Ep #990 - MFRS - The Intersection of AI and Real Estate

[00:00:00] [SPEAKER_01]: And then I bought a house for my grandmother and she didn't want it.

[00:00:04] [SPEAKER_01]: I give her the keys and I go with her.

[00:00:06] [SPEAKER_01]: This was in the Dominican Republic and she tells me no.

[00:00:09] [SPEAKER_01]: So I put it on the market and I get a phone call.

[00:00:11] [SPEAKER_01]: The gentleman tells me, hey, I want to buy your house.

[00:00:13] [SPEAKER_01]: And he says it's all cash.

[00:00:15] [SPEAKER_01]: And we go to the bank and it was literally cash in a bag.

[00:00:24] [SPEAKER_00]: So you know that apartment building or complex you try by every day?

[00:00:28] [SPEAKER_00]: Someone owns it.

[00:00:28] [SPEAKER_00]: And it's probably someone on this podcast.

[00:00:31] [SPEAKER_00]: Multifamily Rockstars.

[00:00:33] [SPEAKER_00]: Join the growing numbers of real estate entrepreneurs who have made the jump to

[00:00:36] [SPEAKER_00]: buying multifamily properties for Lifetime Cash Flow.

[00:00:40] [SPEAKER_00]: Multifamily Rockstars using OPM for an OMG ROI.

[00:00:45] [SPEAKER_00]: Now here are your hosts Rod Khleif and Mark Nakey.

[00:00:49] [SPEAKER_04]: Welcome back to Multifamily Rockstars.

[00:00:51] [SPEAKER_04]: So as you guys know, this is where we dive deep into our guest deals

[00:00:56] [SPEAKER_04]: and our guest today has several deals to talk about.

[00:00:58] [SPEAKER_04]: We give you practical and really actionable items to get started

[00:01:02] [SPEAKER_04]: and actually do a deal especially if you're brand new.

[00:01:06] [SPEAKER_04]: So even if you're not brand new, you should listen up because there's going to be some good stuff.

[00:01:10] [SPEAKER_04]: And as always I've got my co-host Mark Nakey from my massive action team here with me.

[00:01:15] [SPEAKER_04]: Mark, what's up brother?

[00:01:16] [SPEAKER_02]: What's going on Rod?

[00:01:17] [SPEAKER_02]: And for this specific one, I always get asked, hey, how quickly can people

[00:01:21] [SPEAKER_02]: have success in this business?

[00:01:23] [SPEAKER_02]: And Georgie, almost a year to this day is when we last spoke

[00:01:29] [SPEAKER_02]: to get you started in this.

[00:01:31] [SPEAKER_02]: So I'm excited to hear what you've done and bring us up to current.

[00:01:34] [SPEAKER_04]: Nice, nice.

[00:01:34] [SPEAKER_04]: So we got Georgie Marrero.

[00:01:37] [SPEAKER_04]: Good to see you brother.

[00:01:38] [SPEAKER_04]: And you know, I'm just not even going to say anything else.

[00:01:42] [SPEAKER_04]: I want you to introduce yourself.

[00:01:44] [SPEAKER_04]: I mean, I know you work for one of the largest companies in the world.

[00:01:46] [SPEAKER_04]: So maybe you can talk about that, talk about your background, why real estate.

[00:01:51] [SPEAKER_04]: Yeah, and just kind of bring us current.

[00:01:53] [SPEAKER_04]: So I'll just let you take it away, brother.

[00:01:54] [SPEAKER_04]: Welcome.

[00:01:55] [SPEAKER_01]: Awesome.

[00:01:55] [SPEAKER_01]: Thank you.

[00:01:56] [SPEAKER_01]: Thank you both of you.

[00:01:58] [SPEAKER_01]: Excited to be here and talk a little bit about this.

[00:02:01] [SPEAKER_01]: First of all, Rod and Mark, thank you so much for the platform that you have created.

[00:02:07] [SPEAKER_01]: I remember the bootcamp that I did last year.

[00:02:12] [SPEAKER_01]: You just gave me so much information.

[00:02:16] [SPEAKER_01]: I had a few pieces of paper and I filled 20 pages.

[00:02:22] [SPEAKER_01]: I think I have it somewhere here in the office of information.

[00:02:25] [SPEAKER_01]: I looked at my friend next to me and I was like, we have to join this.

[00:02:30] [SPEAKER_01]: We already know more or less what we have to do, the things that we already know,

[00:02:34] [SPEAKER_01]: that already know.

[00:02:36] [SPEAKER_01]: And we just have to go and get started.

[00:02:39] [SPEAKER_01]: But before you move on, before you move on, was that the Orlando event?

[00:02:43] [SPEAKER_01]: I think that was right.

[00:02:44] [SPEAKER_01]: I went to the Orlando event as well, which happened a few months.

[00:02:47] [SPEAKER_01]: But this was, I believe, May of 2023.

[00:02:50] [SPEAKER_04]: So this was a virtual event that you talked about.

[00:02:53] [SPEAKER_02]: Yeah, it was one year July.

[00:02:54] [SPEAKER_02]: Yeah, so it had to be a July virtual.

[00:02:56] [SPEAKER_04]: Oh, that's right.

[00:02:56] [SPEAKER_04]: That's right.

[00:02:57] [SPEAKER_04]: Well, let me just mention this because this is brand new.

[00:03:01] [SPEAKER_04]: We're announcing our next Orlando event.

[00:03:03] [SPEAKER_04]: It's November 7th, 8th and 9th.

[00:03:05] [SPEAKER_04]: It's three days drinking through a ficken fire hose.

[00:03:08] [SPEAKER_04]: Okay.

[00:03:09] [SPEAKER_04]: It's not like some tease you about the business.

[00:03:12] [SPEAKER_04]: You get it all.

[00:03:13] [SPEAKER_04]: But it's super early bird pricing.

[00:03:15] [SPEAKER_04]: So if you want to check it out, I hope you do.

[00:03:17] [SPEAKER_04]: There'll be over a thousand people there.

[00:03:19] [SPEAKER_04]: And it's rodinorlando.com is the website.

[00:03:23] [SPEAKER_04]: So you definitely want to check that out, by the way.

[00:03:25] [SPEAKER_04]: 8th, 9th, 10th.

[00:03:26] [SPEAKER_04]: Oh, thank you.

[00:03:27] [SPEAKER_04]: 8th, 9th, 10th.

[00:03:27] [SPEAKER_04]: Friday, Saturday, Sunday.

[00:03:28] [SPEAKER_02]: Yep.

[00:03:29] [SPEAKER_04]: Yeah, Friday, Saturday, Sunday.

[00:03:31] [SPEAKER_04]: It'll be a kick in the butt.

[00:03:32] [SPEAKER_04]: There'll be hundreds of my warriors there as well.

[00:03:35] [SPEAKER_04]: And this business is a team sport.

[00:03:37] [SPEAKER_04]: It's a networking business.

[00:03:38] [SPEAKER_04]: So my most successful warriors go to every single one of these.

[00:03:42] [SPEAKER_04]: So anyway, this is a new announcement

[00:03:43] [SPEAKER_04]: November 8th, 9th and 10th in Orlando,

[00:03:45] [SPEAKER_04]: which is a lot of fun.

[00:03:46] [SPEAKER_04]: Anyway, sorry to interrupt.

[00:03:48] [SPEAKER_04]: Keep going there, brother.

[00:03:49] [SPEAKER_04]: Tell us your story.

[00:03:49] [SPEAKER_04]: Sorry.

[00:03:50] [SPEAKER_01]: Yeah.

[00:03:51] [SPEAKER_01]: Yeah.

[00:03:51] [SPEAKER_01]: So I grew up in the Dominican Republic.

[00:03:55] [SPEAKER_01]: I was born in New Jersey.

[00:03:57] [SPEAKER_01]: Grew up in the Dominican Republic from age three to 18.

[00:04:01] [SPEAKER_01]: I first started in tech.

[00:04:04] [SPEAKER_01]: That is my background.

[00:04:05] [SPEAKER_01]: And at seven years old, my dad bought me a computer.

[00:04:11] [SPEAKER_01]: And that was one of the only gifts that he gave me

[00:04:14] [SPEAKER_01]: other than teaching me math here and there.

[00:04:17] [SPEAKER_01]: And my mom put internet on that computer when I was eight.

[00:04:22] [SPEAKER_01]: But when I was 10 or so, I talked to her and I said,

[00:04:25] [SPEAKER_01]: hey, mom, would you let me use the computer until late?

[00:04:29] [SPEAKER_01]: And that was like 10, 30, 11.

[00:04:32] [SPEAKER_01]: And I would get A's in school in return.

[00:04:35] [SPEAKER_01]: So I was just a curious kid.

[00:04:37] [SPEAKER_01]: And I learned how to code at a very young age.

[00:04:40] [SPEAKER_01]: I started coding when I was 10.

[00:04:41] [SPEAKER_01]: By 14, I had a few pieces of software out there on the web.

[00:04:49] [SPEAKER_01]: And I had some users, but I just did it as a hobby by 14.

[00:04:55] [SPEAKER_01]: And then during the ages of 15 to 17, I started,

[00:05:02] [SPEAKER_01]: I shifted gears and I was more doing site businesses

[00:05:05] [SPEAKER_01]: with my friends.

[00:05:06] [SPEAKER_01]: I just thought it was very fun to do.

[00:05:09] [SPEAKER_01]: And at 18, I migrated to California.

[00:05:13] [SPEAKER_01]: That was, I had turned 18.

[00:05:15] [SPEAKER_01]: It was 18 in a month.

[00:05:17] [SPEAKER_01]: And I asked my family, hey, would you pay for my university?

[00:05:22] [SPEAKER_01]: And they said, no, we don't have money.

[00:05:25] [SPEAKER_01]: And I knew that was a fact.

[00:05:27] [SPEAKER_01]: So I just moved to Southern California.

[00:05:30] [SPEAKER_01]: And I was at a couch at my aunt's house

[00:05:35] [SPEAKER_01]: and commuting to community college.

[00:05:38] [SPEAKER_01]: It took me about two hours or so to get to school.

[00:05:43] [SPEAKER_01]: Even though I knew how to code, the first internship that I took

[00:05:46] [SPEAKER_01]: was a sales job.

[00:05:47] [SPEAKER_01]: I had no idea why I did that.

[00:05:49] [SPEAKER_01]: I was like, I think sales is going to be important for me.

[00:05:51] [SPEAKER_01]: And I need to practice my English anyways.

[00:05:54] [SPEAKER_01]: So that's what really got my English more fluent.

[00:05:59] [SPEAKER_01]: And fast forward, I did that for two years, moved to the Bay Area,

[00:06:05] [SPEAKER_01]: lived in Berkeley.

[00:06:06] [SPEAKER_01]: I went to that university there.

[00:06:09] [SPEAKER_01]: And since I already knew all the tech stuff from early age,

[00:06:14] [SPEAKER_01]: I just focused on PhD level classes

[00:06:16] [SPEAKER_01]: and I learned artificial intelligence.

[00:06:19] [SPEAKER_01]: So I did three years of undergraduate research,

[00:06:24] [SPEAKER_01]: artificial intelligence.

[00:06:26] [SPEAKER_01]: And I took a job, I did a startup for about two years

[00:06:30] [SPEAKER_01]: with some friends.

[00:06:31] [SPEAKER_01]: We raised some funds.

[00:06:33] [SPEAKER_01]: Then I started working for Meta.

[00:06:37] [SPEAKER_01]: And as an AI software engineer,

[00:06:40] [SPEAKER_01]: I have been doing that for about five years now.

[00:06:43] [SPEAKER_01]: And it's a very comfortable job.

[00:06:47] [SPEAKER_01]: And I slowly, I knew when I was getting into it,

[00:06:51] [SPEAKER_01]: but I slowly also realized it

[00:06:53] [SPEAKER_01]: that if I continued here, I would be a director,

[00:06:57] [SPEAKER_01]: maybe a vice president,

[00:06:59] [SPEAKER_01]: but I would never have what I truly value,

[00:07:03] [SPEAKER_01]: which is my own time and my own autonomy.

[00:07:06] [SPEAKER_01]: So it was about 2019 when I made my first investment.

[00:07:13] [SPEAKER_01]: This was as an LP.

[00:07:15] [SPEAKER_01]: There was another guy in Meta and he said,

[00:07:17] [SPEAKER_01]: hey, you can make about 15% or so.

[00:07:21] [SPEAKER_01]: Let's join me in this deal.

[00:07:23] [SPEAKER_01]: I never thought much about it.

[00:07:24] [SPEAKER_01]: I put the money in and I was like, oh, this is fun.

[00:07:29] [SPEAKER_01]: And then I bought a house for my grandmother.

[00:07:34] [SPEAKER_01]: That was another thing I said.

[00:07:35] [SPEAKER_01]: I said, hey, I will buy this house.

[00:07:38] [SPEAKER_01]: I am getting at a great price.

[00:07:39] [SPEAKER_01]: I'm getting some equity.

[00:07:40] [SPEAKER_01]: I bought the house for my grandmother

[00:07:43] [SPEAKER_01]: and she didn't want it.

[00:07:45] [SPEAKER_01]: So I, yeah, she didn't want it.

[00:07:48] [SPEAKER_01]: She wanted to.

[00:07:48] [SPEAKER_04]: No good deed goes unpunished.

[00:07:51] [SPEAKER_01]: I know.

[00:07:52] [SPEAKER_01]: I give her the keys and I go with her.

[00:07:55] [SPEAKER_01]: This was in the Dominican Republic and she tells me no.

[00:07:58] [SPEAKER_01]: My mom couldn't convince her.

[00:07:59] [SPEAKER_01]: So I put it on the market.

[00:08:01] [SPEAKER_01]: I just put a for sale sign,

[00:08:03] [SPEAKER_01]: big for sale sign in the outside.

[00:08:07] [SPEAKER_01]: And it was a week or so and I got a phone call.

[00:08:10] [SPEAKER_01]: It was a Saturday and I was leaving

[00:08:11] [SPEAKER_01]: the Dominican Republic on the next Monday.

[00:08:14] [SPEAKER_01]: And the gentleman tells me, hey, I want to buy your house.

[00:08:18] [SPEAKER_01]: Say what's her offer?

[00:08:19] [SPEAKER_01]: He gives me, he tells me exactly my asking price.

[00:08:23] [SPEAKER_01]: And he says it's all cash.

[00:08:26] [SPEAKER_01]: I say, yeah, I told him.

[00:08:29] [SPEAKER_04]: Make sure you test that for cocaine.

[00:08:32] [SPEAKER_01]: Well, I had his names.

[00:08:35] [SPEAKER_01]: I start asking people and he was a big entrepreneur.

[00:08:39] [SPEAKER_01]: He owned a few businesses, textile businesses in my hometown.

[00:08:43] [SPEAKER_01]: So I do, I do.

[00:08:45] [SPEAKER_01]: And I told him, hey, I'm in today's and he says, I'm ready today.

[00:08:53] [SPEAKER_01]: I was an hour away.

[00:08:55] [SPEAKER_01]: I drive.

[00:08:56] [SPEAKER_01]: I'm making my phone calls, making sure everything is right.

[00:08:59] [SPEAKER_01]: My mom even knows the guy apparently when it's cool together.

[00:09:04] [SPEAKER_01]: And said and done, it was all cash.

[00:09:08] [SPEAKER_01]: And we go to the bank and it was literally cash

[00:09:13] [SPEAKER_01]: in a bag.

[00:09:14] [SPEAKER_04]: Wow.

[00:09:15] [SPEAKER_04]: Cash was a U.S. cash or Dominican cash?

[00:09:18] [SPEAKER_01]: It was Dominican cash.

[00:09:19] [SPEAKER_01]: So it was heavy, very heavy.

[00:09:21] [SPEAKER_01]: Wow.

[00:09:22] [SPEAKER_04]: Crazy, crazy.

[00:09:23] [SPEAKER_04]: All right.

[00:09:24] [SPEAKER_04]: Well anyway, so you sold the house.

[00:09:26] [SPEAKER_04]: What's next?

[00:09:27] [SPEAKER_01]: Well, I made 20% on that.

[00:09:32] [SPEAKER_04]: That was the aha moment.

[00:09:34] [SPEAKER_04]: That's one of my questions.

[00:09:35] [SPEAKER_04]: Do you have any aha moments in this?

[00:09:37] [SPEAKER_04]: And that was an aha moment.

[00:09:38] [SPEAKER_04]: Okay.

[00:09:39] [SPEAKER_01]: Got it.

[00:09:39] [SPEAKER_01]: That was my aha moment because it was probably seven months from start to finish.

[00:09:47] [SPEAKER_01]: And I made 20%.

[00:09:48] [SPEAKER_01]: I was like, this is the easiest money I've ever made and didn't do much.

[00:09:53] [SPEAKER_01]: And I started buying duplexes and houses here in Florida more in the Dominican Republic.

[00:10:00] [SPEAKER_01]: And I thought I was going to make it for the financial freedom and passive income.

[00:10:05] [SPEAKER_01]: And I think I had my second aha moment where I realized this is slow.

[00:10:11] [SPEAKER_01]: Buying one house at a time, one small, multiple family at a time.

[00:10:17] [SPEAKER_04]: And yeah, it took me 2000 houses to get that memo.

[00:10:20] [SPEAKER_04]: So you're a hell of a lot smarter than I am, brother.

[00:10:22] [SPEAKER_04]: Okay.

[00:10:24] [SPEAKER_01]: Yeah.

[00:10:26] [SPEAKER_01]: Yeah.

[00:10:26] [SPEAKER_01]: And that's when I discovered you guys.

[00:10:28] [SPEAKER_01]: I was introduced through social media where you guys were talking about and the power

[00:10:35] [SPEAKER_01]: of economies of scale and also your story Rod about all the houses that you had

[00:10:41] [SPEAKER_01]: and how you transitioned.

[00:10:42] [SPEAKER_01]: And that was the aha moment.

[00:10:44] [SPEAKER_01]: I realized that it was a mindset shift more than anything.

[00:10:48] [SPEAKER_01]: And after you have that mindset shift, it was meeting the right people.

[00:10:52] [SPEAKER_01]: Which you preach a lot about both the power of partnerships and you have a lot of guides

[00:10:55] [SPEAKER_01]: about how to choose the right partners.

[00:10:59] [SPEAKER_01]: That was the click where I started making commercial real estate investments and

[00:11:08] [SPEAKER_01]: the business has improved and multiplied ever since.

[00:11:12] [SPEAKER_04]: Yeah, but on that note you said I share how to hire the right partner, how to meet the right,

[00:11:17] [SPEAKER_04]: not hire, right?

[00:11:18] [SPEAKER_04]: I'm sorry, how to connect with the right partner, evaluate that partner,

[00:11:22] [SPEAKER_04]: make sure you're connected with that partner.

[00:11:23] [SPEAKER_04]: If you go to rodslinks.com, rodsplurl, linksplur.com, that's my link tree.

[00:11:29] [SPEAKER_04]: And there's a book there on the questions you should ask before you get in a partnership.

[00:11:33] [SPEAKER_04]: Okay.

[00:11:34] [SPEAKER_04]: Because a partnership like a marriage is easy to get into and very hard to get out of.

[00:11:37] [SPEAKER_04]: So just want to mention that resource before we moved on there real quick.

[00:11:42] [SPEAKER_02]: So bring us into your first deal here now.

[00:11:44] [SPEAKER_02]: Obviously less than a year working with us in multifamily.

[00:11:47] [SPEAKER_02]: You got your first deal.

[00:11:49] [SPEAKER_02]: It's a little bit of a unique one.

[00:11:51] [SPEAKER_02]: Self storage deal.

[00:11:52] [SPEAKER_02]: Just give us the basics from A to Z.

[00:11:54] [SPEAKER_02]: How'd you find the team?

[00:11:56] [SPEAKER_02]: How did the deal get found?

[00:11:57] [SPEAKER_02]: Why is it a good deal?

[00:11:59] [SPEAKER_02]: Give us the rundown on how you got into this.

[00:12:01] [SPEAKER_01]: And since I've joined, I've done three commercial real estate deals since I joined the Warriors.

[00:12:08] [SPEAKER_04]: In one year.

[00:12:10] [SPEAKER_01]: Yeah, yeah, it's going to be here in about a week or so.

[00:12:13] [SPEAKER_04]: Wow, fantastic.

[00:12:14] [SPEAKER_01]: Yeah.

[00:12:15] [SPEAKER_01]: And yeah.

[00:12:16] [SPEAKER_01]: So I'm going to talk about this self storage deal and I went to your Orlando Life Bootcamp.

[00:12:26] [SPEAKER_01]: I joined the Warriors after the online one, but I went to the Live one.

[00:12:32] [SPEAKER_01]: And I was just roaming around the outside during a break and I met another Warrior

[00:12:39] [SPEAKER_01]: and we became friends.

[00:12:40] [SPEAKER_01]: I think after that moment, we've talked on the phone every day or every other day.

[00:12:45] [SPEAKER_01]: It's that kind of friendship.

[00:12:47] [SPEAKER_01]: We've gone to the Dominican Republic together not too long ago.

[00:12:52] [SPEAKER_01]: Yeah, we're friends at this point.

[00:12:55] [SPEAKER_01]: And I think that relationship, that friendship with that person and the other people that I met

[00:13:03] [SPEAKER_01]: kickstarted a new source of deal flow that people were inviting me into deals and asking me,

[00:13:07] [SPEAKER_01]: hey, so what can you do best?

[00:13:10] [SPEAKER_01]: I realized given my involvement in tech and talking to people about what I do,

[00:13:15] [SPEAKER_01]: that capital racing was probably one of the strengths.

[00:13:18] [SPEAKER_01]: And you speak about the different roles, acquisition being one, capital racing,

[00:13:22] [SPEAKER_01]: or asset management.

[00:13:24] [SPEAKER_01]: At the beginning, I was trying everything and I said, I could be successful here,

[00:13:28] [SPEAKER_01]: but you have to pick one is what I've realized and just go with it for a bit.

[00:13:32] [SPEAKER_04]: Well, not just that.

[00:13:33] [SPEAKER_04]: You should pick when you enjoy because when you do what you love, work is playing.

[00:13:37] [SPEAKER_04]: You never work another day in your life.

[00:13:39] [SPEAKER_04]: And if you do what you love, if you put on the hat of what you enjoy doing on the team

[00:13:44] [SPEAKER_04]: and you align higher or partner with people for the things that they enjoy doing,

[00:13:48] [SPEAKER_04]: success is fricking inevitable.

[00:13:50] [SPEAKER_04]: And if you love what you do, you're passionate about it and people can feel that passion.

[00:13:55] [SPEAKER_04]: And passion is required to influence people.

[00:13:57] [SPEAKER_04]: So please continue.

[00:13:59] [SPEAKER_04]: So what did you land on?

[00:14:01] [SPEAKER_01]: Yeah, so this was a property in South Carolina.

[00:14:05] [SPEAKER_04]: No, no, no, no.

[00:14:06] [SPEAKER_04]: You're superpower, brother.

[00:14:07] [SPEAKER_04]: You're super power.

[00:14:08] [SPEAKER_04]: What superpower did you land on?

[00:14:10] [SPEAKER_01]: Absolutely.

[00:14:11] [SPEAKER_01]: The superpower was capital raising.

[00:14:14] [SPEAKER_04]: Yeah.

[00:14:14] [SPEAKER_01]: I learned about the mechanics of it.

[00:14:17] [SPEAKER_01]: You had a, I remember a social media course.

[00:14:22] [SPEAKER_01]: I remember and this was also something free.

[00:14:24] [SPEAKER_01]: I took it while I was joining first month in and I realized I already know a lot of people

[00:14:30] [SPEAKER_01]: and they've been asking me about real estate up to that point.

[00:14:34] [SPEAKER_01]: I probably had only raised capital from one friend and everything else was just with my own capital.

[00:14:41] [SPEAKER_01]: So I had started talking to people, hey, I'm about to do this.

[00:14:47] [SPEAKER_01]: This is how it works.

[00:14:48] [SPEAKER_01]: And I got invited into the deal.

[00:14:51] [SPEAKER_01]: Well, the whole team was invited into the deal about two weeks from closing.

[00:14:57] [SPEAKER_01]: This was, and we had a capital raise and I just had started vacation.

[00:15:04] [SPEAKER_01]: And I had started vacation and I went to, it was about my birthday in November

[00:15:11] [SPEAKER_01]: and I was traveling in Europe.

[00:15:13] [SPEAKER_01]: So I had cleared my W2 obligations, but I put two blocks of time, three hours,

[00:15:20] [SPEAKER_01]: one for my friends in the East Coast and another for the West Coast.

[00:15:25] [SPEAKER_01]: And I was walking in London making phone calls.

[00:15:31] [SPEAKER_01]: All the people that I had talked to, I was calling them up and they were very excited.

[00:15:36] [SPEAKER_01]: They could hear the passion in my voice and I had a story to tell, hey, I'm here,

[00:15:40] [SPEAKER_01]: but listen, you have to believe me, this deal is good.

[00:15:42] [SPEAKER_01]: And the number spoke by themselves.

[00:15:46] [SPEAKER_01]: I think one of the things that allowed me to be successful in that race was

[00:15:52] [SPEAKER_01]: I didn't do the initial, the first underwriting, but I definitely re-underrode the deal.

[00:15:57] [SPEAKER_01]: I re-underrode it to the point that I understood all the different little things.

[00:16:02] [SPEAKER_01]: So whenever I talked to somebody that was a bit savvy, I could answer their questions

[00:16:07] [SPEAKER_01]: and they understood that I had that understanding.

[00:16:10] [SPEAKER_01]: I also co-invested with everybody.

[00:16:12] [SPEAKER_01]: So everybody liked that.

[00:16:13] [SPEAKER_01]: I was putting off my own money in the deal.

[00:16:17] [SPEAKER_04]: No, that's great.

[00:16:19] [SPEAKER_04]: You mentioned on your notes that you sent in advance of this,

[00:16:22] [SPEAKER_04]: you call yourselves Fang.

[00:16:25] [SPEAKER_04]: Talk about what that is.

[00:16:26] [SPEAKER_04]: Because I mean, you're in the freaking IT space.

[00:16:29] [SPEAKER_04]: A lot of money in the IT space.

[00:16:30] [SPEAKER_04]: Some of my most successful warriors come from the IT space and raise money in the IT space

[00:16:35] [SPEAKER_04]: like you.

[00:16:36] [SPEAKER_04]: But what does Fang mean?

[00:16:38] [SPEAKER_01]: Yeah.

[00:16:39] [SPEAKER_01]: So Fang is an acronym that's old at this point, but it's F-A-A-N-G

[00:16:46] [SPEAKER_01]: and it stands for Facebook, Apple, Amazon, Netflix, and Google.

[00:16:53] [SPEAKER_04]: Yeah.

[00:16:54] [SPEAKER_04]: I mean, I didn't know it may be old, but I'm old too.

[00:16:56] [SPEAKER_04]: So I didn't even know that existed.

[00:16:58] [SPEAKER_02]: Nowadays, you can replace Netflix with Nvidia.

[00:17:00] [SPEAKER_02]: They're probably the bigger tech one now.

[00:17:02] [SPEAKER_02]: Yeah.

[00:17:03] [SPEAKER_02]: So it still works.

[00:17:04] [SPEAKER_02]: Still works.

[00:17:04] [SPEAKER_04]: You knew what that was?

[00:17:06] [SPEAKER_04]: You knew what that was, Mark?

[00:17:07] [SPEAKER_04]: Because I didn't know it.

[00:17:07] [SPEAKER_04]: I'd never heard of that.

[00:17:08] [SPEAKER_04]: Okay, well, shame on me.

[00:17:10] [SPEAKER_04]: But I mean, obviously, you connect with people in that space.

[00:17:14] [SPEAKER_04]: So duh, and if you're in the medical space, talk to doctors.

[00:17:18] [SPEAKER_04]: If you're an athlete, talk to athletes.

[00:17:20] [SPEAKER_04]: If you're a business owner, talk to business owners.

[00:17:22] [SPEAKER_04]: So you connect with the people in that space,

[00:17:25] [SPEAKER_04]: which is your buddies in the IT world.

[00:17:27] [SPEAKER_04]: Yeah?

[00:17:27] [SPEAKER_04]: That's who you were calling from London.

[00:17:29] [SPEAKER_01]: Yeah, I was calling all my Fang friends from London.

[00:17:33] [SPEAKER_04]: Nice.

[00:17:34] [SPEAKER_04]: Nice.

[00:17:35] [SPEAKER_04]: All right, now we can talk about that deal.

[00:17:37] [SPEAKER_04]: So talk about that self-storage deal.

[00:17:39] [SPEAKER_04]: By the way, guys, those of you listening,

[00:17:40] [SPEAKER_04]: we don't just do multi-family here in the Warrior Group.

[00:17:43] [SPEAKER_04]: We do self-storage.

[00:17:44] [SPEAKER_04]: We do other asset classes like retail, mixed use.

[00:17:49] [SPEAKER_02]: New construction.

[00:17:50] [SPEAKER_04]: New construction.

[00:17:51] [SPEAKER_02]: Mobile home parks.

[00:17:52] [SPEAKER_04]: Mobile home parks.

[00:17:53] [SPEAKER_04]: Hotel conversions to multi-family.

[00:17:55] [SPEAKER_04]: We've got Warriors doing all of it.

[00:17:57] [SPEAKER_04]: So anyway, talk about this deal, brother.

[00:18:01] [SPEAKER_01]: Yeah, absolutely.

[00:18:02] [SPEAKER_01]: So it was in South Carolina, and it was an office slash industrial space

[00:18:10] [SPEAKER_01]: with a big acreage.

[00:18:13] [SPEAKER_01]: And we did a conversion to self-storage.

[00:18:17] [SPEAKER_01]: It was a class A self-storage, so brand new with climate control units

[00:18:21] [SPEAKER_01]: about 400 climate control units.

[00:18:24] [SPEAKER_01]: It had some portables, which are very cost-effective,

[00:18:27] [SPEAKER_01]: and you can link them together, put them on asphalt or concrete.

[00:18:31] [SPEAKER_01]: And we also put some RV and a boat parking,

[00:18:37] [SPEAKER_01]: which are also very cost-effective.

[00:18:39] [SPEAKER_01]: So we did a feasibility study and realized that they,

[00:18:45] [SPEAKER_01]: in that particular sub market, it had about 20 to 30 lakes

[00:18:50] [SPEAKER_01]: with a lot of boats.

[00:18:52] [SPEAKER_01]: We realized that most of the other competitors,

[00:18:56] [SPEAKER_01]: self-storage, were 97% plus occupied, which is a good clue.

[00:19:03] [SPEAKER_01]: And we noticed the expert that went in,

[00:19:07] [SPEAKER_01]: they flew all the way from California,

[00:19:09] [SPEAKER_01]: spent about a week in there,

[00:19:10] [SPEAKER_01]: that there was a need of 400,000 square feet of self-storage

[00:19:16] [SPEAKER_01]: in that particular location.

[00:19:18] [SPEAKER_04]: Based on some research that you brought in a self-storage expert

[00:19:22] [SPEAKER_04]: that analyzed the market, analyzed the available assets,

[00:19:25] [SPEAKER_04]: and came up with a shortage of that much.

[00:19:27] [SPEAKER_04]: Correct.

[00:19:27] [SPEAKER_04]: Nice.

[00:19:28] [SPEAKER_04]: Smart move.

[00:19:29] [SPEAKER_04]: Okay, good.

[00:19:30] [SPEAKER_01]: Yeah, nowadays we do that for everything that we're considering

[00:19:33] [SPEAKER_01]: to do that type of asset class.

[00:19:36] [SPEAKER_01]: And this represented about 90,000 square feet of,

[00:19:41] [SPEAKER_01]: so we were well below the total need.

[00:19:45] [SPEAKER_01]: And yeah, it's very great operating team.

[00:19:50] [SPEAKER_01]: Very fast.

[00:19:52] [SPEAKER_01]: I send the emails every month to my investors

[00:19:56] [SPEAKER_01]: and I send them drone footage, pictures,

[00:20:00] [SPEAKER_01]: and the speed at which we've developed this,

[00:20:03] [SPEAKER_01]: it's really good.

[00:20:05] [SPEAKER_01]: It's really good.

[00:20:05] [SPEAKER_01]: So the success of this project can be attributed

[00:20:08] [SPEAKER_01]: to the operating team, definitely.

[00:20:10] [SPEAKER_04]: Nice.

[00:20:11] [SPEAKER_04]: And these are all warriors, yes?

[00:20:13] [SPEAKER_01]: Most of them are warriors.

[00:20:14] [SPEAKER_01]: There's at least warriors in this deal, including you.

[00:20:18] [SPEAKER_01]: Nice.

[00:20:18] [SPEAKER_02]: I have a couple of questions on that.

[00:20:20] [SPEAKER_02]: And just for clarity, first one, you said new construction.

[00:20:24] [SPEAKER_02]: Did you guys build it or was it already built

[00:20:26] [SPEAKER_02]: and you guys just bought it and then had to then fill it up

[00:20:29] [SPEAKER_02]: because it was vacant?

[00:20:31] [SPEAKER_02]: Where was the value add in this?

[00:20:33] [SPEAKER_01]: Yeah, yeah, absolutely.

[00:20:35] [SPEAKER_01]: So the value add, it wasn't being operated,

[00:20:38] [SPEAKER_01]: it was more or less abandoned.

[00:20:40] [SPEAKER_01]: And it has a flex warehouse type construction in the middle.

[00:20:45] [SPEAKER_01]: So when we go in and build inside,

[00:20:49] [SPEAKER_01]: it was just a little bit of demolition

[00:20:52] [SPEAKER_01]: and it was just putting the climate controlled units.

[00:20:57] [SPEAKER_01]: So typically a construction of this will run

[00:21:00] [SPEAKER_01]: over $150 per square feet, maybe 180 in this upmarket.

[00:21:06] [SPEAKER_01]: But we were able to get it sub 100

[00:21:08] [SPEAKER_01]: because we just leveraged the structure that was in.

[00:21:11] [SPEAKER_01]: So that was where the play for us.

[00:21:15] [SPEAKER_04]: There's a conversion, it was a conversion basically.

[00:21:18] [SPEAKER_04]: You've seen people do it with freaking old K-Marts

[00:21:20] [SPEAKER_04]: and big box retailers.

[00:21:23] [SPEAKER_04]: You just did it within an industrial building.

[00:21:24] [SPEAKER_04]: Is that accurate?

[00:21:25] [SPEAKER_04]: Is that what it was like a warehouse or something?

[00:21:27] [SPEAKER_04]: Yeah, perfect.

[00:21:28] [SPEAKER_04]: It's an industrial, yep.

[00:21:29] [SPEAKER_04]: Oh yeah, perfect.

[00:21:30] [SPEAKER_04]: Beautiful.

[00:21:31] [SPEAKER_02]: Now secondly, you mentioned the management team.

[00:21:34] [SPEAKER_02]: Did you have anybody on the team

[00:21:35] [SPEAKER_02]: who had done self storage or this type of deal before

[00:21:38] [SPEAKER_02]: that you could lean on a little bit

[00:21:40] [SPEAKER_02]: for getting into an abandoned warehouse basically?

[00:21:44] [SPEAKER_01]: Absolutely.

[00:21:45] [SPEAKER_01]: Boots in the ground was very important.

[00:21:47] [SPEAKER_01]: There was a partner that lives nearby

[00:21:50] [SPEAKER_01]: and they're there every day.

[00:21:52] [SPEAKER_01]: The majority of the GP points for that particular partner

[00:21:56] [SPEAKER_01]: comes from the fact that he's managing the construction.

[00:21:59] [SPEAKER_03]: Asset management, he's doing asset management

[00:22:01] [SPEAKER_03]: and construction management.

[00:22:02] [SPEAKER_03]: Okay good.

[00:22:03] [SPEAKER_01]: Yeah, yeah, yeah.

[00:22:03] [SPEAKER_01]: Then we have another expert that specializes on the leasing

[00:22:07] [SPEAKER_01]: and stabilized part of the asset management.

[00:22:10] [SPEAKER_01]: So yeah, perfect.

[00:22:11] [SPEAKER_01]: And then there's another expert

[00:22:14] [SPEAKER_01]: that already has a brand in the self storage space.

[00:22:18] [SPEAKER_01]: With the brand also comes a lot of knowledge.

[00:22:21] [SPEAKER_01]: So we can utilize the website

[00:22:23] [SPEAKER_01]: and start pre-leasing from now

[00:22:25] [SPEAKER_01]: to the people that already are accessing the brand.

[00:22:28] [SPEAKER_04]: So what role are you playing

[00:22:29] [SPEAKER_04]: other than bringing some money into the deal

[00:22:31] [SPEAKER_04]: and underwriting?

[00:22:33] [SPEAKER_01]: Yeah, so we divided between the Warrior 3 group included.

[00:22:40] [SPEAKER_01]: I did a lot of the capital racing

[00:22:42] [SPEAKER_01]: and then combined the team did earnest money

[00:22:48] [SPEAKER_01]: and also part of the asset management.

[00:22:52] [SPEAKER_01]: A few roles at not at the construction stage

[00:22:54] [SPEAKER_01]: but at the stabilized stage.

[00:22:57] [SPEAKER_04]: Gotcha.

[00:22:57] [SPEAKER_04]: So you'd be involved in that asset management then as well?

[00:23:00] [SPEAKER_04]: Okay, good.

[00:23:01] [SPEAKER_04]: Good.

[00:23:01] [SPEAKER_02]: By the way, this deal I don't know if you mentioned

[00:23:03] [SPEAKER_02]: projected over five year holds,

[00:23:06] [SPEAKER_02]: 3x equity multiplier, 29% IRR

[00:23:10] [SPEAKER_02]: if you can't get excited about potentially

[00:23:11] [SPEAKER_02]: tripling your money over five years.

[00:23:13] [SPEAKER_02]: I don't know what would.

[00:23:15] [SPEAKER_04]: Yeah, a screaming deal.

[00:23:16] [SPEAKER_04]: Absolutely a screaming deal.

[00:23:18] [SPEAKER_04]: And the reason that was such a great deal

[00:23:22] [SPEAKER_04]: is you thought outside the box.

[00:23:23] [SPEAKER_04]: You got creative.

[00:23:24] [SPEAKER_04]: You looked at something

[00:23:25] [SPEAKER_04]: you looked at it and you looked at it

[00:23:26] [SPEAKER_04]: differently than other people were looking at it.

[00:23:28] [SPEAKER_04]: You did your homework.

[00:23:29] [SPEAKER_04]: You got an expert in to see what the need was.

[00:23:32] [SPEAKER_04]: And then you basically did a conversion

[00:23:36] [SPEAKER_04]: and that's big money.

[00:23:37] [SPEAKER_04]: We had a warrior that did a hotel conversion

[00:23:39] [SPEAKER_04]: and the numbers were staggering just like this.

[00:23:42] [SPEAKER_04]: So good for you, man.

[00:23:43] [SPEAKER_04]: And I will tell you anytime you get creative

[00:23:46] [SPEAKER_04]: and you solve problems, success is inevitable.

[00:23:49] [SPEAKER_04]: And this is a perfect example of that.

[00:23:51] [SPEAKER_04]: So I know you've got a couple other deals

[00:23:52] [SPEAKER_04]: that you either close or about to close or something.

[00:23:56] [SPEAKER_04]: Talk about the other deals you got going, brother.

[00:23:57] [SPEAKER_01]: So there are two more.

[00:23:59] [SPEAKER_01]: But these are recent month, two month old.

[00:24:03] [SPEAKER_01]: What are they?

[00:24:04] [SPEAKER_01]: One is a multifamily in Kansas about 72 units.

[00:24:10] [SPEAKER_01]: But we're turning one unused space into a 73rd unit,

[00:24:15] [SPEAKER_01]: which adding good value.

[00:24:17] [SPEAKER_01]: That one was already 100 percent occupied.

[00:24:20] [SPEAKER_01]: And that's another clue that rents were very below.

[00:24:26] [SPEAKER_03]: Yeah.

[00:24:27] [SPEAKER_01]: Yeah.

[00:24:28] [SPEAKER_01]: Not much coppix needed to get it back to market.

[00:24:32] [SPEAKER_01]: You're built.

[00:24:33] [SPEAKER_01]: I can't recall right now.

[00:24:35] [SPEAKER_04]: Okay.

[00:24:35] [SPEAKER_04]: I mean, is it older mid-range, newer?

[00:24:38] [SPEAKER_04]: What older?

[00:24:40] [SPEAKER_04]: Mid-range.

[00:24:40] [SPEAKER_04]: Mid-range.

[00:24:40] [SPEAKER_04]: Okay.

[00:24:41] [SPEAKER_04]: So maybe 80s or something.

[00:24:42] [SPEAKER_04]: Okay.

[00:24:43] [SPEAKER_04]: And where in Kansas?

[00:24:45] [SPEAKER_04]: This is near Kansas City.

[00:24:47] [SPEAKER_04]: Okay.

[00:24:48] [SPEAKER_04]: Near Kansas City.

[00:24:48] [SPEAKER_04]: Okay.

[00:24:49] [SPEAKER_04]: So 72 units.

[00:24:50] [SPEAKER_04]: Nice.

[00:24:50] [SPEAKER_04]: Okay.

[00:24:51] [SPEAKER_04]: And new financing on that or how did you take it down?

[00:24:55] [SPEAKER_01]: Loan assumption at 3.03%.

[00:24:58] [SPEAKER_04]: Boom.

[00:24:58] [SPEAKER_04]: That's huge.

[00:24:59] [SPEAKER_04]: It's freaking huge.

[00:25:00] [SPEAKER_02]: We just talked about this on last week's podcast.

[00:25:03] [SPEAKER_02]: Yeah.

[00:25:03] [SPEAKER_02]: I mean, you will get any deals.

[00:25:05] [SPEAKER_04]: Yeah.

[00:25:05] [SPEAKER_04]: There you go.

[00:25:06] [SPEAKER_04]: So that's fantastic.

[00:25:07] [SPEAKER_04]: How many years left on it?

[00:25:10] [SPEAKER_01]: About three or so.

[00:25:12] [SPEAKER_04]: Okay.

[00:25:12] [SPEAKER_04]: Okay.

[00:25:12] [SPEAKER_04]: So in three years, you got to refire or sell one of the two.

[00:25:16] [SPEAKER_04]: Okay.

[00:25:16] [SPEAKER_04]: Fantastic.

[00:25:18] [SPEAKER_01]: Yeah.

[00:25:18] [SPEAKER_01]: We underwashed a three-year hold and the numbers are really good.

[00:25:22] [SPEAKER_01]: But we believe in

[00:25:24] [SPEAKER_01]: re-underwriting every year or so to see what makes sense.

[00:25:27] [SPEAKER_04]: No, that's smart.

[00:25:28] [SPEAKER_04]: You should re-underwrite every year.

[00:25:30] [SPEAKER_04]: That's really good.

[00:25:32] [SPEAKER_04]: Okay.

[00:25:32] [SPEAKER_04]: And the third deal.

[00:25:33] [SPEAKER_04]: Oh, yeah.

[00:25:34] [SPEAKER_01]: Third deal.

[00:25:34] [SPEAKER_01]: I forgot about that.

[00:25:35] [SPEAKER_01]: Third deal.

[00:25:35] [SPEAKER_04]: Yeah.

[00:25:36] [SPEAKER_04]: Third deal.

[00:25:36] [SPEAKER_01]: Yeah.

[00:25:37] [SPEAKER_01]: The third deal is an interesting one.

[00:25:42] [SPEAKER_01]: This one came same warrior group and there's a big developer that is doing

[00:25:51] [SPEAKER_01]: very creative structures where comes the lender, the builder, and the landowner.

[00:26:00] [SPEAKER_01]: And they come together as partner in the deals.

[00:26:02] [SPEAKER_01]: And there's a lot of value to be made.

[00:26:04] [SPEAKER_04]: Oh, sure.

[00:26:05] [SPEAKER_04]: They especially if they throw in their equity.

[00:26:08] [SPEAKER_01]: Exactly.

[00:26:09] [SPEAKER_01]: Exactly.

[00:26:09] [SPEAKER_04]: Right.

[00:26:10] [SPEAKER_01]: So what we did here is we acquire the land and we knew the buy box for the developer

[00:26:16] [SPEAKER_01]: and we put the EMD.

[00:26:18] [SPEAKER_01]: We negotiated very good terms with the...

[00:26:22] [SPEAKER_04]: Earnest money deposit.

[00:26:24] [SPEAKER_04]: Okay.

[00:26:24] [SPEAKER_04]: And you negotiated very good terms.

[00:26:26] [SPEAKER_04]: Mm-hmm.

[00:26:26] [SPEAKER_01]: Yes, very good terms on the downside for that and even on the offsite.

[00:26:31] [SPEAKER_01]: So there's a lot of protections like corporate guarantees,

[00:26:35] [SPEAKER_01]: promissory note at a very competitive rate.

[00:26:39] [SPEAKER_01]: And then getting the money back at the closing table

[00:26:44] [SPEAKER_01]: and also being part of the GP based on just the EMD.

[00:26:48] [SPEAKER_04]: Wow.

[00:26:49] [SPEAKER_04]: So you got a slice of the GP for putting up the at-risk capital.

[00:26:53] [SPEAKER_04]: Correct.

[00:26:53] [SPEAKER_04]: Good for you.

[00:26:54] [SPEAKER_04]: Okay.

[00:26:56] [SPEAKER_04]: And by the way, guys, keep here and mention the warrior group.

[00:26:59] [SPEAKER_04]: If you are interested in applying to the warrior group,

[00:27:02] [SPEAKER_04]: text the word crush to 72345 so we can help you crush it.

[00:27:07] [SPEAKER_04]: I mean, he's only gotten three deals in the last year.

[00:27:09] [SPEAKER_04]: He's a slacker but you can do better than that, okay?

[00:27:13] [SPEAKER_02]: It's so funny.

[00:27:14] [SPEAKER_02]: Every time you see someone get one, it always snowballs so quickly into their second or third,

[00:27:20] [SPEAKER_02]: their fourth.

[00:27:21] [SPEAKER_04]: I've seen it so many times.

[00:27:23] [SPEAKER_04]: You know, it's that law of the first deal.

[00:27:24] [SPEAKER_04]: It's the scariest.

[00:27:25] [SPEAKER_04]: It takes the longest.

[00:27:26] [SPEAKER_04]: That's the hardest and, you know, people are complaining.

[00:27:29] [SPEAKER_04]: I mean, you didn't obviously but I've heard a lot of warriors are like,

[00:27:31] [SPEAKER_04]: Oh, it's been four months, six months, eight months.

[00:27:33] [SPEAKER_04]: Then they get one and I'm like, holy crap, now they've got three.

[00:27:36] [SPEAKER_04]: You know, that's how it works.

[00:27:37] [SPEAKER_04]: It's funny.

[00:27:37] [SPEAKER_04]: It's funny.

[00:27:38] [SPEAKER_04]: Georgie has the warrior program been what you hoped it would be?

[00:27:41] [SPEAKER_04]: Absolutely.

[00:27:42] [SPEAKER_04]: Absolutely.

[00:27:43] [SPEAKER_01]: I'm very glad.

[00:27:45] [SPEAKER_01]: I remember when I joined speaking to friends about there are certain decisions that you want to make

[00:27:51] [SPEAKER_01]: and that you're scared and you feel, you feel scared and sometimes you're scared because

[00:27:57] [SPEAKER_01]: you know it's not good for you but sometimes if you go deeper, you're scared because

[00:28:03] [SPEAKER_01]: you don't know what's going to happen after and that's how I felt.

[00:28:07] [SPEAKER_01]: I remember Mark, you and I speaking.

[00:28:09] [SPEAKER_01]: It took me a bit but I was excited and I told you,

[00:28:12] [SPEAKER_01]: Hey Mark, when I call you again, it's because I want to do this and I did.

[00:28:17] [SPEAKER_01]: I don't look back.

[00:28:18] [SPEAKER_01]: I'm very glad that I did.

[00:28:20] [SPEAKER_01]: I invite a lot of my friends.

[00:28:22] [SPEAKER_01]: I send them the emails.

[00:28:23] [SPEAKER_01]: I still get the emails.

[00:28:24] [SPEAKER_01]: Hey, come to the bootcamp.

[00:28:25] [SPEAKER_01]: I say, Hey, it's 97.

[00:28:27] [SPEAKER_01]: It's this price.

[00:28:28] [SPEAKER_01]: Go, go, go.

[00:28:29] [SPEAKER_04]: Tell me your freaking excuse.

[00:28:32] [SPEAKER_04]: It's 97 freaking dollars very often if you catch us at the right time.

[00:28:36] [SPEAKER_04]: But you know, tell me.

[00:28:38] [SPEAKER_04]: I don't want to hear your excuses.

[00:28:39] [SPEAKER_04]: There's no excuses because it's not a big sales pitch.

[00:28:42] [SPEAKER_04]: It's just freaking knowledge and that's what you need to be a success.

[00:28:46] [SPEAKER_04]: Anyway, text crush to 72345 if you want to check it out.

[00:28:50] [SPEAKER_04]: That's it.

[00:28:50] [SPEAKER_02]: So I wanted to dig in a little bit more on the capital raising that you talked about

[00:28:55] [SPEAKER_02]: because obviously you mentioned you have the connections in the tech world.

[00:28:58] [SPEAKER_02]: And I'm sure very often the people that you're connected with are invested in tech

[00:29:04] [SPEAKER_02]: stocks or Bitcoin or all the things that are in that world, right?

[00:29:08] [SPEAKER_02]: Real estate might be new.

[00:29:09] [SPEAKER_02]: What are some of the conversations like when you're calling those people to talk to them

[00:29:15] [SPEAKER_02]: about bringing them in as a potential investor?

[00:29:18] [SPEAKER_02]: Are they are they having pains in terms of, you know, their current investments?

[00:29:22] [SPEAKER_02]: What are what are some of those conversations like and how do you

[00:29:25] [SPEAKER_02]: generally convince them to move over into real estate?

[00:29:29] [SPEAKER_01]: That's a great question, Mark.

[00:29:31] [SPEAKER_01]: I sometimes stocks is the main one, right?

[00:29:35] [SPEAKER_01]: People have their 401ks and their Robinhood accounts and they just invest in stocks.

[00:29:40] [SPEAKER_01]: Some of them may stock pick or just put money on their ETFs.

[00:29:45] [SPEAKER_01]: I think it boils down to education.

[00:29:49] [SPEAKER_01]: There are a few times comes somebody has said, hey,

[00:29:51] [SPEAKER_01]: I learned about the benefits of real estate.

[00:29:53] [SPEAKER_01]: I just don't know how to do it, right?

[00:29:56] [SPEAKER_01]: And then we talk.

[00:29:57] [SPEAKER_01]: I told them my stories, how I've done it, the type of returns that I've been getting,

[00:30:02] [SPEAKER_01]: which are always higher than the stocks.

[00:30:05] [SPEAKER_01]: Me myself, I still do some stock picking here and there and I can't be my real estate.

[00:30:12] [SPEAKER_01]: There are a few people that if I try to reach people,

[00:30:17] [SPEAKER_01]: I may find these people that don't believe in real estate.

[00:30:21] [SPEAKER_01]: These may be, I don't know, 22 year old people that are more into the crypto

[00:30:26] [SPEAKER_01]: and they swear that crypto is a better vehicle, right?

[00:30:32] [SPEAKER_01]: But then once it swings down, they're very quiet, but that's fine.

[00:30:37] [SPEAKER_01]: What I like to think, I philosophize a lot about this, is people like to see the return,

[00:30:44] [SPEAKER_01]: but they ignore the risk.

[00:30:48] [SPEAKER_01]: When I, for example, that one deal on the loan assumption, right?

[00:30:55] [SPEAKER_01]: It's an asset.

[00:30:56] [SPEAKER_01]: It's already 100% occupied.

[00:30:57] [SPEAKER_01]: You're eliminating a lot of the risks that if we were to just operate it normally,

[00:31:02] [SPEAKER_01]: it would just cash flow and our investment will be there.

[00:31:06] [SPEAKER_01]: There's a lot of investments in real estate because it's backed by a hard asset

[00:31:11] [SPEAKER_01]: that to me, it's a no-brainer, but to them they need certain education.

[00:31:15] [SPEAKER_01]: And that's where I come in.

[00:31:16] [SPEAKER_01]: We talk it through and I tell them what I believe and they end up doing their first

[00:31:22] [SPEAKER_01]: investment and then they do their second and their third.

[00:31:25] [SPEAKER_01]: I have some friends that they call me up and they say, hey, I have $100,000 and I want to do

[00:31:31] [SPEAKER_01]: one of those things that you did.

[00:31:33] [SPEAKER_01]: And that's how we've been working.

[00:31:36] [SPEAKER_02]: And one of those things, by the way, for people that don't know in terms of the downsides

[00:31:40] [SPEAKER_02]: of stocks and crypto, guess what happens if you want to take that profit out

[00:31:44] [SPEAKER_02]: and use it and enjoy your life like it should be?

[00:31:47] [SPEAKER_02]: You now have to pay taxes on that money, which most people don't think about

[00:31:50] [SPEAKER_02]: versus real estate passive income is essentially tax-free because of the amount of depreciation

[00:31:56] [SPEAKER_02]: over a period of years that you do not have to pay any taxes on.

[00:31:59] [SPEAKER_02]: That's another great thing about real estate that people in the stock world that's been

[00:32:03] [SPEAKER_02]: sitting there for 20 years, they don't think about the taxes.

[00:32:06] [SPEAKER_02]: It slips their mind every once in a while.

[00:32:08] [SPEAKER_04]: Yep.

[00:32:09] [SPEAKER_04]: Now that's the reason 90% of the world's millionaires either did it in real estate

[00:32:12] [SPEAKER_04]: or invest in real estate.

[00:32:14] [SPEAKER_04]: That's what we call a clue.

[00:32:16] [SPEAKER_04]: All right.

[00:32:17] [SPEAKER_04]: So at a current pace, if you were to take a guess or projection,

[00:32:20] [SPEAKER_04]: how many years do you think it will take for you to reach financial freedom?

[00:32:23] [SPEAKER_04]: Whatever your definition of that is, Georgie.

[00:32:25] [SPEAKER_01]: I, at the beginning, I was shooting for five years and I realized that it probably would be

[00:32:34] [SPEAKER_01]: three and I have one of my warrior friends who has become a mentor.

[00:32:41] [SPEAKER_01]: He said that it's possible less than that in two or one.

[00:32:45] [SPEAKER_01]: So I'm still shooting.

[00:32:48] [SPEAKER_04]: I've seen it.

[00:32:49] [SPEAKER_04]: I've seen it that fast.

[00:32:50] [SPEAKER_04]: Yeah, sure.

[00:32:52] [SPEAKER_01]: Yeah.

[00:32:53] [SPEAKER_04]: I try to go bigger, go home, baby, go bigger, go home.

[00:32:56] [SPEAKER_04]: Okay.

[00:32:57] [SPEAKER_04]: You know, you work for one of the top tech companies on the freaking planet.

[00:33:01] [SPEAKER_04]: Why don't you just stay there and continue?

[00:33:04] [SPEAKER_04]: You'll get stock options and stuff like that.

[00:33:06] [SPEAKER_04]: And you know, and you probably make a few million bucks doing that or do a startup

[00:33:11] [SPEAKER_04]: in Silicon Valley.

[00:33:13] [SPEAKER_04]: You know, was, you know, you got a background in AI man, that's going to be insane.

[00:33:17] [SPEAKER_04]: I keep listening to Joe Rogan to interview these people in AI.

[00:33:20] [SPEAKER_04]: So why not that?

[00:33:22] [SPEAKER_04]: Why real estate?

[00:33:23] [SPEAKER_01]: I would say I could work as an AI software engineer and make a lot of money, millions.

[00:33:35] [SPEAKER_01]: The rate is very high right now.

[00:33:38] [SPEAKER_01]: And I could invest as an LP, right?

[00:33:42] [SPEAKER_01]: I could invest as an LP.

[00:33:43] [SPEAKER_01]: I could do the stocks.

[00:33:44] [SPEAKER_01]: What typically people do is they earn their money and they put in stocks, they get taxed.

[00:33:48] [SPEAKER_01]: And that timeframe is a lot longer than five years for them.

[00:33:52] [SPEAKER_01]: I think the last time I ran the math, it was probably like 20 years to get to the point where

[00:33:58] [SPEAKER_01]: you're ready, you replace at least your base income, though the money that you need to live.

[00:34:04] [SPEAKER_01]: If you were to invest as an LP, then you can considerably cut that time down to between

[00:34:13] [SPEAKER_01]: five of your very aggressive, but most likely about seven or so.

[00:34:17] [SPEAKER_01]: If you were to invest your money as an LP.

[00:34:21] [SPEAKER_01]: I personally like real estate.

[00:34:24] [SPEAKER_01]: I'm passionate about it.

[00:34:25] [SPEAKER_04]: There's the answer.

[00:34:26] [SPEAKER_04]: There's the freaking answer right there.

[00:34:28] [SPEAKER_04]: If you like it or you love it, that's what life was meant to be enjoyed.

[00:34:35] [SPEAKER_04]: Right?

[00:34:35] [SPEAKER_04]: That's it.

[00:34:36] [SPEAKER_04]: That's it right there, brother.

[00:34:37] [SPEAKER_04]: That's kind of what I was looking for.

[00:34:39] [SPEAKER_04]: Right.

[00:34:40] [SPEAKER_01]: The passion that I have in AI is that I'm not going to be a CEO.

[00:34:42] [SPEAKER_01]: To me, it's training.

[00:34:44] [SPEAKER_01]: I may be doing real estate right now, but slowly I'm turning the knowledge that I've acquired

[00:34:52] [SPEAKER_01]: from commercial real estate of under ending how to read a T12, understanding how business is done,

[00:34:58] [SPEAKER_01]: it's transferable even to, let's say, business acquisitions or if I have to do a startup later.

[00:35:06] [SPEAKER_01]: By the way, the startup, it is enticing, but it's a lot better to do a startup when you

[00:35:11] [SPEAKER_01]: have passive income to support your lifestyle.

[00:35:13] [SPEAKER_01]: Right?

[00:35:14] [SPEAKER_01]: That way you don't have to take the VC money, the venture capitalist money.

[00:35:18] [SPEAKER_01]: You don't have to live on that.

[00:35:19] [SPEAKER_01]: You can make better decisions.

[00:35:22] [SPEAKER_01]: So that is part of my plan of how to do it.

[00:35:24] [SPEAKER_04]: And much bigger pay days.

[00:35:26] [SPEAKER_04]: Yeah.

[00:35:27] [SPEAKER_01]: Yes, absolutely.

[00:35:28] [SPEAKER_01]: So that is how I'm viewing the real estate.

[00:35:32] [SPEAKER_01]: Let's train myself on being more business oriented, build a passive income,

[00:35:37] [SPEAKER_01]: be financially free, and then decide, am I going to double down into the real estate?

[00:35:43] [SPEAKER_01]: Or am I going to do more startups in AI or something else?

[00:35:48] [SPEAKER_04]: Fair enough.

[00:35:50] [SPEAKER_01]: Good advice.

[00:35:51] [SPEAKER_02]: Real quick, before we talk about how people can reach you, you have in your background

[00:35:55] [SPEAKER_02]: an AI, are there any quick tips, softwares, tools anybody can use in the AI world to

[00:36:00] [SPEAKER_02]: help them with real estate?

[00:36:01] [SPEAKER_02]: I know one we just used is the obvious chat GPT to help us actually rebrand a property,

[00:36:06] [SPEAKER_02]: and it came up with some good names that we couldn't think of.

[00:36:10] [SPEAKER_02]: That's an obvious one, but any quick tips that you use in your business?

[00:36:13] [SPEAKER_01]: Yeah, absolutely.

[00:36:15] [SPEAKER_01]: As a business owner, the tip, it's a bit outside of AI, but it's to encourage adoption of AI,

[00:36:21] [SPEAKER_01]: because you may have some employees that have been with you and they're reluctant.

[00:36:26] [SPEAKER_01]: And it's like, hey, AI is not going to replace you.

[00:36:29] [SPEAKER_01]: It's going to enhance you.

[00:36:30] [SPEAKER_01]: Right?

[00:36:31] [SPEAKER_01]: So that and chat GPT is more than enough because you can do a lot of things.

[00:36:36] [SPEAKER_01]: With it.

[00:36:38] [SPEAKER_01]: Other than that, I've stopped taking notes through meetings.

[00:36:43] [SPEAKER_01]: I use the note takers.

[00:36:44] [SPEAKER_01]: That's very useful for graphic design.

[00:36:48] [SPEAKER_01]: Definitely generate stuff and edit stuff.

[00:36:51] [SPEAKER_01]: That was actually my, that's my specialization with an AI.

[00:36:54] [SPEAKER_01]: I built the chat GPT version that creates images and videos and edits them.

[00:37:00] [SPEAKER_04]: Oh, very cool.

[00:37:01] [SPEAKER_04]: So how can people get a hold of you, my friend?

[00:37:03] [SPEAKER_04]: You don't mind, do you?

[00:37:04] [SPEAKER_04]: Do you mind if people reach out?

[00:37:05] [SPEAKER_04]: I don't mind.

[00:37:06] [SPEAKER_04]: I don't mind.

[00:37:07] [SPEAKER_04]: Okay.

[00:37:07] [SPEAKER_04]: So how do they do that?

[00:37:09] [SPEAKER_01]: So I'm on my socials, my personal Instagram is georgeymh.

[00:37:16] [SPEAKER_01]: It's G E O R G Y M H.

[00:37:20] [SPEAKER_01]: My LinkedIn, it can be found by my full name, Georgie Marrero.

[00:37:25] [SPEAKER_01]: That's M A R R E R O.

[00:37:27] [SPEAKER_01]: And then my website, the brand that I use for the real estate is called

[00:37:31] [SPEAKER_01]: Equis Capital, E Q U I S Capital.

[00:37:36] [SPEAKER_01]: And if you Google it, you can find me there.

[00:37:39] [SPEAKER_01]: You can see a little bit more of my story, the deals that I've done, and you can contact me.

[00:37:45] [SPEAKER_01]: I read all the emails that people send me, all the DMs.

[00:37:48] [SPEAKER_04]: Nice.

[00:37:48] [SPEAKER_04]: Thank you, brother.

[00:37:49] [SPEAKER_04]: Well, I really appreciate you coming on and adding some value today.

[00:37:52] [SPEAKER_04]: It was very good conversation.

[00:37:54] [SPEAKER_04]: You definitely added value and it's good to see a man.

[00:37:56] [SPEAKER_04]: And I'm sure I'll see you in the warrior event in September.

[00:37:59] [SPEAKER_04]: Thanks, Georgie.

[00:38:00] [SPEAKER_04]: Yeah.

[00:38:00] [SPEAKER_04]: Thanks, brother.

[00:38:01] [SPEAKER_04]: Nice job.