What we're going to be talking about today, I promised you guys that we would do a case study of some of the deals we've done in the past. When you say we, we mean Dave. When we say we, I mean Dave. Yes. But yeah, these are some really interesting scenarios.
I always threaten to write a book. Other than the book that I am definitely gonna write called How to Have Your Cake and Eat It Too. By the way, Steve, you do know the secret to that, right?
How to have your cake and eat it too? What's the secret? Buy two cakes. Is that all it is? I've never understood that expression because if you have your cake, why can't you eat it?
I never understood it. Well, because if you eat it, then you don't have cake anymore. But it's buy two cakes. You can actually do that. Or eat two cakes.
Well, that would be a different book. How to eat two cakes and not have one. Yeah, this could get exponential, actually.
But let me see if I can. I'm still, now I gotta say, I am still learning the art of Zoom and... screenshots and sharing and all that stuff because here we go.
Ah! I might have it. You guys see it?
Yes, sir. All right. So this is actually a presentation I've done a few times, but I think this will be really good for you guys.
How's everything looking? Looks good. We got...
We got a few people. Excellent. Excellent. Hey, thank you guys for joining us on Friday. And yeah, this one, I promised you guys a case study.
And you already know, you've been here long enough. You know who Dave Day is. But just to give you the full presentation, I wanted to do it just like I did.
This is the presentation I did with Supergroup. And this is the presentation I did with the 500K group as well. And this is an example and this is a case study of how you can take, and it includes private money and relationship money, because without that, a lot of these, most of these deals couldn't have gotten done.
But. Some of them, I should say. But with creative financing and deal structuring and relationship money, that's an incredible one-two punch that'll get you a knockout every time. So with that being said, Steve, shall we start?
Absolutely. Okay. Yeah, that was all the preamble before starting. So who is this Dave Day? Is he the guy that is written up in the Wall Street Journal and that money-grubbing investor out there?
Is he a guy who hangs out with pirates, professional wrestlers, and superstars of all type? Yeah, he's all that, but... More than importantly, he's the guy who puts on his unicorn slippers one foot at a time.
It's important that you know that about me, guys. It's all about, yes, those are my legs, and we're leaving that. So we are, what this is about is we're going to be talking about some of the stuff that we're doing now.
What we've done in the past, like I said, we have threatened to write a book. And if we ever do. These are some of the deals that we're going to include. And some of the stuff we've done and we are doing is multifamily. We deal in bulk transactions.
You know, there's a lot of people out there, you remember back in the good old days when they were talking about bulk REOs and bulk transactions and my grandmother's brother's sister's nephew's uncle knows somebody at Bank of America and so on and so forth. Well, I've actually done some bulk transactions. And so we'll be talking about that. We deal with land and one of my favorite type is where we buy as parts, we sell as whole or vice versa.
We buy as a whole and sell as parts. There's so many ways to structure deals. I was sharing with Steve yesterday, he was trying to get me off the phone, but I was telling stories.
I was in story mode. So about how we took... 18 deals from one student and we bought, we didn't pick and choose, we bought all 18 and we sold all 18 in one month. And the entire purpose was for him to realize that you don't have to pick and choose. Any deal can be a good deal if you look at it.
And so we're going to show you how some of those are. So this is how. We'll start with this one because this one gets a lot of people excited.
How I bought a house for $1,000. And this is the house. It's in the Tampa Bay market.
And I keep seeing Steve smiling over there. So I don't know if he's smiling at my expense. So he hides. That's even worse. But I want to see the chatting going on here.
But yeah, Jonathan, it is similar because it's not the Tampa 3. This is the Tampa 1. And Tampa's been good to me. This is in a town called Brandon. And Brandon, Florida is a suburb of Tampa. And this is the house that we picked up for $1,000. And we turned around and sold it for $224,000.
And so how that worked out, if this actually will let me do this, hmm, my screen seems to have frozen. There we go. Yeah. So this was a house.
And again, public records to the rescue. We have done this. We haven't done marketing and mailing and stuff like that. We get our leads from public records.
And this was a divorce situation where the house was free and clear. It had damage to it. It had had a fire that we found out was actually started by the wife. And she was Actually, she started the fire and then she left. The divorce had given it 50% to her, 50% to the husband.
That's how it showed on the property appraiser. It had code enforcement and it was behind on taxes. So that was the key element and the lien search that we found this under, or the pain point search.
It was regarding a divorce, 50-50, and it was owned by them individually, and it had code enforcement, and it had the taxes. So we went first to the owner, on the husband, because we tried to find the wife. The wife was nowhere to be found.
She had disappeared. We all know skip tracing is good, but it's not perfect. And as a result, by the way, Steve, apparently I can't look at the chat and be able to change this.
So if you see anything of interest, you want to jump in, let me know. So this gentleman was easy to find, but he didn't know what to do because He owns half the house, and who's going to buy half a house? So we let him know, look.
It's understandable and under normal circumstances, you're absolutely right. Who's going to buy half a house? But we own property in the area, not too far from this property.
And we might as well, we will be able to help you out. We're not going to be able to pay you a lot, but we'll give you a thousand bucks. And at least the liens will stop going against you.
And you won't have this over your head. It'll at least be out of your name. He was ecstatic.
So for $1,000, he signed this quick claim deed, which we put into a land trust. So the question is, what do you do with half a house? And the answer is, you can do a lot.
Because if we do nothing, or we can do nothing, and that's the cool thing about it. If we did absolutely nothing, we... still own 50% of this house and we paid $1,000 for it.
If we did nothing and we let it go for taxes, there's something called excess proceeds, where this is a house that's got an ARV of actually over $250,000. And even though it has about $60,000 in renovation to it, someone ought to pick it up for at least $100,000. So if the taxes, let's just say are $10,000, and code enforcement was another $10,000, if we do nothing and just let it go for taxes and someone buys it at the tax deed sale for $100,000, well, the taxes get paid first of $10,000, and then the other to the city for the code enforcement gets paid of $10,000. There's still $80,000 left over. And of that $80,000...
I am owed half because the property is after all the bills are paid on a forced sale any excess proceeds go to the owner which now since we are half owner we now would get $40,000 so $1,000 turned into 40 grand over a few years of just sitting there and doing nothing that's like a CD on crack So we were fine with that. And on the other side, if we do find the wife and we can get her to sign off, we could literally pay 100% of her retail for her half, which let's use that 100,000 number again, 100% retail. We could pay for her 50% or $50,000. And we got the whole house for $51,000.
We've still already made our profits. So there was a no-lose situation. So these partial purchases are an absolute goldmine, which we'll talk about in future conversations as well. And just as a side note, this is a lesson that we learned indirectly from you.
That's going to be a big payday for us. Oh, absolutely. I certainly hope you get paid truck loans.
and then a steak dinner for me. I'll send you a gift card for Outback. Outback.
Thank you so much. Are they still open? But anyways, going back to this.
So we didn't want to leave it at just that. So we decided we'd start looking for the wife. And we started digging through. We skip traced.
We used every one of the skip trace tools that we have at our disposal. We used IDI. We used TLO.
We used Skip Genie. We used all of them. Tracers, Clear. None of the phone numbers were good. And so what do we do?
Well, thank God, public records to the rescue again. In a divorce. There's something called a financial affidavit that you have to fill out.
Both sides have to fill out a financial affidavit. And in the financial affidavit, it usually includes a phone number and an email address to the individual. So we went to the court, we went ahead and got the affidavit, and sure enough, her phone number and her email were there, and neither of those numbers were good. So we're really feeling like we might be screwed. But while we were there, we figured we'll go ahead and get the divorce judgment.
And in the divorce judgment, it did reference... The property, as you can see, 511 Hickory Lane on page two of it. It was between the two parties. On that property, there's the legal.
And if you take a look on page three, we saw some disturbing news, which was that the respondent shall have full possession. Let me see if I can move this out of the way. The respondents shall have exclusive use and possession. Yes. Can you move your camera or whatever the video you're looking at down towards the bottom?
What do you mean? What you see that my pretty face? Yes.
Move that towards the bottom of the. Oh, you actually get to see that stuff. All right. Let me move that over here. In fact, I'll just minimalize it there.
There we go. So there it is. The respondent shall have the exclusive use and possession of the former marital home. The respondent was the wife. She has full use of the marital home and the real property described until her death or until she moves out of said realty, whichever occurs first.
And so when we first read that, we're thinking, crap, she has full use and possession of the home. Did we give away a thousand bucks? But then we read further. Well, I love this, Dave, because you've shared this story with me.
And it's like, okay, yeah, no big deal. But I can see now, as you're reading this, the cold sweats start. It's starting to, yeah. And of course, we've spent more than a thousand bucks on a dinner. But see, we keep going back to food.
But... I want to at least get that dinner if I'm going to spend a thousand bucks. So that got me a little bit right up front. But then we go in and we read further and it says, in the event that she should pre-decease the husband or move from the marital residence, then such residence and real property shall automatically become the sole property of the husband.
And this final judgment. shall operate as full legal conveyance thereof. What that means is we bought the entire house for a thousand bucks.
The entire amount and the entire interest in the property by just looking at the additional documentation showed that we ended up buying the house for a thousand dollars. Not a bad day's work. And so the moral of this story is, if you ever come across, because it's one of the four Ds, divorce, look at that final judgment.
You may be surprised. I've actually picked up houses numerous times from one spouse, and it turned out to be the entire portion. So by looking a little deeper, by getting into the public records and finding it.
This is what we found and we ended up getting it for a thousand. Now what happened afterwards, we decided, you've heard me say, I'm not a fan of rehabbing, but I figured buying a house for a thousand dollars, there's not too many ways I can screw, even I can screw up a deal like that. So I thought, why don't I go ahead and rehab the place? And so I send my contractor, who's also an investor. to go look at the house to give me a quote.
He looks at the house, he says, I want to buy this house. Now I'm thinking I'm going to either fix it up or I'm going to wholesale it for $100,000, $100,000, $510,000. He says, well, I'll tell you what. He goes, he looks.
Actually, I thought I'd do it for $105,000. He looks. and he says, I want to do this house.
Now, I decide I want to play a little hardball. So I said, well, I was going to fix it. So, you know, what are you thinking? He says, it'll take about 60 to fix it like we thought, but I want to do this house.
So I'll tell you what I'm going to do. I'll go ahead. I'll buy the house from you, but you got to give me a really, really good deal.
Okay, but I'll buy it, I'll fix it up, and I'll split the profits with you. I wish I could say I was an incredible negotiator, but this happens to me more often than not. People bring me the deal in that way. He negotiated for me. I'm like, so what's a good number for you?
What's an extremely good number? He says, would you take 90? And so, of course, my answer was, well, I'm looking at it and I'm thinking in my head.
I was going to take $105,000. Would I take $90,000? So I asked him, would you do $95,000?
And his answer was, I knew you were going to do that. Yeah, I was going to do $95,000, but I had to start lower. So I sold it to him for $95,000.
He did end up going over budget, spend another $80,000 on the property instead of $60,000. but then we sold it for 224 000 and we got to split the profits there too so we ended up splitting and getting paid twice i ended up getting paid twice on that deal not a bad day's work well i think it's here so disarming like dave is so friendly he can't it's not gonna beat me up in negotiation it's um what was it i've heard someone like describe A Teflon, no, a velvet hammer. A velvet hammer.
I like it. Actually, someone accused me of taking Prozac before negotiation. He was this contractor.
It was a contractor. And he was just yelling at me. I was like, yeah, but that doesn't matter.
I'm still going to do this. He's like, do you take Prozac before negotiation? I was like, I didn't even know this was a negotiation. You were just yelling at me.
But oh, well. So his nickname was the Mad Russian, by the way. So all right, let's see if this will move. Why does this do that?
All right. So next slide is going on. It's Carmen for all the times you made fun of me about my Zoom skills.
That might be it. There we go. So buy as a whole and sell as parts. So this is a deal in Jacksonville we did.
That might be it, by the way, Steve. So I'll apologize in advance if it'll help me get through the module. So this is a complex.
It was a set of eight. Quadraplexes that we got for $800,000. That's not a bad deal.
That's about 25 a door. So we get the property for $800,000 because the owner, this one we actually got, we didn't get through public records. This was a deal where Marcus and Milichap, I had bought a different complex, an 18 unit complex. from this realtor and so he brought it to me as a pocket listing.
The owners had owned it for years and years. They were tired of it. It was a somewhat not well managed and such because they've dealt with it for years. But it was eight quadruplexes all on one parcel and just one parcel ID. So we went ahead and we bought the property and as you can see from the aerial there was room to be able to separate them out and there was access to each of the properties based on the situation.
So we bought it for the $800,000 and then we broke it up and all it took and this is the thing I don't I'm not a rehabber. except for paper. I fix paper.
And so what we did is we actually got surveys on each of the property. And what you're going to have to do to determine this is you're going to have to find out what the process is in regards to your county. As to whether they're going to require you to go through hearings and specific guidelines and such.
But in this situation in Jacksonville. All we had to do was take that property, split it up by survey. We got eight surveys done, and then we took the surveys to the property appraiser and applied for eight different parcel IDs based on the legal descriptions we provided to the property appraiser. They gave us eight different parcels.
And we were able to sell those properties, all eight, for $200,000 each. And we literally turned $800,000 into a $1.6. And it took us, I want to say, all of less than six months to do. And yes, we used private money to buy it. by the property.
Only 100% ROI and less than that after you subtract the surveys. There is that. Actually, that was the only, well, it was almost exponential because of that $800,000, I think we brought $50,000 for the down payment.
whatever the cost of the surveys. You're right. A little bit of debt service, but still, actually well over 100% ROI.
Not a bad day's work. Spelled D-E-Y, by the way. The other side of the coin, instead of just buying the whole and selling the parts, We buy the parts and sell the whole sometimes.
This was a complex and this is again where you dig a little bit deeper and it's all public record. This is what it's the beauty of it. This was a 24 unit condo complex in Tampa again of all places and this complex had gone through the bust and The owners all were getting foreclosed out, banks ended up with pieces, and they ended up going to tax deed sale.
And this group out of New York, I think it is, if I remember correctly, bought 18 of the 24 condos in there and thought they were going to just make a million dollars on the place. And they bought the 18. And they were going to try and sell it for a truckload of money. We put it under contract.
We wanted to, and by the way, the lead source on this was code enforcement tax delinquent on this one. And it was corporate owned. Corporate owned tax delinquent code enforcement.
And we knew that they were out of state since they were from New York. So we ended up, we started, they wanted to start us first at something like 500,000. We put it under contract at that number.
But the more we saw, the more we realized that the numbers were absolutely ridiculous. And so we decided instead of going with the two, with the five. With the $500,000, we would take the property and we would actually take care of all of the issues, the liens, the encumbrances, and we would get them. They'd have to pay the taxes and stuff, but we'd get them about $290,000, as you can see here. When we dug a little deeper, when the title actually came back on the property, Because we knew we could get the liens reduced, the code enforcement liens.
But when we got the code, when we got the title report back, that was the least of our problems. The biggest problem was that the mortgage, there had been a blanket mortgage on the 18 units. And it was with the FDIC.
And the FDIC had been served for the tax deed sale, but it turned out, because they were the ones showing up on record, but it turned out they had assigned... The mortgage to another entity, maybe a week or two before they got served regarding the tax deeds. So the entity, the new entity, had never been served. Therefore, they still had a lien on the property of over a million bucks. And so now they're really, really screwed.
And actually, frankly, we thought we were kind of screwed too. But I started digging, again, public records to the rescue. Egger, E-D-G-E-R, is the public records resource to look into any of these funds and banks where their records are.
concerning how they structure their deals and how they structure their fundraising and so on and so forth. And that's all public record. And so I went into the report for this new entity. I don't remember their name off the top of my head.
But when we dug in, somewhere around page 300 of the entire agreement, and no... I didn't read through all of it. I just went through the titles to see if they applied.
But somewhere around page 300 of the document, it showed that 51% of the entity was owned by the FDIC. And so what that meant to us. was since the FDIC had been served, they actually, the principal of this entity was served. Now, this is the information.
It's not public as in public knowledge. It's public record and it's public information, but it's not public knowledge. And if I'm going to do the digging, I want to know, I want to make the money for it. So I went back to the people. And I said, look, can you solve this problem?
No, they couldn't. Well, in that case, we'll go ahead and give you for a quick claim. And we'll just, we'll take over all the issues. And we'll give you instead of the 290, we'll go ahead and give you 150. They were more than happy to. We had like a no brainer for them.
It was still a no brainer for them. Exactly. And then all we had to do was provide the documentation to the title underwriter.
And they did underwrite us. And we ended up selling the property for $884,000. Not a bad day's work.
So the million dollar whatever, was it? was basically you could get rid of it because you had already somebody had already served fdic yes and because fdic was the principal they were notified so they could be removed exactly it was just an exception i i didn't have to go through i'd love to say i did some huge negotiating and stuff like that but the truth is again all i did was find what was already there And it was, and that's the magic of public records. You would be surprised at what is all there available at your fingertips. And it turns into dollars, as you can see.
Each of these six-figure deals and then some. That was the end result of our work. Not too shabby, subtract from that the $150,000 and some additional closing costs.
Oh, this also is very important. We had code enforcement. And as you can see, it wasn't a small amount.
Each of the units was running at $20,000. 126, 491, 167 if you look at the far right corner. 117, 100, 19, 25, 25, so on and so forth.
Working with the code enforcement, we were able to get them to reduce each of the units down to 2,000 per unit. Outrageous. That's a short sale.
That's a short sale. It was over $2 million, reduced down to a total of $46,000. We ended up being all in on the property somewhere in the $250,000 range, including taxes, including liens, and including the code enforcement.
Was that a specific strategy or did they just roll over when they heard Dave? No, just remember when it comes to code enforcement, code enforcement is not a collection agency. Code enforcement is a problem solving agency. They are in the business of clearing the actual violation. And if they do that, then they're willing to work with you.
If you can prove yourself to be a problem solver, if you can prove yourself to being able to solve their problem. And guys, one of the things, it'll be very interesting for you to realize, they take their jobs personally. You'd be surprised. They consider the homeowner jerks for leaving the grass so high.
And they get mad at these situations. They get emotional about it. This is their job.
And so when you can come in, and we have two different approaches we take for these. We either go with just the investor that comes in and is willing to work with them and solve these problems. And here's our track record. For. We go with, we found out that there is a segment of the population that code enforcement and frankly all municipalities almost always roll over and show you their bellies.
And Steve, you know this. It's nonprofits. And we have used Working with and the magic word.
Now you guys took it a step further, Steve. I'm actually going to talk about this when you're done. Okay.
Yeah. You actually started one. We do something.
We use the magic words of with and not for. I work with North American Youth Foundation. They're a faith-based nonprofit that works with at-risk youth and their households. providing low-income housing and various programs to help them stay out of the system.
Now that sounds pretty good. I and I'm not lying I work with them. I don't work for them. I work with them and how I do that it was actually my old partner that started that nonprofit and he absolutely does that and if I use his name and use his company To help get a deal done, I give them a referral fee or a tithe or something along those lines to be able to apply to the nonprofit.
And in so doing, I work with them. So that is a wonderful tool to be able to use. We've gotten reductions on code liens. We've gotten utility liens reduced. We have gotten information, water shutoffs, things like that, things that we've discussed in the past, information that they wouldn't give to a money-grubbing investor, but to a nonprofit.
Oh, absolutely. Well, Dave's already non-threatening, and now Dave works with a nonprofit. Just what do you want, Dave?
I'll just give it to you. It works. It works. So Steve, what were you going to say about the nonprofit? Well, I took your idea as far as nonprofit, and this is what I was saying before many, many, or a couple of months ago now, what I was saying and talking to Dave, I created a position to just do what Dave talked about.
And so if you guys watch the bonus video inside the Disruptor Blueprint, you know, modules, there's a section in there where I talk about how Max and I actually started a nonprofit. And so... As of last week, we are officially, so there's an update, we are officially in the rotation. So when a homeowner cannot pay their utility bills, we are one of the phone numbers that is given to the homeowner. It says, call this company, they will pay your utility bills.
That's a good idea. And so now, they're going to call us, and they're going to say, hey. This is our situation. We're going to talk to them.
We're going to qualify them and say, hey, this is what we'll do. We're happy to pay you for it. We're happy to pay this month's utility, right?
If someone falls behind, got no problems, happy to help, pay one time. If they need a second month, like what's going on here? What, you know, we're going to figure out if they need help. And we're saying, look, one of the things that we do.
Italy Buy Houses, now the nonprofit, it's another company. But this is just, now they're coming to us. We're not finding, we're not begging the city for the water shutoffs.
As a matter of fact, the reason why we created this nonprofit was that we kept asking for this. Like, no, we will not give it to you money grabbers, right? And so what has to happen?
And they're like, we only work with nonprofits. So it's like, I just want to make sure I get this right. If a nonprofit called, you would work with them, said we would work with them.
I said, got it. Kristen, start a nonprofit company for us. She did. I love it.
We actually did a, we went to code enforcement and the water company, the utility company up in Virginia. You know, Todd, Todd. Todd Miller, right? Yeah, he's in our super group.
Yeah, exactly. He hired me to come up there to help him out with getting this access. So we contacted him. Well, he tried the water shutoff just with FOIA and stuff, and of course they fought him tooth and nail.
I went in there, North American Youth Foundation, so on and so forth. This is what they did. They said, okay, so... We actually have a list of blighted properties that we use water shut off and we use code enforcement, we use our various resources to put together.
Would you like that list? I suppose. If you must, exactly.
So these are the things that's a magical tool using nonprofits to be able to make a profit. Yeah, we'll actually talk about that too. And Kenny's asking about the rotation, how big rotation.
I think there's three or four other companies. So it's pretty small rotation. Setting up the nonprofit, we hired a law firm.
Well, Kristen contacted a law firm. I paid the bill yesterday. Apparently we were several months delinquent. We just didn't know. Don't check my emails.
So it was chaos. So $1,980.50 to start the nonprofit for the law firm. We did require to have insurance for a nonprofit to be on the rotation. I don't understand it, but whatever. So it's $2,000 a year to be insured as a nonprofit.
Love it. Yeah. I don't know, Kenny. I don't know what we're insured for.
I have no idea. There's no E&O. Like no one's going to come after us for God knows what, but they said you needed to be insured.
We said, what kind of insurance do you need? They gave it to us. We gave it to insurance company and then we were insured. They want to make sure you don't, they want to ensure that you're not making a profit. Pretty much.
So again, and one of the things I want you guys to always look for, because even a Tampa three. Even a Tampa 1, for that matter, still spends quick. Okay, so a deal as good as that is great, but it doesn't excite me as much as when I find a system.
When I can figure a way to rinse and repeat and do it all over again, over and over. And so the secrets to that are the way you build a system is either on the buyer's side, the seller's side, or the money, okay? This is where we took the system finding a buyer. And of course, we all know between 12 and 14, actually, yeah, around 12 and 14, the hedge funds were coming through all of America and just buying up a storm.
So what we did is we presented ourselves. We actually went into public records. We found out who the funds were. And of course, you had the Blackstones and the colonies and the U.S. homes for rent.
and so on and so forth, all these groups. And they were the big sharks in the water. And they were the feeding frenzy.
They weren't just big sharks. They took all the water. What's that?
They weren't just big sharks. They took all the water. Oh, they did.
There was nothing left for little guys like us. And that was actually where the fun came in because that's exactly what would happen. Those guys would take everything. And try and work with them. You know, you could bring them 100 deals a month, and you'd still be just a spoke in their wheel.
And there's the ice cream truck. But so what do you do when something like that happens? Well, we went in and we started looking for the smaller funds.
These were the ones that look like, well... just a small fund, 20 to 40 to 50 million dollars. These were the guys that they were trying to play, like you said, in the deep water with these sharks, but they just couldn't.
So they were adjusting their criteria. They were doing whatever they could to try and get a few deals in the pipeline. So we started going.
We used the public records. We'd find the ones that did pick up one or two or a few properties still way under what they needed, but we found them and they were real buyers. Then we would follow them using Secretary of State, using Edgar, using whatever tools we need to public records wise to locate home base. And in doing so, we would find out who handled their Florida purchases. And we presented ourselves as a boutique provider of properties.
And this was a letter we would send out saying that if you're currently reading this offering, you're most likely one of the institutional investors, hedge funds, or REITs that are currently buying investment properties in the Florida market. The good news is you're investing in one of the most lucrative markets in the world during one of the most unique and beneficial times. to be doing it and then going through the rest of it. We went through and we presented it as a sales letter. Then we provided Home Equity Management Corp. and the other three companies that we worked with to provide these properties.
And we presented ourselves being able to provide off-market deals. provide assistance with rehab management and financing for you and your buyers and full service models. And when we did, these guys were like, yeah, send us what you can.
Let's work it out. They presented us with whoever their Florida market representative was. And then our job was to provide it for them.
And over the course of 12 months, we sold. bought and sold, assigned, in most cases, over 350 houses by doing that process. So we found the buyer in that situation. We got their specific criteria, and then we went to town.
And how did we get these houses? Any doggone way we could. We worked with wholesalers. We worked with individual owners. We worked with banks.
We did whatever we needed to to get them because they would tell us, actually, we got to a point with several of these funds that we literally... They would say, we need 30 homes this month. Fine, that's our job.
We get them 30 homes. We need 45 homes this month. These were the ways we did it. And it wasn't just one-offs and they get to pick and choose. We would actually provide them the property.
We would take it to their contractor, their approved contractor, get the repair budget. We take it to their approved property manager, get their numbers, and we would hand it to the representative on a silver platter, and all they had to do was get them approved. Actually, it wasn't even getting them approved because they had given us their criteria. These were approved. They'd plug in and we'd be done.
So this is a system that By finding the right buyers, look for those institutional buyers, and maybe you're not going to do 350, but find the guy who wants to buy five houses, 10 houses a month. You're still going to get to an incredible number by doing that. And that's exactly what we did.
Go ahead. Max and I actually, yesterday morning, had a meeting with somebody. who's looking to be another investor trying to buy aggressively in the phoenix market so they're out there and they approach us randomly but they're out there and they approach you our approach is to go to them we actually reach out to them we and and we impress them on the fact that we found them using public records we found the right person to talk to and and we we present ourselves as a you business that provides.
And I know a lot of you guys are one-man operations. That doesn't mean you can't present yourself as a full-fledged business. We work out of our home. Doesn't mean we can't present ourselves as a full-fledged business. So that is the key elements to being able to take and find a buyer and build your system around the buyer.
So this is one of my favorite presentations and I'm going to stop on this one today. We may actually have to make this a two-parter. Steve, what do you think?
Shall we make this a two-parter? We're coming up on an hour, so you're saying make this two different modules? Yeah.
Yeah, we're coming up on an hour. I don't know how everyone's mental stamina is. We'll go ahead and make this the last stop because this is a fun one. Okay, before you move on, so Jonathan wants to know, are these companies not shielded by trust or anonymity in public records?
In most cases, no. These institutional buyers, now, of course, there are for everyone that's out there like this. There's plenty of them that are using trusts and different things like that. And we're not trying to get to who the exact owner is.
So if they're a Delaware corporation, who cares? We're not worried about that. What we're trying to find out is where they're based, where home office is, and then get to who their representative in your area is. because they do have a process that they have to go through to get to your area.
And there's always someone who runs that area for the main company. So that's the secret. You go to the main company. You get to the acquisitions department. You find out who handles your territory.
And then you approach them through. as a referral. And that's the other beautiful thing. Because when you started at home office, they may just say, go talk to this person.
But you get the name of the acquisitions department person that referred you. And now you get to call John Smith and say, hey, Steve over at home office. told me to give you a call that sounds a whole lot better than hey i'm just trying to reach out that's a that's a just a magical the power of of referral is one of the most absolute powerful tools that you can use to to build instant credibility um mo was asking are you still using celebration for most of your closings you No, actually, now we're working with a trustee out of Tampa.
But we still know, I mean, Antonio is a good associate of ours still. He just, he's gotten too big to do the trustee service. The website Edgar, Eddie was asking about that. What is it?
How do you, how do they find that website? If you look up, actually, you can Google Edgar. And SEC. And you should be able to get it.
Okay. And this last question is for me. I've noticed that a lot of your documents say financial services, FinServ, or finance solutions.
Yes. Why? Because a name means everything.
Okay. We're going to, one of the things we'll do on the next module after this one is what we got written up in the Wall Street Journal for. And that's our...
are in what we call disaster mitigation investing. So for that company, we don't call ourselves house buying solutions or home buyers and this and that. We call ourselves neighborhood restoration services. Why?
Because there is everything to do with a name, okay? With us, we did a D&J Finance Solutions, Max. Value Financial Services.
Why? It sounds like a financial services company. We've been able to use that working with banks doing short sales. We've been able to use that with trustees at bankruptcies.
They give us information just, hey, I'm calling with Max Value Financial Services and I'm actually trying to talk. I need to speak to the trustee regarding John Smith's bankruptcy. We're wanting to deal with him, and we need to find out when the bankruptcy is going to be over. They assume that we're one of the creditors, or we're going to be providing them a loan afterwards.
We're not a house buyer as far as they're concerned. So I've got some bad news for Max. We're going to have to trash Max Cash Offers. Max value, max financial services.
Yeah. That doesn't sound as good. Well, you can still use a max in that.
That was it. That's all the questions so far. Yeah, no, but that is why you see online all the time.
I don't put house filing services. I always do financial solutions, financial services, and such. Even if Walter's son, you remember me talking about Walter Ritter, my mentor.
By the way, he asked me, and I'm going to ask you, if he'd be allowed to come into the group. And I said, I'll talk to you about it. So we'll talk about it. Remind me after this. Remember, control TS.
Absolutely. But we actually helped him create his. His company name, he's a broker, so Riddle Realty and Property Solutions.
So it's not limited to a house buying. When you do a name like that, you limit yourself to one solution. But if you can go with financial solutions, property solutions, services, it really does make a difference. So hopefully that answers the question.
It does. I think it's a little nugget that you just took for granted. Oh, there you go.
I hope that helps. So this one is a bulk transaction. I call it the cream of the crap or one man's trash is another man's trash.
He can make money off of. So this is a street in Lakeland, Florida called Chestnut Woods. And that first...
Property on the left, if you take a look, that was a triplex. And this was a cul-de-sac in one of the not-so-great areas of town. This is a cul-de-sac of only multifamilies. And this is an area of town you don't want to necessarily go down to the end of the cul-de-sac at nighttime or anything like that because it just is an issue in regards to that.
So we, but there's deals everywhere and we went ahead and we picked up that triplex for $10,000. and we flipped it for 30. So we made a $20,000 profit. Great deal. I figured let me go ahead and do a virtual driving for dollars using the property appraiser mapping GIS services. And so I just went because it's only one street and it's a cul-de-sac.
So I went down each owner and I could see. when we got to the place that there were boards on the windows on several of the places. So I figured there was probably a good chance that there were distressed properties on this street. Well, frankly, the first one we came to was one of them. So we go ahead and we start, I start digging through on the property map GIS and I just go property to property because there's only a few of them on that street.
And by the time I get, I'd say six or seven down, I came across this property. And there's the mapping. You could literally click on each one. You see who the owner is, how much they paid, how long they were.
And all of them are multifamily. They're all duplexes to fourplexes. So I got to this one and it is owned by a company. called TTLREO, number two.
That's what it was. TTLREO. And they had bought, and then it turned out to TTLAO. And what this was, was this was a tax lien buyer. These guys were a company that buy tax liens.
They buy these liens for... whatever the taxes are, and they let it sit for a certain amount of time. And then they go ahead and they, whatever the process is, they go ahead and set it up for tax deed foreclosure. And if it gets, if it gets released, one of two things happens.
Either the taxes get paid and they get an 18% return on their investments, or they go ahead And they foreclose and they end up with the property, which frankly, dealing with many tax lien buyers, most of them do not want the property. And that was the case with this group. They didn't want the property. And this property was sitting behind. It was behind on taxes.
It had code enforcement. It was it's been vacant for years. And one of the other things I know. And by the way, if you see.
around 514 and 614. 514 is when they bought the property at a tax deed sale. They had bought the lien. They had foreclosed.
They had gotten it for $4,900. They turned around and quick claimed it to their own company, TTL REO. So I reach out to them because I know.
that many of these larger tax lien buyers don't even know what they have. So you don't tell them, hey, you got a duplex here. This was a duplex, by the way. You've got a duplex here because they may see dollars. Instead, I called, I looked them up, went through the Secretary of State, went through, found out off of the mailing, right off of the property address, where they're based out of, looked them up, contacted them, got into the...
The connection turned out they were a fund out of California and they're a hundred million dollar fund. They're actually in the medical field and they went ahead and because they are in the medical field and such and they they're raising and they need to make money for their for their clients they said they invest in these tax liens. and they're the largest tax lien company in Florida. So what do we do? We contact them.
We ask them, hey. We own property not too far from your property on Chestnut Woods, and we were wondering if you ever thought about selling. And they're like, sure.
What are you offering? I think I'm swinging for the fences. I say, would you take $5,000?
They respond without a blink. It's like, would you do $5,500? So even I'm victim to the negotiation part, $5,500. And I said, you know what? Let me talk to my associate.
Let me go ahead and see. I didn't want to seem too anxious. Let me see what I can do, and I'll call you right back.
So I hang up. I do my happy dance. I talk to my brother and say, hey, we're getting a duplex for $5,500. And then of course, when you got a deal, what are the two questions you want to ask?
What else you got? And of course, what are you going to do with the money? Now in this situation, we can't ask what are you going to do with the money?
They're not going to be private lenders, but they are going to be, they hopefully have more properties. So we start digging. I just go into the county and I say, I see, sure enough.
They have maybe five or six more in the county, and they have one additional property on the same street. They actually had gotten this other property. Let me see if it'll come up. Yep, there it is.
What else you got? This was the property right next door, actually across the street, that they had. paid $5,100 for.
So I asked him, look, I call him back. I said, sure, I'll do $5,500 for that property. Would it be okay? I noticed you have another one on the same street. Would it be okay if I send you another $5,500 and we'll just get them both?
He checked with his boss. He comes back to me and says, sure. Send us $11,000 and we'll send you the quick claim deeds. Yes, we send them the cash.
We actually wired them the money or actually in this case, we send them the cashier's check and the two quick claim deeds. This is how business is done with these guys, with tax lien guys. We don't try and start closings.
We don't do any of that stuff. It's just deeds for dollars. That's where we learn deeds for dollars.
So we went ahead. Sent him the two deeds. They sent them back to us. The first one was in really, really rough shape. The one that we got for $5,500, the one we called on initially.
We sold it to the first gentleman for $14,000. $14,000. You notice what he did a few years later.
But, yeah. We sold it to him for 14 grand. He had to do all the rehab on the property and such.
And we're already in the green because we paid 11. We're already three grand in the green. This one needed a lot of work. The second one didn't have any code enforcement. I haven't looked at either of them yet, but it didn't have any code enforcement, whereas this one had a truck look.
And we sold it to him subject. to all the liens, encumbrances, just give us 14 years your deed. The second one doesn't have any code enforcement.
So I figured, you know what, maybe I ought to go look at this property before we do anything else that we just bought. I go and I drive down that street and I look at the property. It looks in pretty good shape. In fact, the ACs are out there and one of the ACs is running. And the lights are on.
So I go ahead and I knock on the door. The guy comes to the door and says, who are you? I said, well I'm the new owner of this place. He says, thank God.
I've been looking for someone to pay my rent to. They lost, gone to taxes. I didn't know who to pay.
Can I pay you? I was like, what's your rent? He says $5.50 a month.
I said, sure, you can pay me, absolutely. And so we started getting $5.50 a month for the darn thing. And I turned around and ended up selling it to the same guy, Rex Renovation, for $36,000. So on $11,000, I made $50,000. Not bad, right?
But again, that wouldn't necessarily make it into the book. But again, now that we got two deals. We got them happy with us.
What's the magic words? What else you got? So I looked in and sure enough, they did have more around.
And so I said to the gentleman, I said, okay, you see, we actually do what we say we will do. If I find any other properties of yours throughout the counties, would it be okay if I make some offers? He says, I'll do you one better. I'll just send you the list.
He sends me the list and it's 189 properties. There's 189 properties. Now they have bought thousands of liens across the state.
Turns out they're the largest tax lien buyer in the state of Florida. And so they just have bought up. a storm and they're doing their stuff and they're not in it for the property. All they want is their return on those liens and 80 to 90 percent of the time it works.
They start the foreclosure process, they get paid off or it goes to tax deed sale and they get paid off there and they get all their money. That works 80 to 90 percent of the time. But that 10 to 20% of the time, they ended up with the property.
And like I said, that's the cream of the crap because that is the stuff nobody bid on. So they didn't even have any system in place to deal with those. And so these properties are sitting on there, they're getting code enforcement liens, they're falling into back taxes, so on and so forth. It's funny that they have this strategy of just getting the entrance because most investors hope that you can't catch up so they can get the property.
Exactly. Lean buyers don't want the property. They just want their return on investment. And so that's what these guys wanted. So what do we do?
We're going to go ahead and we'll make an offer. that's exactly what we did. We put a contract on all 189 properties. And of course, the magic is in the words. The magic is in the details.
So what do we do? We put a deposit on the property, $10,000, which stays with our attorney. by the way so that never got touched and then we we required a 90-day due diligence uh so on and so forth here's the the special clauses buyer has 60 days to complete due diligence prior to deposit becoming non-refundable after due diligence is completed buyer will provide seller with final numbers for each property.
So this is still our due diligence frame to even come up with a number. After seller has received final purchase numbers, seller will have the choice of either accepting the final purchase numbers and will proceed with the sale or seller may choose to enter into joint venture agreement with the buyer to sell the properties on behalf of the seller at full price per property. as listed on Exhibit A. Exhibit A was the list of properties they sent us.
Buyer may purchase individual properties during the entire contract time frame at full price listed on Exhibit A. In other words, we get to cherry pick. Buyer will have exclusive rights to purchase, market, and sell all properties listed in Exhibit A during the entire contract time. frame should any third-party contract seller contact seller during the contract time frame regarding subject property listed seller will immediately refer to said third party said third party to a buyer for further information in other words we became their exclusive And both buyers and sellers agree to eliminate the need for blah blah blah and take property subject to all needs and encumbrances. That works, by the way.
Remember, a contract is whatever you guys agree to. Number one, legal, ethical, and moral. Win-win situations. And number two, your imagination, wherever it takes you, as long as it is legal, ethical, and moral. I'm looking at this, Dave, and if I didn't know you, I would call you a liar.
This is so outrageous. Wait, it gets better. Here's the list.
And in this list, this is what their full price is. If you take a look. It's what they've got into each property. This is what they've got into each property.
If you look at the top one at $69,000, that's a gas station in Oak Hill, Florida. 123 North US Highway is the actual address. We'll talk about a story.
I learned what shrimp smells like after being left out of a fridge for years. Um, there's, there's all sorts. This was the average they got.
There was lots in here. There was houses in here. There was a gas station in here.
There was a school in there. There was apartments in there. It was just ridiculous.
And this was the average that they had. And this is what they wanted out of this. The list goes on and on.
and on. So by taking that, and what have we spent? $10,000.
Actually, we didn't spend that because it's in escrow. So what do we do now that we got a contract on 189 properties? We go to town and we look at every single one of them. We went to town selling each of them. We went on a state run, driving and looking at every single property in every single county.
Our record for looking at houses in one single day is 42. We'd go to every property on the list. We'd go in, we'd break in because we had permission, we got authorization to enter and all that. We'd change the locks, we'd inspect the property, take pictures, and then we would put a bandit sign in the front yard with a purchase price, with contact, so on and so forth, knock on the neighbor's doors. See if they know someone who wants to buy a house.
And we had a very scientific number for our purchase price, whatever the heck we felt like at the time. So here's an example. We put it on Craigslist.
We put it on back then they had Backpage. We put it on all sorts of different things. And these are the. These are the ads we put in.
We talked to wholesalers, so on and so forth. One of the deals I still remember, we sold two duplexes for $20,000. Our price was six grand, so it didn't matter to us.
These were the deals. And this was an actual house, 3,013 square feet, selling for $15,000. Quick claim deed.
Chris is asking how long ago was this? 17. 2017? Yes. Wow. Not 1917. And then Jonathan wants to know how can he find the cream of the crap in Houston?
We'll talk about that in a minute. Let me go and finish the story here. But yeah, and by the way, with these, we have owner financing options available.
We have hundreds of houses like this, you know, go on through. We have all sorts of things that we put down. We'll come back to that one in just a second.
So we went and we sold all 189 properties. We sold them off one at a time. Then we found out these guys don't want it to be one at a time.
They want it to be in chunks. So we started selling packages of these. And of course, when we sell packages, we'd include a couple for us into the package because we'd buy, we'd just combine the prices. And they were willing to even take losses on the numbers just so they could get them out in larger chunks.
Remember, this is a $100 million fund. This is like a pimple on the back of their pimple. They just wanted.
the leans and the junk out of their hands. That was more the issue for these people. And so we started going ahead and doing packages.
And we finished up with the package with the 189. We sold over 100 one at a time. Then we started doing smaller packages of 5, 10 and such. And the last batch we sold for $200,000 in our final price for the last was $100,000. So we made $100,000 on that one.
The average profit we made on each house was $7,000. I'm $189,000. I guess that's okay.
Exactly. And they liked it so much, what do we ask? Can we do it again? And sure enough. They sent us another package and we wholesaled that package to another guy and the other guy, and here's the magic of it, the other guy who was an attorney found a buyer and sold it to him.
We got the package at $200,000. We sold it to him for, I want to say, $450,000, $500,000. He assigned it for a million. or 1.1 I take it back. So he made a bigger hit than we did, but we still weren't too shabby because we ended up getting the whole thing making, you know, three, $400,000 on the second time around.
So $10,000 made us over a million bucks on this deal. So again, now what's the moral of this story? It's again, the system. What did I say?
I want to build a system. This wasn't a one day, one stop, and I'm done and I move on to the next. I had a seller that was willing to continue to sell and sell and sell. And we became their exclusive on this. and they actually provided us other batches and they've gotten smarter now and they've taken it on themselves but you get the point.
This is a system, the first one with the hedge funds we found a buyer and we built our system around the one buyer or the one set of buyers. This one we found a seller. And we built our system around the seller.
And so the other is the money. And we do, that's where actually private money wholesaling and the way to use money as the deal system builder is also another thing. We'll have to get onto that another time.
But that was the number. And of that, that was half of it was ours. Not too shabby. Not bad for a day's work. Yeah.
And I mean, that was on top of what we were already doing for the year and other deals and stuff. So that was just another income stream. That's what we do. I'm going to pause here because we're at 430. We're at an hour and a half.
And we can do some questions. Yeah. So Jonathan's question was, how does he do this in Houston?
And I think my follow-up question is, how do I do this in Phoenix? So again, the key to this is, and I'm trying to see if I can open up the chat, the key to this is pain points. It's still, I don't care if it's a hedge fund or this or that.
Now, public records, find out who the, who the liens, there it is. We find out who the lien buyers are. You go to the tax, you said it before, Steve, and I appreciated that. It's not so much that this is difficult. It's just I ask better questions.
And that's what it is. When I look at the tax delinquent list, what do most people look at? Oh, here's the house on the tax delinquent list. I want to know who bought the tax lien.
Because that could be a system in and of itself. I want to know who, you know, who's the liens on it. I want to, and each time when I'm looking at any of these types of deals, I'm actually looking to see which ones could be redone over and over again. That's how we figured out equity trust for a mortgage. I found the mortgage and I was like, wait a minute.
If Equity Trust was the trustee on this mortgage, who else, and John Smith Moneybags was the beneficiary, who else is Equity Trust the trustee, the self-directed custodian for when I look up their name? So the same thing applies here with the taxes. I want to see who bought the lien, and then I want to see how often that happens.
And then I want to see how often they end up with a property. And by doing that, now we found our next ETL. So it's really easy. It really is.
You just got to find whoever's buying at the tax sale. Well, that's the buyer. And that could be another buyer.
But who's buying the lien that's foreclosing at the tax sale? Ah, got it. So it wasn't as easy as I thought.
It wasn't that far. It wasn't that far, though. Yeah.
Yeah. So what's the difference, Jonathan wants to know? And here's the questions.
So depending on the county, and I guess maybe the state, but depending on wherever it is, there is an opportunity to, in some states and some counties, You can buy the lien from the county. Yeah. In some states, the county is the only one that can do the foreclosure and can do it.
So if you're in one of those states, this won't work, unfortunately. You'll have to figure out a different approach. And you can still find out what's going on with the state and with the county, whoever owns the liens, and you can. figure out how to work out your deal. And it can still be a pain point, but.
You have to see if your county allows someone to buy the tax leave. So what we're saying here is... Yes, you can always invest in another state. Go ahead. TTL is buying...
So they're not paying their property taxes. TTL is buying, is bidding on those, at least in our market. We bid on the tax to get the tax current.
And then we're the mortgage or the lien holder now on the property taxes. So TTL is buying those and then they're foreclosing on it. And then these are the ones that no one bought at the tax foreclosure. Exactly.
And they ended up with the property. So the next question is why the heck was no one buying at the tax foreclosure? But that's another story.
That's a whole nother story. You never know. It could have been, you know, that, well, again, it is the cream of the crop.
we're not saying these were great looking properties the average home we sold for 15 17 12 000 yeah i guess you're right this is really is the cream of the crop the cream of the crop that was a great title wasn't it it was it was but yeah so that that's again any deal can be good if you look at it the right way And in each of these situations, it's an awesome opportunity to make money. I still have some of those that I kept and are cash flowing. Chris was asking for a picture of your slide in your presentation of the yacht.
Oh, no yacht, no yacht. I actually did look at one at one point, and it's not a negative. It's just a nice little 42-footer.
Yeah, there's this yacht I see every once in a while when I go to San Diego, because it's always parked in the same spot. It's only $25 million. You know, it's one of those that I think the helicopter conveys.
Oh, one of those. I love them. One of those, yeah. Yeah, I'd be a little bit concerned about that. Oxymoron, yes.
I was messing there. Honestly, it wasn't for a, it was an older one. And it was for sale for like $300,000 and $400,000. It could actually be something you could live on. So that was why we even considered it.
When I was talking about the 25 mil, that was the fix and flip price. It needed to be reupholstered. Oh, you have to reupholster it. I'll give you $10,000.
All right, guys, any other questions before we wrap up? I know we had a lot of, a lot of, and we're about halfway through. So that's why I didn't think, I think we ought to be, do that.
Are we still finding these opportunities? Every week we have on the call. In fact, you want to bring Leo on? Yeah, let's bring Leo on. This is an example of what's going on right this second.
Leo, you're on the show. Leo? Hello. Maybe his stage fright because he didn't know we were going to pop him on.
I was just trying to put the camera on. Leo, how are you doing, buddy? Great, guys.
Great, great. How are you? Ah, beautiful day in paradise.
Yes, sir. This is Leo. And if any of you don't, if you recognize him, guess why? He was on, yes, he's a sub-two superstar.
That's exactly right. He was on Pace's 24-hour, 25-hour, exactly. He was on with Pace.
And what was he talking about? He had an opportunity where he could buy this. property in the same garage office that, Hey, he works out of his garage, which is awesome.
You see that, that huge backyard in the background. I love it. One of these days, I'll walk around my house for you guys too.
But, but he had a property that he put under contract and he was talking with Pace and I think it was Jeff Rappaport. That was on at the time? Correct. And Pace mentioned that he had a property under contract that was a commercial property that has over a couple million dollars in airplane parts.
That's correct. Exactly. Yeah, there you go. Jory's on here. Exactly.
And so what do I do? I text him, I message him while they're doing the thing. And I say, hey, Leo, first you got to give first shot to Jeff because Pace offered it to Jeff.
But if you don't end up dealing with Jeff, give me a holler. I'd be very interested. And I get a message back, Leo, what did you say? Well, I mean, I, so I actually, because you immediately contacted me, I knew, I knew who you were. I've done some research on you and stuff.
I mean, it's like huge, right? And not, I wanted to be in this mentorship, actually. And I was just had so many things going on. So what happened was I called you.
I said, Hey, Dave, how you doing? This is Leo. I'm glad you reached out.
I said, and I guess I, you see me on the live. And you said yes, and you told me basically, hey, Leo, I understand you're working with possibly Jeff. By all means, go work with him first, but I just wanted to let you know that money is not an issue.
And if he's not able to help you to any extent, and if he is, and if you still need some help, I'm here for you. And so, of course, I told you in total respect that, you know, I admired that by you because, you know, you're a straight up guy and that's just the way I am. And so Jeff honestly told me, he goes, hey, Leo, talk to me about it.
You know, yes, I know there's potential, you know, that can be, you know, money made on those parts. But he was honest with me. He told me, he goes, look. He goes, I don't know much about aircraft parts.
I can help you look for people that, you know, that may be interested or because there is something to be made there. And he goes, I'm more in the commercial side of it on a building. So and then I said, well, you know, I am getting blown up by a few messages. And I'm just, you know, you're I was talking to you live. And I mean, by all means, I am going to.
talk to you first before I talk to anybody else even though I you know I stated to you Dave that um that I'm you know I'm gonna do what's right and so I and he told me straight out uh he goes yeah dude he was look uh in all regards if you have somebody lined up that really knows about aircraft parts uh go for it because don't you know I'm telling you now um I can help you look we can find somebody you know but that's not that's not a i know you have your contract to a certain date you know if you can't close it within that date i mean there's a problem i said exactly he goes if you have somebody in line sell it don't wait for me i'm just trying to help i said okay great i said thank you for being very open and then uh i immediately contacted dave Well, I was going to call him that night, but I called him the next day and I told him, hey, look, I talked to Jeff and this is our conversation. And he goes, oh, awesome. And then me and you started talking and it was like, hey, you basically told me I want to help you accomplish this with this individual because I've built so much rapport with him. And you said, we're going to we're going to close this. We're going to get this done no matter what.
Absolutely. And I said, no, I said, that's great. I said, there's a lot of stuff that I still don't know. But at the end of the day, I told you, hey, if you don't mind me just, you know, being shoulder to shoulder with you and not honesty.
I said, if I make something, I make something. And this is what I told Dave. He's a testimonial for it.
I literally told him, if I make something, I make something. But at the end of the day, I made it to. To finish this deal that I probably know I didn't promise I just wanted to finish the deal because I know in the situation that he's in and he just wants to be done with it you know his wife just passed away about a month ago and everything you know it's a bunch of pain there so I'm trying to help him with all that pain and then he tells me he goes man you know what because I know we've been at it for about two and a half years he goes let's close this you know let's get this over with That way I can buy that RV park. There's an RV park he's actually interested in. And he goes, I'll buy the RV park in Florida.
And I'll just be your private money lender and all the deals that you're going to provide. And I'm like, oh, my God. So I'm like, I'm just, you know, it starts snowballing. You know, like, oh, my God, from helping him solve a deal, regardless if I made something or not.
And then having a private money lender. I mean, and I'm going to be honest, his wife. She owned half of Prosperity Bank. So they have a ton of money.
Oh, absolutely. I mean, so, I mean, my thing is really, it's more the relationship, you know, as a person. Sure. And, you know, I always say, God will pay me in a different way, you know what I mean?
Whether if it's, you know, monetary or just, I'm really just helping people. Absolutely. Steve, what would you say?
Emotional action taker, relationship builder, day together, or competitor? Relationship builder. Absolutely.
Absolutely, and a great guy at that. But Leo, exactly. For us, what we're going to do, so to answer your question, Aaron, we are finding these deals all the time. And this is another one, because the opportunity isn't just the building, it's the parts in it.
Now, what can we do with a bunch of airplane parts? The first thing we got to do is inventory. We've got to actually find out what we've got. And so that's going to be our due diligence part to this.
We are going to write up a contract. It will have to have a little bit of due diligence to that so we know exactly what we're getting and we're getting ourselves into. But other than that, we have already found out that he is willing to own our finance as well. And so that's a win situation as well. But just on the outside, and also there's opportunities, Steve, if you remember, we talked about there's selling the parts as opportunities.
There's bartering as an opportunity. There's ways to make that turn into a business in and of itself opportunity. The parts...
The purchase price is going to be in the $900,000. There's a couple million dollars in parts. So the parts could literally pay for the property and then some, because it could turn into an income stream.
It could, because the parts could be the system, you know. It could be for bartering. It could be for...
Lending, it could be for a collateral to be able to borrow against. It could be something where we bring in another party like Shane. We spoke to Shane last module, and he was talking about being able to participate and provide funding and bringing.
many moving parts into the same deal. And by doing this, no matter what, any deal can be a good deal if we look at it the right way. We could end up with a commercial building free and clear.
And with the financing in place, we might be able to, because he's willing to hold the financing very feasibly for 10 years. We aren't talking interest rates right now. And if he doesn't bring it up, we won't either.
And with a substitution of collateral clause, this jury, you know, we could actually continue to make this payment and move it to a different property with equal or better value and still be able to continue to make that. And so you've literally created financing for yourself to do whatever deal you want to. And that could be an incredible opportunity in and of itself. There's so many ways this deal could become very, very lucrative, and we're helping people, which is the important thing. And I wanted to bring Leo on to listen in on this presentation specifically.
I didn't know if we'd bring you on. I'm glad you were willing to come on, but the reason we did it was so that he could see. from this earlier presentation, there's so many ways we can make that deal work. It was to open his eyes to this, to the opportunities. And would you say your eyes are open a little more?
Oh, man, no, big time. I mean, and I tell you, it was an honor just to, you know, be able to even give me access to come on. I mean, I totally would, total gratitude.
Absolutely. It was my pleasure, my friend. My pleasure.
Anyone else got any other questions either for me, Steve, or Leo? Is there a different waiting period in each state? Absolutely, Aaron. There is a different waiting period.
You're going to want to contact your state, your county's tax collector, and you're going to get a list. Now, sometimes you can get it from a list source. On our Thursday workday that we had with Amit, Amit actually shared a wonderful nugget regarding CoreLogic, and he actually has access to an account there and has actually put me in touch.
I used to have an account years ago, but I haven't messed with them in years. But they do have public records for, I want to say, 90% of the states. So there is...
There is access to it from some list sources as well as the county. The question is how you get it. 99% of it says good. But the question is, you know, for me, I like it straight from the source because it's the freshest when you get it right off the tree.
But frankly, if. they're going to be difficult, and I know Hawaii can be a little bit difficult, we've been finding out, Aaron, but with regards to their public records, but we can always figure out a workaround. So that whether we get it from the tax collector or we get it from a list source that already has access to that tax collector, we can get that information. I love it. Amit's on here popping in nuggets himself.
We're gonna have to get you a course going, buddy. Big time action taker. What's that? He's a big time action taker.
He is. I love that. That is awesome about him. So, Steve, any other questions?
Anything else we want to go over? You hear the ice cream truck. We can hear the ice cream truck.
I think the big thing, or not the big thing, I think... We were talking about Wednesday report cards and it'll be the last of the No Student Left Behind on Wednesday. Is that what we decided? We will decide, yes. Okay.
You never know. The report cards are due on Wednesday. Absolutely. Absolutely.
And I'm going to be reaching out to you guys through this weekend and the next few days. to see if we can help out, see if we can push you over the finish line in a few of these. But guys, as always, thank you again for your continued support with what we're doing. And we're working this and we're going to continue.
And we've got more in store. All right. Have a great weekend, everybody. We'll see you guys all on Wednesday.
Thank you, guys. Bye. Thank you, guys.