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Speaker 2: All right, guys, Welcome back, e y L Hometown Heroes

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Speaker 2: editions right for sure, for sure for sure. So we

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Speaker 2: are in d C right now. Just finished up crazy

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Speaker 2: crazy event we had top go up, got like two

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Speaker 2: hundred people there. It was crazy.

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Speaker 3: You know.

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Speaker 4: Somebody said they were like yo, man, this is crazy.

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Speaker 4: Everybody I follow on social media in this room right now,

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Speaker 4: how y'all do this?

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Speaker 5: Shout out?

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Speaker 2: Shout out to Shout out to everybody that came to

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Speaker 2: the event. Shout out to our god Sharani for.

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Speaker 3: Sure, Capital Capital, Capital Event.

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Speaker 5: Group, Capital Events Group.

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Speaker 3: Shout out to the boy Trani he is. He's amazing man.

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Speaker 4: So if you're in d C and you need an

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Speaker 4: event plan or curated, get the contact. Follow him on Instagram.

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Speaker 4: I'm sure we'll put a post up about it. You

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Speaker 4: took care of us man. DC would not be the

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Speaker 4: same without him here.

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Speaker 2: Thank you for the hospitality, bro, appreciate it. And what's coy?

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Speaker 2: Tom's coy for Sure Networking Power Network and Atlanta You're

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Speaker 2: next January twenty fifth, January twenty sixth.

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Speaker 5: We're gonna take over the whole city. We're gonna do.

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Speaker 2: A big, big, big, big big. You can't play around

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Speaker 2: with Atlanta. Yeah, facts the fact.

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Speaker 4: Every time we say Atlanta, if you know, you know, man,

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Speaker 4: shout out to the great city of Atlanta.

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Speaker 2: Can't wait to touch the town. We're gonna be releasing

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Speaker 2: details soon. Details might have already been released by this

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Speaker 2: episode comes out, but we're gonna yeah, we're gonna do

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Speaker 2: it really really big. So we have a dope episode

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Speaker 2: played today and it is Yes, hometown Heroes, even though

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Speaker 2: we're in d C. It's not a DC hometown hero,

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Speaker 2: but it's a yeah, it's a Milwaukee, Wisconsin hometown hero

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Speaker 2: that lives in DC and Milwaukee.

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Speaker 5: So my man Brandon Rule.

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Speaker 2: It was interesting because like, I think you had the

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Speaker 2: article on we Buy Black and it went viral and

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Speaker 2: then like Troy Troy sent it to me, and then

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Speaker 2: somebody else sent it to me and then but I

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Speaker 2: didn't read it in full transparency because he sends me

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Speaker 2: like seven articles a day. But like by the time

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Speaker 2: the third person read it sent it to me, I

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Speaker 2: read it, I'm like, yo, we should probably interview. He's

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Speaker 2: like yeah, I sent it to you two weeks ago.

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Speaker 2: So I'm like so, and I hit you up like

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Speaker 2: are you interested in coming? Like yeah, somebody actually just

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Speaker 2: told me about your Yeah.

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Speaker 6: He was like, Yo, this is.

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Speaker 4: Like one of the quickest turnarounds. Yeah yeah, Like two

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Speaker 4: weeks ago. I was like, Yo, this guy's dope. A

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Speaker 4: man came from Detroit hit me like yo, just guys hope.

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Speaker 4: I'm like, yeah, I just read about him and then

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Speaker 4: like the next week he was like, Yo, he's gonna

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Speaker 4: come on.

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Speaker 3: I'm like, oh, this is great.

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Speaker 2: It was easy one, two three. So Brandon, Brandon's dope.

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Speaker 2: He's thirty one years old and he's a We talked

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Speaker 2: about real estate a lot. Most of the time from

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Speaker 2: our podcast is real Estate Investors, which is dope, wholesaling, buying,

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Speaker 2: flip stuff like that. But he's a developer, right, and

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Speaker 2: he's young. He's thirty one years old, and he most

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Speaker 2: of his developments are in uh Milwaukee, Wisconsin, and he

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Speaker 2: has forty million dollars of affordable housing currently under his

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Speaker 2: belt as far as development, and then one hundred and

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Speaker 2: eighty million dollars in the pipeline. And yeah, for sure,

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Speaker 2: it just got awarded a huge forty one million dollars.

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Speaker 7: Forty one million for the first phase for the first

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Speaker 7: fall in the second.

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Speaker 5: And that's gonna be for a grocery store.

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Speaker 6: The first thing.

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Speaker 7: You're gonna do thousand, score thirty thousand square for a

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Speaker 7: grocery store with one hundred.

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Speaker 6: And fifty apartments in the parking grash. Yeah parks.

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Speaker 2: Yeah, So this is gonna be a high level conversation.

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Speaker 6: It's gonna be get in the ways if y'all want to.

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Speaker 7: Yeah, So, first and foremost, thank you, Thank you for

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Speaker 7: having me.

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Speaker 5: I appreciate it, appreciate it, appreciate it, appreciate you.

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Speaker 2: So all right, so before we before we even get

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Speaker 2: into the nitty gritty of what you're doing, how did

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Speaker 2: you get started? It's an interesting story because if people

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Speaker 2: don't know who the legend peoples are, and that's unfortunate

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Speaker 2: that it's it's a really unfortunate situation if you think

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Speaker 2: about it, because it's like everybody knows whose Lebron is right,

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Speaker 2: everybody knows whose Lil Wayne is right. But this guy

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Speaker 2: has definitely more money a little way, not shut the toms, no,

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Speaker 2: no disrespect, but probably like almost the same amount of

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Speaker 2: money and Lebron maybe more money than Lebron, right, Like

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Speaker 2: he's on his way close to being a billionaire, right,

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Speaker 2: And he's black developer from DC, from DC, and not

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Speaker 2: a lot of people are really familiar with him. So

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Speaker 2: he kind of I bring him up because he kind

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Speaker 2: of he's the start of your real estate journey, right

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Speaker 2: and you see, at least in DC for sure. So yeah,

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Speaker 2: what's your what's your path in real estate, and what's

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Speaker 2: your path to coming to d C from Milwaukee?

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Speaker 7: For sure, I'll just start from the beginning for real

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Speaker 7: so from Milwaukee. But I was actually born in Los Angeles, California,

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Speaker 7: So I was born in LA And in nineteen ninety four,

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Speaker 7: I was in the earthquake, the North Is earthquake. At

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Speaker 7: the time, it was the worst natural disaster and financial

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Speaker 7: worst natural disaster financially in American history, so over a

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Speaker 7: billion dollars worth of damages, one of that being my home.

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Speaker 7: So we lost everything, slept outside for a few days,

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Speaker 7: remember vaguely like being outside of the Walmart and just

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Speaker 7: not having any resources. The highways were broken, everything. So

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Speaker 7: my parents are high school sweethearts from Chicago. My dad

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Speaker 7: was like, I ain't with this, We're going back. So

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Speaker 7: my grandfather was living in Milwaukee at the time. We

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Speaker 7: ended up moving to Milwaukee into his attic as we

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Speaker 7: got back on their feet. A couple months later, rented

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Speaker 7: the house and then moved forward. So from that point forward,

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Speaker 7: I grew up in Milwaukee. And if anyone knows anything

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Speaker 7: about Milwaukee's actually the worst place for black people in

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Speaker 7: America right now, Google it. It'll pop up in many articles,

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Speaker 7: many reports.

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Speaker 3: I saw a statistic.

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Speaker 4: It was like, specifically Madison with six percent of the

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Speaker 4: population is black, but fifty percent of the people incarcerated

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Speaker 4: or black.

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Speaker 7: Oh yeah, he's crazy easy. Yeah, Madison is ridiculous too.

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Speaker 7: Raight saying is ridiculous too. Milwaukee is actually closer to

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Speaker 7: forty percent black. But we have national problems, but just

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Speaker 7: not national resource. Very similar to a Detroit, very similar

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Speaker 7: to a Baltimore. But no one's really looking there. You

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Speaker 7: don't hear about black folks from Milwaukee.

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Speaker 6: Black people don't leave. It's just a thing. Average.

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Speaker 7: I think media income in Milwaukee for a black person

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Speaker 7: is twenty eight thousand dollars.

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Speaker 6: A black family twenty one thousand dollars family like a family.

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Speaker 7: Of four, just a family period, a black family, let's

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Speaker 7: say two parent family three to four is not always

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Speaker 7: two parents, but twenty eight thousand dollars is an average

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Speaker 7: for a family in Milwaukee. And that's very much so

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Speaker 7: with me, my friends, my family, everybody. That's my roots,

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Speaker 7: that's who I am, that's where I'm from.

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Speaker 6: But I needed to break that. So I went to school.

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Speaker 7: All of my all of my family were influenced by

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Speaker 7: my grandfather who was a very successful street pharmacist.

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Speaker 6: And yeah, I the language yet that which is important.

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Speaker 4: It's important that we're gonna file that where we had

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Speaker 4: returning citizens.

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Speaker 7: Yeah, for sure, that's going to that same the China citizens.

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Speaker 7: Any checked your needout. She actually was the first person

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Speaker 7: I heard returning citizens. But yeah, so he was a

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Speaker 7: street pharmacist and he influenced my entire family. He was

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Speaker 7: an entrepreneur. He was really you know, it was the

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Speaker 7: first millionaire in the family. By the time I came,

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Speaker 7: he got hit with the Rica Law and we didn't

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Speaker 7: have any money again, so I didn't really have that benefit.

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Speaker 6: But I say that to say.

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Speaker 7: I was the one that wanted to change the trajectory

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Speaker 7: of the entire family. So I went to school, did

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Speaker 7: it a different way. I was always like the chosen one.

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Speaker 7: It's like, okay, cool, you got it. Went out to school,

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Speaker 7: grew up in the Milwaukee public school system, was actually

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Speaker 7: one of the worst in the country as well. Wear

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Speaker 7: that on my sleeve because you know, you can come

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Speaker 7: from any environment and make it right the fact. So

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Speaker 7: when went on to school, went on the Marque University

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Speaker 7: study economics, mining in sociology, So I think that kind

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Speaker 7: of gave me the background that I needed in real

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Speaker 7: estate economics, understanding capitalism. A lot of people think money

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Speaker 7: is bad when it.

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Speaker 6: Really is just a tool.

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Speaker 7: It's a tool to leverage in a way that you

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Speaker 7: do any other tool. Right, So study economics, but also

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Speaker 7: study sociology. How do people fit within this? How does

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Speaker 7: the people from the hood fit within this capitalistic society

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Speaker 7: that we live within.

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Speaker 6: So that was my foundation.

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Speaker 7: Then my senior year, junior, senior year, fourth year, I

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Speaker 7: took a program called the ACRE program, which stands for

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Speaker 7: Associates and Commercial real Estate, and that pretty much exposed

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Speaker 7: me to what commercial real estate development was because like

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Speaker 7: many other folks, I hear real estate and like, do

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Speaker 7: you think of a broker, You think of a realtor,

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Speaker 7: But there's so many other things when it comes to

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Speaker 7: real estate. You like so many professions. So when you

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Speaker 7: think about a development process, a civil engineer, environmental engineer,

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Speaker 7: geotechnical engineer, an architect, a contractor, a developer, a lender,

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Speaker 7: there's so many different avenues that you can get into.

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Speaker 7: So that program exposed me to that, and then it's like, okay, well,

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Speaker 7: developers make a lot of money. I wanted financial freedom

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Speaker 7: and I wanted some flexibility.

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Speaker 6: So I was like, okay, well.

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Speaker 7: I think I want to do this, and then that's

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Speaker 7: when I started on my real estate path. While doing that,

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Speaker 7: I got my hands on a book called The People's Principles,

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Speaker 7: which was written by Don Peebles. Don Peebles, billionaire black

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Speaker 7: developer from DC. That's where it started, then moved on

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Speaker 7: to Miami and went to Vegas and now it's based

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Speaker 7: in New York.

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Speaker 6: And read this book. Really was inspired by.

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Speaker 7: The really technical things that he said within it. It's like,

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Speaker 7: this is how I became what I became. And I

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Speaker 7: was like, oh, this is great. Okay, well I'm a

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Speaker 7: follow a similar path which is doing my way. So

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Speaker 7: in twenty seventeen, I got my twenty sixteen, I got

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Speaker 7: my first low income housing tax credit. So affordable housing

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Speaker 7: developments in the past were financed through Section eight. So

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Speaker 7: if you think about a Section eight property, Kabrini Greens

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Speaker 7: in Chicago. You know some of these really large berry

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Speaker 7: farms in DC, really large complexes three four hundred units

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Speaker 7: and really just clusters of poverty. That's how they were

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Speaker 7: financing it. But now they use a tool called Section

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Speaker 7: forty two IRIS Code, which is a tax credit. So

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Speaker 7: we are given a tax credit that we sell to

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Speaker 7: an investor and use that to finance the project.

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Speaker 2: Can you can you explain that a little bit, because yeah,

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Speaker 2: we Section eight. I think most people know what sectionate is, right,

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Speaker 2: where it's like it's government and they subsidize housing, right,

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Speaker 2: and but section that you don't have to live in

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Speaker 2: the projects, like you can have a house.

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Speaker 6: So there's two different types.

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Speaker 7: There's Section eight project based vouchures, so projects got the

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Speaker 7: Section eight assistance, but then they were also like people

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Speaker 7: based boxing, right where you can.

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Speaker 2: Take that you go into like a house, and they

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Speaker 2: pay the landlord. So what's the new way?

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Speaker 7: Section forty two is the primary tool for affordable housing.

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Speaker 7: There's still some Section eight, there's still some vouchures, but

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Speaker 7: Section forty two just really high level. If you think

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Speaker 7: about a building, and you think about developing a building,

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Speaker 7: it may cost forty million dollars to develop a building, right.

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Speaker 6: Tip.

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Speaker 7: In order to fund that building, you need rents that'll

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Speaker 7: pay you enough to then get a bank to give

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Speaker 7: you a loan, So you need a construction loan, and

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Speaker 7: then you need permanent financing. So in order to get

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Speaker 7: the construction loan, one of the threshold items is, hey,

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Speaker 7: how much is the loan to value of this projected property.

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Speaker 6: So if your.

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Speaker 7: Value based on rents being at fifteen hundred dollars a month,

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Speaker 7: it equates to forty million dollars.

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Speaker 6: You can then build.

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Speaker 3: Who's doing the assessment of how much each.

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Speaker 6: One is worth? Each unit? The market kind of determines that.

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Speaker 7: So drilling deeper into that, let's say fifteen hundred per

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Speaker 7: equates to forty million dollars. Let's say now you're in

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Speaker 7: an area that rents can only be seven hundred and

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Speaker 7: fifty dollars per People still need to live, but we

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Speaker 7: still need additional housing. In order to build that, the

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Speaker 7: government created a tax credit that subsidized developers for the difference.

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Speaker 7: So if the seven fifty gives me twenty million, I

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Speaker 7: effectively are gonna get I'm gonna get twenty million in

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Speaker 7: a tax credit to then make it balance.

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Speaker 6: And make it work.

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Speaker 5: They so they'll pay you the developer.

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Speaker 2: They pay the project, they say, the project. They pay,

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Speaker 2: not you personally, but they fund the project.

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Speaker 7: And they allocate a tax credit to the developer to

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Speaker 7: sell on behalf of.

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Speaker 4: The project, so they pay that the person paid seven

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Speaker 4: hundred and one thousand dollars if it was seventeen hundred

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Speaker 4: and one thousand dollars is being paid.

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Speaker 7: Through through the tax credit upfront, and in exchange for

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Speaker 7: the tax credit, you have to restrict the rents for

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Speaker 7: a certain amount of time fifteen years, thirty years, et cetera.

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Speaker 7: And the rent is like market based. Yeah, so it's

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Speaker 7: based on the area median income. So that's really like

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Speaker 7: how they determine it. And they have different thresholds. So

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Speaker 7: a thirty percent unit is like very low income, a

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Speaker 7: fifty percent unit and a sixty percent unit is what we.

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Speaker 6: Will call workforce or affordable housing.

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Speaker 7: And then you have eighty percent units as well that

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Speaker 7: can be financed through this tax credit. And that's based

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Speaker 7: on So take the one hundred thousand dollars area media

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Speaker 7: income in DC, UH fifty percent unit is fifty thousand dollars.

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Speaker 7: If a person makes fifty thousand dollars in DC, they

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Speaker 7: can qualify for affordable housing under this threshold. You take

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Speaker 7: thirty percent of that income divided bout twelve months. That's

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Speaker 7: how you come out to the rent amount that you

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Speaker 7: can pay okay.

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Speaker 5: So okay, yeah, so it's a little deep. Sorry, No,

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Speaker 5: that's that's right, up eyol. That's what we do. That's

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Speaker 5: the whole. It's right, A lot of numbers right in

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Speaker 5: line with our content. So you meet you meet Don.

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Speaker 5: People's right, yeah, and how does that go?

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Speaker 6: Yeah?

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Speaker 7: So twenty seventeen, I jumped out. He was speaking at

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Speaker 7: a conference in DC, and I was like, I have

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Speaker 7: to meet this guy. So I still by the door,

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Speaker 7: very to nice said, I'm an ambitious guy by nature,

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Speaker 7: a type personality. If I want time, I'm gonna go

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Speaker 7: get it. And I wanted to meet him, so I

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Speaker 7: went introduced myself. I just received that tax credit. That's

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Speaker 7: why I wanted to get a story, just receive the

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Speaker 7: tax credit. I was about to develop my first project.

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Speaker 7: Hey Don, what's up branding? I got my first project in,

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Speaker 7: I got a couple more of my pipeline. Would love

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Speaker 7: to connect. And he was impressed by what I was

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Speaker 7: doing because my age. I think I was twenty six

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Speaker 7: twenty seven at the time, and his first project I

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Speaker 7: was twenty seven. He was awarded his first project at

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Speaker 7: twenty seven as well. So I was on that path.

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Speaker 7: It's like Okay, yeah, this is the only black billionaire

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Speaker 7: doing what I'm doing.

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Speaker 6: I need to meet him.

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Speaker 7: So we met, had a phone call about a month later,

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Speaker 7: and the biggest takeaway I took from that phone call

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Speaker 7: was he said, work on larger deals. So at that

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Speaker 7: time I did was twelve and a half million. I

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Speaker 7: had another deal that was about fourteen million, and I

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Speaker 7: had another deal that was like seven million. The fourteen

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Speaker 7: million dollar deal was a market rate. It wasn't an

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Speaker 7: affordable housit development actually never went through. I'll talk on

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Speaker 7: that too, But I needed to raise about one and

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Speaker 7: a half from equity investors in order to finance the project.

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Speaker 7: And you just, you know, go out to folks, get

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Speaker 7: one hundred thousand here, two fifty there, you know, et cetera,

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Speaker 7: et cetera, and he pray much just put it in

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Speaker 7: perspective for me, said, I just raised five hundred million

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Speaker 7: dollars in New York and this is the easiest money

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Speaker 7: ever raise. Because institutional capital, the demand on that is

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Speaker 7: so it's so much so, it's so much less than

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Speaker 7: the demand on every day individuals and investments. Because you

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Speaker 7: can invest in stocks, you can invest in bonds, you

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Speaker 7: can invest in a different real estate project, you can

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Speaker 7: invest in your kids college fund. Individuals have so many options,

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Speaker 7: but institutional capital needs places to put this money. So

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Speaker 7: he told me to work on larger deals, and I said,

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Speaker 7: about three months later I moved to DC.

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Speaker 2: That reminds me of three stories, So I'll take it

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Speaker 2: one by one. Well, first off, you know how one

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Speaker 2: of the people that really got don people's into the game,

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Speaker 2: Barry and Barry for sure. You know that legend, DC

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Speaker 2: legend rest in peace. So that's one story. The second

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Speaker 2: story is that that also that what you said reminds me.

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Speaker 2: I watched the interview with Magic Johnson and called a

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Speaker 2: shout out to both of them, and Magic told Maverick

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Speaker 2: he said, the same amount of time that it takes

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Speaker 2: to do a deal for one million, it takes to

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Speaker 2: do one hundred million, So do one hundred million because.

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Speaker 7: It's the same energy. It's same energy. It's not like

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Speaker 7: it's not you have to do additional energy. It's the

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Speaker 7: same energy output. It's just you're focusing your energy on

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Speaker 7: the small guy level. You can focus your energy on big,

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Speaker 7: or you can focus your ines on small. The third

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Speaker 7: one was Byron Allen. He was on a breakfast club,

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Speaker 7: and he just said what you said. As far as

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Speaker 7: like what, especially in institutions, a lot of times they

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Speaker 7: have a problem where they have to they have to

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Speaker 7: spend money.

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Speaker 6: They have to they have to spend money.

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Speaker 2: They raised it. They have exactly there looking for. They

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Speaker 2: have whole teams devoted to look for opportunities, which means

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Speaker 2: they have whole teams devoted to look to say where

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Speaker 2: can I give money away to different deals? And how

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Speaker 2: can I position this Because I have five hundred million

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Speaker 2: dollars at the sothing.

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Speaker 7: It was just five hundred so it's real raise your

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Speaker 7: hand please, So, but you have to understand the key

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Speaker 7: to that. You have to understand that language. It's a

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Speaker 7: language of finance. That's the way I look at it.

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Speaker 7: It's no different from English verse Spanish. We all know English,

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Speaker 7: some people know Spanish, some people know finance.

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Speaker 6: It's just a language.

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Speaker 7: And if you understand the language, and if you understand

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Speaker 7: what they are saying and what they are looking for,

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Speaker 7: you can make it work.

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Speaker 2: So how did you I'm interested to notice because you

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Speaker 2: started in the game very young twenty early twenties and

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Speaker 2: twenty three. You know humble beginnings, like your family was

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Speaker 2: in real estate. So how do you get your first deal?

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Speaker 2: How do you learn the language? How do you get

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Speaker 2: your first deal in real estate as a developer? Like

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Speaker 2: how does that? Can you walk me through that process,

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Speaker 2: like your very first deal, Like how does that happen?

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Speaker 7: So my first deal was actually a four unit investment.

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Speaker 7: It was a real estate investment type. Okay, it was

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Speaker 7: a hud home on the north west side of Milwaukee

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Speaker 7: by Hoole. Yeah, I just sold it about a year

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Speaker 7: and a half ago. I bought that when I was

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Speaker 7: twenty three. So let me rewind. Three and a half

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Speaker 7: percent down it was only eighty five thousand dollars and

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Speaker 7: I sawed for like one sixty So that was like,

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Speaker 7: well played different, you know, it makes sense. So that

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Speaker 7: was my entry entry point, but rewinding. So once I

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Speaker 7: finished the acre program, I'm like, Okay, this real estate

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Speaker 7: thing is cool. I think I want to figure out

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Speaker 7: how to be a developer. I spent a lot of

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Speaker 7: time trying.

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Speaker 6: To put the pieces of the puzzles together. So I

403
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Speaker 6: started going to events.

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Speaker 7: I went to a ton of conferences, a ton of seminars, gallas,

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Speaker 7: all types of things. I was just searching for people

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Speaker 7: and information and knowledge, and I equated it to like

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Speaker 7: putting together a puzzle.

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Speaker 6: Right, It's like, if this is the real estate.

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Speaker 7: Puzzle, how do I find the pieces and then how

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Speaker 7: do I put them together? So I met a guy

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Speaker 7: by the name of Keith Broaden. No. First, I went

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Speaker 7: to an awards bank Will called the Mandy Awards's Community

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Speaker 7: Development Awards in the city of Milwaukee. I'm actually up

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Speaker 7: for I'm a finalist of a real estate awards. O.

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Speaker 5: So congratulations, thank you. I'm sure you'll win.

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Speaker 6: Yeah, appreciated this episode put over the finish line. So yeah.

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Speaker 7: I went to this awards banquet and I met a

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Speaker 7: gentleman by the name of Wayman Winston Waymon Winston was

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Speaker 7: the executive director of Weeda. Weeda is the housing authority

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Speaker 7: that a ministers the longcome housing tax credits. So I

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Speaker 7: was like, yeah, I want to be a developer, et cetera,

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Speaker 7: et cetera. He was like, well, if you want to

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Speaker 7: be a developer, come to this conference. This is the

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Speaker 7: developers conference. It's going to be all developers. There's gonna

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Speaker 7: be lenders, there's gonna be architects, syndicators, anyone that plays

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Speaker 7: in this arena. In the State of Wisconsin will be

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Speaker 7: here at the conference. Conference is like a couple of

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Speaker 7: hundred dollars. I didn't have. It ended up getting sponsored somehow.

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Speaker 7: I think I like figured out a way to fin

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Speaker 7: my way up there. So you know, I threw on

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Speaker 7: a suit. I had a little nappy frow at the time,

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Speaker 7: and I just was meeting everyone I could meet, and

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Speaker 7: I ran into this gentleman who I just saw.

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Speaker 6: A few weeks ago. Keith brought next.

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Speaker 7: He was working at Great Lakes Capital which is now

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Speaker 7: call sing There their syndication firm. They raised fun and

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Speaker 7: then the minister they pretty much purchased the tax credits

438
00:21:04,240 --> 00:21:06,800
Speaker 7: on behalf of investors, and he gave me my first

439
00:21:06,800 --> 00:21:12,120
Speaker 7: pro former. So a performer is essentially an Excel document

440
00:21:12,400 --> 00:21:15,560
Speaker 7: that pretty much is the business plan for real estate development.

441
00:21:16,040 --> 00:21:16,800
Speaker 6: And what that does.

442
00:21:16,920 --> 00:21:21,160
Speaker 7: It allows you to understand how much this will cost

443
00:21:21,200 --> 00:21:23,879
Speaker 7: to build and how it will perform over the next

444
00:21:24,480 --> 00:21:27,480
Speaker 7: fifteen to thirty years. So he gave me this performer

445
00:21:27,800 --> 00:21:30,840
Speaker 7: and I had no clue what it was. I wasn't

446
00:21:30,840 --> 00:21:33,399
Speaker 7: really a finance I was an economics major, but I

447
00:21:33,440 --> 00:21:36,760
Speaker 7: wasn't a math or finance guy really, So I was

448
00:21:36,840 --> 00:21:38,280
Speaker 7: just diving in and I tried to figure it out.

449
00:21:38,280 --> 00:21:40,760
Speaker 6: So I would like google every term. You know.

450
00:21:40,840 --> 00:21:44,440
Speaker 7: Google university is a thing, YouTube university is a thing.

451
00:21:44,560 --> 00:21:44,760
Speaker 6: You know.

452
00:21:44,880 --> 00:21:47,560
Speaker 7: I was googling every single term trying to understand.

453
00:21:47,240 --> 00:21:54,600
Speaker 2: You know what else today eyl university.

454
00:21:52,240 --> 00:21:54,760
Speaker 6: That's the thing you need. It's a real thing, okay,

455
00:21:54,800 --> 00:21:57,480
Speaker 6: but even better you know, by us.

456
00:21:57,480 --> 00:22:01,160
Speaker 7: So yeah, I was just googling all of the terms

457
00:22:01,160 --> 00:22:04,040
Speaker 7: within this document and I just started to work in it.

458
00:22:04,359 --> 00:22:06,080
Speaker 6: So I was working at the bank at the time.

459
00:22:06,440 --> 00:22:07,760
Speaker 7: I was working at pen and C Bank as a

460
00:22:07,760 --> 00:22:09,880
Speaker 7: personal banker and making twenty three thousand dollars a year.

461
00:22:10,240 --> 00:22:13,080
Speaker 7: And I was like, man, I can't this is my life, Like,

462
00:22:13,320 --> 00:22:15,359
Speaker 7: I'm not about to just be wearing these nice suits,

463
00:22:15,359 --> 00:22:16,879
Speaker 7: getting up at six in the morning, get home at

464
00:22:16,920 --> 00:22:18,440
Speaker 7: six pm.

465
00:22:17,840 --> 00:22:19,240
Speaker 6: Doing this for the rest of my life. I can't

466
00:22:19,280 --> 00:22:19,560
Speaker 6: do it.

467
00:22:19,920 --> 00:22:22,480
Speaker 7: So I would then get off work and then go

468
00:22:22,560 --> 00:22:24,800
Speaker 7: back to work from seven to midnight, seven to one,

469
00:22:24,840 --> 00:22:25,359
Speaker 7: seven to two.

470
00:22:25,440 --> 00:22:26,240
Speaker 6: Every single day.

471
00:22:26,520 --> 00:22:29,919
Speaker 7: I was in that pro form of working for years, educating,

472
00:22:30,200 --> 00:22:34,840
Speaker 7: educating myself in that no articles, pub no press, no publication,

473
00:22:35,480 --> 00:22:39,199
Speaker 7: no payments, every single day I was working. So what

474
00:22:39,320 --> 00:22:42,560
Speaker 7: then happened was I realized that I was only making

475
00:22:42,600 --> 00:22:47,679
Speaker 7: about fifteen hundred after taxes per month. And then I

476
00:22:47,720 --> 00:22:50,320
Speaker 7: came across this four unit that was eighty five thousand

477
00:22:50,320 --> 00:22:53,119
Speaker 7: dollars in Milwaukee. In Milwaukee, so I put three and

478
00:22:53,160 --> 00:22:55,960
Speaker 7: a half percent down. I was running out there. I

479
00:22:55,960 --> 00:22:59,359
Speaker 7: think the rents were about six hundred apiece, maybe six

480
00:22:59,520 --> 00:23:03,439
Speaker 7: twenty five, you know, do the math on that twenty

481
00:23:03,480 --> 00:23:06,480
Speaker 7: four My mortgage was about one thousand, So I was

482
00:23:06,520 --> 00:23:10,120
Speaker 7: clearing fourteen just off of this when I was only

483
00:23:10,119 --> 00:23:13,679
Speaker 7: clearing fifteen at the bank. I quit my job the

484
00:23:13,760 --> 00:23:15,880
Speaker 7: moment I bought the four unit. I couldn't quit before

485
00:23:15,920 --> 00:23:17,320
Speaker 7: because I needed to show the income to.

486
00:23:17,280 --> 00:23:20,280
Speaker 6: About a four yunit. But once I once I closed,

487
00:23:20,320 --> 00:23:21,440
Speaker 6: I quit. I was out of there.

488
00:23:21,840 --> 00:23:24,160
Speaker 7: That then gave me the freedom to dig deeper into

489
00:23:24,200 --> 00:23:26,280
Speaker 7: this real estate thing. Now you spend in the entire time,

490
00:23:26,600 --> 00:23:28,920
Speaker 7: all my time, energy and effort was going towards real

491
00:23:29,040 --> 00:23:29,960
Speaker 7: estate development.

492
00:23:30,160 --> 00:23:33,040
Speaker 6: Specifically. I knew investing was cool, but I.

493
00:23:33,000 --> 00:23:35,760
Speaker 7: Wanted to figure out how to be a developer because

494
00:23:36,119 --> 00:23:38,879
Speaker 7: the fees associated with it are great. You know, just

495
00:23:38,880 --> 00:23:41,359
Speaker 7: to break it down, for real developer doesn't get a

496
00:23:41,400 --> 00:23:44,320
Speaker 7: forty million dollar payment or anything like that. But you

497
00:23:45,359 --> 00:23:47,520
Speaker 7: on the market right side, you may see three to

498
00:23:47,560 --> 00:23:50,480
Speaker 7: six percent of the total costs. So if you're working

499
00:23:50,480 --> 00:23:53,480
Speaker 7: on a one hundred million dollar deal, do the math.

500
00:23:54,280 --> 00:23:56,680
Speaker 7: On the affordable side, you get about ten to fifteen

501
00:23:56,720 --> 00:24:01,280
Speaker 7: percent tennis to see really on the total project costs.

502
00:24:01,800 --> 00:24:05,680
Speaker 7: So you so so so if you do a forty

503
00:24:05,680 --> 00:24:07,200
Speaker 7: million dollar deal, you get ten percent.

504
00:24:07,280 --> 00:24:10,840
Speaker 5: That's four million dollars correct.

505
00:24:10,720 --> 00:24:16,200
Speaker 7: Yeah, yes, to ten to fifteen percent depending on what.

506
00:24:19,119 --> 00:24:20,480
Speaker 3: He took a ladder.

507
00:24:22,040 --> 00:24:29,760
Speaker 7: Somewhere, don't load somewhere around, respected respect it. So so

508
00:24:29,760 --> 00:24:31,520
Speaker 7: so to that point it was like, okay, let me

509
00:24:31,560 --> 00:24:33,600
Speaker 7: figure out how to do this development thing. I worked

510
00:24:33,600 --> 00:24:35,680
Speaker 7: in his model. Boom boom, boom bom. I saw the numbers.

511
00:24:35,680 --> 00:24:37,600
Speaker 7: So I'm like, oh, that making some real life money

512
00:24:37,600 --> 00:24:41,240
Speaker 7: in this thing. So figured it out, so I start working.

513
00:24:41,880 --> 00:24:44,240
Speaker 7: I met with him again, showed him and it was terrible.

514
00:24:44,320 --> 00:24:48,520
Speaker 7: He helped me met a consultant that does development consultant

515
00:24:48,680 --> 00:24:53,240
Speaker 7: and she was actually CPA as well, Charlena Brown basedide

516
00:24:53,240 --> 00:24:56,280
Speaker 7: of Atlanta. She helped me hone my skills when it

517
00:24:56,320 --> 00:24:58,960
Speaker 7: came to my performer, my model. So what we did

518
00:24:59,119 --> 00:25:01,119
Speaker 7: was just I was I would try to work in it.

519
00:25:01,119 --> 00:25:02,520
Speaker 7: I would send it to her, she would edit it,

520
00:25:02,560 --> 00:25:06,360
Speaker 7: send it back, and eventually I got good. It's like okay, yeah,

521
00:25:06,359 --> 00:25:07,639
Speaker 7: I know how to do a project. So then I

522
00:25:07,640 --> 00:25:09,800
Speaker 7: started looking for a project. So are you doing this

523
00:25:09,880 --> 00:25:12,840
Speaker 7: on a platform? What's the Excel? Microsoft ex sale? That

524
00:25:12,920 --> 00:25:14,800
Speaker 7: was on my computer? You could one hundred out a

525
00:25:14,800 --> 00:25:18,159
Speaker 7: computer from best Buy, download ex sale and you working.

526
00:25:18,720 --> 00:25:21,639
Speaker 6: That's it. That's it. You don't need any anything else.

527
00:25:22,080 --> 00:25:25,040
Speaker 7: So I'm just teaching myself all the language, teaching myself

528
00:25:25,240 --> 00:25:26,240
Speaker 7: how to do things.

529
00:25:28,200 --> 00:25:30,399
Speaker 6: So I started swinging at projects and I was missing.

530
00:25:31,000 --> 00:25:31,840
Speaker 6: But it was one.

531
00:25:32,000 --> 00:25:34,520
Speaker 7: It was a city on RFP request for a proposal,

532
00:25:34,600 --> 00:25:36,280
Speaker 7: very similar to the one that I just wanted Madison.

533
00:25:38,760 --> 00:25:39,200
Speaker 6: That one.

534
00:25:39,440 --> 00:25:42,080
Speaker 7: I ended up pitching it to a developer and I'm like, yo,

535
00:25:42,160 --> 00:25:45,240
Speaker 7: let's co develop this project. Here's my model for it.

536
00:25:45,640 --> 00:25:47,880
Speaker 7: Would you guys be willing to split the developer fee

537
00:25:47,880 --> 00:25:48,560
Speaker 7: and the ownership?

538
00:25:48,600 --> 00:25:49,359
Speaker 5: The model is?

539
00:25:49,400 --> 00:25:52,160
Speaker 7: What's what's the model is another name for the pro former?

540
00:25:52,240 --> 00:25:53,680
Speaker 5: My bad, what's the performer?

541
00:25:53,960 --> 00:25:57,040
Speaker 7: The performer is the business plan for real estate development

542
00:25:57,520 --> 00:25:58,159
Speaker 7: in the Excel.

543
00:25:58,240 --> 00:26:00,359
Speaker 3: In my mind, I'm taking developer, performer.

544
00:26:00,160 --> 00:26:03,600
Speaker 7: And model are They're the same thing? So I'm using

545
00:26:03,640 --> 00:26:06,360
Speaker 7: them interchangeably. So it's like it's like the blueprint. It's

546
00:26:06,400 --> 00:26:10,480
Speaker 7: the blueprint, the financial blueprint, financial blueprint for real estate development.

547
00:26:11,119 --> 00:26:13,320
Speaker 4: How does developer do the physical blueprint as well? Or

548
00:26:13,359 --> 00:26:14,840
Speaker 4: that's going to be somebody down the line with.

549
00:26:15,480 --> 00:26:19,080
Speaker 7: We outsourced some Some development shops can have an architectural

550
00:26:19,119 --> 00:26:21,720
Speaker 7: person on hand, but I outsource it.

551
00:26:21,840 --> 00:26:24,679
Speaker 2: So all right, So you you study, you learn, you

552
00:26:24,760 --> 00:26:27,920
Speaker 2: learn how to make a financial blueprint for a project

553
00:26:28,160 --> 00:26:30,399
Speaker 2: like this is my vision, this is financially how it

554
00:26:30,440 --> 00:26:33,119
Speaker 2: makes sense. You don't have any experience. So you go

555
00:26:33,240 --> 00:26:37,320
Speaker 2: to another established developer. They've done it all, they've done

556
00:26:37,359 --> 00:26:39,800
Speaker 2: it already, and you say, I already have the blueprint,

557
00:26:40,480 --> 00:26:42,000
Speaker 2: let's work together, and this week is split.

558
00:26:42,480 --> 00:26:42,680
Speaker 6: Yeah.

559
00:26:42,800 --> 00:26:45,600
Speaker 7: So so now I'm creating value. That's the key to

560
00:26:45,640 --> 00:26:47,720
Speaker 7: get any partnership. You have to create value for the

561
00:26:47,760 --> 00:26:49,679
Speaker 7: other person. It's not about what you want, is what

562
00:26:49,720 --> 00:26:51,280
Speaker 7: they want and how can you give it for them?

563
00:26:51,880 --> 00:26:52,080
Speaker 6: Right?

564
00:26:52,160 --> 00:26:54,680
Speaker 7: So it's like, okay, I mean, I'm gonna give you

565
00:26:54,680 --> 00:26:56,320
Speaker 7: all a real number. So I think that project was

566
00:26:56,520 --> 00:26:58,080
Speaker 7: let's say ten million dollars. It was a ten million

567
00:26:58,119 --> 00:27:01,440
Speaker 7: dollars deal. You know, nine was twelve percent So we

568
00:27:01,440 --> 00:27:04,119
Speaker 7: was at one point two and I'm like, all right, well,

569
00:27:04,400 --> 00:27:05,159
Speaker 7: can we go.

570
00:27:05,040 --> 00:27:09,520
Speaker 6: Fifty to fifty on it? All right, let's have let's

571
00:27:09,600 --> 00:27:11,520
Speaker 6: take a risk, let's let's apply for it.

572
00:27:11,520 --> 00:27:13,640
Speaker 7: See if we get it. If so, let's trigger it out.

573
00:27:13,680 --> 00:27:16,719
Speaker 7: If not, cool, keep it pushing. So I pitched it,

574
00:27:18,119 --> 00:27:21,200
Speaker 7: and at that point I knew it's like, wait a minute,

575
00:27:21,240 --> 00:27:24,879
Speaker 7: I just created six hundred thousand dollars just from my mind.

576
00:27:24,800 --> 00:27:27,639
Speaker 6: With a developer that does this for real, so I

577
00:27:27,680 --> 00:27:28,400
Speaker 6: cannot do it.

578
00:27:28,520 --> 00:27:32,119
Speaker 7: I was probably like twenty four, twenty five maybe, so

579
00:27:32,200 --> 00:27:33,480
Speaker 7: that was the first time I actually knew.

580
00:27:33,680 --> 00:27:36,960
Speaker 6: Shortly thereafter I actually took a job. It was very intentional.

581
00:27:37,080 --> 00:27:39,760
Speaker 3: So a twenty four you got the six hundred Nah.

582
00:27:39,960 --> 00:27:41,919
Speaker 7: That never went through work, that never worked out, but

583
00:27:41,920 --> 00:27:43,480
Speaker 7: they agreed to it. But they agreed to it, and

584
00:27:43,480 --> 00:27:45,520
Speaker 7: that's all I needed to know that I can do possible.

585
00:27:45,600 --> 00:27:48,200
Speaker 7: It was possible at that point. I'm here, I'm a developer.

586
00:27:48,240 --> 00:27:48,919
Speaker 5: Now you can't.

587
00:27:49,160 --> 00:27:52,679
Speaker 7: Ain't nobody taking this from me. So I ended up

588
00:27:52,720 --> 00:27:54,800
Speaker 7: getting a job surely there after. I didn't get that

589
00:27:55,000 --> 00:27:57,159
Speaker 7: money was running low. Yeah, I had the you know,

590
00:27:57,240 --> 00:27:59,480
Speaker 7: four unit things like that. That was fine, but I

591
00:27:59,480 --> 00:28:02,680
Speaker 7: got a job working at a cd OFFI a real job,

592
00:28:03,000 --> 00:28:05,320
Speaker 7: A real job, Okay, yeah, real job. What's a cd

593
00:28:05,840 --> 00:28:08,560
Speaker 7: A CD of FI is a community development financial institution.

594
00:28:08,640 --> 00:28:10,360
Speaker 5: Oh yeah, we we just learned about that. Yeah.

595
00:28:10,400 --> 00:28:12,840
Speaker 6: Sorry about I'm I'm a slow learner.

596
00:28:13,240 --> 00:28:14,160
Speaker 3: Yeah, I think I heard.

597
00:28:14,680 --> 00:28:15,600
Speaker 6: There was a young lady.

598
00:28:17,320 --> 00:28:19,440
Speaker 4: There was a young lady here was talking just about

599
00:28:19,440 --> 00:28:23,919
Speaker 4: the CDFIs, right, so bright.

600
00:28:23,240 --> 00:28:27,480
Speaker 7: Yeah, shout out to the bright woman. Uh so, yeah,

601
00:28:27,480 --> 00:28:30,119
Speaker 7: I worked. I ended up getting a job. It was

602
00:28:30,160 --> 00:28:32,600
Speaker 7: actually half time for two CDFIs. I was the only

603
00:28:32,640 --> 00:28:35,120
Speaker 7: person in the country to do this. But I worked

604
00:28:35,119 --> 00:28:39,080
Speaker 7: for Forward Community Investments. They were a mission based community

605
00:28:39,200 --> 00:28:42,760
Speaker 7: lender that provided loans to small businesses and then in

606
00:28:42,840 --> 00:28:46,920
Speaker 7: Community Reinvestment Fund. They were a national nonprofit that did

607
00:28:46,920 --> 00:28:48,920
Speaker 7: the same thing in a different way. So one was

608
00:28:48,920 --> 00:28:51,960
Speaker 7: a state based focused on Wisconsin. The other one was national,

609
00:28:52,320 --> 00:28:55,680
Speaker 7: also targeting Milwaukee. So I worked at home. I worked remotely,

610
00:28:55,760 --> 00:28:57,520
Speaker 7: so I was really more of a contractor for real.

611
00:28:57,920 --> 00:29:00,440
Speaker 7: I worked remotely from home for both of these comes companies,

612
00:29:01,320 --> 00:29:05,160
Speaker 7: really going out doing technical assistance with businesses and understanding

613
00:29:05,680 --> 00:29:09,360
Speaker 7: what the gaps were that why aren't we giving this

614
00:29:09,440 --> 00:29:12,760
Speaker 7: money out? Like I had access to one of them

615
00:29:12,800 --> 00:29:16,800
Speaker 7: was from fifty thousand to five million dollars in lending.

616
00:29:16,960 --> 00:29:19,760
Speaker 7: That was my lending capacity personally, I can like give

617
00:29:19,760 --> 00:29:20,680
Speaker 7: that out to businesses.

618
00:29:20,680 --> 00:29:21,840
Speaker 6: So I was like, oh, this is great.

619
00:29:22,000 --> 00:29:23,600
Speaker 7: It was very much so aligned with my vision and

620
00:29:23,640 --> 00:29:25,520
Speaker 7: my mission, and I was able to sit in on

621
00:29:25,560 --> 00:29:28,560
Speaker 7: the credit committees of these different companies. So when it

622
00:29:28,600 --> 00:29:32,040
Speaker 7: came to like applying for loans and applying for some

623
00:29:32,080 --> 00:29:34,160
Speaker 7: of these things, I knew exactly what they were looking

624
00:29:34,200 --> 00:29:35,280
Speaker 7: for because I was sitting in there.

625
00:29:35,280 --> 00:29:36,480
Speaker 6: So I worked there for two years.

626
00:29:36,800 --> 00:29:40,080
Speaker 3: Who what type of clientele or clients to what you're seeing?

627
00:29:40,920 --> 00:29:45,000
Speaker 7: Primarily business? For Community Grein Investment CRF, it was business clients.

628
00:29:45,040 --> 00:29:48,240
Speaker 7: So I was looking at bars, I was looking at pubs,

629
00:29:48,240 --> 00:29:52,760
Speaker 7: I was looking at cleaning companies, I was looking at

630
00:29:53,360 --> 00:29:55,960
Speaker 7: It was a full gamut. And then for community investments

631
00:29:56,400 --> 00:29:58,480
Speaker 7: it was more so real estate base for real So.

632
00:29:58,960 --> 00:30:01,479
Speaker 2: You was on the inside the of the institution and

633
00:30:01,520 --> 00:30:04,240
Speaker 2: you you knew what they were looking for to lend money.

634
00:30:04,880 --> 00:30:08,680
Speaker 2: You used that when you left to get them to

635
00:30:08,720 --> 00:30:10,360
Speaker 2: lend you money because you alreadyknew what they were looking for.

636
00:30:11,640 --> 00:30:15,080
Speaker 6: It didn't really work out that way. That was the idea.

637
00:30:15,240 --> 00:30:17,240
Speaker 7: But now I know how all of the groups worked

638
00:30:17,240 --> 00:30:19,280
Speaker 7: the same, So yeah, I used that same tactic to

639
00:30:19,360 --> 00:30:20,360
Speaker 7: get all of the rest of it.

640
00:30:20,680 --> 00:30:24,040
Speaker 2: What were they looking for, like, what made you attractive?

641
00:30:24,120 --> 00:30:26,400
Speaker 2: Not you, I'm just saying, we'll make somebody attractive to somebody.

642
00:30:26,560 --> 00:30:29,920
Speaker 7: Honestly, it's a huge gap. So I thought that I

643
00:30:29,960 --> 00:30:31,600
Speaker 7: would be given out a ton of money. But and

644
00:30:31,680 --> 00:30:33,479
Speaker 7: I had access to the capitol, but I couldn't give

645
00:30:33,480 --> 00:30:35,920
Speaker 7: it out what they were looking for. It was a disconnect.

646
00:30:35,960 --> 00:30:39,000
Speaker 7: It's like our people are here and their money is here.

647
00:30:40,280 --> 00:30:41,720
Speaker 7: And I felt like it was my duty to kind

648
00:30:41,720 --> 00:30:43,840
Speaker 7: of like bridge that gap. But that gap so they

649
00:30:43,880 --> 00:30:47,600
Speaker 7: were looking for honestly, pretty traditional.

650
00:30:47,200 --> 00:30:47,760
Speaker 6: Things, you know.

651
00:30:47,880 --> 00:30:53,160
Speaker 7: It's like reserves, some serve some you know may or

652
00:30:53,200 --> 00:30:54,960
Speaker 7: may not do a startup, so you might have to

653
00:30:55,040 --> 00:30:59,000
Speaker 7: have some income. Collateral is the biggest thing in our community.

654
00:30:59,480 --> 00:31:01,960
Speaker 7: That was that's the biggest guy. We don't have collateral.

655
00:31:02,200 --> 00:31:05,640
Speaker 7: If you think about history, a lot of businesses were

656
00:31:05,680 --> 00:31:08,960
Speaker 7: funded because people owned real estate. Right you were able

657
00:31:09,000 --> 00:31:13,480
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658
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659
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660
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661
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662
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663
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664
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Speaker 7: It's such an access to capital gap, which there is,

716
00:34:21,840 --> 00:34:23,680
Speaker 7: but on the other side they're streaming, Oh, we have

717
00:34:23,760 --> 00:34:27,040
Speaker 7: so much money and we can't deploy it. That's what

718
00:34:27,160 --> 00:34:29,600
Speaker 7: happens every single time you talk to anyone in that industry,

719
00:34:29,640 --> 00:34:30,600
Speaker 7: and that's what they're going to tell you.

720
00:34:31,760 --> 00:34:34,360
Speaker 2: All right, all right that So now we're going to

721
00:34:34,440 --> 00:34:36,120
Speaker 2: go into the next seven. We're going to talk about

722
00:34:37,080 --> 00:34:40,120
Speaker 2: like your journey into developing, like how you find a

723
00:34:40,200 --> 00:34:41,680
Speaker 2: deal like all of.

724
00:34:41,719 --> 00:34:44,600
Speaker 5: The one O one on on the on the whole, Yeah,

725
00:34:44,680 --> 00:34:45,680
Speaker 5: on the whole, on the whole deal.

726
00:34:45,800 --> 00:34:47,719
Speaker 2: Okay, do that next, Yeah, let's break it down then

727
00:34:47,760 --> 00:34:49,440
Speaker 2: all right, all right, so now we now we're going

728
00:34:49,480 --> 00:34:52,799
Speaker 2: to ask a few questions that I think people will

729
00:34:52,840 --> 00:34:54,839
Speaker 2: be interested in as far as you know. One thing

730
00:34:54,880 --> 00:34:57,400
Speaker 2: with ey Ls, we like we talk about different topics

731
00:34:57,440 --> 00:34:59,560
Speaker 2: that nobody really knows. Is like, don't really have an

732
00:34:59,640 --> 00:35:02,719
Speaker 2: education all this stuff. So as a real estate developer, right,

733
00:35:04,840 --> 00:35:08,600
Speaker 2: so you you do the financial blueprint, but now you

734
00:35:08,680 --> 00:35:11,080
Speaker 2: actually have to develop it. But development costs a lot

735
00:35:11,120 --> 00:35:16,080
Speaker 2: of money to scale these projects, right, so how like,

736
00:35:16,719 --> 00:35:19,640
Speaker 2: how does that part of it work as far as

737
00:35:19,680 --> 00:35:24,120
Speaker 2: the construction aspect of it and actually developed it?

738
00:35:24,400 --> 00:35:26,440
Speaker 3: Because in my mind I'm thinking of development.

739
00:35:26,760 --> 00:35:29,160
Speaker 4: Yeah, you're making the financial blueprint, but I'm like, you're

740
00:35:29,239 --> 00:35:33,719
Speaker 4: not even seeing a physical output before you start or

741
00:35:33,760 --> 00:35:35,719
Speaker 4: do you know, like what you want this space to

742
00:35:35,800 --> 00:35:37,040
Speaker 4: look like going in?

743
00:35:37,560 --> 00:35:39,000
Speaker 6: Yeah? You create? You created it.

744
00:35:39,080 --> 00:35:41,000
Speaker 7: So the developer is the one that creates the vision

745
00:35:41,040 --> 00:35:44,000
Speaker 7: in his mind. Very similar to a director of a movie. Right, Okay,

746
00:35:44,280 --> 00:35:48,080
Speaker 7: Like they don't they don't. They're not the actor, they're

747
00:35:48,120 --> 00:35:53,160
Speaker 7: not the they're not the scriptwriter oftentimes, but they bring

748
00:35:53,239 --> 00:35:54,880
Speaker 7: it all to fruition and this is the way that

749
00:35:54,960 --> 00:35:57,400
Speaker 7: it needs to go. So a developer, let's rewind a

750
00:35:57,400 --> 00:36:02,120
Speaker 7: little bit real estate development is a business process that

751
00:36:02,320 --> 00:36:06,560
Speaker 7: takes land and you put real estate on it.

752
00:36:06,680 --> 00:36:08,520
Speaker 6: So very simple. There go a little deeper.

753
00:36:08,560 --> 00:36:11,040
Speaker 7: So I'm a commercial real estate developer, so I'm pretty

754
00:36:11,080 --> 00:36:14,319
Speaker 7: much doing that at just a larger scale. And there's

755
00:36:14,360 --> 00:36:18,040
Speaker 7: different sections of it, right, So I guess let's say

756
00:36:18,120 --> 00:36:20,280
Speaker 7: break it down into three phases. There's a pre development

757
00:36:20,320 --> 00:36:23,800
Speaker 7: phase where you do the design and you get the

758
00:36:23,880 --> 00:36:26,160
Speaker 7: financials in order and you talk through some of those things.

759
00:36:26,600 --> 00:36:28,760
Speaker 7: The second phase of the construction phase, to your point,

760
00:36:29,040 --> 00:36:31,760
Speaker 7: that's when you go and you're actually building the project

761
00:36:31,840 --> 00:36:34,320
Speaker 7: and you're managing the budget to make sure that this

762
00:36:34,440 --> 00:36:38,080
Speaker 7: is on time and on budget, because if the cost

763
00:36:38,120 --> 00:36:40,480
Speaker 7: of your development is more than what you anticipated, then

764
00:36:41,440 --> 00:36:43,680
Speaker 7: when the recession hit, that's kind of what happened, Like

765
00:36:43,840 --> 00:36:46,120
Speaker 7: you saw buildings that were halfway developed and people stepped

766
00:36:46,120 --> 00:36:49,800
Speaker 7: away because there was not enough money to continue to

767
00:36:50,000 --> 00:36:52,800
Speaker 7: the project, complete the project. And then the last phase

768
00:36:52,840 --> 00:36:56,120
Speaker 7: is operation. It's a pre development, construction, and operation. A

769
00:36:56,200 --> 00:37:01,400
Speaker 7: developer pretty much runs that entire phase from beginning to end.

770
00:37:02,120 --> 00:37:05,600
Speaker 7: So let's break them down. Predevelopment phase you have I

771
00:37:05,760 --> 00:37:10,600
Speaker 7: typically start off with zoning and entitlement. It's like Okay,

772
00:37:10,680 --> 00:37:13,000
Speaker 7: I have a piece of land here. How large is

773
00:37:13,880 --> 00:37:16,239
Speaker 7: Let's say it's an acre of land. Okay, based on

774
00:37:16,360 --> 00:37:18,080
Speaker 7: this acre, what is it zone?

775
00:37:18,160 --> 00:37:19,120
Speaker 6: For? What can I do here?

776
00:37:19,400 --> 00:37:22,200
Speaker 7: My base is typically multifamily, so it's like, okay, how

777
00:37:22,239 --> 00:37:25,480
Speaker 7: many units can I put on here? Let's say you

778
00:37:25,520 --> 00:37:30,240
Speaker 7: know an acre is forty three thousand square feet Depending

779
00:37:30,280 --> 00:37:32,920
Speaker 7: on where you are, they based zoning off of Florida

780
00:37:33,000 --> 00:37:37,120
Speaker 7: area ratio, So this thing called far. So let's say

781
00:37:37,120 --> 00:37:42,560
Speaker 7: it's two times far, so you can put if it's

782
00:37:42,560 --> 00:37:47,040
Speaker 7: an FAR two, you can put a eight six thousand

783
00:37:47,160 --> 00:37:51,160
Speaker 7: square foot building on this parcel. And then you reverse

784
00:37:51,200 --> 00:37:53,560
Speaker 7: engineer how many units you can fit there, so eighty

785
00:37:53,600 --> 00:37:55,799
Speaker 7: two thousand square feet depending on the unit side, if

786
00:37:55,800 --> 00:37:57,000
Speaker 7: they're one in two bedrooms, you.

787
00:37:57,000 --> 00:37:59,960
Speaker 6: May be able to get ninety units. If they're you know, three.

788
00:38:00,040 --> 00:38:03,440
Speaker 7: Four bedrooms, you may be able to get sixty units.

789
00:38:03,920 --> 00:38:06,560
Speaker 7: And then based on the program, you create a vision

790
00:38:06,680 --> 00:38:10,319
Speaker 7: around what is attainable for the site. So I start

791
00:38:10,360 --> 00:38:12,200
Speaker 7: with the zoning and it's like okay, yeah, what can

792
00:38:12,239 --> 00:38:16,200
Speaker 7: I do? And then based on the zoning, I create

793
00:38:16,239 --> 00:38:19,000
Speaker 7: a financial model and dig a little deeper. And then

794
00:38:19,000 --> 00:38:21,160
Speaker 7: that's when I reach out to consultants to do some

795
00:38:21,280 --> 00:38:24,000
Speaker 7: of the other work. It's like, hey, architects, I want

796
00:38:24,040 --> 00:38:25,719
Speaker 7: to put seventy units right here?

797
00:38:26,400 --> 00:38:28,560
Speaker 6: Can I do that? What does that look like? You know?

798
00:38:29,920 --> 00:38:31,560
Speaker 6: Can I do underground parking here? Can I?

799
00:38:31,680 --> 00:38:34,040
Speaker 7: Can I have surface parking? How many stars can I fit?

800
00:38:34,480 --> 00:38:38,320
Speaker 7: And that kind of changes the iteration of that financial

801
00:38:38,440 --> 00:38:40,520
Speaker 7: model that I was working on. Okay, let me change

802
00:38:40,560 --> 00:38:41,040
Speaker 7: itself a little.

803
00:38:41,080 --> 00:38:43,640
Speaker 3: How long does that first that preprocess.

804
00:38:43,040 --> 00:38:47,080
Speaker 6: Take for you? No time for real at this point.

805
00:38:47,200 --> 00:38:49,400
Speaker 6: A couple of hours hours, A couple of hours.

806
00:38:49,480 --> 00:38:49,680
Speaker 3: Wow.

807
00:38:49,960 --> 00:38:52,040
Speaker 2: So that's and then the third second, third one is

808
00:38:52,120 --> 00:38:53,720
Speaker 2: the actual development right construction.

809
00:38:54,320 --> 00:38:57,080
Speaker 6: Second one is construction. So we're not even in construction yet.

810
00:38:57,160 --> 00:39:00,799
Speaker 7: So that's that's early, early, initial, just pre and then

811
00:39:00,880 --> 00:39:02,759
Speaker 7: what you do is like okay, I think I'm onto something.

812
00:39:03,000 --> 00:39:05,239
Speaker 7: And then you go get the site under control, so

813
00:39:05,320 --> 00:39:07,440
Speaker 7: you reach out to the land own er. Is it available?

814
00:39:07,760 --> 00:39:09,960
Speaker 7: Is it private? Is it public? Is it If it's

815
00:39:10,000 --> 00:39:12,279
Speaker 7: public land? Sometime they have RFPs and that's what I

816
00:39:12,360 --> 00:39:14,920
Speaker 7: was awarded with the forty one million. I was awarded

817
00:39:15,000 --> 00:39:16,840
Speaker 7: that land to now develop.

818
00:39:16,480 --> 00:39:18,040
Speaker 6: It by the state or the city.

819
00:39:18,239 --> 00:39:20,560
Speaker 7: That was city owned, but sometimes it's state owned. Sometimes

820
00:39:20,560 --> 00:39:21,880
Speaker 7: it's city, sometime it's county.

821
00:39:22,200 --> 00:39:22,680
Speaker 6: It varies.

822
00:39:23,600 --> 00:39:25,759
Speaker 7: So that was public, that's a public private partnership in

823
00:39:25,800 --> 00:39:29,799
Speaker 7: that way. But sometimes it's private. So when it's private land,

824
00:39:30,320 --> 00:39:34,600
Speaker 7: that's when you it's a little more difficult. Ah. Yeah,

825
00:39:34,600 --> 00:39:38,560
Speaker 7: it's a little more difficult because people value their land

826
00:39:38,760 --> 00:39:40,720
Speaker 7: the way that they value their land. It's no different

827
00:39:40,719 --> 00:39:43,680
Speaker 7: from a property. If you own a home, you may

828
00:39:43,760 --> 00:39:46,240
Speaker 7: feel like your home is worth five hundred thousand dollars.

829
00:39:46,680 --> 00:39:49,440
Speaker 7: The appraisal may say your home is worth two hundred

830
00:39:49,760 --> 00:39:53,120
Speaker 7: or one hundred. So when you go to that individual

831
00:39:53,160 --> 00:39:55,160
Speaker 7: and say, hey, this is my plan for this site,

832
00:39:56,040 --> 00:39:58,520
Speaker 7: y'all have to have some level of common ground to

833
00:39:58,680 --> 00:40:01,480
Speaker 7: make sure that this works because if they want five

834
00:40:01,600 --> 00:40:04,680
Speaker 7: times your number, it's not feasible you move on that

835
00:40:04,880 --> 00:40:07,360
Speaker 7: vision can't come to fruition because this is not a roadblock.

836
00:40:08,480 --> 00:40:10,960
Speaker 7: And then once once you then okay, yeah, I think

837
00:40:11,000 --> 00:40:13,320
Speaker 7: this will work around this price, I'll give you X

838
00:40:13,400 --> 00:40:13,600
Speaker 7: for it.

839
00:40:14,280 --> 00:40:16,719
Speaker 6: You want X fo it? Okay. What's the timing in DC?

840
00:40:18,920 --> 00:40:21,120
Speaker 7: I mean typically you gotta have a thirty day close,

841
00:40:21,200 --> 00:40:24,200
Speaker 7: sixty day close, like a quick no contingencies, no nothing.

842
00:40:24,560 --> 00:40:27,239
Speaker 7: In Wisconsin, I could you know sometime do a year

843
00:40:27,280 --> 00:40:30,200
Speaker 7: and a half without having to close on the financing.

844
00:40:30,520 --> 00:40:32,759
Speaker 7: And by close, I mean actually pay for the land.

845
00:40:33,239 --> 00:40:38,360
Speaker 7: You pay for the land typically when your financial at

846
00:40:38,440 --> 00:40:42,720
Speaker 7: construction start. So when you close on all your finances,

847
00:40:42,760 --> 00:40:45,320
Speaker 7: I got every all my ducks in the row. It

848
00:40:45,440 --> 00:40:47,320
Speaker 7: all comes to the table at the same time, and

849
00:40:47,400 --> 00:40:49,399
Speaker 7: it goes out to the various parties, one of those

850
00:40:49,440 --> 00:40:52,080
Speaker 7: parties being the land owner. They could walk away. I

851
00:40:52,160 --> 00:40:54,640
Speaker 7: now purchase it. I now can start construction, which is

852
00:40:54,719 --> 00:40:55,399
Speaker 7: now phase two.

853
00:40:55,560 --> 00:40:57,960
Speaker 4: So when you're in that phase and you try to

854
00:40:58,000 --> 00:40:59,920
Speaker 4: get the land, what's the bidding process?

855
00:41:00,040 --> 00:41:03,759
Speaker 3: Right? So you wore rewarded, awarded, all warded to land,

856
00:41:04,719 --> 00:41:06,040
Speaker 3: what kind of explained.

857
00:41:05,760 --> 00:41:06,200
Speaker 6: What that means.

858
00:41:06,239 --> 00:41:08,000
Speaker 3: But what's the process of bidding for it?

859
00:41:08,160 --> 00:41:12,160
Speaker 6: Yep too. So on the private side, no process. It's

860
00:41:12,200 --> 00:41:13,960
Speaker 6: just one to one. Can I buy this from you?

861
00:41:14,080 --> 00:41:14,239
Speaker 6: Or no?

862
00:41:15,400 --> 00:41:17,880
Speaker 7: And I've been told no because of my age and

863
00:41:17,960 --> 00:41:21,840
Speaker 7: my color before, to be honest. But on the public side,

864
00:41:22,280 --> 00:41:27,560
Speaker 7: they typically put out a list of priorities that they want.

865
00:41:28,000 --> 00:41:31,120
Speaker 7: The most recent one, my eighty nine unit, was a

866
00:41:31,160 --> 00:41:35,400
Speaker 7: public public partnership and they just wanted to redevelopment of

867
00:41:35,440 --> 00:41:38,160
Speaker 7: a blighted site. It was half a mile away from

868
00:41:38,200 --> 00:41:39,640
Speaker 7: where I was raised, and I wanted to develop it,

869
00:41:39,640 --> 00:41:41,320
Speaker 7: so I put eighty nine units before the bahausand in

870
00:41:41,360 --> 00:41:44,400
Speaker 7: my hood, that's what I did, and they agree with

871
00:41:44,480 --> 00:41:47,320
Speaker 7: my plan. It wasn't very competitive and that was that.

872
00:41:47,600 --> 00:41:49,280
Speaker 7: But there are other ones like the one in Madison,

873
00:41:49,320 --> 00:41:52,759
Speaker 7: and I just won. It was very, very competitive. They

874
00:41:52,840 --> 00:41:56,600
Speaker 7: had multiple rounds of RFPs. What's the RFP again, request

875
00:41:56,680 --> 00:41:59,359
Speaker 7: for a proposal. So that's when the city says, hey,

876
00:41:59,840 --> 00:42:02,399
Speaker 7: these these are our priorities for this site.

877
00:42:02,520 --> 00:42:04,239
Speaker 6: We own in site. We don't want to own the site.

878
00:42:04,360 --> 00:42:06,839
Speaker 7: Cities often don't want to own sites because they want

879
00:42:06,880 --> 00:42:09,920
Speaker 7: to benefit from the tax revenue from it. It's not

880
00:42:10,040 --> 00:42:12,239
Speaker 7: in their best interest to pay the upkeep. It's a

881
00:42:12,280 --> 00:42:15,960
Speaker 7: lot of risk associated with owning land, so cities often

882
00:42:16,120 --> 00:42:19,680
Speaker 7: try to partner and sell and you do things like that.

883
00:42:19,840 --> 00:42:23,120
Speaker 7: So that this priority specifically, they wanted a grocery store.

884
00:42:23,400 --> 00:42:25,839
Speaker 7: The site right next door is a pick and Save

885
00:42:26,560 --> 00:42:30,200
Speaker 7: Roundings was just acquired by Kroger and they're shutting that

886
00:42:30,239 --> 00:42:32,080
Speaker 7: Picking Saved down. So now this area is about to

887
00:42:32,120 --> 00:42:35,880
Speaker 7: be a food desert. So the city was like, okay,

888
00:42:36,000 --> 00:42:39,800
Speaker 7: in order for us to preserve some level of grocery

889
00:42:39,840 --> 00:42:41,919
Speaker 7: in this area, we need to put out an RFP.

890
00:42:42,480 --> 00:42:44,560
Speaker 7: So that was their number one priority or a grocery store.

891
00:42:45,040 --> 00:42:49,360
Speaker 7: Second was affordable housing and some level of housing and density.

892
00:42:49,480 --> 00:42:52,200
Speaker 7: So I put together the best plan to bring that

893
00:42:52,280 --> 00:42:53,759
Speaker 7: grocery store in the quickest amount of time.

894
00:42:54,000 --> 00:42:57,560
Speaker 2: So, all right, they need a grocery store. They are identified.

895
00:42:57,560 --> 00:43:00,279
Speaker 2: They need a grocery store. While they just youach out

896
00:43:00,280 --> 00:43:02,360
Speaker 2: to the grocery stores directly, why then they developer?

897
00:43:02,560 --> 00:43:03,480
Speaker 6: They did.

898
00:43:03,920 --> 00:43:07,200
Speaker 7: Grocery stores often don't develop their own land either, they least,

899
00:43:07,960 --> 00:43:14,520
Speaker 7: you know, so a developer developer. A developer manages that process.

900
00:43:14,960 --> 00:43:17,719
Speaker 7: Businesses don't typically manage that process. You know, if you

901
00:43:17,760 --> 00:43:22,239
Speaker 7: think about Apple, Apple isn't going to like build their

902
00:43:22,320 --> 00:43:25,960
Speaker 7: own headquarters. They're going to hire some consultants or a

903
00:43:26,040 --> 00:43:28,680
Speaker 7: developer to build it for them. So that's an RFP

904
00:43:28,800 --> 00:43:30,920
Speaker 7: can be in that way too. So that said, it's

905
00:43:30,960 --> 00:43:33,280
Speaker 7: of interest for them to align themselves with a developer

906
00:43:33,320 --> 00:43:35,160
Speaker 7: who has the capacity to do this because it's not

907
00:43:35,680 --> 00:43:38,800
Speaker 7: something that just easily can be done, got it.

908
00:43:38,920 --> 00:43:39,640
Speaker 6: They can't just do it.

909
00:43:39,880 --> 00:43:44,360
Speaker 7: So phase two, the construction phase, can talk about that. Yeah, construction,

910
00:43:44,480 --> 00:43:47,480
Speaker 7: So each each phase is a little less risky. So

911
00:43:47,640 --> 00:43:51,000
Speaker 7: pre development phase is a ton of risk. I rewind

912
00:43:51,040 --> 00:43:52,719
Speaker 7: a little bit, then I'll go into it. It's a

913
00:43:52,800 --> 00:43:56,879
Speaker 7: ton of risk because you're paying a ton of consultants

914
00:43:56,920 --> 00:44:00,600
Speaker 7: to do work. You're doing environmental assessments phase one, in

915
00:44:00,640 --> 00:44:04,200
Speaker 7: the phase two ten that could be ten thousand dollars

916
00:44:04,200 --> 00:44:06,520
Speaker 7: between the two. Environmental ass that when they checking the

917
00:44:06,560 --> 00:44:10,120
Speaker 7: dirt to see and all that. Well, yeah, so environmental

918
00:44:10,200 --> 00:44:12,680
Speaker 7: that's one where they're seeing if it's contaminated. Has it

919
00:44:12,760 --> 00:44:16,400
Speaker 7: been uh, you know, was this a gas station historically?

920
00:44:17,880 --> 00:44:18,719
Speaker 6: Is this up to code?

921
00:44:18,800 --> 00:44:21,040
Speaker 7: Because you don't want those soils to rise and people

922
00:44:21,040 --> 00:44:23,200
Speaker 7: get sick and die and all that stuff. So you

923
00:44:23,280 --> 00:44:26,799
Speaker 7: pay for environmental consultants. You pay for civil consultants which

924
00:44:27,719 --> 00:44:29,799
Speaker 7: put together the design of the building and make sure

925
00:44:29,840 --> 00:44:32,560
Speaker 7: this is secure. Okay, architects design it, but the civil

926
00:44:32,640 --> 00:44:35,440
Speaker 7: engineers are saying this will be sturdy for X amount

927
00:44:35,480 --> 00:44:37,799
Speaker 7: of time, we won't have settlement, et cetera. And then

928
00:44:37,800 --> 00:44:40,920
Speaker 7: you hire geotechnical consultants to test the soil and to

929
00:44:41,040 --> 00:44:44,120
Speaker 7: see is the soil okay, you know, stuff like that.

930
00:44:44,320 --> 00:44:47,160
Speaker 7: So the soil is more so like for settlement, civil

931
00:44:47,239 --> 00:44:49,279
Speaker 7: is self for structure and longevity and things like that.

932
00:44:49,480 --> 00:44:51,600
Speaker 7: So all of those people you've got to hire prior

933
00:44:51,680 --> 00:44:56,920
Speaker 7: to getting to construction. Who's that the developer is so

934
00:44:57,120 --> 00:45:01,200
Speaker 7: yeah great, quest walk is uh yeah, but you can

935
00:45:01,320 --> 00:45:02,880
Speaker 7: you can get once you have a plan together, you

936
00:45:02,920 --> 00:45:03,600
Speaker 7: can get loans.

937
00:45:03,960 --> 00:45:04,759
Speaker 6: In theory.

938
00:45:07,360 --> 00:45:10,840
Speaker 7: They can get loans. We can't get loans. Really, they

939
00:45:10,920 --> 00:45:12,960
Speaker 7: can get loans. So I partner with the people that

940
00:45:13,000 --> 00:45:15,160
Speaker 7: can get the loans and try to I'll go into

941
00:45:15,200 --> 00:45:16,920
Speaker 7: that in a second. But you pay for all of

942
00:45:16,960 --> 00:45:20,719
Speaker 7: these consultants, even architects. All the architectural designs are pretty

943
00:45:20,760 --> 00:45:23,000
Speaker 7: renderings and all that slice. Yeah, you know, that's a

944
00:45:23,040 --> 00:45:24,680
Speaker 7: couple hundred thousand easy.

945
00:45:25,000 --> 00:45:28,359
Speaker 2: So before you get to construction, are any of these

946
00:45:29,239 --> 00:45:32,600
Speaker 2: RFPs or like, dude, does it ever come into play

947
00:45:32,680 --> 00:45:36,320
Speaker 2: with the was it MWB minority women business? Is it?

948
00:45:36,520 --> 00:45:38,560
Speaker 2: Because are they like do they have to have a

949
00:45:38,640 --> 00:45:41,840
Speaker 2: certain amount of developments that are developed by minority developers?

950
00:45:41,880 --> 00:45:42,839
Speaker 5: Is that case?

951
00:45:43,000 --> 00:45:44,799
Speaker 6: Minority developers is not a thing.

952
00:45:45,120 --> 00:45:45,640
Speaker 5: It's not a thing.

953
00:45:45,680 --> 00:45:49,240
Speaker 7: It's not a minority contractors is a thing. Minority developers

954
00:45:49,360 --> 00:45:52,520
Speaker 7: is not a thing. So I have to in my

955
00:45:52,880 --> 00:45:56,759
Speaker 7: development counterparts. Yeah, that as I'm an anomaly for real.

956
00:45:57,160 --> 00:46:00,440
Speaker 7: So I have to hire minority women veter and my

957
00:46:00,520 --> 00:46:02,960
Speaker 7: colleagues have to do the same. My counterparts do same.

958
00:46:03,239 --> 00:46:06,279
Speaker 7: We have to hire them the construction workers. Make sure

959
00:46:06,320 --> 00:46:07,680
Speaker 7: that all of the people that are part of this

960
00:46:07,719 --> 00:46:10,319
Speaker 7: team may be twenty.

961
00:46:11,440 --> 00:46:12,000
Speaker 6: Of the total.

962
00:46:12,400 --> 00:46:14,600
Speaker 7: The money that is allocated to the budget has to

963
00:46:14,640 --> 00:46:18,600
Speaker 7: go towards these groups. But there's no structure for me,

964
00:46:18,840 --> 00:46:22,120
Speaker 7: as a developer and being black, to benefit from that.

965
00:46:22,239 --> 00:46:25,080
Speaker 6: Why not that's where the most money is.

966
00:46:25,120 --> 00:46:29,839
Speaker 7: Has it ever been proposed or no, I've never heard

967
00:46:29,880 --> 00:46:34,560
Speaker 7: of it. I'm sure it has. Historic black developers aren't

968
00:46:34,600 --> 00:46:36,759
Speaker 7: a thing, not a lot of them. No, it's not

969
00:46:36,880 --> 00:46:41,880
Speaker 7: a thing because historically banks. We all know about red lining.

970
00:46:42,080 --> 00:46:43,920
Speaker 7: We all know about that. There's a book called The

971
00:46:43,960 --> 00:46:46,160
Speaker 7: Color of Law. Talk about this before, but for people

972
00:46:46,239 --> 00:46:50,200
Speaker 7: that don't know, color a law documented the government's effect

973
00:46:50,400 --> 00:46:54,839
Speaker 7: on communities and the intentionality of segregation. So what they

974
00:46:54,920 --> 00:46:59,120
Speaker 7: did was if a white developer even was developing something

975
00:46:59,719 --> 00:47:02,880
Speaker 7: that allowed a black person to live in it, HUD

976
00:47:02,920 --> 00:47:06,320
Speaker 7: would not ensure it, so the bank would not give along.

977
00:47:07,360 --> 00:47:09,600
Speaker 7: So that was for a white developer. So imagine a

978
00:47:09,680 --> 00:47:12,200
Speaker 7: black developer trying to develop something for black people. It

979
00:47:12,320 --> 00:47:15,840
Speaker 7: wasn't possible. So the Marrion Berrys of the world, and

980
00:47:16,040 --> 00:47:18,720
Speaker 7: just like H. J. Russell in Atlanta, the mayor of Atlanta,

981
00:47:18,880 --> 00:47:21,680
Speaker 7: the mayor of d C reached out and used their

982
00:47:21,719 --> 00:47:24,200
Speaker 7: political connections to bring these two people up H J.

983
00:47:24,320 --> 00:47:27,719
Speaker 7: Russell in Atlanta down peoples in d C in order

984
00:47:27,800 --> 00:47:31,760
Speaker 7: to create an economic engine in our community that allow

985
00:47:31,880 --> 00:47:34,719
Speaker 7: for growth in a way that does not exist. So

986
00:47:35,400 --> 00:47:39,800
Speaker 7: again that that's just not a thing at all, and

987
00:47:39,960 --> 00:47:42,040
Speaker 7: hopefully it can become a thing. But there's not enough

988
00:47:42,520 --> 00:47:45,040
Speaker 7: black developers. I mean, I'm at conferences all the time.

989
00:47:45,160 --> 00:47:46,800
Speaker 7: I go to real estate meet ups and everything like that.

990
00:47:47,000 --> 00:47:52,480
Speaker 7: But oftentimes it's like most folks are investors because it's

991
00:47:52,480 --> 00:47:56,000
Speaker 7: all we know. Most of the developers I know aren't.

992
00:47:56,280 --> 00:47:58,319
Speaker 7: They don't look like me. Sout out to keV Kevin

993
00:47:58,400 --> 00:48:02,279
Speaker 7: noule bro mind. He's killing it in Milwaukee right now,

994
00:48:02,760 --> 00:48:06,000
Speaker 7: absolutely killing it. He's a black developer that is doing

995
00:48:06,040 --> 00:48:09,319
Speaker 7: his thing. A couple of folks out here in DC

996
00:48:09,400 --> 00:48:13,040
Speaker 7: as well. Dr McKinney, I really respect Don Peeble's son

997
00:48:13,160 --> 00:48:15,000
Speaker 7: is actually doing development out of DC as well. So

998
00:48:15,200 --> 00:48:17,080
Speaker 7: there's some black developers like bubbling up.

999
00:48:18,520 --> 00:48:19,360
Speaker 6: But yeah, it's just not.

1000
00:48:19,719 --> 00:48:23,160
Speaker 5: How important is political political collections connections.

1001
00:48:23,280 --> 00:48:27,320
Speaker 7: Depends on where you are. I was saying Wisconsin not

1002
00:48:27,480 --> 00:48:31,440
Speaker 7: as much. Wisconsin is a very objective state. If you

1003
00:48:31,760 --> 00:48:35,600
Speaker 7: are doing if you are checking these boxes, you can

1004
00:48:35,680 --> 00:48:40,920
Speaker 7: move forward in a place. Like other places, it's not

1005
00:48:41,080 --> 00:48:48,279
Speaker 7: that objective. It's a little more subjective. Yeah, yeah, so yeah,

1006
00:48:48,880 --> 00:48:51,200
Speaker 7: I think we were talking about the construction part real quick.

1007
00:48:51,280 --> 00:48:54,320
Speaker 7: So you start off trying to pre development risk. You

1008
00:48:54,400 --> 00:48:56,960
Speaker 7: pay for all of these consultants a couple hundred thousand,

1009
00:48:58,400 --> 00:49:01,960
Speaker 7: and then at the closing table. Benefit of getting to

1010
00:49:02,040 --> 00:49:04,120
Speaker 7: the closing table is that all that risk is wiped away,

1011
00:49:05,000 --> 00:49:07,560
Speaker 7: so it's all a part of development budget. Although you're

1012
00:49:07,600 --> 00:49:11,319
Speaker 7: paying for it before it happens. You get refunded once

1013
00:49:11,440 --> 00:49:14,880
Speaker 7: all your money comes in, So the three hundred thousand

1014
00:49:14,920 --> 00:49:17,040
Speaker 7: that you had out, the million dollars that you had out,

1015
00:49:17,160 --> 00:49:19,759
Speaker 7: all comes back right there. So that's a great day.

1016
00:49:21,200 --> 00:49:23,880
Speaker 7: And then what happens in a construction phase. You have

1017
00:49:23,960 --> 00:49:28,560
Speaker 7: to mitigate that risk because you know people may not

1018
00:49:28,640 --> 00:49:31,400
Speaker 7: come to work, or the cost of something may be

1019
00:49:31,520 --> 00:49:35,439
Speaker 7: more expensive, or the design wasn't you have to change

1020
00:49:35,480 --> 00:49:37,239
Speaker 7: the design up and things like that, So you have

1021
00:49:37,360 --> 00:49:39,040
Speaker 7: to look out for all of those things before you

1022
00:49:39,160 --> 00:49:43,080
Speaker 7: get under construction, because when that construction budget gets blown up,

1023
00:49:43,440 --> 00:49:46,960
Speaker 7: it's a real thing and the first thing that goes

1024
00:49:47,400 --> 00:49:49,359
Speaker 7: at that point is your developer fee.

1025
00:49:50,760 --> 00:49:51,600
Speaker 6: We have to pay for that.

1026
00:49:51,840 --> 00:49:54,359
Speaker 7: So we got to mitigate that risk because you can

1027
00:49:54,600 --> 00:49:57,160
Speaker 7: get a project done and not make nothing to that point.

1028
00:49:57,239 --> 00:49:58,680
Speaker 6: My first project, sixty.

1029
00:49:58,480 --> 00:50:01,839
Speaker 7: Unit fortyblehusand development twelve points six million dollars. I made

1030
00:50:01,920 --> 00:50:05,520
Speaker 7: thirty thousand dollars on Wow, three and a half years

1031
00:50:05,560 --> 00:50:07,719
Speaker 7: worth of work. I made thirty thousand dollars.

1032
00:50:08,360 --> 00:50:08,640
Speaker 6: That was it.

1033
00:50:08,880 --> 00:50:11,200
Speaker 5: What kind of insurance do you have to have to

1034
00:50:11,280 --> 00:50:12,840
Speaker 5: be protected.

1035
00:50:14,120 --> 00:50:17,440
Speaker 7: During construction just as a development I'm like anything you said, like,

1036
00:50:17,440 --> 00:50:19,879
Speaker 7: you're on the hook, right, So I guess you don't

1037
00:50:19,920 --> 00:50:21,200
Speaker 7: want to have to always come out of your pocket

1038
00:50:21,239 --> 00:50:22,879
Speaker 7: if something happens to risky tech.

1039
00:50:23,239 --> 00:50:24,080
Speaker 5: So there's no insurance.

1040
00:50:24,320 --> 00:50:27,719
Speaker 7: No, it's not a thing now, it's just a risky tech.

1041
00:50:27,840 --> 00:50:30,840
Speaker 7: So that deal was twelve and a half million. My

1042
00:50:31,160 --> 00:50:33,400
Speaker 7: original development partner. So this is my first project, this

1043
00:50:33,480 --> 00:50:36,200
Speaker 7: one I got in twenty sixteen. My original development partners

1044
00:50:36,239 --> 00:50:39,280
Speaker 7: were fully integrated firms, so they did they did development, construction,

1045
00:50:39,400 --> 00:50:40,280
Speaker 7: and property management.

1046
00:50:40,520 --> 00:50:41,080
Speaker 6: They did it all.

1047
00:50:41,120 --> 00:50:43,080
Speaker 7: So I'm like, okay, bet let me partner with these guys,

1048
00:50:43,719 --> 00:50:46,320
Speaker 7: let me learn from their different entities. It's all one stop,

1049
00:50:46,560 --> 00:50:47,680
Speaker 7: and then we're gonna do it.

1050
00:50:49,640 --> 00:50:50,400
Speaker 6: Moving forward.

1051
00:50:50,520 --> 00:50:53,280
Speaker 7: Once we got the award, their board wasn't as comfortable

1052
00:50:53,320 --> 00:50:57,000
Speaker 7: with the original terms we agree to. So now you

1053
00:50:57,120 --> 00:50:59,440
Speaker 7: know based on so you have to make guarantees. You

1054
00:50:59,520 --> 00:51:02,879
Speaker 7: make financial guarantees for construction. I guarantee that this will

1055
00:51:02,920 --> 00:51:05,800
Speaker 7: be built, even though on my own die, and you

1056
00:51:05,960 --> 00:51:10,360
Speaker 7: have to spread the risk across a development profile and

1057
00:51:10,440 --> 00:51:13,120
Speaker 7: share that with partners. If they're making all the guarantees,

1058
00:51:13,400 --> 00:51:15,200
Speaker 7: they're taking all the money. So that's why we get

1059
00:51:15,200 --> 00:51:19,160
Speaker 7: boxed out too. Black folks typically don't have the capital

1060
00:51:19,200 --> 00:51:22,080
Speaker 7: to say, yeah, we can't make guarantee.

1061
00:51:22,160 --> 00:51:22,400
Speaker 5: Yeah I have.

1062
00:51:22,440 --> 00:51:23,840
Speaker 2: But yeah, I'm like you said that because I have

1063
00:51:23,880 --> 00:51:26,719
Speaker 2: a friend who a client, well, who's a developer in

1064
00:51:26,800 --> 00:51:27,080
Speaker 2: New York.

1065
00:51:27,120 --> 00:51:27,560
Speaker 5: He's black.

1066
00:51:27,760 --> 00:51:29,800
Speaker 2: He always tells me about these personal guarantees that he

1067
00:51:29,880 --> 00:51:32,880
Speaker 2: has to put up of like all this money and properties.

1068
00:51:33,040 --> 00:51:35,040
Speaker 2: Like whenever time they're doing a deal, and it's like

1069
00:51:35,120 --> 00:51:37,120
Speaker 2: him and his partner, they gotta do these personal lines

1070
00:51:37,160 --> 00:51:38,279
Speaker 2: of guarantees and all that stuff.

1071
00:51:38,320 --> 00:51:39,880
Speaker 6: Personal guarantee, personal guarantee.

1072
00:51:40,000 --> 00:51:42,279
Speaker 7: And if you don't have the bare minimum for the

1073
00:51:42,320 --> 00:51:44,000
Speaker 7: projects that I'm working on, you need a million dollars

1074
00:51:44,000 --> 00:51:47,640
Speaker 7: of liquidity like cash and five million dollars in networks

1075
00:51:47,680 --> 00:51:50,319
Speaker 7: to start the conversation. That's going to eliminate a lot

1076
00:51:50,360 --> 00:51:53,239
Speaker 7: of us. That's why you don't see black developers. That's

1077
00:51:53,280 --> 00:51:55,239
Speaker 7: the primary reason why you don't see black developers because

1078
00:51:55,239 --> 00:51:56,640
Speaker 7: you can't get a game, and then when you start

1079
00:51:56,680 --> 00:51:59,839
Speaker 7: to you get raped. It's like, okay, well you got

1080
00:51:59,920 --> 00:52:03,799
Speaker 7: to idea, you got a concept I want, you can

1081
00:52:03,880 --> 00:52:06,040
Speaker 7: get teen and then we just get used as brokers

1082
00:52:06,680 --> 00:52:08,680
Speaker 7: to find sites and so they can make more money.

1083
00:52:09,040 --> 00:52:09,759
Speaker 7: But I wasn't on that.

1084
00:52:09,920 --> 00:52:10,520
Speaker 6: I'm not on that.

1085
00:52:10,760 --> 00:52:13,479
Speaker 7: So I get the majority of my fees at this point,

1086
00:52:14,239 --> 00:52:18,160
Speaker 7: at least fifty one percent. I'm gonna get standing on it.

1087
00:52:19,719 --> 00:52:19,920
Speaker 6: On that.

1088
00:52:21,120 --> 00:52:23,840
Speaker 2: That's not so you say, I'm partnerships. So so you

1089
00:52:23,960 --> 00:52:25,480
Speaker 2: partner with a lot of people, Yeah, I have to

1090
00:52:25,719 --> 00:52:27,600
Speaker 2: so for a young cat or you're not even young cat,

1091
00:52:27,640 --> 00:52:29,680
Speaker 2: anybody just in general, because like you said, it's a

1092
00:52:29,719 --> 00:52:32,879
Speaker 2: lot of barriers to get in. Is that the best

1093
00:52:32,920 --> 00:52:35,479
Speaker 2: way to go about it is to kind of find

1094
00:52:35,520 --> 00:52:39,960
Speaker 2: somebody already that's successful and kind of work with them.

1095
00:52:41,120 --> 00:52:43,160
Speaker 7: Yeah, I mean I get reached out to you all

1096
00:52:43,239 --> 00:52:46,440
Speaker 7: the time. I definitely I want to support everybody, but

1097
00:52:46,520 --> 00:52:47,439
Speaker 7: realistically I just can't.

1098
00:52:47,440 --> 00:52:48,640
Speaker 6: It's capacity think.

1099
00:52:50,080 --> 00:52:51,960
Speaker 7: So that said, I think the best way is to

1100
00:52:52,040 --> 00:52:54,640
Speaker 7: create value. You have to create value. If you're not

1101
00:52:54,719 --> 00:52:59,840
Speaker 7: creating value, then you're just there if you want to

1102
00:53:00,160 --> 00:53:02,359
Speaker 7: with me, just like if I want to work with them,

1103
00:53:03,480 --> 00:53:04,960
Speaker 7: is it worth my time to work with you?

1104
00:53:07,600 --> 00:53:07,640
Speaker 3: Not?

1105
00:53:07,880 --> 00:53:10,000
Speaker 6: If you bring anything to bring it, I can do

1106
00:53:10,000 --> 00:53:10,399
Speaker 6: it on my own.

1107
00:53:10,560 --> 00:53:12,239
Speaker 2: I tell people that all the time, you gotta it

1108
00:53:12,320 --> 00:53:15,080
Speaker 2: gotta be mutual, and it can't because that's more of

1109
00:53:15,120 --> 00:53:17,759
Speaker 2: a charity thing, right, It's like you through so much

1110
00:53:17,840 --> 00:53:18,320
Speaker 2: chat as.

1111
00:53:18,200 --> 00:53:18,920
Speaker 6: The time and a place for that.

1112
00:53:19,080 --> 00:53:21,840
Speaker 2: Yeah, you know, mentorship, charity. It's not a business partnership.

1113
00:53:21,880 --> 00:53:24,360
Speaker 2: Business partnership has it doesn't have to be equal, but

1114
00:53:24,520 --> 00:53:26,760
Speaker 2: you have to bring something, got to bring some value.

1115
00:53:27,040 --> 00:53:27,239
Speaker 6: Yeah.

1116
00:53:27,920 --> 00:53:30,360
Speaker 7: So if you can create value in real estate the

1117
00:53:30,440 --> 00:53:33,160
Speaker 7: way that I did it, I created the financial model,

1118
00:53:33,200 --> 00:53:35,200
Speaker 7: I created the vision, and I got the land in

1119
00:53:35,280 --> 00:53:38,000
Speaker 7: the contract. That's what that was my control. So if

1120
00:53:38,040 --> 00:53:40,359
Speaker 7: I pitched it to anybody, they can't just go get

1121
00:53:40,400 --> 00:53:42,759
Speaker 7: this land. I already got it so now it's like

1122
00:53:42,920 --> 00:53:45,960
Speaker 7: I have leverage. So if you, as a developer want

1123
00:53:46,000 --> 00:53:49,040
Speaker 7: to or aspiring developer want to take that strategy, go

1124
00:53:49,160 --> 00:53:51,120
Speaker 7: get some land on the contract, put a financial plan.

1125
00:53:51,200 --> 00:53:53,480
Speaker 7: That makes sense. I talked about language earlier. Showed me

1126
00:53:53,560 --> 00:53:55,440
Speaker 7: the language. This is the language that we speak right here.

1127
00:53:55,800 --> 00:53:58,000
Speaker 7: When you start speaking that language, we can partner with

1128
00:53:58,080 --> 00:53:58,520
Speaker 7: no problem.

1129
00:53:59,280 --> 00:54:01,480
Speaker 3: The last part that that property management piece. Do you

1130
00:54:01,600 --> 00:54:03,280
Speaker 3: have your own or you still partner with somebody.

1131
00:54:03,719 --> 00:54:05,480
Speaker 6: Most of my development partners out of their own shops.

1132
00:54:05,600 --> 00:54:06,239
Speaker 6: I don't have my own.

1133
00:54:06,239 --> 00:54:08,840
Speaker 7: It only makes sense when you have some of the units.

1134
00:54:09,480 --> 00:54:12,120
Speaker 7: You gotta scale. It's a scale thing. So when I

1135
00:54:12,160 --> 00:54:13,759
Speaker 7: get to, you know, a couple of thousand units, I

1136
00:54:13,840 --> 00:54:14,520
Speaker 7: probably start one.

1137
00:54:14,560 --> 00:54:17,200
Speaker 5: But right now now, all right, So in the last second,

1138
00:54:17,239 --> 00:54:18,800
Speaker 5: we're gonna talk about scaling.

1139
00:54:18,840 --> 00:54:20,920
Speaker 2: We're always gonna talk about a few other businesses that

1140
00:54:21,000 --> 00:54:22,520
Speaker 2: you got in the in the d m V, since

1141
00:54:22,520 --> 00:54:24,759
Speaker 2: we're in the d m V, so multiple streams of

1142
00:54:24,840 --> 00:54:27,600
Speaker 2: income for sure. All right, So in the last seme

1143
00:54:27,600 --> 00:54:30,080
Speaker 2: we're gonna talk about a few things. But first, what's

1144
00:54:30,080 --> 00:54:33,080
Speaker 2: talk about scaling Because obviously you've you've come a long way,

1145
00:54:33,200 --> 00:54:37,319
Speaker 2: but you're still young. So what's your what's your what's

1146
00:54:37,360 --> 00:54:39,520
Speaker 2: your vision, what's your plan, what's your what's your goals

1147
00:54:39,560 --> 00:54:43,000
Speaker 2: as far as scaling and moving forward into this new decade.

1148
00:54:43,360 --> 00:54:43,879
Speaker 6: Yeah, that's real.

1149
00:54:43,960 --> 00:54:45,640
Speaker 7: I mean, at the end of the day, I'm an entrepreneur,

1150
00:54:45,760 --> 00:54:48,840
Speaker 7: so I think my profession is a real estate developer,

1151
00:54:48,880 --> 00:54:52,360
Speaker 7: but I'm really an entrepreneur. So scaling, I'm open to

1152
00:54:53,080 --> 00:54:57,399
Speaker 7: different concepts. One being uh said, I wasn't gonna say,

1153
00:54:57,440 --> 00:54:59,960
Speaker 7: but working on the real estate crowdfunding platform.

1154
00:55:00,520 --> 00:55:03,600
Speaker 6: I think that'll be my next big endeavor. That's probably

1155
00:55:03,680 --> 00:55:06,960
Speaker 6: lost early next year, So that's that's a goal, and

1156
00:55:07,040 --> 00:55:08,040
Speaker 6: that's a tech platform.

1157
00:55:08,200 --> 00:55:12,759
Speaker 7: So I plan to leverage tech to crowdfund money in

1158
00:55:12,880 --> 00:55:14,840
Speaker 7: real estate and then pour it back in our community

1159
00:55:15,160 --> 00:55:17,160
Speaker 7: in a way that doesn't currently exist. There's an access

1160
00:55:17,239 --> 00:55:18,839
Speaker 7: to capital challenge, and this is the way that I'm

1161
00:55:18,840 --> 00:55:19,320
Speaker 7: gonna fix it.

1162
00:55:19,840 --> 00:55:19,960
Speaker 6: Right.

1163
00:55:20,040 --> 00:55:22,000
Speaker 4: So it's like that gap that you were saying that

1164
00:55:22,160 --> 00:55:25,319
Speaker 4: was there, Yeah, you would now season it dope.

1165
00:55:25,560 --> 00:55:26,320
Speaker 6: Yeah, So that's to go.

1166
00:55:26,840 --> 00:55:29,520
Speaker 7: That's part of it. Scaling specifically for real enterprises. My

1167
00:55:29,560 --> 00:55:32,400
Speaker 7: development company, we keep doing affordable housing primarily.

1168
00:55:32,800 --> 00:55:33,640
Speaker 6: That's my thing.

1169
00:55:34,560 --> 00:55:37,760
Speaker 7: I think it's a we need we need it everywhere

1170
00:55:38,080 --> 00:55:40,839
Speaker 7: and it'll always be a thing. So if I could

1171
00:55:40,840 --> 00:55:43,399
Speaker 7: do one or two deals in Wisconsin here, I think

1172
00:55:43,440 --> 00:55:46,720
Speaker 7: that's cool for now, and then working on some stuff

1173
00:55:46,719 --> 00:55:47,040
Speaker 7: in DC.

1174
00:55:47,760 --> 00:55:48,360
Speaker 6: Working on a.

1175
00:55:50,000 --> 00:55:53,560
Speaker 7: Platform, I guess not a platform, but it's an affordable

1176
00:55:53,600 --> 00:55:57,160
Speaker 7: housing initiative with a professor at the Georgetown Law called

1177
00:55:57,200 --> 00:55:59,719
Speaker 7: gay Bridge. So what we're doing is trying to identify

1178
00:56:00,080 --> 00:56:04,360
Speaker 7: five sites for us to develop in DC, Baltimore, and Philly.

1179
00:56:04,880 --> 00:56:06,600
Speaker 7: So for me, I think next year I'm going to

1180
00:56:06,640 --> 00:56:10,560
Speaker 7: be targeting, you know, four to five sites.

1181
00:56:10,320 --> 00:56:11,000
Speaker 6: In those areas.

1182
00:56:11,120 --> 00:56:12,879
Speaker 7: I have one in DC right now that I'm working

1183
00:56:12,960 --> 00:56:16,759
Speaker 7: on in Southwest DC one hundred and forty units or so,

1184
00:56:17,160 --> 00:56:19,920
Speaker 7: probably close to eighty million dollar development about twenty five

1185
00:56:19,960 --> 00:56:20,839
Speaker 7: thousand square feet.

1186
00:56:21,239 --> 00:56:23,360
Speaker 4: Are you bringing anybody with you as far as like

1187
00:56:23,440 --> 00:56:26,359
Speaker 4: a mentor or apprentice along the journey so they can.

1188
00:56:26,280 --> 00:56:26,960
Speaker 6: See what this is like?

1189
00:56:28,440 --> 00:56:31,000
Speaker 7: Yes or no, I'm mentored a ton of Milwaukee has

1190
00:56:31,040 --> 00:56:33,200
Speaker 7: probably the most black developers in the country.

1191
00:56:33,320 --> 00:56:36,920
Speaker 6: Wow, it's crazy. So I got some I got a OG.

1192
00:56:36,840 --> 00:56:38,680
Speaker 7: And then I got some young homies that are coming

1193
00:56:38,760 --> 00:56:42,200
Speaker 7: up to But in DC, I'm actually launching a platform

1194
00:56:42,520 --> 00:56:47,759
Speaker 7: or launching keeps saying platform launching an educational type of

1195
00:56:48,400 --> 00:56:53,319
Speaker 7: deal for a development program, development training program, and I'm

1196
00:56:53,320 --> 00:56:56,719
Speaker 7: actually gonna do it in partnership, probably with Georgetown, so

1197
00:56:57,600 --> 00:57:00,279
Speaker 7: that all launch next year as well. So I'm called

1198
00:57:00,280 --> 00:57:02,160
Speaker 7: that reinvest And you you have a you have a

1199
00:57:02,239 --> 00:57:06,320
Speaker 7: bar lounge in DC? Yeah, I saw on a on

1200
00:57:06,480 --> 00:57:07,439
Speaker 7: a bar lounge in DC?

1201
00:57:07,640 --> 00:57:07,880
Speaker 6: What's that?

1202
00:57:08,000 --> 00:57:08,840
Speaker 5: What's what's the deal with that?

1203
00:57:08,920 --> 00:57:12,120
Speaker 7: It's called the K's Bird open that, Like I said,

1204
00:57:12,160 --> 00:57:13,800
Speaker 7: I think I mentioned it earlier, like I used to

1205
00:57:13,880 --> 00:57:16,080
Speaker 7: fund bars and pubs and things like that, so I

1206
00:57:16,120 --> 00:57:18,440
Speaker 7: knew the finance of it. So I'm like, Oh, came

1207
00:57:18,480 --> 00:57:21,960
Speaker 7: across an opportunity a friend of mine, best friend in Milwaukee.

1208
00:57:22,600 --> 00:57:25,000
Speaker 7: He's a developer too, but he owns a spot in Milwaukee,

1209
00:57:25,280 --> 00:57:27,720
Speaker 7: so he was looking at opening one in DC. Got

1210
00:57:27,760 --> 00:57:30,800
Speaker 7: introduced to a broker. Broker reached out. I walked a

1211
00:57:30,880 --> 00:57:32,680
Speaker 7: site for him. It was first and Adams marking im

1212
00:57:32,680 --> 00:57:35,080
Speaker 7: like I ain't really feeling this, you shouldn't do it.

1213
00:57:35,120 --> 00:57:37,160
Speaker 7: I told him he shouldn't do it because he wanted

1214
00:57:37,200 --> 00:57:41,120
Speaker 7: to do it at first. Then identify the side in

1215
00:57:41,240 --> 00:57:46,440
Speaker 7: DuPont Circle, predominantly white area in DC, and I was like, oh,

1216
00:57:46,520 --> 00:57:48,520
Speaker 7: this would beat dope, Like it was a cool opportunity.

1217
00:57:48,640 --> 00:57:51,160
Speaker 7: So told him about it. Yo, I think I want

1218
00:57:51,200 --> 00:57:53,480
Speaker 7: to do this. You down, He had some things going

1219
00:57:53,520 --> 00:57:55,080
Speaker 7: on in Milwaukee that it needs to straighten out. He

1220
00:57:55,160 --> 00:57:56,840
Speaker 7: was like, YO, just take it around with it. So

1221
00:57:56,920 --> 00:58:00,960
Speaker 7: I said, bet went out created an equity pool because

1222
00:58:01,000 --> 00:58:04,240
Speaker 7: I practiced what I preached, Like, I literally am all

1223
00:58:04,280 --> 00:58:07,200
Speaker 7: about black wealth. That's that's who I am. I know

1224
00:58:07,240 --> 00:58:09,000
Speaker 7: I'm gonna be straight on the development side. I'm not

1225
00:58:09,040 --> 00:58:12,040
Speaker 7: worried about my finances. But if I can create opportunities

1226
00:58:12,080 --> 00:58:14,120
Speaker 7: for ownership for my people, I think I'm living in

1227
00:58:14,200 --> 00:58:18,800
Speaker 7: my purpose. So created an equity pool, brought in a

1228
00:58:18,840 --> 00:58:19,440
Speaker 7: bunch of owners.

1229
00:58:19,560 --> 00:58:21,400
Speaker 5: Equity pool just a bunch of people that just pulled

1230
00:58:21,440 --> 00:58:22,120
Speaker 5: their money together.

1231
00:58:22,520 --> 00:58:22,720
Speaker 6: Yeah.

1232
00:58:22,840 --> 00:58:26,280
Speaker 7: So I actually I did fifty percent finance and a

1233
00:58:26,360 --> 00:58:29,000
Speaker 7: fifty percent like sweat equity. So if you wanted to

1234
00:58:29,080 --> 00:58:31,640
Speaker 7: come in and like be the chef or you know,

1235
00:58:31,760 --> 00:58:34,280
Speaker 7: come in and run the bar, come in and run events,

1236
00:58:34,720 --> 00:58:35,240
Speaker 7: I allowed.

1237
00:58:35,600 --> 00:58:38,040
Speaker 6: I kind of created on opportunity for that too.

1238
00:58:38,080 --> 00:58:39,840
Speaker 5: So if you didn't have money, work work your way.

1239
00:58:40,240 --> 00:58:42,960
Speaker 7: Yeah, pretty much. So that was you know, I have

1240
00:58:43,080 --> 00:58:45,960
Speaker 7: capacity constraints. I'm a full time developer. I run a

1241
00:58:46,000 --> 00:58:48,600
Speaker 7: whole enterprise. I just couldn't do it on my.

1242
00:58:48,640 --> 00:58:50,760
Speaker 6: Own anyway, but I thought that this would be the

1243
00:58:50,800 --> 00:58:51,200
Speaker 6: best way.

1244
00:58:51,280 --> 00:58:53,640
Speaker 7: So one hundred percent of black owned, operated, staff, and

1245
00:58:53,800 --> 00:58:58,480
Speaker 7: finance all by us. It's been it's been a very

1246
00:58:58,840 --> 00:59:02,000
Speaker 7: good learning experience. You know, it comes, it's been a

1247
00:59:02,080 --> 00:59:06,400
Speaker 7: roller coaster ride. But the name of the restaurant, where'd

1248
00:59:06,440 --> 00:59:08,320
Speaker 7: you get from one A space? I'm a sure a

1249
00:59:08,320 --> 00:59:13,160
Speaker 7: black woman. So honestly, bus Boys and Poets is a

1250
00:59:13,400 --> 00:59:15,800
Speaker 7: prominent place in DC. So like, all that name is

1251
00:59:15,840 --> 00:59:18,120
Speaker 7: dope and it's a nod to Langston Hughes. So I

1252
00:59:18,240 --> 00:59:22,760
Speaker 7: was like, h right, I'm like who inspired me? My

1253
00:59:22,880 --> 00:59:26,320
Speaker 7: Angelou was that person. So I was like, okay, you know,

1254
00:59:26,440 --> 00:59:28,280
Speaker 7: how can I think through your name? So I ended

1255
00:59:28,360 --> 00:59:31,360
Speaker 7: up landing on the cage Bird. Twenty sixteen, I saw

1256
00:59:31,440 --> 00:59:34,160
Speaker 7: My Angelou's documentary and Still Our Rise. It was a

1257
00:59:34,200 --> 00:59:37,440
Speaker 7: great documentary, and it was the first time I always

1258
00:59:37,480 --> 00:59:39,240
Speaker 7: knew that I was living black history. It was the

1259
00:59:39,320 --> 00:59:41,000
Speaker 7: first time I was able to like identify it in

1260
00:59:41,080 --> 00:59:43,880
Speaker 7: somebody else, like yo, I saw this whole process. She

1261
00:59:43,960 --> 00:59:46,560
Speaker 7: was a woman, she was molested, she was silent, she

1262
00:59:46,680 --> 00:59:48,360
Speaker 7: didn't started speaking. She became a poet.

1263
00:59:48,880 --> 00:59:49,200
Speaker 6: She was.

1264
00:59:50,480 --> 00:59:52,440
Speaker 7: She was everything under the son you could think of,

1265
00:59:52,560 --> 00:59:54,720
Speaker 7: you know, good things, bad things, et cetera. Do the research,

1266
00:59:54,760 --> 00:59:57,120
Speaker 7: you can find it. But she was a true and

1267
00:59:57,240 --> 00:59:59,560
Speaker 7: actual person. So I want to create a space that

1268
00:59:59,560 --> 01:00:03,120
Speaker 7: people could live and be Black history within the.

1269
01:00:04,120 --> 01:00:05,640
Speaker 5: So for sure, for sure.

1270
01:00:05,680 --> 01:00:07,520
Speaker 2: And I think it's fitting because d C has so

1271
01:00:07,680 --> 01:00:12,480
Speaker 2: much rich history, rich Black history, rich every history. I mean,

1272
01:00:12,560 --> 01:00:16,200
Speaker 2: this is the capital of America. But we can't talk

1273
01:00:16,200 --> 01:00:19,440
Speaker 2: about America without the contributions of African Americans.

1274
01:00:19,480 --> 01:00:22,400
Speaker 4: We can't talk about Washington see without the contributions of

1275
01:00:22,440 --> 01:00:23,080
Speaker 4: Black Americas.

1276
01:00:23,880 --> 01:00:26,920
Speaker 2: And that's why they the museum. I haven't got a

1277
01:00:27,040 --> 01:00:28,640
Speaker 2: chance to go to the museum. Have you going there yet?

1278
01:00:28,720 --> 01:00:31,320
Speaker 6: Yeah, I've been a few times, being there one day

1279
01:00:31,480 --> 01:00:31,800
Speaker 6: for sure.

1280
01:00:32,160 --> 01:00:34,120
Speaker 5: A fact. That's a fact. That's a fact.

1281
01:00:34,160 --> 01:00:34,840
Speaker 6: I'm standing on it.

1282
01:00:35,280 --> 01:00:36,360
Speaker 5: That's a fact. That's a fact.

1283
01:00:36,480 --> 01:00:39,400
Speaker 2: Man. So yeah, congratulations.

1284
01:00:39,440 --> 01:00:39,560
Speaker 7: Man.

1285
01:00:39,600 --> 01:00:41,400
Speaker 5: It is very inspiring, especially.

1286
01:00:42,680 --> 01:00:44,920
Speaker 2: A lot of times, like we doing the conversation, we

1287
01:00:45,000 --> 01:00:47,400
Speaker 2: might have forgot that you're only thirty one years old.

1288
01:00:47,720 --> 01:00:55,640
Speaker 5: I'm saying not that I'm far from Troy's for I'm

1289
01:00:55,720 --> 01:00:56,040
Speaker 5: not far.

1290
01:00:56,160 --> 01:00:59,640
Speaker 6: I'm not that far able, that's not all that.

1291
01:01:00,520 --> 01:01:02,000
Speaker 5: But but nah Man.

1292
01:01:02,120 --> 01:01:06,400
Speaker 2: Congratulations, and it's great to see you know, to see

1293
01:01:06,480 --> 01:01:08,560
Speaker 2: people because a lot of times we highlight things that

1294
01:01:08,680 --> 01:01:11,000
Speaker 2: are negative, we got to highlight positive.

1295
01:01:11,160 --> 01:01:11,360
Speaker 6: Yeah.

1296
01:01:11,800 --> 01:01:14,080
Speaker 7: I'm not the type. I don't look for attention. That's

1297
01:01:14,120 --> 01:01:16,680
Speaker 7: not really my thing, Like actually don't care for it.

1298
01:01:16,720 --> 01:01:19,400
Speaker 7: People probably don't believe that, but uh, it was some

1299
01:01:19,600 --> 01:01:21,360
Speaker 7: in me that said it would be a the service

1300
01:01:21,400 --> 01:01:23,280
Speaker 7: to my community for not giving the knowledge that I have.

1301
01:01:23,440 --> 01:01:24,600
Speaker 6: So I had to like accept it.

1302
01:01:24,920 --> 01:01:28,280
Speaker 2: No, it's the greatest gift that you can give. It's inspiration.

1303
01:01:28,360 --> 01:01:29,880
Speaker 2: And like I said, I was telling you off camera,

1304
01:01:29,960 --> 01:01:33,040
Speaker 2: you never know who's listening. And like the kid that

1305
01:01:33,200 --> 01:01:35,600
Speaker 2: was like, oh, I could be a real estate developer,

1306
01:01:35,840 --> 01:01:37,200
Speaker 2: not just an investor and not just.

1307
01:01:38,720 --> 01:01:41,080
Speaker 6: Like and now exactly you know it exists.

1308
01:01:41,160 --> 01:01:42,600
Speaker 3: I could be a civil engineer.

1309
01:01:42,720 --> 01:01:44,480
Speaker 6: Like oh, that's so much.

1310
01:01:44,520 --> 01:01:46,520
Speaker 7: It's so much money in real estate in a sense. Yeah,

1311
01:01:46,560 --> 01:01:48,439
Speaker 7: And it's like it's like how you how you looked

1312
01:01:48,440 --> 01:01:51,720
Speaker 7: at Dawn. People's like there might be somebody looking at

1313
01:01:51,800 --> 01:01:54,560
Speaker 7: you just like that. But what I'm saying so it's like,

1314
01:01:54,640 --> 01:01:57,320
Speaker 7: but that's how that's how life is so crazy and

1315
01:01:57,360 --> 01:01:59,880
Speaker 7: you don't even realize it. And it's like you inspiring somebody,

1316
01:02:00,640 --> 01:02:03,200
Speaker 7: and it's like, now they might inspire somebody off of

1317
01:02:03,320 --> 01:02:05,840
Speaker 7: what you exactly exactly.

1318
01:02:05,760 --> 01:02:07,800
Speaker 6: But it shouts out to y'all for having a platform

1319
01:02:07,840 --> 01:02:08,000
Speaker 6: to do.

1320
01:02:08,120 --> 01:02:09,800
Speaker 7: So you know what I'm saying this is this is

1321
01:02:09,880 --> 01:02:12,840
Speaker 7: much important for us, for our community and to be

1322
01:02:12,920 --> 01:02:14,480
Speaker 7: able to dig into these numbers in a way that

1323
01:02:14,600 --> 01:02:15,160
Speaker 7: doesn't exist.

1324
01:02:15,440 --> 01:02:17,360
Speaker 6: You're not going to be able to google. The fact

1325
01:02:18,760 --> 01:02:19,560
Speaker 6: some of these numbers that.

1326
01:02:19,560 --> 01:02:21,880
Speaker 7: I said today, I break down the restaurant business too,

1327
01:02:21,880 --> 01:02:24,520
Speaker 7: if y'all want me to, Part two, Part two, part.

1328
01:02:26,120 --> 01:02:29,000
Speaker 6: So you can't go goot the stuff. So appreciate y'all, Na,

1329
01:02:29,160 --> 01:02:29,640
Speaker 6: thank you man.

1330
01:02:29,720 --> 01:02:32,920
Speaker 2: So how can people contact you any initiatives that you

1331
01:02:33,000 --> 01:02:33,800
Speaker 2: want to make them aware of?

1332
01:02:33,840 --> 01:02:35,080
Speaker 5: Social media and all that stuff?

1333
01:02:35,800 --> 01:02:39,840
Speaker 7: B Underscore? Are you ellie? That's my Instagram handle b Rule.

1334
01:02:40,080 --> 01:02:42,160
Speaker 7: Everybody called me that I was branded. There's a ton

1335
01:02:42,200 --> 01:02:46,640
Speaker 7: of brand that's growing up. Sports name y'all. Yeah, I

1336
01:02:46,760 --> 01:02:50,040
Speaker 7: got that, a lot real enterprises. The name of development

1337
01:02:50,080 --> 01:02:54,840
Speaker 7: company Cage Bird is restaurant bar DuPont and I got it.

1338
01:02:55,000 --> 01:02:57,800
Speaker 7: I got a new thing called reinvest coming out soon.

1339
01:02:57,960 --> 01:03:01,720
Speaker 5: So just a dope, dope Troy house Keeping item.

1340
01:03:01,760 --> 01:03:04,400
Speaker 4: Yeah, yeah, shout out everybody on patreon dot com every

1341
01:03:04,440 --> 01:03:06,000
Speaker 4: time we come on and seeing that we get new members.

1342
01:03:06,000 --> 01:03:07,880
Speaker 4: So I just want to give a quick shout out

1343
01:03:07,960 --> 01:03:12,920
Speaker 4: and recognition to see Manual Ralphael, ariel Mark and Gregory

1344
01:03:12,960 --> 01:03:15,840
Speaker 4: shout out to y'all for joining us on Patreon, UH

1345
01:03:15,960 --> 01:03:18,200
Speaker 4: tier four and five members. You know that you have

1346
01:03:18,320 --> 01:03:22,240
Speaker 4: access to e y L University out online school and

1347
01:03:23,120 --> 01:03:23,640
Speaker 4: it's growing.

1348
01:03:23,720 --> 01:03:23,840
Speaker 6: Man.

1349
01:03:23,920 --> 01:03:25,920
Speaker 4: We have a lot of webinars up there, a lot

1350
01:03:25,960 --> 01:03:30,560
Speaker 4: of uh great content we have from tax taxes to

1351
01:03:30,800 --> 01:03:31,280
Speaker 4: what else.

1352
01:03:31,160 --> 01:03:31,840
Speaker 6: Did we have on there?

1353
01:03:32,280 --> 01:03:34,720
Speaker 5: Everything mobile, mobile notary.

1354
01:03:35,000 --> 01:03:40,240
Speaker 2: We had Sabine talking about trademarking, multiple students and income,

1355
01:03:40,280 --> 01:03:42,880
Speaker 2: how to start a podcast, two three k loan class

1356
01:03:43,320 --> 01:03:45,560
Speaker 2: everything everything you can think of, and every week is

1357
01:03:45,600 --> 01:03:47,640
Speaker 2: three three classes added to the curriculum.

1358
01:03:47,760 --> 01:03:49,640
Speaker 5: So it's growing.

1359
01:03:49,880 --> 01:03:51,840
Speaker 4: It's a growing university and the merchan is out too.

1360
01:03:51,960 --> 01:03:54,200
Speaker 4: So as you can see, has that e y L

1361
01:03:54,320 --> 01:03:55,680
Speaker 4: University hood gear.

1362
01:03:55,760 --> 01:03:57,920
Speaker 5: Man, I got you, you got you, got you.

1363
01:03:58,080 --> 01:04:01,160
Speaker 4: I'm still rocking assets of a liability because that's all

1364
01:04:01,320 --> 01:04:03,360
Speaker 4: you know. I'll go to sloping right. Having more assets

1365
01:04:03,720 --> 01:04:06,280
Speaker 4: to pay for liabilities is a way to financial freedom.

1366
01:04:06,360 --> 01:04:09,840
Speaker 4: So keep supporting that and keep tuning in man, the

1367
01:04:09,920 --> 01:04:13,800
Speaker 4: podcast is growing, our streams income have grown.

1368
01:04:14,240 --> 01:04:16,080
Speaker 3: We come up with new ideas and new lessons.

1369
01:04:16,120 --> 01:04:16,240
Speaker 7: Man.

1370
01:04:16,440 --> 01:04:18,200
Speaker 3: This was like a history lesson and a business lesson

1371
01:04:18,240 --> 01:04:18,560
Speaker 3: and one man.

1372
01:04:18,720 --> 01:04:21,240
Speaker 5: Yeah for sure, b Rule, thank you.

1373
01:04:21,640 --> 01:04:22,400
Speaker 6: I appreciate it.

1374
01:04:22,600 --> 01:04:27,640
Speaker 2: On motivation purposes only the stream chaser this Bill Man

1375
01:04:27,840 --> 01:04:29,880
Speaker 2: for sure, for sure Atlanta, don't forget Atlanta.

1376
01:04:30,440 --> 01:04:31,240
Speaker 5: January twenty fifth.

1377
01:04:31,320 --> 01:04:34,400
Speaker 2: January twenty sixth, we released information on that soon when

1378
01:04:34,400 --> 01:04:37,600
Speaker 2: we come into town for sure, and who knows, Brandon might.

1379
01:04:37,520 --> 01:04:39,680
Speaker 6: Pop up, might put upful love.

1380
01:04:40,760 --> 01:04:42,200
Speaker 5: The book tip of this week.

1381
01:04:42,200 --> 01:04:45,200
Speaker 6: Is thinking gro Rich a black choice but Dennis kim Bro.

1382
01:04:45,480 --> 01:04:47,240
Speaker 5: Thank you guys for rocking with us. We'll see you

1383
01:04:47,320 --> 01:04:47,720
Speaker 5: next week.

1384
01:04:47,800 --> 01:04:48,880
Speaker 6: Peace, Peace, perfect