Remodeling, Value-add Deals, Bridge Loans, and More with Prashant Satoskar

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[casey_]: hey there and welcome to today's episode
of cash flow pro your daily real estate

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[casey_]: investing podcast and youtube channel i'm here
today with peshantsatiscar catalyst equity partners present how

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[casey_]: are you today

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[prashant]: doing well thank you for having me
here

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[casey_]: absolutely man we're glad you're with us
i know it's hard sometimes to get to

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[casey_]: get time to be with us and
share your story but we're all kind of

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[casey_]: interested in in diving right in finding
out you know how you got in the

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[casey_]: real estate business where you where you
saw your entrance at what you were maybe

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[casey_]: exciting if you had a previous what
i call in this business of previous life

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[casey_]: which i think most of us have
of just other things we were doing for

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[casey_]: entreprenorial reasons but let us to be
in real estate in real estate indication so

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[casey_]: tell us a little bit about stuff
and how you got started

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[prashant]: absolutely so i grew up in india
so i came to the u s when

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[prashant]: i was twenty twenty two twenty three
for my engineering education came here from my

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[prashant]: grad school graduated late nine that's when
the tech technology boom was picking up so

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[prashant]: jumped on that band wagon and we
really spent twenty plus years in the technology

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[prashant]: fields or engineer technology fields or kind
of covering technologies if you may call it

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[prashant]: right now but along the way i
was always interested in real estate i was

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[prashant]: dabbling in it i bought some single
families along the way starting around two thousand

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[prashant]: seven ish had a handful of them
you know few in florida a couple in

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[prashant]: dallas but i did like the cash
flow aspect of it but what i hated

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[prashant]: was just the management you know dealing
with tenants

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[casey_]: yeah

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[prashant]: you know

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[casey_]: through

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[prashant]: you know

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[casey_]: the teas all the teas tenants trash
termites and so

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[prashant]: exactly

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[casey_]: on

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[prashant]: exactly and i'm i'm not a handy
man and kind of a guy so i

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[prashant]: can barely change a light bulb in
my

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[casey_]: oh

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[prashant]: own house so when somebody called me
for a toilet fix or plumbing i had

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[prashant]: no clue how to go about dealing
with that stuff so ways

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[casey_]: sure

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[prashant]: i mean so that was really when
i started thinking and i wanted to make

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[prashant]: my life easier so around twenty fifteen
twenty sixteen really i was thinking me and

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[prashant]: my wife were thinking that maybe we
should sell all these multiple single families and

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[prashant]: i like a six ples or an
eight ples to kind of simplify our problem

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[prashant]: may still have some problems but at
least in one location rather than ten different

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[prashant]: locations right

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[casey_]: yep

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[prashant]: so as i was exploring option i
started going to these meet ups and you

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[prashant]: know local groups here in dallas where
i live

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[casey_]: hm

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[prashant]: i quickly learned that you know i
mean i got exposed to this whole concept

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[prashant]: of large multi family investing i had
never i had no clue that existed i

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[prashant]: didn't know people like you and me
could actually buy by this large multi family

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[prashant]: you know complexes so that was kind
of an eye opener for me and you

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[prashant]: know i learned about you know how
people are buying these sixty units in larger

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[prashant]: complexes how they're raising money from

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[casey_]: yeah

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[prashant]: others to

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[casey_]: yeah

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[prashant]: do this indication style investing so that
was very intriguing and and i started you

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[prashant]: know first as a passive invested in
one day to try to explore how that

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[prashant]: works and the check started rolling in
monthly quarterly hey this is exactly

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[casey_]: yeah

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[prashant]: what i was looking for i like
the real estate side i like the cash

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[prashant]: flow i don't want to deal with
the tenants so here

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[casey_]: yeah

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[prashant]: it is this is this is where
i you know this is what i was

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[prashant]: looking for really

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[casey_]: sure

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[prashant]: oh

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[casey_]: sure man

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[prashant]: yeah

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[casey_]: that's that's definitely where a lot of
people get the start and get the bug

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[casey_]: of saying hey man i didn't have
to do anything during this or not necessary

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[casey_]: don't earn this but this is this
is truly passive life right

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[prashant]: it is

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[casey_]: and

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[prashant]: it is yeah

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[casey_]: so

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[prashant]: yeah

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[casey_]: what does your what does this business
look like today how many doors do you

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[casey_]: all have or complexes or however you
quantify it what does that look like

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[prashant]: yeah so right now so let me
take a step back here so i started

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[prashant]: as a passive investor in twenty sixteen
did that for a little while i sold

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[prashant]: all of my single families invested in
twenty

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[casey_]: yeah

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[prashant]: two thousand units or so passively

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[casey_]: okay

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[prashant]: and then i you know i'm an
engineer i used to be an entrepreneur so

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[prashant]: that enreprenel bug bug kind of kicked
in and said he you know what the

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[prashant]: sponsors whoever are leading this project you
know i know i know i know the

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[prashant]: numbers i understand what they're doing why
don't i do it myself

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[casey_]: there you go

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[prashant]: so in

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[casey_]: there

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[prashant]: twenty

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[casey_]: you go

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[prashant]: yeahs twenty seventeen i hooked up with
a business partner and started catlisequityp norse back

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[prashant]: then so twenty seventeen is when we
started and kind of grew the company now

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[prashant]: to two thousand units three hundred million
plus assets under management and now were

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[casey_]: wow

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[prashant]: you know lead lead g ps

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[casey_]: oh

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[prashant]: and doing big deals so

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[casey_]: man

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[prashant]: was a

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[casey_]: yeah shoot yeah so so are you
able do you have key partners and stuff

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[casey_]: like that and i know some of
the bigger deals is what really gets people

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[casey_]: kind of caught up when i say
bigger deals i'm talking out like say ten

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[casey_]: plus million um

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[prashant]: yes

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[casey_]: where somebody says i don't know that
i would ever qualify for a lone that

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[casey_]: big what do you have key partners
involved do you key partner yourself or key

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[casey_]: principle do you do you do that
yourself or do you have several of those

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[casey_]: involved

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[prashant]: we do quite a bit ourselves but
sometimes we do get some additional cogps to

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[prashant]: you know sign on the loans to
fill any gaps that we may have so

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[casey_]: sure

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[prashant]: absolutely

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[casey_]: sure yeah yeah

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[prashant]: yeah

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[casey_]: and of course you don't know those
gaps till you get into it and figure

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[casey_]: out start start dissecting people's income and
their networks and so on so

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[prashant]: absolutely

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[casey_]: um

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[prashant]: absolutely yeah

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[casey_]: what do you what do you all
hae going on right now are you are

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[casey_]: you currently

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[prashant]: yeah sorry

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[casey_]: trying

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[prashant]: go ahead

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[casey_]: to are you currently raising or curntly
trying to make deals down what you got

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[casey_]: going on right now

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[prashant]: actually yes we are actually closing on
a deal tomorrow it's a two under units

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[prashant]: class asset in houston

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[casey_]: wow

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[prashant]: big deal our our biggest deals so
far yeah

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[casey_]: what was the purchase price of that

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[prashant]: well there on sixty five million

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[casey_]: dan what was the equity raise

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[prashant]: was twenty eight million

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[casey_]: oh my gosh

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[prashant]: yeah

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[casey_]: there's just some value add stuff

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[prashant]: yeah it was great deal in a
great location you know place called sugar land

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[prashant]: near used

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[casey_]: hm

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[prashant]: in really good suburb so first generation
two thousand four built you know first generation

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[prashant]: value ad so it's untouched so

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[casey_]: wow

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[prashant]: we're going to go in and totally
transform the asset

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[casey_]: yeah yeah what when you say okay
so i want to dive in a little

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[casey_]: bit here on the value add part
of let's talk about that specific deal um

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[casey_]: what i think a lot of eople
get lost in in what the value ad

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[casey_]: part is now it's obviously pretty easy
to say hey we're going to add a

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[casey_]: swimming pool we're going to value add
we're going to remodel units we're going to

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[casey_]: value add but the other part of
the you add it's kind of a duel

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[casey_]: meaning meaning we're going to add value
to the tenants life but we're also going

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[casey_]: to add value to the property buying
by doing things where we can increase the

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[casey_]: rent so what does the value add
proposition look like on that and then what

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[casey_]: do you what how did that how
does that look on the horizon way out

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[casey_]: like say two or three years down
the road

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[prashant]: absolutely so this is like i said
i mean building two thousand four untouched none

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[prashant]: of the previous owners had done any
upgrade to the property so

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[casey_]: hm

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[prashant]: so it's from our perspective we're gonna
go in and completely transform this property inside

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[prashant]: and out so on the outside you
know literally you know starting with differed manton

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[prashant]: like changing the roofs you know fixing
parking lots and stuff so that's every property

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[prashant]: has that but you know improving the
man is that it does have obsuming pool

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[prashant]: and club but we're gonna you know
spruce it up add some of their additional

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[prashant]: amenities out there to make it more
attractive for quality rest residents to come in

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[prashant]: right

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[casey_]: yeah

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[prashant]: and from true revenue value at from
that standpoint a bunch of stuff you're doing

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[prashant]: a you know standard unit up grades
units are really old style brown cabinets a

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[prashant]: lot of them still have

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[casey_]: hm

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[prashant]: carpet you know black appliances so we're
going to transform that little bit more modern

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[prashant]: finishes you know gray

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[casey_]: a

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[prashant]: two tone pained and quarts counter tops
black mat finish um so that in itself

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[prashant]: we are projecting a two and fifty
dollar rent bomb right on that you know

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[casey_]: what do you

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[prashant]: inter

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[casey_]: what do you think the cost what's
the cost per unit what are you estimating

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[casey_]: the cost per unit on that to
be

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[prashant]: it's anywhere from eight thousand to leven
thousand depending on the finish

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[casey_]: a

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[prashant]: we're gonna do we have two different
finishes we're going to do so

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[casey_]: so if you're looking at a if
you're looking at a two to fifty two

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[casey_]: fifty dollar month rent bump and that's
three thousand dollars a year and it's even

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[casey_]: at the high end eleven thousand dollars
to remodel it it's pretty damn good return

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[casey_]: on your money

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[prashant]: yeah

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[casey_]: i

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[prashant]: yeah

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[casey_]: mean

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[prashant]: i mean you

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[casey_]: now you're talking almost twenty five per
cent return

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[prashant]: oh

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[casey_]: of course some of that's going to
depreciate but five or six years you've got

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[casey_]: your money back and you've got almost
a brand new asset at the time you

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[casey_]: know especially

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[prashant]: yeah

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[casey_]: if you start talking about courts counter
tops and stuff like that because that stuff

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[casey_]: doesn't they don't get destroyed like for
mica and you can set hot pans on

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[casey_]: on stuff like that so wow that's
interesting m eight to eleven

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[prashant]: absolutely

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[casey_]: thousand dollars per unit on two hundred
eighty eight units

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[prashant]: yeah yeah and if you if you
do the cap rate calculations on that right

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[prashant]: if you multiply two to fifty per
month multiplied by two eighty eight multiplied by

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[prashant]: twelve divide that by a five cap
you're talking about lions of dollars of you

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[prashant]: know added value to the asset right

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[casey_]: yeah

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[prashant]: right there

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[casey_]: yeah yeah

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[prashant]: and then

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[casey_]: millions

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[prashant]: yeah yeah

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[casey_]: and you're only talking about even if
you were like let's say ten thousand dollars

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[casey_]: units who re eighty eight units um
two point eight million dollars right two point

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00:10:39,744 --> 00:10:44,935
[casey_]: eight eight million and so so you're
probably adding ten or twelve million on the

218
00:10:44,975 --> 00:10:49,028
[casey_]: cap rate what what caporate was what
caporteis it sitting at right now

219
00:10:50,140 --> 00:10:52,342
[prashant]: we are going in at a four
and a half so that's

220
00:10:52,718 --> 00:10:53,251
[casey_]: hm

221
00:10:53,263 --> 00:10:56,226
[prashant]: super strong for two and four asset
so

222
00:10:56,601 --> 00:10:56,902
[casey_]: really

223
00:10:56,786 --> 00:10:56,987
[prashant]: yeah

224
00:10:57,323 --> 00:10:57,523
[casey_]: okay

225
00:10:57,627 --> 00:10:57,787
[prashant]: yeah

226
00:10:58,245 --> 00:10:58,446
[casey_]: okay

227
00:10:58,248 --> 00:10:58,848
[prashant]: for that for

228
00:10:58,887 --> 00:10:58,967
[casey_]: and

229
00:10:58,888 --> 00:10:59,028
[prashant]: that

230
00:10:59,027 --> 00:10:59,188
[casey_]: then

231
00:10:59,089 --> 00:10:59,589
[prashant]: particular ship

232
00:11:00,591 --> 00:11:03,558
[casey_]: i'm assuming as you're going in at
a four and a half you're hoping to

233
00:11:04,040 --> 00:11:06,466
[casey_]: expand that a little bit i guess
as

234
00:11:06,943 --> 00:11:07,631
[prashant]: i mean the market

235
00:11:07,288 --> 00:11:07,529
[casey_]: as

236
00:11:08,530 --> 00:11:12,416
[prashant]: yeah the market cap rate for that
sub market right now is high trees so

237
00:11:12,476 --> 00:11:17,084
[prashant]: we just got a better deal it's
a off market transaction out of stage seller

238
00:11:17,304 --> 00:11:21,171
[prashant]: you wanted to get out of there
so we just negotiated a good rice and

239
00:11:21,531 --> 00:11:21,952
[prashant]: were getting

240
00:11:21,894 --> 00:11:22,096
[casey_]: what

241
00:11:21,992 --> 00:11:25,639
[prashant]: it at a higher cap rate than
what it should be trading at right

242
00:11:25,951 --> 00:11:30,119
[casey_]: how how did the off market deal
come about

243
00:11:31,260 --> 00:11:33,464
[prashant]: relationships i mean that's the beauty

244
00:11:33,451 --> 00:11:33,835
[casey_]: broker

245
00:11:33,544 --> 00:11:34,325
[prashant]: of this business

246
00:11:34,379 --> 00:11:34,762
[casey_]: broker

247
00:11:34,946 --> 00:11:37,591
[prashant]: broker broker relationships you been at it

248
00:11:37,714 --> 00:11:37,877
[casey_]: wow

249
00:11:37,791 --> 00:11:41,738
[prashant]: you know that's so you stay in
the game build those relationships and in the

250
00:11:41,838 --> 00:11:47,485
[prashant]: end you know really that's all that
you know matters in this business right you

251
00:11:47,545 --> 00:11:48,026
[prashant]: know whether

252
00:11:47,922 --> 00:11:48,045
[casey_]: yeah

253
00:11:48,126 --> 00:11:53,355
[prashant]: it's broker relationship to get deals or
invested relationship to get the money so it's

254
00:11:53,415 --> 00:11:55,879
[prashant]: all a relationship business in the end
so you

255
00:11:56,012 --> 00:11:56,173
[casey_]: that's

256
00:11:56,220 --> 00:11:56,782
[prashant]: unfortunate

257
00:11:56,254 --> 00:11:56,436
[casey_]: right

258
00:11:57,003 --> 00:12:02,827
[prashant]: yah we've been fortunate to have you
know built build a reputation and brokers know

259
00:12:02,967 --> 00:12:06,917
[prashant]: as we get a lot of market
looks at deals now

260
00:12:07,791 --> 00:12:13,360
[casey_]: yeah yeah and that's an i'll tell
you those off market looks it deals because

261
00:12:13,921 --> 00:12:21,112
[casey_]: it's always like it's always to me
seems something goes on market it automatically gets

262
00:12:21,152 --> 00:12:27,038
[casey_]: a ten percent bump um not just
not just because of the demand for people

263
00:12:27,118 --> 00:12:32,032
[casey_]: looking at him and wanting to make
offers on him but i think the agent

264
00:12:32,092 --> 00:12:36,299
[casey_]: really comes in and s like or
the broker comes in i'm talking about once

265
00:12:36,359 --> 00:12:40,406
[casey_]: it goes on the market and it
just seems to me like it's always once

266
00:12:40,446 --> 00:12:43,230
[casey_]: you get that pricing guidance and you
can really start to

267
00:12:43,230 --> 00:12:43,457
[prashant]: oh

268
00:12:43,431 --> 00:12:46,861
[casey_]: meaning whether or not there's been a
lot of home work done on it and

269
00:12:46,901 --> 00:12:49,429
[casey_]: then you kind of go from there
so um

270
00:12:49,390 --> 00:12:49,551
[prashant]: yeah

271
00:12:50,201 --> 00:12:54,828
[casey_]: i'd like to talk a little bit
i'm just i'm glad you're closing the deal

272
00:12:54,888 --> 00:12:57,793
[casey_]: tomorrow because a lot of this stuff
is pretty fresh i guess it seems like

273
00:12:57,853 --> 00:12:59,356
[casey_]: in your mind but let's talk a

274
00:12:59,320 --> 00:12:59,482
[prashant]: yeah

275
00:12:59,396 --> 00:13:04,524
[casey_]: little bit about the do diligence because
a lot of eople kind of seem to

276
00:13:04,565 --> 00:13:08,711
[casey_]: get a little bit lost on the
due diligence part where not lost in what

277
00:13:08,751 --> 00:13:12,958
[casey_]: they need to do but you know
was there any kind of outstanding issues with

278
00:13:13,019 --> 00:13:17,486
[casey_]: the property that may be you had
to do special testing on or anything like

279
00:13:17,526 --> 00:13:19,169
[casey_]: that to get to figure them out

280
00:13:20,570 --> 00:13:26,440
[prashant]: now fortunately the nice thing about buying
these newer deals is there's a lot less

281
00:13:26,540 --> 00:13:29,245
[prashant]: of those issues that you're referring to
right i

282
00:13:29,222 --> 00:13:29,363
[casey_]: yeah

283
00:13:29,265 --> 00:13:30,627
[prashant]: mean we originally

284
00:13:30,562 --> 00:13:30,845
[casey_]: actually

285
00:13:30,707 --> 00:13:31,028
[prashant]: started

286
00:13:30,926 --> 00:13:31,228
[casey_]: class

287
00:13:31,108 --> 00:13:31,208
[prashant]: by

288
00:13:31,370 --> 00:13:31,915
[casey_]: a stuff

289
00:13:32,450 --> 00:13:38,180
[prashant]: yeah class stuff right we started our
careers in twenty seventeen buying se class assets

290
00:13:38,240 --> 00:13:41,846
[prashant]: and that's where the dew deligience really
came into play right you got to look

291
00:13:41,946 --> 00:13:48,277
[prashant]: at plumbing shoes and fish shoes and
a lot of other environmental issues and all

292
00:13:48,317 --> 00:13:53,225
[prashant]: that stuff so not a whole lot
here but we still obviously go through and

293
00:13:53,326 --> 00:13:59,785
[prashant]: do now to new religions we have
our in house construction team now so walking

294
00:13:59,845 --> 00:14:04,892
[prashant]: all the units getting all the trades
in you know still do the plumbing check

295
00:14:05,012 --> 00:14:09,179
[prashant]: in you know we still do get
on the roofs and make sure at least

296
00:14:09,259 --> 00:14:09,840
[prashant]: understand

297
00:14:09,802 --> 00:14:09,863
[casey_]: we

298
00:14:10,180 --> 00:14:13,065
[prashant]: what the state of the roof is
so we can decide whether we want to

299
00:14:13,105 --> 00:14:16,940
[prashant]: replace it or fix it or whatever
it is but

300
00:14:16,871 --> 00:14:18,361
[casey_]: okay

301
00:14:17,821 --> 00:14:23,129
[prashant]: but yeah i mean generally speaking newer
deals it's lot less of it we just

302
00:14:23,900 --> 00:14:28,225
[prashant]: go through it and based on that
we create our cape budget which you know

303
00:14:29,106 --> 00:14:31,569
[prashant]: which is what were we allocate the
funds for right

304
00:14:32,391 --> 00:14:39,440
[casey_]: sure sure sure and how much so
all right sixty you said sixty five million

305
00:14:40,271 --> 00:14:40,471
[casey_]: right

306
00:14:40,312 --> 00:14:40,860
[prashant]: hm

307
00:14:41,674 --> 00:14:48,307
[casey_]: and you what was the equity portion
of the sixty five million like word around

308
00:14:48,387 --> 00:14:50,150
[casey_]: thirteen or fourteen fifteen million

309
00:14:52,171 --> 00:14:57,179
[prashant]: no it's around so the total raise
was twenty eight out of that four million

310
00:14:57,560 --> 00:15:02,468
[prashant]: ish was cap x budget so we
have about four out of that four i

311
00:15:02,508 --> 00:15:09,005
[prashant]: would say two million as for interiors
have half and half two million or two

312
00:15:09,065 --> 00:15:10,990
[prashant]: million interior and

313
00:15:11,004 --> 00:15:11,024
[casey_]: a

314
00:15:11,030 --> 00:15:16,358
[prashant]: the rest dress is all closing cost
you know down payment and all that other

315
00:15:16,438 --> 00:15:17,099
[prashant]: stuff right

316
00:15:17,901 --> 00:15:18,644
[casey_]: yeah yeah

317
00:15:19,291 --> 00:15:23,846
[prashant]: rate cap cost to nowadays since we
are buying bridge there's rate cap cost involved

318
00:15:23,906 --> 00:15:25,906
[prashant]: in that the port enough

319
00:15:25,962 --> 00:15:26,964
[casey_]: um did

320
00:15:26,911 --> 00:15:27,194
[prashant]: raised

321
00:15:27,024 --> 00:15:29,449
[casey_]: you all sign on the loan yourself
or did you have to bring in

322
00:15:30,620 --> 00:15:30,800
[prashant]: yeah

323
00:15:30,643 --> 00:15:31,627
[casey_]: p s to get that band

324
00:15:32,485 --> 00:15:35,272
[prashant]: we do have one k b who
signs on us but we sign on all

325
00:15:35,332 --> 00:15:36,556
[prashant]: our loans for

326
00:15:36,531 --> 00:15:36,631
[casey_]: got

327
00:15:36,596 --> 00:15:36,676
[prashant]: the

328
00:15:36,691 --> 00:15:36,771
[casey_]: you

329
00:15:36,696 --> 00:15:37,057
[prashant]: most part

330
00:15:37,131 --> 00:15:41,978
[casey_]: got you okay and is it a
non recourse fanny freddy kind of deal or

331
00:15:42,018 --> 00:15:42,939
[casey_]: what is it what is that

332
00:15:43,521 --> 00:15:49,135
[prashant]: this one is a bridge non recourse
and the reason we went that route is

333
00:15:49,577 --> 00:15:55,087
[prashant]: just the business model we have fit
the debt right so you gotta whenever you're

334
00:15:55,107 --> 00:15:59,253
[prashant]: buying a deal you got to match
the right debt with the right business business

335
00:15:59,314 --> 00:16:03,423
[prashant]: plan that you have so this is
a heavy value added so we ex in

336
00:16:03,463 --> 00:16:09,144
[prashant]: the next twenty four months or so
to boost the no i significantly and

337
00:16:09,271 --> 00:16:09,413
[casey_]: kay

338
00:16:09,364 --> 00:16:16,957
[prashant]: bridge bridge that fit well gives us
easy exit out you know no prepayment penalties

339
00:16:17,437 --> 00:16:20,126
[prashant]: and you know our plan is and
a refined

340
00:16:20,041 --> 00:16:20,362
[casey_]: now when

341
00:16:20,327 --> 00:16:20,347
[prashant]: a

342
00:16:20,402 --> 00:16:24,469
[casey_]: you say bridge explain that just a
little bit for the listeners tell us tell

343
00:16:24,509 --> 00:16:28,335
[casey_]: the listeners exactly what because most of
the time when i

344
00:16:29,265 --> 00:16:29,285
[prashant]: a

345
00:16:29,337 --> 00:16:34,648
[casey_]: when i discussed bridge anyway go ahead
and just give us give us your bridge

346
00:16:34,728 --> 00:16:35,229
[casey_]: scenario

347
00:16:36,060 --> 00:16:37,101
[prashant]: yeah so bridge is

348
00:16:37,145 --> 00:16:37,286
[casey_]: yes

349
00:16:37,182 --> 00:16:43,392
[prashant]: really a short term loan it's a
five year loan and the goal there is

350
00:16:43,552 --> 00:16:48,501
[prashant]: to bridge the gap between where you're
starting off and getting into a long term

351
00:16:48,642 --> 00:16:53,055
[prashant]: fixed that loan right so that's the
whole definition of bridge is a bridge to

352
00:16:53,416 --> 00:16:53,978
[prashant]: some of the loan

353
00:16:54,581 --> 00:16:54,743
[casey_]: yep

354
00:16:55,050 --> 00:17:02,963
[prashant]: and people take bridge for two reasons
one uh you can get higher leverage so

355
00:17:03,044 --> 00:17:09,042
[prashant]: they kind of bring they can they
allow you to m they fund the capes

356
00:17:09,262 --> 00:17:17,075
[prashant]: cost for the project for you you
know for the most part and uh yeah

357
00:17:17,135 --> 00:17:22,395
[prashant]: and it gives you flexibility so there's
no you know prepay penalties like you would

358
00:17:22,455 --> 00:17:27,876
[prashant]: have it a fanny or ready loan
um so it's easy exit so you can

359
00:17:29,300 --> 00:17:33,687
[prashant]: and typically when you have a plan
where you may exist in twenty four thirty

360
00:17:33,727 --> 00:17:37,203
[prashant]: six months this is a perfect fit
for that right and

361
00:17:37,193 --> 00:17:37,336
[casey_]: yeah

362
00:17:37,503 --> 00:17:43,244
[prashant]: our business plan was is exactly that
that go in twenty four months to three

363
00:17:43,304 --> 00:17:49,302
[prashant]: months implement our caps both to n
i and then either sell or if do

364
00:17:50,520 --> 00:17:54,987
[prashant]: more permanent loans so get cast out
you know get get our equity pulled out

365
00:17:55,027 --> 00:17:58,333
[prashant]: of the deal or most of the
equity pulled out of the deal at the

366
00:17:58,373 --> 00:18:01,939
[prashant]: refieevent and just hold the deal longer
if you have to

367
00:18:02,732 --> 00:18:07,825
[casey_]: yeah so what that i think catches
a lot of people off guard as well

368
00:18:08,506 --> 00:18:14,521
[casey_]: what do you when you when you
plan on that like what happens if you

369
00:18:14,602 --> 00:18:22,578
[casey_]: get to the end of the business
plan and everything is remodeled and ready to

370
00:18:22,638 --> 00:18:27,025
[casey_]: go but let's say the market has
gone to crap what is the plan at

371
00:18:27,126 --> 00:18:36,703
[casey_]: five years if like let's say you
let's say the property caps the cap rate

372
00:18:36,844 --> 00:18:41,128
[casey_]: determines it's worth say ten million under
what you paid for it what's the plan

373
00:18:41,708 --> 00:18:43,610
[casey_]: from five years forward

374
00:18:43,470 --> 00:18:45,181
[prashant]: oh so that's that's

375
00:18:45,023 --> 00:18:45,168
[casey_]: yeah

376
00:18:45,341 --> 00:18:47,786
[prashant]: the risk of bridge right there right
you

377
00:18:47,761 --> 00:18:47,883
[casey_]: yeah

378
00:18:48,066 --> 00:18:54,316
[prashant]: have to have confidence in the dealer
buying in your underwriting and your exit exit

379
00:18:54,397 --> 00:18:54,917
[prashant]: strategy

380
00:18:55,511 --> 00:18:55,653
[casey_]: yep

381
00:18:56,740 --> 00:19:04,013
[prashant]: and your execution ability right because you
don't have any option beyond five you got

382
00:19:04,073 --> 00:19:05,675
[prashant]: to do something by five years

383
00:19:06,662 --> 00:19:06,843
[casey_]: yeah

384
00:19:06,757 --> 00:19:09,422
[prashant]: so it's not for it's not forever
buy right you you

385
00:19:09,381 --> 00:19:09,524
[casey_]: yep

386
00:19:09,442 --> 00:19:15,351
[prashant]: know for people starting off it's not
recommended you just take a bridge dat when

387
00:19:15,392 --> 00:19:17,655
[prashant]: you don't have the experience but once

388
00:19:17,651 --> 00:19:17,794
[casey_]: yeah

389
00:19:17,695 --> 00:19:23,114
[prashant]: you're clear you've done a few deals
once you know exactly what you're buying if

390
00:19:23,154 --> 00:19:32,129
[prashant]: you're underwriting is conservative and you really
have confidence in execution ability then this option

391
00:19:32,249 --> 00:19:34,092
[prashant]: becomes attractive right

392
00:19:33,951 --> 00:19:34,074
[casey_]: yep

393
00:19:34,793 --> 00:19:35,094
[prashant]: but there

394
00:19:35,121 --> 00:19:35,262
[casey_]: yeah

395
00:19:35,134 --> 00:19:36,757
[prashant]: is risk absolutely i mean

396
00:19:36,671 --> 00:19:43,383
[casey_]: well i think and one of my
my listeners certainly understand and know that i'm

397
00:19:43,463 --> 00:19:45,025
[casey_]: a devil's advocate all the time

398
00:19:45,120 --> 00:19:45,900
[prashant]: yeah

399
00:19:45,166 --> 00:19:51,176
[casey_]: every day all day long i devil's
advocate everything but the main my main concern

400
00:19:51,236 --> 00:19:55,603
[casey_]: with bridge right now and i've talked
to several several of the big guys in

401
00:19:55,643 --> 00:20:00,030
[casey_]: the business about this as well and
it seems to be the general consensus this

402
00:20:00,892 --> 00:20:05,700
[casey_]: the terror of the bridge loan right
now is is the interest rate exposure um

403
00:20:05,511 --> 00:20:05,941
[prashant]: absolutely

404
00:20:06,261 --> 00:20:11,449
[casey_]: and the interest rate you know comes
down and because that's that's that's probably the

405
00:20:11,570 --> 00:20:19,308
[casey_]: number on um m cap rate effect
or if you will um that there is

406
00:20:19,368 --> 00:20:22,393
[casey_]: in the market really i mean that
that's going to affect your cap rate worse

407
00:20:22,453 --> 00:20:26,019
[casey_]: than just about anything and of course
we all know cap rate determines value so

408
00:20:27,021 --> 00:20:31,465
[casey_]: the interest rate is directly correlated with
the value i think that's the that's probably

409
00:20:31,505 --> 00:20:37,012
[casey_]: the biggest risk right now and the
thing is that it's it's not it's nothing

410
00:20:37,152 --> 00:20:40,858
[casey_]: there's there's generally nothing any of us
can do about that right i mean you

411
00:20:40,898 --> 00:20:40,998
[casey_]: can

412
00:20:41,040 --> 00:20:41,730
[prashant]: yeah

413
00:20:41,058 --> 00:20:44,464
[casey_]: obviously you figure out a way to
buy it down or something you can do

414
00:20:44,564 --> 00:20:48,611
[casey_]: some some some things like that if
if the up front expense carries and you

415
00:20:48,651 --> 00:20:52,897
[casey_]: can carry it out the long term
debt but um so five years and i

416
00:20:52,997 --> 00:20:58,756
[casey_]: feel like i feel like you probably
have it in the back of your mind

417
00:20:58,936 --> 00:21:03,764
[casey_]: that hey five years gets here we
can't do anything well re finance the property

418
00:21:03,804 --> 00:21:07,510
[casey_]: will hold the property will do something
because they don't just make bridge loans to

419
00:21:07,550 --> 00:21:14,359
[casey_]: big enters who could potentially be interest
rate averse in five years and then bankrupt

420
00:21:14,419 --> 00:21:15,280
[casey_]: them right

421
00:21:15,991 --> 00:21:17,593
[prashant]: yeah no absolutely

422
00:21:17,188 --> 00:21:17,309
[casey_]: so

423
00:21:18,174 --> 00:21:21,099
[prashant]: yeah yeah i mean there is a
risk and like you said you're right i

424
00:21:21,159 --> 00:21:26,047
[prashant]: mean there mitigation strategies you know we
are buying a rate cap in this case

425
00:21:26,328 --> 00:21:33,227
[prashant]: to uh kind of you know insulate
us from the rising interest rate environment so

426
00:21:33,307 --> 00:21:34,049
[prashant]: what the way we

427
00:21:33,974 --> 00:21:34,561
[casey_]: hm

428
00:21:34,089 --> 00:21:38,135
[prashant]: are doing it is we have a
three ten spread what they call over sulphur

429
00:21:38,997 --> 00:21:43,390
[prashant]: where we are buying a one eight
cat going in so our interest rate all

430
00:21:43,470 --> 00:21:45,478
[prashant]: in into trade is going to be
five ten right

431
00:21:46,222 --> 00:21:46,345
[casey_]: yeah

432
00:21:46,360 --> 00:21:50,707
[prashant]: for thirty for for thirty three months
and the reason we are doing that is

433
00:21:50,787 --> 00:21:55,395
[prashant]: we don't want any risk while we
are executing our business plan right we don't

434
00:21:55,304 --> 00:21:55,831
[casey_]: hm

435
00:21:55,415 --> 00:21:59,181
[prashant]: want to we don't want to worry
about indrustrates for the first thirty six thirty

436
00:21:59,221 --> 00:22:04,430
[prashant]: months so we just go in focus
on our execution push the n i as

437
00:22:04,530 --> 00:22:10,580
[prashant]: fast and as hard as if we
can and just be ready to you know

438
00:22:10,861 --> 00:22:12,181
[casey_]: yeah

439
00:22:10,921 --> 00:22:12,926
[prashant]: have a capital capital event at

440
00:22:13,842 --> 00:22:14,062
[casey_]: what

441
00:22:13,848 --> 00:22:14,188
[prashant]: thirty six

442
00:22:14,162 --> 00:22:18,610
[casey_]: are you when it comes to remodeling
these units of course

443
00:22:18,633 --> 00:22:19,140
[prashant]: hm

444
00:22:19,451 --> 00:22:22,957
[casey_]: people can't live in them while they're
being remodeled for the most part

445
00:22:23,761 --> 00:22:23,904
[prashant]: yeah

446
00:22:24,199 --> 00:22:30,505
[casey_]: what what is your what's the strategy
for making sure that all of these remodels

447
00:22:30,545 --> 00:22:33,851
[casey_]: get done and are you saying that
the residents are for the most part gonna

448
00:22:33,951 --> 00:22:38,418
[casey_]: are you going to move residents around
within the within the complex if it gets

449
00:22:38,438 --> 00:22:42,505
[casey_]: down to the strand that strato that
part of the strategy always seems to be

450
00:22:42,825 --> 00:22:46,371
[casey_]: a bottle neck for people because they're
like what if i've got somebody as been

451
00:22:46,391 --> 00:22:48,575
[casey_]: there ten years and they don't want
to move and they don't want to this

452
00:22:48,615 --> 00:22:52,622
[casey_]: or that or the other what's what
is that and i know that it's few

453
00:22:52,662 --> 00:22:58,034
[casey_]: and far between for the most part
but what your long term residence that are

454
00:22:58,074 --> 00:23:00,119
[casey_]: currently there what is that looking like

455
00:23:00,950 --> 00:23:06,519
[prashant]: so it is a balancing act between
occupancy and upgrade you know

456
00:23:07,015 --> 00:23:07,561
[casey_]: hm

457
00:23:08,362 --> 00:23:09,184
[prashant]: velocity right

458
00:23:09,771 --> 00:23:09,914
[casey_]: yep

459
00:23:09,845 --> 00:23:14,554
[prashant]: so we we are shooting for eight
to ten units you know per per month

460
00:23:15,336 --> 00:23:17,670
[prashant]: starting one three and

461
00:23:17,584 --> 00:23:17,604
[casey_]: a

462
00:23:17,710 --> 00:23:24,842
[prashant]: that that equites to you know twenty
eight vacant units you know ten percent of

463
00:23:25,103 --> 00:23:30,792
[prashant]: the units so we may do seven
some months do tend some months but we'll

464
00:23:30,832 --> 00:23:35,440
[prashant]: have to balance the occupancy keep it
over ninety you know ninety to nine three

465
00:23:35,520 --> 00:23:41,130
[prashant]: range and still kind of keep doing
those upgrade so you know but in general

466
00:23:41,191 --> 00:23:41,211
[casey_]: a

467
00:23:42,290 --> 00:23:46,426
[prashant]: that's what we shoot for on eight
or so average per month

468
00:23:47,764 --> 00:23:47,926
[casey_]: yeah

469
00:23:47,980 --> 00:23:49,253
[prashant]: keeping the occupancy intact

470
00:23:50,941 --> 00:23:54,666
[casey_]: um and yeah that that that that
that's the perfect way to put it keeping

471
00:23:54,686 --> 00:24:01,034
[casey_]: the occupancy intact because so so what
what when you get it doesn't it seems

472
00:24:01,094 --> 00:24:05,582
[casey_]: to me like keeping the occupancy intact
is going to be harder the further down

473
00:24:05,622 --> 00:24:10,350
[casey_]: the road you go that is that
is that generally the idea that that he

474
00:24:10,530 --> 00:24:14,957
[casey_]: once it we get twenty two twenty
three twenty four months into this deal at

475
00:24:15,018 --> 00:24:15,398
[casey_]: our ten

476
00:24:15,385 --> 00:24:15,567
[prashant]: yeah

477
00:24:15,538 --> 00:24:15,779
[casey_]: units

478
00:24:15,669 --> 00:24:15,871
[prashant]: i mean

479
00:24:15,879 --> 00:24:16,941
[casey_]: per month those

480
00:24:16,920 --> 00:24:17,580
[prashant]: yeah

481
00:24:17,061 --> 00:24:21,408
[casey_]: last fifty units are they people that
have been there a while and if they

482
00:24:21,528 --> 00:24:21,609
[casey_]: are

483
00:24:21,578 --> 00:24:21,700
[prashant]: yeah

484
00:24:21,669 --> 00:24:21,789
[casey_]: what

485
00:24:21,761 --> 00:24:21,862
[prashant]: but

486
00:24:21,809 --> 00:24:22,149
[casey_]: do you do

487
00:24:23,090 --> 00:24:27,955
[prashant]: no but if you think about it
at five per cent vacancy rate at a

488
00:24:28,035 --> 00:24:34,122
[prashant]: two two eight eight unit property you
know so that's ten plus units available every

489
00:24:34,163 --> 00:24:34,904
[prashant]: month right

490
00:24:35,161 --> 00:24:35,302
[casey_]: yeah

491
00:24:35,164 --> 00:24:40,353
[prashant]: so if you're ninety five percent occupied
on a two unit property let's say three

492
00:24:40,413 --> 00:24:46,851
[prashant]: hundred just for calculations sake that's fifteen
units of vegan units every month available for

493
00:24:46,931 --> 00:24:51,744
[prashant]: us to either upgrade or turn so
we don't do we may not upgrade all

494
00:24:51,784 --> 00:24:55,531
[prashant]: the units that are available because sometimes
you got to turn them faster so we

495
00:24:55,591 --> 00:24:58,857
[prashant]: may keep some classic units you know
for for a little while

496
00:24:58,633 --> 00:24:59,664
[casey_]: yeah ah

497
00:24:59,598 --> 00:24:59,838
[prashant]: but

498
00:25:00,463 --> 00:25:00,628
[casey_]: yeah

499
00:25:00,591 --> 00:25:01,160
[prashant]: but we have

500
00:25:01,621 --> 00:25:03,631
[casey_]: oh

501
00:25:01,870 --> 00:25:04,626
[prashant]: you know we should have it to
ten units available

502
00:25:04,471 --> 00:25:05,911
[casey_]: yeah

503
00:25:05,740 --> 00:25:07,353
[prashant]: based on our plan oh

504
00:25:07,731 --> 00:25:14,439
[casey_]: okay what is what is the single
biggest expense in this remodel that's going to

505
00:25:14,519 --> 00:25:15,000
[casey_]: take place

506
00:25:17,062 --> 00:25:22,733
[prashant]: so for this specific deal it's really
the unit upgrade which is going to cost

507
00:25:22,833 --> 00:25:24,076
[prashant]: us two plus million dollars right

508
00:25:24,082 --> 00:25:27,416
[casey_]: well all right what's the single what's

509
00:25:27,342 --> 00:25:27,583
[prashant]: single

510
00:25:27,497 --> 00:25:27,637
[casey_]: this

511
00:25:27,644 --> 00:25:27,825
[prashant]: item

512
00:25:28,621 --> 00:25:30,728
[casey_]: yeah what's a single item that's going
to be the like eight

513
00:25:30,731 --> 00:25:30,893
[prashant]: it's

514
00:25:30,808 --> 00:25:32,614
[casey_]: does eight the vac have to be
done

515
00:25:32,491 --> 00:25:32,712
[prashant]: yeah

516
00:25:32,674 --> 00:25:32,855
[casey_]: i mean

517
00:25:33,074 --> 00:25:33,175
[prashant]: so

518
00:25:33,216 --> 00:25:33,517
[casey_]: what is

519
00:25:34,581 --> 00:25:39,452
[prashant]: yeah so in this case the roofs
for this deal so there are original roofs

520
00:25:39,652 --> 00:25:41,997
[prashant]: two tousand four so that's going to
be our biggest

521
00:25:42,252 --> 00:25:42,973
[casey_]: yeah that's

522
00:25:42,991 --> 00:25:43,133
[prashant]: yeah

523
00:25:43,013 --> 00:25:46,539
[casey_]: when the thirty year ruth really started
coming about now all of a sudden

524
00:25:47,193 --> 00:25:48,435
[prashant]: exactly exactly

525
00:25:48,082 --> 00:25:53,673
[casey_]: we're eighteen years into that thirty year
cychewhen everybody is going okay well ah

526
00:25:53,743 --> 00:25:56,267
[prashant]: so for this one we're going to
just go in and replace the roof and

527
00:25:56,327 --> 00:26:00,374
[prashant]: that kind of goes well with our
full you know

528
00:26:00,301 --> 00:26:00,522
[casey_]: yeah

529
00:26:01,055 --> 00:26:02,297
[prashant]: face lift plan

530
00:26:02,352 --> 00:26:02,495
[casey_]: yeah

531
00:26:02,458 --> 00:26:06,484
[prashant]: anyways right you don't want to have
a beautiful color and beautiful landscaping with crappy

532
00:26:06,524 --> 00:26:07,366
[prashant]: roof on top right

533
00:26:07,641 --> 00:26:07,782
[casey_]: yeah

534
00:26:08,087 --> 00:26:12,775
[prashant]: so it's it kind of you know
we are okay with it and you know

535
00:26:13,076 --> 00:26:13,897
[prashant]: it needs to be replaced

536
00:26:13,614 --> 00:26:14,251
[casey_]: kay

537
00:26:13,937 --> 00:26:14,578
[prashant]: anyway itself

538
00:26:14,961 --> 00:26:20,330
[casey_]: you have opportunities for for other value
ad items like maybe covered parking or

539
00:26:20,672 --> 00:26:21,119
[prashant]: absolutely

540
00:26:21,031 --> 00:26:25,118
[casey_]: or storage i mean is there is
there do you plan on adding any of

541
00:26:25,178 --> 00:26:26,780
[casey_]: that stuff to it or is it
already there

542
00:26:27,540 --> 00:26:32,645
[prashant]: yeah so few things so first thing
i mean there's two technology items that we

543
00:26:32,705 --> 00:26:37,251
[prashant]: are adding so one is why fie
to the whole property so there's what we

544
00:26:37,332 --> 00:26:38,583
[prashant]: call the property wide wif

545
00:26:39,231 --> 00:26:39,493
[casey_]: okay

546
00:26:39,900 --> 00:26:44,087
[prashant]: that's a huge that's going to be
a huge revenue generator especially for this a

547
00:26:44,207 --> 00:26:50,999
[prashant]: class demographics right so we we are
going to be paying let's say twenty bucks

548
00:26:51,179 --> 00:26:55,730
[prashant]: to that provider and we can charge
sixty bucks to the tenants you know sixty

549
00:26:55,790 --> 00:26:56,171
[prashant]: bucks is

550
00:26:56,146 --> 00:26:56,327
[casey_]: yeah

551
00:26:56,231 --> 00:26:56,411
[prashant]: still

552
00:26:56,508 --> 00:26:56,589
[casey_]: and

553
00:26:56,993 --> 00:26:57,454
[prashant]: cheaper

554
00:26:57,172 --> 00:26:57,434
[casey_]: so you

555
00:26:57,554 --> 00:26:58,717
[prashant]: than what they're paying right now

556
00:26:59,351 --> 00:27:02,959
[casey_]: so it's similar to like a hotel
where you have to put your partment number

557
00:27:03,099 --> 00:27:06,346
[casey_]: in your last name in your code
in and then you got you're on the

558
00:27:06,386 --> 00:27:06,707
[casey_]: wife

559
00:27:06,400 --> 00:27:07,802
[prashant]: exact exactly

560
00:27:07,629 --> 00:27:07,789
[casey_]: yeah

561
00:27:07,962 --> 00:27:11,448
[prashant]: exactly they don't have to sign up
anything as soon as they check in sign

562
00:27:11,488 --> 00:27:15,475
[prashant]: the las boom they get a code
they have why fie through ll the property

563
00:27:15,495 --> 00:27:18,784
[prashant]: they can be by the pool have
wifie walk around the probe i mean it's

564
00:27:19,500 --> 00:27:19,560
[prashant]: you

565
00:27:19,501 --> 00:27:20,461
[casey_]: yeah

566
00:27:19,600 --> 00:27:25,049
[prashant]: know it's super convenient and residence love
it you know we've implemented it and a

567
00:27:25,109 --> 00:27:27,553
[prashant]: couple of our other properties so that's
that's

568
00:27:27,571 --> 00:27:28,119
[casey_]: yeah

569
00:27:27,693 --> 00:27:32,308
[prashant]: one we are doing we are also
implementing you know smart locks smart termes technology

570
00:27:32,490 --> 00:27:36,322
[prashant]: so it's an amenity fee that we're
going to charge but it's

571
00:27:36,342 --> 00:27:36,843
[casey_]: now is each

572
00:27:36,784 --> 00:27:36,945
[prashant]: still

573
00:27:36,963 --> 00:27:40,429
[casey_]: unit is each unit metored separately so
so each

574
00:27:40,381 --> 00:27:40,402
[prashant]: s

575
00:27:42,023 --> 00:27:42,224
[casey_]: you know

576
00:27:42,140 --> 00:27:42,282
[prashant]: yeah

577
00:27:42,244 --> 00:27:46,902
[casey_]: when somebody comes in and and gets
electric

578
00:27:46,700 --> 00:27:46,844
[prashant]: yeah

579
00:27:47,002 --> 00:27:49,207
[casey_]: then they okay that's that that's

580
00:27:49,260 --> 00:27:49,420
[prashant]: yeah

581
00:27:49,287 --> 00:27:49,788
[casey_]: another big

582
00:27:49,661 --> 00:27:54,749
[prashant]: they got yeah they get their own
electric so it's individual yes in this case

583
00:27:55,370 --> 00:27:55,711
[prashant]: and then you

584
00:27:55,654 --> 00:27:55,955
[casey_]: um

585
00:27:55,791 --> 00:28:01,521
[prashant]: mentioned you know patios and stuff so
we ave we are gonna extend a handful

586
00:28:01,561 --> 00:28:06,128
[prashant]: of patios there we're going to add
some additional dat's already had some covered parking

587
00:28:06,188 --> 00:28:10,576
[prashant]: and garages so we're gonna add some
additional covered parking because that's a need package

588
00:28:10,616 --> 00:28:15,603
[prashant]: lockers is another thing you know a
lot right now all these amazon deliveries are

589
00:28:15,643 --> 00:28:19,607
[prashant]: sitting in the office takes up a
lot of time from the staff so we're

590
00:28:19,627 --> 00:28:20,588
[prashant]: going to just implement

591
00:28:20,581 --> 00:28:20,762
[casey_]: yeah

592
00:28:20,789 --> 00:28:21,049
[prashant]: you know

593
00:28:21,242 --> 00:28:24,788
[casey_]: package lockers and i think that's a
big thing that's coming for a lot of

594
00:28:24,828 --> 00:28:29,276
[casey_]: these places i really do and i'll
tell you some of that stuff some of

595
00:28:29,316 --> 00:28:34,905
[casey_]: that stuff is like passive income looking
in some of these lockers some of this

596
00:28:34,945 --> 00:28:35,947
[casey_]: locker situation

597
00:28:36,671 --> 00:28:36,731
[prashant]: it

598
00:28:36,808 --> 00:28:37,129
[casey_]: um

599
00:28:36,812 --> 00:28:36,893
[prashant]: is

600
00:28:37,590 --> 00:28:37,670
[casey_]: and

601
00:28:37,763 --> 00:28:37,803
[prashant]: a

602
00:28:38,090 --> 00:28:40,895
[casey_]: and i think that that's you know
i think that's going to kind of be

603
00:28:41,516 --> 00:28:45,202
[casey_]: at least the short term answer for
a lot of what's going on and and

604
00:28:45,260 --> 00:28:45,402
[prashant]: yeah

605
00:28:46,004 --> 00:28:48,408
[casey_]: in home delivery stuff so awesome

606
00:28:48,341 --> 00:28:48,827
[prashant]: absolutely

607
00:28:48,548 --> 00:28:52,334
[casey_]: well well pecan thank you so much
for your time i know that you all

608
00:28:52,394 --> 00:28:54,798
[casey_]: are busy and i want to thank
you for for taking a little time to

609
00:28:54,838 --> 00:28:58,184
[casey_]: be with us today but e got
a couple of questions we ask every guest

610
00:28:58,224 --> 00:29:04,815
[casey_]: that comes on the show they're really
easy or no there's no big big side

611
00:29:04,895 --> 00:29:09,083
[casey_]: swipes here but the first question is
what is the best that you have recently

612
00:29:09,184 --> 00:29:10,729
[casey_]: read or are currently reading

613
00:29:11,250 --> 00:29:15,433
[prashant]: yeah best book who not how

614
00:29:16,122 --> 00:29:16,244
[casey_]: ah

615
00:29:16,174 --> 00:29:21,319
[prashant]: so that's a that's a great book
that i highly recommend any antreprener to read

616
00:29:22,360 --> 00:29:26,306
[prashant]: that's a dilemma that all of us
run into that we all we want to

617
00:29:26,386 --> 00:29:31,295
[prashant]: do everything and solve try to solve
all the problems and you know in our

618
00:29:31,375 --> 00:29:37,447
[prashant]: business and sometimes it's just bet of
delegating them to the right people who are

619
00:29:37,527 --> 00:29:39,432
[prashant]: good at doing those things so

620
00:29:40,331 --> 00:29:40,471
[casey_]: yeah

621
00:29:40,574 --> 00:29:41,015
[prashant]: definitely

622
00:29:40,972 --> 00:29:41,113
[casey_]: yeah

623
00:29:41,056 --> 00:29:41,296
[prashant]: a good

624
00:29:41,353 --> 00:29:41,915
[casey_]: absolutely

625
00:29:41,356 --> 00:29:41,978
[prashant]: rate you know

626
00:29:42,336 --> 00:29:43,298
[casey_]: absolutely all right

627
00:29:43,365 --> 00:29:43,386
[prashant]: i

628
00:29:43,639 --> 00:29:47,789
[casey_]: next question what is a dream vacation
that you have taken or hoped to take

629
00:29:48,360 --> 00:29:55,497
[prashant]: yeah dream vacation i do i do
take a lot of vacation with family but

630
00:29:57,731 --> 00:30:01,778
[prashant]: croatia would be one that i want
to you know

631
00:30:01,801 --> 00:30:01,961
[casey_]: yeah

632
00:30:01,858 --> 00:30:02,499
[prashant]: it's in a bucket

633
00:30:02,262 --> 00:30:02,482
[casey_]: i think

634
00:30:02,539 --> 00:30:02,759
[prashant]: list

635
00:30:02,542 --> 00:30:03,043
[casey_]: croatia

636
00:30:02,819 --> 00:30:02,920
[prashant]: so

637
00:30:03,724 --> 00:30:05,668
[casey_]: croatia looks unbelievable really

638
00:30:06,606 --> 00:30:07,127
[prashant]: just want to check

639
00:30:07,072 --> 00:30:07,213
[casey_]: um

640
00:30:07,187 --> 00:30:08,869
[prashant]: it out a lot

641
00:30:08,924 --> 00:30:09,065
[casey_]: well

642
00:30:08,970 --> 00:30:09,130
[prashant]: like

643
00:30:09,205 --> 00:30:09,527
[casey_]: awesome

644
00:30:09,211 --> 00:30:12,867
[prashant]: we like international travel and that's the
next one list right

645
00:30:13,311 --> 00:30:20,022
[casey_]: well it's obvious you are the head
of a very competent operator are you all

646
00:30:20,083 --> 00:30:24,810
[casey_]: are very competent operators and that is
generally what a lot of investors look for

647
00:30:25,031 --> 00:30:30,540
[casey_]: is is not necessarily the deal not
necessarily location not necessarily all of the numbers

648
00:30:30,700 --> 00:30:36,249
[casey_]: but that somebody is a competent operator
and it seems like you have everything really

649
00:30:36,330 --> 00:30:39,154
[casey_]: good really close together so if somebody

650
00:30:39,113 --> 00:30:39,195
[prashant]: ah

651
00:30:39,234 --> 00:30:42,360
[casey_]: heard something and they want to reach
out to you all maybe invest with you

652
00:30:42,460 --> 00:30:46,867
[casey_]: or ask questions or or maybe they
want to look into to to to whatever

653
00:30:46,927 --> 00:30:49,643
[casey_]: with you all what is a good
way for somebody get in touch with you

654
00:30:49,830 --> 00:30:55,599
[prashant]: absolutely so check out our website w
w w dot cat equity dot com so

655
00:30:55,659 --> 00:30:59,506
[prashant]: that c a t q u i
t i dot com or

656
00:30:59,491 --> 00:30:59,654
[casey_]: okay

657
00:30:59,586 --> 00:31:03,754
[prashant]: you can reach out directly to me
at pres and p r a s h

658
00:31:03,914 --> 00:31:06,219
[prashant]: a n t at cat equity dot
com

659
00:31:06,891 --> 00:31:10,236
[casey_]: awesome and we'll put all of that
in the show notes for all the listeners

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[casey_]: out there and speaking of listeners as
always i ask you to please head down

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00:31:16,206 --> 00:31:19,892
[casey_]: and leave us a five star review
type of reviews that others may know what

662
00:31:20,053 --> 00:31:24,760
[casey_]: you learn what you like about the
cashlpropodcast and while you're there please hit that

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00:31:24,841 --> 00:31:30,750
[casey_]: subscribe button so that you will be
notified as we release new episodes and per

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[casey_]: i want to thank you again for
your time listeners i want to thank you

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[casey_]: for your time i hope everybody has
a wonderful rest of the day

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[prashant]: thanks a lot appreciate it