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Speaker 3: monthly group chat call. So once a month, Me, Troy

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Speaker 6: On the other side, my graduates from my school being

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Speaker 6: forced back drop b drop, Mike drop back drop drop.

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

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

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

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

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Speaker 7: based in New York and I read this book really

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Speaker 7: was inspired by the really technical things that he said

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Speaker 7: within it. It's like, this is how I became what

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Speaker 7: I became. And I was like, oh, this is great. Okay,

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Speaker 7: well I'm follow a similar path, but just do it

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Speaker 7: my way. So on twenty seventeen, I twenty sixteen, I

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

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

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Speaker 7: So if you think about a Section eight property Brinnie

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Speaker 7: Green's in Chicago. You know some of these really large

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

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

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Speaker 7: were financing them. But now they use a tool called

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Speaker 7: Section forty two i RS Code.

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Speaker 4: Which is a tax credit.

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

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

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Speaker 3: Can you can you explain that a little bit, because yeah,

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Speaker 3: we section eight. I think most people know what Section

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Speaker 3: eight is, right, where it's like it's government and they

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Speaker 3: subsidized housing, right, and but Section A you don't have

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Speaker 3: to live in the projects like you can have a house.

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Speaker 7: So there's two different types. There's Section eight project based vouchures.

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Speaker 7: So projects got the Section eight assistance, but then they

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Speaker 7: were also like people based box where you can take

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Speaker 7: that you.

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Speaker 3: Go into like a house, and they pay the landlord.

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Speaker 3: So what's the new way?

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

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

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

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

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Speaker 7: it may cost forty million dollars to develop.

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Speaker 4: A building, right.

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Speaker 7: Typically, in order to fund that building, you need rents

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Speaker 7: that'll pay you enough to then get a bank to

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Speaker 7: give you a loan, so you need a construction loan,

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Speaker 7: and then you need perman and financing.

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Speaker 4: So in order to.

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

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

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Speaker 4: So if your.

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

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Speaker 7: it equates to forty million dollars.

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Speaker 4: You can then build.

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Speaker 5: Who's doing the assessment of how much each one is worth?

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Speaker 4: Each unit? The market kind of determines that.

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

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

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

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

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Speaker 7: still need additional housing in order to build that. The

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

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

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

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

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Speaker 7: it work.

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Speaker 3: They so they'll pay you the developer, they pay the project,

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Speaker 3: the project. They pay them, not you personally, but they

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Speaker 3: fund the project and.

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Speaker 7: They allocate a tax credit to the developer to sell

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Speaker 7: on behalf of the project.

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Speaker 2: So they paid that the person paid seven hundred and

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Speaker 2: one thousand dollar if it was seventeen hundred and one

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Speaker 2: thousand dollars, is being paid.

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Speaker 4: Through through the tax credit upfront.

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Speaker 7: And in exchange for the tax credit, you have to

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Speaker 7: restrict the rents for a certain amount of time fifteen years,

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Speaker 7: thirty years, et cetera. And the rent to like market based. Yeah,

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Speaker 7: so it's based on the area median income. So that's

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Speaker 7: really like how they determine it, and they have different thresholds.

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Speaker 7: So a thirty percent unit is like very low in

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

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Speaker 4: We will call workforce or affordable housing.

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

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

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

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

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

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

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

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

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Speaker 7: can pay. Okay, So okay, yeah, so it's a little deep. Sorry, No,

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Speaker 7: that's that's right, up eyo, that's what we do. That's

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Speaker 7: the whole it's right, a lot of numbers right in

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Speaker 7: line with our content. So you meet, you meet down

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Speaker 7: people's right, Yeah, and how does that go?

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Speaker 4: Yeah?

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

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

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Speaker 7: to meet this guy.

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Speaker 4: So I still by the door, very to niceous.

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Speaker 7: Sid I'm an ambitious guy by nature, a type personality.

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Speaker 7: If I want time, I'm gonna go get it. And

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Speaker 7: I wanted to meet him, so I went introduced myself.

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Speaker 7: I just received that tax credit. That's why I wanted

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Speaker 7: to get a story. Just receive the tax credit. I

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Speaker 7: was about to develop my first project. Hey, don what's up.

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Speaker 7: I'm branded. I got my first project in. I got

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Speaker 7: a couple more in my pipeline. Would love to connect.

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Speaker 7: And he was impressed by what I was doing because

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Speaker 7: my age I think I was twenty six twenty seven

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

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Speaker 7: He was awarded his first project at twenty seven as well,

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Speaker 7: so I was on that path. It's like, okay, yeah,

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Speaker 7: this is the only black billionaire doing what I'm doing.

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Speaker 4: I need to meet him.

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

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

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

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

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

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

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Speaker 7: million dollar deal was a market rate unit. There wasn't

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Speaker 7: an affordable Housit development. I actually never went through. I'll

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Speaker 7: talk on that too, but I need to raise about

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Speaker 7: one and a half from equity investors in order to

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Speaker 7: finance the project. And you just, you know, go out

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Speaker 7: to folks, get one hundred thousand here, two fifty there,

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Speaker 7: you know, et cetera, et cetera. And he pretty much

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Speaker 7: just put it in perspective for me. He said, I

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Speaker 7: just raised five hundred million dollars in New York and

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Speaker 7: this is the easiest money I ever raised. Because institutional capital,

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Speaker 7: the demand on that is so it's so much, it's

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Speaker 7: so much less than the demand on every day individuals

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Speaker 7: and investments. Because you can invest in stocks, you can

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Speaker 7: invest in bonds, you can invest in a different real

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Speaker 7: estate project, you can invest in your kids college fund.

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Speaker 7: Individuals have so many options. But institutional capital needs places

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Speaker 7: to put this money. So he told me to work

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Speaker 7: on larger deals. And I said, about three months later,

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Speaker 7: I moved to DC.

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Speaker 3: That reminds me of three stories. So I'll take it

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Speaker 3: one by one. Well, first off, you know how one

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Speaker 3: of the people that really got done people's into the game,

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Speaker 3: Barry and Barry for sure, you know that legend DC

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Speaker 3: legend rest in peace. So that's one story. The second

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Speaker 3: story is that that also that what you said reminds me.

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Speaker 3: I watched the interview with Magic Johnson and Maverick Carter

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Speaker 3: to shout out to both of them, and Magic told

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Speaker 3: Maverick he said, the same amount of time that it

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Speaker 3: takes to do a deal for one million, it takes

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Speaker 3: to do one hundred million, So do one hundred million

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Speaker 3: because it's the same energy, same energy. It's not like

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Speaker 3: it's not you have to do additional energy. It's the

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Speaker 3: same energy output. It's just you're focusing your energy on

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Speaker 3: the small guy level. You can focus your energy on

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Speaker 3: big or you can focus your in this on small.

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Speaker 3: The third one was Byron Allen. He was on a

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Speaker 3: breakfast club and he just said what you said as

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Speaker 3: far as like what especially in institutions, a lot of

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Speaker 3: times they have a problem where they have to they

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Speaker 3: have to spend money. They have to they have to

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Speaker 3: spend money.

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Speaker 4: They raised it, they haven't exactly.

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Speaker 3: They're looking for. They have whole teams devoted to look

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Speaker 3: for opportunities, which means they have whole teams devote to

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Speaker 3: look to say where can I give money away to

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Speaker 3: different deals and how can I position this because I

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Speaker 3: have five hundred million dollars, so it was just.

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Speaker 7: Five hundred So it's real. Raise your hand please, So

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Speaker 7: you have to understand the key to that. You have

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Speaker 7: to understand that language. It's a language of finance. That's

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Speaker 7: the way I look at it. It's no different from

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Speaker 7: English verse Spanish. We all know English, some people know Spanish,

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Speaker 7: some people know finance.

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Speaker 4: It's just a language.

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

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

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Speaker 7: you can make it work.

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Speaker 4: So how did you?

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Speaker 3: I'm interested to notice because you started in the game

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Speaker 3: very young, twenty early twenties and twenty three, you know,

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Speaker 3: humble beginnings, like your family was in real estate. So

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Speaker 3: how do you get your first deal? How do you

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Speaker 3: learn the language? How do you get your first deal

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Speaker 3: in real estate as a developer? Like how does that?

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Speaker 3: He walked me through that process, like your very first deal, Like,

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Speaker 3: how does that happen?

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

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

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

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

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

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Speaker 7: was twenty three. So let me rewind FJA three and

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Speaker 7: a half percent down. It was only eighty five thousand

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Speaker 7: dollars and I sold it for like one sixty n

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Speaker 7: So that was like, well played, it's different. You know,

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Speaker 7: it makes sense. So that was my entry entry point.

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Speaker 7: But rewinding. So once I finished the Acre program, I'm like, Okay,

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Speaker 7: this real estate thing is cool. I think I want

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Speaker 7: to figure out how to be a developer. I spent

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Speaker 7: a lot of time trying to put the pieces of

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Speaker 7: the puzzles together. So I started going to events. I

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

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

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Speaker 7: and information and knowledge. And I equated it to like

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Speaker 7: putting together a puzzle. Right, It's like, if this is

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Speaker 7: the real estate puzzle, how do I find the pieces

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Speaker 7: and then how do I put them together?

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Speaker 4: I met a guy by the name of Keith Broaden.

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Speaker 8: No.

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Speaker 7: First, I went to a uh An Awards bank will

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Speaker 7: called the Mandy Awards' Community Development Awards in the city

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Speaker 7: of Milwaukee. I'm actually up for I'm a finalist of

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Speaker 7: a Real Estate Awards. Okay too, So congratulations, thank you.

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Speaker 3: I'm sure you win.

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Speaker 7: Yeah, I appreciated this episode were put over the finish line.

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Speaker 4: So yeah.

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

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

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

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Speaker 7: that administers the long time housing tax credits. So I

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

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

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

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Speaker 4: This is the developers conference. It's going to be all developers.

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Speaker 7: There's going to be lenders, there's gonna be architects, syndicators,

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Speaker 7: anyone that plays in this arena in the state of

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Speaker 7: Wisconsin will be here at the conference. Conference was like

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Speaker 7: a couple of hundred dollars I didn't have. It ended

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Speaker 7: up getting sponsored somehow. I think I like figured out

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Speaker 7: a way to finesse my way up here. So you know,

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Speaker 7: I threw on a suit. I had a little nappy

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Speaker 7: frow at the time. I mean, I just was meeting

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Speaker 7: everyone I could meet, and I ran into this gentleman

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Speaker 7: who I just.

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Speaker 4: Saw a few weeks ago, Keith brought next.

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

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Speaker 7: costing their their syndication firm. They raised funds and then

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Speaker 7: they minister. They pretty much purchased the tax credits on

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Speaker 7: behalf of investors, and he gave me my first pro former.

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Speaker 7: So a performer is essentially an Excel document that pretty

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Speaker 7: much is the business plan for real estate development.

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Speaker 4: And what that does.

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Speaker 7: It allows you to understand how much this will cost

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Speaker 7: to build and how it will perform over the next

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Speaker 7: fifteen to thirty years. So he gave me this performer,

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Speaker 7: and I had no clue what it was. I wasn't

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Speaker 7: really a finance I was an economics major, but I

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Speaker 7: wasn't a math or finance guy really. So I was

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Speaker 7: just diving in and I tried to figure it out.

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Speaker 7: So I would like google every term.

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Speaker 4: You know. Google university is a thing, YouTube university is a thing.

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Speaker 5: You know.

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Speaker 4: I was googling every single term trying to understan.

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Speaker 3: You know what else today eyl university.

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Speaker 4: We'll talk about that later on. That's the thing you

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Speaker 4: need it. It's a real ting, okay, but even better

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Speaker 4: you know, by us.

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Speaker 7: So yeah, I was just googling all of the terms

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Speaker 7: within this document, and I just started to work in it.

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Speaker 4: So I was working at the bank at the time.

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Speaker 7: I was working at P and C Bank as a

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Speaker 7: personal banker and making twenty three thousand dollars a year,

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Speaker 7: and I was like, man, I can't this is my life, Like,

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Speaker 7: I'm not about to just be wearing these nice suits,

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Speaker 7: getting up at six in the morning and getting home

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Speaker 7: at six pm doing this for the rest of my life.

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Speaker 4: I can't do it.

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Speaker 7: So I would then get off work and then go

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Speaker 7: back to work from seven to midnight, seven to one,

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Speaker 7: seven to two. Every single day. I was in that

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Speaker 7: pro form of working for years, educating, educating myself in

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Speaker 7: that no articles, pub no press, no publication, no payments,

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Speaker 7: every single day I was working. So what then happened

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Speaker 7: was I realized that I was only making about fifteen

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Speaker 7: hundred after taxes per month. And then I came across

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Speaker 7: this four unit that was eighty five thousand dollars in Milwaukee.

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Speaker 7: In Milwaukee, so I put three and a half percent down.

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Speaker 7: I was written out there. I think the rents were

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Speaker 7: about six hundred apiece, maybe six twenty five, you know,

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Speaker 7: do the math on that twenty four my mortgage was

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Speaker 7: about one thousand, so I was clearing fourteen just off

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Speaker 7: of this when I was only clearing fifteen at the bank.

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Speaker 7: I quit my job the moment I bought the four unit.

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Speaker 7: I couldn't quit before because I needed to show the

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Speaker 7: income to bout a four unit. But once once I

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Speaker 7: was closed, I quit. I was out of there. That

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Speaker 7: then gave me the freedom to dig deeper into this

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Speaker 7: real estate thing.

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Speaker 4: Now you spend in the entire time, all my time,

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Speaker 4: energy and effort was going towards real estate development. Specifically.

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Speaker 7: I knew investing was cool, but I wanted to figure

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Speaker 7: out how to be a developer.

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Speaker 4: Because the fees associated with it are great.

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Speaker 7: You know, just to break it down, for real developer

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Speaker 7: doesn't get a forty million dollar payment or anything like that.

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Speaker 7: But you on the market right side, you made he

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Speaker 7: three to six percent of the total costs. So if

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Speaker 7: you're working on a one hundred million dollar, dude, do

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Speaker 7: the math. On the affordable side, you get about ten

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Speaker 7: to fifteen percent percent really on the total project costs.

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Speaker 3: So you so so so if you do a forty

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Speaker 3: million dollar deal, you get ten percent. That's four million

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Speaker 3: dollars correct.

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Speaker 4: Yeah, yes, ten to ten to fifteen percent.

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Speaker 5: He took the ladder.

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Speaker 3: Somewhere don't load for me, don't load somewhere around lower

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Speaker 3: respected respect.

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Speaker 7: So so so to that point it was like, okay,

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Speaker 7: let me figure out how to do this development thing.

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Speaker 7: I worked in his model. Boom boom boom bo. I

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Speaker 7: saw the number. So I'm like, oh, they're making some

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Speaker 7: real life money in this thing. So figured it out.

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Speaker 7: So I start working. I met with him again, showed

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Speaker 7: him and it was terrible. He helped me met a

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Speaker 7: consultant that does development consultant and she was actually a

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Speaker 7: CPA as well, CHARLENEA Brown basedide Atlanta. She helped me

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Speaker 7: hone my skills when it came to my performer, my model.

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Speaker 7: So what we did was just I would I would

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Speaker 7: try to work in it. I would send it to her,

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Speaker 7: she would edit it, send it back, and eventually I

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Speaker 7: got good. It's like okay, yeah, I know how to

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Speaker 7: do a project. So then I started looking for a project.

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Speaker 7: So are you doing this on a platform? What's the

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Speaker 7: exale microsoftic sale? I was on my computer. You could

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Speaker 7: huntre it out a computer from best Buy, downloaded sale

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Speaker 7: and you working.

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Speaker 4: That's it. That's it. You don't need any anything else.

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Speaker 7: So I'm just teaching myself all the language, teaching myself

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Speaker 7: how to do things.

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Speaker 4: So I started swinging at projects and I was missing.

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Speaker 4: But it was one.

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Speaker 7: It was a city on RFP request for a proposal,

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Speaker 7: very similar to the one that I just wanted Madison.

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Speaker 4: That one.

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Speaker 7: I ended up pitching it to a developer and I'm like, yo,

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Speaker 7: let's co develop this project. Here's my model for it.

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Speaker 7: Would you guys be willing to split the developer fee

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Speaker 7: and the ownership? The model is what's what's the model

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Speaker 7: is another name for the proformer?

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Speaker 4: My bad?

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00:18:05,760 --> 00:18:06,560
Speaker 3: What's the performer?

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Speaker 7: The performer is the business plan for real estate development

380
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Speaker 7: in the Excel.

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Speaker 2: In my mind, I'm thinking developer, performer, and model are

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Speaker 2: They're the same thing.

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Speaker 4: So I'm using them interchangeably.

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Speaker 3: So it's like, it's like the blueprint.

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Speaker 7: It's the blueprint, the financial blueprint, financial blueprint for real

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Speaker 7: estate development.

387
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Speaker 2: How does developer do the physical blueprint as well? Or

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Speaker 2: that's going to be somebody down the.

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Speaker 7: Line with we outsource some Some development shops can have

390
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Speaker 7: an architectural person on and but I outsource it.

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Speaker 3: So all right, So you you study, you learn, you

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Speaker 3: learn how to make a financial blueprint for a project

393
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Speaker 3: like this is my vision is financially how it makes sense?

394
00:18:43,760 --> 00:18:46,040
Speaker 3: For sure, you don't have any experience. So you go

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Speaker 3: to another established developer.

396
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Speaker 4: They've done it all.

397
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Speaker 3: They've done it already. You say, I already have the blueprint.

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Speaker 3: Let's work together, and this week is split.

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Speaker 4: Yeah.

400
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Speaker 7: So so now I'm creating value. That's the key to

401
00:18:58,560 --> 00:19:00,639
Speaker 7: get any partnership. You have to create value for the

402
00:19:00,680 --> 00:19:02,600
Speaker 7: other person. It's not about what you want, is what

403
00:19:02,640 --> 00:19:04,159
Speaker 7: they want and how can you give it for them?

404
00:19:04,200 --> 00:19:05,000
Speaker 4: That's fact, right.

405
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Speaker 7: So it's like, okay, I mean, I'm gonna give youall

406
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Speaker 7: a real number. So I think that project was let's

407
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Speaker 7: say ten million dollars. It was a ten million dollars deal.

408
00:19:12,640 --> 00:19:14,479
Speaker 7: The fee on nine was twelve percent, so we was

409
00:19:14,600 --> 00:19:17,040
Speaker 7: at one point two and I'm like, all right, well,

410
00:19:17,320 --> 00:19:20,800
Speaker 7: can we go fifty to fifty on it? All right,

411
00:19:20,880 --> 00:19:24,439
Speaker 7: let's have let's take a risk, let's apply for it.

412
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Speaker 7: See if we get it. If so, let's figger it out.

413
00:19:26,560 --> 00:19:29,680
Speaker 7: If not, cool, keep it pushing. So I pitched it

414
00:19:31,000 --> 00:19:34,119
Speaker 7: and at that point I knew it's like, wait, a minute.

415
00:19:34,160 --> 00:19:36,640
Speaker 7: I just created six hundred thousand dollars just from my

416
00:19:36,680 --> 00:19:40,680
Speaker 7: mind with a developer that does this for real, so I.

417
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Speaker 4: Cannot do it.

418
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Speaker 7: I was probably like twenty four, twenty five maybe, so

419
00:19:45,080 --> 00:19:47,360
Speaker 7: that was the first time I actually knew. Shortly thereafter

420
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Speaker 7: I actually took a job. It was very intentional.

421
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Speaker 5: So at twenty four you got the six hundred.

422
00:19:52,200 --> 00:19:53,560
Speaker 4: Nah, that never went through.

423
00:19:53,560 --> 00:19:55,280
Speaker 7: It never word, that never worked out, but they agreed

424
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Speaker 7: to it. But they agreed to it, and that's all

425
00:19:56,720 --> 00:19:58,600
Speaker 7: I needed to know that I can do possible. It

426
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Speaker 7: was possible at that point. I'm a developer. Now, you

427
00:20:02,080 --> 00:20:05,600
Speaker 7: ain't nobody taking this from me. So I ended up

428
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Speaker 7: getting a job surely there. I didn't get that money

429
00:20:08,240 --> 00:20:10,280
Speaker 7: was running low. Yeah, I had the you know, four

430
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Speaker 7: unit things like that.

431
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Speaker 4: That was fine.

432
00:20:12,040 --> 00:20:15,000
Speaker 7: But I got a job working at a CDFI, A

433
00:20:15,040 --> 00:20:17,960
Speaker 7: real job, A real job, yeah, real job. What's a

434
00:20:18,040 --> 00:20:21,480
Speaker 7: cd A cd OFFI is a community development financial institution.

435
00:20:21,560 --> 00:20:22,919
Speaker 3: Oh yeah, we we just learned about that.

436
00:20:23,080 --> 00:20:24,880
Speaker 4: Yeah, sorry about I'm slow.

437
00:20:24,920 --> 00:20:25,680
Speaker 3: I'm a slow learner.

438
00:20:26,160 --> 00:20:28,520
Speaker 5: Yeah, I think I heard there was a young lady.

439
00:20:30,240 --> 00:20:32,080
Speaker 2: There was a young lady here who was talking just

440
00:20:32,119 --> 00:20:35,240
Speaker 2: about the CDFIs, right, so bright.

441
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Speaker 4: Woman, Yeah, shout out to the bright woman.

442
00:20:38,960 --> 00:20:42,800
Speaker 7: Uh so yeah, I worked. I ended up getting a job.

443
00:20:42,880 --> 00:20:45,240
Speaker 7: It was actually half time for two CDFIs. I was

444
00:20:45,280 --> 00:20:46,840
Speaker 7: the only person in the country to do this. But

445
00:20:47,680 --> 00:20:50,480
Speaker 7: I worked for Ford Community Investments. They were a mission

446
00:20:50,520 --> 00:20:55,439
Speaker 7: based community lender that provided loans to small businesses and

447
00:20:55,480 --> 00:20:59,160
Speaker 7: then a community reinvestment fund. They were a national nonprofit

448
00:20:59,440 --> 00:21:01,480
Speaker 7: that did this same thing in a different way. So

449
00:21:01,560 --> 00:21:04,199
Speaker 7: one was a state based focused on Wisconsin, other one

450
00:21:04,320 --> 00:21:07,760
Speaker 7: was national, also targeting Milwaukee. So I worked at home.

451
00:21:07,840 --> 00:21:09,480
Speaker 7: I worked remotely, so I was really more of a

452
00:21:09,560 --> 00:21:12,560
Speaker 7: contractor for real. I worked remotely from home for both

453
00:21:12,560 --> 00:21:16,679
Speaker 7: of these companies, really going out doing technical assistance with

454
00:21:16,720 --> 00:21:21,880
Speaker 7: businesses and understanding what the gaps were that why aren't

455
00:21:21,880 --> 00:21:24,359
Speaker 7: we giving this money out like I had access to.

456
00:21:25,200 --> 00:21:28,399
Speaker 7: One of them was from fifty thousand to five million

457
00:21:28,440 --> 00:21:32,000
Speaker 7: dollars in lending. That was my lending capacity personally, I

458
00:21:32,000 --> 00:21:33,600
Speaker 7: can give that out to businesses.

459
00:21:33,600 --> 00:21:34,760
Speaker 4: So I was like, oh, this is great.

460
00:21:34,920 --> 00:21:36,520
Speaker 7: It was very much so aligned with my vision and

461
00:21:36,560 --> 00:21:38,439
Speaker 7: my mission, and I was able to sit in on

462
00:21:38,480 --> 00:21:41,480
Speaker 7: the credit committees of these different companies. So when it

463
00:21:41,520 --> 00:21:44,959
Speaker 7: came to like applying for loans and applying for some

464
00:21:45,000 --> 00:21:47,080
Speaker 7: of these things. I knew exactly what they were looking

465
00:21:47,119 --> 00:21:48,560
Speaker 7: for because I was sitting in there, so I worked

466
00:21:48,600 --> 00:21:49,399
Speaker 7: there for two years.

467
00:21:50,400 --> 00:21:52,680
Speaker 5: What type of clientele or clients.

468
00:21:52,320 --> 00:21:57,000
Speaker 7: To what you're seeing primarily business for Community Reinvestment CRF.

469
00:21:57,000 --> 00:21:59,919
Speaker 7: It was business clients. So I was looking at bars,

470
00:22:00,119 --> 00:22:04,119
Speaker 7: I was looking at pubs, I was looking at cleaning companies,

471
00:22:04,880 --> 00:22:07,520
Speaker 7: I was looking at It was a full gamut. And

472
00:22:07,560 --> 00:22:10,560
Speaker 7: the Ford Community Investments it was more so real estate

473
00:22:10,600 --> 00:22:11,880
Speaker 7: bass for real so.

474
00:22:11,920 --> 00:22:14,399
Speaker 3: Use on the inside of the of the institution, and

475
00:22:14,440 --> 00:22:17,160
Speaker 3: you knew what they were looking for to lend money.

476
00:22:17,800 --> 00:22:20,520
Speaker 3: You used that when you left.

477
00:22:20,960 --> 00:22:23,200
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526
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Speaker 3: To get them to lend you money because you already

527
00:25:12,840 --> 00:25:13,520
Speaker 3: know what they're looking for.

528
00:25:14,800 --> 00:25:17,359
Speaker 4: It didn't really work out that way. It didn't idea

529
00:25:17,640 --> 00:25:18,240
Speaker 4: that was the idea.

530
00:25:18,400 --> 00:25:20,400
Speaker 7: But now I know how all of the groups worked

531
00:25:20,400 --> 00:25:22,439
Speaker 7: the same, So yeah, I used that same tactic to

532
00:25:22,520 --> 00:25:23,520
Speaker 7: get all of the rest of it.

533
00:25:23,840 --> 00:25:27,200
Speaker 3: What were they looking for, like what made you attractive?

534
00:25:27,280 --> 00:25:29,120
Speaker 3: Not you. I'm just saying, like, we'll make somebody attractive

535
00:25:29,160 --> 00:25:29,600
Speaker 3: to somebody.

536
00:25:29,720 --> 00:25:33,080
Speaker 7: Honestly, it's a huge gap. So I thought that I

537
00:25:33,119 --> 00:25:34,800
Speaker 7: would be given out a ton of money. But and

538
00:25:34,840 --> 00:25:36,639
Speaker 7: I had access to the capitol, but I couldn't give

539
00:25:36,640 --> 00:25:39,119
Speaker 7: it out. What they were looking for. It was a disconnect.

540
00:25:39,119 --> 00:25:42,280
Speaker 7: It's like our people are here and their money is here.

541
00:25:43,440 --> 00:25:44,880
Speaker 7: And I felt like it was my duty to kind

542
00:25:44,880 --> 00:25:47,040
Speaker 7: of like bridge that gap. But that gap so they

543
00:25:47,040 --> 00:25:51,240
Speaker 7: were looking for honestly, pretty traditional things, you know. It's

544
00:25:51,320 --> 00:25:56,479
Speaker 7: like reserves, some serve some you know may or may

545
00:25:56,560 --> 00:25:58,320
Speaker 7: not do a startup, so you might have to have

546
00:25:58,320 --> 00:26:02,200
Speaker 7: some income. Collateral is the biggest thing in our community.

547
00:26:02,640 --> 00:26:05,160
Speaker 7: That was that's the biggest gap. We don't have collateral.

548
00:26:05,359 --> 00:26:08,840
Speaker 7: If you think about history, a lot of businesses were

549
00:26:08,840 --> 00:26:12,160
Speaker 7: funded because people owned real estate. Right you were able

550
00:26:12,160 --> 00:26:16,879
Speaker 7: to get business loans because you can put your house up. Millennials,

551
00:26:17,200 --> 00:26:21,600
Speaker 7: we I'm a millennium houses you know, So that that

552
00:26:21,600 --> 00:26:24,000
Speaker 7: that is a challenge. That is a shift in the

553
00:26:24,040 --> 00:26:26,840
Speaker 7: marketplace that I don't think has been identified yet. So

554
00:26:27,400 --> 00:26:29,840
Speaker 7: we all of our people are like, yo, we don't

555
00:26:29,840 --> 00:26:31,440
Speaker 7: have any money. We don't have any money. We don't

556
00:26:31,440 --> 00:26:33,640
Speaker 7: have any money. There's such an access to capital gap,

557
00:26:33,640 --> 00:26:36,400
Speaker 7: which there is. But on the other side, they're streaming, Oh,

558
00:26:36,400 --> 00:26:38,159
Speaker 7: we have so much money and we can't deploy it.

559
00:26:39,720 --> 00:26:41,919
Speaker 7: That's what happens every single time you talk to anyone

560
00:26:41,960 --> 00:26:43,600
Speaker 7: in that industry, and that's what they're going to tell you.

561
00:26:44,720 --> 00:26:47,280
Speaker 3: All right, all right that so now we're going to

562
00:26:47,359 --> 00:26:49,040
Speaker 3: go into the next seven. We're going to talk about

563
00:26:50,000 --> 00:26:53,359
Speaker 3: like your journey into developing, like how you find a deal,

564
00:26:53,600 --> 00:26:56,800
Speaker 3: like all of the one O one on on the

565
00:26:56,920 --> 00:26:58,640
Speaker 3: on the whole, yeah, the whole on the whole deal.

566
00:26:59,160 --> 00:27:01,000
Speaker 3: That next, all right, so now we now we're going

567
00:27:01,040 --> 00:27:04,360
Speaker 3: to ask a few questions that I think people will

568
00:27:04,400 --> 00:27:06,440
Speaker 3: be interested in as far as you know. One thing

569
00:27:06,440 --> 00:27:09,119
Speaker 3: with Eyls, we like we talk about different topics that

570
00:27:09,160 --> 00:27:11,159
Speaker 3: nobody really knows, is like you don't really have an

571
00:27:11,240 --> 00:27:14,320
Speaker 3: education on this stuff. So as a real estate developer, right,

572
00:27:16,400 --> 00:27:20,239
Speaker 3: so you you do the financial blueprint, but now you

573
00:27:20,240 --> 00:27:22,680
Speaker 3: actually have to develop it. But development costs a lot

574
00:27:22,680 --> 00:27:27,679
Speaker 3: of money to scale these projects, right, So how like,

575
00:27:28,280 --> 00:27:31,239
Speaker 3: how does that part of it work as far as

576
00:27:31,280 --> 00:27:36,480
Speaker 3: the construction aspect of it and actually developed it because.

577
00:27:36,400 --> 00:27:38,920
Speaker 2: In my mind I'm thinking of development. Yeah, you're making

578
00:27:38,920 --> 00:27:41,560
Speaker 2: the financial blueprint, but I'm like, you're not even seeing

579
00:27:41,600 --> 00:27:45,800
Speaker 2: a physical output before you start or do you know,

580
00:27:45,960 --> 00:27:46,480
Speaker 2: like what you.

581
00:27:46,480 --> 00:27:48,840
Speaker 5: Want this space to look like going in?

582
00:27:49,119 --> 00:27:49,800
Speaker 4: Yeah? You create?

583
00:27:50,000 --> 00:27:52,600
Speaker 7: You created, So the developer isn't want to creates division

584
00:27:52,600 --> 00:27:55,560
Speaker 7: in his mind, Very similar to a director of a movie, righty,

585
00:27:55,840 --> 00:27:59,640
Speaker 7: Like they don't they don't. They're not the actor, they're

586
00:27:59,680 --> 00:28:04,520
Speaker 7: not the and they're not the scriptwriter oftentimes, but they

587
00:28:04,560 --> 00:28:06,400
Speaker 7: bring it all to fruition and this is the way

588
00:28:06,400 --> 00:28:07,040
Speaker 7: that it needs to go.

589
00:28:07,160 --> 00:28:09,359
Speaker 4: So a developer, let's rewind a little bit.

590
00:28:09,760 --> 00:28:15,800
Speaker 7: Real estate development is a business process that takes land

591
00:28:16,520 --> 00:28:18,199
Speaker 7: and you put real estate on it.

592
00:28:18,240 --> 00:28:20,080
Speaker 4: So very simple. There go a little deeper.

593
00:28:20,119 --> 00:28:22,600
Speaker 7: So I'm a commercial real estate developer, so I'm pretty

594
00:28:22,640 --> 00:28:25,880
Speaker 7: much doing that at just a larger scale. And there's

595
00:28:25,960 --> 00:28:29,640
Speaker 7: different sections of it, right, So I guess let's say

596
00:28:29,680 --> 00:28:30,000
Speaker 7: break it.

597
00:28:29,960 --> 00:28:30,840
Speaker 4: Down into three phases.

598
00:28:30,880 --> 00:28:34,280
Speaker 7: There's a pre development phase where you do the design

599
00:28:34,800 --> 00:28:36,800
Speaker 7: and you get the financials in order and you talk

600
00:28:36,840 --> 00:28:39,000
Speaker 7: through some of those things. The second phase is the

601
00:28:39,000 --> 00:28:41,560
Speaker 7: construction phase. To your point, that's when you go and

602
00:28:41,600 --> 00:28:45,160
Speaker 7: you're actually building the project and you're managing the budget

603
00:28:45,200 --> 00:28:47,400
Speaker 7: to make sure that this is on time and on budget,

604
00:28:47,400 --> 00:28:50,959
Speaker 7: because if the cost of your development is more than

605
00:28:50,960 --> 00:28:54,280
Speaker 7: what you anticipated, then when the recession hit, that's kind

606
00:28:54,280 --> 00:28:56,720
Speaker 7: of what happened, Like you saw buildings that were halfway

607
00:28:56,760 --> 00:29:00,000
Speaker 7: developed and people stepped away because there was not an

608
00:29:00,040 --> 00:29:02,920
Speaker 7: enough money to continue to the project, complete the project.

609
00:29:03,440 --> 00:29:06,640
Speaker 7: And then the last phase is operation. It's a pre development, construction,

610
00:29:06,720 --> 00:29:11,080
Speaker 7: and operation. A developer pretty much runs that entire phase

611
00:29:11,720 --> 00:29:14,920
Speaker 7: from beginning to end. So let's break them down. Pre

612
00:29:14,920 --> 00:29:20,200
Speaker 7: development phase you have I typically start off with zoning

613
00:29:20,240 --> 00:29:22,880
Speaker 7: and entitlement. It's like, okay, I have a piece of

614
00:29:22,920 --> 00:29:26,000
Speaker 7: land here. How large is it? Let's say it's an

615
00:29:26,000 --> 00:29:29,280
Speaker 7: acre of land. Okay, based on this acre, what is

616
00:29:29,280 --> 00:29:31,360
Speaker 7: its zone for? What can I do here? My base

617
00:29:31,480 --> 00:29:34,320
Speaker 7: is typically multifamily, so it's like, okay, how many units

618
00:29:34,320 --> 00:29:37,280
Speaker 7: can I put on here? Let's say you know an

619
00:29:37,280 --> 00:29:42,080
Speaker 7: acre is forty three thousand square feet depending on where

620
00:29:42,080 --> 00:29:45,240
Speaker 7: you are. They based zoning off of Florida area ratio.

621
00:29:46,480 --> 00:29:49,560
Speaker 7: Set this thing called FAR. So let's say it's two

622
00:29:49,640 --> 00:29:54,560
Speaker 7: times FAR, so you can put if it's an FR

623
00:29:54,600 --> 00:29:59,040
Speaker 7: of two, you can put a eight six thousand square

624
00:29:59,080 --> 00:30:03,120
Speaker 7: foot building on this parcel. And then you reverse engineer

625
00:30:03,200 --> 00:30:05,320
Speaker 7: how many units you can fit there, So eighty two

626
00:30:05,320 --> 00:30:07,560
Speaker 7: thousand score fee. Depending on the unit side, If they're

627
00:30:07,600 --> 00:30:10,080
Speaker 7: wanting two bedrooms, you may be able to get ninety units.

628
00:30:10,280 --> 00:30:12,560
Speaker 7: If they're you know, three and four bedrooms, you may

629
00:30:12,600 --> 00:30:16,440
Speaker 7: be able to get sixty units. And then based on

630
00:30:16,520 --> 00:30:20,520
Speaker 7: the program, you create a vision around what is attainable

631
00:30:20,520 --> 00:30:22,640
Speaker 7: for the site. So I start with the zoning and

632
00:30:22,640 --> 00:30:25,600
Speaker 7: it's like, okay, yeah, what can I do? And then

633
00:30:25,680 --> 00:30:29,600
Speaker 7: based on the zoning, I create a financial model and

634
00:30:29,640 --> 00:30:31,200
Speaker 7: dig a little deeper in. And that's when I reach

635
00:30:31,240 --> 00:30:33,400
Speaker 7: out to consultants to do some of the other work.

636
00:30:33,680 --> 00:30:36,920
Speaker 7: It's like, hey, architects, I want to put seventy units

637
00:30:37,000 --> 00:30:37,360
Speaker 7: right here?

638
00:30:37,960 --> 00:30:40,160
Speaker 4: Can I do that? What does that look like? You know?

639
00:30:41,520 --> 00:30:44,360
Speaker 7: Can I do underground parking here? Can I have surface parking?

640
00:30:44,480 --> 00:30:47,040
Speaker 7: How many stars can I fit? And that kind of

641
00:30:48,000 --> 00:30:50,920
Speaker 7: changes the iteration of that financial model that I was

642
00:30:50,960 --> 00:30:51,320
Speaker 7: working on.

643
00:30:51,360 --> 00:30:52,640
Speaker 4: Okay, let me change itself a little.

644
00:30:52,640 --> 00:30:55,000
Speaker 5: How long does that First, that preprocess take.

645
00:30:54,880 --> 00:30:58,840
Speaker 7: For you no time for real at this point, a

646
00:30:58,880 --> 00:31:01,320
Speaker 7: couple of hours, a couple hours, wow.

647
00:31:01,520 --> 00:31:03,760
Speaker 3: So's and then the third second, third one is the

648
00:31:03,800 --> 00:31:05,320
Speaker 3: actual development, right construction.

649
00:31:05,880 --> 00:31:08,680
Speaker 7: Second one is constructed, so we're not even in construction yet.

650
00:31:08,720 --> 00:31:12,200
Speaker 7: So that's that's early, early, initial, just pre pre and

651
00:31:12,240 --> 00:31:13,760
Speaker 7: then what you do is like okay, I think I'm

652
00:31:13,800 --> 00:31:16,320
Speaker 7: onto something, and then you go get the site under control,

653
00:31:16,760 --> 00:31:18,120
Speaker 7: so you reach out to the land owner.

654
00:31:18,280 --> 00:31:20,560
Speaker 4: Is it available, is it private? Is it public?

655
00:31:20,680 --> 00:31:23,400
Speaker 7: Is it If it's public land, sometime they have RFPs

656
00:31:23,400 --> 00:31:25,840
Speaker 7: And that's what I was awarded with the forty one million.

657
00:31:25,880 --> 00:31:27,680
Speaker 7: I was awarded that land to now.

658
00:31:27,600 --> 00:31:29,680
Speaker 5: Develop it by the state or the city.

659
00:31:29,800 --> 00:31:32,120
Speaker 7: That was city owned, but sometimes it's state owned, sometimes

660
00:31:32,120 --> 00:31:33,520
Speaker 7: it's city, sometime it's county.

661
00:31:33,760 --> 00:31:34,280
Speaker 4: It varies.

662
00:31:35,160 --> 00:31:37,360
Speaker 7: So that was public, that's a public private partnership in

663
00:31:37,360 --> 00:31:41,720
Speaker 7: that way, but sometimes it's private. So when it's private land,

664
00:31:41,880 --> 00:31:45,000
Speaker 7: that's when you it's a little more difficult.

665
00:31:45,560 --> 00:31:47,480
Speaker 4: Ah, yeah, it's a little more difficult.

666
00:31:47,080 --> 00:31:51,280
Speaker 7: Because people value their land the way that they value

667
00:31:51,320 --> 00:31:53,600
Speaker 7: their land. It's no different from a property. If you

668
00:31:53,680 --> 00:31:56,240
Speaker 7: own a home, you may feel like your home is

669
00:31:56,240 --> 00:31:59,440
Speaker 7: worth five hundred thousand dollars. The appraisal may say your

670
00:31:59,440 --> 00:32:03,640
Speaker 7: home is worth two hundred or one hundred. So when

671
00:32:03,680 --> 00:32:05,520
Speaker 7: you go to that individual and say, hey, this is

672
00:32:05,560 --> 00:32:08,600
Speaker 7: my plan for this site, y'all have to have some

673
00:32:08,840 --> 00:32:11,520
Speaker 7: level of common ground to make sure that this works,

674
00:32:11,760 --> 00:32:14,480
Speaker 7: because if they want five times your number, it's not

675
00:32:14,520 --> 00:32:17,680
Speaker 7: feasible you move on. That vision can't come to fruition

676
00:32:17,760 --> 00:32:21,320
Speaker 7: because this is not a roadblock. And then once once

677
00:32:21,360 --> 00:32:23,360
Speaker 7: you then okay, yeah, I think this will work around

678
00:32:23,360 --> 00:32:23,840
Speaker 7: this price.

679
00:32:24,160 --> 00:32:26,840
Speaker 4: I'll give you X for it. You want X for it? Okay.

680
00:32:26,880 --> 00:32:31,680
Speaker 7: What's the timing in DC? I mean typically you gotta

681
00:32:31,680 --> 00:32:33,880
Speaker 7: have a thirty day close, sixty day close, like a

682
00:32:33,960 --> 00:32:37,480
Speaker 7: quick no contingencies, no nothing. In Wisconsin, I could you know,

683
00:32:37,560 --> 00:32:40,479
Speaker 7: sometimes do a year and a half without having to

684
00:32:40,560 --> 00:32:43,480
Speaker 7: close on the financing. And by close, I mean actually

685
00:32:43,520 --> 00:32:46,680
Speaker 7: pay for the land. You pay for the land typically

686
00:32:47,120 --> 00:32:53,480
Speaker 7: when your financial at construction start. So when you close

687
00:32:53,520 --> 00:32:55,520
Speaker 7: on all your finances, I got every all my ducks

688
00:32:55,520 --> 00:32:58,160
Speaker 7: in a row. It all comes to the table at

689
00:32:58,200 --> 00:33:00,440
Speaker 7: the same time and it goes out to the various parties,

690
00:33:00,520 --> 00:33:02,960
Speaker 7: one of those parties being the land owner. They could

691
00:33:03,000 --> 00:33:05,600
Speaker 7: walk away. I now purchase it. I now can start construction,

692
00:33:05,920 --> 00:33:07,360
Speaker 7: which is now phase two.

693
00:33:07,600 --> 00:33:09,560
Speaker 2: So when you're in that phase and you try to

694
00:33:09,560 --> 00:33:11,520
Speaker 2: get the land, what's the bidding process?

695
00:33:11,600 --> 00:33:11,719
Speaker 5: Right?

696
00:33:11,720 --> 00:33:15,400
Speaker 2: So you wore a rewarded, a warded all warded the land.

697
00:33:16,280 --> 00:33:18,160
Speaker 5: What kind of explained what that means. But what's the

698
00:33:18,480 --> 00:33:19,600
Speaker 5: process of bidding for it?

699
00:33:19,720 --> 00:33:23,760
Speaker 4: Yeap too. So on the private side, no process. It's

700
00:33:23,760 --> 00:33:25,560
Speaker 4: just one to one Can I buy this from you

701
00:33:25,640 --> 00:33:26,000
Speaker 4: or no?

702
00:33:26,960 --> 00:33:29,480
Speaker 7: And I've been told no because of my age and

703
00:33:29,520 --> 00:33:31,120
Speaker 7: my color before, to be honest.

704
00:33:32,360 --> 00:33:33,720
Speaker 4: But on the public side.

705
00:33:33,840 --> 00:33:39,160
Speaker 7: They typically put out a list of priorities that they want.

706
00:33:39,600 --> 00:33:42,720
Speaker 7: The most recent one, my eighty nine unit was a

707
00:33:42,720 --> 00:33:47,000
Speaker 7: public public partnership and they just want to redevelopment of

708
00:33:47,000 --> 00:33:49,719
Speaker 7: a blighted site. It was half a mile away from

709
00:33:49,760 --> 00:33:51,200
Speaker 7: where I was raised and I wanted to develop it.

710
00:33:51,240 --> 00:33:52,920
Speaker 7: So I put eighty nine units with Befoda Bahausan in

711
00:33:52,960 --> 00:33:56,000
Speaker 7: my hood. That's what I did, and they agree with

712
00:33:56,040 --> 00:33:59,040
Speaker 7: my plan. It wasn't very competitive and that was that,

713
00:33:59,160 --> 00:34:00,880
Speaker 7: But there are other ones like the one in Madison

714
00:34:00,920 --> 00:34:04,360
Speaker 7: and a just one. It was very very competitive. They

715
00:34:04,400 --> 00:34:08,160
Speaker 7: had multiple rounds of RFPs. What's the RFP again, request

716
00:34:08,239 --> 00:34:11,000
Speaker 7: for a proposal. So that's when the city says, hey,

717
00:34:11,480 --> 00:34:14,040
Speaker 7: these these are our priorities for this site.

718
00:34:14,080 --> 00:34:15,880
Speaker 4: We own in site. We don't want to own the site.

719
00:34:15,920 --> 00:34:18,439
Speaker 7: Cities often don't want to own sites because they want

720
00:34:18,440 --> 00:34:21,280
Speaker 7: to benefit from the tax revenue from it.

721
00:34:21,280 --> 00:34:23,600
Speaker 4: It's not in their best interest to pay the upkeep.

722
00:34:23,640 --> 00:34:26,560
Speaker 7: It's a lot of risk associated with owning land, so

723
00:34:26,680 --> 00:34:30,520
Speaker 7: cities often try to partner and sell and you know,

724
00:34:30,680 --> 00:34:33,640
Speaker 7: do things like that. So that this priority specifically, they

725
00:34:33,640 --> 00:34:36,719
Speaker 7: wanted a grocery store. The site right next door is

726
00:34:36,760 --> 00:34:39,880
Speaker 7: a Pick and Save Roundings was just acquired by Kroger

727
00:34:40,480 --> 00:34:43,040
Speaker 7: and they're shutting that Picking Save down, So now this

728
00:34:43,080 --> 00:34:46,319
Speaker 7: area is about to be a food desert. So the

729
00:34:46,360 --> 00:34:49,640
Speaker 7: city was like, okay, in order for us to preserve

730
00:34:50,320 --> 00:34:52,759
Speaker 7: some level of grocery in this area, we need to

731
00:34:52,760 --> 00:34:55,520
Speaker 7: put out an RFP. So that was their number one priority,

732
00:34:55,520 --> 00:34:59,560
Speaker 7: a grocery store. Second was affordable housing and some level

733
00:34:59,560 --> 00:35:02,799
Speaker 7: of housing and density. So I put together the best

734
00:35:02,840 --> 00:35:05,120
Speaker 7: plan to bring that grocery store in the quickest amount

735
00:35:05,120 --> 00:35:05,359
Speaker 7: of time.

736
00:35:05,560 --> 00:35:09,120
Speaker 3: So, all right, they need a grocery store. They're identified,

737
00:35:09,120 --> 00:35:11,799
Speaker 3: they need a grocery store, won't they just reach out

738
00:35:11,800 --> 00:35:14,000
Speaker 3: the grocery stores directly, Why didn't they developer?

739
00:35:14,120 --> 00:35:15,080
Speaker 4: They did.

740
00:35:15,480 --> 00:35:18,480
Speaker 7: Grocery stores often don't develop their own land either, they

741
00:35:18,560 --> 00:35:26,120
Speaker 7: least you know, so a developer developer, developer manages that process.

742
00:35:26,520 --> 00:35:29,080
Speaker 4: Businesses don't typically manage that process. You know.

743
00:35:29,080 --> 00:35:32,960
Speaker 7: If you think about Apple, Apple isn't going to like

744
00:35:33,320 --> 00:35:37,319
Speaker 7: build their own headquarters. They're going to hire some consultants

745
00:35:37,440 --> 00:35:39,680
Speaker 7: or a developer to build it for them. So that's

746
00:35:39,800 --> 00:35:42,200
Speaker 7: an RFP can be in that way too. So that said,

747
00:35:42,320 --> 00:35:44,400
Speaker 7: it's of interest for them to align themselves with a

748
00:35:44,440 --> 00:35:46,680
Speaker 7: developer who has the capacity to do this because it's

749
00:35:46,719 --> 00:35:50,440
Speaker 7: not something that just easily can be done, got it.

750
00:35:50,480 --> 00:35:51,399
Speaker 4: They can't just do it.

751
00:35:51,480 --> 00:35:54,960
Speaker 3: So phase two, the construction phase can talk about that.

752
00:35:55,200 --> 00:35:58,360
Speaker 7: Yeah, construction, So each each phase is a little less risky.

753
00:35:59,000 --> 00:36:02,239
Speaker 7: So pre development FA is a ton of risk. I

754
00:36:02,280 --> 00:36:04,239
Speaker 7: rewind a little bit, then I go into it. It's

755
00:36:04,280 --> 00:36:07,600
Speaker 7: a ton of risk because you're paying a ton of

756
00:36:07,840 --> 00:36:11,960
Speaker 7: consultants to do work. You're doing environmental assessments a phase

757
00:36:11,960 --> 00:36:15,200
Speaker 7: one in a phase two ten that could be ten

758
00:36:15,239 --> 00:36:16,359
Speaker 7: thousand dollars between the two.

759
00:36:16,360 --> 00:36:18,760
Speaker 5: Environmental assess that when they checking the dirt to see.

760
00:36:18,719 --> 00:36:21,920
Speaker 7: Check yeah, and all that well, yeah, so environmental, that's

761
00:36:22,000 --> 00:36:24,480
Speaker 7: one where they're seeing if it's contaminated, has it been

762
00:36:24,520 --> 00:36:29,520
Speaker 7: a you know, was this a gas station historically? Is

763
00:36:29,560 --> 00:36:31,920
Speaker 7: this up to code because you don't want those sols

764
00:36:31,920 --> 00:36:33,440
Speaker 7: to rise and people get sick and die and all

765
00:36:33,440 --> 00:36:36,440
Speaker 7: that stuff. So you pay for environmental consultants. You pay

766
00:36:36,440 --> 00:36:40,520
Speaker 7: for civil consultants which put together the design of the

767
00:36:40,520 --> 00:36:43,360
Speaker 7: building and make sure this is secure. Okay, architects design it,

768
00:36:43,560 --> 00:36:46,400
Speaker 7: but the civil engineers are saying this will be sturdy

769
00:36:46,440 --> 00:36:48,959
Speaker 7: for X amount of time, we won't have settlement, et cetera.

770
00:36:49,200 --> 00:36:52,000
Speaker 7: And then you hire geotechnical consultants to test the soil

771
00:36:52,320 --> 00:36:55,520
Speaker 7: and to see is a soil okay, you know stuff

772
00:36:55,560 --> 00:36:58,240
Speaker 7: like that, so the soil is more so like for settlement,

773
00:36:58,440 --> 00:37:01,160
Speaker 7: civil is self structure, jevity and things like that. So

774
00:37:01,600 --> 00:37:03,360
Speaker 7: all of those people you've got to hire prior to

775
00:37:04,200 --> 00:37:09,279
Speaker 7: getting to construction. Who's that the developer is so yeah,

776
00:37:09,400 --> 00:37:12,839
Speaker 7: the great quest walk is uh yeah, but you can

777
00:37:12,880 --> 00:37:14,440
Speaker 7: you can get once you have a plan together, you

778
00:37:14,480 --> 00:37:20,759
Speaker 7: can get loans. In theory they can get loans. We

779
00:37:20,800 --> 00:37:23,400
Speaker 7: can't get loans really, they can get loans. So I

780
00:37:23,480 --> 00:37:25,799
Speaker 7: partner with the people that can get the loans and

781
00:37:25,920 --> 00:37:27,440
Speaker 7: try to I'll go into that in a second. But

782
00:37:27,800 --> 00:37:30,960
Speaker 7: you pay for all of these consultants, even architects. All

783
00:37:30,960 --> 00:37:33,919
Speaker 7: the architectural designs are pretty renderings and all that slice. Yeah,

784
00:37:34,080 --> 00:37:37,800
Speaker 7: you know that's a couple hundred thousand easy. So before

785
00:37:37,800 --> 00:37:39,440
Speaker 7: you get to construction.

786
00:37:39,120 --> 00:37:43,160
Speaker 3: Are any of these RFPs or like, dude, does it

787
00:37:43,440 --> 00:37:46,880
Speaker 3: ever come into play with the was it MWB minority

788
00:37:46,920 --> 00:37:49,680
Speaker 3: women business? Is it? Because are they like? Do they

789
00:37:49,719 --> 00:37:51,560
Speaker 3: have to have a certain amount of developments that are

790
00:37:51,560 --> 00:37:53,440
Speaker 3: developed by minority developers?

791
00:37:53,480 --> 00:37:56,439
Speaker 4: Is that case? Minority developers is not a thing.

792
00:37:56,680 --> 00:37:57,239
Speaker 3: It's not a thing.

793
00:37:57,280 --> 00:38:00,120
Speaker 7: It's not a minority contractors is a thing. Okay, I

794
00:38:00,120 --> 00:38:03,279
Speaker 7: know the developers is not a thing. So I have

795
00:38:03,360 --> 00:38:07,440
Speaker 7: to in my development counterparts. Yeah, that has I'm an

796
00:38:07,480 --> 00:38:11,120
Speaker 7: anomaly for real. So I have to hire minority women

797
00:38:11,360 --> 00:38:13,520
Speaker 7: veterans and my colleagues have to do the same. My

798
00:38:13,560 --> 00:38:17,160
Speaker 7: counterparts do same. We have to hire them the construction workers.

799
00:38:17,480 --> 00:38:19,120
Speaker 7: Make sure that all of the people that are part

800
00:38:19,120 --> 00:38:23,640
Speaker 7: of his team may be twenty twenty of the total

801
00:38:23,960 --> 00:38:24,560
Speaker 7: the money that.

802
00:38:24,600 --> 00:38:27,560
Speaker 4: Is allocated to the budget has to go towards these groups.

803
00:38:27,840 --> 00:38:31,840
Speaker 7: But there's no structure for me as a developer and

804
00:38:31,960 --> 00:38:36,040
Speaker 7: being black to benefit from that, why not, that's where

805
00:38:36,040 --> 00:38:36,680
Speaker 7: the most money is.

806
00:38:36,719 --> 00:38:41,439
Speaker 3: Has it ever been proposed or no, I've never heard

807
00:38:41,440 --> 00:38:41,719
Speaker 3: of it.

808
00:38:43,200 --> 00:38:44,080
Speaker 4: I'm sure it has.

809
00:38:44,680 --> 00:38:48,040
Speaker 7: Historic Black developers aren't a thing, A lot of them. No,

810
00:38:48,120 --> 00:38:52,680
Speaker 7: it's not a thing because historically banks. We all know

811
00:38:52,719 --> 00:38:55,000
Speaker 7: about red lining. We all know about that. There's a

812
00:38:55,040 --> 00:38:57,040
Speaker 7: book called The Color of Law. Talk about this before,

813
00:38:57,120 --> 00:38:59,719
Speaker 7: but for people that don't know, color a law documented

814
00:38:59,800 --> 00:39:05,360
Speaker 7: the government's effect on communities and the intentionality of segregation.

815
00:39:05,960 --> 00:39:09,640
Speaker 7: So what they did was if a white developer even

816
00:39:09,719 --> 00:39:13,319
Speaker 7: was developing something that allowed a black person to live

817
00:39:13,320 --> 00:39:17,000
Speaker 7: in it, HUD would not ensure it, so the bank

818
00:39:17,040 --> 00:39:20,200
Speaker 7: would not give along. So that was for a white developer.

819
00:39:20,560 --> 00:39:22,880
Speaker 7: So imagine a black developer trying to develop something for

820
00:39:22,960 --> 00:39:26,160
Speaker 7: black people. It wasn't possible. So the marrion Berries of

821
00:39:26,200 --> 00:39:28,920
Speaker 7: the world, and just like H. J. Russell in Atlanta,

822
00:39:29,280 --> 00:39:32,240
Speaker 7: the mayor of Atlanta, the mayor of d C, reached

823
00:39:32,239 --> 00:39:35,000
Speaker 7: out and used their political connections to bring these two

824
00:39:35,040 --> 00:39:37,680
Speaker 7: people up. H J. Russell in Atlanta down peoples in

825
00:39:37,920 --> 00:39:42,200
Speaker 7: d C in order to create an economic engine in

826
00:39:42,239 --> 00:39:44,719
Speaker 7: our community that allowed for growth in a way that

827
00:39:44,880 --> 00:39:49,680
Speaker 7: does not exist. So again that's just not a thing

828
00:39:49,760 --> 00:39:52,880
Speaker 7: at all, and hopefully it can become a thing. But

829
00:39:52,920 --> 00:39:56,160
Speaker 7: there's not enough black developers. I mean, I'm at conferences

830
00:39:56,160 --> 00:39:57,799
Speaker 7: all the time. I go to real estate meet ups

831
00:39:57,800 --> 00:40:03,120
Speaker 7: and everything like that. But oftentimes most most folks are

832
00:40:03,120 --> 00:40:06,440
Speaker 7: investors because it's all we know. Most of the developers

833
00:40:06,480 --> 00:40:09,239
Speaker 7: I know aren't. They don't look like me. Sout out

834
00:40:09,239 --> 00:40:12,439
Speaker 7: to keV Kevin Noule. It's a big bro mind. He's

835
00:40:12,600 --> 00:40:15,919
Speaker 7: killing it in Milwaukee right now, absolutely killing it. He's

836
00:40:15,960 --> 00:40:19,959
Speaker 7: a black developer that is doing his thing. A couple

837
00:40:19,960 --> 00:40:22,000
Speaker 7: of folks out here in DC as well. Dr McKinney

838
00:40:22,000 --> 00:40:25,680
Speaker 7: I really respect. Don Peebles's son is actually doing development

839
00:40:25,680 --> 00:40:27,880
Speaker 7: out of DC as well. So there's some black developers

840
00:40:27,880 --> 00:40:28,680
Speaker 7: like bubbling up.

841
00:40:30,080 --> 00:40:32,800
Speaker 3: But yeah, it's just not How important is political political

842
00:40:32,800 --> 00:40:34,840
Speaker 3: collections connections.

843
00:40:34,840 --> 00:40:38,920
Speaker 7: Depends on where you are. I was saying Wisconsin not

844
00:40:39,040 --> 00:40:43,080
Speaker 7: as much. Wisconsin is a very objective state. If you

845
00:40:43,320 --> 00:40:47,239
Speaker 7: are doing if you are checking these boxes, you can

846
00:40:47,280 --> 00:40:52,520
Speaker 7: move forward in a place like other places. It's not

847
00:40:52,640 --> 00:41:00,520
Speaker 7: that objective. It's a little more subjective. Yeah, yeah, so yeah, I.

848
00:41:00,560 --> 00:41:02,239
Speaker 4: Think we were talking about the construction part.

849
00:41:02,320 --> 00:41:05,520
Speaker 7: Real quick. So you start off trying to predevelopment risk.

850
00:41:05,880 --> 00:41:08,520
Speaker 7: You pay for all of these consultants a couple hundred thousand,

851
00:41:09,960 --> 00:41:12,439
Speaker 7: and then at the closing table. So the benefit of

852
00:41:13,160 --> 00:41:15,080
Speaker 7: getting to the closing table is that all that risk

853
00:41:15,120 --> 00:41:17,600
Speaker 7: is wiped away, so it's all a part of the

854
00:41:17,640 --> 00:41:20,680
Speaker 7: development budget, although you're paying for it before it happens.

855
00:41:21,160 --> 00:41:25,319
Speaker 7: You get refunded once all your money comes in, So

856
00:41:25,440 --> 00:41:27,800
Speaker 7: the three hundred thousand that you had out, the million

857
00:41:27,800 --> 00:41:30,479
Speaker 7: dollars that you had out, all comes back right there.

858
00:41:30,520 --> 00:41:34,040
Speaker 7: So that's a great day. And then what happens in

859
00:41:34,040 --> 00:41:36,960
Speaker 7: the construction phase. You have to mitigate that risk because

860
00:41:38,320 --> 00:41:41,440
Speaker 7: you know people may not come to work, or the

861
00:41:41,840 --> 00:41:45,000
Speaker 7: cost of something may be more expensive, or the design

862
00:41:45,239 --> 00:41:47,959
Speaker 7: wasn't you have to change the design up and.

863
00:41:47,880 --> 00:41:48,400
Speaker 4: Things like that.

864
00:41:48,480 --> 00:41:50,000
Speaker 7: So you have to look out for all of those

865
00:41:50,040 --> 00:41:53,600
Speaker 7: things before you get under construction because when that construction

866
00:41:53,640 --> 00:41:57,480
Speaker 7: budget gets blown up, it's a real thing. And the

867
00:41:57,520 --> 00:42:00,319
Speaker 7: first thing that goes at that point is is your

868
00:42:00,320 --> 00:42:01,080
Speaker 7: developer fee.

869
00:42:02,320 --> 00:42:03,279
Speaker 4: We have to pay for that.

870
00:42:03,400 --> 00:42:06,000
Speaker 7: So we got to mitigate that risk because you can

871
00:42:06,160 --> 00:42:08,759
Speaker 7: get a project done and not make nothing to that point.

872
00:42:08,800 --> 00:42:11,399
Speaker 7: My first project, sixty unit, a fortable housing development twelve

873
00:42:11,400 --> 00:42:15,600
Speaker 7: point six million dollars. I made thirty thousand dollars on Wow,

874
00:42:16,280 --> 00:42:18,480
Speaker 7: three and a half years worth of work. I made

875
00:42:18,480 --> 00:42:19,600
Speaker 7: thirty thousand dollars.

876
00:42:19,920 --> 00:42:20,319
Speaker 4: That was it.

877
00:42:20,440 --> 00:42:22,799
Speaker 3: What kind of insurance do you have to have to

878
00:42:22,880 --> 00:42:24,560
Speaker 3: be protected.

879
00:42:25,680 --> 00:42:27,760
Speaker 4: During construction just as a development?

880
00:42:27,760 --> 00:42:29,919
Speaker 3: I'm like anything you said like you're on the hook, right,

881
00:42:29,960 --> 00:42:32,080
Speaker 3: So I guess you don't want to have to always

882
00:42:32,080 --> 00:42:34,440
Speaker 3: come out of your pocket if something happens to risky tech.

883
00:42:34,800 --> 00:42:35,680
Speaker 3: So there's no insurance.

884
00:42:35,880 --> 00:42:39,279
Speaker 7: No, it's not a thing now, it's just a risky tech.

885
00:42:39,400 --> 00:42:43,200
Speaker 7: So that deal twelve and a half million. My original

886
00:42:43,239 --> 00:42:45,160
Speaker 7: development partner. So this is my first project, this one

887
00:42:45,160 --> 00:42:47,960
Speaker 7: I got in twenty sixteen. My original development partners were

888
00:42:48,040 --> 00:42:50,880
Speaker 7: fully integrated firms. So they did They did development, construction,

889
00:42:50,960 --> 00:42:51,920
Speaker 7: and property management.

890
00:42:52,080 --> 00:42:52,640
Speaker 4: They did it all.

891
00:42:52,719 --> 00:42:54,800
Speaker 7: So I'm like, okay, bet let me partner with these guys,

892
00:42:55,280 --> 00:42:57,920
Speaker 7: let me learn from their different entities. Is all one stop,

893
00:42:58,120 --> 00:43:02,319
Speaker 7: and then we're gonna do it. Uh, moving forward. Once

894
00:43:02,320 --> 00:43:04,920
Speaker 7: we got the award, their board wasn't as comfortable with

895
00:43:04,960 --> 00:43:08,759
Speaker 7: their original terms we agree to. So now you know,

896
00:43:08,840 --> 00:43:11,279
Speaker 7: based on so you have to make guarantees. You make

897
00:43:11,440 --> 00:43:14,880
Speaker 7: financial guarantees. For construction. I guarantee that this will be built,

898
00:43:15,200 --> 00:43:16,520
Speaker 7: even on my own die.

899
00:43:16,920 --> 00:43:17,680
Speaker 4: And you have.

900
00:43:17,760 --> 00:43:22,280
Speaker 7: To spread the risk across a development profile and share

901
00:43:22,280 --> 00:43:25,200
Speaker 7: that with partners. If they're making all the guarantees, they're

902
00:43:25,239 --> 00:43:27,040
Speaker 7: taking all the money. So that's why we get boxed

903
00:43:27,080 --> 00:43:30,800
Speaker 7: out too. Black folks typically don't have the capital to

904
00:43:30,840 --> 00:43:32,839
Speaker 7: say yeah, so.

905
00:43:32,840 --> 00:43:33,680
Speaker 4: We can't make guarantee.

906
00:43:33,719 --> 00:43:35,440
Speaker 3: Yeah, yeah, I like you said that because I have

907
00:43:35,440 --> 00:43:38,680
Speaker 3: a friend who appliented well, who's a developer in New York.

908
00:43:38,719 --> 00:43:39,120
Speaker 4: He's black.

909
00:43:39,320 --> 00:43:41,400
Speaker 3: He always tells me about these personal guarantees that he

910
00:43:41,440 --> 00:43:44,480
Speaker 3: has to put up of like all this money and properties,

911
00:43:44,600 --> 00:43:46,640
Speaker 3: like whenever time they're doing a deal, and it's like

912
00:43:46,680 --> 00:43:48,680
Speaker 3: him and his partner they got through these personal lines

913
00:43:48,719 --> 00:43:49,880
Speaker 3: of guarantees and all that stuff.

914
00:43:49,920 --> 00:43:51,480
Speaker 4: Personal guarantee, personal guarantee.

915
00:43:51,560 --> 00:43:53,840
Speaker 7: And if you don't have the bare minimum for the

916
00:43:53,880 --> 00:43:55,600
Speaker 7: projects that I'm working on, you need a million dollars

917
00:43:55,600 --> 00:43:59,240
Speaker 7: of liquidity like cash and five million dollars in networks

918
00:43:59,239 --> 00:44:01,880
Speaker 7: to start the conversation. That's going to eliminate a lot

919
00:44:01,920 --> 00:44:04,839
Speaker 7: of us. That's why you don't see black developers. That's

920
00:44:04,840 --> 00:44:06,799
Speaker 7: the primary reason why you don't see black developers, because

921
00:44:06,800 --> 00:44:08,200
Speaker 7: you can't get a game, and then when you start

922
00:44:08,239 --> 00:44:09,479
Speaker 7: to you get righted.

923
00:44:09,960 --> 00:44:11,680
Speaker 4: It's like, okay, well you got.

924
00:44:11,560 --> 00:44:15,400
Speaker 7: An idea, you got a concept I want, you can

925
00:44:15,440 --> 00:44:17,680
Speaker 7: get teen and then we just get used as brokers

926
00:44:18,239 --> 00:44:20,400
Speaker 7: to find sites and so they can make more money.

927
00:44:20,600 --> 00:44:22,480
Speaker 7: But I wasn't on that. I'm not on that. So

928
00:44:22,719 --> 00:44:25,160
Speaker 7: I get the majority of my fees at this point,

929
00:44:25,800 --> 00:44:29,719
Speaker 7: at least fifty one percent. I'm gonna get standing on it.

930
00:44:30,840 --> 00:44:32,680
Speaker 4: I'm moving on that.

931
00:44:32,680 --> 00:44:35,759
Speaker 3: That's not so you say upon partnerships, So you partner

932
00:44:35,840 --> 00:44:37,360
Speaker 3: with a lot of people, Yeah, I have to. So

933
00:44:37,480 --> 00:44:39,160
Speaker 3: for a young cat or you're not even young cat,

934
00:44:39,200 --> 00:44:41,279
Speaker 3: anybody just in general, because like you said, it's a

935
00:44:41,280 --> 00:44:44,479
Speaker 3: lot of barriers to get in. Is that the best

936
00:44:44,480 --> 00:44:47,080
Speaker 3: way to go about it is to kind of find

937
00:44:47,080 --> 00:44:52,320
Speaker 3: somebody already that's successful and kind of work with them.

938
00:44:52,680 --> 00:44:54,759
Speaker 4: Yeah. I mean I get reached out to you all

939
00:44:54,800 --> 00:44:55,240
Speaker 4: the time.

940
00:44:56,000 --> 00:44:58,600
Speaker 7: I definitely I want to support everybody, but realistically I

941
00:44:58,640 --> 00:45:02,799
Speaker 7: just can't. It's capacity thing. So that said, I think

942
00:45:02,800 --> 00:45:04,840
Speaker 7: the best way is to create value. You have to

943
00:45:04,880 --> 00:45:09,160
Speaker 7: create value. If you're not creating value, then you're just there.

944
00:45:10,239 --> 00:45:12,960
Speaker 7: If if you want to work with me, just like

945
00:45:13,040 --> 00:45:15,520
Speaker 7: if I want to work with them. Is it worth

946
00:45:15,520 --> 00:45:19,080
Speaker 7: my time to work with you?

947
00:45:19,160 --> 00:45:19,239
Speaker 4: Not?

948
00:45:19,440 --> 00:45:21,640
Speaker 3: If you bring anything to bring, I could do it

949
00:45:21,680 --> 00:45:23,120
Speaker 3: on my own. I tell people that all the time,

950
00:45:23,160 --> 00:45:26,279
Speaker 3: you gotta it gotta be mutual, and it can't because

951
00:45:26,280 --> 00:45:28,320
Speaker 3: that's more of a charity thing, right, It's like you

952
00:45:28,680 --> 00:45:30,319
Speaker 3: through so much chat as the time and a place

953
00:45:30,360 --> 00:45:33,440
Speaker 3: for that, you know, mentorship, charity. It's not a business partnership.

954
00:45:33,440 --> 00:45:36,040
Speaker 3: Business partnership has it doesn't have to be equal, but

955
00:45:36,080 --> 00:45:37,120
Speaker 3: you have to bring something.

956
00:45:37,160 --> 00:45:38,719
Speaker 4: You got to bring some value.

957
00:45:38,600 --> 00:45:41,200
Speaker 7: Yeah, So if you can create value in real estate

958
00:45:41,880 --> 00:45:44,760
Speaker 7: the way that I did it, I created the financial model,

959
00:45:44,800 --> 00:45:46,759
Speaker 7: I created the vision, and I got the land in

960
00:45:46,840 --> 00:45:49,600
Speaker 7: the contract. That's what that was my control. So if

961
00:45:49,600 --> 00:45:51,960
Speaker 7: I pitched it to anybody, they can't just go get

962
00:45:51,960 --> 00:45:52,279
Speaker 7: this land.

963
00:45:52,280 --> 00:45:55,360
Speaker 4: I already got it. So now it's like I have leverage.

964
00:45:55,800 --> 00:45:58,760
Speaker 7: So if you, as a developer want to or aspiring

965
00:45:58,800 --> 00:46:01,200
Speaker 7: developer want to take that strap, I'll get some land

966
00:46:01,239 --> 00:46:03,239
Speaker 7: on the contract. Put a financial plan that makes sense.

967
00:46:03,280 --> 00:46:05,719
Speaker 7: I talked about language earlier. Showed me the language. This

968
00:46:05,760 --> 00:46:07,640
Speaker 7: is the language that we speak right here. When you

969
00:46:07,640 --> 00:46:11,920
Speaker 7: start speaking that language, we can partner with no problem.

970
00:46:12,239 --> 00:46:17,480
Speaker 6: My graduates from my school being force back drop drop

971
00:46:18,080 --> 00:46:19,759
Speaker 6: Mike drop backdrop.

972
00:46:30,760 --> 00:46:34,440
Speaker 9: An illegal alien from Guatemala charged with raping a child

973
00:46:34,480 --> 00:46:38,279
Speaker 9: in Massachusetts. An MS thirteen gang member from Al Salvador

974
00:46:38,520 --> 00:46:42,640
Speaker 9: accused of murdering a Texas man of Venezuelan charged with

975
00:46:42,719 --> 00:46:46,600
Speaker 9: filming and selling child pornography in Michigan. These are just

976
00:46:46,719 --> 00:46:50,480
Speaker 9: some of the heinous migrant criminals caught because of President

977
00:46:50,520 --> 00:46:54,040
Speaker 9: Donald J. Trump's leadership. I'm Christine Noman, the United States

978
00:46:54,120 --> 00:46:58,920
Speaker 9: Secretary of Homeland Security. Under President Trump, attempted illegal border

979
00:46:58,920 --> 00:47:02,480
Speaker 9: crossings are at the lowest levels ever recorded, and over

980
00:47:02,560 --> 00:47:05,759
Speaker 9: one hundred thousand illegal aliens have been arrested. If you

981
00:47:05,840 --> 00:47:09,680
Speaker 9: are here illegally, your next you will be fined nearly

982
00:47:09,760 --> 00:47:13,799
Speaker 9: one thousand dollars a day, imprisoned, and deported. You will

983
00:47:13,840 --> 00:47:17,480
Speaker 9: never return. But if you register using our CBP home

984
00:47:17,520 --> 00:47:20,880
Speaker 9: app and leave now, you could be allowed to return legally.

985
00:47:21,280 --> 00:47:26,040
Speaker 9: Do what's right. Leave now. Under President Trump, America's laws,

986
00:47:26,200 --> 00:47:28,640
Speaker 9: border and families will be protected.

987
00:47:28,719 --> 00:47:30,840
Speaker 5: Sponsored by the United States Department of Homeland Security,