Buying a Home in 2025: Confusing, Corrupt, Impossible?

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[00:00:34] Es ist wild zu sehen, was es geht um mit den Bewerben und die Realtors und die Realtors. Wie viele wissen, was es gut ist. Ja, es ist sehr confusing. Und auch unsere Freunde, ich würde sagen, sie sind erstue Real Estate Leute, aber sie sind erstue Business-Kabel, die wollen einfach ein secondes Haus oder sagen, sie sind, sie haben, ob ich das wirkliche? Ich habe das wirkliche? Ich habe das wirkliche? Was ist das? Was ist das? Es ist das Wiede, was interessant ist, für diejenigen, die in die Beschreibung, eine

[00:01:03] The buyer's responsible for hiring and paying their agent, and the seller is responsible for hiring and paying their agent. So technically, the buyer's on the hook for their commissions and sellers for their commissions. So what a lot of journalists and people that were reporting the quote-unquote news thought that since the sellers weren't having to pay the 3% commission to the buying agent,

[00:01:29] that they were just going to lower their house 3% because they just factored that in. They basically just said, I want to sell my house for $500,000 plus 6% because I'm paying both sides. So now that I'm not, I'm going to lower it 3%, which is not how capitalism or the world works. Well, you're going to have somebody representing the seller, and you're going to have somebody representing the buyer, and they're both going to want to get paid. Yeah, but the seller doesn't price the price of their home based on the payouts to the agents.

[00:01:59] I know. It's basically moving right back to the way it was. It basically is right now, because right now it's a buyer's market. So sellers, basically what's happening is realtors are putting into the contract, part of the negotiation is you pay my fees. Like if you want my clients to buy this house, you're going to pay my fees. And to be honest, these sellers, you know, they really need a buyer, so they're agreeing to it. It'll change when it's a seller's market or a more even market again.

[00:02:27] But right now, since the buyers are holding the control, the sellers are still willing to pay that fee. Yeah, but on the other side of it, if you're a seller of a property and you're not offering anybody anything, a commission person is going to go to where they're going to get paid. Yeah, absolutely. Right? That's always going to, the free market is going to determine who's going to show something. Right? Yeah.

[00:02:53] They're not going to bring a buyer buy a home if there's not 3%. Well, what's happening is, you know, my buyers are signing a contract with me for a 3% fee for, you know, the real estate commissions. I sometimes will lower that to two and a half in the negotiation. But at the end of the day, if my buyer is talking to the seller and the seller won't pay it, they're walking away from the deal. Like we've had that happen. You know, it's not that I'm not going to show it because I'm getting paid whether it's from the seller or the buyer.

[00:03:22] But the buyer is like, no, if you're not going to pay her commission, I'm going to go somewhere else and find someone that will. Right. But it will change when it's a seller's market. It will change. You know, buyers will have to pay that when there's, you know, three people, you know. We will see. We will see. But the funny part is, is this whole point of this is people thought it was somehow going to bring housing prices down. That was like the spin, which was so funny to me because. Well, the New York Times had an article about it. They did a whole podcast.

[00:03:51] This is how clueless some of these journalists can be. They're saying, oh, that's off the table now. So home prices are going to go down 3%. That could not be further from the truth. Yeah. Well, and actually what's interesting is it's no different than when I hear landlords say, well, if, you know, my property taxes go up, then I'm putting that on the tenant. It's like, no, you're not. You're only going to be able to charge market, like whatever that is. Whatever the market for rent is, that's the market. Doesn't matter what happens to the landlord. Yeah.

[00:04:19] Your expenses, whether you're selling a house or whether you're, you know, renting. Your property taxes go up. Your utilities go up. It's an owner expense. It's not a renter expense. Exactly. You can't just pass that on. So, and that's the interesting thing is I think a lot of journalists and a lot of people believe that as these costs, like even to build a home or whatever it is, the builder is not going to build unless he can pass it on to the consumer. Right.

[00:04:47] The builder is always going to be solving to margin and period. Right. Otherwise, they just don't build. Right. Right. And that's what people don't understand is like all this just comes down to capitalism. It doesn't really come down to, you know, adding on realtor commissions or adding on property taxes or whatever it is. And but with something else that's further happening with this lawsuit that I find interesting is, you know, real estate was just always done how it was done. Right. Nobody questioned it. The seller paid 6%.

[00:05:16] You would list it on the MLS that then Zillow would pull from the MLS and everything just kind of was running how it was running. But this whole NAR thing, it kind of stirred the market up a little bit. Right. And so some of these some of these brokerages thought, you know, do I really even need to use the MLS? That was kind of their angle. So you had Compass out of the Northwest and they have the strictest MLS in the country and you have to follow these rules.

[00:05:42] And Compass said, you know, their big issue was they can't put realtor commissions on the MLS anymore. That was the thing. You couldn't advertise your realtor commission. So they thought, you know what, we want to advertise our realtor commission. So we're just going to make our own website and we're going to market, baby. We're going to we're going to run everything through there. Well, that you're not allowed to do that with the MLS. You get fine. But MLS is also privately owned. Right. So you get fine. Yeah. So let's this is not these are not state run organizations.

[00:06:10] These MLS is they've they've fooled everyone. Correct. And we pay a big we pay a big fee to be a part of the MLS as realtors. And honestly, Zillow is much more user friendly. Right. Yeah. I would I would bet that this is all going to move online to these big money and these little MLSs could be squashed. Well, so it's interesting. Right. So anyway, so with Compass, they said, OK, we're going to make our own. And then Emma said, well, we're going to find you. And they said, we don't care.

[00:06:40] We find us all you want. So now they're in a lawsuit with as the seller should be able to decide what website that they want their house listed on. They shouldn't have to list it on the MLS. They could listen on Compass's site. Right. So there's this big law. That's going to be interesting. The MLS will not win that. Well, so is it. But so now Zillow because see Zillow pools everything from the MLS. Zillow is now saying, well, we have our own business, too. And we get a ton of traffic from, you know, people that are looking.

[00:07:09] So if you advertise your listing anywhere else, even on social media, and it's not on our site within 24 hours, we refuse to list your property. So then that includes. So that kind of gets rid of the pocket listings, everything. Right. Like if you even mention, you know, something's for sale that's not listed on Zillow, then they're going to not allow it. Oh, this is so good. So there's this disruption. There's this disruption. There's this argument brewing between all these listing services. Love it.

[00:07:39] Yeah. And so. The consumer is going to win here. The consumer is going to win. But Zillow does have the right to not put something on a platform. It's like we do. You have a right to do whatever you want on a private website. Correct. So it's very interesting to see how all this kind of plays out. But there's a lot of things stirring up in the background. The other thing that's come out of this NAR lawsuit is realtors are now negotiating their commissions. Where before we were not allowed.

[00:08:02] So basically, you know, if the person selling the home said, I'm paying you 2% commission, we could choose whether or not to, you know, to work with that person. But we couldn't not show their house. We couldn't negotiate our commissions and say, I want 3%. We couldn't put it back on our buyer and say, you have to make up the difference. None of that. Right. So now, realtors are able to negotiate their commissions.

[00:08:28] So now I can tell a seller, I'm only going to work with you if, you know, you pay me, or a buyer, I'm going to work with you if you pay me this. Right. So, but now what's happening with that is people are signing contracts and not understanding fully what they're signing. And some people are, buyers are signing with more than one agent, which is becoming a problem when they go to buy a house. So there's all these craziness going on around this NAR. So it's going to be interesting. It's going to be lawsuits or be all kinds of stuff that'll pop as a result of it.

[00:08:56] Well, it was supposed to help the buyer, but now because it was supposed to be more transparent, but now it's confusing. And now you have all these realtors making their own rules and everybody's rules are different. So it's very confusing for the buyer. I love it. So we will keep you guys posted on that. So I just finished my 1031. Thank God. Oh my God. Stressing me out. No kidding, man. I got, I got multiple 1031s going on right now.

[00:09:26] I never discuss them after I leave this office. Yours, it's a topic at home all day, all night. I basically have to go for a run. Well, I sold my condo and I rolled it into a 1031. By the way, I am proud of you. Thanks. The first 1031 is something to be worried about, right? Yeah. If you've never been through it, I totally get it. I just was laughing.

[00:09:52] Well, for those that have never done one, you basically have to sell your original property and then identify what property you want to buy within 45 days. Well, let's back up. First of all, the 1031 is a tax code. That's tax code. 1031 basically says you could sell something, put it with a third party. You can't touch the cash. Otherwise it's taxable. And then roll that cash into something else for more than you bought it for.

[00:10:21] You know, and there's all kinds of little nuances in this, but essentially that's what it is. So you can sell out of a piece of land, roll it into a condo. There's all kinds of things you can do with around a 1031, but there are timeframes. You have to close within six months. Yes. You have to identify within 45 days. Yep. Up to three properties. So yes, there are definitely things you have to do. There are rules.

[00:10:47] But it is stressful because basically if you can only identify three properties in 45 days that you're then locked to buy one of those properties. So you basically have 45 days. So let me just give you a little wake up call. I've sold three projects this year. So far, I have a fourth one right now. I'm about ready to close on all 1031s. And it's about somewhere between 60 and 70 million dollars sitting in a 1031 account that I'm trying to roll into deals.

[00:11:16] And so, yes, I'm very familiar with the process. And yes, I am stressed out as to what is available and what am I buying? And do I really want to roll that money in? Because I've actually seen really bad decisions around 1031s. Absolutely. Because you're put on a time squeeze. Well, really what it is is you're chasing a tax issue. So you're now forced to move forward. And at the end of the day, I've actually seen some bad decisions.

[00:11:45] And I've taken on a couple of buildings from a couple of clients where I had one client that sold out of a property. It was a small property. It's like 70 units in San Diego. Did a 1031 into like a 200 unit in Mesa, Arizona. It was a horrible property in a horrible location. He didn't really do a lot of research on it. So he basically took a property that was full in San Diego. He was out fishing, basically, and enjoying his life.

[00:12:15] And he rolled it into a big project because he's got more units. And it turned into a nightmare for him. And so sometimes just doing, sometimes it's better to take the tax hit. But I am proud of you because it is a little bit of unnerving if you've never been through it before. But these 10, also just we should mention, putting it with the right 1031 company is super important. Yeah. Do your homework. Well, and doing your homework before too, right?

[00:12:44] Because I reached out to Eric, our CPA, and I said, hey, what's a good 1031 company? And I'm doing a 1031. Well, thank God I did that because what I didn't know, because I've never done it, is that the money can't even hit your account. So if I would have looked into the 1031 company, you know, kind of later in the process and had the money actually hit my account. Yeah. Then it's taxed. That would have been a problem. Yeah. Right. And even checking the title company, because the title company initially, even after I had

[00:13:11] the 1031, was like, hey, what's your account number? You want it wired in? You know, the funds. And I'm like, wait, no, like I, they have to go to, you know, they're coming from the 1031. And they're like, oh, OK. So not everybody, you know, you got to be on top of it because really the money can't even accidentally make it into your account. Well, you bring up another good point. Not all the time does you have all the money. So in your case, you had a lot of the money, but then you actually had to put more money in. Yep. So you don't always have all the money.

[00:13:40] So it can be a combination of 1031 money. It can be new money. You can have debt on it and all that kind of stuff. And there's also what's called boot, which is B-O-O-T, which means that if you're rolling it into something that isn't as much as what you're coming out of, then you actually have tax on that. So, for example, if you sell something for a million dollars and you roll it into something for 500 grand, it's probable that you would have some tax on that, even though you're rolling

[00:14:10] all the money over. Because what they want has to be at or above. So this is exactly how I bought Orchard Canyon, the property in Sedona, the resort that we own. Exactly from a 1031 on a 68 unit property that I owned that we rolled and we bought this resort. So it doesn't have to be the exact same kind of property either. Yeah.

[00:14:37] And it's a big deal too, especially all the gains we've had in the price. In the case of real estate the last few years, for those of us that had owned before 2020, you know, it's a big tax hit to sell an investment property for that gain. It is. Yeah. And especially, yeah, I mean, it's at least 20%, right? We know that. And so it's a fairly big hit. But I will tell you that it's a great thing to have as a real estate investor, but it's

[00:15:06] not always something that you might want to use. For example, you know, we're selling five projects this year. We're actually doing a 1031 on four of the five. And very strategically, we decided to actually take the fifth one and take the capital gain and roll it into an opportunity zone, which is another vehicle. Yeah. Because we can take the capital gain and roll it forward into a development deal that Ross

[00:15:35] and I are doing. So there are ways to move your money around legally using these tax laws. And the 1031 is one of those. But I am proud of you for closing. You closed today, right? Yes. Okay. Only one day late. Yeah. One day after the closing day, which was a whole other thing. And here's how to really understand and manage 1031s in my opinion. There's a few moves that you can make beforehand.

[00:16:02] The first one is you want to understand your tax liability if you can't find one. That's the very first thing. So we always go to a tax person, in our case, Eric, say, what's our tax liability on this project or property? So that you know that's the worst case, right? Then probably before you even list it, just like you did, you will go out and you look for stuff and you start to get a feel for what the market's like. And you identify stuff.

[00:16:32] Maybe it's listed. You know, maybe it's about to be listed or it doesn't necessarily have to be even local. And you do all of that before you actually close, right? Because once you close, you have the guns to your head, right? So you want to do all that. And we've even written clauses in our purchase and sale agreements where as a seller, we can extend escrow as a seller.

[00:16:59] Because again, I may or may not want the money, but what I don't want to do is I don't want to pay a lot of tax. If I can minimize my tax, I'd like to do it. On the other hand, sometimes like a flipper doesn't even think this way, right? Because they just buy something, renovate it and sell it and then move and do it again. So people don't realize that that's transactional.

[00:17:25] You've got not only the brokerage fees on both sides, the loan and mortgage fees on both sides. You got the capital gains and you got potentially ordinary income and all these other things. Now, you do have write-offs too for typically a lot of these flippers have, you know, for the money that they're putting into the projects. But people don't always calculate those expenses, you know, when the dust settles. And they really add up. They really add up. Yeah. So, but you did it, right?

[00:17:55] And by the way, I think you should walk people through the whole process. In other words, because I think the way you thought about this was correct. You started with a condo that was not making a ton of money. Yeah, basically it's happening with my condo, which I've had forever, which is actually a great little rental. But the problem was the HOA fees kept going up and, you know, all the different maintenance on it kept going up and the rents, because there's so many apartments now in that area

[00:18:24] have went down. So I was still getting a return, but it wasn't a great return. And, you know, to think that I had 300 and some thousand dollars tied up in this condo that I could, you know, sell. Right. And I, you know, my return was like six, 700 bucks. It's really not a very good return for all of that money. So let's stop right there real quick. So you didn't know anything on it, right? So, okay. So you had something that was worth, let's call it 300,000 in equity and you were making 10 grand a year.

[00:18:54] Yep. Right. Okay. That's, that's what? 4%. Yeah. I probably wasn't even making 10 grand, but yep. Okay. So I think that's important to say. Okay. So, so you've got 300 grand and you're making, let's call it 10 grand, right? 15 grand is 5%, right? So it's maybe three and a half percent. So you're, you started to look at that. You go, why would I own something for 300 grand and only make 10 grand? Right. Okay.

[00:19:20] And, and then you also had the rising expenses and all that stuff. So, so what, what she's really doing here, and I think this is a lesson, what's your imputed equity? And what do you actually make on that? Right. Right. And in your case, it was, let's say 10 grand. So maybe it's less, but regardless. So, so she's like, where can I take that 300 and make more? Right. That's it. That's the next step. Yep. And you identified, let's go there now.

[00:19:50] So yeah, I identified a single family home that I own a couple in this neighborhood already. So I know everything about it. I know what the rents are, everything else. Yes. And I think I can get 2,600. So I can't on, I did put another 150 grand in to be fair that I had in cash. But I think I can make another, you know, I can charge an extra thousand dollars a month. Right. With less expense from the HOA too.

[00:20:18] So, you know, it's probably really more like 1,300 more a month. Okay. So, so you're more than doubled your cashflow for another 150 grand. Right. So that's the way you look at it. Yeah. So, so it was a, it wasn't a lateral move. It was a very strategic move. It was. But all, all things had to be perfect. Right. With the 1031. Well, I really wanted this neighborhood and that made it more tricky because, you know, there's not a lot for sale in this neighborhood. But the reason that I listed my condo when I did is because there was four things for sale

[00:20:48] in this neighborhood, which like never happens because, you know, it's now inventory stacking up a little bit. So it was very strategic. And by the time that I went to, I sold and went to go buy something. There was only two things left in the neighborhood. So I got one of them and now there's just one additional one for sale. But there's also one important point here that I just want to point out for everybody. You actually were tracking a neighborhood. Yes. That's a really important point. Yeah.

[00:21:15] Like, you know, exactly the pricing in a neighborhood. By the way, this neighborhood only has like a hundred homes in it. Yep. But they're all two bedroom and three bedroom, double car garage with yards, really small, perfect for a rental community. Like old school, built 30 years ago, single level, but they're all really, really good rentals. Like this is before BTR, build to rent, you know, which is kind of the craze now, but somebody did that in this neighborhood. And so you've been tracking this neighborhood.

[00:21:43] And I think this is important to understand because you know, the number, like you've bought two or three in there already. Yep. And you knew the number. And once you had five on the market, four or five, you were, you were like, okay, it's, it's a great time to strike. So you, you knew you had a low percentage of return on the imputed equity in the condo. And you knew you had four or five of the available in this neighborhood that you were, that you were tracking.

[00:22:11] Now the question was, how do you sell the condo fast and how do you get one of the houses in escrow and how do you do it through a 1031? So that's the process that I had to live through. Right. It's stressful. But here's what I'll tell you for those looking, you know, thinking about this right now. So, you know, I think that, you know, we talk about it on this show, you know, everyone's all prices are going to crash and terrible time to buy or whatever you believe. But the truth is, is because there's not a lot of buyers right now as a buyer, I had a lot of bargaining power.

[00:22:40] So I got a really good deal on the house that I bought. And basically what I said to them was, Hey, I'm doing a 1031. There's two houses for sale in this neighborhood. Here's your deal. Let me know by tomorrow morning. And if not, I'm going to offer it to the other one. And they took it. Right. And I got a really good deal on it. And the reason is, is because things are sitting right now. So it's a great, it's, it'd be really hard to do a 1031 in what we just went through when

[00:23:06] there was seven offers on a house and you didn't know what you were going to get. And you, you, you easily could have sold your home probably for even a little bit more than I just sold mine if I would have sold it a few years ago, but I would have to buy in that same market. And that's the problem, right? It's a great market to sell. It's a horrible market to buy. Well, now it's not as good of a market to sell, but it's a great market to buy. So if you can sell that home, you have your pick of the litter and time and options when rolling it over.

[00:23:36] So it's actually a really good time to do it. It's an excellent point. So, so we should probably go down this rabbit hole a little bit. So the very best time to do a 1031 is when there's not a lot of buyers and there's not a lot of all cash offers. Yeah, exactly. Right. And so what you saw in this neighborhood, I think it's a small little window, by the way, guys, this is North Scottsdale, which is hotter than hot. And this neighborhood just happened to have a bunch of units come up on the market at

[00:24:06] the same time, which of course is not necessarily good. And by the way, we should mention, this is precisely why you weren't getting the rent growth where you came out of. Yeah. Because the property that you were in had 300 condos in it. Yep. And so you have, let's just say 152 bedrooms, right? Or 202 bedrooms in this condo project. And they're all about the same size and age and all that.

[00:24:32] And so you're competing at your neighbor upstairs, next door, across the yard and all that stuff. Whereas in this particular case, same thing with the house where you're now competing and you leverage that against the other one that was listed. And this is a really important point, right? So you got a better price, just like your renter was getting a better deal. Yeah. Because there's 200 others also for rent. Yeah. So I think this is an important point.

[00:25:02] And so there's a time to do a 1031 and a time not to do a 1031. Yeah. And this is a great time to do it if you're sitting on some imputed equity and you want to move your money around. Yep, absolutely. Because you have time. I can't even imagine doing it when there's seven offers on a deal and you would just inevitably buy something overpriced that you didn't really want because you only have 45 days or you would have taken the tax hit, right? One of the two. So it's actually a really good time to do it if you can sell your own property, right?

[00:25:30] Which is taking more time right now. Yeah. Well, you know, Scott Saunders at our mastermind, a collective mastermind, you know, so he runs one of the biggest, if not the biggest 1031 in the country, right? He's based out of Colorado and he is busier than ever right now. Right. And so, you know, I've been tracking with him on these 1031s and it's a great time to move money, especially if you have trapped equity that isn't doing a lot for you.

[00:25:56] Well, and something that I've seen too is, you know, there's been a lot of apartments built in the last five years. There's not been a lot of single family, you know, build to rents kind of built, right? So the condos are taking a hit because I was having to compete with the stuff like MC Companies builds, right? This class A product that you guys were offering concessions on and everything. Don't blame me. I know, but it is true. And mine was a class B that honestly needed a facelift.

[00:26:23] Like I needed to put about 10, 15 grand into it to just bring it up to date, right? Before it was fine when there was plenty of renters, but now that there's so many apartments, I was having trouble renting mine. But the single family homes that I rolled it into, they're not really building that anymore. So it has a yard, it has a two car garage. It's a home. It's not an apartment. Like that's hard. That, that, the demand for that is still, the supply for that is still low, right? And the demand for that is high. So there's still, even though I've seen a little bit of a dip on my single family home prices,

[00:26:54] very little comparatively to the condos. Well, right. And so you bring up another extremely good point. And that is you, you actually moved your money into an entirely different product. Yeah. You moved it from a, you know, I would call it more of a commodity, something that a lot of people have access to, uh, low price condos, low price apartments, let's say. And you moved it into a small single family home that there's not very many. Right. Right. Right.

[00:27:23] And so that's actually why. In a good school district. Right. Yeah. And the reality is, is because, um, uh, I own one in there too, that, you know, the, the rents are probably closer to three grand. Right. So you're at, you're at 27, 2600. So you, you know, you're, you're getting a thousand to 1500 more per month out of that house long-term. Right. And sitting where it is, um, you know, you're going to be fighting for that 50 or a hundred dollar more per rent.

[00:27:53] You know, you're going to be capped because of the other 200 people in there. Yeah. And something else I want to point out too, just in the sale, the sell part of my condo is my condo was listed probably as the cheapest in the building because I knew I was competing against eight different units that were for sale. Oh, that's true. Good point. Yeah, that's right. There are a bunch for sale. A bunch for sale. But the problem is a lot of people in my building put a bunch of money into the condo to then sell it for hire. Right. So I had this dilemma that I even looked at, like, do I want to put money into this thing

[00:28:23] and make it a little nicer and trying to sell it for more? Or do I just sell it as is? And I just sold it as is. It sold pretty quickly. All the rest of them are still listed for sale because I follow that, you know, complex pretty closely. And, you know, cause right now is not a time to be pouring in money, trying to get more out of your deal. So another really good point. This is the opposite of value add. Yes. So, so what. This is value sale. What we know, but in reality, what you've done is you, you put left what we call meat

[00:28:52] on the bone for the next person. So they can go in and do what they want to it. And they feel like they got a good deal. And I think what happened was we just came out of this run where there were so many people buying old stuff, you know, putting lipstick on it. Right. And then selling it for more. And so, you know, what you recognize is that a lot of people had taken what you owned and,

[00:29:16] and had upgraded them, spent, you know, 10, 20, 30, $40,000 on the insides only to list them for more. And, you know, so the strategy was, which I think was a really good idea was keep it a classic, keep it, you know, something that, that needs work, sell it. Somebody feels like they got some value. They can do, do it on their own terms on their own time. And it sold fast. And, and then you were able to move the money and do your 1031.

[00:29:44] So it's a heck of a, you know, sometimes you can, you know, if, if you're going to stick out from the crowd in your particular case, it's because it needed renovation. Right. And in this particular time, in this particular market, there is a time and a place to leave unit that way for the next person, because if you want to move it and sell it. Absolutely. So this week's been a really big week for MC companies. Yeah. It's been crazy.

[00:30:12] We broke ground on a big project, Mason Ranch, and we're closing on a 282 unit in North Scottsdale tomorrow. Nice. So one is basically a new construction and the other one is a existing. Yeah. Yeah. Two different markets, right? Mason Ranch is in Tucson. And as you guys know, you might guys might watch the video on YouTube. We did a whole thing on, you know, how we acquired the land and all that. And I would encourage you to take a look at it. It's pretty cool.

[00:30:40] These construction projects, you know, they take years, right? You've got to buy the land. Then you got to get it all ready to be built. You got to get all the approvals and then you got to go get the debt and all that kind of stuff. So, but we always like these because first of all, it's brand new, brand new area. Everybody likes brand new. Renters love brand new. And it's in a market that's hard to find multifamily land in. So it's a high end housing area.

[00:31:09] So we're really excited about the project. And so, yeah, breaking ground on something is always a big deal. Well, you and Ross have owned that land for quite some time now. Yeah, we have. You know, we start, I think we had six or seven million bucks tied up in that land forever. Now that's after a while. It takes, first you got to buy it, but then there's all these costs. So there's still a little bit of money left in that project, believe it or not.

[00:31:35] It's basically Ross's and my money because we want to take some out of that and roll it into some other projects. So if anybody's interested, certainly all they got to do is click on the link below. So yeah, so Ross and I have owned this property a while. We've got a bunch of money tied up in it. We want to roll some out. So we're actually going to sell part of our interests, even though we've started the project, the financials and the business plans are already done. Yeah. And if you're interested with any of our other deals, just go to investwithmc.com forward slash

[00:32:03] podcast and you can just register to be an accredited investor and look at everything we have going on. So let's chat about the core too, because you have that one in Scottsdale. That's a cool ass deal. I got to be honest. Like, you know, first of all, it's one of the nicest properties in North Scottsdale. If you guys ever been to Scottsdale, it's pretty nice. And this property is spectacular. So we're really, really excited.

[00:32:27] It's four stories, elevated, brand new, right next to Costco on a major road, right near where the waste management opened. The TPC plays a golf tournament. And it's just a spectacular location and we're excited to have it. We close it tomorrow, which would be May 7th. And, you know, we're going to, we have all the money we need and it's going to be really, really, really fun to own and run. And we bought it below replacement costs and it cash flows on day one.

[00:32:55] And that's actually what we've been looking for are these projects that are undervalued. Absolutely. And even with Mason Ranch, you know, since you're building it, you guys acquired the land for a very good price. A long time ago. Yeah. Yeah. It's exactly right. So, you know, these are obviously two great projects. We bought four or five projects already. We have a few more that we're looking at for next year. And we think it's a phenomenal time to build because Mason Ranch, for example, it's going

[00:33:23] to open in 27, right? At a time where there's not a lot happening. So people pulled back on new construction a couple of years ago when interest rates went up and that's actually the time you want to build. It's harder to build. Interest costs are harder, but the deal pencils really nicely because we have owned the land for a long time. And also there's not a lot of people building. So our construction costs are down, believe it or not.

[00:33:49] And so we're going to deliver this project in mid to late 26. And then we'll be leasing it up through 27. And it's just going to be another incredible new project.