Speaker 1: So how are you moving into different markets, Like what
Speaker 1: are some challenges with that. You started where you're from,
Speaker 1: but now you're going to Texas and you going to
Speaker 1: you say they moved to Atlanta and different things like
Speaker 1: and then you're doing different different product types as well. Yeah,
Speaker 1: we talk about navigating that.
Speaker 2: So relationships, man, it's it's it's everything. I think when
Speaker 2: I was coming up in Milwaukee, one of the things
Speaker 2: that I did was just build those relationships off network,
Speaker 2: and I was at every event. You couldn't miss me.
Speaker 2: I literally you could not miss me. I was everywhere.
Speaker 2: Uh So I took that same model, but now I'm
Speaker 2: doing it on the national scale. Everything in DC real
Speaker 2: estate based events, I'm there. I'm not there as much
Speaker 2: now because I've been you know, headed down, but I'm
Speaker 2: in those Atlanta based events, I'm in that, Houston based events,
Speaker 2: I'm in those you know, Birmingham based events, I'm in that.
Speaker 2: So I look for the macro economic trends that I
Speaker 2: liked population growth. I really like red states and blue
Speaker 2: cities because it allows for flexibility and getting out tennis
Speaker 2: that may not pay right. I'm not saying you're vic folks,
Speaker 2: that's not what I'm here for but at the same time,
Speaker 2: places like Atlanta.
Speaker 3: Atlanta is in as bad Atlanta's d C. Let's use DC.
Speaker 3: For example.
Speaker 1: You said red state and blue city.
Speaker 3: Yes, those are places like Atlanta.
Speaker 1: I likes.
Speaker 2: Georgia's Birmingham all blue states, red city. I mean, I
Speaker 2: mean traditionally george is not a blue state though it No, no, no,
Speaker 2: I mean blue Citi's Red states. I may have said
Speaker 2: it the wrong.
Speaker 1: What Birmingham would be, Yeah, yeah, for sure, New Orleans, Yes,
Speaker 1: stuff like that.
Speaker 2: Yeah, I really like blue states, red cities. Sorry, blue cities,
Speaker 2: red states because the higher level laws allow for more flexibility,
Speaker 2: like a place like DC, for example, there were people
Speaker 2: that literally d C prior to the pandemic. You can
Speaker 2: go rent an apartment, never pay your rent, and you
Speaker 2: don't have to get out for at least seven months
Speaker 2: because that's all on the process stakes. Like I know
Speaker 2: people that lived in the building that I lived in
Speaker 2: that literally leased it and didn't pay rent. They just
Speaker 2: leased it out every summer so they can enjoy the
Speaker 2: rooftop and they just burn up different people's things like okay,
Speaker 2: your name this year, were all gonna live there.
Speaker 3: Your name this year? We're all gonna live there.
Speaker 1: Are there any Are there any major cities that are
Speaker 1: run by Republicans? I don't think so. Right most every
Speaker 1: major city run by Democrats. Think about it.
Speaker 3: That's a good Chicago, LA.
Speaker 1: Miami's a Democrat, the mayor's a Democrat. I don't think
Speaker 1: there's any major city that that's interesting. I just thought
Speaker 1: about that. No, no major city has demo, has Republican control,
Speaker 1: even even if it's in the Republican l A. Yeah,
Speaker 1: San Francisco, San Francisco saying yeah, Philly, yeah, and you know,
Speaker 1: Pennsylvana's back and forth.
Speaker 3: But those those cities, those states.
Speaker 2: That have those very like strings and laws, like a
Speaker 2: DC for example, I'm not the most fond of. Right,
Speaker 2: Like during the pandemic, there are people that literally lived
Speaker 2: for over a year just because of the system. And
Speaker 2: it's like you're not paying any rent. As a landowner
Speaker 2: that has thousands of units, I don't want thousands of
Speaker 2: units in the place that I can't get people exploiting
Speaker 2: this system. Out in Wisconsin, you get somebody thirty days,
Speaker 2: all right, boom, you go through the process. Atlanta even
Speaker 2: quicker than that. And I'm not saying we should exploit
Speaker 2: it either. But from a business perspective, it doesn't make
Speaker 2: sense for me to be in a place where X
Speaker 2: amount of people that pay rent, especially as I'm a
Speaker 2: rising Like when I get bigger, of course, maybe I
Speaker 2: could deal with some of that drop, but right now
Speaker 2: now I'm focused on cities where it makes sense financially.
Speaker 4: So you moved throughout the cities. I know the HUT
Speaker 4: is involved in the Birmingham situation. There was three hundred
Speaker 4: and seventy million allocated for the developments. Is it a
Speaker 4: situation where you can now again go back to hood
Speaker 4: and do the same type of oppose in a different city.
Speaker 3: Absolutely.
Speaker 2: So, I'm a finalist for three cities right now.
Speaker 4: I knew it, man, I knew.
Speaker 2: I'm a finalist for three cities right now. I got
Speaker 2: a call yesterday about one. We'll talk about the cities offline.
Speaker 3: Yeah.
Speaker 2: So the strategy and the game plan there is, if
Speaker 2: let's say once a year, once every other year, I
Speaker 2: can pick up one of these. Birmingham will be further
Speaker 2: along now I'm starting that and if each one is
Speaker 2: kicking out a thousand plus units, you get three four cities.
Speaker 3: I mean by the time I'm thirty four.
Speaker 2: Now by the time I'm forty two forty three, I
Speaker 2: have thousands of units under my belt that I've developed
Speaker 2: and really just starting to enter my prime.
Speaker 4: On your financial map, does a percentage change with the
Speaker 4: amount of units? Right when you started at the one forty,
Speaker 4: you had your percentage that was put in. Now you're
Speaker 4: doing eleven hundred, but you have partners.
Speaker 3: Yes, great question, Yes it did change.
Speaker 2: So each city that you go into their housing authority
Speaker 2: that you So all of these are public housing redevelopment.
Speaker 2: So think to Brittany Greens, think Marcie Projects, et cetera.
Speaker 2: We're taking the projects and creating mixed income communities because
Speaker 2: if you think about the projects that were low density,
Speaker 2: so it's thirty acres of land with three hundred units
Speaker 2: on it, that's saying thirty acres could do three thousand
Speaker 2: if you really wanted to, right, But you don't want to.
Speaker 2: You don't want to go that dence. But that's just
Speaker 2: an example of what you are going after. So, because
Speaker 2: the housing authorities typically own those lands, whoever is at
Speaker 2: the housing authority, they kind of dictate the negotiation of
Speaker 2: like the housing authority and developer in those terms the
Speaker 2: housing authority gets x percentage and then the developers gets
Speaker 2: why percentage, And right now Integrow and I are splitting
Speaker 2: that percentage. But it's very favorable, like it's pretty close
Speaker 2: to where it should be. And the way we work
Speaker 2: they come. I'm driving, but they're they're every step of
Speaker 2: away in the passenger seat. So I'm able to learn
Speaker 2: from it in their experience. They've developed, built and manage
Speaker 2: over ten thousand plus units. They've been doing this, they
Speaker 2: created the model. I'm learning from them, but I'm driving
Speaker 2: the ship at the same time. So yes, I have
Speaker 2: to share in the economics. But you know, three four
Speaker 2: hundred million dollar deals a pop. I don't mind sharing.
Speaker 2: We can figure it out. So talk about access to capital.
Speaker 2: That's something that you know, don people a lot of
Speaker 2: people haven't talked about. What is your thoughts on access
Speaker 2: to capital as far as on the real estate development
Speaker 2: side and what's your personal experience is trying to get
Speaker 2: access to capital the money on this commercial real estate side.
Speaker 2: Like I said, the money is gonna be there if
Speaker 2: you got to deal to work, the money's gonna flow
Speaker 2: at the end of the day. Now, the terms for
Speaker 2: the money talked about before that's where it gets a
Speaker 2: little tricky. I'll say in a way of George Floyd.
Speaker 2: There was an eighteen month period maybe even a little I mean,
Speaker 2: it's still kind of there, but it's scaling back where
Speaker 2: they were throwing money at black developers.
Speaker 1: Who moves stolen money like Blackrock.
Speaker 3: Uh No, that's a great question. So like the paypals
Speaker 3: of the world.
Speaker 2: When they was giving out all of the like oh,
Speaker 2: I want to invest in black communities, primarily went to
Speaker 2: CDFI's Community Development Financial Institution that we talked about last time.
Speaker 2: There's some national cd offis that governed some of those
Speaker 2: funds and they've been able to kind.
Speaker 3: Of distill those funds to us.
Speaker 2: So like Enterprise Community Partners that my equity investors on
Speaker 2: the Madison deal, they have a program called Equitable Path Forward.
Speaker 2: Their CEO just took over Fanny May. So that's the
Speaker 2: scale of like how big these CDFIs are now. They're
Speaker 2: one of their presidents, Lrie Chapman. She created this program
Speaker 2: based upon all of that money that was coming in
Speaker 2: from the corporations that were trying to give to black dollars.
Speaker 3: And this program is specifically created to be able to.
Speaker 2: They have to credit for us from an operational business perspective,
Speaker 2: they have pre development loans so you can go out
Speaker 2: each one of these deals, you need at least a
Speaker 2: half a million, anywhere from a half a million to
Speaker 2: a million before you close. You get it all back
Speaker 2: when you finish, but you need that before you close.
Speaker 2: So when you talk about like capacity, that's one of
Speaker 2: the things too. If you have five of these deals
Speaker 2: going on at one time, you're gonna need too and
Speaker 2: a half to five million dollars worth of capital just
Speaker 2: to deploy to that, not even talking about your operations
Speaker 2: and nothing like that. So they have programs that are
Speaker 2: allowing for developers to be able to tap into those
Speaker 2: type of money that helps us grow in scale. But
Speaker 2: the flip side of it is that's all to you know,
Speaker 2: kind of feel good money that's gonna flip. But to
Speaker 2: don People's point, black people don't manage big pension funds
Speaker 2: at all, right, I've heard him talk about it on
Speaker 2: y'all's platform. At the end of the day, we're less
Speaker 2: than one percent of all of the management, Black brown women,
Speaker 2: less than one percent of all assets managed. But if
Speaker 2: in New York, for example, with black brown and women.
Speaker 2: It is over fifty percent of what's going into that
Speaker 2: pension fund. Why is it less than one percent of
Speaker 2: us managing or having access to manage those funds. What
Speaker 2: is the governance around that to say, oh, you are
Speaker 2: not capable enough to do that. That's still a really
Speaker 2: big challenge to be able to even go from someone
Speaker 2: like myself that's a developer that's established, to get into
Speaker 2: funded management and be able to allocate to either my
Speaker 2: developments or other developers in the same way as some
Speaker 2: of these traditional majority firms are doing with no problem.
Speaker 2: So that's really a challenge that I think needs to
Speaker 2: be addressed, and I'm doing my job to do it.
Speaker 2: So Reinvestors a platform that I'm creating now. It's a
Speaker 2: crowdfunding platform that democratizes commercial real esset investment. My mother
Speaker 2: can invest, your parents can invest unless they are accredited. Historically,
Speaker 2: but you've seen crowdfundings start to grow in the real
Speaker 2: estate space a little bit. So I'm doing a regulation
Speaker 2: a plus we can raise up to seventy five million.
Speaker 2: I'm gonna put a portfolio of deals together and have
Speaker 2: people invest in that and back by the best of
Speaker 2: the best in the country that are doing it so
Speaker 2: it's secure by those funds, I mean buy those firms,
Speaker 2: and we underwrite the deals, we co invest in the deals.
Speaker 2: It's a it's not like investing in a company. It's
Speaker 2: not like investing in a onesie deal. Like we are,
Speaker 2: you know, putting together sophistication in a way that the
Speaker 2: marketplace has not seen. So that's one of the ways
Speaker 2: that I'm addressing that access to capital challenge for emerging
Speaker 2: developers that are like me and coming up behind me too.