YOUR DAILY REAL ESTATE INVESTMENT SHOW
Sept. 20, 2022

The Aha Moment In Real Estate with David Robinson

The Aha Moment In Real Estate with David Robinson

Capital. His career started when his dad fired him from his first real job. He messed some things up and realized he did not want to be anyone’s employee. He dropped out of college and got his real estate license. He then spent 18 years on that side...


Capital. His career started when his dad fired him from his first real job. He messed some things up and realized he did not want to be anyone’s employee. He dropped out of college and got his real estate license. He then spent 18 years on that side of the business until he realized he had not built his wealth. He went from a traditional residential brokerage business to adding a syndication side focused on creating passive income and building wealth. 

 

 

Canovo focuses on commercial multifamily properties where strategic capital improvements and operational efficiencies create significant value. Their strategic partnerships allow investors to invest alongside experienced operating partners with a proven track record of delivering attractive risk-adjusted returns. They target large investment opportunities in various strategic markets, demonstrating strong population growth, consistent rent growth, and low vacancy.

 

 

In this episode, we discuss:

  • Going from broker to multifamily 
  • Creating operator partnerships 
  • Taking small steps and starting where you understand 
  • Building relationships 
  • Finding opportunities in a different market 
  • Making sure you use your equity 

 

Tune in on this episode to learn how to take advantage of your aha moment!

 

Find your flow, 

Casey Brown

 

Resources mentioned in this podcast:

  1. https://www.canovocapital.com/
  2. https://www.linkedin.com/in/davidtheonrobinson/
  3. https://www.instagram.com/david.t.robinson/

 

Transcript

1
00:00:00,537 --> 00:00:06,667
[casey_]: hey there and welcome to today's episode
of cash flow pro your daily real estate

2
00:00:06,727 --> 00:00:14,300
[casey_]: investing podcast and youtube channel i'm here
today with david robinson and i got to

3
00:00:14,360 --> 00:00:20,811
[casey_]: admit david whenever i saw your name
come across i was really really praying for

4
00:00:20,871 --> 00:00:22,353
[casey_]: somebody that was like eight foot tall

5
00:00:22,200 --> 00:00:22,461
[david]: oh

6
00:00:23,175 --> 00:00:26,959
[casey_]: and was epic epic basketball

7
00:00:26,370 --> 00:00:27,180
[david]: yeah

8
00:00:27,039 --> 00:00:30,363
[casey_]: player but instead we got stuck with
you so

9
00:00:30,931 --> 00:00:31,113
[david]: yeah

10
00:00:31,404 --> 00:00:32,365
[casey_]: i'm just getting man now

11
00:00:32,580 --> 00:00:32,640
[david]: i

12
00:00:32,625 --> 00:00:33,066
[casey_]: we're glad

13
00:00:32,980 --> 00:00:38,248
[david]: am i am the short white version
of david robinson

14
00:00:40,111 --> 00:00:41,193
[casey_]: man it's cool dude

15
00:00:41,730 --> 00:00:41,750
[david]: m

16
00:00:42,175 --> 00:00:45,981
[casey_]: you know i was like if if
i just was

17
00:00:45,912 --> 00:00:46,077
[david]: yeah

18
00:00:46,021 --> 00:00:48,726
[casey_]: thinking i was like man if i
if i had david robinson here man i

19
00:00:48,786 --> 00:00:49,487
[casey_]: mean you know there how many

20
00:00:49,470 --> 00:00:49,953
[david]: uh

21
00:00:49,527 --> 00:00:51,971
[casey_]: questions you got to ask about those
years that he was

22
00:00:52,069 --> 00:00:52,460
[david]: uh m

23
00:00:52,512 --> 00:00:54,675
[casey_]: but anyway so man how are you
doing today

24
00:00:55,100 --> 00:00:56,985
[david]: i'm doing great and i'm doing great
excited to be here

25
00:00:56,929 --> 00:00:57,031
[casey_]: oh

26
00:00:57,085 --> 00:00:58,328
[david]: and looking for a dark conversation

27
00:00:59,057 --> 00:01:07,110
[casey_]: awesome well david is with kanobo capital
and he is more than he wants to

28
00:01:07,170 --> 00:01:11,778
[casey_]: talk about raising capital about indications about
basically everything that we cove on this show

29
00:01:12,479 --> 00:01:15,284
[casey_]: and i can't wait to kind of
dig in here and figure out you know

30
00:01:15,384 --> 00:01:19,030
[casey_]: what things you do what things you
do maybe differently than some of the rest

31
00:01:19,090 --> 00:01:23,578
[casey_]: of us or or some of rest
of the listeners so david an't you kind

32
00:01:23,658 --> 00:01:25,882
[casey_]: o leave your basketball

33
00:01:26,940 --> 00:01:27,222
[david]: oh

34
00:01:27,043 --> 00:01:29,127
[casey_]: career out your back story

35
00:01:29,019 --> 00:01:29,040
[david]: h

36
00:01:29,247 --> 00:01:32,873
[casey_]: and let's chat about where you came
from how you got where you are and

37
00:01:33,314 --> 00:01:34,156
[casey_]: we'll kind of go from there

38
00:01:35,901 --> 00:01:40,048
[david]: well real estate is almost all i've
ever known um

39
00:01:39,930 --> 00:01:40,417
[casey_]: hm

40
00:01:40,930 --> 00:01:48,823
[david]: my career started when i was fired
by my dad at my first real job

41
00:01:48,923 --> 00:01:54,893
[david]: which was working for his small independent
mechanical engineering firm i

42
00:01:54,908 --> 00:01:55,092
[casey_]: wow

43
00:01:54,933 --> 00:01:59,461
[david]: was going i was going to college
i just returned home from a two church

44
00:01:59,541 --> 00:02:04,910
[david]: service mission and i was working working
for him going to college and i screwed

45
00:02:04,990 --> 00:02:09,818
[david]: some stuff up for the for the
last time and he finally got fed up

46
00:02:09,978 --> 00:02:16,188
[david]: with my is handling of the item
that i was dealing with and we both

47
00:02:16,729 --> 00:02:20,836
[david]: decided that it was time to part
ways and that was so that was really

48
00:02:20,876 --> 00:02:25,264
[david]: my first for and realizing i i
don't know that i'm cut out for this

49
00:02:25,484 --> 00:02:32,756
[david]: employee type um you know environment and
from there i decided to pursue real estate

50
00:02:32,996 --> 00:02:38,445
[david]: full time i actually dropped college went
full time as a real estate agent i

51
00:02:38,506 --> 00:02:43,274
[david]: got my real estate license and immediately
began you know learning the real estate business

52
00:02:43,674 --> 00:02:47,260
[david]: from a broker agent perspective i

53
00:02:47,257 --> 00:02:47,419
[casey_]: sure

54
00:02:47,380 --> 00:02:50,706
[david]: spent i've spent the last roughly eighteen
years

55
00:02:50,659 --> 00:02:50,760
[casey_]: ah

56
00:02:50,786 --> 00:02:52,729
[david]: in the real estate business the

57
00:02:53,187 --> 00:02:53,413
[casey_]: yeah

58
00:02:53,190 --> 00:02:59,842
[david]: vast majority of the first part of
my career was in managing residential sales teams

59
00:03:00,263 --> 00:03:05,537
[david]: and a national franchise brokerage and a
handful of years back about five years ago

60
00:03:07,221 --> 00:03:13,030
[david]: i looked up and realized that i
had been doing well in the real estate

61
00:03:13,371 --> 00:03:20,783
[david]: business making a good income but i
hadn't done nearly enough um in regards to

62
00:03:20,883 --> 00:03:24,269
[david]: building my own personal wealth and cash
flow and

63
00:03:24,607 --> 00:03:25,297
[casey_]: yeah

64
00:03:24,750 --> 00:03:29,778
[david]: it was sort of an a a
moment i got a call from my my

65
00:03:29,898 --> 00:03:35,745
[david]: mom one day about five years ago
and dad had just gotten out of a

66
00:03:35,805 --> 00:03:41,192
[david]: heart surgery the heart surgery went very
well he had been home for the last

67
00:03:41,272 --> 00:03:48,384
[david]: couple of days and had been feeling
horrible and ultimately had done sceptic

68
00:03:48,877 --> 00:03:49,280
[casey_]: oh

69
00:03:48,965 --> 00:03:51,529
[david]: he got an infection during the surgery
had

70
00:03:51,568 --> 00:03:51,790
[casey_]: oh

71
00:03:51,569 --> 00:03:52,339
[david]: gone septic

72
00:03:52,073 --> 00:03:52,497
[casey_]: man

73
00:03:53,000 --> 00:03:58,669
[david]: basically died they revived him on the
ambulance in the ambulance ride to the hospital

74
00:03:59,167 --> 00:03:59,187
[casey_]: m

75
00:03:59,170 --> 00:04:03,717
[david]: they revived him he ended up making
it but that was my a moment when

76
00:04:03,777 --> 00:04:08,666
[david]: i realized okay things got to give
i really have to hunker down and focus

77
00:04:08,766 --> 00:04:12,913
[david]: on building wealth for me and my
family and so i shifted my entire business

78
00:04:13,333 --> 00:04:19,804
[david]: from residential traditional residential brokerage business too
the investor side of the business and so

79
00:04:19,844 --> 00:04:25,554
[david]: i started serving investor clients and i
still have that brokerage today so there's two

80
00:04:25,634 --> 00:04:26,455
[david]: parts to my business

81
00:04:26,857 --> 00:04:27,181
[casey_]: yes

82
00:04:26,996 --> 00:04:32,986
[david]: there's the brokerage business which is serving
buying hold investors who are looking to acquire

83
00:04:33,407 --> 00:04:39,617
[david]: small scale multi family property for their
own personal portfolios here in utah the greater

84
00:04:39,677 --> 00:04:45,245
[david]: utah valley um anything when i say
small scale and referring to anything under roughly

85
00:04:45,345 --> 00:04:47,629
[david]: five million dollars all the way down
to your typical fourplex

86
00:04:48,467 --> 00:04:48,809
[casey_]: got you

87
00:04:49,180 --> 00:04:49,240
[david]: so

88
00:04:49,231 --> 00:04:49,412
[casey_]: got

89
00:04:49,320 --> 00:04:55,085
[david]: we helped those clients and then i
also have the uhsindication side of the business

90
00:04:56,106 --> 00:04:59,689
[david]: that i'm happy to dive into and
talk about why i transitioned and all that

91
00:04:59,749 --> 00:05:00,984
[david]: if you like oh

92
00:05:00,737 --> 00:05:11,329
[casey_]: sure sure man your story sounds like
dude it's almost identical to mind in where

93
00:05:11,689 --> 00:05:17,379
[casey_]: although i am a few years into
that that shift problem not quite as far

94
00:05:17,519 --> 00:05:21,606
[casey_]: in as you have been for as
many years into the shift of saying hey

95
00:05:23,048 --> 00:05:27,596
[casey_]: you know i looked at it when
mile moment hit i was like man i

96
00:05:27,716 --> 00:05:33,381
[casey_]: sold seventy three properties last year right
on the sales side residential single family residential

97
00:05:33,461 --> 00:05:39,807
[casey_]: up to you know a few smaller
commercial deals and i was like this is

98
00:05:40,128 --> 00:05:45,597
[casey_]: this is great and it's okay it's
not fun because everything

99
00:05:45,279 --> 00:05:45,300
[david]: m

100
00:05:45,697 --> 00:05:51,186
[casey_]: is like pulling teeth and then i
was like all right i made decent money

101
00:05:51,528 --> 00:05:56,951
[casey_]: but how are these people making generate
like generational wealth really

102
00:05:57,164 --> 00:05:57,429
[david]: right

103
00:05:57,972 --> 00:06:01,755
[casey_]: and and when i sat down i
was like what's the difference in what i'm

104
00:06:01,836 --> 00:06:09,027
[casey_]: doing and when i realized that it
was such a transactional business and the transactional

105
00:06:09,107 --> 00:06:14,676
[casey_]: part of it was really it was
it was for all intents and purposes suffocating

106
00:06:14,716 --> 00:06:18,763
[casey_]: me because it's because you work so
hard to get that transaction across the line

107
00:06:18,783 --> 00:06:21,387
[casey_]: you get that ten thousand dollar commission
check you know what you turn around you

108
00:06:21,408 --> 00:06:23,691
[casey_]: spend that ten thousand or comisioncheck then
you got to go for the next one

109
00:06:24,192 --> 00:06:26,055
[casey_]: then you got to go for the
next one and if that next one doesn't

110
00:06:26,115 --> 00:06:31,013
[casey_]: come you can get your ass in
a pinch real quick and so it's almost

111
00:06:31,093 --> 00:06:34,539
[casey_]: identical man al the way down to
my dad had to have heard surgery although

112
00:06:34,365 --> 00:06:34,385
[david]: m

113
00:06:34,619 --> 00:06:38,706
[casey_]: his was earlier on and it was
matter fact it was ten years ago yesterday

114
00:06:39,006 --> 00:06:39,066
[casey_]: no

115
00:06:39,191 --> 00:06:39,517
[david]: oh wow

116
00:06:39,849 --> 00:06:45,351
[casey_]: eleven years ago yesterday and so it's
just you know those kind of things wake

117
00:06:45,371 --> 00:06:49,357
[casey_]: you up in life and and when
when i'm sitting there and like you said

118
00:06:49,738 --> 00:06:50,199
[casey_]: you just you

119
00:06:50,163 --> 00:06:50,224
[david]: ah

120
00:06:50,299 --> 00:06:52,623
[casey_]: begin to reflect on saying

121
00:06:52,575 --> 00:06:52,616
[david]: a

122
00:06:53,424 --> 00:06:57,972
[casey_]: man you know what am i doing
here to protect my future my kids future

123
00:06:58,052 --> 00:07:01,037
[casey_]: you know not that once they had
eighteen or twenty years old not that i

124
00:07:01,197 --> 00:07:06,847
[casey_]: necesarily have to so much worry about
them but nevertheless you know you've got to

125
00:07:07,069 --> 00:07:12,531
[casey_]: it so i love that part of
that you really high lighted the fact that

126
00:07:13,231 --> 00:07:16,855
[casey_]: the sales part of it and how
you transitioned that into

127
00:07:16,859 --> 00:07:16,980
[david]: yeah

128
00:07:18,518 --> 00:07:21,065
[casey_]: one side kind of serves the other
now really right

129
00:07:22,260 --> 00:07:22,741
[david]: absolutely

130
00:07:22,357 --> 00:07:23,017
[casey_]: yeah

131
00:07:22,801 --> 00:07:27,309
[david]: i mean that was really i knew
i didn't know exactly how i was going

132
00:07:27,429 --> 00:07:33,559
[david]: to go about building wealth and passive
income i explored a handful of different

133
00:07:33,798 --> 00:07:33,980
[casey_]: sure

134
00:07:34,661 --> 00:07:37,746
[david]: when i decided that it was time
you know after that a moment when my

135
00:07:37,846 --> 00:07:44,978
[david]: dad recognizing that i hadn't accomplished what
i needed to m from a cash flowing

136
00:07:45,098 --> 00:07:49,125
[david]: wealth building pers spective i made that
transition i just didn't know exactly how that

137
00:07:49,165 --> 00:07:52,150
[david]: was going to happen i had a
mentor of mine a friend of mine that

138
00:07:52,170 --> 00:07:54,634
[david]: i went to lunch with i talked
to him about this sort of what was

139
00:07:54,654 --> 00:07:57,639
[david]: going on in my head and he
really encouraged me to get in the multi

140
00:07:57,760 --> 00:08:06,915
[david]: family and so the closest proximity uh
you know shift was okay i'm already a

141
00:08:06,975 --> 00:08:12,444
[david]: broker i'm already in the broker you
know the real estate brokerage space let's just

142
00:08:12,805 --> 00:08:15,189
[david]: make a slight pivot into

143
00:08:14,817 --> 00:08:14,940
[casey_]: yep

144
00:08:15,930 --> 00:08:20,958
[david]: the multi family space the investment property
space and start serving clients in that space

145
00:08:21,319 --> 00:08:25,786
[david]: and really focus in that are and
so i dove headlong into it left the

146
00:08:25,846 --> 00:08:27,469
[david]: residential brokerage that i was at

147
00:08:27,997 --> 00:08:28,017
[casey_]: m

148
00:08:28,250 --> 00:08:32,317
[david]: started my own brokerage and started down
this path of multi family and started with

149
00:08:32,827 --> 00:08:33,739
[casey_]: uh

150
00:08:32,918 --> 00:08:34,300
[david]: working with client that we're looking

151
00:08:34,286 --> 00:08:34,327
[casey_]: uh

152
00:08:34,361 --> 00:08:37,045
[david]: to buy small scale multi family and

153
00:08:36,967 --> 00:08:37,173
[casey_]: oh

154
00:08:37,967 --> 00:08:42,214
[david]: have been very successful with that we've
served a lot of clients love working with

155
00:08:42,274 --> 00:08:46,683
[david]: our clients that are looking to buy
that product type but what realize is that

156
00:08:46,904 --> 00:08:54,863
[david]: i was having dozens of investor calls
on a monthly basis

157
00:08:55,547 --> 00:08:55,689
[casey_]: yeah

158
00:08:56,107 --> 00:09:03,185
[david]: and many of those investor calls ended
up going into the conversation with that investor

159
00:09:03,325 --> 00:09:07,412
[david]: wanting to buy small multi family property
for their own personal portfolio

160
00:09:07,998 --> 00:09:08,322
[casey_]: but

161
00:09:08,013 --> 00:09:11,178
[david]: and coming out the other end realizing
oh my

162
00:09:11,107 --> 00:09:11,836
[casey_]: yea

163
00:09:11,278 --> 00:09:15,957
[david]: gosh actually don't want to own that
fourplex or that sigplex

164
00:09:16,670 --> 00:09:16,810
[casey_]: why

165
00:09:16,720 --> 00:09:16,981
[david]: or that

166
00:09:16,870 --> 00:09:17,070
[casey_]: did i

167
00:09:17,082 --> 00:09:17,102
[david]: a

168
00:09:17,130 --> 00:09:17,291
[casey_]: know

169
00:09:17,222 --> 00:09:18,688
[david]: place

170
00:09:17,431 --> 00:09:20,654
[casey_]: that was the next step why did
i know that i don't even know how

171
00:09:20,754 --> 00:09:22,456
[casey_]: i knew that my god

172
00:09:22,892 --> 00:09:26,057
[david]: and so that was sort of the
a a moment for me was number

173
00:09:26,007 --> 00:09:26,313
[casey_]: yes

174
00:09:26,238 --> 00:09:33,670
[david]: one i had built i put a
lot of effort into building a large multi

175
00:09:33,790 --> 00:09:35,734
[david]: family invest our network over

176
00:09:35,757 --> 00:09:35,902
[casey_]: yep

177
00:09:35,954 --> 00:09:41,123
[david]: twenty five hundred quality buy and hold
investors in my network at this point in

178
00:09:41,203 --> 00:09:50,538
[david]: time and very large per centage of
that network has zero interest in owning small

179
00:09:50,618 --> 00:09:52,522
[david]: scale multi family they thought they did

180
00:09:53,179 --> 00:09:53,340
[casey_]: that's

181
00:09:53,303 --> 00:09:53,603
[david]: but when

182
00:09:53,521 --> 00:09:53,683
[casey_]: right

183
00:09:53,663 --> 00:09:57,931
[david]: it really comes down to it they
just want all the benefit of owning real

184
00:09:57,971 --> 00:10:03,346
[david]: estate they don't necessarily want to actually
have to deal with the personal ownership of

185
00:10:03,427 --> 00:10:03,968
[david]: the real estate

186
00:10:04,347 --> 00:10:04,572
[casey_]: i mean

187
00:10:04,642 --> 00:10:05,220
[david]: yeah

188
00:10:06,027 --> 00:10:06,287
[casey_]: you mean

189
00:10:06,240 --> 00:10:06,481
[david]: yeah

190
00:10:06,327 --> 00:10:11,913
[casey_]: they don't like changing light bulbs and
worrying about ax systems on saturday afternoons and

191
00:10:12,721 --> 00:10:12,881
[david]: well

192
00:10:12,794 --> 00:10:13,335
[casey_]: i can't believe

193
00:10:13,121 --> 00:10:13,482
[david]: and and

194
00:10:13,395 --> 00:10:13,455
[casey_]: it

195
00:10:13,903 --> 00:10:16,567
[david]: and that's the common you know that's
the common you know

196
00:10:16,507 --> 00:10:17,137
[casey_]: oh

197
00:10:17,228 --> 00:10:21,335
[david]: line that i often use is he
you know the toilets tenants termites all that

198
00:10:21,636 --> 00:10:25,903
[david]: the reality is there's ways to own
small multi family and build your own personal

199
00:10:25,963 --> 00:10:31,452
[david]: portfolio where it's less management personal management
intensive like you hire third party management companies

200
00:10:31,732 --> 00:10:36,340
[david]: there's ways to do it but here's
the reality they still have to go through

201
00:10:36,360 --> 00:10:40,126
[david]: a process of learning how to invest
in those type of properties you

202
00:10:40,057 --> 00:10:40,199
[casey_]: that's

203
00:10:40,207 --> 00:10:40,427
[david]: still

204
00:10:40,240 --> 00:10:40,465
[casey_]: right

205
00:10:40,487 --> 00:10:44,654
[david]: have to manage the manager you still
have to underwrite the deal and be knowledgeable

206
00:10:44,734 --> 00:10:48,460
[david]: about the deal and you have to
go and get your own financing you know

207
00:10:48,500 --> 00:10:52,928
[david]: there's all these pieces so the reality
is yeah a lot of my investors were

208
00:10:53,268 --> 00:10:59,599
[david]: busy professionals business owners who thought that
they wanted to build their own portfolio but

209
00:10:59,719 --> 00:11:05,228
[david]: didn't and so that caused me to
then start to explore alternative ways to help

210
00:11:05,489 --> 00:11:07,452
[david]: this segment of my investor network

211
00:11:07,876 --> 00:11:07,897
[casey_]: m

212
00:11:07,953 --> 00:11:10,016
[david]: that didn't want to own the real
estate they just

213
00:11:09,967 --> 00:11:10,109
[casey_]: yeah

214
00:11:10,056 --> 00:11:11,639
[david]: wanted to invest in it

215
00:11:12,207 --> 00:11:12,351
[casey_]: yep

216
00:11:12,340 --> 00:11:16,767
[david]: and that's when i start to explore
some different things including like um you know

217
00:11:17,208 --> 00:11:21,836
[david]: uh buying turnkey rentals partnering with a
turnkey rental company in the midwest

218
00:11:22,177 --> 00:11:22,897
[casey_]: yeah

219
00:11:22,237 --> 00:11:25,001
[david]: and helping them get involved with that
i do and that wasn't the path i

220
00:11:25,041 --> 00:11:29,589
[david]: wanted to go ultimately i was exposed
to this indication model and how i could

221
00:11:29,689 --> 00:11:37,429
[david]: partner with quality operators in other parts
of the country prevent that as an operator

222
00:11:37,490 --> 00:11:43,377
[david]: and a sponsor bet their deal and
then partner with them and be a conduit

223
00:11:43,497 --> 00:11:51,751
[david]: for my investor network to participate in
uh you know commercial grade multi fam assets

224
00:11:52,172 --> 00:11:55,478
[david]: that they otherwise wouldn't have a desire
or even know about

225
00:11:56,377 --> 00:11:57,779
[casey_]: try man that's

226
00:11:58,423 --> 00:11:58,546
[david]: no

227
00:11:58,500 --> 00:12:02,808
[casey_]: i mean even the further on you
go it's like everything that you say is

228
00:12:02,848 --> 00:12:07,636
[casey_]: just and i got to imagine if
you and i are both sitting here looking

229
00:12:07,736 --> 00:12:15,995
[casey_]: at this hey these are things that
that that we decided were what we wanted

230
00:12:16,035 --> 00:12:18,521
[casey_]: to do that there's got to be
a slue of other people out there because

231
00:12:18,702 --> 00:12:23,721
[casey_]: i find myself typically there's some people
below some people some people below me some

232
00:12:23,761 --> 00:12:27,908
[casey_]: people above me and i'm pretty well
an average person right and so when you

233
00:12:27,988 --> 00:12:31,855
[casey_]: start looking at it like that man
i mean and you start thinking okay what

234
00:12:31,935 --> 00:12:38,736
[casey_]: can i do to two translate to
these folks that they can own this real

235
00:12:38,776 --> 00:12:44,057
[casey_]: estate and they don't have to worry
about all the teas toilets termites tenants uh

236
00:12:45,419 --> 00:12:46,421
[casey_]: you know that kind of stuff

237
00:12:46,530 --> 00:12:47,370
[david]: oh

238
00:12:46,701 --> 00:12:51,730
[casey_]: and so the way that you can
translate that is really where i

239
00:12:51,780 --> 00:12:52,043
[david]: yes

240
00:12:51,810 --> 00:12:55,196
[casey_]: feel like you could pick up some
people and pick up some interest but what

241
00:12:55,099 --> 00:12:55,530
[david]: hm

242
00:12:55,316 --> 00:12:58,982
[casey_]: did you so so with all that
being said and and me being in full

243
00:12:59,042 --> 00:13:02,908
[casey_]: agreement in full understanding of exactly where
you were and where you went to and

244
00:13:02,949 --> 00:13:08,117
[casey_]: where you are now let's talk a
little bit about i want to i want

245
00:13:08,157 --> 00:13:11,062
[casey_]: to kind of dive just a little
bit in towards the indication part of this

246
00:13:11,242 --> 00:13:15,810
[casey_]: and say okay because there's a lot
of people out there who who are noticing

247
00:13:16,451 --> 00:13:21,219
[casey_]: that maybe they are a decent operator
right but they just don't know how to

248
00:13:21,459 --> 00:13:25,807
[casey_]: take down a ten million dollar apartment
building or you know even a five million

249
00:13:25,847 --> 00:13:29,433
[casey_]: dollar apartment building for that matter and
of course we all know you raise a

250
00:13:29,473 --> 00:13:35,302
[casey_]: million you borrow for all but i
want to hear a little bit more about

251
00:13:35,403 --> 00:13:38,768
[casey_]: like let's say let's just go and
talk about your first deal no matter if

252
00:13:38,828 --> 00:13:42,354
[casey_]: it was a duplex or a hundred
units whatever that first deal was where you

253
00:13:42,575 --> 00:13:48,949
[casey_]: actually rat outside capital had a key
principle or whatever or maybe you took the

254
00:13:49,010 --> 00:13:51,215
[casey_]: note at whatever let's talk about that

255
00:13:52,471 --> 00:13:55,556
[david]: um i'll use two examples the first

256
00:13:55,358 --> 00:13:55,542
[casey_]: okay

257
00:13:55,796 --> 00:13:57,059
[david]: is um

258
00:13:58,057 --> 00:13:58,341
[casey_]: oh

259
00:13:58,080 --> 00:14:01,065
[david]: my first acquisition of a commercial multi

260
00:14:01,057 --> 00:14:01,282
[casey_]: oh

261
00:14:01,165 --> 00:14:01,967
[david]: family property

262
00:14:01,854 --> 00:14:01,957
[casey_]: yeah

263
00:14:02,648 --> 00:14:07,055
[david]: it was not struck this indication it
was a joint venture but i think there's

264
00:14:07,095 --> 00:14:11,743
[david]: a few points to illustrate here number
one is i started where i felt comfortable

265
00:14:12,444 --> 00:14:18,695
[david]: um i couldn't wrap my head around
how to go acquiring you know twenty five

266
00:14:18,735 --> 00:14:22,862
[david]: million dollars to a forty million dollar
apartment building that took time for me to

267
00:14:22,922 --> 00:14:28,130
[david]: sort of understand the concepts and understand
the process and the business model i started

268
00:14:28,150 --> 00:14:32,257
[david]: where i could which was in my
own back yard with a property that i

269
00:14:32,377 --> 00:14:36,885
[david]: felt like was pushing me a little
bit out of my boundary right so i

270
00:14:36,965 --> 00:14:41,812
[david]: ended up buying a fourteen unit apartment
building just south of salt lake city i

271
00:14:41,912 --> 00:14:50,022
[david]: bought it completely off market direct from
owner through direct mail negotiated contract ah brought

272
00:14:49,988 --> 00:14:50,148
[casey_]: that's

273
00:14:50,102 --> 00:14:50,123
[david]: a

274
00:14:50,188 --> 00:14:50,289
[casey_]: like

275
00:14:50,223 --> 00:14:50,706
[david]: partner

276
00:14:50,329 --> 00:14:54,144
[casey_]: what everybody always hears about but nobody
ever that's like the gold nugget right

277
00:14:55,502 --> 00:15:01,892
[david]: it happens it works it just takes
persistent cy persistence and consistency over time

278
00:15:02,548 --> 00:15:02,689
[casey_]: sure

279
00:15:02,774 --> 00:15:06,039
[david]: so i can go into the details
of that but i'll just sort of high

280
00:15:06,240 --> 00:15:11,108
[david]: the points which are got the deal
under contract i had already started building my

281
00:15:11,188 --> 00:15:15,715
[david]: investor network i knew i had two
partners that would be perfect partners for this

282
00:15:15,796 --> 00:15:20,103
[david]: deal it actually ended up not being
deal that i was really super excited about

283
00:15:20,423 --> 00:15:23,789
[david]: but i knew they would be excited
about it was perfect for them they owned

284
00:15:23,829 --> 00:15:28,837
[david]: a property management company here locally that
manages you know a handful of other assets

285
00:15:28,857 --> 00:15:34,727
[david]: that were just exactly this which was
nineteen seventy construction to bed one bath eight

286
00:15:34,767 --> 00:15:39,355
[david]: hundred square foot units so they knew
this product and it was right up their

287
00:15:39,415 --> 00:15:45,205
[david]: alley so i got it under tract
i went through the whole diligence process i

288
00:15:45,405 --> 00:15:49,271
[david]: brought them into the picture they were
excited about it we joint ventured on the

289
00:15:49,352 --> 00:15:55,662
[david]: deal i i actually had zero of
my own money in that deal at the

290
00:15:55,702 --> 00:15:58,707
[david]: end of the day and i held
an equity position with them so we joined

291
00:15:58,767 --> 00:16:02,313
[david]: venture on it they brought the ten
thirty one exchange from another property had all

292
00:16:02,353 --> 00:16:05,699
[david]: the capital for that so that was
my first for i think it's important for

293
00:16:05,779 --> 00:16:10,607
[david]: people that starting to like yes you
want to push yourself but sometimes it doesn't

294
00:16:10,647 --> 00:16:15,856
[david]: necessarily mean i learned so much on
that transaction um that helped me get into

295
00:16:16,557 --> 00:16:19,024
[david]: the larger sindication deal and to understand

296
00:16:18,869 --> 00:16:18,992
[casey_]: sure

297
00:16:19,084 --> 00:16:23,521
[david]: what goes on behind the scenes on
those type of indication deals so that was

298
00:16:23,581 --> 00:16:29,350
[david]: the very first deal then i realized
okay i know that my investor network has

299
00:16:29,410 --> 00:16:36,522
[david]: an appetite for getting involved passively in
larger commercial transactions and so i started to

300
00:16:36,562 --> 00:16:41,511
[david]: build a network with other operators that
were across the country in particular in the

301
00:16:41,551 --> 00:16:44,656
[david]: midwest we were in a hi we
are in a high growth market here in

302
00:16:44,736 --> 00:16:46,279
[david]: utah i mean obviously all across the

303
00:16:46,238 --> 00:16:46,382
[casey_]: yeah

304
00:16:46,319 --> 00:16:46,699
[david]: country i

305
00:16:47,097 --> 00:16:47,221
[casey_]: yeah

306
00:16:47,461 --> 00:16:52,108
[david]: but utah is a low cash flow
high growth state right now especially as i

307
00:16:53,150 --> 00:16:54,192
[david]: as it relates to multi family

308
00:16:54,607 --> 00:16:54,728
[casey_]: yep

309
00:16:54,933 --> 00:16:58,299
[david]: so for me i wanted i knew
that my investors had an appetite for more

310
00:16:58,399 --> 00:17:06,933
[david]: cash flow and so i sought out
locations that generally had a better better chance

311
00:17:07,053 --> 00:17:11,420
[david]: of producing a higher cash on cash
return maybe

312
00:17:11,247 --> 00:17:11,368
[casey_]: yep

313
00:17:11,481 --> 00:17:14,205
[david]: a little bit lower equity but a
little bit more stable so i was generally

314
00:17:14,265 --> 00:17:18,512
[david]: looking in some of the midwest markets
in kansas city was one of those and

315
00:17:18,893 --> 00:17:26,465
[david]: identified on an operator that was there
a lead sponsor a indicator bunch of different

316
00:17:26,485 --> 00:17:32,315
[david]: terminology that's used for individuals that are
running sindications and leading indications they

317
00:17:32,407 --> 00:17:32,551
[casey_]: yes

318
00:17:32,415 --> 00:17:38,024
[david]: were entrenched in the kansas city market
um i had been building a relationship with

319
00:17:38,064 --> 00:17:40,348
[david]: this person for about a year before
we

320
00:17:40,318 --> 00:17:40,562
[casey_]: sorry

321
00:17:40,428 --> 00:17:45,697
[david]: did a deal together and by the
time we had been in contact we had

322
00:17:45,757 --> 00:17:50,746
[david]: done some coaching together i had been
prepping my investor network for these type of

323
00:17:50,786 --> 00:17:54,732
[david]: deals i had been sending emails to
my investors asking them sort of pulling them

324
00:17:55,493 --> 00:18:00,762
[david]: on um whether or not they would
be interested partnering with us on a deal

325
00:18:00,842 --> 00:18:05,250
[david]: in the midwest outside of utah and
i had many of them at responded very

326
00:18:05,330 --> 00:18:10,959
[david]: positively that so i knew there was
an appetite so ultimately i kept notifying my

327
00:18:11,160 --> 00:18:15,467
[david]: and you're out in kansas city saying
hey okay i feel like my investors and

328
00:18:15,727 --> 00:18:20,034
[david]: i are ready for a deal out
there on your next deal let's really talk

329
00:18:20,074 --> 00:18:23,781
[david]: about it let's dive into it he
had a deal come up we looked at

330
00:18:23,841 --> 00:18:28,228
[david]: it together we under wrote the deal
we analyzed it i flew out to kansas

331
00:18:28,288 --> 00:18:29,230
[david]: city i

332
00:18:29,197 --> 00:18:29,505
[casey_]: my

333
00:18:29,610 --> 00:18:33,196
[david]: toward comps i went through the due
diligence process with them

334
00:18:33,907 --> 00:18:34,132
[casey_]: yes

335
00:18:34,058 --> 00:18:37,426
[david]: and ultimately felt like this was an
opportunity that would work well for what we

336
00:18:37,466 --> 00:18:38,248
[david]: were trying to accomplish

337
00:18:38,868 --> 00:18:39,154
[casey_]: awesome

338
00:18:39,630 --> 00:18:43,642
[david]: so i'll stop there there's more to
that story but that's how that was my

339
00:18:43,802 --> 00:18:46,088
[david]: first foray into the indication side of
the business

340
00:18:46,668 --> 00:18:52,024
[casey_]: yeah and it's interesting that you chose
kansas city because man it's like as of

341
00:18:52,164 --> 00:18:58,235
[casey_]: late kansas city has just been on
fire like i'm tying out in the last

342
00:18:58,295 --> 00:19:01,881
[casey_]: like two years year i mean not
just their football team but they've been on

343
00:19:02,182 --> 00:19:02,482
[casey_]: fire

344
00:19:02,370 --> 00:19:02,736
[david]: yes

345
00:19:02,582 --> 00:19:04,706
[casey_]: like everything about kansas city has been
on

346
00:19:04,710 --> 00:19:04,992
[david]: oh

347
00:19:04,786 --> 00:19:07,234
[casey_]: fire um and i'm not a chief
saying by

348
00:19:07,246 --> 00:19:07,410
[david]: yes

349
00:19:07,294 --> 00:19:07,515
[casey_]: the way

350
00:19:08,010 --> 00:19:09,540
[david]: oh

351
00:19:08,478 --> 00:19:09,080
[casey_]: m but

352
00:19:09,540 --> 00:19:09,841
[david]: oh

353
00:19:09,602 --> 00:19:16,856
[casey_]: the so of i guess now i
want to i want to find

354
00:19:16,704 --> 00:19:16,786
[david]: ah

355
00:19:16,976 --> 00:19:17,697
[casey_]: out why

356
00:19:17,670 --> 00:19:17,790
[david]: oh

357
00:19:18,018 --> 00:19:22,445
[casey_]: kansas city and i know i know
why the general idea of saying hey higher

358
00:19:22,525 --> 00:19:31,310
[casey_]: cash flow but what other things stuck
out because right now the market basically there's

359
00:19:31,370 --> 00:19:36,959
[casey_]: no cash flow and just about anything
right now i mean there's some but it's

360
00:19:37,060 --> 00:19:39,824
[casey_]: not where you can go out and
provide a nice nine ten per cent per

361
00:19:39,984 --> 00:19:40,045
[casey_]: f

362
00:19:40,140 --> 00:19:40,241
[david]: oh

363
00:19:40,806 --> 00:19:46,652
[casey_]: and just really hand out good returns
right now obviously we think that the growth

364
00:19:46,732 --> 00:19:49,637
[casey_]: market is gonna is going to catch
up and then it's going to settle a

365
00:19:49,677 --> 00:19:53,483
[casey_]: little bit and go on but i
want to know what other reasons stuck out

366
00:19:53,543 --> 00:19:56,734
[casey_]: to you about kansas and what year
we're talking about two by the way

367
00:19:57,903 --> 00:19:59,854
[david]: what year of the asset or what

368
00:19:59,907 --> 00:20:00,048
[casey_]: yeah

369
00:19:59,934 --> 00:20:00,115
[david]: year

370
00:20:00,833 --> 00:20:04,271
[casey_]: what year did kansas city get on
what year was

371
00:20:04,260 --> 00:20:04,401
[david]: this

372
00:20:04,332 --> 00:20:05,195
[casey_]: kansas city here

373
00:20:05,124 --> 00:20:07,031
[david]: this is roughly

374
00:20:07,537 --> 00:20:08,407
[casey_]: oh

375
00:20:07,954 --> 00:20:08,757
[david]: eighteen months ago

376
00:20:09,647 --> 00:20:11,690
[casey_]: okay perfect so

377
00:20:11,782 --> 00:20:11,885
[david]: so

378
00:20:12,552 --> 00:20:15,637
[casey_]: what else about kansas city stuck out
because you know

379
00:20:15,660 --> 00:20:17,250
[david]: yeah

380
00:20:15,697 --> 00:20:20,385
[casey_]: you had about seven or eight different
areas that that that would could argue to

381
00:20:20,685 --> 00:20:25,270
[casey_]: argue you be excuse me be along
the same lines as kansas

382
00:20:25,200 --> 00:20:25,500
[david]: yeah

383
00:20:25,310 --> 00:20:27,613
[casey_]: city from from a cash flow perspective

384
00:20:28,066 --> 00:20:28,226
[david]: yeah

385
00:20:28,273 --> 00:20:28,554
[casey_]: um

386
00:20:29,148 --> 00:20:29,589
[david]: my my

387
00:20:29,515 --> 00:20:29,635
[casey_]: but

388
00:20:29,729 --> 00:20:29,910
[david]: answer

389
00:20:29,895 --> 00:20:30,135
[casey_]: why

390
00:20:29,950 --> 00:20:33,357
[david]: is probably going to sure my answer
may surprise you it had nothing to do

391
00:20:33,377 --> 00:20:34,038
[david]: with kansas city

392
00:20:34,598 --> 00:20:34,801
[casey_]: okay

393
00:20:35,662 --> 00:20:41,002
[david]: kansas city checked a few boxes but
it came down to the sponsor

394
00:20:40,837 --> 00:20:41,079
[casey_]: yeah

395
00:20:41,062 --> 00:20:42,124
[david]: for me more than

396
00:20:42,089 --> 00:20:42,311
[casey_]: okay

397
00:20:42,284 --> 00:20:51,098
[david]: anything else above all other metrics geographic
locations anything else the most important thing for

398
00:20:51,179 --> 00:20:55,622
[david]: me especially my first deal what's the
sponsor

399
00:20:56,457 --> 00:20:56,678
[casey_]: sure

400
00:20:57,450 --> 00:20:57,711
[david]: who was

401
00:20:57,682 --> 00:20:57,823
[casey_]: man

402
00:20:57,792 --> 00:20:57,812
[david]: i

403
00:20:57,903 --> 00:20:57,923
[casey_]: i

404
00:20:57,912 --> 00:20:58,254
[david]: partnering

405
00:20:58,024 --> 00:20:58,184
[casey_]: have

406
00:20:58,334 --> 00:20:59,279
[david]: with who

407
00:20:59,047 --> 00:21:03,835
[casey_]: there's deals in birmingham right now who
the hell would have ever thought birmingham would

408
00:21:03,875 --> 00:21:04,476
[casey_]: have been a hot

409
00:21:04,820 --> 00:21:04,983
[david]: yeah

410
00:21:04,897 --> 00:21:09,004
[casey_]: on fire market but it's the same
situation people are like man they go we've

411
00:21:09,064 --> 00:21:14,613
[casey_]: got these these first in class operators
that started buying there right and then all

412
00:21:14,633 --> 00:21:19,621
[casey_]: of a sudden i mean and that
comes down to the the that's a reflection

413
00:21:19,762 --> 00:21:21,925
[casey_]: on operators in general when they can

414
00:21:21,962 --> 00:21:22,122
[david]: yeah

415
00:21:21,965 --> 00:21:24,781
[casey_]: go into it kit like birmingham alabama

416
00:21:24,590 --> 00:21:28,888
[david]: well well to illustrate the point i'm
in

417
00:21:30,127 --> 00:21:30,412
[casey_]: oh

418
00:21:30,301 --> 00:21:32,616
[david]: just south of salt lake sam on
greater salt lake city market

419
00:21:33,148 --> 00:21:33,292
[casey_]: sure

420
00:21:33,310 --> 00:21:41,962
[david]: yeah i find it hard to believe
that someone in um m let's call it

421
00:21:42,062 --> 00:21:42,423
[david]: florida

422
00:21:43,502 --> 00:21:44,137
[casey_]: hm

423
00:21:43,548 --> 00:21:50,297
[david]: is going to have a better chance
of identifying quality opportunity before i do

424
00:21:50,837 --> 00:21:56,494
[casey_]: and that's the question that's exactly it
right there so

425
00:21:56,520 --> 00:21:56,900
[david]: yeah

426
00:21:56,574 --> 00:21:59,184
[casey_]: the operators start finding those opportunities right

427
00:22:00,025 --> 00:22:06,416
[david]: right at least at least that was
my mind set and it held true these

428
00:22:06,496 --> 00:22:09,761
[david]: guys that that i partnered with they're

429
00:22:09,697 --> 00:22:10,045
[casey_]: oh

430
00:22:09,821 --> 00:22:17,285
[david]: entrenched in the kansas city commercial real
estate market they have been there for five

431
00:22:18,147 --> 00:22:20,551
[david]: and fifteen sixteen years

432
00:22:20,957 --> 00:22:21,119
[casey_]: yeah

433
00:22:21,612 --> 00:22:26,100
[david]: they know that market i'm i'm not
going to go into that market and that

434
00:22:26,160 --> 00:22:26,260
[david]: i'm

435
00:22:26,287 --> 00:22:26,877
[casey_]: oh

436
00:22:26,300 --> 00:22:29,766
[david]: going to find a better opportunity and
be able to analyze that opportunity

437
00:22:29,798 --> 00:22:30,609
[casey_]: exactly

438
00:22:30,067 --> 00:22:33,232
[david]: it's not just about finding the opportunity
it's about identifying

439
00:22:33,148 --> 00:22:33,494
[casey_]: yes

440
00:22:33,292 --> 00:22:36,678
[david]: if it truly is a good opportunity
because of the market dynamics

441
00:22:36,347 --> 00:22:36,796
[casey_]: correct

442
00:22:36,758 --> 00:22:40,836
[david]: the geographic challenges or opportunities that are
there et cetera et cetera

443
00:22:42,107 --> 00:22:46,474
[casey_]: well and that's that's the whole thing
that really i think keeps a lot of

444
00:22:46,554 --> 00:22:50,140
[casey_]: people from figuring this figuring

445
00:22:50,760 --> 00:22:52,350
[david]: yeah

446
00:22:50,781 --> 00:22:53,466
[casey_]: out scale like everybody wants to scale

447
00:22:53,360 --> 00:22:56,940
[david]: yeah

448
00:22:53,526 --> 00:22:57,352
[casey_]: before they and start right but but
then you sit down and you start looking

449
00:22:57,432 --> 00:23:00,177
[casey_]: you start taking the vision for the
next ten years and i was like okay

450
00:23:00,778 --> 00:23:06,087
[casey_]: i want to be in whatever market
right and it could be any of then

451
00:23:06,207 --> 00:23:08,952
[casey_]: people have a hard time deciding well
i want to learn this mark i learn

452
00:23:09,012 --> 00:23:13,359
[casey_]: this market what happens if something happens
here and it becomes the it becomes a

453
00:23:13,399 --> 00:23:17,225
[casey_]: barrage of whatever you've got going on
so it's interesting to finally come across the

454
00:23:17,245 --> 00:23:21,493
[casey_]: mind that saw market chosen operator and
said hey these are my guys because those

455
00:23:21,553 --> 00:23:26,902
[casey_]: geographic fences can be awful tall for
people who have lived worked

456
00:23:27,271 --> 00:23:27,435
[david]: yeah

457
00:23:27,322 --> 00:23:29,486
[casey_]: and know a specific market like you
said

458
00:23:29,790 --> 00:23:30,450
[david]: yeah

459
00:23:29,887 --> 00:23:33,256
[casey_]: there's very little chance that somebody from
florida is going to come into your area

460
00:23:33,878 --> 00:23:39,490
[casey_]: and know hey man this apartment billing
here is worth money it's the best damage

461
00:23:39,570 --> 00:23:42,253
[casey_]: the best deal i found all year
well he didn't know that there's a new

462
00:23:42,333 --> 00:23:44,576
[casey_]: sewer plant getting put right across the
street

463
00:23:45,183 --> 00:23:45,427
[david]: right

464
00:23:45,438 --> 00:23:47,404
[casey_]: and that's why the damn thing is
so cheap

465
00:23:47,924 --> 00:23:48,148
[david]: right

466
00:23:48,367 --> 00:23:51,532
[casey_]: and so and that's what i mean
by

467
00:23:51,472 --> 00:23:51,553
[david]: ah

468
00:23:52,815 --> 00:23:56,400
[casey_]: that's why it's interesting to me for
people that they just bound out of where

469
00:23:56,421 --> 00:24:00,627
[casey_]: they're at and go somewhere else and
it's i'm glad you made that connection of

470
00:24:00,668 --> 00:24:05,716
[casey_]: saying hey your operators are basically your
sole resource to start

471
00:24:06,310 --> 00:24:12,440
[david]: yeah so i mean that that was
my strategy and we we ended up acquiring

472
00:24:12,480 --> 00:24:13,502
[david]: that deal it was

473
00:24:13,830 --> 00:24:14,377
[casey_]: hm

474
00:24:13,842 --> 00:24:20,754
[david]: roughly a ten million ten million dollar
acquisition we raid uh you know roughly three

475
00:24:21,315 --> 00:24:27,946
[david]: million dollars for that deal um and
you know i had prept my investor network

476
00:24:28,126 --> 00:24:35,175
[david]: long before that you know i had
spent of months trapping my investor network for

477
00:24:35,356 --> 00:24:36,418
[david]: what we were about to do

478
00:24:36,957 --> 00:24:37,078
[casey_]: yeah

479
00:24:37,520 --> 00:24:42,207
[david]: i had been emailing them i had
been having conversations with them about the strategy

480
00:24:42,288 --> 00:24:47,015
[david]: about the benefits of investing passively so
here's an example i have a client that

481
00:24:47,116 --> 00:24:52,384
[david]: you know many clients that own small
scale multi or even single a small single

482
00:24:52,445 --> 00:24:53,847
[david]: family portfolio they had

483
00:24:53,788 --> 00:24:53,909
[casey_]: true

484
00:24:53,907 --> 00:24:57,513
[david]: built up a tremendous amount of equity
in those properties right and

485
00:24:57,447 --> 00:24:57,589
[casey_]: yep

486
00:24:57,653 --> 00:25:02,442
[david]: one of the top things that i
review with my investor clients and and one

487
00:25:02,482 --> 00:25:10,114
[david]: of the u one of the metrics
that most important to an investor and probably

488
00:25:10,154 --> 00:25:13,319
[david]: the most overlooked is return on equity

489
00:25:14,067 --> 00:25:14,190
[casey_]: yep

490
00:25:14,530 --> 00:25:19,761
[david]: so many of my invested clients get
caught up on their cash on cash return

491
00:25:20,462 --> 00:25:24,800
[david]: and how much equity they have built
up and what their net worth is and

492
00:25:24,840 --> 00:25:29,488
[david]: they lose sight of how much how
hard that equity is working for them

493
00:25:29,547 --> 00:25:29,648
[casey_]: yep

494
00:25:29,908 --> 00:25:33,314
[david]: and so one of the first conversations
i have with my investor clients that already

495
00:25:33,394 --> 00:25:37,802
[david]: have a portfolio small portfolio and especially
if they but in the last ten years

496
00:25:38,242 --> 00:25:41,327
[david]: goodness gracious they've built up a tremendous
amount of equity the question

497
00:25:41,137 --> 00:25:41,260
[casey_]: yep

498
00:25:41,368 --> 00:25:45,454
[david]: that needs to be asked is how
how hard is that equity work working for

499
00:25:45,514 --> 00:25:50,903
[david]: you and what is your return on
equity so if that return on equity once

500
00:25:50,964 --> 00:25:54,790
[david]: we take them through a process of
evaluating the return on equity which i'm happy

501
00:25:54,850 --> 00:25:57,855
[david]: to share a tool with your listeners
i've got a free tool where they can

502
00:25:57,935 --> 00:26:04,346
[david]: get their own in just five minutes
plug in their numbers and identify their return

503
00:26:04,426 --> 00:26:04,847
[david]: on equity

504
00:26:05,228 --> 00:26:05,389
[casey_]: sure

505
00:26:05,568 --> 00:26:10,396
[david]: but we run them through that analysis
and if they're if they're getting a poor

506
00:26:10,456 --> 00:26:13,502
[david]: return on the equity that they have
tied up in that property it's time to

507
00:26:13,542 --> 00:26:15,126
[david]: re position that equity through

508
00:26:15,037 --> 00:26:15,160
[casey_]: yep

509
00:26:15,166 --> 00:26:19,536
[david]: an exchange through a refinance or through
a sale and in some cases the equity

510
00:26:19,576 --> 00:26:22,492
[david]: is performing just fine and it should
stay put in

511
00:26:22,578 --> 00:26:22,759
[casey_]: yeah

512
00:26:22,592 --> 00:26:25,537
[david]: many cases it needs to be re
positioned to get it working harder and so

513
00:26:25,837 --> 00:26:28,322
[david]: that's what we did with a lot
of our clients which sort of prep them

514
00:26:28,502 --> 00:26:34,210
[david]: saying hey you guys might want to
consider exiting through a refining or through a

515
00:26:34,351 --> 00:26:39,855
[david]: sale and getting into these type of
opportunities in a higher cash flow market that

516
00:26:39,895 --> 00:26:43,358
[david]: could provide better returns than what you
recurrently getting with the equity that was tied

517
00:26:43,398 --> 00:26:44,059
[david]: up in your property

518
00:26:44,917 --> 00:26:51,528
[casey_]: sure and that's exactly right when you
start gaining equity in your property put it

519
00:26:51,788 --> 00:26:59,762
[casey_]: to work don't just because honestly the
what he just sitting there is no better

520
00:26:59,862 --> 00:27:01,485
[casey_]: than just having cash in the bank

521
00:27:01,901 --> 00:27:02,002
[david]: ah

522
00:27:02,378 --> 00:27:09,522
[casey_]: and both are susceptible to cost of
inflation right because obviously well now maybe not

523
00:27:09,562 --> 00:27:13,829
[casey_]: necessarily the equity because the equity is
going to increase as inflation increases and the

524
00:27:14,450 --> 00:27:17,175
[casey_]: youryou're continuing to pay down the property
but i guess what i'm getting

525
00:27:17,130 --> 00:27:17,271
[david]: well

526
00:27:17,255 --> 00:27:17,315
[casey_]: at

527
00:27:17,311 --> 00:27:17,451
[david]: what

528
00:27:17,475 --> 00:27:17,676
[casey_]: is

529
00:27:17,511 --> 00:27:22,985
[david]: happens what happens is that over time
as you pay down your debt your return

530
00:27:23,046 --> 00:27:23,948
[david]: on equity goes down

531
00:27:24,477 --> 00:27:24,580
[casey_]: yeah

532
00:27:24,930 --> 00:27:30,760
[david]: so as equity builds up whether it
be natural appreciation or forced appreciation guy as

533
00:27:30,820 --> 00:27:34,686
[david]: that equity builds up and yu pay
down your debt over time your return on

534
00:27:34,766 --> 00:27:38,733
[david]: equity is going to go down that's
why you often see re finance is happening

535
00:27:38,813 --> 00:27:40,215
[david]: in three to five years

536
00:27:40,647 --> 00:27:40,771
[casey_]: yep

537
00:27:40,897 --> 00:27:44,723
[david]: because it's time to re position that
equity get it working harder for you so

538
00:27:44,903 --> 00:27:48,269
[david]: generally speaking that the risk is and
i have a lot of clients that are

539
00:27:48,309 --> 00:27:54,487
[david]: very real verse in many cases i
have clients that carry no debt um they

540
00:27:54,567 --> 00:27:58,413
[david]: just won't do it now i'm not
a proponent of carrying no dat i think

541
00:27:58,493 --> 00:28:01,718
[david]: that's one of the major benefits of
investing in real estate

542
00:28:01,737 --> 00:28:01,859
[casey_]: yeah

543
00:28:02,239 --> 00:28:09,731
[david]: right so what what we do is
we discuss what's a conservative amount of equity

544
00:28:09,832 --> 00:28:14,860
[david]: that you want to keep in the
property and if it's over that conservative amount

545
00:28:15,140 --> 00:28:19,408
[david]: let's get that remaining equity that trapped
equity working for you and so

546
00:28:19,407 --> 00:28:19,552
[casey_]: yep

547
00:28:19,448 --> 00:28:25,157
[david]: that's one strategy re financing getting that
back up to a comfortable level of debt

548
00:28:25,598 --> 00:28:31,067
[david]: where you're still safe where you still
have great debt service coverage but

549
00:28:30,847 --> 00:28:30,988
[casey_]: yep

550
00:28:31,368 --> 00:28:35,046
[david]: you have this other equity you can
go and continue to build your portfolio

551
00:28:35,877 --> 00:28:41,902
[casey_]: yeah and and then and then potentially
even from their diversified diversify asset classes diversify

552
00:28:42,402 --> 00:28:46,026
[casey_]: locations diversify whatever it all makes perfect
sense

553
00:28:46,151 --> 00:28:48,479
[david]: yeah you know what i got to
harp on that too because this is a

554
00:28:48,499 --> 00:28:55,441
[david]: conversation that i have with my clients
yeah i can help one of my local

555
00:28:55,541 --> 00:29:00,870
[david]: clients go buy a let's just use
a fourplex because it's simple and people can

556
00:29:00,910 --> 00:29:01,591
[david]: wrap their heads around

557
00:29:01,697 --> 00:29:01,859
[casey_]: sure

558
00:29:02,853 --> 00:29:07,261
[david]: they can go in my market today
you're going to spend eight hundred thousand to

559
00:29:07,441 --> 00:29:15,638
[david]: one point four on a flourplex so
you're plopping down you know at a minimum

560
00:29:16,339 --> 00:29:19,424
[david]: two hundred thousand dollars to get yourself
into a fourplex

561
00:29:20,127 --> 00:29:20,270
[casey_]: yep

562
00:29:20,746 --> 00:29:26,283
[david]: that's great and for many people that
optimal and it's the right move in everybody's

563
00:29:26,625 --> 00:29:31,536
[david]: case um their desires and what they're
trying to accomplish with their portfolio is going

564
00:29:31,556 --> 00:29:35,422
[david]: to be different some one that wants
to be hands on wants to own something

565
00:29:35,462 --> 00:29:38,347
[david]: right in their back yard maybe that
person a fourplex would be right for them

566
00:29:38,407 --> 00:29:44,003
[david]: in this situation but you take that
two hundred grand and you're buying four doors

567
00:29:44,404 --> 00:29:45,327
[david]: right four tenants

568
00:29:46,109 --> 00:29:46,291
[casey_]: yeah

569
00:29:47,000 --> 00:29:49,324
[david]: four streams of potential income well

570
00:29:49,227 --> 00:29:49,370
[casey_]: yep

571
00:29:49,384 --> 00:29:53,391
[david]: if one of those units go vacant
all of a sudden you know you're only

572
00:29:53,451 --> 00:29:54,673
[david]: seventy five percent occupied

573
00:29:55,287 --> 00:29:55,431
[casey_]: yep

574
00:29:55,334 --> 00:30:00,142
[david]: right whereas if we're buying a hundred
unit two hundred to three hundred unit apartment

575
00:30:00,182 --> 00:30:04,670
[david]: building and we have you now ten
units go vacant that's a different story right

576
00:30:04,730 --> 00:30:07,555
[david]: so you have a little bit of
safety in scale in my opinion but here's

577
00:30:07,615 --> 00:30:12,843
[david]: the bigger impact you can talk that
two hunter grand pop it down on one

578
00:30:12,944 --> 00:30:16,028
[david]: building in one location with only four
tenants

579
00:30:16,797 --> 00:30:16,918
[casey_]: yep

580
00:30:17,080 --> 00:30:22,673
[david]: or you could take that two hundred
grand and spread that out over four different

581
00:30:23,154 --> 00:30:26,281
[david]: investments commercial grade property

582
00:30:25,867 --> 00:30:27,697
[casey_]: oh yeah

583
00:30:27,243 --> 00:30:32,176
[david]: in four different locations with four different
sponsors four different asset types and four different

584
00:30:32,196 --> 00:30:35,477
[david]: business plans extremely diversified

585
00:30:36,107 --> 00:30:36,230
[casey_]: yep

586
00:30:36,840 --> 00:30:42,885
[david]: and that's what we do on this
indication side is we basically partner my goal

587
00:30:43,445 --> 00:30:48,069
[david]: for my investors is to give them
a variety of investment opportunities

588
00:30:48,837 --> 00:30:48,980
[casey_]: yep

589
00:30:49,010 --> 00:30:53,879
[david]: across geographic locations across operators and across
business plans

590
00:30:55,547 --> 00:30:59,293
[casey_]: and that's the one thing that always
seems to get left out of of a

591
00:30:59,333 --> 00:31:04,742
[casey_]: lot of people stop at diversify across
the operators they don't realize that diversifying across

592
00:31:04,762 --> 00:31:12,014
[casey_]: the operators also diversifies business plans because
there's it's like a fingerprint always seems like

593
00:31:12,094 --> 00:31:16,682
[casey_]: no two operators run something exactly the
same no matter how efficient it's running it

594
00:31:16,742 --> 00:31:21,430
[casey_]: seems like somebody always wants to change
some thing a little bit so anyway all

595
00:31:21,470 --> 00:31:26,178
[casey_]: right well listen so david we're kind
of running out of time here but i've

596
00:31:26,218 --> 00:31:29,744
[casey_]: got a few questions i want to
ask you that are just pertaining to you

597
00:31:29,904 --> 00:31:33,971
[casey_]: and what your likes are and the
first of those questions is what is the

598
00:31:34,051 --> 00:31:37,216
[casey_]: best book that you have recently read
or are currently reading

599
00:31:38,782 --> 00:31:41,507
[david]: um who not how i

600
00:31:41,547 --> 00:31:41,690
[casey_]: yep

601
00:31:41,587 --> 00:31:44,071
[david]: believe that's the right title who knows
how

602
00:31:44,911 --> 00:31:45,196
[casey_]: yeah

603
00:31:45,213 --> 00:31:51,362
[david]: m that's a great book about building
business through other p and putting people in

604
00:31:51,442 --> 00:31:54,065
[david]: place that have unique skill sets outside
of yours

605
00:31:54,837 --> 00:31:54,960
[casey_]: yep

606
00:31:55,526 --> 00:31:58,009
[david]: i would also mention the one thing
by garry keller

607
00:31:58,857 --> 00:31:58,981
[casey_]: yep

608
00:31:59,431 --> 00:32:05,461
[david]: it's a great very simple concept but
a very powerful concept about identifying the one

609
00:32:05,621 --> 00:32:10,349
[david]: thing that's ultimately going to have the
greatest impact on the end result and then

610
00:32:10,630 --> 00:32:13,106
[david]: cussing on that one thing and hammering
away on that

611
00:32:13,857 --> 00:32:18,224
[casey_]: yep and man both great books and
i know i can tell from talking with

612
00:32:18,264 --> 00:32:23,052
[casey_]: you is like your your sales experience
and your indication experience how well they go

613
00:32:23,132 --> 00:32:28,942
[casey_]: hand in hand and it's like ach
of those books kind of compliments each of

614
00:32:29,002 --> 00:32:35,432
[casey_]: those skill sets the sales and the
net working part of the indication although at

615
00:32:35,453 --> 00:32:40,279
[casey_]: the same time they chris cross and
they both can compliment one another so

616
00:32:40,320 --> 00:32:40,581
[david]: oh

617
00:32:40,760 --> 00:32:44,744
[casey_]: all right so the next question is
what is a dream vacation that you have

618
00:32:44,764 --> 00:32:46,066
[casey_]: either taken or hoped to take

619
00:32:48,639 --> 00:32:52,994
[david]: m you know i'm a pretty simple
guy um

620
00:32:52,819 --> 00:32:53,023
[casey_]: okay

621
00:32:53,375 --> 00:32:59,806
[david]: you know we're heavy heavy into youth
athletics and so taking vacations isn't really top

622
00:32:59,946 --> 00:33:00,587
[david]: mine for me

623
00:33:01,008 --> 00:33:01,532
[casey_]: understand

624
00:33:01,328 --> 00:33:07,619
[david]: my deal vacation which we take once
per year is going to lake power for

625
00:33:07,659 --> 00:33:09,261
[david]: a week on a nice house

626
00:33:09,169 --> 00:33:10,254
[casey_]: man

627
00:33:09,322 --> 00:33:12,687
[david]: boat with a handful of friends and
family we take all

628
00:33:12,668 --> 00:33:12,829
[casey_]: oh

629
00:33:12,707 --> 00:33:17,373
[david]: of our kids we got back just
a few weeks ago and we had five

630
00:33:17,433 --> 00:33:19,995
[david]: families like forty kids running around

631
00:33:20,367 --> 00:33:20,888
[casey_]: yes

632
00:33:20,916 --> 00:33:21,777
[david]: and just a

633
00:33:21,789 --> 00:33:21,809
[casey_]: i

634
00:33:21,837 --> 00:33:22,197
[david]: blast

635
00:33:22,069 --> 00:33:23,111
[casey_]: love lake pale

636
00:33:22,737 --> 00:33:22,838
[david]: like

637
00:33:23,872 --> 00:33:27,519
[casey_]: lake pale is probably one of the
coolest places i've ever been in my life

638
00:33:28,059 --> 00:33:31,125
[casey_]: and we it was a church trip
and we

639
00:33:31,152 --> 00:33:31,172
[david]: m

640
00:33:31,225 --> 00:33:34,330
[casey_]: went and we took that at a
big house boat right i'm sure that's

641
00:33:34,214 --> 00:33:34,296
[david]: ah

642
00:33:34,370 --> 00:33:35,432
[casey_]: what a lot of people

643
00:33:35,301 --> 00:33:35,322
[david]: h

644
00:33:35,492 --> 00:33:36,133
[casey_]: do that we rented a

645
00:33:36,189 --> 00:33:36,210
[david]: h

646
00:33:36,193 --> 00:33:40,961
[casey_]: house boat and all of us had
to get up top and the guy

647
00:33:40,972 --> 00:33:41,136
[david]: yeah

648
00:33:41,121 --> 00:33:43,726
[casey_]: drove it we went back in a
i don't know it called

649
00:33:43,704 --> 00:33:43,885
[david]: little

650
00:33:43,766 --> 00:33:44,266
[casey_]: a camera

651
00:33:43,985 --> 00:33:44,448
[david]: cover

652
00:33:44,447 --> 00:33:44,527
[casey_]: or

653
00:33:44,629 --> 00:33:44,810
[david]: yeah

654
00:33:44,667 --> 00:33:45,048
[casey_]: something

655
00:33:45,513 --> 00:33:46,719
[david]: yeah

656
00:33:45,609 --> 00:33:48,594
[casey_]: and we all had to get up
top and help guide the boat back

657
00:33:48,663 --> 00:33:48,744
[david]: ah

658
00:33:48,674 --> 00:33:50,176
[casey_]: into this thing we were back there
by ourselves

659
00:33:50,154 --> 00:33:50,296
[david]: yeah

660
00:33:50,397 --> 00:33:54,343
[casey_]: water as clear as you can clear
as far as you can see down oh

661
00:33:54,423 --> 00:33:55,525
[casey_]: man oh

662
00:33:55,391 --> 00:33:55,532
[david]: yeah

663
00:33:55,625 --> 00:33:57,030
[casey_]: man place was

664
00:33:57,668 --> 00:33:57,789
[david]: yeah

665
00:33:58,637 --> 00:33:59,842
[casey_]: so spectacular

666
00:33:59,888 --> 00:34:00,028
[david]: yeah

667
00:33:59,962 --> 00:34:00,043
[casey_]: so

668
00:34:00,109 --> 00:34:00,310
[david]: that's

669
00:34:00,143 --> 00:34:00,404
[casey_]: anyway

670
00:34:00,350 --> 00:34:00,812
[david]: a good trip

671
00:34:01,337 --> 00:34:04,282
[casey_]: awesome an we just keep the things
you and i have in common

672
00:34:04,696 --> 00:34:04,857
[david]: yeah

673
00:34:04,822 --> 00:34:10,572
[casey_]: just more and more the the all
right man so listen i know that there's

674
00:34:10,893 --> 00:34:14,799
[casey_]: some people out there who have heard
what you've said and are interested in possibly

675
00:34:14,859 --> 00:34:19,567
[casey_]: learning more about your vision from the
sale side or possibly your vision from the

676
00:34:19,627 --> 00:34:24,195
[casey_]: investor side or maybe there's an investor
out there looking to to place their two

677
00:34:24,255 --> 00:34:27,601
[casey_]: hundred thousand in capita and and they'd
like to maybe get in touch with you

678
00:34:27,641 --> 00:34:30,165
[casey_]: so what is the best way for
somebody to reach out and get in touch

679
00:34:30,225 --> 00:34:30,446
[casey_]: with you

680
00:34:31,651 --> 00:34:37,020
[david]: i'll give him two ways the first
is you can get a free copy of

681
00:34:37,260 --> 00:34:42,369
[david]: our return on equity report our return
on equity calculator so if you go to

682
00:34:42,649 --> 00:34:50,903
[david]: return on equity report return on equity
report dot com can download a free copy

683
00:34:51,184 --> 00:34:56,192
[david]: of our calculator which will allow you
to just plug in your numbers of any

684
00:34:56,272 --> 00:35:00,098
[david]: property that you currently own and it
will spit out what you're currently or what

685
00:35:00,139 --> 00:35:04,205
[david]: you should back potentially expect as a
return in equity in the next three years

686
00:35:05,147 --> 00:35:05,307
[david]: um

687
00:35:05,167 --> 00:35:05,289
[casey_]: sure

688
00:35:05,427 --> 00:35:09,294
[david]: then that can guide some decisions on
what you do with that equity so that's

689
00:35:09,334 --> 00:35:12,679
[david]: the first one and then the second
way is just go to canovo capital dot

690
00:35:12,780 --> 00:35:19,771
[david]: com that c a n o v
o kanovo capital dot com and just join

691
00:35:19,891 --> 00:35:24,499
[david]: our investor network there our team will
reach out with schedule call i'll jump on

692
00:35:24,539 --> 00:35:27,490
[david]: a call you talk to you about
your goals what we do on the indication

693
00:35:27,550 --> 00:35:29,758
[david]: side of things and would love to
chat with you

694
00:35:31,037 --> 00:35:35,164
[casey_]: awesome and awesome that's great and i
can't thank you enough for taking the time

695
00:35:35,224 --> 00:35:38,449
[casey_]: today to be with us i know
that you all are really busy over there

696
00:35:38,910 --> 00:35:41,775
[casey_]: i know that especially in some of
the market you're in that things are just

697
00:35:42,195 --> 00:35:47,063
[casey_]: booming in it it's hardly it's hard
to find time to like you said you're

698
00:35:47,144 --> 00:35:52,112
[casey_]: new sports my kids or new sports
so i get that completely but anyway thank

699
00:35:52,152 --> 00:35:57,361
[casey_]: you so much for your time david
and also thank you you're you're the free

700
00:35:57,441 --> 00:36:01,748
[casey_]: resource that you've offered the listeners and
listeners please go get that return an equity

701
00:36:01,848 --> 00:36:06,816
[casey_]: is a very very important piece of
this puzzle so and as always please head

702
00:36:06,957 --> 00:36:11,785
[casey_]: down and leave us a five star
review and while you're there please hit the

703
00:36:11,845 --> 00:36:15,571
[casey_]: subscribe button so that you can be
notified when we release episode when we release

704
00:36:15,651 --> 00:36:17,294
[casey_]: content and come

705
00:36:17,190 --> 00:36:17,370
[david]: yeah

706
00:36:17,414 --> 00:36:21,123
[casey_]: back and visit us soon again i
want to thank you david so much for

707
00:36:21,164 --> 00:36:23,752
[casey_]: your time and listeners thank you for
being with us today

708
00:36:23,529 --> 00:36:23,670
[david]: yeah

709
00:36:24,153 --> 00:36:24,735
[casey_]: have a good day