YOUR DAILY REAL ESTATE INVESTMENT SHOW
June 12, 2022

Scaling Your Real Estate Business With Amy Tiemann

In the new episode of Cash Flow Pro, we talk with Amy Tiemann, Founder, and CEO of TM1 Properties. Amy comes from a construction family, so she was always around real estate. In 2004 she began working in a new construction company she and her...


In the new episode of Cash Flow Pro, we talk with Amy Tiemann, Founder, and CEO of TM1 Properties. Amy comes from a construction family, so she was always around real estate. In 2004 she began working in a new construction company she and her ex-husband created after she decided to end her career in HR. By 2008 the company focused on multifamily renovations servicing 16 states.

 

Amy and her husband became involved in multifamily and real estate investing while managing their construction business. By 2015, she decided to focus on real estate investing and, in 2017, went out on her own. 


In this episode, we discuss:

  • Finding deals and raising money
  • The importance of being around likeminded people to take advantage of opportunities
  • 506 C offering Vs. 506 B offering
  • Recognizing your target audience
  • Fee revenue

 

Tune in on this episode to discover how you can grow your real estate business!

 

Find your flow,

Casey Brown

 

Resources mentioned in this podcast:

  1. tm1properties.com
  2. https://www.linkedin.com/in/amy-tiemann-911b566/
Transcript

Casey Brown  0:07  
Hey there, and welcome to today's episode of cash flow Pro, your daily real estate investing podcast and YouTube channel. Today I'm here Tieman of T m one properties. Now Amy and I were talking prior to the show. And as I do with everybody, I'm sure you have have figured that out by now talk to everybody prior to the show, because I'd like to find out just a little bit more about what they've got going on, so that we could figure out our angle of questions. And so she's going to talk with us. And I told her that I was personally interested in learning more about scaling a private equity firm. Now, we're all familiar, I feel like unless you're new to this business, we're all familiar with, like dipping our toe in and kind of figuring out the things that we need to do to get started. But the actual part of scaling is something that we rarely touch on simply because it seems like by the time people get to where they're scaling, they're really scaling. They don't have time, there's a lot of stuff that we don't necessarily cover from that angle. So, Amy, how are you today? Welcome.

Unknown Speaker  1:11  
I'm good. Thanks for having me.

Casey Brown  1:13  
Absolutely. We're so glad you're here. And we're glad. And we that we can hopefully learn more about what you've got to offer and learn more about about you. So why don't you start out by telling us a little bit about yourself and how you got started in the real estate business.

Unknown Speaker  1:29  
So I'm back in 2003, I started a construction company with my ex husband or my husband at the time. And we were building retail stores. And we by 2014, we were in 16 states, regional stores across the United States. along that journey. In 2008, we started real estate investing, because every general contractor becomes a house flipper pretty much. And so we started house flipping and then we got into single family rentals in 2008, like right after the recession, started finding homes to buy and then 2010 got into multifamily. And when we got into multifamily, we were the we initially did limited partner investments. And we're also the general contractor on the job. So we came in, put a little bit of money in and then but we also were there day one doing takeover. Doing demo didn't like doing all the renovations and value add multifamily. So that was kind of how we started in it. And then quickly, we got to be where we were sponsoring syndicating deals, doing that kind of stuff. And I got divorced from my husband in 2017. And I just kept going. So I just kind of scaled from there,

Casey Brown  2:49  
not awesome that you got divorced, but also that you kept going and because a lot of times it can take the wind out of your sails. Especially when you go through. You know, I had somebody prior to my divorce had told me and I didn't pay much attention to until after the time after when I was going through it was divorce is like a death in the family almost. And sometimes it's, it's we see people that deal with with deaths in the family and all sorts of different manners and, and when you're divorced, but you're able to, to, I guess, for lack of a better term to lick your wounds and keep rolling. It's tough.

Unknown Speaker  3:29  
It is it's that everybody doesn't understand. I mean, I mean, you write it, you relate it to a death, you grieve like you going through an emotional thing. And and and you have to push past that and keep going, you have to push past that and keep working. And you have because you know now you're single, I was a single mom and not getting the best support from my ex husband and I had kids to feed and Matt, you know, I had stuff to take care of. And I had to, you know, make sure they had a place to live and, and I was a full time real estate investor. I mean, I had no choice. I was not going to go back and go get a job and get a W two because that's not what I wanted to do was not where, you know, I just I knew I wanted to do real estate. So so I figured it out.

Casey Brown  4:11  
Sure. Yeah. And that was the way you know, when when I was going through my divorce it was it was one of those scenarios where it wasn't that it wasn't getting support, but then all of a sudden, without, without much time to figure it out. To start with. I was all of a sudden a single father half the time and which shared custody was was what we both wanted and so on. But at the same time, I still had to go to faith I had started to figure out from being full time father half the you know, for half of the relationship to a full time father half of the time, if that makes sense. Where then I was responsible for 100% of their needs. Half the time it was it was a lot. And so kudos to you for sticking through that and coming out on the other side. And hopefully you're on the other side. Now we really talked about that. But But yeah, so So you just kept rolling post divorce and how does that look? How does that look right now?

Unknown Speaker  5:20  
So I'm probably I've doubled my assets. And since 2017. I have, I have some really great partners. That was probably the, you know, one of the best things that are I mean, like, he was not the nicest dude. So, it was a good thing, because it forced me to figure it out. Right. I couldn't rely on anybody else. It was me. Yeah. When you're staring at yourself, and you're the reason why your kids can't go to soccer camp, well then figure it out, right? wasn't getting really a whole lot of support from ex husband. So like, you know, I've my daughter is now a junior at Purdue University and has been paying her tuition. Me,

Casey Brown  6:07  
that's fabulous. And I guarantee I can guarantee I got a buddy that went to Purdue and I can assure you that that's not a not a cheap venture. But I

Unknown Speaker  6:15  
do get it from pretty too. So I'm excited that I can figure out a way to make

Unknown Speaker  6:19  
Boilermakers man, I really was disappointed in their show up at the tournament that year.

Unknown Speaker  6:24  
You and everybody else like who saw Kansas was gonna win like really? Yeah.

Casey Brown  6:28  
Yeah, I was. I was super disappointed. I just thought that that big guy that anyway. We'll have to start a we'll have to start a support section of this podcast. But, so, so yeah, so Alright, so So you've made it somewhat and are working towards your daughter graduating college. And so what I want to talk a little bit about moving towards the syndication business specifically. When you what has been your door count gather, I guess, if you will, from date of divorce through through, beginning to figure out how to scale like how fast to grow, and then how many years was involved.

Unknown Speaker  7:17  
Um, so I've actually I'm almost graduating out of syndication now. I did syndications for a long time. And that's how I just I did everything is in syndication. And then I'm now starting a fund. I have a multifamily fund that we're starting now. So I'm starting a real estate investment trust. So I'm kind of off having different vehicles for people to invest in. Sure. And so I hate to do this here. I'm at home and my dog is a pain in the ass, and so I have to let him out.

Casey Brown  7:52  
Alright, we'll just we'll cut here and then we'll cut and then I'll have Clark Clark, we'll take it out. No problem.

Unknown Speaker  8:01  
Actually, his pain in the ass, I just have to leave the door open. He just wants access to the outside domain.

Unknown Speaker  8:07  
I gotcha. I'm okay,

Unknown Speaker  8:09  
so um, so syndications are they're a different animal. So when you when you during the syndication, you basically have to become a full time capital raiser. Yep. And which is what I do now. So I have, I have built out a team to help me do some of that stuff. So I have a marketing person, I have a social media consultant, I have an investor relations person, I have all these different things initially, when you first start out, you don't have that luxury. And so you are doing all of it yourself. And you know, and I suck at marketing. So I, you know, I had to find a way to figure out how I could pay a social media consultant, like I had it like, and sometimes what you do is you get your first deal. And you still eat cans of green beans, because you have to make sure that you can scale your business so that eventually you can eat caviar, right? Like you put the money back into your business. So you like you say you do all those things. And so because, you know, you have to have those key components. And if they're not there, you'll never be able to sustain or scale.

Casey Brown  9:17  
Yeah, and that's, that's honestly. So when I realized that a fund was my, it was partly what was my vehicle of choice, if you will. That was because then you're able to focus on the investors needs without, again, being pulled in a different direction to change a light bulb and then be pulled in another different direction to fix the rails on a step. So yeah, it makes perfect sense.

Unknown Speaker  9:49  
Yeah, so the whole there's like two I call them two hamster wheels. So there's the deal hamster wheel. You're always chasing deals, right? Yeah. And then there's the money hamster wheel and you're always chasing money. So one or the other one or the other, but they're, but they're both two full time jobs. So you either have to, some people say, Well, I just want to do one or the other. And I'm like, okay, that's fine. I don't. But that's okay. But you develop skill sets around both areas. So there's the deal, people who can deal they can find deals that can manage deals and do all those great things. And then there's people really good at capital raising, I would say the deal, people are probably more prevalent than the capital raising people, it's hard to raise money. It's not easy. And it takes a lot more than people think, to raise capital. I mean, you can get in those guru groups. And and you can raise it, and I did. And I'm not going to say I don't I do, I participate. I don't participate as much in as many. But you can, you can join those groups. And that's just, it's really joining a network of people that are interested in real estate investing, and have money. So therefore, it's real easy to raise capital that way, right? Because you're in a group that but you know, some of those groups have weirdo rules that are dumb, and they're like, Oh, you only can invest inside this group, and you can invest outside the group or whatever it might be. Right. So I don't have it. I don't join groups that are like that. I

Casey Brown  11:17  
say, I want you to define groups. I mean, because that can that's such a, and there's a lot of people out there, especially the listeners who who were saying, okay, hey, what groups is she talking about? And I don't guess you necessarily have to go into names. But that could be beneficial to somebody.

Unknown Speaker  11:33  
Yeah. So like the education and mentoring groups like, I'll offer one out. I'm not in this group, full disclosure, Brad, some rock runs a group, you know, things like that, where their education and mentoring around real estate investing. But then they have sponsors like myself, who will throw out deals to the group, and therefore, the group will have those chances to invest. So they're building up those relationships with people so that they have those private deals, and they're in that group. That's what they're for. That's that's generally what it isn't. That's just a group. But you can join a Real Estate Investment Association, you can join, like any sort of group where there's like minded people, like a mastermind group where there's like minded people interested in real estate investing, and you find a deal and you go tell those people about it. And then if they want cash, I'll throw money in the deal, right? Yeah, it's a similar concept. But some of them are more more set around education and mentoring, so that they can so they can help you meet that. Because the SEC wants people who are investing in syndications to be sophisticated, right? So they have to have some sort of education. So instead of you educating all of your investors, those groups will do that for that for you. So you will pay to be in that group, because then you got the sophistication part covered. Right now.

Casey Brown  12:53  
That's for the 506 B. Right. Yeah, 506 B, then of course, she's

Unknown Speaker  12:57  
a 506 C offering, you don't need to worry about that. Because they just have to be accredited nit to show that they're accredited.

Casey Brown  13:03  
Yeah, yep. And we that's what that's what we primarily do is 506 C just seems to weed out a lot of the of the of the other stuff, I guess, if you will, because, for one, I'm not a huge, there's a lot of these mentors, and a lot of these folks out there who are huge proponents of saying, well go to friends and family. And that's why I think the B was always called kind of friends and the friends and family model. And I am personally anti friends and family simply because I, you know, I remember one time I told my mother, I was actually going through my divorce I owed my mother $1,000 Because I was paying for attorneys and had a had a mound of stuff going in much different directions. And not that my mother ever, ever asked for it or ever really cared that I owed it to her. But I personally felt just slightly different at family functions. Like hey, guys, let's go have a beer. Well, Oh, Mom, 17 grand, so I better you know what I'm saying in many not that the syndication is necessarily owing somebody but personally, I just don't like the mix of family, friends and money. I just I just think it's a it's a it's a it's a way for things to go sour really quick. So with that being said, I'm not not at all saying that it doesn't fit some folks models, but I didn't mean to jump in there. No, no,

Unknown Speaker  14:35  
you're fine. 506 b is so how we build we're doing a 506 b offering right now. It's just because I network so much and I built drew Sure.

Casey Brown  14:44  
Yeah. If you have a bank of investors that you work with you that you know and have a prior relationship with I mean, that's, that's the way for a B to be beneficial.

Unknown Speaker  14:54  
Yes, exactly. So that you got it but yeah, to understand that when you go out and start capitalizing You got to understand your your job is not to sell an investment, your job is to network your butt off so that you can build your investor list, that's your job, right? So that when you do have an investment, if you want to do a 506, B, then you have that Bank of investors there that can come into your deal. And if you can, if you don't, then you have to go the five or six C route, and that might cut out half your investors, because not all of them are accredited.

Casey Brown  15:24  
Well, let's talk, let's talk a little bit about, about gathering investors, if you will, because it seems like that, that seems to be something that you you have a pretty strong, pretty strong way to go about gathering investors. So start with give us give the listeners maybe one or two points on how to start gathering investors. And again, whether that be accredited or non accredited, just sophisticated, but give us some steps and how that looks and how you do that.

Unknown Speaker  15:57  
So my my whole investment relations, investment, lead generation systems have evolved, especially in the last five years, I will say that it's much easier now to kind of do some of that. But way back in the day, I was using Excel and email, like just going through my email, it was awful. Like, and that's what there were no investor portals, everybody in their brother has an investor portal now. Right, those donated, they didn't exist when I was capital raised. So you've had to do these, you know, really jank methods of like trying to keep track of everybody. And it was awful. It was absolutely awful. But now you've got investor portals, you got CRMs you got you know, all these great things that you can do to build out your systems. And you have you use your website and your social medias. And you do all those great things to build out your investor list. You know, and you use text messaging apps, and like all of these different things that you use to kind of curate your lists, like once you start building them up. And initially when I first started, I like write crap, great stuff. So now, I mean, I used to just, I would network a lot, and it was business cards, and then I would have this like little business card Rolodex thing, and I would put them all in an email group, then I would send them out that, you know, hey, I got a deal or, and then I learned I'm like, well, they forgot about me, because I haven't been consistently, you know, in front of their face, right? It's, it's all marketing, it's what it is. And so then I'm like, Okay, I need to start creating newsletters, and then I need to start either that or have a ton of deals or whatever it might be. And so that whole, that whole chain of how you curate investors, you, you find them, you know, do all those great things i that that whole side of my business has evolved, especially in the last two years, like just kind of it kind of blew up. And because I had to, like I was chasing Bigger, bigger deals, I had to have a bigger, bigger investor pool. And so a lot of it is you putting yourself out there I do, I try to focus on three things. Now. I go to larger conferences, where there's, you know, higher level conferences than I ever had been before I was hanging out in the spaces where people like me were and I really don't need to be there. Yeah,

Casey Brown  18:17  
I've realized that myself, you know, I was, like, for instance, the other day I was trying to come up with with an audience on one of the social media platforms to target. And the first thing I typed in was real estate investor. And I was like, wait a minute, you know, I want somebody that may be interested in real estate investing. But I just wonder sometimes how those target like, like, I have more want somebody retail, like I want an engineer, for instance, that that makes good money that is slightly interested or maybe is saying, Hey, I'd like to maybe to self direct some of my funds away from the stock market into the real. Right. And so yeah, that's a that was a huge point you just made there, that, that that and I think that's a mistake that so many of us make all the time. And I used to notice it a lot in Facebook adverts in Facebook advertising especially, was where I would get ads on Facebook, which I don't use it anymore. This is way back when but I would get ads on Facebook for like real estate agents who are advertising their house. And I was like, ah, they screwed up their targeting, because why are they advertising their house to me? I mean, obviously, I could show and sell it but I've got other means to find it if if need be. So it's so yeah, you want to be with like minded people. But

Unknown Speaker  19:42  
yeah, sometimes the marketing campaigns are so unsophisticated. You're just like throwing stuff up on the wall and seeing what sticks right? Because you don't know. You don't know who you're targeting. And that's the key thing when you're initially doing any sort of marketing is you really need they call it the avatar right who is your investor like if you were gonna go target investor who is it and accredited investor doesn't count because you don't know if they're accredited right? So then you're like everybody will target doctors and people target darker to you because you know those high income earners are likely to be accredited. So engineers, software developers, you know, doctors, dentists, all those kind of things. You know,

Casey Brown  20:21  
I'll tell you one thing that one thing that fit with me with with all of those, all of those professions you just mentioned outside of the potential they were accredited is their system oriented people? Yeah, systematic oriented people. And I think that that, that changed my vision a little bit when I started looking through the lens of saying, Okay, what professions out there are the most systems oriented? Well, everyone, basically, everyone, I'm you just mentioned on into agricultural scientists, and biological so I, you know, all of those people are, are constantly dissecting systems of some kind, right? And so, and to me, what you and I do every day, is a different version of the system. But it's a system that at the end of the day, just, it pumps money out to them, you know, what I'm saying? And they don't have to see think or hear about it, they just get the check.

Unknown Speaker  21:22  
Right? Yeah. So it's, it's kind of an interesting thing, but scaling a private equity firm. So you've got, obviously, you've got the whole marketing component. But at some point, you have to be able to understand where your revenues coming from, right? It's usually in fees, right? So you're, you're initially going to be cash strapped, so you're not going to be able to hire the people. So how do you go, but no one's going to invest with you, if you look like a solopreneur, that's, you know, you know, so you have to build this team. So they understand that they're buying expertise, you have to build your expertise in certain ways, like they need to see, because they're buying the horse, they're buying the jockey, not the horse, or the pie and kind of buying the horse too, but they're buying more on the jockey. So you got to show that and how do you show that if he ain't campaign make a payroll? Right? So lots of times you just give up partnership, you give up parts of your general partnership, and you partner with people go, Look, I can't pay you payroll every other week. But I can give you ownership stake in certain things, right? Yeah, I can do that. And people will do that gladly. If they especially we've got another job, they don't need to pay, they don't need a paycheck, right? But they want to be able to invest in real estate deals. And if they give some of their sweat equity away to get that, you know, real estate deal in the thing, you know, not about not about YEG, right? So

Casey Brown  22:43  
well, and I think that could be a good a good to your point there, starting out with an individual syndication, and giving up percentages of those GPS, to, to keep you from giving up, you know, as you progress and start moving towards a fund, then you can have all of those pieces, you're almost syndicating the job out, I guess, if you will along the way. And then that way, when you get to your fund, you're the owner, and you've got your team built, but you've got your team is being paid for other means.

Unknown Speaker  23:18  
Right through the fees, right. That's how you can pay your team. Right. So now you've got fee revenue coming in. Yeah. And there's that's always a conversation with investor, there's always like, beating you up on your fees. And I'm like, dudes, like these fees? Yeah, this is not covering, like, all the expenses, I'm coming out of here, you know,

Casey Brown  23:40  
you and I could sit, you know, you could turn around right there, turn this computer off, turn around right there and watch TV and be at a breakeven and just not doing anything. So why and that's, that's the big thing. You know, our fees, I'm just like, if it if it comes to me, I'll justify him a little bit by saying, Hey, man, you know, we're, we're taking care of a lot of the county here. And let's look at the upside. I mean, you know, even after the fees, you're still looking at potentially this. Yeah, I mean, right. Let's, let's be real. I mean, we've got resources that are spread out there. And that's the other that's like the real estate Commission's when I was on the sales side. You know, there's so many agents that go into listing meetings, and they feel like they're like they're already scotched up, ready to justify why they're going to charge 6% And somebody says to me, what's your commission I say 6%. And, and that covers all your marketing, and that covers everything from beginning to end. Yeah, same thing. And that's kind of the end of my discussion, because other than that, it's like hey, do you go into your boss every day you work and you're working at such and such factory or such and such store? Do you go into them every day and justify why you need a paycheck. I mean, it's not any different.

Unknown Speaker  24:54  
Yeah, so and most the to your point Mr. Credit investors don't harass us.

Casey Brown  25:00  
Well, yeah, they don't want to get, they're going to know, the accredited investors most of the time are going to invest with you to test, okay? Then they're going to look at their overall return after it's done. And they're gonna say, Oh, hey, yeah, man, that guy did really good. And his fees were reasonable, let's go back, or they're gonna say, Man, I'm out. I'm not doing another one with you that everything was too high. And that's basically the the beginning and the end of what happens when, when you get that kind of stuff involved in the fees. And so, so you have to be real careful. But you're right. I mean, people don't. The people that start feeding you to death, are asking about your fees to death. And I'll tell you something else that I've, I've realized about that. And I mentioned this on my podcast all the time. Not all investors are created equal. Okay. And I realized that early on, because again, of my real estate background, you get somebody that says, hey, I want to sell my house. Cool. Then they either become a troublesome seller who wants to nitpick everything, and who wants to micromanage everything. And, and I've actually let sellers out of listing contracts, because I'm like, dude, listen, I don't I know how to do this job. I promise. I don't need you. We don't need you crowding up in here. Because you're, you're, you're gonna make it less efficient. So yeah,

Unknown Speaker  26:31  
I think so. And that goes to all of that goes to building trust, right. So it's sometimes you use sometimes you I mean, at the end of the day, I don't know what investors think sometimes, but I don't have to take your investment. Right? If you're gonna be a pain in the ass up front, I'll just say, see, I can get another investor. Right. All good. But so it's all the game you play. I mean, real estate's easy, people are hard. I mean, real estate is just real estate, you go through the transition, you have sellers, you have to deal with you have investors, you have to deal with you have all these great things you have to deal with. If you're trying to scale, you have to get really good at Investor Relations. And you have to get really good at reading people and knowing people and understanding it and, and to get through get through deals like real estate transactions, you have to be really good at you know, being proactive and not waiting for things to blow up. And you get really good because I was an old GC, right? I could predict something happening before it's going to happen. So I have mitigate it before it would happen, right? You're always trying to do that mitigation thing, because you okay, this could happen wrong. And this could happen wrong. And this could happen wrong. So let me go mitigate that before. So it doesn't happen, right? Those skills translate into being a real estate sponsor, because you're doing the same thing all day long, right? You're like, Okay, well, this could happen every year. So let me make sure we're doing this and make sure we're doing that. And like, Oh, that's great. Thanks. So that you can kind of scale and, and that's a part of it, that that skill takes a while for people to learn. I mean, once you get in it, and you've done it a while you kind of either do that or you die, you have to learn that skill, or you're no longer gonna be a real estate sponsor. Because, you know, investors all talk, and this is a really tiny industry. And the only thing that you have is your reputation. That's right, you aren't paying your investors, you will quickly develop a reputation that's not good. And they ended for some reason that spreads like wildfire. And you know,

Casey Brown  28:25  
and that blacklist that blacklist is hard to get off of I can, I've seen so many people go on it. And you're right. I mean, you just just just do the investors, right? And do the right thing when it comes to pushing stuff back and saying, Hey, because at the end of the day, you know, it's not your money, it's their money, and they could be making money somewhere else with it, if you so so tell us just real quick, we're kind of running a little bit out of time here. But tell us tell us real quick a little bit about your fund and what that's either either looks like or is going to look like if it hasn't launched yet. But what is it? What's going on there?

Unknown Speaker  29:03  
Yeah, it's launching really soon. So it's a multifamily fund, focused on workforce housing, because that's where my experience is, is in workforce housing. So it's going to be a lot of the stuff that I do is obviously a value add, value, add play. So because I've got a construction experience, so that it's like, value add on crack. So I like not only is it a value, add normal value at play, but generally I redevelop sites. So I will go in and go oh, that's a stupid use of footprint. And I'll like scrape and rebuild, or I will if there's I always look for properties where there's extra land so I can add units, right? So I've got a deal in Corpus that we've already we've already acquired. We've got one site that had eight adjacent lots, and we're planning it all together so that we can double the size of the unit count there. Right so we're doing stuff like that. And then my deal my deals in Houston, same thing. We've got it adjacent land but then one of the sites is going to get completely redeveloped. Because doesn't make sense, the footprint doesn't make sense. And we need to put self storage in the front. And we got room to put more multifamily in the back. So once we're all done, the site makes more I like best use of sites. So yeah, stuff like that is kind of what we'll do. So it's really like, like I say value add on crack. I mean, it's value add, but sometimes, you know, I try to I try to make sure that the investors are still going to get paid throughout because they don't feel like it's a true development play. Because your development sometimes you don't get paid for two years. Right.

Casey Brown  30:31  
Yeah. But that also, but that allows you to service the debt because investors are investors are debt. So yeah, so when you have something like that, that can service the debt, and you and then you can, can, can market that as, hey, we're going to do this. And then it's going to be this, you know, but you're you're not going to ever starve, I guess exactly the same thing. So yeah, wow, that's just

Unknown Speaker  30:57  
want to see the mailbox money, right? They want to see it, even if it's small, they want to see that they're getting something. So I tell all of my folks, like, don't count anything for two quarters, like I gotta get in there. These are all value at plays. Everybody lies, every seller lies to you got to get in there. We got to figure it out. And once we kind of figure it out, know where we're at, and kind of like, are we can we execute the plan? We thought we were going to execute, and then we can kind of go okay, yeah, we can't. Okay, let's go. And then. So then we tried it. And then we tried to figure that out in the first month. And then you got to give me a couple of months to kind of sift through all the losers. And

Casey Brown  31:31  
all those were the investors. I feel like when the investors know that up front, yeah, they have a choice to invest with you under this plan, or take their money and go somewhere else.

Unknown Speaker  31:43  
Well, yeah. Nisha, like, it's like I typed this up for I'm all I'm always I'm, like, overly transparent. I'm like, Miss Sunshine, I want to give you so much stuff. But then the fees, I always get, it's never it's always one, there's always one. Like, you'll go go, Hey, this is the plan. And I am not going to distribute to anything for two quarters, don't even ask me. It's not happening. I gotta get in there. I got to figure it out. I got to do all the stuff. And I tell him that and then, you know, two weeks later, when he Hey, so when did distribution start? You know, and it's really kind of funny, but it's fine. And they're all good about it. I was like, Look, go back to the plan.

Unknown Speaker  32:19  
Yeah, go back and look at what we went through. And we had our

Unknown Speaker  32:22  
relations manager, so she's really sweet. And she goes, Okay, you know, back in the plan, we said that we weren't going to do anything for the first few quarters. And then every investor update, I always played when or distribution is going to start, you know, especially this is going to start here like Hulu, right? Because but you have to be that good sponsor an operator that once you start distributions, you better not pull back. Like you can't, don't over commit to distributions initially, because they and for some reason, one quarter, you can't make them all, then that's like that's a bad place to be. It's the sponsor? Yeah. Yeah. So well,

Casey Brown  33:00  
and again, the I just Yeah. And sometimes and I, I always try to tell people that, you know, and when you're involved as, as you were involved in a divorce, I was involved in a divorce, life happens, things happen, buildings, catch fire, and then move out. I mean, things happen. And if we're not, and if if, if if we're not openly, I guess, like you said transparent about just saying, Hey, listen, this is our hopes, this is our dreams, but add that by a little bit, and then go from there. But that's one that that's a good, all good points, especially for new folks coming in that that just because somebody says hey, I want to invest with you doesn't mean that then you need to feel like you have to tell them everything they want to hear. Sometimes you have to tell them what they don't want to hear. And that gains more trust than just telling them everything they want to hear. Because these folks are not ignorant. They know that, hey, you know, if nothing else, it says in all black and white, and everybody's ppm, and so on and so forth. This is a risky business. This is something that, you know, although we hope and pray and do everything possible to not go backwards. There's chance, right?

Unknown Speaker  34:22  
Yeah, so my fund is part value, add part deep value and things like that. We're talking about redevelopment, and it's also development. So it's all workforce multifamily. But it's it's so it's, we're going to do value acquisitions like that. And we're also going to do new ground up development too. So that's the fun. You know, my advisory boards really good. I've got, you know, my chief legal counsel is on the advisory board. I'm there. I've got an architect. I've got somebody who's a lender. I've got a realtor, that's our advisory board and I've got somebody who is is over like $500 million with a real estate. They're all on my advisory board. And in different asset classes. And then, and then I've got so the fund is not just for my developments, but I've got several key development partners, that we have an arrangement that will help fund their deals. And they've built over, I don't know, 50,000 units like, so those those partners, we will partner with to so it's not just me. So that's the fund. So the fund is set up to do development, its funds due to value at acquisitions, all and workforce housing, partly because, and why like workforce housing over like clase housing or affordable, affordable is just crazy. Like, I don't want to deal with government. So

Unknown Speaker  35:38  
just sayin, yeah, it adds another layer for sure.

Unknown Speaker  35:42  
Yeah, Class A is that'll last for a little bit a while. But workforce housing is stable workforce housing, there is not enough of it. And it's very difficult to build, we figured out there's some construction technology that we can actually make, make it pencil that we can do a new development. And it can be in that 80 to 120 80%, or one 20% of the average meeting and confer an area like we were working on different sorts of different sorts of technologies, you know, modular building. And all these developers have done that they all done modular, they you sit,

Casey Brown  36:15  
well, they were to a point where they had to either figure it out or something else was going on. I mean, it just wouldn't work. I mean, the workforce stuff, especially. So let me just real quick, I want to ask one more question about your fund. And then we'll we'll kind of get ready to wrap this up. But is your fund one that does capital calls? Or do you say, hey, somebody wants to invest 100 grand, they shift it to you right? Immediately, and then you you start paying pref? How does that look?

Unknown Speaker  36:44  
Yeah, so it's it's set up, we have ongoing projects already. So if we didn't have ongoing projects that would be set up to where we do a capital call, but right now we've got stuff going on. So it would be immediately and they will get a pref.

Casey Brown  36:58  
So that could that tends to change, depending upon what you got going on. And then of course,

Unknown Speaker  37:04  
we've got I've already got three projects in that this fun could participate in. And we've got more in my pipeline. I'm going next week to go look at another development site, and total workforce housing development site in Colorado. And then we've got another one in Florida. And then we have a lot in Texas. Yeah, and then some even like, I'm crazy, like some in California, because California has a housing crisis, too. But everybody looks at me like I'm you're crazy. The the only reason I would go to California is because I'm betting on the jockey because they've been there for 12 years, they know exactly how to manage property, and exactly what they're doing. They know how to make it pencil, they know how to make it work well.

Casey Brown  37:49  
And I've oftentimes said that if you're going to do New York or California, you need to do New York or California you don't need to do. So if you've got somebody that is specifically California knows California, it's when it when people get in trouble in California, it's when people like myself are like, Oh, hey, that looks like a good deal, when in fact, it's there's a sinkhole under it. And it's getting ready to float off into the ocean. And nobody knew exactly. Nobody, nobody outside of California.

Unknown Speaker  38:19  
I got like they didn't been doing it for the last 12 years. And they have 16 properties in California, and they know how to manage and they know how to, you know all the rules and regulations. So that's the only reason I'm betting on the jockey on that one. And they're good people like they're like me, they're you know, sunshine. P Sure. Right. They're more transparent. They're up front with you. So I like those folks. So that's, you know, so those are the some of the projects we got going on right now. So the fund with its, you know, it can be set up as either what me and PPS, like the biggest thing since sliced bread. It's just like, so vague. But But generally, it's going to we can start accepting money right away, we can start paying a prep right away, because we just got projects, we can allocate it

Casey Brown  39:01  
off to here. Sure. Yep. Makes sense. All right. So we always asked a couple of questions at the end of every episode, there's no right or wrong answer. It's basically just what do you see as as the answer? So what is the best book that you've recently read or currently read?

Unknown Speaker  39:20  
The best book I've just recently read is called capital raising by Richard Wilson.

Casey Brown  39:27  
Oh, wow. Okay. Yeah. Yep. Well, good. And I'm sure that that thing is filled with all kinds of just what seems to be like common sense things if you're on the inside looking in. But from the outside looking in, it's filled with just tons of information. So

Unknown Speaker  39:47  
it's great because he he's worked with lots of family offices. And so it's geared towards that it's geared towards capital raising for family offices. Yeah.

Casey Brown  39:56  
Yeah. All right. And what is the best? What is the dream your dream vacation that you have either taken or hoped to take.

Unknown Speaker  40:03  
My dream vacation is so my family on my dad's side, he's about to be 80. And we had this plan prior to COVID. But I have traced back where my family came from, to like the 1800s. And it's in this little town in western France or little region in western France. And I was gonna take him and all of my kids, all of the Paul widows because that's my main name. And we were gonna go back to where it kind of as far as back because I could trace it to where we started from. So that was going to be our dream trip and then kill COVID killed it. Now, I think is you know, they're iffy about whether you can travel or not travel and not you know, some I got some Texan rednecks, and my family and they all don't get vaccinated. So I'm like this. Yes, I need to get it. We were.

Casey Brown  40:56  
We were in France back in October, and I'm dead serious when I tell you now they've eased it up since this is what I've been told. But we were in France and when we were there, you did not do in Neath you didn't get a prescription filled without without a vaccination card. You didn't buy groceries without a vaccination card. You didn't eat at a restaurant without a vaccination card. You could the only thing you could basically do was stay in your house or walk down the street. And of course, there were they had like a nun out there it was 97% vaccination rate. But anyway, that's that's neither here nor there. So yeah, well, awesome. That's great. And I'll tell you some of those some of those off the beaten path. Towns and France is really just where all the magic happens. And I'll tell you in the listeners a quick story, but my wife and I, when we were there, we went to a little town. I think it was called Barger, Milan, in France. And it was a little bit, I think, let's say it's a little bit north west of where we were staying in nice or Monaco, right in that area. And we drove up there, but we got there really early because it was we were on still on us time, right. So we got there like 6am 7am, something like that. So we go into a little coffee shop guy server croissants and whatever. And there's a there's all the you know, the little town coffee drinkers or whatever, just sitting in there, all babbling away talking in French, which I didn't understand a single word except for we. And then all of a sudden, so we sat there a couple of hours and ate our croissants and whatever. And we went down walk through the town and everything, we come back at like 1130 or something well, then now the coffee shop is transitioned immediately into like a bar. Okay? So like the the coffee drinkers, and this is new. This is like around noon, like lunchtime. So the coffee drinkers who were there in the morning, then they just started drinking. And I was like, wow, this is my kind of place I could get used. Then they take a nap at one o'clock from one to three, they close. And I was like, Lee, I really need this. I need this in my life. So anyway, me tell the listeners how they can reach out to you and get more information. I know there's going to be some out there that are probably probably interested hearing more about your phone directly from you. And have some have some very specific questions. So how can the listeners reach out to you?

Unknown Speaker  43:14  
My Websites the best way and you can book a call with me and you can check out our investments. And you can check out more about me and my website is T m, the number one properties.com. So it's t is and Tom is a marry the number one properties plural

Casey Brown  43:32  
properties, properties plural. Yep, yep. Awesome. Well, thank you so much for your time. And I want to thank everybody for listening and go go check me out, go to her website, see what she has to offer, because I can guarantee you that it will be worth your time, especially if you're interested or looking for a fund that can work from what from the sounds of it can start paying a pref immediately. And then you can at that point being in all kinds of deals. So go check me out me thanks again. Thanks

Transcribed by https://otter.ai

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Amy Tiemann

TM1 Properties