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Speed up your hiring right now with Indeed, 0:00:33.960 --> 0:00:36.200 and listeners of this show will get a seventy five 0:00:36.280 --> 0:00:39.440 dollars sponsored job credit to get your jobs more visibility 0:00:39.600 --> 0:00:45.320 at indeed dot com slash pod Katz thirteen. Just go 0:00:45.360 --> 0:00:50.160 to Indeed dot com slash pod Katz thirteen right now 0:00:50.479 --> 0:00:53.040 and support our show by saying you heard about Indeed 0:00:53.080 --> 0:00:57.400 on this podcast. Terms and conditions apply. Hiring Indeed is 0:00:57.440 --> 0:00:58.040 all you need. 0:00:58.760 --> 0:01:02.880 All right, guys, Welcome back, e y L Hometown Heroes 0:01:03.000 --> 0:01:07.120 editions right for sure, for sure for sure. So we 0:01:07.160 --> 0:01:11.640 are in d C right now. Just finished up crazy 0:01:11.720 --> 0:01:13.640 crazy event we had top go up, got like two 0:01:13.720 --> 0:01:15.280 hundred people there. It was crazy. 0:01:15.600 --> 0:01:15.720 You know. 0:01:15.840 --> 0:01:18.000 Somebody said they were like yo, man, this is crazy. 0:01:18.400 --> 0:01:21.880 Everybody I follow on social media in this room right now, 0:01:21.880 --> 0:01:22.560 how y'all do this? 0:01:22.959 --> 0:01:23.399 Shout out? 0:01:24.080 --> 0:01:26.520 Shout out to Shout out to everybody that came to 0:01:27.040 --> 0:01:30.800 the event. Shout out to our god Sharani for. 0:01:30.800 --> 0:01:33.840 Sure, Capital Capital, Capital Event. 0:01:33.600 --> 0:01:34.959 Group, Capital Events Group. 0:01:35.480 --> 0:01:38.280 Shout out to the boy Trani he is. He's amazing man. 0:01:38.360 --> 0:01:40.640 So if you're in d C and you need an 0:01:40.680 --> 0:01:44.679 event plan or curated, get the contact. Follow him on Instagram. 0:01:44.840 --> 0:01:47.240 I'm sure we'll put a post up about it. You 0:01:47.319 --> 0:01:49.320 took care of us man. DC would not be the 0:01:49.320 --> 0:01:50.040 same without him here. 0:01:50.080 --> 0:01:53.280 Thank you for the hospitality, bro, appreciate it. And what's coy? 0:01:53.320 --> 0:02:01.920 Tom's coy for Sure Networking Power Network and Atlanta You're 0:02:02.000 --> 0:02:04.720 next January twenty fifth, January twenty sixth. 0:02:04.760 --> 0:02:07.280 We're gonna take over the whole city. We're gonna do. 0:02:07.280 --> 0:02:10.000 A big, big, big, big big. You can't play around 0:02:10.040 --> 0:02:13.560 with Atlanta. Yeah, facts the fact. 0:02:14.000 --> 0:02:20.639 Every time we say Atlanta, if you know, you know, man, 0:02:20.680 --> 0:02:22.680 shout out to the great city of Atlanta. 0:02:22.760 --> 0:02:24.760 Can't wait to touch the town. We're gonna be releasing 0:02:24.840 --> 0:02:28.560 details soon. Details might have already been released by this 0:02:28.639 --> 0:02:30.639 episode comes out, but we're gonna yeah, we're gonna do 0:02:30.680 --> 0:02:33.480 it really really big. So we have a dope episode 0:02:33.560 --> 0:02:37.720 played today and it is Yes, hometown Heroes, even though 0:02:37.720 --> 0:02:41.760 we're in d C. It's not a DC hometown hero, 0:02:42.280 --> 0:02:46.520 but it's a yeah, it's a Milwaukee, Wisconsin hometown hero 0:02:46.680 --> 0:02:49.040 that lives in DC and Milwaukee. 0:02:50.240 --> 0:02:51.639 So my man Brandon Rule. 0:02:51.840 --> 0:02:54.760 It was interesting because like, I think you had the 0:02:54.880 --> 0:02:58.720 article on we Buy Black and it went viral and 0:02:58.800 --> 0:03:02.040 then like Troy Troy sent it to me, and then 0:03:02.080 --> 0:03:04.799 somebody else sent it to me and then but I 0:03:04.840 --> 0:03:08.200 didn't read it in full transparency because he sends me 0:03:08.280 --> 0:03:11.320 like seven articles a day. But like by the time 0:03:11.360 --> 0:03:13.320 the third person read it sent it to me, I 0:03:13.360 --> 0:03:15.520 read it, I'm like, yo, we should probably interview. He's 0:03:15.520 --> 0:03:16.639 like yeah, I sent it to you two weeks ago. 0:03:19.320 --> 0:03:21.840 So I'm like so, and I hit you up like 0:03:21.880 --> 0:03:23.799 are you interested in coming? Like yeah, somebody actually just 0:03:23.800 --> 0:03:25.480 told me about your Yeah. 0:03:25.720 --> 0:03:27.359 He was like, Yo, this is. 0:03:27.320 --> 0:03:29.680 Like one of the quickest turnarounds. Yeah yeah, Like two 0:03:29.720 --> 0:03:31.919 weeks ago. I was like, Yo, this guy's dope. A 0:03:32.000 --> 0:03:34.000 man came from Detroit hit me like yo, just guys hope. 0:03:34.040 --> 0:03:35.800 I'm like, yeah, I just read about him and then 0:03:35.840 --> 0:03:37.720 like the next week he was like, Yo, he's gonna 0:03:37.720 --> 0:03:37.960 come on. 0:03:38.040 --> 0:03:39.080 I'm like, oh, this is great. 0:03:39.200 --> 0:03:43.360 It was easy one, two three. So Brandon, Brandon's dope. 0:03:43.360 --> 0:03:45.760 He's thirty one years old and he's a We talked 0:03:45.760 --> 0:03:47.720 about real estate a lot. Most of the time from 0:03:47.840 --> 0:03:51.720 our podcast is real Estate Investors, which is dope, wholesaling, buying, 0:03:51.760 --> 0:03:55.280 flip stuff like that. But he's a developer, right, and 0:03:55.360 --> 0:03:58.960 he's young. He's thirty one years old, and he most 0:03:58.960 --> 0:04:03.880 of his developments are in uh Milwaukee, Wisconsin, and he 0:04:04.000 --> 0:04:08.320 has forty million dollars of affordable housing currently under his 0:04:08.360 --> 0:04:11.360 belt as far as development, and then one hundred and 0:04:11.360 --> 0:04:15.800 eighty million dollars in the pipeline. And yeah, for sure, 0:04:15.800 --> 0:04:20.320 it just got awarded a huge forty one million dollars. 0:04:20.080 --> 0:04:22.000 Forty one million for the first phase for the first 0:04:22.040 --> 0:04:23.440 fall in the second. 0:04:23.240 --> 0:04:24.920 And that's gonna be for a grocery store. 0:04:25.000 --> 0:04:25.600 The first thing. 0:04:25.600 --> 0:04:27.920 You're gonna do thousand, score thirty thousand square for a 0:04:27.960 --> 0:04:29.400 grocery store with one hundred. 0:04:29.200 --> 0:04:32.360 And fifty apartments in the parking grash. Yeah parks. 0:04:32.600 --> 0:04:35.000 Yeah, So this is gonna be a high level conversation. 0:04:36.040 --> 0:04:37.640 It's gonna be get in the ways if y'all want to. 0:04:38.040 --> 0:04:43.840 Yeah, So, first and foremost, thank you, Thank you for 0:04:43.920 --> 0:04:44.200 having me. 0:04:44.240 --> 0:04:46.720 I appreciate it, appreciate it, appreciate it, appreciate you. 0:04:46.800 --> 0:04:49.599 So all right, so before we before we even get 0:04:49.600 --> 0:04:51.920 into the nitty gritty of what you're doing, how did 0:04:51.920 --> 0:04:54.040 you get started? It's an interesting story because if people 0:04:54.040 --> 0:04:58.920 don't know who the legend peoples are, and that's unfortunate 0:04:59.000 --> 0:05:01.640 that it's it's a really unfortunate situation if you think 0:05:01.640 --> 0:05:04.160 about it, because it's like everybody knows whose Lebron is right, 0:05:04.400 --> 0:05:08.479 everybody knows whose Lil Wayne is right. But this guy 0:05:08.680 --> 0:05:11.240 has definitely more money a little way, not shut the toms, no, 0:05:11.240 --> 0:05:14.280 no disrespect, but probably like almost the same amount of 0:05:14.279 --> 0:05:16.240 money and Lebron maybe more money than Lebron, right, Like 0:05:16.920 --> 0:05:19.640 he's on his way close to being a billionaire, right, 0:05:19.760 --> 0:05:23.880 And he's black developer from DC, from DC, and not 0:05:24.000 --> 0:05:27.040 a lot of people are really familiar with him. So 0:05:27.760 --> 0:05:30.000 he kind of I bring him up because he kind 0:05:30.000 --> 0:05:32.800 of he's the start of your real estate journey, right 0:05:32.839 --> 0:05:35.560 and you see, at least in DC for sure. So yeah, 0:05:35.720 --> 0:05:38.279 what's your what's your path in real estate, and what's 0:05:38.279 --> 0:05:41.800 your path to coming to d C from Milwaukee? 0:05:41.839 --> 0:05:44.040 For sure, I'll just start from the beginning for real 0:05:44.120 --> 0:05:48.240 so from Milwaukee. But I was actually born in Los Angeles, California, 0:05:48.520 --> 0:05:51.040 So I was born in LA And in nineteen ninety four, 0:05:51.080 --> 0:05:53.800 I was in the earthquake, the North Is earthquake. At 0:05:53.839 --> 0:05:56.640 the time, it was the worst natural disaster and financial 0:05:57.560 --> 0:06:00.880 worst natural disaster financially in American history, so over a 0:06:00.920 --> 0:06:04.480 billion dollars worth of damages, one of that being my home. 0:06:04.600 --> 0:06:07.599 So we lost everything, slept outside for a few days, 0:06:07.920 --> 0:06:13.000 remember vaguely like being outside of the Walmart and just 0:06:13.040 --> 0:06:15.680 not having any resources. The highways were broken, everything. So 0:06:16.000 --> 0:06:18.719 my parents are high school sweethearts from Chicago. My dad 0:06:18.800 --> 0:06:21.039 was like, I ain't with this, We're going back. So 0:06:21.240 --> 0:06:23.560 my grandfather was living in Milwaukee at the time. We 0:06:23.680 --> 0:06:26.200 ended up moving to Milwaukee into his attic as we 0:06:26.240 --> 0:06:28.520 got back on their feet. A couple months later, rented 0:06:28.560 --> 0:06:31.479 the house and then moved forward. So from that point forward, 0:06:31.520 --> 0:06:34.120 I grew up in Milwaukee. And if anyone knows anything 0:06:34.120 --> 0:06:36.800 about Milwaukee's actually the worst place for black people in 0:06:37.320 --> 0:06:40.520 America right now, Google it. It'll pop up in many articles, 0:06:40.520 --> 0:06:41.400 many reports. 0:06:41.400 --> 0:06:42.240 I saw a statistic. 0:06:42.240 --> 0:06:44.640 It was like, specifically Madison with six percent of the 0:06:44.720 --> 0:06:47.080 population is black, but fifty percent of the people incarcerated 0:06:47.160 --> 0:06:47.400 or black. 0:06:47.440 --> 0:06:50.200 Oh yeah, he's crazy easy. Yeah, Madison is ridiculous too. 0:06:50.360 --> 0:06:53.880 Raight saying is ridiculous too. Milwaukee is actually closer to 0:06:53.920 --> 0:06:59.080 forty percent black. But we have national problems, but just 0:06:59.120 --> 0:07:02.160 not national resource. Very similar to a Detroit, very similar 0:07:02.200 --> 0:07:05.120 to a Baltimore. But no one's really looking there. You 0:07:05.120 --> 0:07:06.960 don't hear about black folks from Milwaukee. 0:07:07.080 --> 0:07:10.000 Black people don't leave. It's just a thing. Average. 0:07:10.200 --> 0:07:12.680 I think media income in Milwaukee for a black person 0:07:12.800 --> 0:07:14.760 is twenty eight thousand dollars. 0:07:14.840 --> 0:07:17.800 A black family twenty one thousand dollars family like a family. 0:07:17.520 --> 0:07:20.520 Of four, just a family period, a black family, let's 0:07:20.520 --> 0:07:23.800 say two parent family three to four is not always 0:07:23.840 --> 0:07:26.680 two parents, but twenty eight thousand dollars is an average 0:07:26.720 --> 0:07:29.120 for a family in Milwaukee. And that's very much so 0:07:29.240 --> 0:07:32.880 with me, my friends, my family, everybody. That's my roots, 0:07:32.880 --> 0:07:35.040 that's who I am, that's where I'm from. 0:07:35.440 --> 0:07:37.920 But I needed to break that. So I went to school. 0:07:39.240 --> 0:07:43.240 All of my all of my family were influenced by 0:07:43.240 --> 0:07:46.200 my grandfather who was a very successful street pharmacist. 0:07:46.560 --> 0:07:52.240 And yeah, I the language yet that which is important. 0:07:52.560 --> 0:07:55.000 It's important that we're gonna file that where we had 0:07:55.240 --> 0:07:56.160 returning citizens. 0:07:56.280 --> 0:07:59.920 Yeah, for sure, that's going to that same the China citizens. 0:08:00.800 --> 0:08:03.640 Any checked your needout. She actually was the first person 0:08:03.720 --> 0:08:06.720 I heard returning citizens. But yeah, so he was a 0:08:06.720 --> 0:08:10.760 street pharmacist and he influenced my entire family. He was 0:08:10.760 --> 0:08:12.680 an entrepreneur. He was really you know, it was the 0:08:12.680 --> 0:08:15.080 first millionaire in the family. By the time I came, 0:08:15.160 --> 0:08:17.000 he got hit with the Rica Law and we didn't 0:08:17.040 --> 0:08:20.400 have any money again, so I didn't really have that benefit. 0:08:20.480 --> 0:08:21.880 But I say that to say. 0:08:23.680 --> 0:08:25.520 I was the one that wanted to change the trajectory 0:08:25.520 --> 0:08:27.600 of the entire family. So I went to school, did 0:08:27.640 --> 0:08:29.480 it a different way. I was always like the chosen one. 0:08:29.480 --> 0:08:32.520 It's like, okay, cool, you got it. Went out to school, 0:08:32.840 --> 0:08:34.920 grew up in the Milwaukee public school system, was actually 0:08:34.960 --> 0:08:37.040 one of the worst in the country as well. Wear 0:08:37.080 --> 0:08:39.439 that on my sleeve because you know, you can come 0:08:39.480 --> 0:08:42.160 from any environment and make it right the fact. So 0:08:42.440 --> 0:08:44.679 when went on to school, went on the Marque University 0:08:45.320 --> 0:08:48.960 study economics, mining in sociology, So I think that kind 0:08:48.960 --> 0:08:51.000 of gave me the background that I needed in real 0:08:51.080 --> 0:08:54.800 estate economics, understanding capitalism. A lot of people think money 0:08:54.880 --> 0:08:56.040 is bad when it. 0:08:55.880 --> 0:08:56.840 Really is just a tool. 0:08:57.160 --> 0:08:59.760 It's a tool to leverage in a way that you 0:08:59.800 --> 0:09:02.760 do any other tool. Right, So study economics, but also 0:09:02.760 --> 0:09:07.120 study sociology. How do people fit within this? How does 0:09:07.280 --> 0:09:11.520 the people from the hood fit within this capitalistic society 0:09:11.520 --> 0:09:12.160 that we live within. 0:09:12.320 --> 0:09:13.559 So that was my foundation. 0:09:14.160 --> 0:09:18.160 Then my senior year, junior, senior year, fourth year, I 0:09:18.200 --> 0:09:21.520 took a program called the ACRE program, which stands for 0:09:21.600 --> 0:09:25.160 Associates and Commercial real Estate, and that pretty much exposed 0:09:25.200 --> 0:09:28.280 me to what commercial real estate development was because like 0:09:28.360 --> 0:09:30.559 many other folks, I hear real estate and like, do 0:09:30.559 --> 0:09:32.200 you think of a broker, You think of a realtor, 0:09:32.400 --> 0:09:34.640 But there's so many other things when it comes to 0:09:34.679 --> 0:09:38.000 real estate. You like so many professions. So when you 0:09:38.120 --> 0:09:42.600 think about a development process, a civil engineer, environmental engineer, 0:09:42.679 --> 0:09:47.480 geotechnical engineer, an architect, a contractor, a developer, a lender, 0:09:48.200 --> 0:09:50.319 there's so many different avenues that you can get into. 0:09:50.520 --> 0:09:53.760 So that program exposed me to that, and then it's like, okay, well, 0:09:54.160 --> 0:09:57.520 developers make a lot of money. I wanted financial freedom 0:09:57.920 --> 0:09:59.160 and I wanted some flexibility. 0:09:59.160 --> 0:10:00.400 So I was like, okay, well. 0:10:00.280 --> 0:10:02.120 I think I want to do this, and then that's 0:10:02.120 --> 0:10:05.160 when I started on my real estate path. While doing that, 0:10:05.440 --> 0:10:07.960 I got my hands on a book called The People's Principles, 0:10:08.000 --> 0:10:11.360 which was written by Don Peebles. Don Peebles, billionaire black 0:10:11.400 --> 0:10:14.440 developer from DC. That's where it started, then moved on 0:10:14.520 --> 0:10:18.160 to Miami and went to Vegas and now it's based 0:10:18.160 --> 0:10:18.680 in New York. 0:10:19.679 --> 0:10:23.000 And read this book. Really was inspired by. 0:10:23.040 --> 0:10:27.080 The really technical things that he said within it. It's like, 0:10:27.160 --> 0:10:29.920 this is how I became what I became. And I 0:10:29.920 --> 0:10:31.720 was like, oh, this is great. Okay, well I'm a 0:10:31.760 --> 0:10:34.960 follow a similar path which is doing my way. So 0:10:35.000 --> 0:10:38.000 in twenty seventeen, I got my twenty sixteen, I got 0:10:38.000 --> 0:10:41.520 my first low income housing tax credit. So affordable housing 0:10:41.520 --> 0:10:44.960 developments in the past were financed through Section eight. So 0:10:45.000 --> 0:10:47.720 if you think about a Section eight property, Kabrini Greens 0:10:47.720 --> 0:10:50.280 in Chicago. You know some of these really large berry 0:10:50.280 --> 0:10:55.000 farms in DC, really large complexes three four hundred units 0:10:55.000 --> 0:10:58.920 and really just clusters of poverty. That's how they were 0:10:58.960 --> 0:11:01.240 financing it. But now they use a tool called Section 0:11:01.320 --> 0:11:05.280 forty two IRIS Code, which is a tax credit. So 0:11:05.320 --> 0:11:08.160 we are given a tax credit that we sell to 0:11:08.200 --> 0:11:10.640 an investor and use that to finance the project. 0:11:10.679 --> 0:11:12.400 Can you can you explain that a little bit, because yeah, 0:11:12.440 --> 0:11:15.320 we Section eight. I think most people know what sectionate is, right, 0:11:15.320 --> 0:11:18.760 where it's like it's government and they subsidize housing, right, 0:11:18.880 --> 0:11:21.400 and but section that you don't have to live in 0:11:21.440 --> 0:11:23.320 the projects, like you can have a house. 0:11:23.440 --> 0:11:24.520 So there's two different types. 0:11:25.000 --> 0:11:29.240 There's Section eight project based vouchures, so projects got the 0:11:29.320 --> 0:11:33.040 Section eight assistance, but then they were also like people 0:11:33.040 --> 0:11:34.440 based boxing, right where you can. 0:11:34.360 --> 0:11:37.160 Take that you go into like a house, and they 0:11:37.160 --> 0:11:39.920 pay the landlord. So what's the new way? 0:11:40.080 --> 0:11:43.079 Section forty two is the primary tool for affordable housing. 0:11:43.080 --> 0:11:46.040 There's still some Section eight, there's still some vouchures, but 0:11:46.120 --> 0:11:50.079 Section forty two just really high level. If you think 0:11:50.120 --> 0:11:53.959 about a building, and you think about developing a building, 0:11:54.320 --> 0:11:58.360 it may cost forty million dollars to develop a building, right. 0:11:59.679 --> 0:11:59.920 Tip. 0:12:00.640 --> 0:12:03.520 In order to fund that building, you need rents that'll 0:12:03.679 --> 0:12:07.280 pay you enough to then get a bank to give 0:12:07.280 --> 0:12:09.720 you a loan, So you need a construction loan, and 0:12:09.760 --> 0:12:12.439 then you need permanent financing. So in order to get 0:12:12.440 --> 0:12:15.160 the construction loan, one of the threshold items is, hey, 0:12:15.480 --> 0:12:18.520 how much is the loan to value of this projected property. 0:12:18.960 --> 0:12:19.640 So if your. 0:12:19.559 --> 0:12:22.640 Value based on rents being at fifteen hundred dollars a month, 0:12:22.920 --> 0:12:24.679 it equates to forty million dollars. 0:12:24.960 --> 0:12:25.840 You can then build. 0:12:26.880 --> 0:12:28.880 Who's doing the assessment of how much each. 0:12:28.679 --> 0:12:32.760 One is worth? Each unit? The market kind of determines that. 0:12:33.240 --> 0:12:37.440 So drilling deeper into that, let's say fifteen hundred per 0:12:38.520 --> 0:12:42.360 equates to forty million dollars. Let's say now you're in 0:12:42.400 --> 0:12:44.719 an area that rents can only be seven hundred and 0:12:44.800 --> 0:12:47.480 fifty dollars per People still need to live, but we 0:12:47.480 --> 0:12:50.400 still need additional housing. In order to build that, the 0:12:50.440 --> 0:12:55.600 government created a tax credit that subsidized developers for the difference. 0:12:56.800 --> 0:13:00.360 So if the seven fifty gives me twenty million, I 0:13:00.600 --> 0:13:02.880 effectively are gonna get I'm gonna get twenty million in 0:13:02.920 --> 0:13:04.840 a tax credit to then make it balance. 0:13:04.480 --> 0:13:05.040 And make it work. 0:13:05.200 --> 0:13:08.160 They so they'll pay you the developer. 0:13:08.640 --> 0:13:10.640 They pay the project, they say, the project. They pay, 0:13:10.720 --> 0:13:13.400 not you personally, but they fund the project. 0:13:13.360 --> 0:13:16.320 And they allocate a tax credit to the developer to 0:13:16.440 --> 0:13:17.439 sell on behalf of. 0:13:17.400 --> 0:13:19.640 The project, so they pay that the person paid seven 0:13:19.720 --> 0:13:21.760 hundred and one thousand dollars if it was seventeen hundred 0:13:21.760 --> 0:13:23.640 and one thousand dollars is being paid. 0:13:23.800 --> 0:13:28.880 Through through the tax credit upfront, and in exchange for 0:13:28.920 --> 0:13:31.240 the tax credit, you have to restrict the rents for 0:13:31.280 --> 0:13:34.080 a certain amount of time fifteen years, thirty years, et cetera. 0:13:34.080 --> 0:13:37.360 And the rent is like market based. Yeah, so it's 0:13:37.400 --> 0:13:41.480 based on the area median income. So that's really like 0:13:41.800 --> 0:13:44.320 how they determine it. And they have different thresholds. So 0:13:44.320 --> 0:13:47.720 a thirty percent unit is like very low income, a 0:13:47.800 --> 0:13:50.480 fifty percent unit and a sixty percent unit is what we. 0:13:50.440 --> 0:13:52.800 Will call workforce or affordable housing. 0:13:53.320 --> 0:13:55.720 And then you have eighty percent units as well that 0:13:55.800 --> 0:13:59.160 can be financed through this tax credit. And that's based 0:13:59.200 --> 0:14:02.240 on So take the one hundred thousand dollars area media 0:14:02.280 --> 0:14:06.880 income in DC, UH fifty percent unit is fifty thousand dollars. 0:14:07.040 --> 0:14:10.199 If a person makes fifty thousand dollars in DC, they 0:14:10.240 --> 0:14:14.200 can qualify for affordable housing under this threshold. You take 0:14:14.280 --> 0:14:17.280 thirty percent of that income divided bout twelve months. That's 0:14:17.280 --> 0:14:19.160 how you come out to the rent amount that you 0:14:19.200 --> 0:14:21.000 can pay okay. 0:14:20.520 --> 0:14:23.560 So okay, yeah, so it's a little deep. Sorry, No, 0:14:23.640 --> 0:14:26.000 that's that's right, up eyol. That's what we do. That's 0:14:26.000 --> 0:14:28.120 the whole. It's right, A lot of numbers right in 0:14:28.120 --> 0:14:31.160 line with our content. So you meet you meet Don. 0:14:31.200 --> 0:14:35.040 People's right, yeah, and how does that go? 0:14:35.360 --> 0:14:35.600 Yeah? 0:14:35.640 --> 0:14:38.760 So twenty seventeen, I jumped out. He was speaking at 0:14:38.760 --> 0:14:41.520 a conference in DC, and I was like, I have 0:14:41.560 --> 0:14:43.480 to meet this guy. So I still by the door, 0:14:44.040 --> 0:14:47.080 very to nice said, I'm an ambitious guy by nature, 0:14:47.080 --> 0:14:49.120 a type personality. If I want time, I'm gonna go 0:14:49.160 --> 0:14:50.920 get it. And I wanted to meet him, so I 0:14:50.960 --> 0:14:54.560 went introduced myself. I just received that tax credit. That's 0:14:54.600 --> 0:14:56.360 why I wanted to get a story, just receive the 0:14:56.400 --> 0:14:58.680 tax credit. I was about to develop my first project. 0:14:59.000 --> 0:15:02.560 Hey Don, what's up branding? I got my first project in, 0:15:02.800 --> 0:15:05.200 I got a couple more of my pipeline. Would love 0:15:05.240 --> 0:15:08.320 to connect. And he was impressed by what I was 0:15:08.360 --> 0:15:10.760 doing because my age. I think I was twenty six 0:15:10.800 --> 0:15:13.920 twenty seven at the time, and his first project I 0:15:13.960 --> 0:15:16.800 was twenty seven. He was awarded his first project at 0:15:16.800 --> 0:15:19.560 twenty seven as well. So I was on that path. 0:15:19.600 --> 0:15:21.680 It's like Okay, yeah, this is the only black billionaire 0:15:21.920 --> 0:15:22.640 doing what I'm doing. 0:15:22.720 --> 0:15:23.440 I need to meet him. 0:15:23.440 --> 0:15:26.520 So we met, had a phone call about a month later, 0:15:26.760 --> 0:15:28.680 and the biggest takeaway I took from that phone call 0:15:28.880 --> 0:15:31.640 was he said, work on larger deals. So at that 0:15:31.640 --> 0:15:34.080 time I did was twelve and a half million. I 0:15:34.120 --> 0:15:36.400 had another deal that was about fourteen million, and I 0:15:36.480 --> 0:15:39.160 had another deal that was like seven million. The fourteen 0:15:39.160 --> 0:15:41.720 million dollar deal was a market rate. It wasn't an 0:15:41.760 --> 0:15:44.320 affordable housit development actually never went through. I'll talk on 0:15:44.360 --> 0:15:48.720 that too, But I needed to raise about one and 0:15:48.720 --> 0:15:53.600 a half from equity investors in order to finance the project. 0:15:53.800 --> 0:15:55.720 And you just, you know, go out to folks, get 0:15:55.760 --> 0:15:58.200 one hundred thousand here, two fifty there, you know, et cetera, 0:15:58.240 --> 0:16:00.960 et cetera, and he pray much just put it in 0:16:01.160 --> 0:16:04.000 perspective for me, said, I just raised five hundred million 0:16:04.040 --> 0:16:06.480 dollars in New York and this is the easiest money 0:16:06.480 --> 0:16:11.200 ever raise. Because institutional capital, the demand on that is 0:16:11.400 --> 0:16:15.160 so it's so much so, it's so much less than 0:16:15.200 --> 0:16:19.120 the demand on every day individuals and investments. Because you 0:16:19.120 --> 0:16:20.720 can invest in stocks, you can invest in bonds, you 0:16:20.760 --> 0:16:22.960 can invest in a different real estate project, you can 0:16:23.000 --> 0:16:26.440 invest in your kids college fund. Individuals have so many options, 0:16:26.480 --> 0:16:30.600 but institutional capital needs places to put this money. So 0:16:30.800 --> 0:16:33.320 he told me to work on larger deals, and I said, 0:16:33.320 --> 0:16:35.320 about three months later I moved to DC. 0:16:35.480 --> 0:16:39.800 That reminds me of three stories, So I'll take it 0:16:39.800 --> 0:16:43.160 one by one. Well, first off, you know how one 0:16:43.240 --> 0:16:46.320 of the people that really got don people's into the game, 0:16:47.040 --> 0:16:49.880 Barry and Barry for sure. You know that legend, DC 0:16:50.040 --> 0:16:54.840 legend rest in peace. So that's one story. The second 0:16:54.920 --> 0:16:57.840 story is that that also that what you said reminds me. 0:16:57.960 --> 0:17:00.440 I watched the interview with Magic Johnson and called a 0:17:00.440 --> 0:17:03.520 shout out to both of them, and Magic told Maverick 0:17:03.960 --> 0:17:07.760 he said, the same amount of time that it takes 0:17:07.840 --> 0:17:10.159 to do a deal for one million, it takes to 0:17:10.160 --> 0:17:14.960 do one hundred million, So do one hundred million because. 0:17:14.720 --> 0:17:18.159 It's the same energy. It's same energy. It's not like 0:17:18.200 --> 0:17:20.760 it's not you have to do additional energy. It's the 0:17:20.840 --> 0:17:23.679 same energy output. It's just you're focusing your energy on 0:17:23.720 --> 0:17:26.960 the small guy level. You can focus your energy on big, 0:17:27.119 --> 0:17:29.720 or you can focus your ines on small. The third 0:17:29.760 --> 0:17:34.520 one was Byron Allen. He was on a breakfast club, 0:17:35.320 --> 0:17:36.959 and he just said what you said. As far as 0:17:36.960 --> 0:17:38.840 like what, especially in institutions, a lot of times they 0:17:38.840 --> 0:17:40.960 have a problem where they have to they have to 0:17:40.960 --> 0:17:41.480 spend money. 0:17:41.520 --> 0:17:42.880 They have to they have to spend money. 0:17:42.920 --> 0:17:46.680 They raised it. They have exactly there looking for. They 0:17:46.680 --> 0:17:50.600 have whole teams devoted to look for opportunities, which means 0:17:50.600 --> 0:17:52.560 they have whole teams devoted to look to say where 0:17:52.560 --> 0:17:55.480 can I give money away to different deals? And how 0:17:55.480 --> 0:17:59.440 can I position this Because I have five hundred million 0:17:59.480 --> 0:18:01.040 dollars at the sothing. 0:18:01.240 --> 0:18:04.479 It was just five hundred so it's real raise your 0:18:04.480 --> 0:18:08.760 hand please, So, but you have to understand the key 0:18:08.800 --> 0:18:10.680 to that. You have to understand that language. It's a 0:18:10.760 --> 0:18:12.760 language of finance. That's the way I look at it. 0:18:12.760 --> 0:18:16.080 It's no different from English verse Spanish. We all know English, 0:18:16.359 --> 0:18:18.399 some people know Spanish, some people know finance. 0:18:18.440 --> 0:18:19.280 It's just a language. 0:18:19.320 --> 0:18:21.320 And if you understand the language, and if you understand 0:18:21.320 --> 0:18:23.160 what they are saying and what they are looking for, 0:18:23.840 --> 0:18:24.639 you can make it work. 0:18:24.680 --> 0:18:26.760 So how did you I'm interested to notice because you 0:18:26.800 --> 0:18:29.639 started in the game very young twenty early twenties and 0:18:30.760 --> 0:18:33.359 twenty three. You know humble beginnings, like your family was 0:18:34.480 --> 0:18:37.439 in real estate. So how do you get your first deal? 0:18:37.480 --> 0:18:38.960 How do you learn the language? How do you get 0:18:39.000 --> 0:18:42.800 your first deal in real estate as a developer? Like 0:18:42.840 --> 0:18:44.639 how does that? Can you walk me through that process, 0:18:44.640 --> 0:18:47.080 like your very first deal, Like how does that happen? 0:18:47.200 --> 0:18:49.760 So my first deal was actually a four unit investment. 0:18:49.840 --> 0:18:52.399 It was a real estate investment type. Okay, it was 0:18:52.440 --> 0:18:54.920 a hud home on the north west side of Milwaukee 0:18:54.920 --> 0:18:58.280 by Hoole. Yeah, I just sold it about a year 0:18:58.320 --> 0:19:00.879 and a half ago. I bought that when I was 0:19:00.880 --> 0:19:05.280 twenty three. So let me rewind. Three and a half 0:19:05.320 --> 0:19:07.480 percent down it was only eighty five thousand dollars and 0:19:07.520 --> 0:19:10.399 I sawed for like one sixty So that was like, 0:19:10.480 --> 0:19:14.000 well played different, you know, it makes sense. So that 0:19:14.119 --> 0:19:18.119 was my entry entry point, but rewinding. So once I 0:19:18.119 --> 0:19:20.200 finished the acre program, I'm like, Okay, this real estate 0:19:20.240 --> 0:19:21.639 thing is cool. I think I want to figure out 0:19:21.640 --> 0:19:23.280 how to be a developer. I spent a lot of 0:19:23.359 --> 0:19:24.640