How to Build Financial Freedom and Independence of Purpose through Strategic Real Estate Investing with Clint Harris

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The financial velocity that we're talking about is how do you break the cycle of trading time for money?
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If you are a high earning income individual, then you have golden handcuffs.
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You have likely fallen into a situation where coming out of med school, you could have saved your way to retirement.
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But you went from not making any money to all of a sudden making a lot of money and you're catching up on getting the house and getting the cars and getting settled.
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And a lot of these people, five, six, seven, eight years into that career, figure out that maybe they don't love it or that they're spending a lot of money and it's hard for them to put themselves back on a track of saving their way to retirement.
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All right, Clint.
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Well, welcome to Will Power.
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I'm so grateful for the audience to get to know you.
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Obviously, our audience is medical professionals and leaders wanting to learn how to increase their income impact and freedom.
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But give us a little background on you first.
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Thanks.
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Will appreciate that.
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I'm excited to be here.
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Appreciate your time today.
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My name is Clint Harris.
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Most importantly, I'm happily married for 14 years with two little boys, six and two.
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We live in Carolina Beach, North Carolina, right outside of Wilmington.
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I spent 16 years in medical sales.
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I'm not a physician, but I was a sales rep implanting pacemakers and defibrillators, so working in surgical sales.
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That is a young man's game.
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Heart problems are not nine to five Monday through Friday.
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And I was getting called, you know, two or three in the morning, up to a couple hours away a couple times a week, and it was uh young man's game, right?
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And so you have two options in that line of work.
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It's got a high ceiling, um, but your options are to save your way to retirement or to create your own off ramp.
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Uh, and for 14 of those 16 years, my wife and I were uh investing in real estate because we were creating our off-ramp from that lifestyle.
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I didn't want to be 60 years old still slinging devices.
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Um we started with single-family homes, we made a lot of mistakes.
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We we started flipping a few properties, we made a few mistakes, but less of them.
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Uh in 2017, we moved to Wilmington for me to take over the medical sales territory.
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And that was the first time we moved into a market that really had um a robust short-term rental market because it was at the beach.
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We started buying small multifamily properties, buying um we have three quadplexes and a duplex that we bought and converted from underperforming long-term properties to short-term Airbnbs.
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Um, that led to building a property management company.
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We still have we had 14 Airbnbs.
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We've recently sold a four-pack, we're down to 10, and we own a property management company with some partners that manages ours and another 75.
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And through that process and a lot of mistakes, I realized that I'd done something wrong for the second time.
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And I built a portfolio specifically focused on financial independence.
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And when I achieved it the second time uh and was replacing my income of what I was making at the hospital, even though I was still doing both, I realized that what we really all are looking for is financial time and location independence combined.
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Because those create an independence of purpose, which is where we go where we want and when we want, we spend our lives in the way that we want, hopefully doing something positive for the people that we care about, for our family, for our community around us, right?
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But that's going to look different for everybody.
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Sure.
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And it was at that point in time that I went back to the drawing board for the third time and um through counsel from wise people that I really looked up to, and being completely burned out on Airbnb short-term rental tenants, uh, we decided to go in the direction of self-storage because it meant renting someone a box of air that had no kitchens and bathrooms in it.
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Right.
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You're not talking about heavy and ten tenant improvements, you're just simplifying that to the more basic, you know, construction.
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That's it.
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We're we're dumbing it way down.
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Uh and from the time that my wife and I had taken small quadplexes and converted them into Airbnbs, that would three to four X the gross potential riddle income of that property.
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And so when the concept of that conversion strategy in storage was introduced to us, it leapt off the page.
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Wow.
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And so with my partners, we started a journey of buying old vacant big box retail buildings like Kmart's grocery stores and warehouses and converting those into climate-controlled storage using syndication to raise capital from investors, most of which are the physicians I used to work with.
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Yeah.
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Uh, and building wealth together as a vehicle.
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And so far, we're at 150 million in assets.
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How many physicians are you partnered with?
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That's a great question.
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We have 160 investors across our different projects.
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It's 120 and then 40 that have just come in recently on a big project that we're working on.
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I would say we actually don't have a ton of the physicians I used to work with, probably a two to three dozen, but a lot of repeat investors.
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So a lot of them are in three, four, five, six deals.
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So that's really helped.
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You know, uh, Rockstar, as you're listening to this, I want to be really clear on something.
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Clint, like the last thing he wanted to do, he's like, the last thing I want to do is pitch this to people.
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The problem with that is this is that your company is gonna be the model for them to learn from.
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So, like, I'm giving you permission to openly talk about your business because my clients, my clients, my my friends who are listening to the show, the rock stars who are tuning in, these are leaders and owners in healthcare.
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Yeah.
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They all struggle with what you said before we hit record, which is that as they continue to get more successful, their time becomes more limited.
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So it's this like paradox of like, how can I get freedom of time and money when my time my time is worth so much money?
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Or or like some people honestly are just struggling to break and break even in their practices.
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So this is huge because um I was recently listening to I forgot which of the sharks on Shark Tank it was, but it was a it was a reel.
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And the guy asked him on a podcast, he said, uh let's say it's Kevin O'Leary.
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He's just like, hey, if you had to start over from scratch, you had a million dollars.
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You have a million dollars, but you have to start your empire over again, where would you start?
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And he said, real estate.
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He said, No question, real estate.
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Clint, why would why would the shark from Shark Tank say that?
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Because for a thousand years, it's created more wealth and generational differences in terms of financial velocities for families and individuals across the country that speak a hundred different less languages.
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Yeah, hundred financial velocity.
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Dig in on that.
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What's what does that term mean?
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Yeah, so that's a great question.
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I mean, how far can you take your capital, right?
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How how if you're getting up like all the all of your listeners, right?
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And because of that, your listener base, let's let's unpack this a little bit.
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What we should talk about today is all the bad stuff about my offerings and syndication.
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Let's just uncover the ugly stuff and then talk about it as a vehicle and why it makes sense for your listeners or why it may not, but either way, why it's a tool that they should have in their tool belt.
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And then be aware of, because I guess the problem when they have such limited time and all they can do is listen to a podcast at the gym or walking.
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I want to create the most value in education.
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So to your point, it may not be for everybody, but this is something they should know about.
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That's why we're here, right?
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So let's get into the part that they need to know and and and cut through a lot of the fluff.
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Love that.
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And uh a lot of what you just said is really valuable because there's something this can be really daunting.
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This is a big subject with a lot to talk about.
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Most syndication and alternative investment strategies came about because of the Jobs Act of 2017.
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So this is really uh still fairly young in its infancy but quickly maturing marketplace.
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Um I think one thing to keep in mind, a conversation I find myself having over and over is the law of a hundred hours, which means that if you have something big, like the topic we're about to get into and you need to learn about that, the law of a hundred hours says that if you spend a hundred hours focusing on that topic, you're gonna know more about that than 95% of the population of the world.
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Sure.
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90 and and that amount is comes down to 18 minutes a day, which is less than the average physician's commute to the hospital.
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Interesting.
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I would just point out if you are on call or if you are a hospitalist or you are driving to your office and you have an 18-minute commute, either nine there and nine back or one way or the other, you have capacity to use that time to know more about this in a year than 95% of the population of the planet.
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Wow.
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And I encourage you to use that time as an investment into yourself.
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The financial velocity that we're talking about is how do you break the cycle of trading time for money?
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If you are a high earning income individual, then you have golden handcuffs.
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You have likely fallen into a situation where coming out of med school, you could have saved your way to retirement.
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But you went from not making any money to all of a sudden making a lot of money and you're catching up on getting the house and getting the cars and getting settled.
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And a lot of these people, five, six, seven, eight years into that career, figure out that maybe they don't love it or that they're spending a lot of money and it's hard for them to put themselves back on a track of saving their way to retirement, especially when inflation is eroding the value of those dollars out the back door faster than they can put them away.
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They're just changing, they're exchanging time for money.
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Like that's the problem, is that you can be exchanging a lot of money for time, but when you're in that stuck mode of exchanging time for money, you're not really a business owner.
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You're self-employed.
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And that's what that's the difference.
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When we can exchange money for money, that's investing, right?
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Investing people and process for money is is actual business ownership.
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So what you're talking about is diversification of how they can invest so that they actually can create time.
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That's right.
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And you made a good point before we started recording of we're, you know, we have to have what we're talking about here is real estate investing, and you have to have three components for anybody to have success.
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And this has been true forever.
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It's time, it's experience, and it's money.
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You don't have to have all three of those things, but you have to have some combination of those three things, which is why it usually is not a great idea for a physician to start making bandit signs that say we buy ugly houses or to start flipping properties.
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Your time is worth more than that.
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Yeah.
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Let somebody else do that.
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Now, if you can partner with somebody where you put in the capital and they're using their time and their experience to execute the project, that likely could make for a good partnership.
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That's what syndication is.
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Syndication is where it's a group of people pooling capital together to take on a project larger than what any one individual could do on their own.
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The benefit for your listener base is that it gives them the opportunity to place capital or money, which is a representation of their store of life energy and time that they likely spent away from people that they love or doing things that they didn't want to do, that capital can be invested with someone else's time and experience to grow.
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And I don't think many people realize that every day you likely drive by multiple syndication offerings.
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Anytime you drive by a hotel, an RV park, a mobile home park, or a car wash, or a vineyard, or a retail strip mall, or a hotel, or you know, anything like that.
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You almost anything can be a syndication offering.
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It's just a group of people that have pooled capital together and are executing a business plan.
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So it's it's very rarely an individual owner.
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Sometimes it is, but usually it's not.
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It's a group of people that have pulled capital together.
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Now the good part of that is that it breaks the cycle of trading time for money.
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The bad part is that there's a lot of opportunity, and with that it's daunting.
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And how do you choose what to invest in or who to invest with?
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Once you're exposed to this marketplace, there's so much, and it can be a risk.
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So I would say, first of all, don't listen to someone like me on a podcast and be like, that guy sounds like he knows what he's talking about, their website looks clean, like boy, everything is checking the boxes.
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This looks good.
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Hey, honey, come look at this.
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What should we invest in self-storage?
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Don't do that.
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That's backwards.
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That's the wrong way to do it.
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So what's the right way?
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What's the right way?
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Will I'm glad you asked.
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No, I'm being serious.
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I'm not trying to, I didn't think you were setting me up.
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I I legitimately am like listening, going, I love it when people I will typically do that as well.
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By the way, I have a company behind this, and when I'm on shows, I'll say, listen, don't hire me if you can do these things, because it really isn't you know this as well as I do, is that if we're just in the business of getting business, then we get the wrong business.
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Yeah.
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And it hurts everybody.
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So it's easier to build trust by just being transparent.
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And then for the people who are gonna be a fit to work with, then it becomes a lot easier to gain that relationship and build success.
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So for you, what if someone is starting from scratch, and I'm a good example.
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I'm a healthcare provider, I have zero knowledge in what you're talking about, uh, apart from some minor businesses that are buildings I've bought that used to be a part of my practices.
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So, how would I get started in this space with understanding what I should do?
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Because obviously I'm not gonna become the expert, but how do I minimize that risk of investing with the right people or companies?
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Well, you know, there's a book by Benjamin King and Dan Sullivan called Who, Not How.
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You don't need my favorites.
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You don't need I am obsessed with Dr.
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Benjamin Hardy.
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I get to be with him in January, by the way.
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I'm so excited.
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Really?
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That's amazing.
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Yeah.
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I'm I'm legitimately jealous.
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Um, first of all, you don't need to know how to be the expert.
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You just need to know who you have in your life that is that that you can trust and you understand their ethics and transparency, and it matches up with yours.
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But most importantly, like you just need to know that there is a vehicle for passive investing into real estate projects and just start with that baseline understanding.
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And it can be pretty much any asset class that you are interested in.
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You very likely oil and gas or whatever it may be, you likely can find an offering there.
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But here's where I don't know that I know the right way.
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I know the right way for my family and for my wife and I.
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And what we think the right way for us is, is that we are talking and communicating about what we want to do with our time on this planet and about the lives that we want to create for our family, and about the character that we want to instill in our sons who are six and two.
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And we live at the beach, and I I'm one of six children, and I grew up in a lower middle class family without a lot of money, and we don't live in the richest area ever, but we certainly live around more wealth than I saw growing up.
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And one of the concerns that I have is raising a couple little jerks, right?
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I don't want to raise kids around wealth and opulence and then grow up to be bad people.
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Yeah.
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So because of that, one of the ways that my wife and I would like to offset that is having a life goal of not just focusing on financial independence like we did before, but by focusing on financial time and location independence to create an independence of purpose.
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And with that purpose, we would like to raise good kids, we would like to be good members of our community, we would like to do things that we enjoy, continue to build value, and we would like to travel because I think travel outside of where we live and travel outside of the US is the best way to create uh empathy, character, and gratitude.
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There is no there's no stronger endorsement I can give to what you just said, other than from personal experience.
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And to put it in perspective, I leave for Kenya in two days.
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Oh, this is we we and honestly, the poorer the country, the greater the perspective.
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Yes, sir.
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Because, you know, we have this world where on social media, this is a side note, but just kids are suffering as they're going through no matter what their income level, and they're sitting there online thinking everyone's richer and happier.
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And so if we can go to other places and see where people are legitimately happier who have less, you start like it totally rocks your world.
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It's just a complete, you know, the kids' world and mine included.
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So I love that you're saying that because, you know, on the surface, we could look at this as like an investment strategy to help people get more time.
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But what we're really talking about is life, the limited number of hours we get on this earth.
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What can we do with it to impact the world and still enjoy this experience so that we're not just like out there with our millions of dollars, but we're really leveraging it for in for improvement across the globe while we raise better humans.
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Like that to me is what it's all about, right?
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Everything you just said is the reason I do podcasts.
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Like I get to connect with people like this in a meaningful way across long distances.
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And um, yeah, you you just cut right through it.
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I love that.
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It's amazing that we're connecting right before you're going to Kenya for something just like that.
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But that's that's exactly and that's exactly what I'm talking about.
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That purpose is is gonna look different for different people, but to back to basics.
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What my wife and I have decided is that that's the goal that we're trying to pursue.
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So we want to start with that goal in mind, and then we want to decide if that's what's important to us, and these are the things that are important to us in terms of the communication of whoever we're operating with.
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These are the types of return profiles that we're looking for.
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We're looking for cash flow, or we're looking for growth, or we're looking for accelerated depreciation to offset our income from these other active gains, or whatever it may be.
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There's multiple different strategies that you can be after of.
00:17:37.119 --> 00:17:45.680
You decide what's most important for you that's going to help you meet the financial goals that hopefully are part of a bigger life goal of what you're trying to accomplish.
00:17:45.839 --> 00:17:46.079
Yeah.
00:17:46.319 --> 00:17:52.880
Then you're looking at operators and you're getting to know people.
00:17:53.200 --> 00:18:03.119
And yes, you're looking at what the offerings are, but more importantly, you're looking at what's their communication style, what are their ethics, what's their background, what's their transparency, what's their morality?
00:18:03.359 --> 00:18:05.680
Do I believe in the causes that they believe in?
00:18:05.920 --> 00:18:06.240
Right.
00:18:06.559 --> 00:18:18.799
Then you're looking at, oh, well, these people are multifamily, these people are in self-storage, these people are in car washes, these people are in oil and gas, these people are in RV parks or whatever it may be.
00:18:19.359 --> 00:18:22.400
And then you're looking at, okay, well, this is the return profile.
00:18:22.480 --> 00:18:29.279
This money's gonna be locked up for three years, this monthly, this is giving a little bit lower return, but it's giving monthly distributions.
00:18:29.519 --> 00:18:33.920
These, if I leave the money locked up for five to seven years, we're gonna get this kind of return.
00:18:34.319 --> 00:18:42.160
And when we have different some of our deals, that one of the current deals we're just wrapping up is a seven-year deal, which is long for us.
00:18:42.319 --> 00:18:50.000
And I had someone come to invest and be like, hey, I'm gonna put money into this deal because I know you guys have closed a little early on some of your other deals.
00:18:50.079 --> 00:18:55.759
And I'm retiring in four years, but I have a hunch that you guys are gonna close this early because of where we are in the market.
00:18:55.920 --> 00:18:59.039
And I said, Yeah, that would be cool to close early.
00:18:59.200 --> 00:19:01.279
Also, do not invest with us.
00:19:01.440 --> 00:19:02.559
That's a horrible idea.
00:19:02.720 --> 00:19:07.680
Like, if you're not okay with the conservative timeline, then don't do it.
00:19:07.920 --> 00:19:19.599
There, there's no amount of money that makes it worth it for us to take investments from the wrong investor because ultimately, if they're disgruntled two, three, or four years from now, I'm still the one that has to take that phone call.
00:19:19.920 --> 00:19:21.759
Yeah, it's in a bad position.
00:19:21.920 --> 00:19:31.680
So as you're listening to people, as excuse me, as people are listening to this right now, they're obviously very like think, they're very mindful of this idea of like, how can I invest in this different way?
00:19:31.920 --> 00:19:35.519
So just using your business as an example, what does it look like?
00:19:35.680 --> 00:19:38.640
If someone's going to invest with you, what does a typical process look like?
00:19:38.720 --> 00:19:40.240
What does return on investments look like?
00:19:40.400 --> 00:19:41.680
Kind of cutting through it to the audience.
00:19:41.759 --> 00:19:44.400
I know they're going, wow, this is great, but what does it even look like?
00:19:44.559 --> 00:19:55.440
Like break down in your example of when you work with physicians or you know, physical therapists or whoever's trying to you know diversify their portfolio, what does that look like from beginning to end?
00:19:55.519 --> 00:20:00.000
If you can just give a very brief overview of the different steps and then kind of what you typically see.
00:20:00.240 --> 00:20:00.880
Absolutely.
00:20:01.039 --> 00:20:02.640
So we're connecting with investors.
00:20:02.720 --> 00:20:12.400
We've got a pool of about 2,400 investors that have connected with us through our website or podcast or whatever that are just kind of getting our monthly newsletters and updates of what's going on and what we're offering.
00:20:12.640 --> 00:20:23.119
As we come up with an offering, let's say we find an old Kmart building and we put it under contract and we spend several months spending a lot of money and due diligence, and we know that we're gonna convert this to climate-controlled storage.
00:20:23.200 --> 00:20:25.599
We've got the permitting, the engineering, and everything else done.
00:20:25.759 --> 00:20:26.880
This is ready to go.
00:20:27.119 --> 00:20:29.839
We are launching out that out to our investor base.
00:20:29.920 --> 00:20:33.119
We're letting everybody know, hey, this is what the project looks like.
00:20:33.279 --> 00:20:37.440
And this is gonna be a little bit of an oversimplification, but it's typically something like this.
00:20:37.599 --> 00:20:45.680
Hey, we're gonna buy this building for two to three million, we're gonna put two to three million into it, we're gonna be into the whole project somewhere in the four to six million.
00:20:45.839 --> 00:20:50.880
It's gonna take us a year to build it out and about two years to hit cash flow positive.
00:20:51.119 --> 00:20:56.480
So it takes a couple years to get going, but you're earning a return that whole time that it's backhoed.
00:20:56.799 --> 00:21:07.680
And then as a stabilized self-storage facility, we're into the project somewhere in the four to six million range, and they're typically appraising in the 12 to 15 million range, sometimes as high as 17.
00:21:08.160 --> 00:21:11.440
So double, yeah, or trip double to triple in that return.
00:21:12.400 --> 00:21:17.440
Are they did you think that they're getting a they're getting some some cash flow while you're still not cash flow positive?
00:21:17.519 --> 00:21:18.880
Uh, maybe you're a misunderstood that.
00:21:19.119 --> 00:21:20.400
It depends on the property.
00:21:20.559 --> 00:21:36.000
So some of the projects already like the one we're closing right now is a Kmart 100,000 square foot Kmart building in a giant retail strip mall with 24 other retail shops, yeah, half of which are occupied in generating sixty thousand dollars a month in rental income.
00:21:36.559 --> 00:21:39.039
So that one's gonna cash flow a lot sooner.
00:21:39.279 --> 00:21:43.440
Uh, but the long and short of it is that there's a lot to blast through here.
00:21:43.519 --> 00:21:45.920
We're buying the building for two to three million.
00:21:46.000 --> 00:21:47.359
We put two to three million into it.
00:21:47.440 --> 00:21:51.440
It's gonna praise somewhere in the 12 to 15 million range, and we have a couple options.
00:21:51.599 --> 00:21:54.480
We can obviously sell it, everybody gets a great payday.
00:21:54.640 --> 00:22:10.960
We could refinance the property, we could pay everybody out by way of refinance, which means it's non-taxable because we didn't sell anything, so there's no capital gain, and then we can all stay in and hold it long-term forever, and it becomes an infinite return and it continues to cash flow.
00:22:11.279 --> 00:22:12.000
Interesting.
00:22:12.319 --> 00:22:13.359
We can chop it up.
00:22:13.599 --> 00:22:18.880
We've got one of our projects right now is in Goldsboro, North Carolina.
00:22:18.960 --> 00:22:22.000
It's a 40,000 square foot furniture store.
00:22:22.319 --> 00:22:26.240
We bought the building as 40,000 square feet, and we're building a mezzanine.
00:22:26.319 --> 00:22:42.559
It's got really tall ceilings, so we're cutting it in half horizontally and we're adding a mezzanine and we're turning that 40,000 square feet into 80,000 square feet, wow, which is going to yield around 60 to 65,000 square feet of net rentable climate-controlled storage.
00:22:42.799 --> 00:22:54.799
And then we have a giant parking lot of two to 300 parking spots, and when we convert it from retail to storage, we only need about 12 to 15 parking spots.
00:22:55.039 --> 00:22:57.599
So we have outparceled the parking lot.
00:22:57.759 --> 00:23:00.799
We listed it for sale, and we currently have two offers on it.
00:23:01.119 --> 00:23:06.720
One is to buy the outparcel for 750 grand to put a Biscuitville restaurant on it.
00:23:06.880 --> 00:23:07.119
Yeah.
00:23:07.279 --> 00:23:23.920
And the other is a$65,000 a year land lease for them to lease the outparcel, build their restaurant on it, and it's$65,000 a year for 10 years with a 3% escalation clause for inflation, and then multiple 10-year extensions after that.
00:23:24.000 --> 00:23:27.039
And in that situation, we're in first position even over the bank.
00:23:27.119 --> 00:23:30.799
And if they ever miss a payment, we take the land back with the building and everything else.
00:23:30.880 --> 00:23:31.759
So dang.
00:23:32.000 --> 00:23:34.240
And then we haven't talked about the roof space.
00:23:34.400 --> 00:23:43.359
I'm currently our group is sitting on 700,000 square feet of roof space that could be converted to solar when and if the federal dollars come back.
00:23:43.519 --> 00:23:53.200
So my point is it when you're converting from one asset class to another, what you're really doing is you're changing the formula by which the asset is valued.
00:23:53.359 --> 00:23:53.519
Yeah.
00:23:53.839 --> 00:23:58.079
And it it's changing up how the consumer uses that building.
00:23:58.319 --> 00:24:04.640
And it it changes the formation of the square footage, the parking lot, the ways in, the ways out, the rooftop.
00:24:04.799 --> 00:24:08.240
We can fence parking lot off, and we can do boat and RV storage.
00:24:08.319 --> 00:24:12.240
We can do tractor trailer parking, we can do co-working space.
00:24:12.480 --> 00:24:16.480
It creates a lot of opportunity for us to pull different levers.
00:24:16.880 --> 00:24:19.599
So I feel like I'm muddying the waters here, but my point is.
00:24:19.839 --> 00:24:22.079
No, I think you're doing a great job, Clint.
00:24:22.319 --> 00:24:26.079
You're you're so I am, I'm honestly, this is exactly where I think my audience wants to go.
00:24:26.160 --> 00:24:39.519
They want to understand it, they want to understand this type of situation so that they can be equipped to take their money and invest it in something that doesn't require more of their time that's going to return on investment in a way that is like life-changing.
00:24:39.759 --> 00:24:49.279
And so I will tell you, you know, for me from personal experience, I don't have a very much real estate, but I have three buildings that I've purchased over the years that my businesses were in.
00:24:49.440 --> 00:24:51.039
I sold my medical practice.
00:24:51.279 --> 00:24:53.359
So it's very, very small.
00:24:53.680 --> 00:25:06.880
But the the return on investment that I've received from the little real estate holdings that I have is my favorite money because it takes the least amount of my time and it continues to appreciate in a way that nothing else I've ever invested it in has.
00:25:07.200 --> 00:25:10.319
And I know, you know, real estate has I've done, I've kind of timed it well.
00:25:10.400 --> 00:25:19.279
There's definitely downturns and so on, but for the most part, it has been my favorite money that I've had, and it's had the most to do with increasing my net worth.
00:25:19.519 --> 00:25:22.400
And I think there's just so much to be said about that piece alone.
00:25:22.640 --> 00:25:27.440
So in your case, if I can maybe this is too personal, and that's okay if not, just let me know.
00:25:27.519 --> 00:25:29.119
And we can edit it out if that's the case.
00:25:29.279 --> 00:25:31.440
But like, what is a typical investment amount?
00:25:31.599 --> 00:25:36.559
If someone's going to come to the table and say, and you guys both have interviewed and you're like, yep, this is a mutual fit.
00:25:36.720 --> 00:25:40.079
What is, I'm sure that range is dramatic, but what does that range look like?
00:25:40.160 --> 00:25:42.960
And then what is their ROI and some what are some of the examples?
00:25:43.119 --> 00:25:46.160
Is it just some examples of ROIs that are like, wow, that's awesome.
00:25:46.480 --> 00:25:52.559
So our average investment about six months ago was around 135 grand, but it's a little misleading.
00:25:52.720 --> 00:26:01.119
We started off with a lot of$50,000 investors because we allowed people in our company and friends and family to invest in this.
00:26:01.279 --> 00:26:02.960
We opened up as 506B.
00:26:03.200 --> 00:26:05.119
We want it's so funny.
00:26:05.200 --> 00:26:12.799
Our some of our project managers, guys in their 20s, get amped when they find screws for like one dot one cent less per screw.
00:26:13.279 --> 00:26:14.559
Because it's money in their pocket.
00:26:14.880 --> 00:26:15.920
Yeah, they're invested.
00:26:16.160 --> 00:26:18.319
They have skin in the game, and I love seeing that.
00:26:18.400 --> 00:26:23.759
And so because of that, we have a lot of smaller investors,$50,000 investors that kind of pull the average down.
00:26:23.839 --> 00:26:25.920
But we're around that$135,000 mark.
00:26:26.000 --> 00:26:30.400
If you didn't factor that in, it's closer to the it's probably low$220, something like that.
00:26:30.559 --> 00:26:31.759
But we have different share classes.
00:26:31.839 --> 00:26:37.119
We have a$50,000 minimum, a$250, and then a million dollar share class, and they each go up in$1,000 increments.
00:26:37.279 --> 00:26:38.240
Those are just the minimums.
00:26:38.799 --> 00:26:47.440
But a typical return profile, depending on the offering, is going to be something like an annualized return of 15 to 20% per year, something like that.
00:26:47.599 --> 00:26:48.880
We just paid out.
00:26:48.960 --> 00:26:56.319
Um, we bought a Kmart in Danville, Virginia for two and a half million, and then 37 months later, we sold it for 9.53.
00:26:56.799 --> 00:26:59.440
Uh, and we beat our projected returns on that one.
00:26:59.519 --> 00:27:00.960
They're not all gonna do that.
00:27:01.279 --> 00:27:03.359
Um sometimes they do, sometimes they don't.
00:27:03.519 --> 00:27:07.519
But you have to keep in mind what this is.
00:27:07.920 --> 00:27:14.079
The operator of this deal is raising money from investors, and the investors are the bank.
00:27:14.319 --> 00:27:16.160
You are the bank for this, right?
00:27:16.480 --> 00:27:26.240
So if the interest rates with the bank are really low and there's a lot of money out there, you probably don't have to offer as competitive as rates.
00:27:26.319 --> 00:27:34.000
But then when 2022 happens and the interest rates shoot up higher and faster than they ever have, it's been a lot more competitive raising capital.
00:27:34.079 --> 00:27:42.400
So right now you have people offering, you know, 15 to 17 percent, 17 to 20 percent, 18 to 22 percent.
00:27:42.799 --> 00:27:47.839
The the return is typically correlated with the risk in the project or how long it's gonna take.
00:27:48.079 --> 00:27:53.039
A longer project is typically gonna pay out more because it takes longer to get there.
00:27:53.279 --> 00:27:57.759
The way our projects work is they're basically development deals.
00:27:57.920 --> 00:28:00.400
We are developers and you have to think about it that way.
00:28:00.640 --> 00:28:08.640
You can go make 15% per year by a self-storage operator who's buying existing facilities and doing some operational turnaround.
00:28:08.799 --> 00:28:16.000
If you want to do better than that and have significant equity, it you probably need to be in something that's longer term.
00:28:16.079 --> 00:28:17.680
Like we're buying an old building.
00:28:17.920 --> 00:28:23.039
The day that we close, we usually have a couple million dollars worth of equity, but then we still have to build it out.
00:28:23.200 --> 00:28:24.240
It takes us a year.
00:28:24.640 --> 00:28:25.680
It's on paper at that point.
00:28:25.759 --> 00:28:26.880
It's not something you can realize.
00:28:27.039 --> 00:28:30.400
It's you it's leverageable, but it's not something that you're like putting in your pocket.
00:28:30.640 --> 00:28:30.880
Right.
00:28:31.039 --> 00:28:35.039
So one of our projects recently, we were all in for$7 million.
00:28:35.119 --> 00:28:39.200
And the day that we got the certificate of occupancy, it appraised for$11.3.
00:28:39.599 --> 00:28:43.599
So we've created a lot of value, but that building is empty.
00:28:43.759 --> 00:28:45.039
It's not cash flowing.
00:28:45.200 --> 00:28:47.200
So now we got to fill it up, right?
00:28:47.279 --> 00:28:48.559
And this is a big building.
00:28:48.799 --> 00:28:53.440
So it may take us two years sometimes to get to cash flow positive.
00:28:53.519 --> 00:29:00.880
Now, the good news is our cash flow positive is way lower than a new development because new development is$130 a square foot in three years to build.
00:29:01.039 --> 00:29:06.160
Ours is$65 a square foot, and that includes the land, the parking lot, the construction, everything.
00:29:06.240 --> 00:29:08.160
And it takes 10 to 12 months.
00:29:08.400 --> 00:29:12.480
But still, like you got to build it out and then you got to fill it up.
00:29:12.720 --> 00:29:21.359
So during that time period from the day that our investors' capital goes in, they start earning a back owed preferred return.
00:29:21.519 --> 00:29:24.960
So usually six, eight, ten percent, something like that.
00:29:25.039 --> 00:29:29.839
From the day your money goes in, you're earning that return, but it is back owed.
00:29:30.079 --> 00:29:35.759
As soon as the property becomes cash flow positive, all of the money coming out goes straight back to the investors.
00:29:36.000 --> 00:29:36.319
Amazing.
00:29:36.799 --> 00:29:37.680
Catch them up.
00:29:37.920 --> 00:29:46.160
After they are caught up, then it's a 70 30 split with the money coming in, with 70% going to the limited partners and 30% going to the general partner.
00:29:46.400 --> 00:29:47.759
That's when we finally start making some money.
00:29:47.920 --> 00:29:48.400
I see that.
00:29:48.480 --> 00:29:49.680
And that might that was my next question.
00:29:49.759 --> 00:29:50.720
Where do you guys make your money?
00:29:50.799 --> 00:29:52.799
It's on that 30% on the back end.
00:29:52.880 --> 00:29:53.519
Yep, exactly.
00:29:53.680 --> 00:29:57.920
70 30 split until we hit a certain return profile, and then it goes usually 50 50.
00:29:58.079 --> 00:29:59.839
Each deal may be different.
00:30:00.319 --> 00:30:12.000
And then we could refinance and all have an exit that way and stay in and hold it long term, or if we get some crazy offer that's enough to peel the white knuckles off the steering wheel, it it may be worth it to trade the property.
00:30:12.480 --> 00:30:13.680
Man, you've done this a lot.
00:30:13.839 --> 00:30:15.839
So how how many years have you been doing this?
00:30:15.920 --> 00:30:18.880
How many properties would you say you've done that kind of thing?
00:30:19.680 --> 00:30:26.480
So we bought our first Kmart as a joint venture uh in 20 into 2020.
00:30:27.200 --> 00:30:34.000
I was selling pacemakers at the hospital, and the doctors I was working with, a bunch of them uh were ones that invested in the project.
00:30:34.160 --> 00:30:35.519
That one went really well.
00:30:35.680 --> 00:30:39.440
So then we did another one, and then we did another one, and then we did another one.
00:30:39.519 --> 00:30:47.119
And I think we had done eight, seven or eight projects when I turk took off my surgical scrubs for the last time in November of 2022.
00:30:47.279 --> 00:30:47.440
Wow.
00:30:47.759 --> 00:30:50.000
Been doing it full time ever since.
00:30:50.160 --> 00:30:52.480
We uh we've done 12 projects so far.
00:30:52.559 --> 00:31:03.680
We've got our 13th in the in the pipeline, 14th and 15th are letters of intent or under contract somewhere in the process, currently sitting at 150 million in assets under management.
00:31:03.839 --> 00:31:07.200
Our five-year goal is 500 million and 10-year goal of a billion.
00:31:07.519 --> 00:31:08.480
Let's go.
00:31:09.759 --> 00:31:12.079
I like to hear people dream big.
00:31:12.240 --> 00:31:20.160
I, you know, it's one of those things where um Benjamin Hardy, best book I've read this year, is his newest book called The Science of Scaling.
00:31:20.480 --> 00:31:25.200
Oh this this book has game-changed it for me.
00:31:25.279 --> 00:31:34.319
And it's it's a really powerful book for anyone who's listening because um what Clint is doing here is right in alignment with that.
00:31:34.480 --> 00:31:36.960
It's his first book that since he broke away from Dan Sullivan.
00:31:37.119 --> 00:31:45.359
And it's all focused on this concept that like the higher the target, the more unrealistic and almost impossible it may seem, the easier life becomes.
00:31:45.519 --> 00:31:50.240
It's the most counterintuitive concept, but it's all backed in science and research and actual application.
00:31:50.319 --> 00:31:59.759
And so it's fun because once we start to really believe in something and we can really see that we're making an impact and that profit and purpose go back to go, you know, no money, no mission, that kind of thing.
00:31:59.920 --> 00:32:02.559
Once we align those two things, then it becomes sky is the limit.
00:32:02.640 --> 00:32:11.279
It's up to us as visionaries to really hit something as a of a big target because until then, everything becomes equally exciting.
00:32:11.440 --> 00:32:13.599
You know, all these things that we could be spending time on.
00:32:13.759 --> 00:32:20.079
You could have tried to balance your previous job with this side hustle instead of making it the main thing.
00:32:20.319 --> 00:32:23.839
And as a result of that, you could have lost so much opportunity.
00:32:23.920 --> 00:32:26.400
And that's opportunity cost is a big part of this.
00:32:26.480 --> 00:32:38.559
So I think that that's really important as a side concept for our listeners to understand is that like whatever we're building, there is there's something about thinking big that isn't just like this fun business term.
00:32:38.640 --> 00:32:42.480
It's an actual application base that would make it easier for us.
00:32:42.640 --> 00:32:47.599
And so when we look at growth, I mean, yeah, man, like you look at go back to the Shark Tank comment I made.
00:32:47.759 --> 00:32:53.359
When people are starting over, the first place to start would be in real estate because of all the things that you and I have already said.
00:32:53.519 --> 00:33:04.000
So if we're building a big vision, how how much more realistic is it for us to be able to get there if we are in invested in some real estate with people who know how?
00:33:04.240 --> 00:33:05.839
So that's powerful stuff.
00:33:06.079 --> 00:33:07.599
I'm really glad you brought up scale.
00:33:07.680 --> 00:33:08.160
That's amazing.
00:33:08.240 --> 00:33:13.599
The the one downside of doing podcasts is that I blow my book budget every month.
00:33:13.680 --> 00:33:17.680
I you just cost me another one, I'll become buy that immediately when we're done here.
00:33:17.759 --> 00:33:18.960
I I do audio books.
00:33:19.039 --> 00:33:20.400
So uh that one's free.
00:33:20.480 --> 00:33:22.319
That's so the science of scaling is free.
00:33:22.400 --> 00:33:25.359
It's a podcast, and it's just the all it is is the book.
00:33:25.519 --> 00:33:26.799
So you can put the book for free.
00:33:27.039 --> 00:33:27.440
Oh, thank you.
00:33:27.680 --> 00:33:28.319
I saved you some money.
00:33:28.640 --> 00:33:29.359
I paid 20 bucks.
00:33:29.519 --> 00:33:29.759
All right.
00:33:30.400 --> 00:33:30.799
That's great.
00:33:30.960 --> 00:33:32.640
Yeah, I'm like four books behind.
00:33:32.720 --> 00:33:36.559
I I don't have enough time to read everything I want to read, mainly because of my little boys.
00:33:36.720 --> 00:33:37.839
But um that's great.
00:33:37.920 --> 00:33:38.559
Thanks for that.
00:33:38.720 --> 00:33:41.920
It's so in terms of scaling, this is a great example.
00:33:42.559 --> 00:33:53.039
You know, you can it's you can invest in single family homes or duplexes or flips or wholesaling or Airbnb is popular right now, RB parks, you can do anything you want.
00:33:53.279 --> 00:34:05.839
But the reality is you're probably not gonna change your life in a way that affects how much time you get to spend with your kids or grandkids or change their character, right, unless you're able to hit a certain level of scale and velocity.
00:34:06.000 --> 00:34:11.679
And it is probably not wise for you to pursue that because your time is worth too much.
00:34:11.920 --> 00:34:12.079
Right.
00:34:12.320 --> 00:34:20.559
And the learning curve is gonna be so long, it makes more sense to partner with other people and you just keep the main thing the main thing.
00:34:20.800 --> 00:34:21.119
Right.
00:34:21.440 --> 00:34:23.039
Keep doing what you're good at.
00:34:23.199 --> 00:34:40.719
But the idea is like take some of your capital and have it get up and get out of bed and go to work so that one day when you don't feel like getting up and getting out of bed and going to work, that you have created a pathway that there's another income stream for your house that's happening that way.
00:34:40.960 --> 00:34:46.480
That you're you're increasing, you know, you're doubling that income every seven years or so.
00:34:46.639 --> 00:34:54.000
One other thing that's really good, important tool to know is that you can invest in opportunities like this with your retirement funds.
00:34:54.159 --> 00:35:01.599
Oh I've converted one of my 401ks and two IRAs from previous employment to self-directed funds.
00:35:01.840 --> 00:35:04.639
I'm not allowed to invest those into nomad deals.
00:35:04.719 --> 00:35:08.400
It's called co-mingling, and it's illegal because I'm one of the general partners.
00:35:08.559 --> 00:35:12.880
But I do have that invested into other offerings with other people.
00:35:12.960 --> 00:35:22.559
With I have in storage in Texas with a group called Reliant and with uh some multifamily and in a beverage company, and like I've got different diversified assets.
00:35:22.960 --> 00:35:23.599
Even you.
00:35:23.840 --> 00:35:24.960
Yeah, even me, right?
00:35:25.039 --> 00:35:32.400
I I want to spread that out because we're all just taught that investing means paper assets and it's stocks and bonds.
00:35:32.559 --> 00:35:34.000
And it's it's just not.
00:35:34.079 --> 00:35:46.800
And I've seen a lot of the cardiologists that I worked with were trying to retire, like a whole wave of them in Columbia, South Carolina, where I was at at the time, were trying to retire when the 2008 market crashed.
00:35:46.960 --> 00:35:47.440
Oh, yeah.
00:35:47.599 --> 00:35:58.000
And you had people that lost a lot of their liquidity options rapidly and had to keep working for another three, four years to get back to where they were.
00:35:58.159 --> 00:36:04.559
So, yes, the stock market is an incredible way to continue to grow wealth, quote unquote, passively.
00:36:05.280 --> 00:36:09.039
And as long as the market's up when you're trying to retire, that's great.
00:36:09.519 --> 00:36:13.440
If it's not, it can really create some volatility that people don't see coming.
00:36:13.519 --> 00:36:21.760
And so diversification into other asset classes, I just I think there's a reason they call it real estate and not real stocks.
00:36:23.920 --> 00:36:24.480
Totally.
00:36:24.639 --> 00:36:36.079
And it's just the idea that you hit of like if if anyone listening has any money that they're just looking to invest, you know, this isn't for the private practice owner who's barely breaking, even who has no expendable funds.
00:36:36.159 --> 00:36:41.039
This is if you're in that place, you have to get that business under wraps for invest in yourself, totally.
00:36:41.440 --> 00:36:41.599
Yeah.
00:36:41.920 --> 00:36:53.199
Once we get to a point where and maybe we don't live the life that we want, but we have money, but we're just not sure how to use it to buy back our time or use it for freedom creating tools or or investments.
00:36:53.360 --> 00:36:54.320
This is a great one.
00:36:54.480 --> 00:36:58.880
And I I you know, my one of my favorite books on finance, not trying to give you something else to read.
00:36:58.960 --> 00:36:59.840
You've probably read this one.
00:37:00.159 --> 00:37:03.519
It's the um The Richest Man in Babylon.
00:37:03.760 --> 00:37:06.400
Oh yeah, I give that recommendation out a lot.
00:37:06.480 --> 00:37:07.760
It's a good one, right?
00:37:07.840 --> 00:37:08.960
It's a super simple read.
00:37:09.119 --> 00:37:13.039
My I'm not I'm not an avid reader, but like you, I love what I learned from it.
00:37:13.119 --> 00:37:14.400
So, like, that's a great book.
00:37:14.559 --> 00:37:17.599
And in it, it goes over the five laws of gold or seven laws of gold.
00:37:17.679 --> 00:37:24.159
But one of the main ones is that you invest with people who've proven that they're they know what they're doing if you're in an area that you don't know.
00:37:24.239 --> 00:37:27.920
And then number two is that you should take your money and get it to work for you.
00:37:28.079 --> 00:37:37.840
And that concept isn't brand new, but the way the book describes it is exactly how you said it is that like if you have any money that's sitting in a bank account, you're losing money with inflation, especially recently.
00:37:38.079 --> 00:37:40.960
You could go crypto, you could go stock.
00:37:41.119 --> 00:37:43.440
There's various pros and cons to that.
00:37:43.599 --> 00:37:49.199
But listen to the Shark Tanks again, the Shark Tank leaders, those guys who are just like, no, I'd get back into real estate.
00:37:49.280 --> 00:37:58.880
And there's, I would argue, I don't know anyone who's not super successful financially who doesn't have a significant real estate portfolio.
00:37:59.119 --> 00:38:04.719
I think these types of ventures, you know, this isn't technically a REIT, is it?
00:38:05.199 --> 00:38:06.639
Uh no, ours are not.
00:38:06.800 --> 00:38:10.239
A lot of times that may be who we're selling to or that we may roll up to that.
00:38:10.480 --> 00:38:17.119
But yeah, the real estate investment trust is usually kind of the institutional level person that's the end buyer of a lot of facilities like that.
00:38:17.360 --> 00:38:17.760
I get it.
00:38:17.920 --> 00:38:21.840
So that's cool because again, you know, you look at like private equity, what is that?
00:38:22.000 --> 00:38:34.480
Most doctors don't know, but private equity is nothing more than a bunch of people pulling their money together for a fund that then with great bri brains and minds go and invest it and get way more than 10 to 15% returns.
00:38:34.719 --> 00:38:42.719
This is that in a real estate space where people cannot have to be experts in their field, but they can put money in and then watch it grow.
00:38:42.800 --> 00:38:47.599
And it's cool about what you're offering, in my opinion, is that it's it's it can be long-term.
00:38:48.079 --> 00:38:50.880
Like if I was investing with you, I would that's where I'm at.
00:38:51.039 --> 00:38:56.239
I'm not looking for that in that three-year double to triple uh return on investment.
00:38:56.320 --> 00:38:58.400
I'm looking for passive income.
00:38:58.639 --> 00:39:02.320
I love my real estate investments for my buildings, it's my favorite money.
00:39:02.480 --> 00:39:13.360
It's like, and then what's cool about that too is as you know, with$150 million under under management, is that that just every year, just having that asset, you know, it's it grows.
00:39:13.599 --> 00:39:18.320
And so your net worth becomes more and more, and then you have leverage capabilities you wouldn't have had before.
00:39:18.559 --> 00:39:24.639
It's not necessarily sitting in the bank, but it is it is doing way more for you than it is if it was liquid in the bank.
00:39:24.719 --> 00:39:27.280
If anything, it would be losing in the liquid, you know, the bank sink.
00:39:27.440 --> 00:39:31.679
So, how do people so Clint, let me wait before I start asking that next question, any thoughts on that?
00:39:32.000 --> 00:39:34.639
Yeah, first of all, you're a really good podcast host.
00:39:34.719 --> 00:39:38.239
Uh, you're unpacking a lot of different things in different directions we could go here.
00:39:38.320 --> 00:39:46.159
But like, real quickly, you just you really cut through the mist there on that one because you know what your goals are.
00:39:46.239 --> 00:39:48.159
Like, oh, no, I'm not that type of investor.
00:39:48.320 --> 00:39:49.519
I am this type of investor.
00:39:49.599 --> 00:39:53.039
And that's why I know that this resounds, this fits with me, and this doesn't.
00:39:53.199 --> 00:39:57.280
That's a great example of why it's so important to know where you are, what your goals are.
00:39:57.360 --> 00:39:59.760
And my recommendation is to do that with your family.
00:39:59.920 --> 00:40:00.800
So I love that.
00:40:00.960 --> 00:40:02.880
You also mentioned stocks and crypto.
00:40:03.119 --> 00:40:07.119
Well, the one thing you can't do there is control the outcome.
00:40:07.280 --> 00:40:09.440
You can't control the valuation.
00:40:09.679 --> 00:40:14.639
What we can do, we are buying properties that we are not buying on a cap rate.
00:40:14.719 --> 00:40:16.320
We're buying them per square foot.
00:40:16.400 --> 00:40:20.880
We're buying nasty old buildings, typically that have been empty for eight to ten years.
00:40:21.039 --> 00:40:23.840
They are worth basically what we're willing to pay for them.
00:40:24.000 --> 00:40:39.039
And instead of building a new facility from the ground up for the cost of the land plus$130 a square, we can buy a nasty old Kmart for$10 to$20 a square foot, and we can put$40 to$45 a square foot into it.
00:40:39.119 --> 00:40:49.360
And our average across our portfolio is just under$65 a square for the building, the construction, the parking lot, the land, all of it, and we are converting it, right?
00:40:49.599 --> 00:40:54.239
The beauty is we are now converting it into a different asset class.
00:40:54.400 --> 00:40:59.119
And that asset class is valued by the net operating income.
00:40:59.360 --> 00:41:08.719
The rents coming in on the property minus the expenses, but not including the debt, divided by the going cap rate in the market is what determines the valuation.
00:41:08.800 --> 00:41:10.000
Don't get lost on that.
00:41:10.159 --> 00:41:13.440
But my point is there's a multiplier in there.
00:41:13.599 --> 00:41:16.400
There's a multiplier inside that equation.
00:41:16.559 --> 00:41:18.159
And an example is this.
00:41:18.239 --> 00:41:23.760
One of our is actually one of our competitors, but he's a guy that I look up to and respect a lot also in storage.
00:41:24.159 --> 00:41:34.079
He has an analogy where he takes his kids to the Walmart parking lot and he has them get out of the car and walk around the parking lot looking for change until they find a dollar.
00:41:34.239 --> 00:41:42.960
And it's hot and it's taking them 30, 40 minutes, and they don't want to be there, and they're whining, but eventually they find the nickels, the pennies, the quarters, and they come up with a dollar.
00:41:43.199 --> 00:41:45.360
And then he sat them down, and this was the lesson.
00:41:45.440 --> 00:41:50.159
He said, Listen, this is one of our facilities right across the street from this Walmart.
00:41:50.400 --> 00:41:53.599
That looks like a dollar to you, and you just worked hard for that dollar.
00:41:53.760 --> 00:41:55.920
But here's how commercial real estate works.
00:41:56.159 --> 00:42:14.079
On that self-storage facility over there across the street, if we increase the rents on that entire facility by a dollar per month, just a dollar, at a five cap, which is the going rate that that property is trading at at the time, it increases the value of the property by two hundred and forty dollars.
00:42:14.480 --> 00:42:22.559
So he's got this kid and he's like, Look, you have a dollar here, but this dollar represents two hundred and forty dollars worth of value that you created here.
00:42:22.800 --> 00:42:24.480
So what does that translate to?
00:42:24.800 --> 00:42:50.159
If we increase the rents just a little bit on that facility across the street by$1,000 a month, which is very easy to do across 500 units, sure, the value on that property immediately went up$240,000, and the bank will immediately let you tap into that and borrow that money and pull it out without paying taxes on it and take that and invest it into the next property and move on.
00:42:50.400 --> 00:42:59.199
The value of commercial real estate is that you can control the outcome because the outcome is the net operating income that hits a multiplier.
00:42:59.360 --> 00:43:02.719
And the multiplier is really what jumps things up.
00:43:02.960 --> 00:43:15.360
And if we we are changing the asset into the formula that we can control, and then we maximize the net operating income, and that forces up the value.
00:43:16.320 --> 00:43:19.360
How do you put value onto a residential property?
00:43:19.519 --> 00:43:22.400
What like if you're flipping a house, what is the value?
00:43:22.639 --> 00:43:27.360
The value is the bricks and the sticks and what the neighbor on the street paid for theirs.
00:43:27.599 --> 00:43:29.360
It's a comped-based system.
00:43:29.519 --> 00:43:29.760
Totally.
00:43:30.400 --> 00:43:32.000
Comparative market analysis.
00:43:32.159 --> 00:43:37.519
If these properties on the street are selling for this per square feet, this property is worth this per square feet.
00:43:37.679 --> 00:43:41.119
That's not how you determine the value of commercial real estate.
00:43:41.280 --> 00:43:45.519
Commercial real estate is valued based upon a cap rate in the market and a multiplier.
00:43:45.679 --> 00:43:51.760
And so the more you can increase that rent, even if it's just a little bit, it's hitting a huge multiplier.
00:43:51.920 --> 00:43:54.000
And so you can force that appreciation.
00:43:54.159 --> 00:44:06.639
So when you buy an old Kmart that got put out of business because Amazon and Walmart are smarter in that space and they're gone, it doesn't mean that that building is a bad location.
00:44:06.800 --> 00:44:10.559
You still have the same residential density in a one, three, five, and seven mile radius.
00:44:10.639 --> 00:44:12.559
You still have the same vehicle traffic count.
00:44:12.639 --> 00:44:18.639
And it still is a great place for the same people in that community to drive back to the same building.
00:44:18.880 --> 00:44:25.119
Now the difference is instead of going there to buy their home goods, they're paying us to come put the same stuff back inside the same building.
00:44:25.599 --> 00:44:32.800
All their Amazon and Walmart purchases are going back into the facility and they're paying you to store it and with little to no human human capital.
00:44:33.039 --> 00:44:39.280
It's QR codes on the door, it's touchscreen kiosks, it's automated for the most part with a little bit of on-site personnel.
00:44:39.360 --> 00:44:39.519
Yeah.
00:44:39.679 --> 00:44:43.440
And it's it's just an inverse flow of that local microeconomy.
00:44:43.760 --> 00:44:44.480
So brilliant.
00:44:44.559 --> 00:44:48.960
Yeah, and it's funny because like you mentioned one of your investments, the entire strip mile is already built out.
00:44:49.039 --> 00:44:52.400
Like it's just Kmart suffered because of Amazon and Walmart.
00:44:52.480 --> 00:44:55.679
So they have this one individual location that failed.
00:44:55.840 --> 00:44:58.480
So the real estate then has all this massive potential.
00:44:58.639 --> 00:45:05.440
But you know, it's a very niche thing in the sense that like there's not a lot of other applications that are out there fighting for 100,000 square feet.
00:45:05.679 --> 00:45:07.760
So it's it's it's understanding.
00:45:07.840 --> 00:45:12.000
I think what you've really hit upon is this next wave potential.
00:45:12.079 --> 00:45:18.639
You know, there's all this opportunity around what you're doing versus what's available.
00:45:18.880 --> 00:45:24.239
And it's it's gonna that discrepancy is so big, it's gonna sustain for decades longer, like minimally.
00:45:24.400 --> 00:45:27.280
I'm in in my personal business without you know transitioning to that.
00:45:27.360 --> 00:45:36.480
My audience already knows anyway, but like I hit the same stride where I found the right thing at the right time that it applies my skill set and it creates maximum value for people.
00:45:36.719 --> 00:45:38.400
To be in that spot is so special.
00:45:38.559 --> 00:45:41.920
The difference between you and me is that I can invest with you.
00:45:42.159 --> 00:45:46.239
I can't invest, no one can become clients of mine, but you can't invest with me.
00:45:46.400 --> 00:45:48.480
Mine's a typical service business.
00:45:48.639 --> 00:45:52.239
What you're doing that's so cool, is that it's a rising tide for lots of people.
00:45:52.320 --> 00:45:58.079
And so I really want my audience to understand this concept, and I'm learning about it obviously in real time.
00:45:58.320 --> 00:46:01.920
Um, listen, I this has been such a phenomenal episode, Clint.
00:46:02.079 --> 00:46:06.079
I I don't just say this loosely, you are an ideal guest.
00:46:06.960 --> 00:46:10.480
Not just in terms of what you're talking about, but who you are, your passion.
00:46:10.719 --> 00:46:16.880
I've rarely, if ever, had someone outsell them like sell the like, hey, you don't want to work with me just because you heard me on the podcast.
00:46:17.039 --> 00:46:17.920
I love that.
00:46:18.159 --> 00:46:23.679
And that's that's why I think people should trust going to you to learn more, even if it's not a fit.
00:46:23.760 --> 00:46:29.679
So if people wanted to learn more about this, and maybe they could potentially work with you, how would they get a hold of you?
00:46:30.000 --> 00:46:33.280
The best way is through our website, nomadcapital.us.
00:46:33.920 --> 00:46:36.400
Um, there's videos on there about that in the show notes.
00:46:36.559 --> 00:46:37.280
Yeah, that'd be great.
00:46:37.360 --> 00:46:41.440
Uh, our portfolio, what we've done in the past, our core values, our ethics, our beliefs.
00:46:41.599 --> 00:46:42.880
I'll talk to anybody about anything.
00:46:42.960 --> 00:46:45.840
I'll talk about Airbnb, raising capital, property management.
00:46:46.000 --> 00:46:50.000
I will tell you this though, my wife and a lot of her friends call me a dream crusher.
00:46:50.239 --> 00:47:01.039
Because at the end of the day, like at the end of the day, the numbers are the numbers and like the performance of the business plan and our ability to execute it is is gonna be what it's gonna be.
00:47:01.119 --> 00:47:03.599
And it's your job to know what your goals are.
00:47:03.679 --> 00:47:07.519
And if they don't fit up with what we're doing, I'll try to be the first one to tell you that.
00:47:07.679 --> 00:47:16.079
But if you don't know, if you have this fanciful idea of what you're looking for, we're gonna need to drill into that a little bit more.
00:47:16.400 --> 00:47:19.920
And for you to really know what you're trying to accomplish.
00:47:20.079 --> 00:47:30.000
Because in order for me to accomplish what I want to accomplish for my family and for our tribe of real estate nomads, we all got to be in the same boat rowing in the same direction.
00:47:30.079 --> 00:47:37.840
And if we're not, there are thousands of other places for you to go find opportunities that match up with what you're looking for with your family.
00:47:38.000 --> 00:47:46.320
And I think that that brutal honesty, candor, and accountability is just the best way to do it if you want to do it for a long time.
00:47:46.559 --> 00:47:51.039
I I well, all I hear from you, Clint, is commitment to this one concept.
00:47:51.199 --> 00:47:53.360
We all win together, or none of us win.
00:47:53.599 --> 00:47:53.840
Yeah.
00:47:54.000 --> 00:47:54.639
I can see that.
00:47:54.719 --> 00:48:02.079
Like your win is so closely tied to your client's win that like there is zero motivation to bring someone on who's not going to be a fit.
00:48:02.159 --> 00:48:05.920
Like you just would be in a position where it would shoot you in the foot and your investors in the foot.
00:48:06.000 --> 00:48:07.119
That's a lot of pressure.
00:48:07.360 --> 00:48:11.360
So you are a good guy and you're val and you're incentivized in the right way.
00:48:11.440 --> 00:48:14.400
Those are the two magic combos of knowing who to work with.
00:48:14.639 --> 00:48:19.840
You can get both of those together, then there's just no need to worry, other than being clear on your goals.
00:48:20.079 --> 00:48:20.880
Yeah, that's true.
00:48:21.039 --> 00:48:22.159
And let's let's be honest.
00:48:22.320 --> 00:48:24.000
Like sometimes goals change, right?
00:48:24.159 --> 00:48:27.599
Like your family's gonna change, or life circumstances is gonna change.
00:48:27.679 --> 00:48:28.320
That's fine.
00:48:28.480 --> 00:48:31.519
It's not about when things happen, it's about how we deal with them.
00:48:31.679 --> 00:48:34.880
We always say, you, you know, we can't change the wind, but we can adjust our sales.
00:48:35.039 --> 00:48:36.159
That's not what I'm talking about.
00:48:36.320 --> 00:48:46.639
Things like that are gonna happen, and that's when you really want to have a relationship and that you have communication and that you can talk through things like that to how are we gonna navigate this together to the best outcome?
00:48:46.880 --> 00:48:57.440
And that's again, like that's why the relationship and the communication is more important than the deal because your goalpost might move in your life, and that's okay.
00:48:57.679 --> 00:49:07.039
If you have different goals than than the what we're trying to accomplish, then that's kind of a you problem for getting involved, and it's kind of a me problem for letting you get involved.
00:49:07.280 --> 00:49:17.280
But if we are involved and something does happen or shift for you, you want to have that communication and transparency that that we can navigate it together.
00:49:17.440 --> 00:49:27.039
And that's why I think those goals and the relationships are the great place to start before you start getting shiny object syndrome and looking at return profiles or deals.
00:49:27.440 --> 00:49:29.440
Clint, thank you so much for being on the show.
00:49:29.519 --> 00:49:31.039
This has been very educational, very fun.
00:49:31.119 --> 00:49:34.800
And I'm gonna shoot you actually an email with a few questions I have on my end, if that's all right.
00:49:35.119 --> 00:49:36.480
Happy to help any way that I can.
00:49:36.559 --> 00:49:37.119
Thanks for your time.
00:49:37.199 --> 00:49:38.239
I appreciate you having me here.
00:49:38.400 --> 00:49:40.159
Rockstars, thank you so much for tuning in.
00:49:40.239 --> 00:49:45.360
As always, this is Will Humphreys, really encouraging you to lead with love and remember to never give up.
00:49:45.519 --> 00:49:53.840
Thanks, Clinton.