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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

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Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

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Speaker 1: are here illegally, your next you will be fined nearly

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Speaker 1: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right, leave now. Under President Trump, America's laws,

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Speaker 1: border and families will be protected.

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Speaker 2: Sponsored by the United States Department of Homeland Security Earners.

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Speaker 3: What's going on?

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Speaker 4: Listen, eylu is relaunching, revamping, retooling. That's why we're creating

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Speaker 4: a new educational experience that's more expensive.

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Speaker 5: Shot.

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Speaker 6: Tell what we got, Yes, twenty twenty three. We got

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Speaker 6: a lot in still a lot playing for you guys.

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Speaker 5: So you know that EYLU already.

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Speaker 6: Includes monthly financial planning calls with Me, book Club calls

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Speaker 6: with Troy, real estate calls with MG the Mortgage Guy,

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Speaker 6: access to the Home Buying Blueprint.

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Speaker 5: Volume one and Volume two. Part of the.

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Speaker 6: Revamp will include twenty seven local chapters from across the

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Speaker 6: United States, live interactive teaching hands on not just pre

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Speaker 6: recorded videos, plus fifteen brand new curriculums.

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Speaker 3: The biggest just got bigger.

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Speaker 7: Head over to eyl University dot com. That's EYL. You

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Speaker 7: n I V E R s I T Y dot com.

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Speaker 3: See you there.

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Speaker 8: I think one of the best ways is as you

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Speaker 8: drive around in neighborhoods and you see buildings, look at

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Speaker 8: those signs. One of those buildings has a ton of

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Speaker 8: signs that has every single company name on them.

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Speaker 3: Those are the people doing the developments.

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Speaker 8: What better place should you start than your backyard with

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Speaker 8: folks that are doing the work right now. So start

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Speaker 8: with looking at very practical way when you drive around,

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Speaker 8: take a picture of the signs, look them up, find

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Speaker 8: people on LinkedIn, whether they black women, find some commonality,

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Speaker 8: and try to, you know, get in with them. Whether

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Speaker 8: it be the architect, the construction company, the engineers, or

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Speaker 8: the developer. All of them work with developers all the time.

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Speaker 3: They know.

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Speaker 8: Developers don't say, oh, I don't want to result to

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Speaker 8: the architect because I don't want to do that. Architects

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Speaker 8: build for developers. Literally, they have a whole network of them,

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Speaker 8: so if you build a rapportable one, they can introduce

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Speaker 8: you to their well with dat.

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Speaker 5: All right, guys, welcome back, y l. This is very

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Speaker 5: rare air.

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Speaker 2: Let's start there.

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Speaker 5: Very rare that we we well. Nowadays especially is not

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Speaker 5: easy to earn. Alisha has become kind of like a

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Speaker 5: big deal for people to get on.

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Speaker 3: That's understatement.

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Speaker 5: Yeah, so to get on once is an accomplishment, but

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Speaker 5: to get on twice is an extremely rare feet. Only

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Speaker 5: a handful of people have ever graced the show twice.

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Speaker 3: A handful of people.

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Speaker 4: I try to run off the names, but we didn't

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Speaker 4: make it to a hand We didn't even get to

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Speaker 4: five fingers.

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Speaker 5: Not a lot so branding rule. We did this episode

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Speaker 5: probably somber and a half years ago, something.

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Speaker 4: Like that, between nineteen what's up a ninth to be exact,

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Speaker 4: because we had did the event December ninth, and that

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Speaker 4: was we did a triples interview day.

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Speaker 5: We was in DC and we shot some content and

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Speaker 5: he was one of the people that we shot and

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Speaker 5: at the time it went crazy. He was talking about

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Speaker 5: real estate development. I think he might have been the

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Speaker 5: first real estate developer that we've had on and kind

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Speaker 5: of giving him a breakdown of real estate development, how

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Speaker 5: it works, how he got started, how you get paid

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Speaker 5: as a real estate developer, affordable housing, variety of different things.

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Speaker 5: And he since then he has done a lot of

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Speaker 5: news construction and new development. So we talked about the

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Speaker 5: time you had a forty five million dollar grocery store

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Speaker 5: mixed use property twenty four thousand square foot one hundred

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Speaker 5: and fifty units in Madison, Wisconsin, and now that's completed, right, Yes,

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Speaker 5: And then you also are currently working on two thousand

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Speaker 5: units in Birmingham, Alabama. Yes, with nine hundred affordable.

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Speaker 8: No, so it's really like fifteen hundred affordable, but in

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Speaker 8: one of the development's nine hundred and twenty is a

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Speaker 8: part of that choice neighborhood grant that we'll talk about.

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Speaker 5: Okay, Yeah, and then you have one hundred and forty

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Speaker 5: two units in Milwaukee. Yes, that's over one hundred million

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Speaker 5: dollar project.

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Speaker 8: That one's well one hundred and forty units, but it's

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Speaker 8: about forty two million of the Harbor District, Harbond District.

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Speaker 5: And then you have you have a project in Houston, Texas.

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Speaker 8: Yeah, three hundred and forty units there, that's about one

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Speaker 8: hundred million.

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Speaker 5: So I had those numbers with the ones we said

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Speaker 5: before lot it's a lot so so yeah, so you

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Speaker 5: would looking at what walk so yeah, So I felt

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Speaker 5: like it would be good to have a follow up conversation,

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Speaker 5: said you talk about, yeah, what you got going now

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Speaker 5: in real estate development and what you've learned over the

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Speaker 5: last couple of years, and provide information and insults. So

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Speaker 5: first and foremost, thank you for joining us. Appreciate it.

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Speaker 3: Thank y'all. Man.

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Speaker 8: Before we jump into I want to say thank y'all too.

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Speaker 8: You know, we did this December ninety, twenty nineteen, and

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Speaker 8: y'all were an emerging company. Everybody knew the brand, you know,

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Speaker 8: but y'all are established now. So I appreciate y'all still respecting.

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Speaker 3: What I have going on and inviting me.

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Speaker 8: But I want to give you all your flowers too,

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Speaker 8: man Like what y'all did for the culture.

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Speaker 3: So many people come up to me.

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Speaker 8: Regularly, Yo, you changed my life on some Hey, I

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Speaker 8: never got into development, I know what this was like.

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Speaker 8: I'm thinking about investing, et cetera, et cetera, and I

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Speaker 8: know y'all get it too, but you know, the line's

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Speaker 8: share of that probably came from that exposure that they

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Speaker 8: got through this interview. So appreciate the platform y'all created

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Speaker 8: and what y'all doing for the culture.

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Speaker 4: We appreciate that, and to this day, man, that episode

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Speaker 4: was one of the you know, you have some episodes

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Speaker 4: when you're familiar with an area and so you're asking

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Speaker 4: questions because you want to get more knowledge, and then

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Speaker 4: there's some episodes where you're not really familiar, and one

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Speaker 4: of your was yours and it was like wow that

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Speaker 4: we were just blown away by it. So thank you

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Speaker 4: and thank you for showing up, not just for this interview,

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Speaker 4: but every time we've called you. You've been at multiple events.

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Speaker 4: Sometimes we see you out and it's like, yeah, it's

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Speaker 4: always loved. So I just want to thank you for

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Speaker 4: being a genuine person that you that we met in

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Speaker 4: December of twenty nineteen, to this day, what everything you become.

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Speaker 3: I mean it's a lot too, because I feel the

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Speaker 3: same about y'all.

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Speaker 5: Yeah, Lane just came off to invest Fest.

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Speaker 3: They did, sir, there is it's that frivolous to be updated.

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Speaker 5: Invest Fast. Twenty thousand people was in attendances. That was

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Speaker 5: a monumental feat and you definitely tore the stage down. Yes,

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Speaker 5: the real estate development panel, So that's something that you know,

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Speaker 5: we appreciate as well.

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Speaker 3: Well.

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Speaker 8: I want to make sure folks know if they haven't

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Speaker 8: saw it, they could catch the replay.

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Speaker 5: That's a fact.

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Speaker 3: That's why for free.

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Speaker 5: But that's a fact. That's a fact, all right, bet

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Speaker 5: So let's get into it. So let's start with the

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Speaker 5: Madison project, right. So when we first spoke you would

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Speaker 5: you just started the project. Now it's done. So the

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Speaker 5: grocery store aspect is something that's important for the communities

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Speaker 5: of every community, but especially you know, Black communities and

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Speaker 5: communities that have been disenfranchised. So you put together that

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Speaker 5: it's a mixed use of grocery store and actually housing.

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Speaker 5: So talk about start to finish some of the challenges

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Speaker 5: that you faced, obstacles, and why that project is important

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Speaker 5: and why it's important for Madison Wisconsin, which a lot

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Speaker 5: of people don't even know. Madison, Wisconsin actually has a

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Speaker 5: black population absolutely pretty sizable, of.

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Speaker 3: The most disenfranchisedments in the country too.

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Speaker 5: Yeah, so talk about that project and just kind of

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Speaker 5: give us to lay the land on that.

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Speaker 8: So yeah, like you said, you know, one hundred and

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Speaker 8: fifty units above a grocery store. So you go to

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Speaker 8: larger metropolitan cities, you'll see this combination growing, right, grocery

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Speaker 8: store with housing above. What you don't typically see is

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Speaker 8: affordable housing above a grocery store. It's typically market rate

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Speaker 8: because in the majority of those areas, groceris look for

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Speaker 8: higher income. At the end of the day, it's one

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Speaker 8: of the lowest margin businesses that you can have out there.

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Speaker 8: So if you're in an area of poverty and people are,

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Speaker 8: you know, it's a higher rate of theft that decreases

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Speaker 8: your margins. So it was a very difficult time finding

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Speaker 8: a grocer that wanted to actually be in an area.

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Speaker 8: I mean, I talked to all these I'll talk to

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Speaker 8: Trader Joe's Hope, who.

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Speaker 3: You name it.

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Speaker 8: I talked to all of them and they're like, nah,

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Speaker 8: we're not interested. And ironically, Kroger had just purchased a

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Speaker 8: pick and save next door when they were shutting it

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Speaker 8: down because it wasn't a part of their expansion in

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Speaker 8: their footprint. They're opening new stores, but this when it like,

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Speaker 8: now we're out. So this RFP was from the City

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Speaker 8: of Madison then and say, hey, we need a grocery

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Speaker 8: store and we want to do housing, so.

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Speaker 3: I compete it. RFP is the request for a proposal.

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Speaker 3: Good point.

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Speaker 8: So the city put out, hey, we have three and

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Speaker 8: a half acres worth of land. We want someone to

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Speaker 8: come in and develop this. Someone sent it to me.

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Speaker 8: I'm like, all right, cool, let me check it out.

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Speaker 8: At that time, I was thinking about doing a nine

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Speaker 8: percent tax credit deal or four percent tax credit deals,

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Speaker 8: two different ones. One is competitive, ones not. And the

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Speaker 8: nine percent round based on the time and in which

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Speaker 8: they put it out, was already passed but had to

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Speaker 8: wait a year. What I did creatively was put it

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Speaker 8: as a four percent deal because I had more time

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Speaker 8: to submit that, and I actually got my application in

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Speaker 8: and was able to deliver a year before anybody else.

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Speaker 5: Well, talk about what does that mean? Four percent tax

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Speaker 5: credit deal?

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Speaker 8: So the long come out of the tax credit is

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Speaker 8: broken out in two different things. Nine percent and four percent.

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Speaker 8: It's a very complex structure to be ho so won't

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Speaker 8: even get into it heavily. But at the nine percent,

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Speaker 8: seventy percent in theory of all your total development costs

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Speaker 8: will be funded by that, and then on the four percent,

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Speaker 8: thirty percent of your total development costs will be funded

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Speaker 8: by that. So if you think about, Okay, cool, I

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Speaker 8: have a deal that's one hundred million, I'm getting seventy

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Speaker 8: million from this tax credit. I'm getting thirty million from

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Speaker 8: this tax credit. Just to keep it simple. So most

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Speaker 8: we're looking at it from the nine percent perspective because

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Speaker 8: you get more credits. But I was thinking about how

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Speaker 8: do we creatively do it quicker with the four percent,

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Speaker 8: and Wisconsin had just introduced a state credit that mirrored

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Speaker 8: the nine percent. All this extra stuff, but I ended

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Speaker 8: up creating value by saying, Okay, let me financially engineer

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Speaker 8: this thing so I can outpace all of my competitors.

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Speaker 8: There were four I think primary applicants for four finalists

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Speaker 8: at the time when we responded, I was one of

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Speaker 8: the four, and then I went to a ton of

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Speaker 8: community meetings. I mean, I'm out there, getting there at

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Speaker 8: six seven pm, leaving at midnight, literally standing there waiting

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Speaker 8: till the last single person left, answering every single question.

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Speaker 8: So I was like building with the community as much

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Speaker 8: as I could, and ended up getting awarded in December

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Speaker 8: of twenty nineteen, ironically, right around the time we were

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Speaker 8: talking about it. No, it must have been like September

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Speaker 8: Q three, Q four, twenty nineteen is when I got

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Speaker 8: it awarded from the city.

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Speaker 3: But that was just the first step.

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Speaker 8: Once you get the land awarded, you got to go

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Speaker 8: and actually like put the financial plan together.

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Speaker 3: So then I'm applying for tax credits. So when we

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Speaker 3: did our interview.

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Speaker 8: I got the land under contract, but I had to

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Speaker 8: go out and apply for the tax credits. So I

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Speaker 8: applied for that, ended up getting awarded. Found a grocerer.

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Speaker 8: It didn't work out with that grocery. It was a

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Speaker 8: black and Latino led grocery store. So you had an

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Speaker 8: all black, you had a black lead development team. I

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Speaker 8: partnered with a local nonprofit and then we had a

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Speaker 8: black and Latina grocery store, and we had so much flack.

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Speaker 8: I mean, government everybody. Now the government was on my side. Luckily,

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Speaker 8: the mayor wanted to see the black developer, you know,

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Speaker 8: move forward. It was a community. Yeah, some parts of

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Speaker 8: the community. So this one, let's put let's say it's

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Speaker 8: a circle, right, sixty percent of this circle is black community,

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Speaker 8: you know, twenty percent is long. And there was a

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Speaker 8: white community there. Yeah, like Asian. Yeah, they were like,

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Speaker 8: it's among Asian community over there as well.

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Speaker 5: There's Mongolia means I don't know where what's mong me

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Speaker 5: I never heard that before. That's a that's a good

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Speaker 5: like an acronym.

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Speaker 3: No, it's like ethnicity, you know, it's kind of like

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Speaker 3: go on to Google search on this one. Let's do that.

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Speaker 3: Let's not get us bend. Yeah in fact, but but yes,

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Speaker 3: it's an Asian community. It was.

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Speaker 8: It's black, it's melt black, Asian, Hispanic, et cetera. But

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Speaker 8: this small kind of white community was very supportive and

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Speaker 8: it was more affluent than some of the other neighborhoods around.

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Speaker 3: It was very supportive.

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Speaker 8: But there was a couple of bad apples that were

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Speaker 8: like intentionally trying to pull it down because they didn't

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Speaker 8: want me to succeed, which, ironically, I won't say the

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Speaker 8: names to some of the organizations, but leading black led

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Speaker 8: organizations in this country in the world were fighting against

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Speaker 8: me doing this development. Why this is it was the

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Speaker 8: most irrational things.

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Speaker 5: What was their reason that they were saying.

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Speaker 8: They just wanted another developer, the majority developer that was local.

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Speaker 3: They thought he was a better fit to be the developer.

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Speaker 5: Was he black?

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Speaker 3: Of course not.

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Speaker 4: That's interesting. The race part is one thing. Yeah, but

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Speaker 4: even for us, like even now, dealing with like real

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Speaker 4: estate and dealing with developers, that that's an issue. But

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Speaker 4: dealing with municipalities is an issue too. You said the

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Speaker 4: mayor was on your side. Yes, talk about that process,

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Speaker 4: because I'm sure there was challenges dealing with municipalities trying

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Speaker 4: to get this development all.

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Speaker 8: Yeah, it was typically there is, but this one actually

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Speaker 8: not many. They were fully on my side because the

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Speaker 8: r if he came from them. They had a vested

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Speaker 8: interest in moving us forward too. They wanted to see

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Speaker 8: the grocery store. They appreciated that it was a black

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Speaker 8: developer coming into a city that was black and had

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Speaker 8: a tremendous amount of black issues, and they wanted to

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Speaker 8: see me grow and prosper.

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Speaker 3: I found a local.

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Speaker 8: Nonprofit that I could partner with because they knew the

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Speaker 8: local lay of the land a little better. They knew

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Speaker 8: where the pockets and money were in Dane County and

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Speaker 8: the City of Madison, etc. So the municipalities were actually great.

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Speaker 8: It was not an issue with them at all. They

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Speaker 8: were fully to this day I have a call today

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Speaker 8: with them about the grocery store. And to this day,

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Speaker 8: Dan Ropes, who I met with, he's been phenomenal across

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Speaker 8: the board.

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Speaker 3: He's staff leveled at the city.

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Speaker 4: When you're fighting the power well the people that were

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Speaker 4: trying to stop this and derail the development, how are

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Speaker 4: you facing this?

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Speaker 3: Why do you meet this challenge?

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Speaker 8: I think just really foreman relationships and allies, having the

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Speaker 8: common council with you. So every there's a mayor and

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Speaker 8: then there's a council that governs like all of the

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Speaker 8: decisions that are made. So in this development there was one.

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Speaker 8: I was in one's district, but across the street was

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Speaker 8: another district. So those two council people in particular were

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Speaker 8: very influential in like keeping their constituents at Bay. Again,

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Speaker 8: there were a couple bad apples that was like, nah,

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Speaker 8: we just don't want him to do it for no reason.

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Speaker 8: I mean, they just thought that I couldn't do it.

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Speaker 8: To be honest, I was it. I did well, I

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Speaker 8: could do it clearly is done. So it got done.

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Speaker 8: But other than me being a young black developer, they

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Speaker 8: just didn't want that. But having those allies in the

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Speaker 8: city definitely helped me overcome some of those challenges.

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Speaker 5: So, okay, so you get the political support, but now

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Speaker 5: you have to actually and it didn't have to be

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Speaker 5: a grocery store. That was just your idea.

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Speaker 8: No, they wanted it so part of them. Yeah, that's

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Speaker 8: a good point. The request for proposal that they put out,

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Speaker 8: they got these three and a half acres, we want

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Speaker 8: a grocery store at the bottom and something above. So

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Speaker 8: it didn't have to be housing. It didn't have to

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Speaker 8: be wordable housing. That was your idea, that was my idea.

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Speaker 5: So all right, so how do you so once you

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Speaker 5: get past the hurdles and you actually get the RFB, Yeah,

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Speaker 5: now you actually have to put the plan together. Yes,

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Speaker 5: So you have to get the funding, yes, and you

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Speaker 5: have to get the grocery store yes, correct, So how

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Speaker 5: do you get the funding and how do you get

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Speaker 5: the grocery store?

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Speaker 8: So at the time of the submission with the RFP,

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Speaker 8: you have to have an idea of what that plan

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Speaker 8: is and Honestly, when you give it to them, it's

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Speaker 8: got to be close enough to pass the smell test.

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Speaker 8: But whatever you submit then is not really how it's

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Speaker 8: going to end up. Like the articles. At that time,

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Speaker 8: thirty one year old developer, I'm thirty four, now be

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Speaker 8: thirty five. In a couple of days, thirty one year

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Speaker 8: old developer is developing a forty one million dollar project.

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Speaker 8: That project ended up being over forty five million, So

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Speaker 8: that's a four million dollar delta. You know, that's a

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Speaker 8: ten percent increase in construction costs or whatever, and you

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Speaker 8: got to find financing for it. So based on all

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Speaker 8: of the rents that come in, you can figure out

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Speaker 8: what the value that property is. The bank will give

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Speaker 8: you a loan based upon the value, so they say, hey,

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Speaker 8: we'll go since it's affordable, eighty five percent loan to value.

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Speaker 8: Right now, you have to find a fifteen percent delta

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Speaker 8: between that kind of loan of value and what the

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Speaker 8: rest is.

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Speaker 3: But the challenge with affordable housing I mentioned.

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Speaker 8: On the previous episode is the value of that property

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Speaker 8: is less than the cost of construction. So the value

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Speaker 8: may only be fifteen million, even though it cost forty

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Speaker 8: five to bill because.

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Speaker 3: You're restricting the rents.

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Speaker 8: So now, okay, cool, I got let's just call it

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Speaker 8: twelve million of tax credit. It was probably closer to

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Speaker 8: like twenty but let's just say twenty million in tax credits.

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Speaker 3: Forty five million total.

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Speaker 8: Well, the loan might have only been fifteen, so ten

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Speaker 8: million dollar loan, forty five million dollar deal. You add

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Speaker 8: about twenty so twenty seven million in tax credits, So

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Speaker 8: now I have thirty five. We condoled out the grocery store.

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Speaker 8: We did not put it together. It's two different buildings.

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Speaker 8: On paper, it's the same structure, but it's two different entities.

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Speaker 8: So the grocery store fortunately was purchased by the city.

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Speaker 8: The City of Madison bought the grocery store back and

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Speaker 8: they're now leasing the grocery space. I don't have that

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Speaker 8: risk anymore. It's a lot of value there for me

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Speaker 8: being a developer, because if I was leasing that out

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Speaker 8: and the grocery store failed, I'm still on the hook

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Speaker 8: for that loan, as opposed to the city who used

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Speaker 8: their funding dollars. They don't have a loan. They just

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Speaker 8: can lease it out and make sure that that.

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Speaker 3: Grocery store is successful.

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Speaker 8: So we were paid four point six, So that was

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Speaker 8: another let's just call it five. So you know you

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Speaker 8: got ten plus to twenty from the tax credit, plus

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Speaker 8: another five here thirty five or so. Now I need

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Speaker 8: to find ten million more dollars to fill this gap.

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Speaker 8: The city of Madison ended up giving me a million

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Speaker 8: and a half for the affordable housing piece. The city

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Speaker 8: of Dane County gave me a little less than two million.

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Speaker 8: We applied for a federal home loan bank that had

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Speaker 8: this affordable housing program.

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Speaker 3: We applied for that.

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Speaker 8: We received nine hundred thousand I think from them as well.

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Speaker 8: So you just go and find, like all of these

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Speaker 8: places to plug the gap, and then once you get

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Speaker 8: it to a point where it's close enough, you defer

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Speaker 8: if my developer fee. My developer fee on that was

402
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Speaker 8: five million, but you have to defer at least half.

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Speaker 8: We talk about why later, but that two and a half.

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Speaker 8: Let's say I have a million dollar overrun. Now I

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Speaker 8: gotta defer three and a.

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Speaker 3: Half instead of two and a half.

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Speaker 8: So you just find enough sources so you can make

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Speaker 8: your fee and then it cash flows.

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Speaker 3: But that's essentially what it is.

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Speaker 8: You just go out and go to different cities, give

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Speaker 8: different counties and find different funding sources based upon whatever

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Speaker 8: program you have, and affordability typically has some.

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Speaker 3: Pockets and money out there.

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Speaker 4: So the affordable housing piece, you didn't have to do that,

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Speaker 4: like you said, but I know it's something that's.

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Speaker 3: Personally it was encouraged. But yeah, it's definitely persased to.

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Speaker 4: So talk about that, right because you could have done

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Speaker 4: commercial real estate, You're i mean super intelligent, you could

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Speaker 4: have done, but you're doing more community real estate. So

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Speaker 4: talk about why it's so personal to you and why

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Speaker 4: you continue to go down that path.

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Speaker 8: One, I mean for that deal in particular, some of

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Speaker 8: the other proposal student housing, because it's right about University Wisconsin.

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Speaker 8: You know that's a huge university, forty plus thousand people.

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Speaker 8: You can make a lot more money doing that. But

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Speaker 8: for me, it's like my first deals were in my backyard,

427
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Speaker 8: iss how I started. I'm like, yo, I want to

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Speaker 8: develop in this area at its face and gentrification and

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Speaker 8: the fact that I started in community development, I'm gonna

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Speaker 8: never let that go. So I work really closely now

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Speaker 8: with this guy, Egbert Perry.

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Speaker 3: He's a genius.

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Speaker 8: He was the former board chair Fannie May Like coming

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Speaker 8: out the recession, he's on the border pen just a

435
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Speaker 8: dope dope guy and developer, And one of the things

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Speaker 8: he enlightened me on was there's a huge difference between

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Speaker 8: community development and commercial real estate. Right, So commercial real

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Speaker 8: estate is let's just call it capital peece for profit

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Speaker 8: and a small and maybe no informasion. You go, you

440
00:20:58,080 --> 00:21:00,880
Speaker 8: make the money. It is what it is is transactional.

441
00:21:01,240 --> 00:21:03,680
Speaker 8: Community development, on the other hand, is a very large

442
00:21:03,760 --> 00:21:06,679
Speaker 8: information and it might be a small piece for profit.

443
00:21:07,119 --> 00:21:08,960
Speaker 8: So when I was starting off, everything I did was

444
00:21:09,000 --> 00:21:11,440
Speaker 8: community development. When we spoke last time, everything I was

445
00:21:11,440 --> 00:21:15,160
Speaker 8: doing was community development. But now I'm transitioning into commercial

446
00:21:15,160 --> 00:21:18,320
Speaker 8: real estate because although I am passionate about the community

447
00:21:18,320 --> 00:21:22,119
Speaker 8: development piece, it's difficult to build your entire business around that.

448
00:21:22,560 --> 00:21:24,960
Speaker 8: So you have to have the balance, yah know, diversification

449
00:21:25,080 --> 00:21:26,800
Speaker 8: right at the end of the day. So now I'm

450
00:21:26,800 --> 00:21:29,840
Speaker 8: getting into more market race stuff, whether it be studios

451
00:21:29,880 --> 00:21:32,800
Speaker 8: that I'm developing or market rate housing, et cetera. I'm

452
00:21:32,840 --> 00:21:36,000
Speaker 8: doing both, but really what I'm more so focused on

453
00:21:36,280 --> 00:21:39,560
Speaker 8: is master plans where I can like commingle both in

454
00:21:39,600 --> 00:21:42,280
Speaker 8: the same space. So the stuff that we're doing in

455
00:21:42,320 --> 00:21:43,879
Speaker 8: Birmingham is a prime example of that.

456
00:21:44,320 --> 00:21:50,040
Speaker 5: So like for people, you know, people always have criticisms,

457
00:21:50,359 --> 00:21:54,600
Speaker 5: so they'll say, like Alisia, like you're only interviewing rappers, now,

458
00:21:54,640 --> 00:21:57,639
Speaker 5: like what about like did he he's talking about liquor.

459
00:21:57,680 --> 00:21:59,680
Speaker 5: That's not something that we need. We need more always

460
00:21:59,720 --> 00:22:05,119
Speaker 5: gros store itself, follow you, follow you, folks. This is

461
00:22:05,200 --> 00:22:10,680
Speaker 5: something that actually is extremely important. From the grocery store

462
00:22:10,720 --> 00:22:13,480
Speaker 5: aspect and the housing aspect is probably the two most

463
00:22:13,560 --> 00:22:16,960
Speaker 5: essential things in life, actually food and shelter. So this

464
00:22:17,080 --> 00:22:22,600
Speaker 5: is a model that is actually very interesting to have

465
00:22:22,640 --> 00:22:25,560
Speaker 5: a grocery store and then affordable housing on top of

466
00:22:25,600 --> 00:22:28,000
Speaker 5: a grocery store. Do you think that this is something

467
00:22:28,040 --> 00:22:31,480
Speaker 5: that can be duplicated and if so, like for other

468
00:22:31,520 --> 00:22:36,040
Speaker 5: people that might be interested, like how what's the blueprint

469
00:22:36,080 --> 00:22:41,040
Speaker 5: for this model in disenfranchised neighborhoods moving forward? Because, like

470
00:22:41,080 --> 00:22:44,719
Speaker 5: I said, that actually is something that encompasses a variety

471
00:22:44,760 --> 00:22:47,520
Speaker 5: of different things. You know, we talked about food deserts. Yes,

472
00:22:47,640 --> 00:22:52,359
Speaker 5: so access to food is extremely important and access to

473
00:22:52,400 --> 00:22:54,800
Speaker 5: have somewhere to live is extremely important. So you can

474
00:22:54,880 --> 00:22:56,840
Speaker 5: if you can knock out two birds of one stone,

475
00:22:57,480 --> 00:22:59,680
Speaker 5: that's kind of an amazing accomplishment.

476
00:23:00,240 --> 00:23:02,440
Speaker 8: Yeah, So the great question by the way I think

477
00:23:02,560 --> 00:23:04,879
Speaker 8: for that there is a model for sure. I think

478
00:23:05,200 --> 00:23:07,520
Speaker 8: you've seen it a little bit, but we should see

479
00:23:07,560 --> 00:23:10,240
Speaker 8: more of it in the future. For anyone looking to

480
00:23:10,240 --> 00:23:13,520
Speaker 8: do it, I think where you start is really understanding

481
00:23:13,560 --> 00:23:16,040
Speaker 8: development first, because if you don't get that, if the

482
00:23:16,160 --> 00:23:19,000
Speaker 8: numbers don't work, we're just talking like this isn't charity.

483
00:23:19,040 --> 00:23:20,960
Speaker 8: It's business at the end of the day, and big,

484
00:23:21,000 --> 00:23:24,560
Speaker 8: big business, like even community development is big, big business.

485
00:23:24,560 --> 00:23:27,320
Speaker 3: We're talking hundreds of millions. Just in my portfolio.

486
00:23:27,680 --> 00:23:32,080
Speaker 8: There's billions of dollars going out monthly to these type

487
00:23:32,119 --> 00:23:34,879
Speaker 8: of deals. That's not Hey, I want to do this

488
00:23:35,040 --> 00:23:38,800
Speaker 8: type stuff. So to answer that, I think one understanding

489
00:23:38,800 --> 00:23:43,200
Speaker 8: development and really community development. One of the unique things

490
00:23:43,200 --> 00:23:46,199
Speaker 8: from a macroeconomic perspective that I did in Madison was

491
00:23:46,680 --> 00:23:50,840
Speaker 8: that particular neighborhood is in an area that has like

492
00:23:50,960 --> 00:23:54,360
Speaker 8: healthy connectivity around it. So yeah, the food desert may

493
00:23:54,359 --> 00:23:58,840
Speaker 8: be leaving, but there are other things there that this

494
00:23:59,040 --> 00:24:03,920
Speaker 8: development being affordable is going to enhance some of those

495
00:24:03,920 --> 00:24:06,280
Speaker 8: other things. The urban legomatics just put up a new building.

496
00:24:06,320 --> 00:24:10,000
Speaker 8: There's a tremendous amount of new development nearby. So my

497
00:24:10,080 --> 00:24:14,320
Speaker 8: recommendation would be find an area that is, yes, in

498
00:24:14,359 --> 00:24:18,160
Speaker 8: the food desert, but the nicest area within that. Don't

499
00:24:18,200 --> 00:24:22,119
Speaker 8: go to the worst area in the area like that

500
00:24:22,160 --> 00:24:25,120
Speaker 8: community and say I want to do that here. It's

501
00:24:25,160 --> 00:24:28,960
Speaker 8: probably not going to work. From a numbers perspective, find

502
00:24:29,000 --> 00:24:31,159
Speaker 8: something on the fringes. If there's let's say a two

503
00:24:31,240 --> 00:24:34,159
Speaker 8: mile radius that you're looking at, what is the best

504
00:24:34,200 --> 00:24:36,200
Speaker 8: area within this two mile radius that you could still

505
00:24:36,280 --> 00:24:39,440
Speaker 8: feel like connected to. Yeah, I'm doing this in my community,

506
00:24:39,960 --> 00:24:43,360
Speaker 8: but it's closer to whatever catalytic development is around here.

507
00:24:43,560 --> 00:24:46,040
Speaker 8: You want to always align yourself with something else that's

508
00:24:46,080 --> 00:24:49,480
Speaker 8: going on. You don't want to build in like I'm

509
00:24:49,480 --> 00:24:51,080
Speaker 8: not saying you don't want to, but you don't want

510
00:24:51,119 --> 00:24:56,280
Speaker 8: to build. From a business owner perspective, I don't want

511
00:24:56,280 --> 00:25:00,520
Speaker 8: to own something that is retail specifically in in an

512
00:25:00,560 --> 00:25:05,399
Speaker 8: area that has no healthy connectivity around it. Start there

513
00:25:05,640 --> 00:25:08,440
Speaker 8: and then move into those areas. So it's kind of

514
00:25:08,440 --> 00:25:11,080
Speaker 8: like the reverse of gentrification almost right. It's like, how

515
00:25:11,119 --> 00:25:15,080
Speaker 8: do we go align with that stuff and then continuously

516
00:25:15,240 --> 00:25:18,320
Speaker 8: like spread it to the other parts of the community.

517
00:25:18,560 --> 00:25:23,119
Speaker 8: Gentrification isn't bad. Displacement is bad. Those are two different things.

518
00:25:23,960 --> 00:25:26,840
Speaker 8: If we can build and develop in our communities and

519
00:25:26,840 --> 00:25:29,800
Speaker 8: not displace the people within it. It's beauty. So that's

520
00:25:29,840 --> 00:25:32,080
Speaker 8: how you do it. You put the healthy you look

521
00:25:32,119 --> 00:25:35,159
Speaker 8: for what's healthy in that area of a food desert,

522
00:25:35,600 --> 00:25:39,000
Speaker 8: and put a plan in that area, and then it'll

523
00:25:39,040 --> 00:25:40,959
Speaker 8: start to expand down to the other areas that need

524
00:25:41,000 --> 00:25:41,440
Speaker 8: it the most.

525
00:25:41,960 --> 00:25:44,080
Speaker 4: How much I mean, you have the proof of concept, right,

526
00:25:44,080 --> 00:25:46,000
Speaker 4: You've done this. So when you're doing this in Madison

527
00:25:46,119 --> 00:25:49,040
Speaker 4: before you get to the Harbor district, are you showing

528
00:25:49,080 --> 00:25:51,280
Speaker 4: this the scale I can do this? And now is

529
00:25:51,320 --> 00:25:53,159
Speaker 4: it making that process easier for you?

530
00:25:53,359 --> 00:25:54,440
Speaker 3: Number one? And number two?

531
00:25:55,240 --> 00:25:57,080
Speaker 4: How many developments are you taking on at a time

532
00:25:57,119 --> 00:26:00,720
Speaker 4: before it's like maybe the can we handle this much workflow?

533
00:26:00,960 --> 00:26:03,560
Speaker 3: Yeah, that's a great question too. So absolutely.

534
00:26:03,640 --> 00:26:06,800
Speaker 8: I think in Wisconsin in particular, I'm one of like

535
00:26:07,040 --> 00:26:08,879
Speaker 8: I'm one of the biggest developers in the state, you know,

536
00:26:08,920 --> 00:26:12,040
Speaker 8: regardless of race, color, age, any of that. So when

537
00:26:12,080 --> 00:26:15,320
Speaker 8: I pull up they see my resume. Now, that deal

538
00:26:15,320 --> 00:26:16,840
Speaker 8: we just talked about with the grocery serve, that was

539
00:26:16,840 --> 00:26:19,440
Speaker 8: the largest development in the state from a tax credit

540
00:26:19,480 --> 00:26:21,919
Speaker 8: perspective that year. This Harvard district one that I just

541
00:26:21,920 --> 00:26:23,600
Speaker 8: got in twenty twenty three, that's the largest one in

542
00:26:23,640 --> 00:26:26,919
Speaker 8: the state that was funded. So like, I now have

543
00:26:27,000 --> 00:26:28,919
Speaker 8: the track record where it's like now I'm standing on

544
00:26:28,920 --> 00:26:31,880
Speaker 8: my own and they look at me as if I'm

545
00:26:31,880 --> 00:26:35,960
Speaker 8: one of the historically you know, white developers, right, but

546
00:26:36,040 --> 00:26:38,960
Speaker 8: I'm black and I'm coming with energy and mission and

547
00:26:39,080 --> 00:26:42,080
Speaker 8: like community with me. So I think having that entire

548
00:26:42,160 --> 00:26:45,960
Speaker 8: story helps. What also helps is Milwaukee has changed. Man

549
00:26:46,200 --> 00:26:48,520
Speaker 8: Historically has been the worst place for black people. But

550
00:26:48,560 --> 00:26:51,040
Speaker 8: the Mayor's now black, the head of the county's black.

551
00:26:51,400 --> 00:26:53,680
Speaker 8: The head of the Weeda Economic Development in the whole

552
00:26:53,680 --> 00:26:56,119
Speaker 8: state of Wisconsin that was appointed by the governor's black.

553
00:26:56,760 --> 00:26:59,680
Speaker 3: The pretty much all the.

554
00:26:59,600 --> 00:27:02,640
Speaker 8: Positions, the power of the head of that you know DCD,

555
00:27:02,800 --> 00:27:05,280
Speaker 8: the community development arm that puts the money out is black.

556
00:27:05,720 --> 00:27:09,840
Speaker 8: Head of CDBG funds is black. So it's like so

557
00:27:09,920 --> 00:27:12,359
Speaker 8: renoissance on of us. It's like okay, cool, Like we

558
00:27:12,520 --> 00:27:15,600
Speaker 8: all are on that same wave. So I don't have

559
00:27:15,680 --> 00:27:18,160
Speaker 8: to sell it because they get it. So a lot

560
00:27:18,160 --> 00:27:20,520
Speaker 8: of the areas. That's why I'm in Birmingham too. It's like, Okay,

561
00:27:20,680 --> 00:27:24,080
Speaker 8: Madison got it, Milwaukee gets it, Birmingham gets it, the

562
00:27:24,160 --> 00:27:27,440
Speaker 8: land gets to DC gets it, Houston gets it. That's

563
00:27:27,440 --> 00:27:29,840
Speaker 8: why many these markets, I don't need to sell the

564
00:27:29,840 --> 00:27:31,880
Speaker 8: fact that black people should be able to do good

565
00:27:31,920 --> 00:27:33,399
Speaker 8: business regardless of color.

566
00:27:33,800 --> 00:27:36,520
Speaker 3: They get it. So the fact that I bring my resume.

567
00:27:36,160 --> 00:27:38,960
Speaker 8: And expertise, I could show just hey, this is what

568
00:27:39,000 --> 00:27:40,840
Speaker 8: I've done, this is what I do it for, and

569
00:27:40,840 --> 00:27:42,040
Speaker 8: this is what I'm looking to do here in that

570
00:27:42,080 --> 00:27:44,400
Speaker 8: respect it So you said last.

571
00:27:44,200 --> 00:27:47,280
Speaker 5: Time, like in order for a developer to really get

572
00:27:47,400 --> 00:27:49,240
Speaker 5: into the game, most time you have to like work

573
00:27:49,320 --> 00:27:53,520
Speaker 5: under like a JV or an established developer. Absolutely, So

574
00:27:53,560 --> 00:27:56,680
Speaker 5: at what point can you branch out on your own

575
00:27:57,240 --> 00:28:01,840
Speaker 5: and not have to ride with another person in the car?

576
00:28:02,720 --> 00:28:07,120
Speaker 8: From a tax credit type perspective, So community developm let's

577
00:28:07,119 --> 00:28:08,920
Speaker 8: break out community development and commercial real estate.

578
00:28:08,920 --> 00:28:11,960
Speaker 3: Commercial real estate. If you have money, you can.

579
00:28:11,880 --> 00:28:16,400
Speaker 8: Go tomorrow, you know, like a billionaire can literally go

580
00:28:16,440 --> 00:28:19,280
Speaker 8: and hire development consultants and just put up a development

581
00:28:19,280 --> 00:28:21,199
Speaker 8: if you wanted to. So you can do that with

582
00:28:21,200 --> 00:28:24,960
Speaker 8: no problem. Community development tax credit I wouldn't recommend it

583
00:28:25,119 --> 00:28:26,919
Speaker 8: because the returns are probably not going to be what

584
00:28:26,960 --> 00:28:28,720
Speaker 8: you want them to be, and they don't have the

585
00:28:28,760 --> 00:28:30,520
Speaker 8: same vested interest in them. You don't know what's going on.

586
00:28:30,560 --> 00:28:32,639
Speaker 8: You probably gonna lose your money, but you can do

587
00:28:32,680 --> 00:28:34,919
Speaker 8: it from a community development perspective when you're trying to

588
00:28:34,960 --> 00:28:38,400
Speaker 8: develop these communities and tax credit deals and affordable housing.

589
00:28:40,160 --> 00:28:44,280
Speaker 8: A HECK is the governing counsel of all tax credit

590
00:28:44,320 --> 00:28:48,120
Speaker 8: equity investors. They set a standard that was a million

591
00:28:48,200 --> 00:28:52,680
Speaker 8: dollars of liquidity and five million in network. So that's

592
00:28:52,720 --> 00:28:54,720
Speaker 8: really the starting the fence. Again, if you do what

593
00:28:54,880 --> 00:28:59,480
Speaker 8: to develop to be able to get the tax credit

594
00:28:59,480 --> 00:29:02,000
Speaker 8: equity and to allow you to be the developer.

595
00:29:01,640 --> 00:29:03,920
Speaker 5: You have a million dollars in liquid and five.

596
00:29:04,680 --> 00:29:06,280
Speaker 3: That's pretty much the standard.

597
00:29:06,320 --> 00:29:08,440
Speaker 8: But as deals get larger, if you're doing a fifty

598
00:29:08,440 --> 00:29:10,480
Speaker 8: plus million dollar deal, they gonna want to see a

599
00:29:10,520 --> 00:29:13,120
Speaker 8: little bit more and typically they want to see the experience.

600
00:29:13,160 --> 00:29:15,320
Speaker 8: But like that is, if there was a benchmark, that

601
00:29:15,360 --> 00:29:17,400
Speaker 8: would be it. And most of the time when we start,

602
00:29:17,480 --> 00:29:20,080
Speaker 8: now million dollars of cash and or a five million

603
00:29:20,160 --> 00:29:22,840
Speaker 8: net worth is not really there for folks. So you

604
00:29:22,920 --> 00:29:24,680
Speaker 8: got a JV and partner, like we explained on the

605
00:29:24,760 --> 00:29:26,960
Speaker 8: last episode, to be able to get to that point.

606
00:29:27,120 --> 00:29:30,600
Speaker 8: So now like I'm there, I'm doing like Harvard District,

607
00:29:30,640 --> 00:29:32,560
Speaker 8: it's on my own. I'm bringing in a good friend

608
00:29:32,600 --> 00:29:34,760
Speaker 8: of mine who's been doing my development consult Michael Amm,

609
00:29:35,600 --> 00:29:40,000
Speaker 8: and we're just gonna partner on it. I stand on

610
00:29:40,000 --> 00:29:41,840
Speaker 8: my own and everything, but he's a brother that I

611
00:29:41,880 --> 00:29:44,320
Speaker 8: really trust in respect. So it's like, now, let's just

612
00:29:44,360 --> 00:29:46,680
Speaker 8: do this together. So it's not like I needed him

613
00:29:46,720 --> 00:29:48,520
Speaker 8: at all, and frankly, he doesn't need me, but it

614
00:29:48,560 --> 00:29:51,800
Speaker 8: makes sense for us to like share, divide and conquer that.

615
00:29:52,560 --> 00:29:54,440
Speaker 8: To answer your question earlier about like, how do you

616
00:29:54,480 --> 00:29:58,920
Speaker 8: know when it's too much? Right now, I mean, it's

617
00:29:58,960 --> 00:30:02,400
Speaker 8: only I just hire my first person a couple months ago.

618
00:30:02,960 --> 00:30:05,280
Speaker 8: It's been me this whole time, full time. That's why

619
00:30:05,320 --> 00:30:08,200
Speaker 8: I don't put off this content. I'll just be working literally,

620
00:30:08,640 --> 00:30:12,240
Speaker 8: like I'm a staff of I've been a staff of one.

621
00:30:12,320 --> 00:30:15,040
Speaker 8: I had people assisting, and even the person that are hired,

622
00:30:15,320 --> 00:30:18,440
Speaker 8: she's been helping for like two years or so. But

623
00:30:18,520 --> 00:30:21,000
Speaker 8: full time, it's just me and one other person right now.

624
00:30:22,040 --> 00:30:22,720
Speaker 3: I didn't know that.

625
00:30:23,720 --> 00:30:28,360
Speaker 8: Wow, I am primarily doing the work. It's not like

626
00:30:28,400 --> 00:30:31,080
Speaker 8: I'm having team members do it. Like I'm atthe these

627
00:30:31,080 --> 00:30:33,560
Speaker 8: community meetings. I'm meeting with the folks, I'm putting together

628
00:30:33,560 --> 00:30:36,640
Speaker 8: the financial models. I'm looking at the construction plans like

629
00:30:36,720 --> 00:30:37,280
Speaker 8: I'm doing it.

630
00:30:37,600 --> 00:30:40,080
Speaker 4: When you broke down the financial model by square foot

631
00:30:40,120 --> 00:30:42,000
Speaker 4: the last time we spoke, I was, I mean, that

632
00:30:42,040 --> 00:30:44,560
Speaker 4: blew me away. And so I'm out looking at you

633
00:30:44,680 --> 00:30:47,600
Speaker 4: going from one hundred and forty unit development to now

634
00:30:47,680 --> 00:30:50,480
Speaker 4: in Birmingham where we got eleven hundred mixed unit.

635
00:30:50,840 --> 00:30:53,280
Speaker 3: Yeah, talk about scaling them.

636
00:30:53,360 --> 00:30:55,560
Speaker 4: What that looks like for you since you're i mean

637
00:30:55,880 --> 00:30:57,800
Speaker 4: talking about just being the sole person doing.

638
00:30:57,840 --> 00:31:00,920
Speaker 8: For sure, So partnerships, it's another key.

639
00:31:02,480 --> 00:31:04,360
Speaker 3: One. I knew.

640
00:31:04,840 --> 00:31:07,400
Speaker 8: I felt the market was changing. I didn't know it

641
00:31:07,400 --> 00:31:09,680
Speaker 8: would be this starting turn of the interest rates, but

642
00:31:09,760 --> 00:31:12,040
Speaker 8: I knew like we've been on the wave like OA

643
00:31:12,160 --> 00:31:16,479
Speaker 8: hit boom. Really from twenty ten to like twenty one

644
00:31:16,680 --> 00:31:20,240
Speaker 8: twenty two. That was a run that real estate hasn't seen.

645
00:31:21,120 --> 00:31:23,040
Speaker 8: Real estate is cyclical. It goes up and it goes down.

646
00:31:23,080 --> 00:31:25,080
Speaker 8: It's literally like this all the time. So I'm like, yo,

647
00:31:25,120 --> 00:31:27,920
Speaker 8: it's time that it's gonna go down. So I intentionally

648
00:31:27,920 --> 00:31:31,000
Speaker 8: didn't do any new developments. I was just working on

649
00:31:31,000 --> 00:31:34,200
Speaker 8: the construction of fourteen oh two eighteen eighty seven. I'm

650
00:31:34,200 --> 00:31:37,880
Speaker 8: gonna tell us, so I have right now three projects

651
00:31:38,880 --> 00:31:42,200
Speaker 8: little around a little over three hundred units under construction

652
00:31:42,280 --> 00:31:44,360
Speaker 8: right now in Wisconsin. So I was like, let me

653
00:31:44,440 --> 00:31:47,040
Speaker 8: just focus on that. But simultaneously I was looking for

654
00:31:47,520 --> 00:31:51,400
Speaker 8: how do I plan for the future where my time

655
00:31:51,480 --> 00:31:54,800
Speaker 8: right now may not yield this return, but my time

656
00:31:54,920 --> 00:31:55,480
Speaker 8: later will.

657
00:31:55,920 --> 00:31:58,760
Speaker 3: So I started to reach out to that.

658
00:31:58,840 --> 00:32:00,840
Speaker 8: I built a partnership with I grew An Egbert and

659
00:32:00,920 --> 00:32:03,960
Speaker 8: their team, and I started looking at master plan developments.

660
00:32:04,000 --> 00:32:05,440
Speaker 3: So that's what I was talking about before.

661
00:32:06,120 --> 00:32:09,480
Speaker 8: I didn't really get hit by the recession much because

662
00:32:10,000 --> 00:32:11,920
Speaker 8: all of my stuff was already kind of out the ground.

663
00:32:11,920 --> 00:32:14,120
Speaker 8: It's just being built. All my finance and is in order.

664
00:32:14,360 --> 00:32:17,520
Speaker 8: I put a pause on anything new. But as I

665
00:32:17,640 --> 00:32:20,400
Speaker 8: was pausing, I was working on this larger term stuff.

666
00:32:20,440 --> 00:32:23,320
Speaker 8: So I ended up getting eleven hundred units awarded that

667
00:32:23,360 --> 00:32:27,040
Speaker 8: we're developing with Smithfield Core that's in Birmingham, and we

668
00:32:27,240 --> 00:32:29,640
Speaker 8: just received the fifty million dollar grant on that, and

669
00:32:29,680 --> 00:32:34,160
Speaker 8: I also got about nine hundred units awards thank you. Yeah,

670
00:32:34,200 --> 00:32:38,120
Speaker 8: so that's about three three hundred with the market race,

671
00:32:38,160 --> 00:32:41,080
Speaker 8: so about three hundred fifty million in just the eleven hundred,

672
00:32:41,800 --> 00:32:44,840
Speaker 8: and then I have nine hundred units at tom Brown

673
00:32:45,120 --> 00:32:46,360
Speaker 8: in Birmingham that I'm.

674
00:32:46,240 --> 00:32:47,120
Speaker 3: Developing as well.

675
00:32:47,720 --> 00:32:50,040
Speaker 8: The way you can do that is like I looked

676
00:32:50,040 --> 00:32:54,400
Speaker 8: at capacity. We're doing the fifty million dollars broken out

677
00:32:54,400 --> 00:32:56,720
Speaker 8: into seven deals. I'm doing a deal a year for

678
00:32:56,720 --> 00:33:00,800
Speaker 8: the next seven years. And when I talked about the funding, right, Okay,

679
00:33:00,840 --> 00:33:03,400
Speaker 8: you have the loan, you have the tax for the equity,

680
00:33:03,760 --> 00:33:05,680
Speaker 8: but then you have to feel the rest. The fifty

681
00:33:05,680 --> 00:33:08,200
Speaker 8: million dollars is the gap filler for the rest. So

682
00:33:08,240 --> 00:33:15,960
Speaker 8: I have a pre pre funded seven deal run based

683
00:33:15,960 --> 00:33:18,680
Speaker 8: on fifty million dollars of a grant that was awarded

684
00:33:18,680 --> 00:33:19,720
Speaker 8: from the federal government.

685
00:33:20,080 --> 00:33:21,840
Speaker 3: So for me, that was capacity.

686
00:33:21,920 --> 00:33:23,719
Speaker 8: Like I don't need to do seven eight deals right

687
00:33:23,760 --> 00:33:26,480
Speaker 8: now because I'm a small team. But if I could

688
00:33:26,520 --> 00:33:30,080
Speaker 8: build seven, eight, nine, ten deals on my pipeline over

689
00:33:30,120 --> 00:33:32,880
Speaker 8: however much time, that was the key. So I'm doing

690
00:33:32,920 --> 00:33:38,120
Speaker 8: seven marked seven affordable deals for Birmingham and Smithfield with

691
00:33:38,240 --> 00:33:39,520
Speaker 8: two market ray deals and.

692
00:33:39,480 --> 00:33:40,080
Speaker 3: Then the other one.

693
00:33:40,080 --> 00:33:42,040
Speaker 8: I have about seven phases, so every year I'm going

694
00:33:42,080 --> 00:33:45,120
Speaker 8: to do really two deals a year in Birmingham.

695
00:33:45,200 --> 00:33:48,880
Speaker 4: So that Secretary Fudge is who the person who wire? Yeah, Secretary,

696
00:33:49,240 --> 00:33:51,600
Speaker 4: I mean if people don't know she's ahead of her,

697
00:33:51,800 --> 00:33:54,479
Speaker 4: she is. So how did you develop a relationship with her.

698
00:33:54,520 --> 00:33:56,960
Speaker 4: Where you on her radar? Did somebody introduce you? Because

699
00:33:56,960 --> 00:33:59,800
Speaker 4: relationships are important, we always talk about that. When did

700
00:33:59,800 --> 00:34:00,920
Speaker 4: that relationship development?

701
00:34:01,240 --> 00:34:05,000
Speaker 8: You know, what's interesting new people around. But I didn't

702
00:34:05,000 --> 00:34:07,320
Speaker 8: meet her until the day she brought their war Wow.

703
00:34:07,360 --> 00:34:09,640
Speaker 8: I didn't meet her until that day she brought her

704
00:34:09,640 --> 00:34:13,960
Speaker 8: fifty million dollar check and we met then prior to that.

705
00:34:15,080 --> 00:34:15,960
Speaker 3: Who does know her?

706
00:34:16,040 --> 00:34:19,920
Speaker 8: Randall Woofin mayor Woofin out of Birmingham, he knows her,

707
00:34:20,320 --> 00:34:22,840
Speaker 8: you know. So it's relationships, like you said, If the

708
00:34:22,840 --> 00:34:28,200
Speaker 8: mayor knows her and the councilwoman knows her and we

709
00:34:28,239 --> 00:34:31,640
Speaker 8: are all aligned in this development together, I mean, this

710
00:34:31,680 --> 00:34:33,920
Speaker 8: is what we are pushing for. At that point, I

711
00:34:33,960 --> 00:34:36,160
Speaker 8: didn't need to know her because they knew her, you know.

712
00:34:36,360 --> 00:34:38,239
Speaker 8: And I will say we put together one of the

713
00:34:38,239 --> 00:34:42,960
Speaker 8: best proposals they've probably ever seen. It's super unique to

714
00:34:43,040 --> 00:34:47,160
Speaker 8: get that choice. Neighborhood grant was it's been around for

715
00:34:47,239 --> 00:34:50,080
Speaker 8: some years. It really was Hope six first. So Egbert

716
00:34:50,120 --> 00:34:54,080
Speaker 8: is a pioneer of Hope six. Hud asked him consulting

717
00:34:54,120 --> 00:34:55,279
Speaker 8: on the model, et cetera.

718
00:34:55,880 --> 00:34:56,680
Speaker 3: Now we have this.

719
00:34:56,840 --> 00:35:03,040
Speaker 8: It's broken out into three tiers housingighborhood and people. Those

720
00:35:03,120 --> 00:35:06,000
Speaker 8: three tiers are super important to Hood because it's not

721
00:35:06,120 --> 00:35:08,279
Speaker 8: just about housing like you were saying earlier, like we

722
00:35:08,360 --> 00:35:11,320
Speaker 8: need food, we need shelter. We're doing We're moving the library,

723
00:35:11,400 --> 00:35:14,000
Speaker 8: putting that into the development. We are also doing a

724
00:35:14,120 --> 00:35:16,879
Speaker 8: social innovation campus that the city is going to run

725
00:35:16,920 --> 00:35:19,200
Speaker 8: and govern. In our senior building that's one hundred and

726
00:35:19,239 --> 00:35:21,200
Speaker 8: one units that we just applied for tax credits. On

727
00:35:21,440 --> 00:35:24,680
Speaker 8: the lower level is an early childhood education center, so

728
00:35:24,760 --> 00:35:26,920
Speaker 8: we have one hundred and one seniors that will now

729
00:35:27,000 --> 00:35:29,400
Speaker 8: volunteer with the kids, so the kids will be teaching

730
00:35:29,400 --> 00:35:31,120
Speaker 8: the seniors and the seniors to be teaching the kids

731
00:35:31,480 --> 00:35:34,400
Speaker 8: like they are models within models. It's not about the buildings,

732
00:35:34,480 --> 00:35:37,640
Speaker 8: it's about, you know, the broader play. But Hud realized

733
00:35:37,640 --> 00:35:40,640
Speaker 8: that the applicant was the housing a thrower to get

734
00:35:40,640 --> 00:35:44,200
Speaker 8: Birmingham District one hundred percent Black LAD. The co applicant

735
00:35:44,200 --> 00:35:46,440
Speaker 8: is the City of Birmingham one hundred percent Black LAD.

736
00:35:46,840 --> 00:35:48,560
Speaker 3: The Housing LEADS is.

737
00:35:48,480 --> 00:35:51,200
Speaker 8: A partnership between Real Enterprises and the Integral Group one

738
00:35:51,280 --> 00:35:54,360
Speaker 8: hundred percent Black LAD and owned. The Scent Project is

739
00:35:54,440 --> 00:35:57,040
Speaker 8: running the people side one hundred percent Black LAD, which

740
00:35:57,080 --> 00:35:59,360
Speaker 8: is a subsidiary of integral and the neighborhood again is

741
00:35:59,400 --> 00:36:00,279
Speaker 8: the city of Birmingam.

742
00:36:00,560 --> 00:36:02,080
Speaker 3: First time we've ever seen one of.

743
00:36:02,040 --> 00:36:05,800
Speaker 8: These really really large scale developments be one hundred percent black,

744
00:36:06,520 --> 00:36:08,080
Speaker 8: which I think tell the story.

745
00:36:08,160 --> 00:36:11,759
Speaker 4: So that might have been why, Secretary, as you were saying,

746
00:36:11,760 --> 00:36:14,080
Speaker 4: I'm thinking the common thing. We saw this happen in Milwaukee,

747
00:36:14,520 --> 00:36:17,799
Speaker 4: and we're seeing it happen. This episode is brought to

748
00:36:17,800 --> 00:36:19,960
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749
00:36:20,000 --> 00:36:23,760
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750
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751
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752
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753
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754
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755
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756
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757
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758
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759
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760
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761
00:37:00,640 --> 00:37:03,080
Speaker 4: You ever walk into a small business and everything just

762
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763
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Speaker 4: tipping is a breeze, and you're out the door before

764
00:37:09,920 --> 00:37:14,080
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765
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766
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767
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768
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769
00:37:26,280 --> 00:37:30,040
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770
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771
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Speaker 4: just thinking about launching something soon, Square is hands down

772
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773
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774
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775
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776
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777
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778
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779
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Speaker 4: can keep pushing your vision forward.

780
00:38:06,920 --> 00:38:10,520
Speaker 1: An illegal alien from Guatemala charged with raping a child

781
00:38:10,600 --> 00:38:14,400
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

782
00:38:14,640 --> 00:38:18,759
Speaker 1: accused of murdering a Texas man of Venezuelan charged with

783
00:38:18,840 --> 00:38:22,759
Speaker 1: filming and selling child pornography in Michigan. These are just

784
00:38:22,840 --> 00:38:26,600
Speaker 1: some of the heinous migrant criminals caught because of President

785
00:38:26,640 --> 00:38:30,160
Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States

786
00:38:30,239 --> 00:38:35,040
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

787
00:38:35,080 --> 00:38:38,600
Speaker 1: crossings are at the lowest levels ever recorded, and over

788
00:38:38,680 --> 00:38:40,920
Speaker 1: one hundred thousand illegal aliens.

789
00:38:40,480 --> 00:38:41,320
Speaker 2: Have been arrested.

790
00:38:41,600 --> 00:38:45,160
Speaker 1: If you are here illegally, your next you will be

791
00:38:45,200 --> 00:38:49,080
Speaker 1: fined nearly one thousand dollars a day, imprisoned, and deported.

792
00:38:49,520 --> 00:38:52,759
Speaker 1: You will never return. But if you register using our

793
00:38:52,800 --> 00:38:56,000
Speaker 1: CBP home app and leave now, you could be allowed

794
00:38:56,040 --> 00:39:01,000
Speaker 1: to return legally. Do what's right. Leave now. Under President Trump,

795
00:39:01,160 --> 00:39:04,720
Speaker 1: America's laws order and families will be protected.

796
00:39:04,840 --> 00:39:06,960
Speaker 2: Sponsored by the United States Department of Homeland Security.

797
00:39:07,120 --> 00:39:09,279
Speaker 4: Birman and we had the opportunity to sit down with

798
00:39:09,360 --> 00:39:11,879
Speaker 4: Mayoe Fan and he was telling us like we were

799
00:39:11,920 --> 00:39:13,879
Speaker 4: in Atlanta, but we flew over and he was like, look,

800
00:39:14,520 --> 00:39:17,239
Speaker 4: everything that they have, we can have here and we

801
00:39:17,239 --> 00:39:19,799
Speaker 4: can control it. So when I saw you get watered,

802
00:39:19,800 --> 00:39:21,759
Speaker 4: that's why I mentioned you watching market Monders, I'm like,

803
00:39:21,840 --> 00:39:23,640
Speaker 4: this is incredible because I see this happening.

804
00:39:23,760 --> 00:39:24,480
Speaker 3: It's a transition.

805
00:39:24,560 --> 00:39:27,000
Speaker 4: Are there other cities that you are on the radar

806
00:39:27,040 --> 00:39:29,279
Speaker 4: that you can see that there's a possibility for this

807
00:39:29,400 --> 00:39:33,480
Speaker 4: type of infrastructure, this type of I guess not even combarineing,

808
00:39:33,560 --> 00:39:36,319
Speaker 4: but people being in positions of power to push the

809
00:39:36,360 --> 00:39:37,120
Speaker 4: button and say yes.

810
00:39:37,160 --> 00:39:42,560
Speaker 8: For sure, Atlanta one hundred percent moving there more full

811
00:39:42,640 --> 00:39:44,720
Speaker 8: time here in the next couple of months.

812
00:39:45,000 --> 00:39:49,279
Speaker 3: Houston, d C, d C. For sure. You know, I

813
00:39:49,320 --> 00:39:52,319
Speaker 3: still live in DC and I love DC. DC. You

814
00:39:52,320 --> 00:39:52,839
Speaker 3: can do it.

815
00:39:55,239 --> 00:39:58,440
Speaker 8: Milwaukee, like mentioned Saint Paul, Minnesota has a black mayor,

816
00:39:58,520 --> 00:40:02,200
Speaker 8: So there's there's actually a a list of like black

817
00:40:02,239 --> 00:40:07,000
Speaker 8: mayors that you can look up and I would start there.

818
00:40:07,040 --> 00:40:08,920
Speaker 8: I haven't actually done it, but that's something practical you

819
00:40:08,960 --> 00:40:11,320
Speaker 8: could do. It's like, look at the list of black mayors,

820
00:40:11,320 --> 00:40:13,000
Speaker 8: see where they are, see what their terms are, because

821
00:40:13,000 --> 00:40:14,759
Speaker 8: if they're leaving soon it might not matter as much.

822
00:40:15,000 --> 00:40:17,319
Speaker 8: But if they just got elected or something, Hey start

823
00:40:17,320 --> 00:40:20,640
Speaker 8: building those relationships. Now you start building with those black mayors.

824
00:40:20,640 --> 00:40:22,680
Speaker 8: They have the people and the teams that can start

825
00:40:22,680 --> 00:40:23,600
Speaker 8: to move things around.

826
00:40:23,760 --> 00:40:25,080
Speaker 3: And that's why I align myself.

827
00:40:25,239 --> 00:40:30,200
Speaker 8: One of the biggest opportunities for emerging developers and even

828
00:40:30,440 --> 00:40:35,319
Speaker 8: solidified developers like myself, are those municipalities in the partnerships.

829
00:40:35,520 --> 00:40:36,799
Speaker 8: Best of what I've talked about it in a lot

830
00:40:36,800 --> 00:40:40,360
Speaker 8: of some public private partnerships are key. But there are

831
00:40:40,400 --> 00:40:42,600
Speaker 8: a lot of black people getting these positions of power

832
00:40:42,640 --> 00:40:48,680
Speaker 8: that are vested in the equality in Hey, I'm not

833
00:40:48,719 --> 00:40:50,360
Speaker 8: gonna select you because you're black. I'm gonna select you

834
00:40:50,400 --> 00:40:52,880
Speaker 8: because you're good. But you also are black and you

835
00:40:52,880 --> 00:40:55,880
Speaker 8: have mission too, so we have an aligned mission.

836
00:40:57,200 --> 00:41:00,440
Speaker 5: Okay, so talk about talk about a little bit. But

837
00:41:00,520 --> 00:41:03,359
Speaker 5: let's go into this community development versus commercial real estate.

838
00:41:03,880 --> 00:41:05,880
Speaker 5: Community development is what is community development?

839
00:41:05,880 --> 00:41:06,520
Speaker 3: What that even mean?

840
00:41:06,920 --> 00:41:11,440
Speaker 8: Community development is where you are primarily working. So commercial

841
00:41:12,120 --> 00:41:16,640
Speaker 8: development in general is like the creation of something. Right,

842
00:41:16,719 --> 00:41:19,759
Speaker 8: So if you look at commercial real estate is the

843
00:41:20,080 --> 00:41:26,400
Speaker 8: traditional profit capitalists type of system.

844
00:41:26,480 --> 00:41:31,120
Speaker 5: It's for profit entities yes, like office buildings, yes, office.

845
00:41:30,800 --> 00:41:36,120
Speaker 8: Building, store, grocery yeah, retail, multifamily that's not subsidized.

846
00:41:36,400 --> 00:41:38,560
Speaker 3: Anything that's not subsidized. It's just for profit.

847
00:41:38,600 --> 00:41:41,720
Speaker 5: It's commercial that's commercial housing is commercial estate is well.

848
00:41:41,640 --> 00:41:46,279
Speaker 8: Absolutely, but community development there are elements of commercial real

849
00:41:46,400 --> 00:41:48,360
Speaker 8: estate that could be subsidized. Sell the long comeouts and

850
00:41:48,400 --> 00:41:51,279
Speaker 8: tax credit so housing is also commercial real estate, so

851
00:41:51,440 --> 00:41:54,480
Speaker 8: like building that grocery store, the city camming is subsidized,

852
00:41:54,560 --> 00:41:57,919
Speaker 8: so that's more community development work. So you're doing it

853
00:41:58,560 --> 00:42:01,000
Speaker 8: not necessarily for profit, but you're doing it for mission.

854
00:42:01,200 --> 00:42:03,680
Speaker 8: That's the stark difference. And the mechanics of how the

855
00:42:03,719 --> 00:42:07,360
Speaker 8: finance works is completely different. So how do they work

856
00:42:08,000 --> 00:42:10,880
Speaker 8: on the market rate side, It's really simple. If you

857
00:42:10,960 --> 00:42:12,920
Speaker 8: got if you have a hundred million dollar deal we

858
00:42:13,000 --> 00:42:15,640
Speaker 8: talked about if you haven't watched last episode, make sure

859
00:42:15,640 --> 00:42:17,359
Speaker 8: you take it out. If you got a hundred million

860
00:42:17,400 --> 00:42:19,839
Speaker 8: dollar deal, let's say you get seventy million of debt.

861
00:42:19,920 --> 00:42:21,879
Speaker 8: That's just is what it is. Those are the terms.

862
00:42:21,920 --> 00:42:23,960
Speaker 8: You need thirty million in equity. If you need this

863
00:42:24,000 --> 00:42:27,240
Speaker 8: thirty million equity, there's a system where the general partner

864
00:42:27,239 --> 00:42:30,120
Speaker 8: could come in. I'm gonna bring ten percent of the equity.

865
00:42:30,280 --> 00:42:33,880
Speaker 8: You're gonna bring ninety. It's just like the private equity funds.

866
00:42:33,520 --> 00:42:36,239
Speaker 8: It's all the same. Whether it's business or in real estate,

867
00:42:36,320 --> 00:42:38,960
Speaker 8: it's the same structure. So I'm gonna bring three million,

868
00:42:39,800 --> 00:42:42,920
Speaker 8: and you are gonna bring twenty seven. We're gonna get

869
00:42:42,960 --> 00:42:46,160
Speaker 8: this debt of seventy We're getting this still done simple.

870
00:42:46,440 --> 00:42:50,080
Speaker 8: It's really and the numbers rooted in that allow that

871
00:42:50,239 --> 00:42:53,040
Speaker 8: to work. Everyone gets their return. It is the metrics,

872
00:42:53,040 --> 00:42:56,360
Speaker 8: et cetera, et cetera. Community development is when that system

873
00:42:56,360 --> 00:43:01,440
Speaker 8: doesn't work, you can't hit those returns. But just because

874
00:43:01,480 --> 00:43:03,600
Speaker 8: you can't hit that return, does that mean you shouldn't

875
00:43:03,600 --> 00:43:07,799
Speaker 8: be able to build in these communities. No, like you

876
00:43:08,000 --> 00:43:10,719
Speaker 8: have to be able to build in all of the communities,

877
00:43:10,719 --> 00:43:13,960
Speaker 8: regardless of the income that is driving it. So community

878
00:43:14,000 --> 00:43:17,080
Speaker 8: development is really a system that allows for people like

879
00:43:17,120 --> 00:43:20,520
Speaker 8: myself to go in and like develop in communities where

880
00:43:20,560 --> 00:43:25,480
Speaker 8: the incomes don't work. Interesting thing, Egbert said once again.

881
00:43:25,480 --> 00:43:27,439
Speaker 8: I know I keep saying his name, but think about

882
00:43:27,480 --> 00:43:29,360
Speaker 8: a flight, right, We fly all the time. I know

883
00:43:29,480 --> 00:43:32,080
Speaker 8: y'all fly as much as I do. You bought your

884
00:43:32,080 --> 00:43:34,319
Speaker 8: flight three months ago. You bought your flight two months ago.

885
00:43:34,360 --> 00:43:37,560
Speaker 8: I bought my flight yesterday. Yours is one hundred, yours

886
00:43:37,560 --> 00:43:40,120
Speaker 8: is two hundred minus five hundred. We all in the

887
00:43:40,120 --> 00:43:44,520
Speaker 8: same row at the end of the day, No matter

888
00:43:44,520 --> 00:43:46,880
Speaker 8: how much you paid, it shouldn't determine the quality of

889
00:43:46,880 --> 00:43:49,000
Speaker 8: the service once you have. So the way I look

890
00:43:49,040 --> 00:43:51,920
Speaker 8: at housing is the exact same way. Just because you

891
00:43:52,040 --> 00:43:55,960
Speaker 8: make thirty thousand dollars or you might make twenty thousand

892
00:43:56,000 --> 00:43:59,360
Speaker 8: dollars and I might make a million dollars. Doesn't necessarily

893
00:43:59,440 --> 00:44:02,879
Speaker 8: mean you should live in a thirty thousand dollars apartment, right,

894
00:44:02,960 --> 00:44:09,560
Speaker 8: Like frankly, teachers, lawyers, no teachers, police officers, etc.

895
00:44:09,920 --> 00:44:13,080
Speaker 3: Like they are doing the public good. They're no worse

896
00:44:13,840 --> 00:44:14,719
Speaker 3: than a.

897
00:44:14,680 --> 00:44:17,160
Speaker 8: Celebrity that may be an athlete, Like we have to

898
00:44:17,200 --> 00:44:19,000
Speaker 8: be able to create something for them too.

899
00:44:19,560 --> 00:44:21,799
Speaker 4: Is the reason's community development is the reason you don't

900
00:44:21,800 --> 00:44:23,880
Speaker 4: see more people doing it in your opinion because of

901
00:44:23,880 --> 00:44:25,800
Speaker 4: the profit margins are not the highest.

902
00:44:26,200 --> 00:44:31,520
Speaker 8: More people in general, yes, more of us know the

903
00:44:31,560 --> 00:44:34,600
Speaker 8: predominantly white people that's been doing development forever. Yeah, it's

904
00:44:34,640 --> 00:44:37,160
Speaker 8: like it's not worth the brain damage in a headache.

905
00:44:37,160 --> 00:44:39,800
Speaker 8: It's a lot of work, and the profit margins aren't

906
00:44:39,880 --> 00:44:41,400
Speaker 8: as consistent.

907
00:44:41,560 --> 00:44:42,520
Speaker 3: It's not as.

908
00:44:44,880 --> 00:44:47,360
Speaker 8: Streamline is commercial real estate. It's just nuts and boats

909
00:44:47,360 --> 00:44:49,320
Speaker 8: over there. If you got the money, you got the land,

910
00:44:49,480 --> 00:44:51,360
Speaker 8: you buy it. You don't have to go through the

911
00:44:51,400 --> 00:44:53,600
Speaker 8: red tape over here is full of red tape. So

912
00:44:54,520 --> 00:44:57,560
Speaker 8: and it's not guarantee that you'll be able to move

913
00:44:57,600 --> 00:45:00,799
Speaker 8: forward on it. Like there's variable that are outside of

914
00:45:00,800 --> 00:45:02,560
Speaker 8: your hands. So yes, that's why a lot of people

915
00:45:02,600 --> 00:45:06,120
Speaker 8: don't do it that are doing this commercial real estate stuff. Now,

916
00:45:06,360 --> 00:45:07,879
Speaker 8: I think a lot of us don't do it because

917
00:45:07,880 --> 00:45:10,640
Speaker 8: of education and like that's it. I think way more

918
00:45:10,640 --> 00:45:12,040
Speaker 8: of us will do it if we knew one it

919
00:45:12,080 --> 00:45:14,360
Speaker 8: existed and too figured out a way to start to

920
00:45:14,440 --> 00:45:14,759
Speaker 8: do it.

921
00:45:15,040 --> 00:45:16,879
Speaker 3: When we talked about the numbers last time, like.

922
00:45:17,480 --> 00:45:20,040
Speaker 8: There's a real life, real life use case we're in

923
00:45:20,080 --> 00:45:22,920
Speaker 8: five years, you could be worth ten figures getting into

924
00:45:23,000 --> 00:45:26,279
Speaker 8: the space, even in community development exclusively. Now again, I

925
00:45:26,280 --> 00:45:28,520
Speaker 8: don't think that's the best business to just build. If

926
00:45:28,560 --> 00:45:31,200
Speaker 8: you want to like sustaining business, you should diversify it.

927
00:45:31,200 --> 00:45:34,080
Speaker 8: But it's a good place to be.

928
00:45:34,960 --> 00:45:37,319
Speaker 5: So are you actively buying land as part of this

929
00:45:37,440 --> 00:45:38,359
Speaker 5: developments or.

930
00:45:38,880 --> 00:45:45,640
Speaker 3: Great question, man, buying no get in control? Yes? So

931
00:45:45,680 --> 00:45:46,719
Speaker 3: those are two different things.

932
00:45:46,760 --> 00:45:48,640
Speaker 5: So how do you get control without.

933
00:45:48,400 --> 00:45:51,880
Speaker 8: Buying purchase and sell contract that allows you to wait

934
00:45:51,960 --> 00:45:54,520
Speaker 8: until you have your plan in order or your finance

935
00:45:54,560 --> 00:45:55,760
Speaker 8: and is in order.

936
00:45:55,640 --> 00:45:56,479
Speaker 3: To be able to buy.

937
00:45:56,760 --> 00:45:57,560
Speaker 5: Can you explain that?

938
00:45:57,719 --> 00:45:58,359
Speaker 3: Absolutely?

939
00:45:59,080 --> 00:45:59,200
Speaker 5: Uh.

940
00:46:00,600 --> 00:46:03,680
Speaker 8: They always say don't wait to buy land by land

941
00:46:03,719 --> 00:46:07,080
Speaker 8: and wait. That's like the big Instagram thing, right, I

942
00:46:07,120 --> 00:46:11,040
Speaker 8: disagree fundamentally, I disagree. I know that's I'm a minority

943
00:46:11,040 --> 00:46:14,680
Speaker 8: in this, but buying and sitting on land is not

944
00:46:15,239 --> 00:46:19,440
Speaker 8: a smart decision as it relates to investing. You can

945
00:46:19,480 --> 00:46:23,759
Speaker 8: put your money other places, in stocks, in bonds, etc.

946
00:46:24,200 --> 00:46:25,960
Speaker 3: Even in flipping some real estate whatever.

947
00:46:26,480 --> 00:46:28,680
Speaker 8: Because development is sexually so many people just want to

948
00:46:28,680 --> 00:46:31,200
Speaker 8: go out and say I'm doing this as that. When

949
00:46:31,200 --> 00:46:35,719
Speaker 8: you watch the people talking about buying land, don't look

950
00:46:35,800 --> 00:46:38,160
Speaker 8: for the people that say I bought this land or

951
00:46:38,200 --> 00:46:39,640
Speaker 8: I'm about to do this with it.

952
00:46:40,080 --> 00:46:41,279
Speaker 3: Look for the people that finished it.

953
00:46:41,719 --> 00:46:43,239
Speaker 8: Because a lot of those people that are saying we're

954
00:46:43,239 --> 00:46:45,319
Speaker 8: about to do this never get to the other side

955
00:46:45,360 --> 00:46:47,280
Speaker 8: of it. They don't come back for a second interview

956
00:46:47,320 --> 00:46:49,319
Speaker 8: and say, hey, that building is built, you can look

957
00:46:49,360 --> 00:46:49,680
Speaker 8: at it.

958
00:46:49,800 --> 00:46:51,080
Speaker 3: They don't have the same receipts.

959
00:46:51,480 --> 00:46:55,080
Speaker 8: And during that process there's holding costs, there's insurance, there's risk.

960
00:46:55,280 --> 00:46:58,000
Speaker 8: Like most of the time, buying land is not a

961
00:46:58,040 --> 00:47:00,319
Speaker 8: good investment unless you have a serpace of that's that

962
00:47:00,320 --> 00:47:02,719
Speaker 8: you're just sitting on. If you got money and it's

963
00:47:02,800 --> 00:47:06,360
Speaker 8: just like right there waiting and you need tax shelters

964
00:47:06,440 --> 00:47:08,440
Speaker 8: or anything like that, cool, you should do that.

965
00:47:08,960 --> 00:47:10,279
Speaker 3: But someone that is.

966
00:47:10,360 --> 00:47:13,840
Speaker 8: Trying to get into space like that's not the best

967
00:47:13,920 --> 00:47:15,920
Speaker 8: way to enter into this market at all. So no,

968
00:47:16,040 --> 00:47:18,960
Speaker 8: I don't buy land. I like to get it under contract.

969
00:47:19,280 --> 00:47:21,840
Speaker 8: I'll go and work with a municipality. Those are the

970
00:47:21,840 --> 00:47:27,640
Speaker 8: best people to work with when they are in sync,

971
00:47:28,040 --> 00:47:31,000
Speaker 8: because when they're not, it's tough. Or you could work

972
00:47:31,000 --> 00:47:35,080
Speaker 8: with a private seller that understands like, realistically, nobody else

973
00:47:35,160 --> 00:47:37,399
Speaker 8: is gonna buy this. So one of the things I read,

974
00:47:37,440 --> 00:47:39,000
Speaker 8: I think it was in the People's Principal, was like

975
00:47:40,239 --> 00:47:43,560
Speaker 8: your price my terms, all right, cool, you want to

976
00:47:43,600 --> 00:47:45,800
Speaker 8: five hundred thousand for this land, I'll give you the

977
00:47:45,800 --> 00:47:49,440
Speaker 8: five hundred thousand, but I'm gonna need eighteen months to close.

978
00:47:50,320 --> 00:47:52,400
Speaker 8: You've been sitting on it for five years. What's the difference.

979
00:47:52,760 --> 00:47:54,760
Speaker 8: Give me eighteen months. I may give you ten thousand

980
00:47:54,840 --> 00:47:58,080
Speaker 8: to put down. You know, after six months, I'll give

981
00:47:58,080 --> 00:47:59,840
Speaker 8: you another twenty five. That may go hard because I

982
00:47:59,840 --> 00:48:02,560
Speaker 8: think my plan is moving forward. But I'm not giving

983
00:48:02,600 --> 00:48:06,560
Speaker 8: you five hundred thousand until everything I know for my

984
00:48:06,719 --> 00:48:11,919
Speaker 8: exitus in place. Or if you buy land that's five

985
00:48:12,000 --> 00:48:14,560
Speaker 8: hundred thousand, but you know it's worth five million your

986
00:48:14,600 --> 00:48:16,759
Speaker 8: exiting is in place right there? Then you could buy

987
00:48:16,760 --> 00:48:19,160
Speaker 8: it quickly. I'm not buying land until my exit is

988
00:48:19,160 --> 00:48:19,560
Speaker 8: in place.

989
00:48:20,280 --> 00:48:20,680
Speaker 3: Period.

990
00:48:21,080 --> 00:48:24,640
Speaker 9: Never never into an investment before you know the exit.

991
00:48:25,200 --> 00:48:28,480
Speaker 9: Not doing it, simple principle. I'll lock it up, but

992
00:48:28,560 --> 00:48:33,400
Speaker 9: I'm not buying. So how are you moving into different markets? Like,

993
00:48:33,440 --> 00:48:34,920
Speaker 9: what are some challenges with that?

994
00:48:34,960 --> 00:48:37,200
Speaker 5: You started where you're from, but now you're going to

995
00:48:37,280 --> 00:48:39,239
Speaker 5: Texas and you're going to you said they moving to

996
00:48:39,239 --> 00:48:41,840
Speaker 5: Atlanta and different things like and then you're doing different

997
00:48:42,160 --> 00:48:45,440
Speaker 5: different product types as well. Yeah, we talk about navigating that.

998
00:48:46,239 --> 00:48:50,360
Speaker 8: So relationships, man, it's everything. I think when I was

999
00:48:50,840 --> 00:48:53,920
Speaker 8: coming up in Milwaukee, one of the things that I

1000
00:48:54,000 --> 00:48:57,200
Speaker 8: did was just build those relationships off network, and I

1001
00:48:57,239 --> 00:48:59,160
Speaker 8: was at every event. You couldn't miss me. I was

1002
00:48:59,320 --> 00:49:02,719
Speaker 8: literally couldn't I missed me. I was everywhere. So I

1003
00:49:02,760 --> 00:49:04,480
Speaker 8: took that same model. But now I'm doing it on

1004
00:49:04,480 --> 00:49:07,880
Speaker 8: the national scale. Everything in DC real estate based events,

1005
00:49:07,880 --> 00:49:10,719
Speaker 8: I'm there. I'm not there as much now because i've

1006
00:49:10,760 --> 00:49:13,880
Speaker 8: been you know, headed down, but I'm in those Atlanta

1007
00:49:13,920 --> 00:49:16,319
Speaker 8: based events, I'm in that, Houston based events, I'm in

1008
00:49:16,360 --> 00:49:18,680
Speaker 8: those you know, Birmingham based events.

1009
00:49:18,680 --> 00:49:19,120
Speaker 3: I'm in that.

1010
00:49:19,239 --> 00:49:23,160
Speaker 8: So I look for the macro economic trends that I

1011
00:49:23,280 --> 00:49:28,839
Speaker 8: like population growth. I really like red states and blue

1012
00:49:28,840 --> 00:49:34,880
Speaker 8: cities because it allows for flexibility.

1013
00:49:34,200 --> 00:49:37,960
Speaker 3: And getting out tennis that may not pay. Right.

1014
00:49:38,560 --> 00:49:40,520
Speaker 8: I'm not saying you're vig folks, That's not what I'm

1015
00:49:40,560 --> 00:49:46,000
Speaker 8: here for. But at the same time, places like Atlanta.

1016
00:49:45,400 --> 00:49:48,160
Speaker 5: Atlanta is in a bad Atlanta's d C. Let's use

1017
00:49:48,200 --> 00:49:50,600
Speaker 5: DC for example. You said red state and blue city.

1018
00:49:50,719 --> 00:49:52,000
Speaker 3: Yes, those are places like Atlanta.

1019
00:49:52,040 --> 00:49:58,600
Speaker 5: I like Houston, Georgia's Birmingham all blue states, red city.

1020
00:49:58,800 --> 00:50:01,120
Speaker 5: I mean, I mean traditionally george is not a blue.

1021
00:50:00,960 --> 00:50:03,400
Speaker 3: State though it No, no, no, I mean blue cities, red states.

1022
00:50:03,480 --> 00:50:04,279
Speaker 3: I may have said it the wrong.

1023
00:50:04,360 --> 00:50:10,480
Speaker 5: What Birmingham would be, Yeah, yeah for sure, New Orleans, Yes,

1024
00:50:10,560 --> 00:50:11,520
Speaker 5: stuff like that. Yeah.

1025
00:50:12,160 --> 00:50:13,800
Speaker 3: I really like blue states, red cities.

1026
00:50:14,000 --> 00:50:19,360
Speaker 8: Sorry, blue cities, red states because the higher level laws.

1027
00:50:19,120 --> 00:50:20,360
Speaker 3: Allow for more flexibility.

1028
00:50:20,440 --> 00:50:22,720
Speaker 8: Like a place like DC, for example, there were people

1029
00:50:22,719 --> 00:50:27,080
Speaker 8: that literally DC prior to the pandemic, you can go

1030
00:50:27,880 --> 00:50:30,719
Speaker 8: rent an apartment, never pay your rent, and you don't

1031
00:50:30,760 --> 00:50:32,440
Speaker 8: have to get out for at least seven months.

1032
00:50:32,280 --> 00:50:34,160
Speaker 3: Because that's all want the process states like.

1033
00:50:34,200 --> 00:50:35,640
Speaker 8: I know people that lived in the building that I

1034
00:50:35,680 --> 00:50:39,080
Speaker 8: lived in that literally leased it and didn't pay rent.

1035
00:50:39,120 --> 00:50:40,799
Speaker 8: They just leased it out every summer so they can

1036
00:50:40,880 --> 00:50:43,480
Speaker 8: enjoy the rooftop, and they just burn up different people's

1037
00:50:43,480 --> 00:50:46,279
Speaker 8: things like Okay, your name this year, were all gonna

1038
00:50:46,280 --> 00:50:48,120
Speaker 8: live there. Your name this year, were all gonna live there.

1039
00:50:48,200 --> 00:50:51,120
Speaker 5: Are there any Are there any major cities that are

1040
00:50:51,160 --> 00:50:53,759
Speaker 5: run by Republicans? I don't think so. Right most every

1041
00:50:53,760 --> 00:50:56,560
Speaker 5: major city is run by Democrats. Think about it. That's

1042
00:50:56,560 --> 00:51:02,640
Speaker 5: a good Chicago, La. Miami's a Democrat, the mayor's a Democrat.

1043
00:51:02,680 --> 00:51:05,920
Speaker 5: I don't think there's any major city that that's interesting.

1044
00:51:05,960 --> 00:51:09,760
Speaker 5: I just thought about that, no major city has demo,

1045
00:51:09,920 --> 00:51:14,280
Speaker 5: has Republican control, even even if it's in a Republican La.

1046
00:51:15,200 --> 00:51:15,480
Speaker 3: Yeah.

1047
00:51:15,880 --> 00:51:22,080
Speaker 8: San Francisco, San Francisco saying yeah, Philly Yeah, and you

1048
00:51:22,080 --> 00:51:23,439
Speaker 8: know Pennsylvanica's back and forth.

1049
00:51:23,480 --> 00:51:26,400
Speaker 3: But those cities, those states.

1050
00:51:26,040 --> 00:51:28,520
Speaker 8: That have those very like stringent laws, like a DC

1051
00:51:28,640 --> 00:51:33,880
Speaker 8: for example, I'm not the most fond of. Right, Like

1052
00:51:33,960 --> 00:51:36,879
Speaker 8: during the pandemic, there were people that literally lived for

1053
00:51:37,040 --> 00:51:40,000
Speaker 8: over a year just because of the system. And it's like,

1054
00:51:40,280 --> 00:51:43,800
Speaker 8: you're not paying any rent. As a landowner that has

1055
00:51:44,400 --> 00:51:47,440
Speaker 8: thousands of units, I don't want thousands of units in

1056
00:51:47,440 --> 00:51:51,680
Speaker 8: the place that I can't get people exploiting this system

1057
00:51:51,719 --> 00:51:55,080
Speaker 8: out in Wisconsin, you get somebody thirty days, all right, boom,

1058
00:51:55,120 --> 00:51:55,800
Speaker 8: you go through the process.

1059
00:51:55,800 --> 00:51:57,000
Speaker 3: Atlanta even quicker than that.

1060
00:51:57,560 --> 00:52:00,360
Speaker 8: And I'm not saying we should exploit it either, But

1061
00:52:00,440 --> 00:52:03,080
Speaker 8: from a business perspective, it doesn't make sense for me

1062
00:52:03,120 --> 00:52:05,279
Speaker 8: to be in a place where X amount of people

1063
00:52:05,280 --> 00:52:07,400
Speaker 8: that'll pay rent, especially as I'm rising, Like when I

1064
00:52:07,440 --> 00:52:10,359
Speaker 8: get bigger, of course, maybe I could deal with some

1065
00:52:10,560 --> 00:52:12,560
Speaker 8: of that drop, but right now now I'm focused on

1066
00:52:12,640 --> 00:52:14,440
Speaker 8: cities where it makes sense financially.

1067
00:52:15,440 --> 00:52:17,399
Speaker 4: So you move throughout the cities. I know the HUT

1068
00:52:17,480 --> 00:52:19,800
Speaker 4: is involved in the Birmingham situation. There was three hundred

1069
00:52:19,840 --> 00:52:24,960
Speaker 4: and seventy million allocated for the developments. Is it a

1070
00:52:25,000 --> 00:52:27,520
Speaker 4: situation where you can now again go back to hood

1071
00:52:27,560 --> 00:52:30,120
Speaker 4: and do the same type of proposing a different city.

1072
00:52:30,239 --> 00:52:32,840
Speaker 8: Absolutely so I have I'm a finalist for three cities

1073
00:52:32,920 --> 00:52:33,840
Speaker 8: right now.

1074
00:52:34,040 --> 00:52:34,239
Speaker 3: Yeah.

1075
00:52:34,840 --> 00:52:36,160
Speaker 4: I knew it, man, I knew.

1076
00:52:36,440 --> 00:52:38,120
Speaker 8: I'm a finalist for three cities right now. I got

1077
00:52:38,120 --> 00:52:41,279
Speaker 8: a call yesterday about one. We'll talk about the cities offline.

1078
00:52:42,480 --> 00:52:42,960
Speaker 3: Yeah.

1079
00:52:43,480 --> 00:52:47,280
Speaker 8: So the strategy in the game plan there is if

1080
00:52:48,120 --> 00:52:50,560
Speaker 8: let's say once a year, once every other year, I

1081
00:52:50,600 --> 00:52:52,320
Speaker 8: can pick up one of these.

1082
00:52:52,600 --> 00:52:54,000
Speaker 3: Birmingham will be further along.

1083
00:52:54,280 --> 00:52:56,600
Speaker 8: Now I'm starting that, and if each one is kicking

1084
00:52:56,600 --> 00:52:59,520
Speaker 8: out a thousand plus units, you get three four cities.

1085
00:52:59,520 --> 00:53:01,080
Speaker 3: I mean by the.

1086
00:53:01,040 --> 00:53:03,440
Speaker 8: Time I'm thirty four, now, by the time I'm forty

1087
00:53:03,560 --> 00:53:07,560
Speaker 8: two forty three, I have thousands of units under my

1088
00:53:07,560 --> 00:53:11,080
Speaker 8: belt that I've developed and really just starting to enter

1089
00:53:11,120 --> 00:53:11,600
Speaker 8: my prime.

1090
00:53:12,880 --> 00:53:15,640
Speaker 4: On your financial map, does the percentage change with the

1091
00:53:15,680 --> 00:53:18,040
Speaker 4: amount of units? Right when you started at the one forty,

1092
00:53:18,120 --> 00:53:20,319
Speaker 4: you had your percentage that was put in. Now you're

1093
00:53:20,320 --> 00:53:22,840
Speaker 4: doing eleven hundred, but you have partners.

1094
00:53:22,920 --> 00:53:25,840
Speaker 3: Yes, great question. Yes it did change.

1095
00:53:25,880 --> 00:53:31,320
Speaker 8: So each city that you go into their housing authority

1096
00:53:31,360 --> 00:53:33,480
Speaker 8: that you so all of these are public housing redevelopment.

1097
00:53:33,520 --> 00:53:38,680
Speaker 8: So think of Brittany Greens, think Marcie Projects, et cetera.

1098
00:53:38,719 --> 00:53:43,560
Speaker 8: We're taking the projects and creating mixed income communities because

1099
00:53:43,560 --> 00:53:45,960
Speaker 8: if you think about the projects, there were low density.

1100
00:53:46,640 --> 00:53:51,480
Speaker 8: So it's thirty acres of land with three hundred units

1101
00:53:51,480 --> 00:53:54,480
Speaker 8: on it. That's saying thirty acres could do three thousand

1102
00:53:54,480 --> 00:53:57,239
Speaker 8: if you really wanted to, right, But you don't want to.

1103
00:53:57,640 --> 00:53:59,160
Speaker 8: You don't want to go that dence. But that's just

1104
00:53:59,200 --> 00:54:03,239
Speaker 8: an example. Of of like the what you are going after.

1105
00:54:03,320 --> 00:54:08,080
Speaker 8: So because the housing authorities typically own those lands, whoever

1106
00:54:08,160 --> 00:54:11,600
Speaker 8: is at the housing authority, they kind of dictate the

1107
00:54:11,640 --> 00:54:14,720
Speaker 8: negotiation of like the housing authority and developer. In those terms,

1108
00:54:14,880 --> 00:54:18,560
Speaker 8: the housing authority gets x percentage and then the developers

1109
00:54:18,560 --> 00:54:21,399
Speaker 8: gets wide percentage. And right now Integrow and I are

1110
00:54:21,560 --> 00:54:25,200
Speaker 8: splitting that percentage. But it's very favorable, like it's pretty

1111
00:54:25,239 --> 00:54:28,480
Speaker 8: close to where it should be. And the way we

1112
00:54:28,560 --> 00:54:33,479
Speaker 8: work they come. I'm driving, but they're they're every step

1113
00:54:33,520 --> 00:54:35,080
Speaker 8: of the way in the passenger, you see. So I'm

1114
00:54:35,080 --> 00:54:37,160
Speaker 8: able to learn from it in their experience. They've developed,

1115
00:54:37,160 --> 00:54:39,680
Speaker 8: built and manage over ten thousand plus units. They've been

1116
00:54:39,719 --> 00:54:42,440
Speaker 8: doing this, they created the model. I'm learning from them,

1117
00:54:42,480 --> 00:54:46,680
Speaker 8: but I'm driving the ship at the same time. So yes,

1118
00:54:46,719 --> 00:54:49,319
Speaker 8: I have to share in the economics, but you know,

1119
00:54:49,480 --> 00:54:53,279
Speaker 8: three four hundred million dollar deals of pop, I don't

1120
00:54:53,320 --> 00:54:53,800
Speaker 8: mind share.

1121
00:54:54,160 --> 00:54:54,919
Speaker 3: We can figure it out.

1122
00:54:55,640 --> 00:54:58,120
Speaker 5: So, so about access to capital, that's something that you

1123
00:54:58,160 --> 00:55:00,879
Speaker 5: know down people, A lot of people have I talked about,

1124
00:55:02,440 --> 00:55:05,960
Speaker 5: what is your thoughts on access to capital as far

1125
00:55:05,960 --> 00:55:07,719
Speaker 5: as do on the real estate development side, and what's

1126
00:55:07,719 --> 00:55:10,960
Speaker 5: your personal experience is trying to get access to capital.

1127
00:55:11,719 --> 00:55:14,839
Speaker 8: The money on this commercial real estate side. Like I said,

1128
00:55:14,840 --> 00:55:16,680
Speaker 8: the money is gonna be there. If you got to

1129
00:55:16,680 --> 00:55:19,239
Speaker 8: deal to work, the money's gonna flow at the end

1130
00:55:19,280 --> 00:55:21,799
Speaker 8: of the day. Now the terms for the money talked

1131
00:55:21,800 --> 00:55:25,680
Speaker 8: about before, that's where it gets a little tricky. I'll say,

1132
00:55:25,840 --> 00:55:29,680
Speaker 8: in a way of George Floyd. There was an eighteen

1133
00:55:29,880 --> 00:55:33,399
Speaker 8: month period maybe even a little. I mean, it's still

1134
00:55:33,480 --> 00:55:37,080
Speaker 8: kind of there, but it's scaling back where they were

1135
00:55:37,120 --> 00:55:38,640
Speaker 8: throwing money in black developers.

1136
00:55:38,920 --> 00:55:41,120
Speaker 5: Who's throwing money like black Rock?

1137
00:55:41,800 --> 00:55:45,239
Speaker 3: Oh no, that's a great question. So like the paypals

1138
00:55:45,239 --> 00:55:45,800
Speaker 3: of the world.

1139
00:55:45,640 --> 00:55:47,399
Speaker 8: When they was giving out all of the like oh

1140
00:55:47,440 --> 00:55:50,640
Speaker 8: I want to invest in black communities, primarily went to

1141
00:55:51,080 --> 00:55:54,360
Speaker 8: cediafi's Community Development Financial Institution that we talked about last time.

1142
00:55:54,640 --> 00:55:56,960
Speaker 8: There's some national cd of files that govern some of

1143
00:55:56,960 --> 00:55:58,920
Speaker 8: those funds and they've been able to kind of distill

1144
00:55:59,000 --> 00:56:01,800
Speaker 8: those funds to us. So like Enterprise Community Partners that

1145
00:56:01,880 --> 00:56:04,160
Speaker 8: my equity investors on the Madison deal, they have a

1146
00:56:04,200 --> 00:56:06,080
Speaker 8: program called Equitable Path Forward.

1147
00:56:06,920 --> 00:56:10,279
Speaker 3: Their CEO just took over Fanny May.

1148
00:56:10,400 --> 00:56:15,040
Speaker 8: So that's the scale of how big the CDFIs are now.

1149
00:56:16,160 --> 00:56:19,040
Speaker 3: They're one of their presidents Lorri Chapman.

1150
00:56:19,160 --> 00:56:22,120
Speaker 8: She created this program based upon all of that money

1151
00:56:22,120 --> 00:56:24,640
Speaker 8: that was coming in from the corporations that were trying

1152
00:56:24,640 --> 00:56:27,719
Speaker 8: to give to black dollars. And this program is specifically

1153
00:56:27,719 --> 00:56:31,520
Speaker 8: created to be able to They have lines of credit

1154
00:56:31,920 --> 00:56:34,640
Speaker 8: for us from an operational business perspective. They have pre

1155
00:56:34,680 --> 00:56:36,840
Speaker 8: development loans so you can go out each one of

1156
00:56:36,880 --> 00:56:40,400
Speaker 8: these deals, you need at least a half a million,

1157
00:56:40,440 --> 00:56:42,960
Speaker 8: anywhere from a half a million to a million before

1158
00:56:43,000 --> 00:56:45,320
Speaker 8: you close. You get it all back when you finish,

1159
00:56:45,600 --> 00:56:47,120
Speaker 8: but you need that before you close. So when you

1160
00:56:47,200 --> 00:56:49,439
Speaker 8: talk about like capacity, that's one of the things too.

1161
00:56:49,880 --> 00:56:51,719
Speaker 8: If you have five of these deals going on at

1162
00:56:51,719 --> 00:56:54,200
Speaker 8: one time, you're gonna need two and a half to

1163
00:56:54,280 --> 00:56:56,719
Speaker 8: five million dollars worth of capital just to deploy to that,

1164
00:56:57,160 --> 00:56:59,319
Speaker 8: not even talking about your operations and nothing like that.

1165
00:56:59,719 --> 00:57:02,600
Speaker 8: The programs that are allowing for developers to be able

1166
00:57:02,600 --> 00:57:04,960
Speaker 8: to tap into those type of money that helps us

1167
00:57:04,960 --> 00:57:05,600
Speaker 8: grow in scale.

1168
00:57:06,680 --> 00:57:08,000
Speaker 3: But the flip side of it is.

1169
00:57:09,640 --> 00:57:12,280
Speaker 8: That's all to you know, kind of feel good money

1170
00:57:12,280 --> 00:57:17,200
Speaker 8: that's gonna flip. But to don People's point, black people

1171
00:57:17,640 --> 00:57:21,480
Speaker 8: don't manage big pension funds at all.

1172
00:57:21,560 --> 00:57:25,280
Speaker 3: Right, I've heard him talk about it. On y'all's platform.

1173
00:57:25,680 --> 00:57:27,360
Speaker 8: At the end of the day, we're less than one

1174
00:57:27,400 --> 00:57:32,080
Speaker 8: percent of all of the management, Black brown women less

1175
00:57:32,080 --> 00:57:34,680
Speaker 8: than one percent of all assets managed. But if in

1176
00:57:34,720 --> 00:57:36,600
Speaker 8: New York, for example, with black, brown and women is

1177
00:57:36,640 --> 00:57:39,240
Speaker 8: over fifty percent of what's going into that pension fund,

1178
00:57:39,800 --> 00:57:42,080
Speaker 8: why is it less than one percent of us managing

1179
00:57:42,160 --> 00:57:44,920
Speaker 8: or having access to manage those funds? What is the

1180
00:57:44,960 --> 00:57:47,640
Speaker 8: governance around that to say, oh, you are not capable

1181
00:57:47,720 --> 00:57:50,640
Speaker 8: enough to do that. That's still a really big challenge

1182
00:57:50,680 --> 00:57:52,960
Speaker 8: to be able to even go from someone like myself

1183
00:57:53,000 --> 00:57:56,400
Speaker 8: that's a developer that's established, to get into funded management

1184
00:57:56,640 --> 00:58:00,200
Speaker 8: and be able to allocate to either my developments or

1185
00:58:00,240 --> 00:58:03,080
Speaker 8: other developers in the same way that some of these

1186
00:58:04,040 --> 00:58:08,320
Speaker 8: traditional majority firms are doing with no problem. So that's

1187
00:58:08,440 --> 00:58:11,440
Speaker 8: really a challenge that I think needs to be addressed,

1188
00:58:11,520 --> 00:58:13,800
Speaker 8: and I'm doing my job to do it. So reinvest

1189
00:58:13,840 --> 00:58:16,680
Speaker 8: as a platform and I'm creating now it's a crowdfunding

1190
00:58:16,720 --> 00:58:21,240
Speaker 8: platform that democratizes commercial real esset investment. My mother can't invest,

1191
00:58:21,600 --> 00:58:23,880
Speaker 8: your parents can invest unless they are accredited.

1192
00:58:24,000 --> 00:58:25,640
Speaker 3: Historically, but you've seen.

1193
00:58:25,400 --> 00:58:27,760
Speaker 8: Crowdfundings start to grow in the real estate space a

1194
00:58:27,800 --> 00:58:30,920
Speaker 8: little bit, so I'm doing a regulation eight plus.

1195
00:58:31,800 --> 00:58:33,320
Speaker 3: We can raise up to seventy five million.

1196
00:58:33,560 --> 00:58:36,960
Speaker 8: I'm gonna put a portfolio of deals together and have

1197
00:58:37,080 --> 00:58:40,920
Speaker 8: people invest in that and back by the best of

1198
00:58:41,000 --> 00:58:42,720
Speaker 8: the best in the country that are doing it, so

1199
00:58:43,160 --> 00:58:46,240
Speaker 8: it's secure by those funds, I mean buy those firms,

1200
00:58:46,560 --> 00:58:49,520
Speaker 8: and we underwrite the deals, We co invest in the deals.

1201
00:58:48,880 --> 00:58:52,440
Speaker 8: It's not like investing in a company. It's not like

1202
00:58:52,480 --> 00:58:55,680
Speaker 8: investing in a onesie deal like we are, you know,

1203
00:58:55,800 --> 00:58:59,240
Speaker 8: putting together sophistication in a way that the marketplace has

1204
00:58:59,320 --> 00:59:01,920
Speaker 8: not seen. That's one of the ways that I'm addressing

1205
00:59:02,200 --> 00:59:06,120
Speaker 8: that access to capital challenge for emerging developers that are

1206
00:59:06,280 --> 00:59:07,600
Speaker 8: like me and coming up behind me too.

1207
00:59:08,400 --> 00:59:09,960
Speaker 3: Let's talk about the emerging developers.

1208
00:59:10,000 --> 00:59:12,960
Speaker 4: I would imagine since your episode, people have looked at

1209
00:59:12,960 --> 00:59:17,080
Speaker 4: it as an option or even a pathway as a career.

1210
00:59:17,480 --> 00:59:19,320
Speaker 4: So what are some some resources. I know you gave

1211
00:59:19,560 --> 00:59:21,960
Speaker 4: something great about, you know, finding cities with black mans.

1212
00:59:21,960 --> 00:59:24,480
Speaker 4: What are some other resources that you would recommend to

1213
00:59:24,560 --> 00:59:26,720
Speaker 4: to people who are in this space and are looking

1214
00:59:26,800 --> 00:59:28,480
Speaker 4: at like I want to be the next Brandon Rule.

1215
00:59:28,680 --> 00:59:29,040
Speaker 3: Yeah.

1216
00:59:29,160 --> 00:59:31,240
Speaker 8: I think one of the best ways is as you

1217
00:59:31,320 --> 00:59:33,920
Speaker 8: drive around in neighborhoods and you see buildings. Look at

1218
00:59:33,960 --> 00:59:37,200
Speaker 8: those signs. Every one of those buildings has a ton

1219
00:59:37,200 --> 00:59:40,880
Speaker 8: of signs that has every single company name on them.

1220
00:59:41,200 --> 00:59:42,920
Speaker 3: Those are the people doing developments.

1221
00:59:43,760 --> 00:59:46,040
Speaker 8: What better place should you start in your backyard with

1222
00:59:46,040 --> 00:59:49,680
Speaker 8: folks that are doing the work right now, start there first.

1223
00:59:50,520 --> 00:59:52,440
Speaker 8: Like someone in Milwaukee, they're going to see a rule

1224
00:59:52,480 --> 00:59:59,720
Speaker 8: enterprise of sign. Someone in des Moines, Iowa. I'm not

1225
00:59:59,800 --> 01:00:02,480
Speaker 8: wor working there. I can't help them in the same way.

1226
01:00:02,640 --> 01:00:06,120
Speaker 8: And the rural enterprise of de Moining may not be black,

1227
01:00:06,280 --> 01:00:08,640
Speaker 8: but they know their stuff. It's about knowledge and education

1228
01:00:08,680 --> 01:00:10,000
Speaker 8: at the end of the day. Like the black thing

1229
01:00:10,080 --> 01:00:12,880
Speaker 8: is an enhancer, but the bar the entry is just

1230
01:00:13,120 --> 01:00:17,040
Speaker 8: education and knowing what it is. So start with looking

1231
01:00:17,080 --> 01:00:20,360
Speaker 8: at very practical way when you drive around, take a

1232
01:00:20,360 --> 01:00:23,320
Speaker 8: picture of the signs, look them up, find people on LinkedIn,

1233
01:00:23,600 --> 01:00:27,000
Speaker 8: whether they black women, find some commonality and try to,

1234
01:00:27,120 --> 01:00:29,640
Speaker 8: you know, get in with them. Whether it be the architect,

1235
01:00:29,680 --> 01:00:33,000
Speaker 8: the construction company, the engineers, or the developer. All of

1236
01:00:33,040 --> 01:00:36,320
Speaker 8: them work with developers all the time. They know developers

1237
01:00:36,320 --> 01:00:37,640
Speaker 8: don't say, oh, I don't want to readous to the

1238
01:00:37,720 --> 01:00:38,880
Speaker 8: architect because I don't want to do that.

1239
01:00:39,680 --> 01:00:40,920
Speaker 3: Architects build for developers.

1240
01:00:40,960 --> 01:00:42,960
Speaker 8: Literally, they have a whole network of them, so if

1241
01:00:43,000 --> 01:00:45,400
Speaker 8: you build a raportable one, they can introduce you to

1242
01:00:45,480 --> 01:00:47,440
Speaker 8: their role to deck. So that's one of the ways

1243
01:00:48,600 --> 01:00:51,840
Speaker 8: I'm also looking at Since that episode, people come to

1244
01:00:51,880 --> 01:00:53,960
Speaker 8: me all the time, yo put out, put some out,

1245
01:00:54,000 --> 01:00:55,640
Speaker 8: put something out, put some out. So like I've been,

1246
01:00:56,320 --> 01:00:59,439
Speaker 8: I've been against the course thing. That's not my thing

1247
01:00:59,520 --> 01:01:02,840
Speaker 8: because you can't put together a course and someone comes

1248
01:01:02,840 --> 01:01:03,880
Speaker 8: out and becomes a developer.

1249
01:01:04,000 --> 01:01:05,680
Speaker 3: That's not a thing you can go, I said the

1250
01:01:05,720 --> 01:01:07,920
Speaker 3: last time. But you can go to the best.

1251
01:01:08,040 --> 01:01:11,480
Speaker 8: Schools and universities in the country for the commercial real

1252
01:01:11,560 --> 01:01:13,680
Speaker 8: estate programs and not be a developer when you come out.

1253
01:01:13,720 --> 01:01:16,160
Speaker 8: So I'm looking at like putting together a community of

1254
01:01:16,200 --> 01:01:21,440
Speaker 8: folks like really to bring resources in all of this.

1255
01:01:21,640 --> 01:01:25,200
Speaker 8: Whether you're in Chicago or in la or in Atlanta,

1256
01:01:25,720 --> 01:01:28,080
Speaker 8: you can network and get the education, but then also

1257
01:01:28,120 --> 01:01:30,720
Speaker 8: look at kind of local networks as well to deal

1258
01:01:30,760 --> 01:01:33,120
Speaker 8: with people that are like minded. So that's another way

1259
01:01:33,600 --> 01:01:35,520
Speaker 8: that'll be through the roles of Groove.

1260
01:01:35,320 --> 01:01:36,000
Speaker 3: That I put out.

1261
01:01:36,440 --> 01:01:38,560
Speaker 8: Finally, I'm putting together my podcast y'all inspire me to

1262
01:01:38,600 --> 01:01:42,360
Speaker 8: and I'm trying to put it out so that but

1263
01:01:43,040 --> 01:01:47,960
Speaker 8: in general, I think researching man like right now, YouTube university,

1264
01:01:48,280 --> 01:01:51,800
Speaker 8: he well University. There's a lot of information out here

1265
01:01:51,840 --> 01:01:55,000
Speaker 8: that you can find, like for free. You know that

1266
01:01:55,640 --> 01:01:57,320
Speaker 8: the game that I gave on the last episode is

1267
01:01:57,360 --> 01:01:59,400
Speaker 8: a great way to get into it, you know, right

1268
01:01:59,520 --> 01:02:02,000
Speaker 8: down literally those things is some of the other people

1269
01:02:02,040 --> 01:02:04,800
Speaker 8: that have done they are not working with developers now,

1270
01:02:05,240 --> 01:02:07,320
Speaker 8: like at development shops. There are people that started their

1271
01:02:07,320 --> 01:02:09,720
Speaker 8: own development companies. There are people that want rps that

1272
01:02:10,160 --> 01:02:13,800
Speaker 8: there are living testimonies of folks that like lives have

1273
01:02:14,000 --> 01:02:17,920
Speaker 8: changed because of that episode and the platform that you

1274
01:02:17,960 --> 01:02:21,960
Speaker 8: all created. So I think leveraging resources in every aspect

1275
01:02:22,000 --> 01:02:23,560
Speaker 8: of the way is really how you do it.

1276
01:02:23,960 --> 01:02:27,560
Speaker 5: It's affordable housing from a developer perspective, just from a

1277
01:02:28,920 --> 01:02:33,320
Speaker 5: social perspective, is it beneficial in closing the wealth gap?

1278
01:02:35,160 --> 01:02:38,520
Speaker 5: Or does it just keep status quo. You're doing a

1279
01:02:38,600 --> 01:02:42,240
Speaker 5: good thing by providing service for people, But I just

1280
01:02:42,520 --> 01:02:46,480
Speaker 5: I don't know if that is something it's exactly It's

1281
01:02:46,520 --> 01:02:50,480
Speaker 5: like welfare, right, Welfare is beneficial, yeah, assistance yes, but

1282
01:02:51,160 --> 01:02:54,040
Speaker 5: it's you're kind of staying at this level es right.

1283
01:02:53,960 --> 01:02:55,320
Speaker 3: Yeah, you one hundred percent right.

1284
01:02:55,680 --> 01:02:58,400
Speaker 8: So affordable housing in the traditional sense most people think

1285
01:02:58,400 --> 01:03:00,640
Speaker 8: it's Section eight, you know all of that stuff. But

1286
01:03:00,720 --> 01:03:02,640
Speaker 8: if y'all notice, like, for the most part, I do

1287
01:03:02,720 --> 01:03:05,680
Speaker 8: mixed income housing, so I have market right units and

1288
01:03:05,760 --> 01:03:09,280
Speaker 8: pretty much all of my deals. It may be sixty

1289
01:03:09,320 --> 01:03:12,240
Speaker 8: percent or seventy percent affordable and maybe twenty percent market.

1290
01:03:12,280 --> 01:03:15,200
Speaker 8: And even the affordability is at different levels. It's thirty

1291
01:03:15,240 --> 01:03:18,439
Speaker 8: percent of the AMI, which is low income. At Section eight,

1292
01:03:18,680 --> 01:03:21,160
Speaker 8: you got it at sixty percent of the AMI, which

1293
01:03:21,200 --> 01:03:26,560
Speaker 8: is typically your workforce, so you're barista at the local

1294
01:03:26,560 --> 01:03:29,040
Speaker 8: coffee shop, or your teacher, et cetera.

1295
01:03:29,240 --> 01:03:30,000
Speaker 3: They live there as well.

1296
01:03:30,040 --> 01:03:32,080
Speaker 8: But then the market rate folks that may be at

1297
01:03:32,080 --> 01:03:35,080
Speaker 8: six figures plus are also in these buildings, our building

1298
01:03:35,160 --> 01:03:39,000
Speaker 8: areas that are predominantly market rate. So like the Water

1299
01:03:39,000 --> 01:03:40,760
Speaker 8: Street building that I'm putting up right now will be

1300
01:03:40,800 --> 01:03:43,400
Speaker 8: done really at the end of this month, but people

1301
01:03:43,440 --> 01:03:46,480
Speaker 8: start moving in next month. That building right next door

1302
01:03:46,520 --> 01:03:48,600
Speaker 8: is a ton of condos right across street, a ton

1303
01:03:48,640 --> 01:03:53,200
Speaker 8: of condos. There were fifty people in opposition every single

1304
01:03:53,200 --> 01:03:55,760
Speaker 8: community meeting we have for that deal, because they didn't

1305
01:03:55,800 --> 01:03:59,000
Speaker 8: want them around. They thought of like this negative stigma

1306
01:03:59,040 --> 01:04:02,640
Speaker 8: of affordable house. Again, what I'm doing is mixed income housing,

1307
01:04:02,720 --> 01:04:05,080
Speaker 8: so like the people that are living in that condo

1308
01:04:05,160 --> 01:04:07,280
Speaker 8: can actually live here too if they want to sell.

1309
01:04:07,280 --> 01:04:10,200
Speaker 8: Are kind of a move and it's justice quality. So

1310
01:04:10,360 --> 01:04:13,800
Speaker 8: when you have a mixed income in one group, that's

1311
01:04:13,840 --> 01:04:18,040
Speaker 8: where you have the different levels of collaboration. It's kind

1312
01:04:18,040 --> 01:04:20,560
Speaker 8: of like Uel, right, think about investments. There are people

1313
01:04:20,640 --> 01:04:23,000
Speaker 8: super low income, there are people meeting income, and there

1314
01:04:23,000 --> 01:04:28,040
Speaker 8: are people extremely high income. That's the melting pot of success.

1315
01:04:28,400 --> 01:04:29,040
Speaker 3: If you just.

1316
01:04:29,040 --> 01:04:32,520
Speaker 8: Continuously have affordability at this level and below. We never

1317
01:04:32,520 --> 01:04:34,919
Speaker 8: get out of that because you never see, you never learn,

1318
01:04:34,960 --> 01:04:37,280
Speaker 8: you never grow. Y'all are to live an example of

1319
01:04:37,360 --> 01:04:39,880
Speaker 8: really the answer to your question you got to see

1320
01:04:39,920 --> 01:04:42,120
Speaker 8: some to believe in. And if you just keep that

1321
01:04:42,240 --> 01:04:45,479
Speaker 8: concentration of poverty together, No, that is not the answer

1322
01:04:45,520 --> 01:04:45,760
Speaker 8: at all.

1323
01:04:47,080 --> 01:04:50,200
Speaker 3: This is why you text me. This is why you

1324
01:04:50,240 --> 01:04:50,560
Speaker 3: text me.

1325
01:04:50,600 --> 01:04:52,600
Speaker 4: After the segment that we were going back and forth

1326
01:04:52,640 --> 01:04:54,600
Speaker 4: on market, mondays, that's right, and I was trying to

1327
01:04:54,880 --> 01:04:56,720
Speaker 4: It's kind of like the first thing is like, let's

1328
01:04:56,720 --> 01:05:00,760
Speaker 4: have our basic needs met and then let's be inspired both.

1329
01:05:00,920 --> 01:05:04,240
Speaker 4: I think both both points are pretty valid. You did

1330
01:05:04,640 --> 01:05:07,720
Speaker 4: the mixed units but there's also different types of real

1331
01:05:07,840 --> 01:05:11,600
Speaker 4: estate that you're invested in now. So let's talk about

1332
01:05:11,640 --> 01:05:13,520
Speaker 4: what the portfolio is going to be looking like in

1333
01:05:13,560 --> 01:05:14,960
Speaker 4: the next five to ten years.

1334
01:05:15,200 --> 01:05:19,000
Speaker 8: Yeah, great question. U. Diversification from a geographic perspective a

1335
01:05:19,080 --> 01:05:21,520
Speaker 8: kind of outline. But to your point, I'm looking at

1336
01:05:21,560 --> 01:05:24,880
Speaker 8: other things. I think development in general right now is down.

1337
01:05:24,960 --> 01:05:28,080
Speaker 8: Like real estate is cyclical. There's four cycles. Like we're

1338
01:05:28,120 --> 01:05:30,760
Speaker 8: not in a good one right now. I won't say

1339
01:05:30,760 --> 01:05:32,320
Speaker 8: not in a good one, We're just in one that's

1340
01:05:32,600 --> 01:05:35,240
Speaker 8: historically like bad. Right You just have to know what

1341
01:05:35,280 --> 01:05:37,360
Speaker 8: to do within that cycle. So right now, what I'm

1342
01:05:37,400 --> 01:05:42,000
Speaker 8: really looking at is multi family acquisitions, Like, how do

1343
01:05:42,080 --> 01:05:44,120
Speaker 8: I go, Yes, I got a couple thousand units on

1344
01:05:44,160 --> 01:05:48,120
Speaker 8: my pipeline that I'm developing over the next eight to ten.

1345
01:05:48,640 --> 01:05:51,680
Speaker 3: I take a long time, But how do I buy five.

1346
01:05:51,440 --> 01:05:55,120
Speaker 8: Thousand units in the next five years? Acquisitions? You can

1347
01:05:55,120 --> 01:05:58,640
Speaker 8: buy that? Like literally the formula on the commercial real

1348
01:05:58,720 --> 01:06:02,439
Speaker 8: estate side, again, it's simple, one hundred million dollars. I'm

1349
01:06:02,480 --> 01:06:05,520
Speaker 8: getting seventy a debt, I need thirty million equity. I

1350
01:06:05,560 --> 01:06:09,120
Speaker 8: need to bring three million to the table. So really,

1351
01:06:09,160 --> 01:06:12,000
Speaker 8: through the various platforms and initiatives. We can start to

1352
01:06:12,040 --> 01:06:14,680
Speaker 8: identify that three million, so I could bring and find

1353
01:06:14,680 --> 01:06:17,280
Speaker 8: it twenty seven. That can then fund the one hundred

1354
01:06:17,360 --> 01:06:21,440
Speaker 8: million dollar deal. From an acquisition perspective, if I can

1355
01:06:21,880 --> 01:06:25,760
Speaker 8: scale that up, it creates a level of balance, like

1356
01:06:25,880 --> 01:06:30,800
Speaker 8: not just affordability, because developers are very like I said rich,

1357
01:06:31,080 --> 01:06:34,240
Speaker 8: balance seats crazy, but like cash poor. I just said,

1358
01:06:34,280 --> 01:06:36,439
Speaker 8: it takes five hundred thousand to a million dollars a deal.

1359
01:06:36,520 --> 01:06:37,919
Speaker 8: So if you got five of them things, no matter

1360
01:06:37,920 --> 01:06:39,600
Speaker 8: how wealthy you are at a certain point, it's like

1361
01:06:39,640 --> 01:06:43,240
Speaker 8: my cash is low. But the thing about the value

1362
01:06:43,240 --> 01:06:46,680
Speaker 8: asked stuff. I had a friend Venus. She bought a

1363
01:06:46,720 --> 01:06:48,680
Speaker 8: deal right outside of Atlanta.

1364
01:06:49,320 --> 01:06:50,160
Speaker 3: I think it was.

1365
01:06:52,160 --> 01:06:54,880
Speaker 8: Forty million in twenty twenty one and soda for one

1366
01:06:54,880 --> 01:06:58,479
Speaker 8: to twenty and like or twenty twenty twenty and total

1367
01:06:58,600 --> 01:07:02,520
Speaker 8: eighteen months later for like one twenty. So you look

1368
01:07:02,520 --> 01:07:04,640
Speaker 8: at opportunities from a value a perspective if you know

1369
01:07:04,640 --> 01:07:06,640
Speaker 8: how to underwrite them and look for the right things.

1370
01:07:07,120 --> 01:07:11,240
Speaker 8: There's class C and dep properties that really need the

1371
01:07:11,240 --> 01:07:14,760
Speaker 8: same level care that some of these new developments are getting.

1372
01:07:15,000 --> 01:07:18,120
Speaker 8: You go in, you put in the rehab money, you go.

1373
01:07:18,440 --> 01:07:21,360
Speaker 3: Fix it up now. It's to be B plus a minus.

1374
01:07:22,680 --> 01:07:27,480
Speaker 8: Now you're cranking out income equivalent to the new construction

1375
01:07:27,560 --> 01:07:29,640
Speaker 8: stuff that's out there at a fraction of the cost.

1376
01:07:30,080 --> 01:07:33,000
Speaker 8: So the value here is probably just less than the

1377
01:07:33,080 --> 01:07:37,240
Speaker 8: value there. But your basis for getting in is here,

1378
01:07:38,160 --> 01:07:40,600
Speaker 8: so that spread is yours. So I'm really looking at

1379
01:07:40,640 --> 01:07:44,240
Speaker 8: it from that perspective. From a multi family acquisition play

1380
01:07:44,920 --> 01:07:49,240
Speaker 8: developing some studios in Atlanta. Hopefully by the time this

1381
01:07:49,320 --> 01:07:52,760
Speaker 8: comes out, I can make a formal announcement, but two

1382
01:07:54,120 --> 01:07:57,200
Speaker 8: really really big you know, partners in conversations with their

1383
01:07:58,360 --> 01:08:01,560
Speaker 8: industrial that was one of the best asset classes in

1384
01:08:01,960 --> 01:08:05,600
Speaker 8: the pandemic across anything. I mean, didn't matter, stocks, bonds,

1385
01:08:05,640 --> 01:08:10,160
Speaker 8: real estate don't matter. Industrial real estate was toe to

1386
01:08:10,200 --> 01:08:12,600
Speaker 8: toe with anything else you put up there. So when

1387
01:08:12,640 --> 01:08:15,840
Speaker 8: you look at that, it's like, okay, regardless of anything

1388
01:08:15,840 --> 01:08:22,120
Speaker 8: that's going on in capital markets, this specific thing is booming.

1389
01:08:22,200 --> 01:08:25,120
Speaker 8: And for production in Atlanta, it's the new Hollywood, right,

1390
01:08:25,360 --> 01:08:28,520
Speaker 8: Like literally it's the new Hollywood. They have a thirty

1391
01:08:28,120 --> 01:08:32,120
Speaker 8: percent tax credit. If you do one hundred million dollar

1392
01:08:32,200 --> 01:08:34,880
Speaker 8: production in Atlanta, you get thirty million back.

1393
01:08:36,640 --> 01:08:37,559
Speaker 3: That's why they're there.

1394
01:08:38,400 --> 01:08:42,799
Speaker 8: So from a resident from a development perspective. My partner

1395
01:08:42,840 --> 01:08:45,840
Speaker 8: is an Ecbert and those guys they developed Third Rail

1396
01:08:45,880 --> 01:08:50,559
Speaker 8: Studios ended up selling it and whatnot. But the Rocks

1397
01:08:50,600 --> 01:08:53,000
Speaker 8: movie Rampage was film there, Ozark was filmed there. Like

1398
01:08:53,040 --> 01:08:54,880
Speaker 8: that's the quality of productions that will be coming out

1399
01:08:54,880 --> 01:08:57,840
Speaker 8: of these studios. So studios, I think, is a huge

1400
01:08:57,840 --> 01:09:00,640
Speaker 8: opportunity in Atlanta. It'll get saturated a little bit, but

1401
01:09:00,720 --> 01:09:02,280
Speaker 8: right now it's time to strike.

1402
01:09:02,600 --> 01:09:08,000
Speaker 5: So what about the Choice Neighborhood Implementation grant? It's that deal.

1403
01:09:08,400 --> 01:09:11,519
Speaker 8: So that's that's the Birmingham man. That three hundred and

1404
01:09:11,600 --> 01:09:15,240
Speaker 8: seventy million that they put it was from the federal government.

1405
01:09:15,320 --> 01:09:17,320
Speaker 8: So last time we did a deep dive on tax credits,

1406
01:09:17,320 --> 01:09:21,120
Speaker 8: but I think this time we should definitely highlight this fact.

1407
01:09:22,720 --> 01:09:25,240
Speaker 3: I won a fifty million dollar grand granted. Was a team.

1408
01:09:26,040 --> 01:09:28,439
Speaker 8: But I when I did that interview two and a

1409
01:09:28,479 --> 01:09:30,479
Speaker 8: half years ago, I didn't know I could win a

1410
01:09:30,520 --> 01:09:32,840
Speaker 8: fifty million dollar grant. I had no clue that there

1411
01:09:32,880 --> 01:09:35,360
Speaker 8: was a fifty million dollar grant exists that Brandon Rule

1412
01:09:35,400 --> 01:09:37,760
Speaker 8: could be a part of. But now it's like, oh,

1413
01:09:37,800 --> 01:09:41,519
Speaker 8: I do so the Choice Neighborhood Implementation grant is that

1414
01:09:41,640 --> 01:09:44,439
Speaker 8: fifty out of the three seventy, it was the highest

1415
01:09:44,439 --> 01:09:46,880
Speaker 8: one that got We got the biggest check. Some people

1416
01:09:46,880 --> 01:09:50,360
Speaker 8: got fifty, some got forty, some got less. But it

1417
01:09:50,400 --> 01:09:52,720
Speaker 8: allows you to redevelop these communities. And when I talked

1418
01:09:52,720 --> 01:09:56,439
Speaker 8: about the capital stack earlier on the community development side,

1419
01:09:57,160 --> 01:09:59,160
Speaker 8: the value was here, but the cost is here.

1420
01:09:59,560 --> 01:10:02,080
Speaker 3: That million plugs in that delta grant.

1421
01:10:02,120 --> 01:10:04,640
Speaker 5: Where's the grant from the state federal?

1422
01:10:04,720 --> 01:10:08,000
Speaker 8: Yeah, so that's when Secretary Fluds came down brought the check.

1423
01:10:08,600 --> 01:10:11,240
Speaker 8: Federal government every year they put it out. They just

1424
01:10:11,280 --> 01:10:15,599
Speaker 8: actually announced yesterday that they have I forget the exact number,

1425
01:10:15,640 --> 01:10:17,280
Speaker 8: but they're putting out I think it was two hundred

1426
01:10:17,320 --> 01:10:18,599
Speaker 8: and fifty or so million.

1427
01:10:18,680 --> 01:10:21,360
Speaker 5: How can people find grant information? Like how can you even.

1428
01:10:21,320 --> 01:10:26,120
Speaker 8: Google choice that specific one choice neighborhood implementation grant. They

1429
01:10:26,120 --> 01:10:29,840
Speaker 8: have a planning grant too that cities typically go and

1430
01:10:29,880 --> 01:10:32,559
Speaker 8: like that's such a five hundred thousand where they pay

1431
01:10:32,600 --> 01:10:34,200
Speaker 8: different consultants to put together their plan.

1432
01:10:34,320 --> 01:10:36,880
Speaker 3: But that fifty million is huge.

1433
01:10:37,120 --> 01:10:39,640
Speaker 4: Yeah, I mean, and relationships again, like you said, the

1434
01:10:39,680 --> 01:10:42,840
Speaker 4: fact that the mayor knew the Secretary of HUD, and

1435
01:10:42,880 --> 01:10:45,679
Speaker 4: the fact that the Secretary of HUD looks like us

1436
01:10:46,400 --> 01:10:48,280
Speaker 4: helps absolutely.

1437
01:10:47,680 --> 01:10:49,639
Speaker 3: In two years that might not be the case.

1438
01:10:50,520 --> 01:10:52,840
Speaker 8: It's time to strike or at least learn, because in

1439
01:10:52,880 --> 01:10:55,000
Speaker 8: eight years it might be the case again exactly. But

1440
01:10:55,080 --> 01:10:57,799
Speaker 8: you'll be prepared once you put yourself in that position.

1441
01:10:57,960 --> 01:11:01,080
Speaker 8: Like my preparation really is what's manifesting itself into what

1442
01:11:01,479 --> 01:11:03,880
Speaker 8: we are starting to see today. Like I, if it

1443
01:11:03,920 --> 01:11:06,040
Speaker 8: wasn't for me doing those tax credit deals, I wouldn't

1444
01:11:06,040 --> 01:11:07,599
Speaker 8: be able to do this master plan stuff.

1445
01:11:07,760 --> 01:11:09,719
Speaker 3: But I know how to do each individual deal.

1446
01:11:10,160 --> 01:11:11,920
Speaker 8: So now when I'm putting together seven, it's like, I

1447
01:11:11,960 --> 01:11:13,760
Speaker 8: know how to do each individual one, but let me

1448
01:11:13,760 --> 01:11:15,720
Speaker 8: put together the plan for the seven. Now I got

1449
01:11:15,720 --> 01:11:18,000
Speaker 8: integrow and partnerships here and be able to help streamline

1450
01:11:18,040 --> 01:11:18,479
Speaker 8: that process.

1451
01:11:18,520 --> 01:11:20,400
Speaker 3: Compare yourself for the moment. That's right.

1452
01:11:20,760 --> 01:11:24,719
Speaker 5: Well, there you have it, ladies and gentlemen, another gym

1453
01:11:24,760 --> 01:11:26,400
Speaker 5: packed session. So I know you tell you got the

1454
01:11:26,439 --> 01:11:29,040
Speaker 5: podcast coming. What else you want to leave the people with?

1455
01:11:29,800 --> 01:11:30,000
Speaker 3: Yeah?

1456
01:11:30,080 --> 01:11:31,559
Speaker 8: Check out the rods of group? So that how to

1457
01:11:31,560 --> 01:11:34,479
Speaker 8: be the podcast? When's it come out? I'm rocking it? Ah,

1458
01:11:35,160 --> 01:11:36,640
Speaker 8: by the end of the year. Let's just say that.

1459
01:11:36,640 --> 01:11:37,679
Speaker 5: What's it about real estate?

1460
01:11:38,000 --> 01:11:38,240
Speaker 3: Yeah?

1461
01:11:38,240 --> 01:11:40,920
Speaker 8: Primarily real estate. Originally it was like entrepreneurship. I thought

1462
01:11:40,920 --> 01:11:43,880
Speaker 8: about it in like twenty fifteen. It was like eyl honestly,

1463
01:11:44,160 --> 01:11:47,040
Speaker 8: but I just was crazy busy, Like legit. If you

1464
01:11:47,040 --> 01:11:49,880
Speaker 8: go back to Facebook in twenty fifteen, you'll see like posts.

1465
01:11:49,479 --> 01:11:52,320
Speaker 4: That was I think I saw you was sitting on

1466
01:11:52,320 --> 01:11:52,679
Speaker 4: the couch.

1467
01:11:52,720 --> 01:11:53,479
Speaker 3: It was very dark.

1468
01:11:53,760 --> 01:11:57,599
Speaker 8: Yeah yeah, I mean yeah, video qualities trying Yeah yeah,

1469
01:11:57,640 --> 01:11:58,559
Speaker 8: so you know I was.

1470
01:11:58,600 --> 01:11:59,960
Speaker 3: I was trying to do some stuff back then.

1471
01:12:00,080 --> 01:12:04,719
Speaker 8: But now I think just market conditions, right, like there's

1472
01:12:05,200 --> 01:12:08,200
Speaker 8: there's a source for that now, which I love. And

1473
01:12:08,200 --> 01:12:10,439
Speaker 8: that's what I appreciate y'all for it, because I only

1474
01:12:10,479 --> 01:12:12,120
Speaker 8: wanted to do it because I was coming up as

1475
01:12:12,120 --> 01:12:14,240
Speaker 8: a developing an entrepreneur and like, yo, I don't see this.

1476
01:12:14,800 --> 01:12:16,400
Speaker 3: But y'all did it. It's like perfect, Okay.

1477
01:12:16,479 --> 01:12:18,679
Speaker 8: So I feel like there's a real estate void too

1478
01:12:19,200 --> 01:12:20,920
Speaker 8: in a way that I think I could feel it.

1479
01:12:20,960 --> 01:12:23,000
Speaker 8: So that's primarily what it's about. So I'll be doing

1480
01:12:23,000 --> 01:12:25,759
Speaker 8: some entrepreneurs but mainly, yeah, it'll be real estate based

1481
01:12:26,560 --> 01:12:30,639
Speaker 8: and then also reinvestors, this crowdfunded platform that will be

1482
01:12:30,680 --> 01:12:33,040
Speaker 8: for developers. But one of the things that I created

1483
01:12:34,040 --> 01:12:36,559
Speaker 8: and investors, one of the things I created on there

1484
01:12:36,680 --> 01:12:38,800
Speaker 8: was a real estate calculator. So when I talk about

1485
01:12:38,840 --> 01:12:41,680
Speaker 8: the financial model and whatnot, I literally built out a

1486
01:12:41,720 --> 01:12:44,160
Speaker 8: whole financial model and the user interface that you can

1487
01:12:44,240 --> 01:12:47,599
Speaker 8: just plug in the purchase price, plug in the amount

1488
01:12:47,640 --> 01:12:49,880
Speaker 8: of rent, plugged it center then spit out all of

1489
01:12:49,880 --> 01:12:52,400
Speaker 8: the stuff for you, so that'll be on reinvest and

1490
01:12:52,439 --> 01:12:54,360
Speaker 8: that's for that's just free gym for the people.

1491
01:12:55,439 --> 01:12:58,679
Speaker 5: All Right, you have it. Ladies and gentlemen, make sure

1492
01:12:58,680 --> 01:13:01,200
Speaker 5: you follow my guy. What's your instrum b underscore?

1493
01:13:01,280 --> 01:13:04,439
Speaker 8: Are you elli b roll on all platforms? And need

1494
01:13:04,520 --> 01:13:05,160
Speaker 8: some good brothers?

1495
01:13:05,160 --> 01:13:05,360
Speaker 3: Man.

1496
01:13:05,800 --> 01:13:08,800
Speaker 8: One last thing I'll say behind the scenes, y'all some

1497
01:13:08,840 --> 01:13:11,200
Speaker 8: really good brothers. We won't talk every day, but you

1498
01:13:11,240 --> 01:13:12,920
Speaker 8: know what I'm saying. It's been stand up in genuine

1499
01:13:12,920 --> 01:13:15,360
Speaker 8: from the beginning. So I know y'all might see them

1500
01:13:15,360 --> 01:13:17,639
Speaker 8: with the celebrities and whatnot, but these are the same

1501
01:13:17,680 --> 01:13:20,080
Speaker 8: brothers I'm met, you know, almost.

1502
01:13:19,720 --> 01:13:20,840
Speaker 3: Three years ago at this point.

1503
01:13:20,880 --> 01:13:24,880
Speaker 5: So appreciate you all, love, appreciate it all right, God,

1504
01:13:24,920 --> 01:13:27,160
Speaker 5: thank you for rocking with us. We'll see you next week. Peace.

1505
01:13:27,320 --> 01:13:31,160
Speaker 1: Peace an illegal alien from Guatemala charged with raping a

1506
01:13:31,240 --> 01:13:34,760
Speaker 1: child in Massachusetts. An MS thirteen gang member from al

1507
01:13:34,840 --> 01:13:39,639
Speaker 1: Salvador accused of murdering a Texas man of Venezuelan charged

1508
01:13:39,680 --> 01:13:43,559
Speaker 1: with filming and selling child pornography in Michigan. These are

1509
01:13:43,640 --> 01:13:47,120
Speaker 1: just some of the heinous migrant criminals caught because of

1510
01:13:47,160 --> 01:13:51,200
Speaker 1: President Donald J. Trump's leadership. I'm Christinoman, the United States

1511
01:13:51,200 --> 01:13:56,000
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

1512
01:13:56,040 --> 01:13:59,559
Speaker 1: crossings are at the lowest levels ever recorded and over

1513
01:13:59,600 --> 01:14:02,240
Speaker 1: one hundred where one thousand illegal aliens have been arrested.

1514
01:14:02,560 --> 01:14:06,120
Speaker 1: If you are here illegally, your next you will be

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01:14:06,160 --> 01:14:10,040
Speaker 1: fine nearly one thousand dollars a day, imprisoned and deported.

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01:14:10,479 --> 01:14:13,720
Speaker 1: You will never return. But if you register using our

1517
01:14:13,760 --> 01:14:16,960
Speaker 1: CBP home app and leave now, you could be allowed

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01:14:17,000 --> 01:14:21,960
Speaker 1: to return legally. Do what's right. Leave now. Under President Trump,

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01:14:22,120 --> 01:14:25,719
Speaker 1: America's laws, border and families will be protected.

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01:14:25,800 --> 01:14:27,960
Speaker 2: Sponsored by the United States Department of Homeland Security.