#824: Create Generational Wealth & Honor Your Family의 전체 녹취록

--> 00:01:47.240 So I'm going to pass it back to you. 32 00:01:47.240 --> 00:01:50.080 And if you would, Mike, just tell us a little bit more about yourself, your background, 33 00:01:50.080 --> 00:01:55.360 and how you found your way, you know, given this live altering experience into the real estate world. 34 00:01:55.360 --> 00:01:57.160 Yeah, well, I appreciate that, Kevin. 35 00:01:57.160 --> 00:02:01.200 I, um, every, I will, I'll never forget the day. 36 00:02:01.200 --> 00:02:05.120 I was in 1992 where my mom came to me. 37 00:02:05.120 --> 00:02:08.840 I'm the youngest of her five boys, she also has five girls. 38 00:02:08.840 --> 00:02:12.760 I'm the youngest boy in the family, number nine of 10. 39 00:02:12.760 --> 00:02:18.560 And she told me, Kevin, that she didn't have $600 to dig my father's grave. 40 00:02:18.560 --> 00:02:24.520 And the night before he had passed away in our living room and he had a three year battle with cancer. 41 00:02:24.520 --> 00:02:30.120 So on top of grieving this loss of my father, I see this look of terror and concern. 42 00:02:30.120 --> 00:02:35.200 And, you know, my mom was freaking out like she didn't know what to do. 43 00:02:35.200 --> 00:02:36.880 And that really upset me. 44 00:02:36.880 --> 00:02:43.160 It really challenged my view of my father because on one hand, my hero had just died. 45 00:02:43.160 --> 00:02:46.080 Somebody I looked up to and actually wanted to be. 46 00:02:46.080 --> 00:02:52.400 And on the other hand, I see the mess that he left my mom in, which happened in an instant. 47 00:02:52.400 --> 00:02:54.240 Up until that moment, I thought everything was good. 48 00:02:54.240 --> 00:02:59.400 My dad was a business owner for 40 years in our small community. 49 00:02:59.400 --> 00:03:01.360 Very well known and respected. 50 00:03:01.360 --> 00:03:06.600 Um, to this day, Kevin, I'm a 50 year old man and I can go back home. 51 00:03:06.600 --> 00:03:10.400 And in my small town, they still call me size boy. 52 00:03:10.400 --> 00:03:12.000 My dad's name was Si. 53 00:03:12.000 --> 00:03:15.280 So to give you some perspective, his reputation was amazing. 54 00:03:15.280 --> 00:03:20.800 But he died broke and I promised to myself on that day, but I would never let that happen. 55 00:03:20.800 --> 00:03:22.360 Anyone in my family again. 56 00:03:22.360 --> 00:03:28.360 And so I set off on a journey to figure out, I wasn't sure how, but I set off on a journey to do so. 57 00:03:28.360 --> 00:03:32.280 And the very first step was to get a teaching degree, which makes total sense. 58 00:03:32.280 --> 00:03:35.120 If you want to create wealth, right? 59 00:03:35.120 --> 00:03:40.720 Well, I ended up quitting teaching very quickly because I realized there's no money in it. 60 00:03:40.800 --> 00:03:45.240 My passion to help people and serve others still is with me today. 61 00:03:45.240 --> 00:03:46.840 It's just manifest in different ways. 62 00:03:46.840 --> 00:03:49.360 But I ended up starting a small business. 63 00:03:49.360 --> 00:03:55.920 It was a franchise and very, very quickly realized that that was the path for me. 64 00:03:55.920 --> 00:04:00.200 In the first year, Kevin, I was the fastest growing franchise in the system. 65 00:04:00.200 --> 00:04:05.680 The second and third year, I was the number one franchise sales operator out of 150 locations in the US. 66 00:04:05.680 --> 00:04:06.200 Wow. 67 00:04:06.200 --> 00:04:08.520 And at this time, I'm 28 years old. 68 00:04:08.520 --> 00:04:13.480 And so I remember standing up in front of the room at the National Convention, 69 00:04:13.480 --> 00:04:17.640 speaking to a room of 300 people and thinking to myself, 70 00:04:17.640 --> 00:04:22.800 most of these people have been in business longer than I've been on the planet. 71 00:04:22.800 --> 00:04:26.280 And now here I am with a guy in the front of the room telling him how to be successful. 72 00:04:26.280 --> 00:04:28.320 And I was like, I felt like I made it. 73 00:04:28.320 --> 00:04:29.760 You know, I was like, I'm the hero. 74 00:04:29.760 --> 00:04:34.240 Everyone's following me around and talking to me and it felt great. 75 00:04:34.240 --> 00:04:37.760 But the reality was that that journey, 76 00:04:37.760 --> 00:04:42.680 being so exclusively focused on building a business and creating wealth, 77 00:04:42.680 --> 00:04:44.840 cost me my family. 78 00:04:44.840 --> 00:04:51.200 My wife and my four kids with my wife, I have four kids with my wife, now ex-wife. 79 00:04:51.200 --> 00:04:55.600 And that experience was to the exclusion of them. 80 00:04:55.600 --> 00:04:59.920 And I had this weird kind of parallel moment where I flash back to, 81 00:04:59.920 --> 00:05:03.520 after the divorce, I flash back to the day my dad died. 82 00:05:03.520 --> 00:05:07.840 And I remember thinking, I had done all of this for my family. 83 00:05:07.840 --> 00:05:11.160 And while I write into financial wrong on my father, 84 00:05:11.160 --> 00:05:16.680 I actually abdicated and failed him in the reputational side of it, 85 00:05:16.680 --> 00:05:19.160 in the legacy side of it for my family. 86 00:05:19.160 --> 00:05:21.760 And it just really, really brought me to my knees. 87 00:05:21.760 --> 00:05:28.560 And this would have been in 2011 or 2012 where this happened. 88 00:05:28.560 --> 00:05:31.000 And I remember thinking, I'm a great business guy. 89 00:05:31.000 --> 00:05:33.200 It's all the money problem. 90 00:05:33.200 --> 00:05:35.840 But my family's in shambles. 91 00:05:35.840 --> 00:05:37.440 What did I do wrong? 92 00:05:37.440 --> 00:05:42.080 And I felt like a failure to a degree that I've never even worse than how I 93 00:05:42.080 --> 00:05:46.120 felt about my dad's failure because now this was mine. 94 00:05:46.120 --> 00:05:50.360 And it was in that moment where I kind of gathered myself and said, 95 00:05:50.360 --> 00:05:54.160 if I'm going to do something in the future, it has to have this dual mandate.

96 00:05:54.160 --> 00:05:58.400 One is I need to create wealth, but I also need to make sure I honor my family. 97 00:05:58.400 --> 00:06:03.520 So today free by real estate was founded on those principles. 98 00:06:03.520 --> 00:06:06.680 Those two mandates are really what guide us today. 99 00:06:06.680 --> 00:06:10.040 And so we have 12 family members who work full time in the business. 100 00:06:10.040 --> 00:06:13.520 Three of my four kids are full time in the business. 101 00:06:13.520 --> 00:06:16.480 And everything we do is a family related business. 102 00:06:16.480 --> 00:06:19.480 So if there's other families out there looking to create 103 00:06:19.480 --> 00:06:25.320 well through real estate investing, our approach to it is very family centric. 104 00:06:25.320 --> 00:06:30.160 And so what that translates to is we don't like to have an individual invest, 105 00:06:30.160 --> 00:06:34.640 a check writer, although, as you know, as a capital razor, 106 00:06:34.640 --> 00:06:36.240 having a check is critical, right? 107 00:06:36.240 --> 00:06:37.520 It's important. 108 00:06:37.520 --> 00:06:40.600 But if it doesn't come with the engagement of the family, 109 00:06:40.600 --> 00:06:43.080 we really can't serve them well. 110 00:06:43.080 --> 00:06:48.280 So we invite husband and wife and children oftentimes to join us in our events. 111 00:06:48.280 --> 00:06:51.040 We have programming for the kids. 112 00:06:51.040 --> 00:06:53.320 We have programming for husband and wife. 113 00:06:53.320 --> 00:06:56.320 Because we've learned that without that alignment, 114 00:06:56.320 --> 00:06:57.400 I learned the hard way. 115 00:06:57.400 --> 00:07:01.480 Without that alignment, wealth building is empty. 116 00:07:01.480 --> 00:07:03.880 And so we want to build wealth but do it with a family. 117 00:07:03.880 --> 00:07:05.680 So that's what we focus on today. 118 00:07:05.680 --> 00:07:06.600 Well, that's powerful, my friend. 119 00:07:06.600 --> 00:07:08.280 I appreciate you sharing that and, you know, 120 00:07:08.280 --> 00:07:10.440 very obviously a very vulnerable moment in your life. 121 00:07:10.440 --> 00:07:13.520 And again, just appreciate you being open about and sharing, 122 00:07:13.520 --> 00:07:15.040 you know, some of those challenges that you went through. 123 00:07:15.040 --> 00:07:17.600 But I would love to, if we could, 124 00:07:17.600 --> 00:07:20.080 before we move into, you know, what your business looks like today, 125 00:07:20.080 --> 00:07:22.880 I just curious, I guess, first and foremost, the franchise. 126 00:07:22.960 --> 00:07:26.360 What industry was that in and what business? 127 00:07:26.360 --> 00:07:29.440 Yeah, it was called, are you familiar with ACE hardware now? 128 00:07:29.440 --> 00:07:30.720 Yeah, these hardware stores. 129 00:07:30.720 --> 00:07:33.400 So they have a handyman service called ACE handyman. 130 00:07:34.880 --> 00:07:37.600 And I did not know that, I did not know that part. 131 00:07:37.600 --> 00:07:38.440 I've never seen one of those. 132 00:07:38.440 --> 00:07:39.440 Maybe we have them around here. 133 00:07:39.440 --> 00:07:40.360 I've just never seen one. 134 00:07:40.360 --> 00:07:42.240 Well, it's a recent acquisition. 135 00:07:42.240 --> 00:07:46.080 So I mentioned ACE because now it's a family or household name. 136 00:07:46.080 --> 00:07:49.160 Prior to being ACE, it was called handyman matters. 137 00:07:49.160 --> 00:07:53.040 And I was the, I was a franchisee, I actually had five locations 138 00:07:53.040 --> 00:07:55.640 in Nebraska, South Dakota and Arizona. 139 00:07:56.600 --> 00:07:58.240 So both in 2008. 140 00:07:59.800 --> 00:08:01.560 Interesting timing for the sale. 141 00:08:01.560 --> 00:08:02.400 Yeah, it was. 142 00:08:04.080 --> 00:08:06.440 It was, I think that was a divine appointment, my friend, 143 00:08:06.440 --> 00:08:09.040 because I wasn't planning on selling it. 144 00:08:09.040 --> 00:08:12.000 That's sort of a fun little side story. 145 00:08:13.120 --> 00:08:15.640 I actually was going through some business coaching 146 00:08:15.640 --> 00:08:17.760 on how to scale and grow my business 147 00:08:17.760 --> 00:08:19.960 because the challenge with that operational, 148 00:08:19.960 --> 00:08:23.800 that model was it was an owner operation, owner operator model. 149 00:08:23.800 --> 00:08:25.640 And so it was a great lifestyle business, 150 00:08:25.640 --> 00:08:26.480 but I didn't want that. 151 00:08:26.480 --> 00:08:27.880 I wanted to scale. 152 00:08:27.880 --> 00:08:30.840 And so I was getting coaching to help me level myself up 153 00:08:30.840 --> 00:08:32.400 to scale the business. 154 00:08:32.400 --> 00:08:34.360 And at the end of the program is a two year program. 155 00:08:34.360 --> 00:08:35.880 The guy gave me my coach, 156 00:08:35.880 --> 00:08:40.880 gave me a free business valuation with a local business broker. 157 00:08:40.880 --> 00:08:43.080 So I go in the office, Kevin and I hand him all, 158 00:08:43.080 --> 00:08:47.320 I bring him all this stuff and I had sent him financials ahead of time. 159 00:08:47.360 --> 00:08:49.480 And about an hour into the meeting, he looks at me, 160 00:08:49.480 --> 00:08:51.880 he said, what do you think your business is worth? 161 00:08:51.880 --> 00:08:54.680 And I said, I don't know, I have no idea. 162 00:08:54.680 --> 00:08:56.280 He said, just give me a number. 163 00:08:56.280 --> 00:08:57.920 So I threw a number out and he said, Mike, 164 00:08:57.920 --> 00:09:00.400 I can sell your business for three times what you think it's worth. 165 00:09:01.560 --> 00:09:03.320 I said, no, you can't. 166 00:09:03.320 --> 00:09:04.120 He said, yeah, I can't. 167 00:09:04.120 --> 00:09:06.440 He slid a contract across the table. 168 00:09:06.440 --> 00:09:09.360 Kevin, I signed the contract without even telling my wife. 169 00:09:09.360 --> 00:09:12.600 90 days later, my business is sold for three times 170 00:09:12.600 -->

00:09:13.840 what I thought it was worth. 171 00:09:13.840 --> 00:09:14.960 It was a life changing moment. 172 00:09:14.960 --> 00:09:19.000 I remember walking, going into the attorney's office, 173 00:09:19.000 --> 00:09:23.040 the big, long conference table, circled with papers. 174 00:09:23.040 --> 00:09:25.240 I went around and signed my name, whatever honey, 175 00:09:25.240 --> 00:09:27.040 every time that was. 176 00:09:27.040 --> 00:09:29.120 And I walked out of there with the big check. 177 00:09:29.120 --> 00:09:30.800 You know, a big physical check, 178 00:09:30.800 --> 00:09:32.200 but big numbers. 179 00:09:32.200 --> 00:09:35.400 I went right to the bank and paid up our house 180 00:09:35.400 --> 00:09:36.920 and did some other things. 181 00:09:36.920 --> 00:09:40.520 But that was a life altering moment and real exciting. 182 00:09:40.520 --> 00:09:41.640 Yeah, it was great. 183 00:09:41.640 --> 00:09:42.480 Yeah, yeah. 184 00:09:42.480 --> 00:09:45.160 Just again, not I know we're talking about real estate here, 185 00:09:45.160 --> 00:09:47.680 but just curious that since this was really a foundational piece 186 00:09:47.680 --> 00:09:49.560 of kind of where you're at today, 187 00:09:49.560 --> 00:09:53.040 Kerry says to who the buyer was in a larger franchisee 188 00:09:53.040 --> 00:09:54.880 than you that ultimately is looking to gobble up more 189 00:09:54.880 --> 00:09:57.680 or someone completely out of the network. 190 00:09:57.680 --> 00:09:58.520 It wasn't. 191 00:09:58.520 --> 00:10:01.040 So what's interesting is I mentioned that five locations, 192 00:10:01.040 --> 00:10:04.120 the location and the story I shared with you is for the Omaha Lincoln 193 00:10:04.120 --> 00:10:05.400 location. 194 00:10:05.400 --> 00:10:07.400 And that because that was kind of our flagship 195 00:10:07.400 --> 00:10:08.920 and that's where we live, 196 00:10:08.920 --> 00:10:11.160 I ended up spinning off the South Dakota location 197 00:10:11.160 --> 00:10:13.480 to our general manager who operated that business 198 00:10:13.480 --> 00:10:16.520 and sold the other two in Arizona to the general manager there, 199 00:10:16.520 --> 00:10:17.920 just because it didn't make sense. 200 00:10:17.920 --> 00:10:20.320 So I actually had three different sales 201 00:10:20.320 --> 00:10:22.720 that were precipitated by that first one in Omaha, 202 00:10:22.720 --> 00:10:23.960 three different owners. 203 00:10:23.960 --> 00:10:24.800 Got it, got it. 204 00:10:24.800 --> 00:10:26.000 Well, that's very exciting. 205 00:10:26.000 --> 00:10:27.160 Congratulations. 206 00:10:27.160 --> 00:10:30.440 So now that's when we pivot, right? 207 00:10:30.440 --> 00:10:33.560 That's where we pivot the focus into real estate. 208 00:10:33.560 --> 00:10:36.640 What did that, what did that process look like? 209 00:10:37.640 --> 00:10:42.440 Well, so this to be perfectly transparent with you, Kevin, 210 00:10:42.440 --> 00:10:44.240 I didn't want to get into real estate. 211 00:10:44.240 --> 00:10:46.240 And the reason I didn't want to get into real estate 212 00:10:46.240 --> 00:10:49.880 because my perception was that I had to take care of tenants 213 00:10:49.880 --> 00:10:51.880 and work on properties. 214 00:10:51.880 --> 00:10:56.240 I felt like the tenants were going to manage me. 215 00:10:56.240 --> 00:10:57.680 And I didn't want that. 216 00:10:57.680 --> 00:11:01.160 Do you remember I was talking about the franchise 217 00:11:01.160 --> 00:11:02.280 as an owner operated model? 218 00:11:02.280 --> 00:11:03.240 That isn't what suits me. 219 00:11:03.240 --> 00:11:04.880 I was trying to scale so I could have more 220 00:11:05.160 --> 00:11:07.800 of an executive role and to be a leader, 221 00:11:07.800 --> 00:11:11.040 and to be a coach, and a teacher, frankly. 222 00:11:11.040 --> 00:11:13.360 And so the real estate to me seemed to me 223 00:11:13.360 --> 00:11:16.320 to be much more of an owner operated model. 224 00:11:16.320 --> 00:11:17.560 And it didn't appeal to me 225 00:11:17.560 --> 00:11:21.680 because everybody that I looked to was an owner operator. 226 00:11:21.680 --> 00:11:25.360 It wasn't until this accident in 2016 227 00:11:25.360 --> 00:11:28.680 that you mentioned in the intro 228 00:11:28.680 --> 00:11:31.120 that I had this moment where, 229 00:11:31.120 --> 00:11:33.600 and let me give you a little bit of a backstory first. 230 00:11:33.600 --> 00:11:36.240 We were, my wife and I, 231 00:11:36.240 --> 00:11:38.760 when I sold that franchise, 232 00:11:38.760 --> 00:11:40.320 I started a construction company. 233 00:11:40.320 --> 00:11:42.400 I was licensed as a general contractor 234 00:11:42.400 --> 00:11:44.240 when I owned the handyman business. 235 00:11:44.240 --> 00:11:46.000 So it was an easy transition. 236 00:11:46.000 --> 00:11:48.520 And we were doing retail, bath, and kitchen remodeling. 237 00:11:48.520 --> 00:11:51.320 We're also doing, we had at one point, 238 00:11:51.320 --> 00:11:53.760 we were in 10 states, we had 300 guys, 239 00:11:53.760 --> 00:11:55.720 and we had crews all over the place 240 00:11:55.720 --> 00:11:56.720 in order to keep them busy. 241 00:11:56.720 --> 00:11:58.840 We buy flip houses and we'd say, 242 00:11:58.840 --> 00:12:02.240 hey, this job is in between things, 243 00:12:02.240 --> 00:12:03.240 go work on the flip house. 244 00:12:03.240 --> 00:12:06.160 We could always keep the best talent if that makes sense. 245 00:12:06.160 --> 00:12:08.760 We also, my wife and I, 246 00:12:08.760 --> 00:12:10.000 because I had the hand skills, 247 00:12:10.000 --> 00:12:12.920 or have the hand skills, would flip our own. 248 00:12:12.920 --> 00:12:15.160 So we're working on a house. 249 00:12:15.160 --> 00:12:17.400 2016, it was July 4th. 250 00:12:17.400 --> 00:12:19.480 We get up in the morning, we have plans in the afternoon. 251 00:12:19.480 --> 00:12:22.360 I said, let's go work on the flip house for a couple hours. 252 00:12:22.360

--> 00:12:26.160 Let's get a few things done because we're behind schedule. 253 00:12:26.160 --> 00:12:28.800 And then we'll be done by noon, we'll go. 254 00:12:28.800 --> 00:12:30.800 We'll go ahead and enjoy the rest of the day. 255 00:12:30.840 --> 00:12:33.400 We show up, the house is built in 1920. 256 00:12:33.400 --> 00:12:35.880 And I don't know if you've been in a house in the 20s 257 00:12:35.880 --> 00:12:38.600 or early 1900s with an oak floor. 258 00:12:38.600 --> 00:12:40.720 A lot of times that oak will separate 259 00:12:40.720 --> 00:12:43.560 and we had just sanded it to be refinished. 260 00:12:43.560 --> 00:12:46.560 So it was, all the pores were open, 261 00:12:46.560 --> 00:12:50.160 it's raw, oak floor, cracks everywhere. 262 00:12:50.160 --> 00:12:53.760 And my wife is going to start painting some trim white. 263 00:12:53.760 --> 00:12:58.280 And she kicks over a can of white paint on this oak floor. 264 00:12:58.280 --> 00:13:00.000 So we spend... 265 00:13:00.920 --> 00:13:04.920 We spent a better part of an hour freaking out 266 00:13:04.920 --> 00:13:07.120 trying to get this because it soaked it up so fast. 267 00:13:07.120 --> 00:13:08.760 We're getting it mopped up, we get it cleaned up. 268 00:13:08.760 --> 00:13:11.240 I'm like, okay, I just want to put one piece of trim up 269 00:13:11.240 --> 00:13:12.360 in the bathroom. 270 00:13:12.360 --> 00:13:14.480 I just need to feel like I did something. 271 00:13:14.480 --> 00:13:16.280 So when I leave this house, 272 00:13:16.280 --> 00:13:18.720 I don't feel like it was a complete waste of my day. 273 00:13:18.720 --> 00:13:21.960 So I go in and behind the toilet, 274 00:13:21.960 --> 00:13:25.120 there's a piece of trim and then it returned to the door opening 275 00:13:25.120 --> 00:13:28.640 and the wall that returned to the door had a little bow in it. 276 00:13:28.640 --> 00:13:31.000 And so the nail or the trim, 277 00:13:31.000 --> 00:13:35.200 when I was face nailing it, it wouldn't bite. 278 00:13:35.200 --> 00:13:38.560 The plaster was too thick and the wall had bow in it. 279 00:13:39.880 --> 00:13:44.080 So instead I just, I pushed the trim in and I tonaled 280 00:13:44.080 --> 00:13:45.920 the one piece of trim to the other so it would hold. 281 00:13:45.920 --> 00:13:48.600 And that nail came back, ricocheting with my eye. 282 00:13:48.600 --> 00:13:50.080 Oh my gosh. 283 00:13:50.080 --> 00:13:53.320 Yeah, it was a two and a half inch finish nail. 284 00:13:53.320 --> 00:13:54.960 There are 16 gauge. 285 00:13:54.960 --> 00:13:58.440 I still have the nail in my dresser door 286 00:13:58.440 --> 00:14:02.120 because it was a life-huntering moment. 287 00:14:02.120 --> 00:14:04.120 Anyway, so all of that to happen, 288 00:14:04.120 --> 00:14:06.480 we, I've had multiple surgeries. 289 00:14:06.480 --> 00:14:08.760 I can't see on my right eye because of it. 290 00:14:08.760 --> 00:14:11.720 But through the recovery of that, 291 00:14:11.720 --> 00:14:13.080 which I won't get into that whole journey, 292 00:14:13.080 --> 00:14:15.840 that's a whole nother podcast, probably. 293 00:14:15.840 --> 00:14:18.680 But through that recovery, I couldn't work. 294 00:14:18.680 --> 00:14:22.200 And because you can, and I don't know if you're familiar with, 295 00:14:24.480 --> 00:14:26.640 well, just the practice of closing one eye 296 00:14:26.640 --> 00:14:28.160 and how it feels. 297 00:14:28.160 --> 00:14:29.200 You lose your depth perception. 298 00:14:29.200 --> 00:14:30.160 You can still see fine. 299 00:14:30.160 --> 00:14:31.960 But you're spatial aware. 300 00:14:31.960 --> 00:14:34.040 And my spatial awareness went away. 301 00:14:34.040 --> 00:14:36.160 I was knocking stuff over and running into people. 302 00:14:36.160 --> 00:14:38.200 I can't grab a glass of water without knocking it over. 303 00:14:38.200 --> 00:14:40.520 I can't climb a ladder without sweating. 304 00:14:40.520 --> 00:14:42.760 And so I wasn't about to work around, 305 00:14:42.760 --> 00:14:47.320 you know, saws and drills and things that could hurt me further. 306 00:14:47.320 --> 00:14:48.840 And that's when my wife convinced me, 307 00:14:48.840 --> 00:14:52.720 hey, you have all these skills, you can't use them. 308 00:14:52.720 --> 00:14:54.400 But your brain is still good. 309 00:14:54.440 --> 00:14:56.200 You build businesses. 310 00:14:56.200 --> 00:14:57.400 Let's get into real estate. 311 00:14:57.400 --> 00:15:00.120 And we'll figure out how to create a system in a process 312 00:15:00.120 --> 00:15:01.560 that allows us to be more passive. 313 00:15:01.560 --> 00:15:02.960 You can be more of an executive. 314 00:15:02.960 --> 00:15:04.920 You don't need to own an operate. 315 00:15:04.920 --> 00:15:06.800 And that's really the tipping point. 316 00:15:06.800 --> 00:15:11.320 Was that accident where I cast a new vision? 317 00:15:11.320 --> 00:15:12.360 Because I couldn't see. 318 00:15:13.360 --> 00:15:16.280 And we started by an accident. 319 00:15:16.280 --> 00:15:18.520 Unbelievable, unbelievable. 320 00:15:18.520 --> 00:15:20.160 Okay, okay. 321 00:15:20.240 --> 00:15:23.440 I was not expecting that that would be the origination 322 00:15:23.440 --> 00:15:24.640 of that story. 323 00:15:24.640 --> 00:15:27.160 But no, so that's where we're at today. 324 00:15:27.160 --> 00:15:32.040 Your wife, obviously, very supportive and ultimately knew 325 00:15:32.040 --> 00:15:34.200 that there was still great opportunity to be had 326 00:15:34.200 --> 00:15:36.280 and that you had just had a pivot to a different direction. 327 00:15:36.280 --> 00:15:40.360 And so what did that, I mean, what did the passive world look like? 328 00:15:40.360 --> 00:15:41.520 Talked to me about that journey. 329 00:15:41.520 --> 00:15:45.360 And what, you know, I guess that maybe even that first passive investment 330 00:15:45.360 --> 00:15:47.040 to where you realize like there's an opportunity, 331 00:15:47.040 -->

00:15:48.800 there's a business here, there's a separate business. 332 00:15:48.800 --> 00:15:51.520 Something that exists that I didn't realize before 333 00:15:51.520 --> 00:15:54.920 because I thought I had to be actively involved in these deals. 334 00:15:54.920 --> 00:15:56.200 I had to be the one swinging hammers. 335 00:15:56.200 --> 00:15:57.680 I had to be the one taking the phone calls, 336 00:15:57.680 --> 00:16:01.120 managing these properties or having the tenants manage you 337 00:16:01.120 --> 00:16:03.120 as you had said earlier. 338 00:16:03.120 --> 00:16:05.840 So talk to me about the light bulb moment where it went off that, 339 00:16:05.840 --> 00:16:07.520 like there's a completely different world out here 340 00:16:07.520 --> 00:16:08.680 that I didn't know existed. 341 00:16:08.680 --> 00:16:10.520 And I don't have to be the one swinging hammers 342 00:16:10.520 --> 00:16:13.400 or taking calls from angry tenants. 343 00:16:13.400 --> 00:16:14.240 Yeah, that's right. 344 00:16:14.240 --> 00:16:17.080 No, I think it was sort of a two tiered 345 00:16:18.960 --> 00:16:19.840 light bulb, I guess. 346 00:16:19.840 --> 00:16:23.680 The first was when I started to invest myself 347 00:16:23.680 --> 00:16:27.920 as a passive investor with other syndicators as a limited partner. 348 00:16:27.920 --> 00:16:32.840 So putting capital in and a handful of deals in Texas 349 00:16:32.840 --> 00:16:38.360 and Tennessee and Florida with other operators 350 00:16:38.360 --> 00:16:41.080 and getting good returns and not doing anything. 351 00:16:41.080 --> 00:16:45.000 Honestly, my wife and I basically took our retirement account 352 00:16:45.040 --> 00:16:49.000 and self-directed that and started investing that capital. 353 00:16:49.000 --> 00:16:50.680 While we were doing our own real estate 354 00:16:50.680 --> 00:16:53.560 because I'm thinking, you know, to your question, 355 00:16:53.560 --> 00:16:55.400 how do we do this more passively? 356 00:16:55.400 --> 00:16:59.880 Well, I realized that giving the sponsor's money, 357 00:16:59.880 --> 00:17:01.480 it's a slower role, right? 358 00:17:01.480 --> 00:17:03.840 It's a five year hold or whatever it is. 359 00:17:03.840 --> 00:17:05.960 And so what am I going to do in the meantime? 360 00:17:05.960 --> 00:17:08.120 So we also built our own portfolio. 361 00:17:09.080 --> 00:17:14.080 And it was a really the second part of that light bulb moment, 362 00:17:14.880 --> 00:17:18.280 which was the most pivotal was when we bought 363 00:17:18.280 --> 00:17:21.680 an 88 unit building here in Nebraska. 364 00:17:22.600 --> 00:17:26.520 And it was a very interesting building. 365 00:17:26.520 --> 00:17:28.680 It was built, it's a disperse site. 366 00:17:28.680 --> 00:17:29.960 It serves four buildings. 367 00:17:31.040 --> 00:17:33.480 It was built in the early 2000s 368 00:17:33.480 --> 00:17:35.640 and it had never been maintained. 369 00:17:35.640 --> 00:17:36.880 So the guy built it developed it 370 00:17:36.880 --> 00:17:38.920 and the original developer still owned it 371 00:17:38.920 --> 00:17:42.200 but it deferred maintenance like crazy. 372 00:17:42.200 --> 00:17:45.440 And so we were buying it at a deep discount. 373 00:17:45.440 --> 00:17:49.760 It appraised the day we bought it for right at $4 million. 374 00:17:49.760 --> 00:17:54.760 We paid $2.8 for it and we had a seller carry 375 00:17:55.680 --> 00:17:58.240 of the majority of it. 376 00:17:58.240 --> 00:18:01.560 I think he carried, I don't remember when it was him 377 00:18:01.560 --> 00:18:02.920 but he carried the majority of it 378 00:18:02.920 --> 00:18:05.200 because he was not a seller, he was a don't owner. 379 00:18:05.200 --> 00:18:07.280 He was like, I just, I didn't even get out of it. 380 00:18:07.280 --> 00:18:09.120 He was diagnosed with terminal cancer, 381 00:18:09.120 --> 00:18:11.120 had taken it through its life cycle 382 00:18:11.400 --> 00:18:13.560 and it was exiting all of his positions. 383 00:18:13.560 --> 00:18:15.480 And so to be honest with you, 384 00:18:15.480 --> 00:18:16.480 I didn't think we could do it 385 00:18:16.480 --> 00:18:20.120 because we had done several single family slow-multi 386 00:18:20.120 --> 00:18:21.960 and it's all value add stuff, right? 387 00:18:21.960 --> 00:18:23.240 So because I'm a contractor, 388 00:18:23.240 --> 00:18:26.560 I like fixing things and the value add play made sense 389 00:18:26.560 --> 00:18:28.720 but I never done it at that scale. 390 00:18:28.720 --> 00:18:33.720 So we leveraged our own portfolio for the CapEx 391 00:18:34.520 --> 00:18:35.480 and got a line of credit. 392 00:18:35.480 --> 00:18:36.800 So we got a million dollar line of credit 393 00:18:36.800 --> 00:18:38.880 and it's our existing portfolio 394 00:18:38.880 --> 00:18:40.840 and put our own money into it. 395 00:18:40.840 --> 00:18:42.920 And it said, let's just see if we can do this on our own. 396 00:18:42.920 --> 00:18:47.760 So we bought it, I wanna say it was in 2022 397 00:18:47.760 --> 00:18:51.640 and two years later we had completely repositioned the asset. 398 00:18:51.640 --> 00:18:54.080 We renovated 60% of the units. 399 00:18:54.080 --> 00:18:56.760 The rest of the tenants tolerated the rent increases 400 00:18:56.760 --> 00:18:59.120 without having to renovate. 401 00:18:59.120 --> 00:19:03.320 And when we got it re-appraised, it appraised at 7 million 402 00:19:03.320 --> 00:19:07.360 and we walked away with not only paying all the, 403 00:19:07.360 --> 00:19:08.280 paying our line of credit, 404 00:19:08.280 --> 00:19:11.680 paying the first position lender, paying the seller carry 405 00:19:11.680 --> 00:19:14.680 but we walked away with the check for $1.2 million. 406 00:19:14.680 --> 00:19:15.800 Still own the asset. 407 00:19:15.800 --> 00:19:18.800 It cash flows 12 to $14,000 a month 408 00:19:18.800 --> 00:19:21.720 depending upon occupancy and it's paying for itself. 409 00:19:21.720 -->

00:19:26.720 And I said, okay, now I know why people do this. 410 00:19:27.400 --> 00:19:32.520 And so we stopped investing in other syndicators deals 411 00:19:32.520 --> 00:19:34.240 and started to syndicate our own deals. 412 00:19:34.240 --> 00:19:36.120 And so now we invite families to come along 413 00:19:36.120 --> 00:19:37.200 for the right of us. 414 00:19:37.240 --> 00:19:38.640 Fantastic, love that story. 415 00:19:38.640 --> 00:19:40.440 Yeah, it just takes that one, right? 416 00:19:40.440 --> 00:19:41.720 That's amazing, yeah. 417 00:19:41.720 --> 00:19:44.320 And it's, I'm not gonna say like it's, 418 00:19:44.320 --> 00:19:47.640 you can't replicate that to a tee every single time, right? 419 00:19:47.640 --> 00:19:48.880 But that was an absolute home run. 420 00:19:48.880 --> 00:19:52.200 I mean, and there's different levels of kind of, 421 00:19:52.200 --> 00:19:53.040 you know, risk house. 422 00:19:53.040 --> 00:19:55.880 Like one would say that that was a, 423 00:19:55.880 --> 00:19:57.800 it depends, it depends, you know, 424 00:19:57.800 --> 00:19:58.800 how you wanna place the buck. 425 00:19:58.800 --> 00:20:00.400 But I would say a higher risk, a higher reward 426 00:20:00.400 --> 00:20:02.920 because you're repositioning an entire, 427 00:20:02.920 --> 00:20:04.480 I mean, like it had been mismanaged, 428 00:20:04.480 --> 00:20:05.480 deferred maintenance, you know, 429 00:20:05.480 --> 00:20:07.360 you got some uncertainty made with the tenant base, 430 00:20:07.360 --> 00:20:09.960 not sure how they're going to react to a, 431 00:20:09.960 --> 00:20:11.920 you know, red increase and things of that nature, right? 432 00:20:11.920 --> 00:20:13.200 So there's some uncertainty there, 433 00:20:13.200 --> 00:20:14.760 but ultimately a higher reward, 434 00:20:14.760 --> 00:20:16.520 if you're able to execute accordingly, right? 435 00:20:16.520 --> 00:20:19.000 So that's absolutely a home run. 436 00:20:19.000 --> 00:20:20.600 And then you've got the other end of the spectrum, 437 00:20:20.600 --> 00:20:22.760 which is just buying, you know, kind of core assets 438 00:20:22.760 --> 00:20:25.520 that are stable, not much upside whatsoever, 439 00:20:25.520 --> 00:20:28.280 a class assets that they're new, 440 00:20:28.280 --> 00:20:29.920 they're brand new or only a few years old 441 00:20:29.920 --> 00:20:31.160 and don't have any deferred maintenance, 442 00:20:31.160 --> 00:20:35.120 have, you know, a plus credit tenant base at pay on time, 443 00:20:35.120 --> 00:20:38.520 you know, 99.9% of the time and very little risk, 444 00:20:38.520 --> 00:20:41.320 but also, you know, the returns are much, much lower 445 00:20:41.320 --> 00:20:42.600 than what we're talking about here. 446 00:20:42.600 --> 00:20:45.680 So talk to me about, you're gonna, go ahead. 447 00:20:45.680 --> 00:20:47.000 You're gonna be paying a, 448 00:20:47.000 --> 00:20:47.840 and paying a pre-order. 449 00:20:47.840 --> 00:20:50.320 Whatever four or

five cap on the front, 450 00:20:50.320 --> 00:20:52.640 you know, we're buying stuff at seven eight cap 451 00:20:52.640 --> 00:20:54.120 because of all the work. 452 00:20:54.120 --> 00:20:55.680 That's right, absolutely. 453 00:20:55.680 --> 00:20:57.600 So, let's try and test it, you know. 454 00:20:57.600 --> 00:20:59.240 No, no, no, that's fantastic. 455 00:20:59.240 --> 00:21:00.640 Again, I appreciate you sharing. 456 00:21:00.640 --> 00:21:02.720 So, you're business today. 457 00:21:02.720 --> 00:21:06.200 You guys, you're basically finding your own opportunity 458 00:21:06.200 --> 00:21:07.480 is bringing other folks in, 459 00:21:07.480 --> 00:21:09.800 bringing capital in from outside sources 460 00:21:09.800 --> 00:21:13.600 and running as GP on these projects, correct? 461 00:21:13.600 --> 00:21:15.280 That is correct, yeah. 462 00:21:15.280 --> 00:21:19.800 And so, our basically, our business model is, 463 00:21:19.800 --> 00:21:22.200 we, some of the things that we try to do 464 00:21:22.200 --> 00:21:26.520 a little bit differently, we do rely on brokers to source deals, 465 00:21:26.520 --> 00:21:29.320 but we've never bought a deal 466 00:21:29.320 --> 00:21:31.240 where we haven't had a direct contact 467 00:21:31.240 --> 00:21:33.400 in relationship with the seller. 468 00:21:33.400 --> 00:21:34.240 Another one. 469 00:21:34.240 --> 00:21:35.360 I think that's critically important. 470 00:21:35.360 --> 00:21:36.640 Absolutely, it's broken. 471 00:21:36.640 --> 00:21:37.480 Yep. 472 00:21:37.480 --> 00:21:40.160 And I'll tell you that it's interesting how few, 473 00:21:41.160 --> 00:21:44.840 I shouldn't say few, how many others in our space 474 00:21:44.840 --> 00:21:47.400 are comfortable dealing with seller to broker, 475 00:21:47.400 --> 00:21:49.040 to broker to buyer 476 00:21:49.040 --> 00:21:52.600 and navigating those transactions 477 00:21:52.600 --> 00:21:57.240 without having a direct and real conversation, 478 00:21:57.240 --> 00:21:59.160 multiple, generally multiple conversations 479 00:21:59.160 --> 00:22:03.200 with the actual asset owner, the management team. 480 00:22:03.200 --> 00:22:05.240 It just seems like it's way too risky to me 481 00:22:05.240 --> 00:22:07.960 unless we're having direct access to these sellers 482 00:22:07.960 --> 00:22:10.160 and can talk to them and navigate these conversations 483 00:22:10.160 --> 00:22:13.320 because we're not buying an asset, we're buying a business. 484 00:22:13.320 --> 00:22:16.040 And all those operational works and challenges 485 00:22:16.040 --> 00:22:18.120 are really what we're trying to uncover in that journey 486 00:22:18.120 --> 00:22:20.000 so that we can see where the opportunities lie 487 00:22:20.000 --> 00:22:21.560 for us to level up. 488 00:22:21.560 --> 00:22:24.120 We also interview every single tenant, 489 00:22:24.120 --> 00:22:26.520 which not all owners like, 490 00:22:26.520 --> 00:22:28.720 but it's part of our due diligence. 491 00:22:28.720 --> 00:22:30.960 Like we wanna know how are you being treated 492 00:22:30.960 --> 00:22:32.000 and what are the challenges 493 00:22:32.000 --> 00:22:33.920 because they're the ones that are gonna be completely raw 494 00:22:33.920 --> 00:22:37.320 and a lot of times, you know, it's over the top 495 00:22:37.320 --> 00:22:39.920 because they might have some grievances, 496 00:22:39.920 --> 00:22:41.120 but we get a true picture. 497 00:22:42.040 --> 00:22:42.880 And so. 498 00:22:42.880 --> 00:22:43.720 Very interesting. 499 00:22:43.720 --> 00:22:45.320 Yeah, I would say that's a first for me 500 00:22:45.320 --> 00:22:46.600 while it's happened before 501 00:22:46.600 --> 00:22:47.960 and it's more commonly it's happened 502 00:22:47.960 --> 00:22:49.360 maybe other types of commercial, 503 00:22:49.360 --> 00:22:50.520 we're interviewing the tenants, 504 00:22:50.600 --> 00:22:54.120 if we're buying like a re, in the past retail or office 505 00:22:54.120 --> 00:22:56.600 or industrial, anything along those lines. 506 00:22:56.600 --> 00:23:00.760 And I would say pretty much anytime other than when we've bought 507 00:23:00.760 --> 00:23:03.040 either multi-family or mobile home parks, 508 00:23:03.040 --> 00:23:05.200 which is what really our asset class is, 509 00:23:05.200 --> 00:23:08.760 I can't remember a time where we actually had the opportunity 510 00:23:08.760 --> 00:23:10.800 to interview the tenants ahead of time. 511 00:23:10.800 --> 00:23:12.560 So that's great, I love that. 512 00:23:12.560 --> 00:23:13.400 I love that. 513 00:23:13.400 --> 00:23:15.000 But I could see the opposition from, 514 00:23:15.000 --> 00:23:17.680 I could put myself in the shoes of a seller 515 00:23:18.640 --> 00:23:21.360 and understand the opposition there and the concern 516 00:23:21.360 --> 00:23:23.960 in the event that everyone gets freaked out 517 00:23:23.960 --> 00:23:25.840 whether it be the folks that are running, 518 00:23:25.840 --> 00:23:27.880 the building, the office staff, to every resident, 519 00:23:27.880 --> 00:23:29.760 everyone gets, nobody likes change. 520 00:23:29.760 --> 00:23:30.960 Whether you say you do or not, 521 00:23:30.960 --> 00:23:33.200 everyone still has a, someone of an aversion, 522 00:23:33.200 --> 00:23:35.400 some higher than others to change in general. 523 00:23:35.400 --> 00:23:36.240 That's right. 524 00:23:36.240 --> 00:23:38.160 Yes, fear that that comes from that. 525 00:23:38.160 --> 00:23:41.760 So, but no, great job, be able to do it. 526 00:23:41.760 --> 00:23:45.680 The key Kevin honestly is collaboration 527 00:23:45.680 --> 00:23:50.680 and so much of what we do is rooted and founded 528 00:23:50.880 --> 00:23:54.320 and Chris Voss is teaching about, 529 00:23:54.320 --> 00:23:56.400 you know, never splitting the difference. 530 00:23:56.400 --> 00:23:58.400 And I highly recommend that I've obtained a buddy 531 00:23:58.400 --> 00:24:00.400 who hasn't yet read that. 532

00:24:00.400 --> 00:24:02.160 It's like one that I read every year 533 00:24:02.160 --> 00:24:04.920 and I actually have co-authored a book with Chris 534 00:24:04.920 --> 00:24:07.840 that is an Amazon best seller, 535 00:24:07.840 --> 00:24:09.520 which I would completely blown away 536 00:24:09.520 --> 00:24:12.640 and humbled by the opportunity to do that with him. 537 00:24:12.640 --> 00:24:15.480 So he's taught me a ton about empathy, 538 00:24:15.480 --> 00:24:17.120 about collaboration. 539 00:24:17.120 --> 00:24:20.920 It his skills as a former hostage negotiator 540 00:24:20.920 --> 00:24:25.360 with the FBI translate so well to the business world 541 00:24:25.360 --> 00:24:29.400 because really that the key markers 542 00:24:29.400 --> 00:24:32.240 about our characteristics, about our conversations 543 00:24:32.240 --> 00:24:34.800 mirror that of a hostage negotiation. 544 00:24:34.800 --> 00:24:37.040 So well, it's uncanny. 545 00:24:37.040 --> 00:24:38.280 There's really three things. 546 00:24:38.280 --> 00:24:41.280 One is the stakes are high. 547 00:24:41.280 --> 00:24:43.520 There's a lot of money on the line. 548 00:24:43.520 --> 00:24:45.840 The opinions vary. 549 00:24:45.840 --> 00:24:48.840 The seller thinks one thing, the buyer thinks another 550 00:24:48.840 --> 00:24:50.960 and they're strong emotions. 551 00:24:50.960 --> 00:24:54.480 They're oftentimes we're wed to our ideas. 552 00:24:54.480 --> 00:24:56.720 And so when you have those three elements, 553 00:24:56.720 --> 00:25:01.280 that requires really, really strong empathy. 554 00:25:01.280 --> 00:25:04.520 And if you can use the tactical empathy that he teaches, 555 00:25:04.520 --> 00:25:07.920 you can get to what I have coined the thin place 556 00:25:07.920 --> 00:25:10.640 and that thin place allows you to really reach collaboration 557 00:25:10.680 --> 00:25:15.640 at a level that puts the seller in a place of comfort 558 00:25:15.640 --> 00:25:18.680 to actually say, yeah, please do talk to my tenants. 559 00:25:18.680 --> 00:25:22.400 Because he's now on our side of saying, 560 00:25:22.400 --> 00:25:25.160 we're trying to facilitate a transaction 561 00:25:25.160 --> 00:25:27.720 instead of having this defensive posture 562 00:25:27.720 --> 00:25:30.920 and this traditional, this is in between us 563 00:25:30.920 --> 00:25:32.760 and we can't see past this. 564 00:25:32.760 --> 00:25:34.440 So what we do is we move it over here 565 00:25:34.440 --> 00:25:37.120 and now you and I work together on this. 566 00:25:37.120 --> 00:25:39.880 And if we can get to this kind of a relationship, 567 00:25:39.880 --> 00:25:41.680 now it allows us to do some of these things 568 00:25:41.680 --> 00:25:45.280 that are a little bit maybe different than what the norm is 569 00:25:45.280 --> 00:25:48.360 because we're not afraid of the transaction falls apart. 570 00:25:48.360 --> 00:25:51.400 We believe we're people of faith. 571 00:25:51.400 --> 00:25:52.760 We believe God

owns everything 572 00:25:52.760 --> 00:25:55.160 and we're just gonna walk in faith and be stewards. 573 00:25:55.160 --> 00:25:56.360 And if we're good stewards 574 00:25:56.360 --> 00:26:00.080 and we can manage that relationship first well, 575 00:26:00.080 --> 00:26:02.000 then we're gonna have more doors open to us 576 00:26:02.000 --> 00:26:04.160 as we do our due diligence, 577 00:26:04.160 --> 00:26:06.240 which reveals more secrets, 578 00:26:06.240 --> 00:26:08.240 which ultimately gives us a better opportunity 579 00:26:08.240 --> 00:26:09.280 to develop a business plan 580 00:26:09.280 --> 00:26:12.240 that we can actually execute on with fewer surprises, 581 00:26:12.240 --> 00:26:14.960 which in the end is what our investors want, 582 00:26:14.960 --> 00:26:17.960 risk mitigation and returns that they can count on. 583 00:26:17.960 --> 00:26:22.520 And so that's just one example of how we go deep up front. 584 00:26:22.520 --> 00:26:24.800 We say go slow to go slow to go fast. 585 00:26:24.800 --> 00:26:26.120 Yeah, I love it, I love it. 586 00:26:26.120 --> 00:26:27.520 So let's fast forward. 587 00:26:27.520 --> 00:26:29.520 Obviously there's been quite a bit of changes 588 00:26:29.520 --> 00:26:33.280 that have happened not just in the multi-family space, 589 00:26:33.280 --> 00:26:34.200 but just generally speaking, 590 00:26:34.200 --> 00:26:37.640 I mean, historical rise and interest rates 591 00:26:37.800 --> 00:26:41.000 in such a short duration, I think 13, 14 months. 592 00:26:42.160 --> 00:26:43.920 We saw such an extreme hike. 593 00:26:43.920 --> 00:26:48.000 We've got a lot of other factors that are weighing against, 594 00:26:48.000 --> 00:26:49.720 just real estate in general right now. 595 00:26:49.720 --> 00:26:51.400 The devaluations, some markets, 596 00:26:51.400 --> 00:26:53.280 rents have actually gone down, 597 00:26:53.280 --> 00:26:54.920 not sure if that exists where you're at, 598 00:26:54.920 --> 00:26:56.880 but ultimately most of it's like Sunbelt States, 599 00:26:56.880 --> 00:27:01.880 where we've seen, instead of the double digit annual 600 00:27:03.040 --> 00:27:05.040 rate increases that occur for a number of years, 601 00:27:05.040 --> 00:27:09.000 now it's been a decline in rents and certain markets. 602 00:27:09.000 --> 00:27:11.080 But so I love to just get a sense from you guys. 603 00:27:11.080 --> 00:27:14.280 Like maybe I guess what your business look like today, 604 00:27:14.280 --> 00:27:16.080 when compared to maybe three years ago, 605 00:27:16.080 --> 00:27:17.800 prior to the rising interest rates 606 00:27:17.800 --> 00:27:19.640 and how are you navigating more specifically? 607 00:27:19.640 --> 00:27:23.240 How are you navigating some of the volatility 608 00:27:23.240 --> 00:27:24.240 in the marketplace? 609 00:27:25.440 --> 00:27:26.440 Yeah, great question. 610 00:27:26.440 --> 00:27:28.960 So our business in the lab, 611 00:27:28.960 --> 00:27:31.080 well, if you go back three years, 612 00:27:31.080 --> 00:27:34.160 it was fast and furious. 613 00:27:34.200 --> 00:27:35.600 There were a lot of transactions. 614 00:27:35.600 --> 00:27:36.960 There was a lot of movement. 615 00:27:38.200 --> 00:27:39.520 The rates being low obviously, 616 00:27:39.520 --> 00:27:41.120 facilitated a lot of that. 617 00:27:41.120 --> 00:27:44.480 It was harder to separate really the good deals 618 00:27:44.480 --> 00:27:47.440 from the bad because the emotion was so strong, right? 619 00:27:47.440 --> 00:27:49.160 One of those three things, right? 620 00:27:49.160 --> 00:27:50.680 There's so much emotion involved 621 00:27:50.680 --> 00:27:53.360 because there's a frenzy around real estate. 622 00:27:53.360 --> 00:27:56.560 A lot of people putting money in that maybe shouldn't have been. 623 00:27:58.200 --> 00:28:00.000 But over the last couple of years, Kevin, 624 00:28:00.000 --> 00:28:01.360 we've bought almost nothing. 625 00:28:02.200 --> 00:28:06.560 We are strictly cash flow buyers. 626 00:28:06.560 --> 00:28:10.760 Even day one, we have a pro forma 627 00:28:10.760 --> 00:28:12.560 and we have a business plan. 628 00:28:12.560 --> 00:28:13.960 But we say worst case scenario, 629 00:28:13.960 --> 00:28:16.960 we can't execute it for some reason. 630 00:28:16.960 --> 00:28:19.600 So how do we hang onto the asset? 631 00:28:19.600 --> 00:28:22.440 If we can't perform the business plan, 632 00:28:22.440 --> 00:28:23.720 if we can't get the rent increases, 633 00:28:23.720 --> 00:28:25.360 we can't do the renovations, 634 00:28:25.360 --> 00:28:27.160 we have to own it as it is. 635 00:28:27.160 --> 00:28:29.160 That's worst case, no improvement. 636 00:28:29.160 --> 00:28:30.800 Can we tolerate the tenants? 637 00:28:30.800 --> 00:28:32.440 Can we tolerate the rents? 638 00:28:32.440 --> 00:28:34.440 Can we still cash flow? 639 00:28:34.440 --> 00:28:38.040 And if we can, then we'll make an offer and buy the asset. 640 00:28:38.040 --> 00:28:41.320 And for a season there, there wasn't anything trading. 641 00:28:41.320 --> 00:28:43.760 And so in the mind of the seller, 642 00:28:43.760 --> 00:28:45.800 prices were still high. 643 00:28:45.800 --> 00:28:47.000 And they weren't ready to say, 644 00:28:47.000 --> 00:28:50.120 hey, they've readjusted and said, 645 00:28:50.120 --> 00:28:52.120 hey, now it's time to move this asset 646 00:28:52.120 --> 00:28:53.600 at a more reasonable rate, 647 00:28:53.600 --> 00:28:56.160 which I think we're starting to see a little bit now. 648 00:28:57.080 --> 00:29:00.160 Some of it has to do with the reason for selling. 649 00:29:00.920 --> 00:29:02.440 The last two deals, for example, 650 00:29:02.440 --> 00:29:07.040 that we've closed on our sellers' retirement 651 00:29:07.040 --> 00:29:09.840 and getting out of the business altogether. 652 00:29:09.840 --> 00:29:12.520 And that's gonna happen regardless of the rate environment. 653 00:29:12.520 --> 00:29:14.320 So they can hold on for a

few years, 654 00:29:14.320 --> 00:29:16.960 and now they're saying, I'm done. 655 00:29:16.960 --> 00:29:18.640 I've wanted to be done for five years. 656 00:29:18.640 --> 00:29:19.960 I should have sold four years ago. 657 00:29:19.960 --> 00:29:20.920 I didn't. 658 00:29:20.920 --> 00:29:24.960 Now it's back to where I think I can stomach these prices 659 00:29:24.960 --> 00:29:26.680 and still find some good deals. 660 00:29:26.680 --> 00:29:29.000 But there was a season where it got pretty dark 661 00:29:29.000 --> 00:29:30.600 and dry for a while. 662 00:29:30.600 --> 00:29:33.200 And then you just are relying on operational efficiencies 663 00:29:33.200 --> 00:29:35.440 and trying to be better at running your business 664 00:29:35.440 --> 00:29:38.280 and not so focused on acquiring more stuff. 665 00:29:38.280 --> 00:29:41.160 Are you guys primarily focused in kind of your backyard 666 00:29:41.160 --> 00:29:42.280 in the surrounding market place 667 00:29:42.280 --> 00:29:45.240 or have you gone outside of your market 668 00:29:45.240 --> 00:29:48.120 and outside of your state to the buy deals? 669 00:29:48.120 --> 00:29:50.840 No, we're buying in the Midwest. 670 00:29:50.840 --> 00:29:54.160 The majority of our assets are within an hour of Omaha. 671 00:29:54.160 --> 00:29:56.440 That's where we have a construction company, 672 00:29:56.440 --> 00:29:58.200 property management company, 673 00:29:58.200 --> 00:30:00.600 and all of our resources are right here. 674 00:30:00.600 --> 00:30:03.280 So obviously if we're gonna take down a deal 675 00:30:03.280 --> 00:30:06.160 that needs a bunch of work and as tenant issues, 676 00:30:06.160 --> 00:30:08.000 we wanna have boots on the ground. 677 00:30:08.000 --> 00:30:11.040 And so as kind of a rule, we won't buy an asset 678 00:30:11.040 --> 00:30:12.160 that's less than, well, 679 00:30:12.160 --> 00:30:13.760 actually it doesn't matter the number of doors. 680 00:30:13.760 --> 00:30:16.080 It has to have onsite management 681 00:30:16.080 --> 00:30:18.200 if it's outside of an hour from us 682 00:30:18.200 --> 00:30:19.880 so that we can become part of our team 683 00:30:19.880 --> 00:30:22.160 and be assimilated into our processes 684 00:30:22.160 --> 00:30:24.080 because for our guys to travel that distance 685 00:30:24.080 --> 00:30:25.440 is just inefficient. 686 00:30:25.440 --> 00:30:26.280 Sure. 687 00:30:27.080 --> 00:30:29.560 And then your sweet spinal deal size, 688 00:30:29.560 --> 00:30:31.240 I know you said any number of doors, 689 00:30:31.240 --> 00:30:33.280 but what have you found to be like your sweet side? 690 00:30:33.280 --> 00:30:34.600 Cause it's not like your ideal seller 691 00:30:34.600 --> 00:30:36.600 is truly a mom and pop owner. 692 00:30:36.600 --> 00:30:38.960 Maybe maybe it's not first generation 693 00:30:38.960 --> 00:30:41.560 but you also be someone that's owner for many years 694 00:30:41.560 --> 00:30:43.640 and might be aging out of the asset, looking to retire 695 00:30:43.640 --> 00:30:45.920 but maybe has had a little bit more involvement 696 00:30:45.920 --> 00:30:47.560 in the business that hasn't been completely passive 697 00:30:47.560 --> 00:30:50.440 for them and they're just getting tired of worn out. 698 00:30:50.440 --> 00:30:52.120 Maybe that's not entirely accurate 699 00:30:52.120 --> 00:30:54.800 but just that's what I kind of gather. 700 00:30:55.080 --> 00:30:56.800 I guess what does that make the sweet spot 701 00:30:56.800 --> 00:30:58.280 to be as far as size wise? 702 00:30:58.280 --> 00:31:00.320 Like what is your ideal size? 703 00:31:00.320 --> 00:31:02.520 Yeah, I know I think your spot on Kevin 704 00:31:02.520 --> 00:31:05.840 with your assessment are we call them tired landlords. 705 00:31:05.840 --> 00:31:07.640 Those guys are our favorite to deal with 706 00:31:07.640 --> 00:31:10.840 and whether it's age or disease 707 00:31:10.840 --> 00:31:14.000 or a combination of both are repositioning 708 00:31:14.000 --> 00:31:18.440 their own assets we've had owner operators 709 00:31:18.440 --> 00:31:20.360 that are now moving into triple net stuff 710 00:31:20.360 --> 00:31:23.600 where they were before operating rental properties. 711 00:31:23.960 --> 00:31:26.760 But yeah, that's our sweet spot. 712 00:31:26.760 --> 00:31:31.160 And generally what happens there is the asset size is smaller 713 00:31:31.160 --> 00:31:36.000 so we'll buy 40, 50, 60 unit buildings from these guys 714 00:31:36.000 --> 00:31:38.560 and then they have two or three others. 715 00:31:38.560 --> 00:31:40.880 And so collectively we might end up buying 100 716 00:31:40.880 --> 00:31:42.920 or 150 units from them 717 00:31:42.920 --> 00:31:47.240 but it takes multiple transactions to do so. 718 00:31:47.240 --> 00:31:49.640 For example, the last two that we closer 719 00:31:49.640 --> 00:31:51.840 from the same seller 720 00:31:52.000 --> 00:31:54.800 and we had purchased a building from him previously 721 00:31:54.800 --> 00:31:57.480 and so now that's the third building we're purchasing. 722 00:31:57.480 --> 00:31:58.920 We actually are going under contract 723 00:31:58.920 --> 00:32:01.640 on another 40 unit building here in Omaha 724 00:32:01.640 --> 00:32:04.120 from a guy that we bought the 88 unit building from 725 00:32:04.120 --> 00:32:05.480 several years ago. 726 00:32:05.480 --> 00:32:10.480 So we like the mid size assets ideally 727 00:32:11.080 --> 00:32:15.240 you're buying them locally because of our resources here 728 00:32:15.240 --> 00:32:17.680 and frankly the competition is a lot less fierce 729 00:32:17.680 --> 00:32:21.720 on a mid size asset than it is on a 150 plus unit building 730 00:32:21.760 --> 00:32:23.640 where you're getting institutional money 731 00:32:23.640 --> 00:32:27.040 and a lot of more sophisticated buyers and sellers 732 00:32:27.040 --> 00:32:28.920 that aren't interested in collaboration. 733 00:32:28.920 --> 00:32:30.720 They're interested

in transactions. 734 00:32:30.720 --> 00:32:31.800 That's right, that's right. 735 00:32:31.800 --> 00:32:32.640 Now that's great. 736 00:32:32.640 --> 00:32:34.240 I'm glad to hear you had made a comment 737 00:32:34.240 --> 00:32:35.680 that you just really haven't bought that much 738 00:32:35.680 --> 00:32:36.480 in the last couple of years 739 00:32:36.480 --> 00:32:39.360 but it sounds like maybe that might be changing. 740 00:32:39.360 --> 00:32:42.000 There's some things in a pipeline, things that are working. 741 00:32:42.000 --> 00:32:44.280 Again, using the example of, 742 00:32:44.280 --> 00:32:47.720 it sounds like you bought a number of properties 743 00:32:47.720 --> 00:32:50.000 from this one seller and he's got this one remaining. 744 00:32:50.000 --> 00:32:51.400 You're about to go into contract with it. 745 00:32:51.440 --> 00:32:53.280 He's probably just been holding on for the last couple of years. 746 00:32:53.280 --> 00:32:58.280 It's not truly believing that his property is now not valued 747 00:32:58.400 --> 00:33:00.400 as what it was two and a half years ago, right? 748 00:33:00.400 --> 00:33:03.080 Like probably much less per door 749 00:33:03.080 --> 00:33:04.840 than maybe what he bought his other assets for. 750 00:33:04.840 --> 00:33:06.760 And so, but now he's like, okay, 751 00:33:06.760 --> 00:33:08.640 well, this is not changing overnight. 752 00:33:08.640 --> 00:33:10.080 Things are not going to get it better overnight 753 00:33:10.080 --> 00:33:11.880 and it's either I kind of hold on 754 00:33:11.880 --> 00:33:15.600 for probably multiple more years or I'm probably good enough. 755 00:33:15.600 --> 00:33:18.440 Like I've got enough, my lifestyle is probably going to change 756 00:33:18.440 --> 00:33:20.960 if I take five or 10, 15,000 less per door 757 00:33:21.240 --> 00:33:22.720 and I'll still do quite well. 758 00:33:22.720 --> 00:33:24.720 So let's move it on. 759 00:33:24.720 --> 00:33:26.040 His priorities have shift. 760 00:33:26.040 --> 00:33:28.480 That's very, very on point, Kevin, 761 00:33:28.480 --> 00:33:32.640 because it is not only is his attention on these assets 762 00:33:32.640 --> 00:33:35.400 or his willingness to attend to these assets dwindling, 763 00:33:35.400 --> 00:33:37.200 his attention is shifting to other things. 764 00:33:37.200 --> 00:33:40.480 He just bought a multimillion dollar house in Colorado 765 00:33:40.480 --> 00:33:42.000 and wants to spend more time. 766 00:33:42.000 --> 00:33:43.840 He loves to ski, he loves to mountain bike. 767 00:33:43.840 --> 00:33:45.960 It's a 70 year old guy and he's very active. 768 00:33:45.960 --> 00:33:50.200 And so yeah, he's now seeing himself in another phase 769 00:33:50.320 --> 00:33:52.560 in his mind and this is more of a nuisance 770 00:33:52.560 --> 00:33:54.960 and more of like something holding him back. 771 00:33:54.960 --> 00:33:58.080 People don't always sell just for financial reasons. 772 00:33:58.080 --> 00:33:58.920 That's right. 773 00:33:58.920 --> 00:33:59.840 No, I agree with that. 774 00:33:59.840 --> 00:34:04.200 So fast forward to today or this won't be released 775 00:34:04.200 --> 00:34:05.120 until after the election, 776 00:34:05.120 --> 00:34:06.920 but we're not going to talk politics really here, 777 00:34:06.920 --> 00:34:08.280 but I think more specifically, 778 00:34:08.280 --> 00:34:10.480 everyone's got their own opinion on maybe what the future might 779 00:34:10.480 --> 00:34:13.400 look like, at least as it relates to the real estate market 780 00:34:13.400 --> 00:34:14.920 and the economic cycle that we're in. 781 00:34:14.920 --> 00:34:19.320 And I guess based on whatever your opinions might be, 782 00:34:19.400 --> 00:34:20.280 we don't need to go down that road, 783 00:34:20.280 --> 00:34:22.200 but I guess what are you most excited about here 784 00:34:22.200 --> 00:34:23.880 over the next year or two? 785 00:34:23.880 --> 00:34:25.560 As relates to your business growing it 786 00:34:25.560 --> 00:34:29.320 or just anything in general related to what the future holds 787 00:34:29.320 --> 00:34:31.320 or what the future has in store? 788 00:34:31.320 --> 00:34:35.720 Yeah, I think it's sort of a double edged sword 789 00:34:35.720 --> 00:34:37.080 at this election in my view. 790 00:34:37.080 --> 00:34:40.360 I think on one hand, if we get Trump, 791 00:34:40.360 --> 00:34:44.200 I think he's very pro business and very stimulative 792 00:34:44.200 --> 00:34:45.520 to the economy. 793 00:34:45.520 --> 00:34:48.160 And I think that's in, you give us some tailwinds 794 00:34:48.160 --> 00:34:51.640 and some favor for I think people to feel aggressive 795 00:34:51.640 --> 00:34:54.400 or comfortable, maybe not aggressive, to trade, 796 00:34:54.400 --> 00:34:56.760 to know that there's going to be some friendly environments 797 00:34:56.760 --> 00:34:58.960 related to business transactions. 798 00:34:58.960 --> 00:35:02.320 And I think I'm along the other side with more stimulus 799 00:35:02.320 --> 00:35:05.520 and more helping the working class 800 00:35:05.520 --> 00:35:07.480 as she's promising to do. 801 00:35:07.480 --> 00:35:09.280 I think creates more challenges 802 00:35:09.280 --> 00:35:10.360 for the real estate market, 803 00:35:10.360 --> 00:35:13.240 specifically the single family space. 804 00:35:13.240 --> 00:35:16.600 You know, how does the, how to have become more affordable 805 00:35:16.600 --> 00:35:20.720 when you're given buyers cash to go by, 806 00:35:20.720 --> 00:35:25.040 I think there's some misgivings around how that actually works. 807 00:35:25.040 --> 00:35:27.160 And it sounds to me to be more of a talking point. 808 00:35:27.160 --> 00:35:33.640 But I'm genuinely concerned if we have a Kamala Harris 809 00:35:33.640 --> 00:35:38.840 presidency related to policy related to regulation 810 00:35:38.840 --> 00:35:43.400 overreach taxation, there's just a lot of things 811 00:35:43.680 --> 00:35:46.600 that

have me and other small business owners 812 00:35:46.600 --> 00:35:48.480 that are in the same boat as I am, 813 00:35:48.480 --> 00:35:50.640 just wondering how does this affect us? 814 00:35:50.640 --> 00:35:54.560 I mean, the one simple thing of taxing unrealized capital gains, 815 00:35:54.560 --> 00:35:59.720 I can't imagine how that would work. 816 00:35:59.720 --> 00:36:03.680 And you know, you would disincentivize all of us 817 00:36:03.680 --> 00:36:06.360 from buying and investing. 818 00:36:06.360 --> 00:36:09.240 And so again, I'm a person of faith 819 00:36:09.240 --> 00:36:10.560 and I trust the God as a plan 820 00:36:10.560 --> 00:36:12.320 and we're going to make money either way. 821 00:36:13.280 --> 00:36:17.120 And our wellbeing as a family is not hinged on 822 00:36:17.120 --> 00:36:19.640 who's in the, in the White House. 823 00:36:19.640 --> 00:36:21.200 But to answer your question directly, 824 00:36:21.200 --> 00:36:25.280 I'm definitely much more pro business, pro liberty, 825 00:36:25.280 --> 00:36:27.320 you know, get out of our way, 826 00:36:27.320 --> 00:36:29.760 let us, let us do what we think is best. 827 00:36:29.760 --> 00:36:30.920 That's right. 828 00:36:30.920 --> 00:36:34.280 So obviously, you know, which way I would, would lean. 829 00:36:34.280 --> 00:36:35.560 Yeah, no, no, fantastic. 830 00:36:35.560 --> 00:36:37.400 And then as far as, you know, rates, 831 00:36:37.400 --> 00:36:39.600 I mean, obviously this time we'll tell what the Fed does. 832 00:36:39.600 --> 00:36:41.200 But I mean, it sounds like you're already starting to see 833 00:36:41.200 --> 00:36:43.800 at least in your world where you're focusing on buying assets. 834 00:36:43.800 --> 00:36:46.040 It sounds like you're already starting to see some, 835 00:36:46.040 --> 00:36:49.040 just some lighting of, of, I guess, 836 00:36:49.040 --> 00:36:50.720 or I guess you should say, you know, expansion 837 00:36:50.720 --> 00:36:53.320 of transactional opportunities, right? 838 00:36:53.320 --> 00:36:55.480 Just deals actually come to the market now. 839 00:36:55.480 --> 00:36:57.880 And I don't know if you're seeing the same, 840 00:36:57.880 --> 00:37:00.080 but I know that what we've personally experienced, 841 00:37:00.080 --> 00:37:02.040 we've had a great, I really last two years, 842 00:37:02.040 --> 00:37:04.400 but then again, we didn't buy a lot during 2021, 843 00:37:04.400 --> 00:37:06.280 late 2020, 2021, 2021, 2022. 844 00:37:06.280 --> 00:37:08.400 In fact, we sold quite a bit and did really well. 845 00:37:08.400 --> 00:37:11.440 And, but then it really put us in a position 846 00:37:11.440 --> 00:37:13.360 when what other folks couldn't buy 847 00:37:13.360 --> 00:37:15.560 or we're dealing with, you know, damage control 848 00:37:15.560 --> 00:37:18.840 or, you know, debt maturities or, you know, capital calls, 849 00:37:18.840 --> 00:37:20.600 all these other things that have kind of played out 850 00:37:20.600 --> 00:37:23.040 in the last two years, I think still came to the market. 851 00:37:23.040 --> 00:37:24.560 Not only we'd have to look at like three X, 852 00:37:24.560 --> 00:37:26.360 the number of deals to find a one that's still penciled, 853 00:37:26.360 --> 00:37:28.200 right, trying to be disciplined with our decision, 854 00:37:28.200 --> 00:37:30.240 but we found great opportunities. 855 00:37:30.240 --> 00:37:32.680 And I think there's, I guess the more that story is, 856 00:37:32.680 --> 00:37:36.040 there's always opportunities, no matter what, 857 00:37:36.040 --> 00:37:37.560 or the economic cycle that we're in. 858 00:37:37.600 --> 00:37:39.320 I think you just have to be, 859 00:37:39.320 --> 00:37:41.480 yet to be diligent and yet to be disciplined. 860 00:37:41.480 --> 00:37:43.720 And if you stick to the underlying fundamentals, 861 00:37:43.720 --> 00:37:45.560 which they don't change, right? 862 00:37:45.560 --> 00:37:48.040 Like you just, the fundamentals don't change. 863 00:37:48.040 --> 00:37:49.920 And so, so long as you don't lie to yourself 864 00:37:49.920 --> 00:37:52.880 and you don't, you know, just do a deal to do a deal, 865 00:37:52.880 --> 00:37:54.840 just to be a transactional based type of business. 866 00:37:54.840 --> 00:37:56.720 And you really have a bigger vision and mission 867 00:37:56.720 --> 00:37:57.800 for your company. 868 00:37:57.800 --> 00:38:00.000 I think inevitably you'll find success, 869 00:38:00.000 --> 00:38:01.160 both short and long-term. 870 00:38:01.160 --> 00:38:03.720 So just, we're doing, you know, things are going great 871 00:38:03.720 --> 00:38:06.200 in our business and, but I do, it's opening up a little bit, 872 00:38:06.200 --> 00:38:08.440 which, but I think there's the flip side to that. 873 00:38:08.440 --> 00:38:09.960 There's pros and cons, right? 874 00:38:09.960 --> 00:38:11.560 Pros are like more transactions, 875 00:38:11.560 --> 00:38:15.520 but also cons are, might be more competition now as well. 876 00:38:15.520 --> 00:38:17.760 It's, you know, especially if Trump gets an office, 877 00:38:17.760 --> 00:38:19.960 I've see it's, you know, he's a pro business, 878 00:38:19.960 --> 00:38:21.720 if 100% bonus appreciation of that, 879 00:38:21.720 --> 00:38:23.840 which I want more than anything else. 880 00:38:23.840 --> 00:38:26.920 You know, it just more folks come off the sidelines as well. 881 00:38:26.920 --> 00:38:31.120 So pros and cons of whatever the outcome might be. 882 00:38:31.120 --> 00:38:34.960 We are in the Midwest here, we're an ag-based economy. 883 00:38:34.960 --> 00:38:39.960 And so, you know, we look at our world through these seasons 884 00:38:40.760 --> 00:38:42.680 and not so much chronological time. 885 00:38:42.680 --> 00:38:45.040 We think more about, you know, it's time to plant, 886 00:38:45.040 --> 00:38:47.880 it's time to harvest, it's time to cultivate 887 00:38:47.880 --> 00:38:49.440 and those sorts of things. 888 00:38:49.440 -->

00:38:51.880 And I think that's sort of what the last few years 889 00:38:51.880 --> 00:38:55.640 have represented for us, where we've spent more time, 890 00:38:55.640 --> 00:38:57.560 you know, working on the machinery, 891 00:38:57.560 --> 00:39:00.960 making sure it's ready, the harvest was over. 892 00:39:00.960 --> 00:39:03.960 And we had to bring everything into the barn and tear it apart 893 00:39:03.960 --> 00:39:06.840 and make sure it's ready to go and work on everything 894 00:39:06.840 --> 00:39:08.600 so that when the next harvest comes, we're ready. 895 00:39:08.600 --> 00:39:10.160 And I feel like we're poised for that. 896 00:39:10.160 --> 00:39:11.960 It sounds like you guys are too. 897 00:39:11.960 --> 00:39:12.800 Yeah. 898 00:39:12.800 --> 00:39:16.280 And that's a good thing because we're going to be taking 899 00:39:16.280 --> 00:39:19.520 advantage of some opportunities that I think are yet to come 900 00:39:19.520 --> 00:39:21.720 through some of these debt maturities that you're talking about. 901 00:39:21.720 --> 00:39:26.200 And maybe some rates, hopefully, 902 00:39:26.200 --> 00:39:29.520 softening a little bit, who knows exactly what's going to happen there. 903 00:39:29.600 --> 00:39:32.960 But some favorable things that should help us 904 00:39:32.960 --> 00:39:35.840 that are ready to capitalize on those opportunities. 905 00:39:35.840 --> 00:39:37.200 Yeah, that's a great analogy by the way. 906 00:39:37.200 --> 00:39:38.600 I love that. 907 00:39:38.600 --> 00:39:40.480 I can't use it again because I'm not a farmer 908 00:39:40.480 --> 00:39:43.400 and I don't live in ag-based, but like that's phenomenal. 909 00:39:43.400 --> 00:39:44.600 I love that analogy. 910 00:39:44.600 --> 00:39:49.080 So Mike, for those that want to learn more about your group, 911 00:39:49.080 --> 00:39:53.160 opportunities, where's the best place to track you down? 912 00:39:53.160 --> 00:39:57.120 The very best place is to go to our website freebyrealistate.com. 913 00:39:57.320 --> 00:40:02.000 I'm also very active on social, Michael Kramer on Facebook, 914 00:40:02.000 --> 00:40:04.440 Instagram, those sorts of places. 915 00:40:04.440 --> 00:40:08.080 But I'd say the very best place is to go to our website freebyrealistate.com. 916 00:40:08.080 --> 00:40:08.960 Alrighty, well, fantastic. 917 00:40:08.960 --> 00:40:10.480 Guys, we'll put that in show notes and Mike. 918 00:40:10.480 --> 00:40:12.200 It's been a pleasure meeting you and speaking with you. 919 00:40:12.200 --> 00:40:14.880 Appreciate the great insights and wishing you all the best. 920 00:40:14.880 --> 00:40:15.720 Likewise, Kevin. 921 00:40:15.720 --> 00:40:16.480 I've enjoyed the time. 922 00:40:16.480 --> 00:40:17.760 Thanks for having me. 923 00:40:17.760 --> 00:40:19.280 Alrighty, guys, that's all we have for this week's show. 924 00:40:19.280 --> 00:40:22.160 So until we meet again next week, this is your host, Kevavup, 925 00:40:22.160 --> 00:40:24.080 wishing you huge success. 926 00:40:24.080 --> 00:40:25.240 Take care. 927 00:40:25.240 --> 00:40:26.720 Congratulations. 928 00:40:26.720 --> 00:40:29.280 Now you've got more of the best tricks of the trade 929 00:40:29.280 --> 00:40:33.040 in building massive amounts of passive income from real estate. 930 00:40:33.040 --> 00:40:38.360 For more amazing resources, visit real estate investing for cashflow.com. 931 00:40:38.360 --> 00:40:40.560 We'll see you next Monday morning.