred maintenance into it okay you do what you say you're going to do you get
1:06:26
$200,000 for air conditioners and you go buy the $200,000 worth of air conditioners okay you have 10year
1:06:33
warranties on the air conditioners you know your parking lot's got a little warranty on it your roof's got a little
1:06:40
insurance on it tell me if you put good tenants in which tenants are pretty easy
1:06:46
to find and it pays every month how can you lose money you can only lose money
1:06:52
by one not knowing about those things and not NE ating it into the price and
1:06:57
two not managing it ignoring it letting it [ __ ] fall apart letting it get beat up letting it do whatever that I
1:07:04
mean real estate's good you know it's pretty simple it's pretty straightforward I mean you'll find a
1:07:10
surprise every once in a while you know once you got experience it's harder to find a surprise but you'll find a
1:07:15
surprise every once in a while water line that you didn't know you were going to have to upgrade stuff like that but if you own it for a long time it's hard
1:07:22
to lose money how do you own it for a long time you get get tenants you get somebody to pay you every month you can
1:07:28
own it forever that way I mean Dave Ramsey owns $600 million with the real
1:07:33
estate all cash yeah I'll pay it off all cash it's crazy like $600 million all
1:07:40
cash you think he's going to lose any of that anytime soon probably not do you think if if they came out and appraise
1:07:46
it and said it's only worth $400 million his rent goes down nothing happened he gets paid every
1:07:53
month if he's got investors they get paid every month it's like no man beautiful world I think that's all he
1:07:58
did he positioned himself in front of like as a financial services expert so he just made the whole world show up to just lend the money or just invest in
1:08:05
his deals not lend it's not a loan invest in his Deals they are owners they have Equity they own it they get
1:08:11
depreciation like lending you can get so far creating lenders you want to create
1:08:17
Partners you don't want to be I mean in like can you retire on $8 million I mean
1:08:27
probably can you yeah so so you're going to hit one lick and call it a day and
1:08:33
live till you're 65 on the 8 million depends if you're eating ramen noodles or not you know I don't know I mean to
1:08:39
me it's it's just easier to make 2 million 10 times that year because once
1:08:45
you do well by the people that brought the the money the 4 million the first time once you do good by them they tell
1:08:51
their friends and now you're sitting on $200 million with the capital you know what I mean that's easily placed you
1:08:57
didn't do it you didn't have to force it you bought good Apartments you bought good single family homes you bought good
1:09:03
mobile home parks you got bought good self storage I'm intrigued by retail
1:09:08
because I'm watching Bim Mala so I'm like the warehouse space that Logan Bentley former's
1:09:14
in you know I'm like I see a lot of vacant warehouse and they stay vacant a long time it's not like a tenant comes
1:09:20
around a lot but if I understood more about it I'd probably be intrigued by it
1:09:25
but all of that is you put it in there they pay you every month you deal with the [ __ ] that comes up you get paid
1:09:32
to deal with the [ __ ] you know what I mean like when you got to go replace the sewer line you go replace a sewer
1:09:38
line but you get paid to replace the sewer line you know what I mean it's not like you're out there working for free and you make everybody happy because
1:09:44
they're making 10 20 30% and then inflation does its thing you sell the asset everybody gets paid on the
1:09:51
backside and they're like Hey where's the next one we doing another one you know what I mean I want to keep doing
1:09:56
this yeah we're getting that we're getting a lot of repeat lenders or or investors where they say uh you know they go into a deal with us and then
1:10:02
they love it and then they they come back for round two yeah so it's almost like [ __ ] I can afford to sell this at just over break even put a little
1:10:08
something in my pocket because I already know what's going to happen as soon as we close this out they're going to send me that money right back anyway right I just roll it into a better deal so you
1:10:14
can kind of jump in and out of assets as needed just that's I mean I watch Ben cuz Ben trades assets all the time I
1:10:21
mean he's I mean he's got hotels he's got Apartments your thing or what he does a 1031 exchange okay I mean but he
1:10:29
I mean he does value ad real estate you know I mean so he goes in finds the problems good at negotiating them but
1:10:35
all these guys have to deal with Brokers like Grant Ben they're all big enough you know they're not they're I mean Ben
1:10:42
looks at some off Market deals but they're like pocket listings from Brokers they're not I like working with
1:10:47
Brokers and Realtors man people make fun of them I really like working with them I have I I have a commercial entitlement deal I'm doing right now in Converse 15
1:10:52
acres and I got a broker on that one phenomenal job so you bought it through a broker um no uh he's actually doing
1:10:59
the the backend stuff like the Pam Goodwin model of like going out and finding like single tenant stuff like that yeah he's working on that side but
1:11:06
I'm saying they buy everything through a broker oh okay they just send out off we sell everything through an agent too I'm
1:11:11
talking about they shop I like listing stuff like that let the agent work and make their money too it's worth every penny man yeah yeah we but I'm talking
1:11:18
about they shop on they they don't they're not in the off Market space they're they're they're shopping with a broker looking at deals so they're
1:11:24
negoti ation is a little harder because there's more buyers in them you know what I mean it's like they in that big
1:11:30
commercial space in yeah any any large real estate transaction there's always a broker in land there's less there's less
1:11:36
of that like less activity less available buyers this is true I mean it
1:11:41
but this is you know land the guy last night the $800 million guy what how did
1:11:48
they they buy off Market how they come across that deal up there they want to do mobile homes with us did he tell you
1:11:54
I don't know no I don't think he did so they buy pocket listings and they they buy off Market but they only get only
1:12:00
off Market no no no yeah they bought the apartment deal that they're that they
1:12:06
gave us is a listed apartment deal y I like buying own markets great yeah they
1:12:11
they the the big deal is like you know I mean we stole that deal during Co for $600,000 for 20
1:12:19
units um but I I had never done one much which
1:12:24
I guess 32 two uh 40 bought 40 unit apartment complex two a 16 unit and a 25
1:12:31
unit so what is that 41 units mhm for 800,000 bought that off market and that
1:12:38
was a that was actually a wholesaler in Dallas that sent it to us he where's that complex at it's in kamanche Texas
1:12:45
you're holding on to that thing uh well kind of but no we still manage it but we
1:12:50
bought it stabilized it and then one of our Partners bought us out and so we bought it stabilized it and he had a
1:12:56
1031 exchange and so he bought us out and I mean that's he same thing he
1:13:03
started out with a fourplex in Brian and he's I mean he had apartments in
1:13:08
Albuquerque and then he sold those apartments in Albuquerque and 1031 into that and two other deals all I've ever
1:13:14
done is land man I've never done any multif family or any RV parks or anything like that yeah I mean just know
1:13:21
that's what I'm good at it's what I understand and I don't have to be be the know-it-all Guru guy that just does
1:13:27
every kind of deal you could think of but but land I mean land is good right
1:13:33
so what do you what did you make last year what did you pay taxes on I'm still doing it right now actually yeah I got a little bit of a mess I think in U in
1:13:41
2022 I made a million in land and then we made a million in CRM so last year was probably very similar maybe a little
1:13:46
less right so so $2 million is what you pay taxes call it5 yeah yeah how much
1:13:52
depreciation did the land give you nothing okay so you're playing the game
1:13:58
yeah you know you're playing the game you're in real estate you're a real estate professional and you got nothing
1:14:05
to offset that income I got I got that uh that big office that we had that 5,000 foot office the the the commercial
1:14:12
dealership there's three buildings on there so you got so I got some depreciation you got some depreciation
1:14:18
Braxton how much did you pay taxes on uh last year not done yet but it's
1:14:24
going to be probably 60 or something be my tax
1:14:32
liability but there probably well over 100 in
1:14:37
depreciation do you see that's he gets to he gets to take
1:14:44
100 in paper losses pay my 10 grand or less in taxes for what should have been
1:14:50
30 or 40 Grand yeah I'm going to ride off my truck my cyber truck that's business yeah all that but yeah little
1:14:56
stuff like that and then I mean I pulled in a over a million in cash by February so if I got to pay three or 400 taxes
1:15:03
like yes still slick move to do to but you can you can do that with Apartments
1:15:09
you can buy one apartment complex get the depreciation you know what I mean yeah and offset all that
1:15:16
income because you're still in the ones you guys are throwing in yeah they sevene appreciation schedule so we want
1:15:22
to do those on in Tyler we want to do those those all be personal property so that's
1:15:27
a sevene depreciation schedule same as a truck same thing on that 180 Lots you know if we sell some for cash some
1:15:32
seller finance some would just probably drag in some mobiles but if you're not renting any of them you don't get any
1:15:38
depreciation like the I'm telling you like like you when you get this big
1:15:43
dollar CPA he's going to tell you all this money you're making you're making millions of dollars just said I paid
1:15:50
taxes on $2 million I paid six 700,000 worth taxes he's gonna tell you
1:15:55
get some depreciation [ __ ] buy some [ __ ] assets that pay you every month and get the
1:16:01
depreciation and quit paying all these [ __ ] taxes we're heading for a build to rent model is what we're after where
1:16:07
we can throw the houses in and just keep them but but you you're going to do that for 2 years 18 months whatever and
1:16:14
there's going to be something that's below replacement cost sitting right next to it that you could have
1:16:20
bought all you had to do was buy it but you're tired of going to Home Depot
1:16:26
sick of people man I mean you got we got enough people on our team that we could start doing acquisition so we look at
1:16:31
check this out check this out so oh I got the mobile home we're doing got another we got some depreciation check
1:16:37
this out check this out this will blow your mind Jacobs a licensed real estate agent
1:16:44
as property management company has all these deals MH do you know what he made
1:16:49
in 2022 negative $400,000 damn that's a good year
1:16:55
right do you know do you know what that means for him no tax burden for little
1:17:00
well he now has to make $400,000 to pay taxes to get back to
1:17:06
zero yeah he gets to carry that forward as long as he wants now how many years
1:17:11
can he carry a negative
1:17:16
$400,000 is he going to use the same tax guy next year uh dude it's it's the
1:17:22
depreciation yeah it's like the depreciation that's hitting his K1 is
1:17:28
wiping out his agent income his property management income it's wiping out every
1:17:33
bit of income every single bit of income he makes gets wiped out and he gets to
1:17:39
carry the loss forward to the next year so this year if he loses another $400,000 on the next year he's got to make 800 start stacking it like you're
1:17:47
you're playing in the real estate realm yeah but you're like Trump paid what
1:17:53
$750 yeah we're we're accumulating over time and distance we're starting to accumulate depreciable assets like I said we're looking to throw some up too
1:18:00
so we're moving into the space do you some good momes will do you good we just got really good at land man like I said
1:18:06
I made in January what we made in 2022 and so now yeah let's let's get some some assets where we can write that [ __ ]
1:18:11
off take you you could take that money day one and park it into a a a mobile home and you know I mean you got to set
1:18:19
aside your money for your taxes and do that we're looking at it like we bought a five acres of the ranas that had a bunch of meter poles on it and we're
1:18:24
looking at another RV park down there so we got our eyes open par don't have depreciation at all they I mean well you
1:18:30
can depreciate the infrastructure I guess SE septics roads poles fences
1:18:35
lights I mean fences lights you do a laundry room or something but it's not going to be a lot I mean but a mobile
1:18:41
home on there for 110,000 now you got that divided by seven I mean it's pretty much going to
1:18:47
take out all of its rental income I need you guys to start putting some mobile homes out for us we're going to do it yeah we got some we got some some
1:18:53
investors at play you got to I mean I'm I feel bad now I'm bitching at Anthony I
1:18:59
don't want to [ __ ] at Anthony no we're good we're heading in the right direction man one of our investors does want to throw some some houses on and
1:19:05
just leave them there and rent them out he wants a depreciation that's his mindset so well that's what every investor we got wants
1:19:12
like um think that guy's good for like 500,000 how the fund do how how much how much of the fund was
1:19:18
offset by appreciation do you know I don't know that the total number yeah it was it was very good so we we sent all
1:19:25
those people not a negative K1 but a very low K1 we sent them a bunch of money and then we sent them a K1 that
1:19:30
said they made way less because of the appreciation got to write some of that off nice man that's the game I think
1:19:36
knowing how to play that game gives you permission to ask for some nice sums of money ites somebody doesn't want to play they don't want to play we had a guy
1:19:42
that was going to throw us 500,000 and we turned it down I just didn't like his Vibe who was he uh I don't even know the
1:19:47
guy's name Daniel probably knows his name damn braxon you like his Bob we had like two meetings he had 500 bands ready
1:19:53
to go and I just told Daniel I'm not feeling this dud at all not going to take the money I I want to I want to be cool with the people that that invest
1:19:59
with us next time get him to wire it and then wire it back oh that' be even more tremendous yeah well that way you know
1:20:06
he's got it you know what I mean cuz sometimes the vibe can be be he's lying like he don't got, that could very well
1:20:13
be true yeah but you want to know for sure you're like once he wires it and you're like you know what I don't like this guy I thought he was lying about
1:20:19
this money the whole time send it back if anything changes down the road though he knows that it's like I gave it to him
1:20:26
he gave it right back yeah I think we just got to have that that good energy with the people that are going to throw
1:20:31
money into our stuff cuz it's going to be a long relationship and we've had the opposite we're like hey why is the deal taking so long why is the deal taking so
1:20:37
long like man it's going to sell when it sells like we had we had a deal in this last fun real nice guy real real nice
1:20:44
guy don't have anything negative to say about him but as soon as we put debt on the property like that wasn't the deal
1:20:50
but in our PPM it said we have the right to put debt on it if we want to like that wasn't a deal I want my money back
1:20:57
and our attorney was like you don't have to send it back he's like you you you know don't don't don't worry about this
1:21:02
guy just tell him to [ __ ] off and we're like no not at all send them send it
1:21:08
back send it back I'd rather not have the send it back right now I got one of those she got a little antie and she
1:21:13
just said I just want to get my money back out of the deal and I just send it right back to her there you go I don't want this I don't want this problem or
1:21:19
this headache yeah oh no update on Commerce oh yeah yeah check this out we
1:21:25
got a continuous but a short one not a short one a short one in attorney language how how long has it been going
1:21:31
on now 2 years I don't know it dude this deal pathetic dude this Deal's
1:21:39
[ __ ] Commerce property but I still haven't been able to find this lady I've Googled her name I Googled her name with
1:21:45
anything from any court on our side no no what so what happened is okay so Commerce deal is a is a deal we bought
1:21:52
with Anthony damn there it is so he bought it we
1:21:58
bought it he had 6 months to sell it got it sold twice sold it twice title would never close yep so it's a weird one we
1:22:07
owned it we told him he had six months sell it if he didn't get a sold in six months it was our deal Cory's like I'm
1:22:13
going to build a lake there yeah I was like I'm going to keep it forever so anyways title would never close it we
1:22:19
never could get a straight answer we had all these different title companies and the original title company that he bought it through through was going to
1:22:25
close it and then they even refuse to close it 6 months expires and at least
1:22:30
that title company told us there's a federal government list pendants a criminal asset forfeiture after this
1:22:35
thing had already closed through title they said we were good clear title insurable title and then this is this
1:22:41
when we were selling it now this pops up this pops up so criminal asset forture um federal government list
1:22:47
pendings so this lady has a federal case against her now there are one two 3 4 5 6 7 8 9 10
1:22:58
11 12 13 14 15 16 17 18 19 20 21 22 23
1:23:05
24 25 26 27 28 29 29
1:23:12
codefendants on this they're involved in this case it's the United States of America versus 29 people right here and
1:23:20
this is what they said motion for continuance filed by defendants so they had until May 17th to ple out now here's
1:23:26
the deal we have title insurance so what does that mean so title insurance has
1:23:31
essentially we have debt we have the purchase price we have we have Title Insurance up to that amount so the
1:23:36
lender policy Will trump that cuz $125,000 worth the debt whatever so there's that but because we sold it
1:23:44
twice and had two different contracts on it now we get to say that we have real losses right it would be real hard if
1:23:51
you if you hadn't sold it if there was no sale if there was nobody that tried to buy no was interested at that price
1:23:56
nobody was interested at that price it would be hard to go to the title company and say the deal so he wanted line share
1:24:02
for the equity that's why the guy with the 500 yeah he just wanted too much out of the do so
1:24:08
anyways if we didn't have that those two contracts we wouldn't have any real losses but now we can show real losses
1:24:13
we can show we had it sold for this cash going to close this is a real loss so
1:24:21
now we get to invoke the Title Company's Eno policy that's a no missions so the Aon no missions
1:24:28
policy so essentially we initiated a title claim we
1:24:33
initiated um a claim on the Eno policy and the title company that they agreed
1:24:39
they said yep that's fine we understand but that list pendants is only list
1:24:46
pendants they have not seized the land yet so we're like what does that mean
1:24:52
like well until they sees the land there's not a title
1:24:57
claim like okay oh wow so
1:25:02
now so we tried to go before the judge that has a criminal case and get him to
1:25:08
rule on it but until she's guilty or innocent they don't have a right to
1:25:14
seize the land if she's innocent list pendant goes away wow if she's guilty
1:25:21
then they have a right to seize the land and then so once she's found innocent or guilty if she's found guilty then we get
1:25:29
the petition to court and say hey hey that list pendant was frivolous yeah
1:25:34
like we want that list pendant lifted and they get to say yes or no if they say no then the Eno and title policy pay
1:25:40
if they say okay we'll lift it then we own the land and can have marketable title what a great piece of property and
1:25:47
a great area too if you can get clear title on that one holy smokes what a great piece of property well it is it is
1:25:52
a it is a great piece of property but I still can't figure out what the charges against us lady are it doesn't say here
1:25:58
I have an idea of what I've just hear say but what is it now you don't do you really know I
1:26:05
got hear say there's there's there's 30 people on here so what how could they all 30 of
1:26:13
cuz you said it was like an attempted murder or something or or a murder I think I think an attorney got killed how
1:26:18
did 30 people kill one attorney that's why they're all getting probably the same charges like it was a
1:26:23
a per apparently and again this is all heay I'm might making all this up just for entertainment purposes but uh I
1:26:30
think it was um like I I heard like maybe cartel or something some kind of like group of people there's some white
1:26:35
people names in here like Mark who's Mark hardcore
1:26:41
killer Brian Brian Lee sounds that's my dad's name really M call your dad or dad
1:26:49
what were you doing right about March 7 there's two
1:26:55
Parks anyways I don't know man there a Shar a long weird story that's for damn
1:27:00
sure what what I mean little bit about it anything I don't know again like I said supposedly that they kidnapped some
1:27:07
attorney and I don't know what they had on them ended up killing the dude and so they everybody went down for it huh well
1:27:14
apparently there's 60 people on this on this deal here cuz I thought it was given names but then the very first one
1:27:21
was one I was like well they don't have a one-year-old tied up in this steel you know what I mean so anyways you know
1:27:27
might be a ferocious little bastard well it goes 1 2 3 4 five so that tells me it's going and then it goes to 10 15 so
1:27:35
several of these people have already plead out ours is not one of them um but
1:27:41
they they they had to put in their their plea um by May 17th they filed this
1:27:46
continuance and they got it until October so five months and a lot of them
1:27:52
haven't filed at all anything well they got a plea that they got they got a plea or they go to trial October
1:27:58
4th so they got until octob no not October October 4th is whenever they
1:28:03
have to um go to trial they got a continuance
1:28:10
until when was
1:28:15
it um finds the defendant of knowingly intelligent voluntarily government has
1:28:21
no objections to a continuance yeah apparently it was pretty bad that's why the federal government got involved
1:28:29
jeez to ask my dad about it it only says we got to sit down face
1:28:36
to face what are you doing on March 10th hold on I know I saw a different date in
1:28:48
here August 30th deadline for pre-trial motions responses to motions are due and
1:28:53
accordance September 13th notification of plea agreement or motion to continuent shall be filed with the court
1:29:00
by the date after deadline defendant may not receive points points reduction for acceptance
1:29:05
of responsibility so they got to basically they got to go before the federal government and say I accept
1:29:11
responsibility for what I did and then they get a reduce sentence or whatever I don't know H that's a tough one man but
1:29:17
they they convict at like a 97% rate geez so you would think I
1:29:25
take your well you can imagine all the due diligence that went into bringing up those charges like they didn't just like make it up in an afternoon mhm and then
1:29:32
they're giving them more time like the the defendants ask for a continuance the government has all these
1:29:38
resources they have more time to build their case but that's all it is you have to extend six months you're like oh good
1:29:44
because we're still waiting to hear back from what's her name well and allegedly she's not in jail oh really well that's
1:29:51
what our that's what we had to buy it through with the power ofor that's what the daughter did she went to supposedly she went to the jail and got
1:29:57
it signed maybe she forged it what yeah she the daughter bought it
1:30:04
to so I wonder if this is federal government is this like the FBI rolled up and they've charged 29 people now
1:30:10
arrested 60 sounds like it yeah a pretty big deal 60 but no she couldn't Forge
1:30:17
anything was an argument over a property line do what it wasn't something as simple as an argument over a property
1:30:22
line boundary line how can they seize property if the property wasn't involved
1:30:28
in the case I don't apparently what I understood or heard again is that they
1:30:33
just put a lean against all of her assets just blanketed everything I guess cuz they don't know where maybe there was some dirty money I have no clue it
1:30:39
would a murder doesn't equal dirty moneyed that who knows who knows all what they were all involved in you know
1:30:45
so somebody usually that happens when they freeze your assets is like something was there was some kind of like illegal money involved like maybe
1:30:51
selling drugs something like that well we're a good faith purchaser I feel like that'd make more sense we still haven't
1:30:57
even been to the property really oh I'm like [ __ ] no I ain't it's like it's a
1:31:03
good little Drive well I just don't like if we got to go testify or do something like now you done told me all this [ __ ]
1:31:09
that I didn't know now I'm sad I have to testify that well Anthony told me on a
1:31:14
podcast I heard I heard there was a power of attorney involved somebody was
1:31:20
in jail but if she was already if she was if she was in jail then um who got the money we need to go back
1:31:27
to Title One see I think the daughter did the daughter that that did that I did the deal with she called us off of a Google ad we started talking to her so
1:31:35
um I guess she I don't know if she deposited into an account in her mom's name I have no clue how she got the money like how how that ended up going
1:31:43
down but cashier check tookh place she used that same title company cuz she
1:31:48
said oh we we my mom has sold a different property through the same title company so I'm like okay cool they're ready well that's the one thing
1:31:54
they said that's the one thing that title company said they're like oh we've been expecting you to call cuz it happened on the other property too oh
1:32:00
really on the other one too was she she uh left that part out conveniently well no it had it had when she sold it I
1:32:07
don't think it had happened yet cuz this was months later right so I think they
1:32:12
sold them all at the same time I thought she had already done it before and then she she sold us this one no they I don't
1:32:18
think title knew if they knew about the list pendants on the other one they would not have closed this one I don't think it popped up or they they missed
1:32:24
it somehow every titlean missed it Kane title missed it Kane title missed it and was going to close
1:32:30
it and that's how we end up finding out can title was everything was set to close the buyer knew about the list
1:32:37
pendant um through the the other Title Company um and asked when it was closing
1:32:45
time asked what about the list pendant and they're like we didn't see one and they're like well will you check before
1:32:51
I Clos and they went and checked and they're like oh yeah there is one so that suck man that was too bad too that
1:32:57
guy was ready to go and then uh he he did a price drop on us he wanted 100,000 reduction and was still going to close
1:33:04
allegedly he said he'll take it with Liz pendant and then uh I guess he thought about it his wife was like you better
1:33:09
not buy that damn thing well I mean he would have I think he would have a better chance of getting it dropped than
1:33:15
we would why because he's two buyers away oh okay
1:33:21
s say you know what I mean yeah like you know it's like the government the
1:33:26
government's [ __ ] so you don't never know but it's like I mean our attorney said that the argument is that they got
1:33:32
the money you got the money you can go after the money this property wasn't involved in the crime is what he said I
1:33:40
I don't know we're not going to go I'm not going to go look around but maybe you got I mean we're going to be back in
1:33:46
the deer season might be about time to go look around yeah get a deal license so we've
1:33:54
already missed two deer Seasons out there so we got an expensive deer lease right now yeah I would at least just
1:34:00
take advantage of it while it's there yeah and then we tried to get the the cattle I was having a conversation about
1:34:06
somebody about the cattle I was like I don't know allegedly there's cattle out there
1:34:12
um and I was like uh they're like well you can't do anything with them they're they're stolen like blah blah blah blah
1:34:18
blah like you need the owner and this and that and I was like okay well then we won't do anything anything with them
1:34:24
he goes think you're going to get charged cuz um you're you know leaving them to die or whatever and I was like
1:34:31
but sounds like I'm [ __ ] you know what I mean so it's like best case really is never go out like have you been to the C I'm like
1:34:38
I haven't seen any cattle I heard there was cattle I was asking you if you wanted to go investigate this and do
1:34:45
something with these cattle and you're just told me that everything I could do with these cattle might be a crime so I'm not going to do anything confirm
1:34:52
that they're there yeah I'm not go look never seen one yeah it's like I don't don't care about these cattle no more I
1:34:57
figured if you wanted to do something with these cattle you could but since you're giving me all this [ __ ] I
1:35:04
don't care like it's like I don't I'm not curious enough to go find out so anyways
1:35:10
interesting world we live in it will be funny when we get there though and there's just a [ __ ] herd like they
1:35:16
just been out there [ __ ] and breeding and they're [ __ ] wild as [ __ ] it's like a safari you know they
1:35:24
[ __ ] attack you they're attack cattle we can make one of those like drive-through deals then just like we've got some wild cattle out here then we
1:35:31
have to call the cops cuz we'll be like n we don't know whose cattle those are and but they the the ones that were born
1:35:36
won't be ear tagged or branded Soh I mean they don't have serial
1:35:41
numbers so but yeah we get the sheriff's department out there to get them we like we need these cattle off we don't know
1:35:47
who they are they're not ours they could have been the previous owners let let the sheriff deal with them yeah but but
1:35:53
I doubt I mean cattle are pretty tough though I don't know it's been a
1:35:59
while has been a while could have busted in a fence by then I think the neighbor
1:36:04
would have done something who knows I haven't seen him never been there yeah the neighbor was after it to men the
1:36:10
neighbor wanted a big chunk of it did he the guy to the east directly east touches the
1:36:15
property yeah what do he want like half the property oh he wanted the half that wasn't in a flood zone oh he said he
1:36:21
didn't care he just wanted to EXP ban his land damn well he might have already
1:36:27
we might go over there and he might be squatting on it yeah he already has it looking real good he might be two years into his
1:36:36
claim well the good thing is I guess we still got the a exemption the taxes are cheap so anyways but yeah we'll wrap up
1:36:43
Anthony we can the people find you check out hive mind CRM on all platforms Tik Tok Instagram everywhere you'll find me
1:36:49
or Daniel you can Google Anthony giona Daniel Martinez hive mind
1:36:54
kind oh we got the live event coming up guys it's uh July 27th or
1:37:00
6th why you looking at me go to H mind CRM find uh it's July 26th or 27th it's
1:37:06
in Corpus so we're probably going to do like a VIP day the day after the event so it's only one day it's always been
1:37:11
two years every single time thank you Corey and braxon you guys have shown support to us from Dallas to Fort
1:37:17
Lauderdale San Antonio so uh this year in Corpus appreciate it if you guys can make it on down one
1:37:24
but it's a one- day event this year uh and then uh the second day is probably going to be VIP speakers Bo stuff boats
1:37:31
and hes like you did the last time dude what hold on go back where's it hi M CRM
1:37:37
he had it brought up but the internet wasn't interneting should just be front page yeah watch it should be a uh I
1:37:45
think I don't know what's going on with the iio sites with our computer maybe if you put a slash event or
1:37:52
something have M event 2024 not found I don't I don't where's
1:37:58
Daniel when you need him he's in my phone is Daniel hive mind a right there it is that's his actual real name never
1:38:06
mind that ain't it that's
1:38:16
gay is that the event he even got a PIN to the top of the group is it he to get
1:38:22
on to Daniel be like pin that thing to the top of the group Daniel where you at man he's probably in the chat there
1:38:29
would be no hive mind without Daniel I'm not doing all this computer stuff event top top tab
1:38:38
middle there it is goes how the hell did you see that eagle eyes Eagle Eye he's
1:38:43
only got a good left eye 20 in my left eye and the other one cany [ __ ] they don't 20 nothing what did you do like
1:38:50
this like this just really focused with my life left I know those guys July 27th
1:38:56
July 27 9:00 a.m. he said 26th I said or or 27th in my defense I was half wrong
1:39:02
you'll be there the 26 so you're right it's Emerald Beach hotel in Corpus Christie on U I think spawn Road or SP
1:39:09
some they spond something or other but uh yeah one day event it's going to be fun we're going to hang out afterwards
1:39:15
mixer there's like a little tiki bar right outside of the event space rooms overlooking the ocean so it should give
1:39:21
you those those vibes from like from the last event brex got jet skis you going to bring the jet skis yep they ripped
1:39:27
out there yeah we'll do something ridiculous it'll be fun you going to launch your jet skis off the beach I'm
1:39:32
going to do something the day before for the people that show up early even if it's just dinner so if you guys can get in the day before and stay the day after
1:39:38
it's going to be cool stuff happening I'm I'm bringing cocaine and zins what
1:39:43
the heck and I'll bring some jet skis I'm lying I'm bring the salad I'm
1:39:49
not bringing the cocaine you don't want none of this [ __ ] do we
1:39:55
it's like the only reason I say that is because my zen looks like cocaine on the top of this awesome deal you did you
1:40:03
tell everybody did you tell the nice folks about that energy drink you have which one what you have in there oh uh I
1:40:09
cut a Zen open and dropped it into this liquid death and then didn't drink
1:40:15
it it tasted fine I just forgot to drink it made you forget to eat no I had a big
1:40:21
burrito for lunch I'm not doing well I need a nap I I thought I thought Nick
1:40:26
was still in here shooting content so I went to sleep on the couch so while you were in here waiting
1:40:33
I thought he was in here I was like they're going to get me and then I took a nap to you man so
1:40:42
anyways I appreciate you coming up you're out of San Antonio Y where all do you buy land anywhere in Texas with
1:40:49
water with water and access to Electric right hopefully septics fine I like to I
1:40:55
prefer to be by a big city with like a million people and above but if it's a Tyler one of those guys Waco Temple we
1:41:00
still consider that in Anchor City but I like to say by the big five like Austin Dallas Fort Worth Houston San Antonio
1:41:08
especially that's my my area but yeah as long as there's people there that would buy I don't want some desert squares out
1:41:13
in the middle of nowhere on the way to El Paso no offense to El Paso but I've never done any deals there dude they
1:41:19
that's old school they did amazing I don't know what they paid a$1 50 or
1:41:25
whatever they paid for that out there and then chopped it up and sold it to people from New York have you ever looked at that on Lang Glide m- you've
1:41:31
never looked at it what is it can you go to is Lang Glide free no but on the
1:41:37
desktop I can log in but I don't know log in oh no dude go go go to Van Horn
1:41:45
Texas and go a little bit up until left of Van Horn there's no roads just
1:41:50
chopped up desert squares there's there's not a road Road there's not an easement there's nothing but tiny
1:41:59
squares now they might not be tiny they might be 10 acres they might be 20 acres they might be 100 acres but you click on
1:42:06
them and it's Nevada New York Hawaii [ __ ] this and that and so forever ago
1:42:15
they I don't know I don't know if there was a tax benefit I don't know if there was a gold rush I don't know but they I remember the Billboards own a ranch in
1:42:22
Texas own your own Ranch in Texas own your own Ranch in Texas I think I've seen those driving and it's like $20
1:42:28
down $200 down $300 down and you can own a ranch in Texas and they owner financed
1:42:34
all that [ __ ] junk to people that wanted to say I own a ranch Texas
1:42:40
there's there's some a lot of gurus that teach that desert flipping Square crap I'm just not interested you see it it is
1:42:47
all well that that's one guy that owns that find a different person
1:42:53
that's cobon Ranch what size tracks are they this one is those look
1:42:58
bigger doesn't even say man Hornet up to the left up and to the
1:43:05
left no those are all those are all sections you'll know when you get to
1:43:11
one yeah that you can't see further out like it's zoom in so much what I'll do is I'll take the county of of the major
1:43:18
city right like let's say Fort wor and Dallas whatever just crap out the whole entire County that the city exists in
1:43:23
and then I'll just hit all the counties that surround it oh okay that's my target yeah like a donut around every
1:43:28
major city so like Bear County like San Antonio I won't even look inside of Bear County I just I just all
1:43:35
outskirts yeah everything Medina just everything around it nothing in the city and if there's a deal in the city
1:43:40
whatever but I'm not looking that's what somebody will send me I got 14 acres for 3 million no
1:43:47
see let me see this so they took the sections oh no so they take an entire
1:43:54
section and then it's like Sandy Gary on y'all huh yeah we're yeah we're still going so
1:44:01
this guy lives in Arizona 38 acres 38 acres oh my God this guy lives in I
1:44:07
wonder what he paid for like 1,200 bucks Louisiana $300 this guy lives in Canada Canada that's terrible ain't
1:44:15
that [ __ ] a crazy and I mean there ain't an easement there ain't a road no there's nothing you want to talk about
1:44:22
riding some junk paper junk paper but I mean the whole the Minnesota that's
1:44:28
Minnesota diversification dude if if you like there's some idiot out there that's
1:44:35
sitting in Minnesota right now that's like yeah I got I got 30 acres in Tex got a little ranch down there we Haven
1:44:41
made it down much got a couple acres in Florida I got a little Ranch in Texas you don't got nothing it's all out
1:44:47
of state all out of state people they marketed it tremendously well that's like the oldest cuz when you're driving
1:44:54
to El Paso still youill mhm that's it all it is I saw
1:45:00
that like $250 down and crazy [ __ ] desert squares yep yeah no thanks yeah
1:45:07
dude they probably made a killing though what's what's the rule if you buy it like if you invest in it something you'd
1:45:12
want to keep in case you don't sell it something you'd want to hang on to I mean I wouldn't mind I mean you I would
1:45:18
be okay with that but if I lived in New York I'd be mad right now mad but that's probably what they think
1:45:24
Texas looks like it all looks like that they probably believe that's what Texas looks
1:45:30
like I forgot where it was and I was like yeah we have horses on our highways like really I'm like [ __ ] no there's a horse Lane go what what
1:45:39
um um go to go to Zillow and see what see what we bought a th000 Acres out
1:45:44
there for be $14 really man I mean I think somebody
1:45:49
sent me a deal out there and the acreage was like 90 bucks an acre I'm like no not
1:45:55
interested but 10 acre tracks $10,000 an acre I'm just not messing with it
1:46:01
man not not $10,000 an acre 10 $1,000 an acre I don't know you get somebody on
1:46:07
$80 month payment it's just weird weird deal I'm just not going to do it 20
1:46:12
acres for 15 20 acres for 10 acres for 4,900 bucks 80 acres for
1:46:20
72 so you should have bought the $90 an acre n that's aund that's 10 man take
1:46:28
you a year all listed 55 for 159 Acres see it's not moving at that price I see
1:46:33
power poles Anthony 159 Acres I see a wrench in your future the weird part about it is
1:46:40
there's water out there yeah seriously you know I mean you just got to drill for it or what yeah there's going to be
1:46:45
drillable water this is all platted 10 acre lots out here in the middle of nowhere I wonder how deep
1:46:51
those water nothing out in the middle of nowhere how much is it this is scam hey
1:46:59
nobody cares 800 bucks nobody nobody cares if you're encroaching on your neighbor's land cuz he's never going to
1:47:05
go check for see this isn't a scam like if you are paying 5,800 bucks for 10
1:47:10
acres like you know but you bought it for $90 an acre maybe you could have mined some sand out there zero what wait
1:47:16
5800 10 acres that's 580 580 Acres that's 5X 19,000 53 Acres I'm about to
1:47:25
buy one wait a minute let me find something I can subdivide real quick dude
1:47:33
I'm I'm not mad at it I mean it's beautiful out there I hope the guy made money like but if you this one comes
1:47:40
with a shed for 70 I'll tell you what happens with Len when you get a great price on
1:47:46
the land I closed on 100 acres in Orange Grove Texas like 2 hours Northwest of Corpus or hour and a half something like
1:47:52
that it's taking about a year and we're only like 80% sold out so not that it won't sell but it's going to take a
1:47:58
little while so how interested are you you know in and talking about desert squares for the next 18 months right I
1:48:05
oh no you don't sell the desert squares what do you do you owner finance
1:48:10
them you move out there pursue your American dream that's all you braxon they they bu an infinity pool
1:48:19
they're like running radio ads and stuff up there probably in the Northeast cuz how do you get customers from all over
1:48:25
the country it's probably late night Fox TV Fox News infomercials right after the
1:48:30
gold coins it could be anything own yourself a ranch in Texas there's just some mall
1:48:37
sitting there $5 5800 and they got ran $72 down no cuz if if you think about it
1:48:44
places like Maine New York all that they'll like they're like I I can't believe what Len sells for in Texas it's just nuts but there's so much of it here
1:48:51
like you can pick your price $100 a month though for 10 acres like why not
1:48:56
maybe it's just a cool gift to give to one of your like grand kids could it could be like the the Irish uh the Irish
1:49:03
like you can be a king a lord or or lady you can be a you can own a ranch in
1:49:09
Texas you be a Texas Rancher for somebody selling like Moon squares or something like a square foot on the moon there you go something like that like
1:49:15
here that's what they did AC in Texas they did that somebody like somebody's
1:49:21
nice GG like you're all gather around the Christmas tree you open it up like what the [ __ ]
1:49:27
is this yeah you just move out there and start squatting you got a deed for you go own ranch in you own 100 acres in
1:49:33
Texas boy where's it at I don't know thank you and they're like it's one of
1:49:39
mima's quacky gifts yeah last year it was silver dollars I got I got a good
1:49:45
deal it was $1,500 it has no uh address either it has like 42 number [ __ ] VIN
1:49:51
number said you ain't never going to find it you get out there and it all looks the exact same yeah that's why
1:49:58
nobody's fenced it off cuz it's just a big giant desert nobody the surveyors won't even drive that far out there's
1:50:04
like it's that area just GPS it here down lad this app just stay over there just in that area man we don't use pins
1:50:10
in that area now we should go out there and shoot content we should drop to these plots of land we should shoot we
1:50:17
should we should research way yes out we should research
1:50:23
what the who did this we should go back in the deed records figure out who it was call them up and be like hey how'd
1:50:29
you do this what what was the what was the plan call the owner and be like hey
1:50:35
how did you come across this why did you buy it do an entire like documentary over this and then drive out there and
1:50:41
be like if it wasn't 14 hours away I might drive it how far is it to Van Horn Texas from here it's ways from here yeah
1:50:50
it's ways but Van Horn beautiful oh only 7 hours and 52 minutes
1:50:56
right up the road that's close I was going that way anyway I think we El Paso event we can do bandit signs in pacas
1:51:03
yep how far is Chad from there Chad he's right down right at that point he's
1:51:08
right there like really like an hour nah two hours hour and 43 minutes oh man always
1:51:16
stay in Van Horn whenever I drive to El Paso really is there anything there
1:51:22
there's a Hampton in in Van Horn Texas there's also a couple 10 acre tracks you
1:51:27
can buy and there's chewies Google chewy there chewies in Van Horn go Google chewi in Van Horn it's famous chewies
1:51:34
the Mexican food restaurant oh really it's not the chewies that is now famous
1:51:41
but I think it I think it became I think I think the new chewes kind of played on the fame of the the Van Horn chewies and
1:51:49
they just don't have enough money to sue them really you yeah unfortunate Google it uh soill chewy Van
1:51:58
Horn do they have a website world famous permanently clo clo what no way you a't
1:52:06
give enough business Cory they got the 3.3 stars and they caught it quits 1,200
1:52:11
now now go to actual Google we're out of here now you're going to you're going to be sad when you realize that this is permanently chose closed we're going to
1:52:18
wish we could have been experienced it mhm not really we should buy it and reopen it
1:52:23
that's what I was thinking about Red Lobster yeah let's try to get it sell fin don't go just scroll down and see
1:52:30
you acing you can read it right Texas bucket list right
1:52:36
there Madden Hall of Fame how did they get the Madden Hall of
1:52:42
Fame so John Madden refused to fly after his coaching days and so when he was an
1:52:48
announcer he was on the Madden bus so in between like so he would announce a game
1:52:53
in LA and then the next week he'd be in Houston and they would he would ride on
1:52:58
a a bus and he would stop at chewes it was
1:53:04
his favorite Mexican food restaurant and so in in in there they
1:53:09
have the John Madden table I saw that it was label look they even got Jesus
1:53:15
there I can't believe it's closed that's a damn shame they must have just
1:53:21
died that's the John Madden table me and emry sat there and and
1:53:26
ate that's where he would sit that was his spot that was his spot he roll up in the bus and there's all pictures of him
1:53:32
in there apparently that's his chair he'll get there and be like hey get those people off my
1:53:38
table buying their food but they got to move their ass mhm they I mean wow I remember that guy he was all over TV for
1:53:44
a long time yeah look at that I don't know if that's good Mexican food is that
1:53:49
good Mexican food it looks good it looks good I mean mine was delicious I'll try
1:53:55
it hey are we going to lunch after this we had a burrito that was a long time ago that was that was a podcast ago but
1:54:02
anyways we we'll wrap up later guys like subscribe all the things thanks for watching guys hey guys we hope you're
1:54:08
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