In this episode of Cash Flow Pro, we talk with J Scott, Partner, and co-founder of Bar Down Investments. J was a former tech guy in Silicon Valley, working for one of their most prominent companies - Microsoft. In 2008 J got married, and together...
In this episode of Cash Flow Pro, we talk with J Scott, Partner, and co-founder of Bar Down Investments. J was a former tech guy in Silicon Valley, working for one of their most prominent companies - Microsoft. In 2008 J got married, and together with his wife, they decided to look for more flexibility in their respective careers. Together they decided to go into real estate.
From 2008 to 2018, J and his wife flipped about 400 houses, close to 40 per year! Eventually, with the economic changes on the horizon, they decided to re-assess their investments and began their journey into a different asset class – multi-family and syndications.
In this episode, we discuss:
Make sure to tune in on this episode to find out more KEY ingredients to starting your multi-family journey with the right team – the right way!
Find your flow,
Casey Brown
Resources mentioned in this podcast:
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[casey_]: hey there and welcome to today's episode
of cash flow pro your daily real estate
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[casey_]: investing podcast and youtube channel i'm here
today with j scott bar down vestments j
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[casey_]: how are you today
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[j_scott]: i'm doing great casey thanks for having
me
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[casey_]: absolutely man we're always we're always glad
to have our good friends that live and
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[casey_]: reside in the gloomy cloudy state of
florida with us so that most of us
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[casey_]: can be jealous probably what you're looking
at but i noticed you i think you're
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[casey_]: in sarasota right
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[j_scott]: i am
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[casey_]: and is that where you're originally from
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[j_scott]: no we've been here for about three
years we've lived all over the country but
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[j_scott]: about three years ago we were outside
of d c and my wife got cold
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[j_scott]: and said
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[casey_]: yeah
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[j_scott]: we're moving some place warm and i
said okay and a month later we were
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[j_scott]: here in florida
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[casey_]: man there you go and that's that
if that doesn't like scream hey passive income
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[casey_]: do what you want to do live
the life you want to live i really
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[j_scott]: yeah
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[casey_]: don't know what so j w once
you kind of
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[j_scott]: m
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[casey_]: start out tell us a little bit
about yourself where you came from how you
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[casey_]: got into the business and then we'll
kind of take it from there and let
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[casey_]: the listeners get a glimpse into what
what you all do and how you do
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[casey_]: it
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[j_scott]: absolutely so i am a former tech
guy engineer by education spent most of my
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[j_scott]: career in silicon valley actually spent most
of my crew at microsoft doing the the
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[j_scott]: engineer and engineering and and business stuff
two thousand eight my wife and i decided
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[j_scott]: we wanted to get married and we
wanted a little bit more flexibility we were
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[j_scott]: both working ridiculous number of hours you
said we wanted that that freedom to kind
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[j_scott]: of do what we wanted and raise
a family and so two thousand eight we
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[j_scott]: quit our jobs we moved back to
the east coast fell into to real estate
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[j_scott]: bete two thousand eight and two thousand
eighteen flipped about four hundred and fifty houses
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[j_scott]: wrote a couple of books on the
topic and
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[casey_]: it's like one a week
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[j_scott]: two thousand ighteam we were we were
doing about forty year
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[casey_]: now
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[j_scott]: um and and two thousand eighteen came
around and was a little bit burned out
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[j_scott]: on flipping houses also star and to
feel like the economy was changing a little
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[j_scott]: bit i thought we were heading towards
a recession in two thousand nineteen or two
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[j_scott]: thousand twenty which we did for about
two weeks and so i started thinking about
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[j_scott]: what asset class i'd like to be
in should the economy change and really liked
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[j_scott]: multi family for a whole bunch of
reasons so two thousand eight made the transition
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[j_scott]: two larger multi family started indicating deals
we now own about a thousand units mostly
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[casey_]: have
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[j_scott]: in the south east texas and i'm
a partner of a company called bar down
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[j_scott]: investments
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[casey_]: awesome man uh now bar down investments
is that do you own are your partner
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[casey_]: are you a partner owner are you
just obviously you your partner your owner but
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[casey_]: i mean is there any of you
all is there
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[j_scott]: so there are two of us as
the key principles my partner actually wilson and
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[j_scott]: i were were fifty fifty owners and
then we have a couple other partners who
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[j_scott]: are more boarded director type partners and
they participate the deals but the company is
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[j_scott]: run by by ashley and myself
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[casey_]: awesome man that's great so it seems
like you definitely have the experience and the
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[casey_]: the at least the knowledge and you're
not too far separated from that in being
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[casey_]: it's like five years ago so there's
a lot of beginning
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[j_scott]: yeah
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[casey_]: sindicators out there are people that are
looking to become beginning sindicators that of course
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[casey_]: if you're
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[j_scott]: m
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[casey_]: a key principle or partner or keep
whatever you know there's interchangeable terms there but
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[casey_]: i guess what i'd like to hear
about a little bit is is your actual
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[casey_]: first sindication deal like where you went
out and you found maybe a hundred
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[j_scott]: yeah
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[casey_]: unit department complex and you were like
because it's obvious
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[j_scott]: oh
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[casey_]: that you didn't just start out where
you are today i mean you had to
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[casey_]: learn you had to gather investors you
had to figure all of that stuff out
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[casey_]: so i'd like to hear a little
bit about your first deal where we talk
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[casey_]: about the capital raised how you got
the loan so on so on so on
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[j_scott]: yeah so first i'm a big fan
of not necessarily going it alone and so
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[j_scott]: when i wanted to start in multi
family i realized that despite that fact that
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[j_scott]: i had an engineering background i had
flipped several hundred houses i knew the equity
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[j_scott]: and the debt side of things i
knew there was a whole lot that i
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[j_scott]: didn't know and i knew especially if
i was gonna start raising money from other
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[j_scott]: people and be kind of a fiduciary
for other people that i really wanted to
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[j_scott]: understand the business well so i mentioned
that my partner now is a woman ashley
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[j_scott]: wilson she's somebody i've known since i
guess around two thousand fifteen and she's been
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[j_scott]: doing multi family for a lot longer
than i have when i was ready to
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[j_scott]: get into multi family the first thing
i did was i kind of went through
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[j_scott]: my role of accents and who do
i know that i trust that i could
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[j_scott]: kind of learn from in this business
and so actually was the first name that
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[j_scott]: came to mind i basically went to
her and i said look here's here's a
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[j_scott]: deal propose i'll come work for you
for a year you have access to my
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[j_scott]: knowledge you have access to my skill
you have access to my time you have
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[j_scott]: access to my money and you have
access to my network and i'll give you
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[j_scott]: that for a year and in return
all i ask is you mention me and
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[j_scott]: you teach me the business
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[casey_]: sure
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[j_scott]: and i think we both agreed it
was great a great idea was it was
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[j_scott]: win win for both of us so
she said yes and so basically i spent
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[j_scott]: the next year working for her company
and so
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[casey_]: now
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[j_scott]: did everything
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[casey_]: like physically
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[j_scott]: from
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[casey_]: working or like like i'm talking about
like get up and go to the office
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[casey_]: every day working or virtually where like
what was your geograph because i know that's
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[casey_]: a challenge for a lot of people
right now a thing
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[j_scott]: yeah
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[casey_]: is is like i could pick up
the phone and probably call a hundred people
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[casey_]: and propose the same thing that you
just proposed likely would get some takers
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[j_scott]: ah
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[casey_]: but the fact of the matter
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[j_scott]: yep
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[casey_]: is is how did that our ship
look go ahead with that
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[j_scott]: yeah so at the time i lived
outside of d c she lived in philadelphia
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[j_scott]: and so we were not like co
located um even to this day we have
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[j_scott]: staff we have employees all over the
country and so very few of us live
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[j_scott]: anywhere near each other my closest employe
is about an hour and a half away
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[j_scott]: and hers is probably several hours away
so even at the very beginning it wasn't
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[j_scott]: going into an office and being in
the same spot
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[casey_]: sure
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[j_scott]: every day but she and i were
both very big on systems and processes and
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[j_scott]: basically treating of business like a business
and so from day one everything was very
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[j_scott]: structured we had regular meetings we had
meetings between the partners and then we had
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[j_scott]: meetings between the rest of the team
and m and then we had our staff
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[j_scott]: meetings and then we had our our
equity meetings had our operations meetings and we
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[j_scott]: had our acquisitions meetings and so basically
we were intimately involved the whole team is
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[j_scott]: intimately involved even though we weren't co
located or in an office so even from
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[j_scott]: day one i felt like very much
an integral part of the team and so
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[j_scott]: so i got to learn all aspects
of the business basically i participated in the
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[j_scott]: aqua tiens phase i participated in the
in the fund raising i participated in the
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[j_scott]: debt raising in the in the underwriting
in the due diligence in the in the
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[j_scott]: operations and asset management so i really
did give me an and an opportunity to
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[j_scott]: kind of learn each piece of the
business and what i've learned about multi family
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[j_scott]: over the years is that it really
is a team sport unlike single family were
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[j_scott]: i can i don't i didn't do
everything myself
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[casey_]: sure
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[j_scott]: but in theory i
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[casey_]: yes
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[j_scott]: could have i could have found the
deals and i could have hired the contractors
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[j_scott]: and managed the contractors and dealt with
the staging and dealt with the listing and
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[j_scott]: selling all that stuff in multi family
you can't do that
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[casey_]: yep
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[j_scott]: there's too much to do there are
too many areas that are too important and
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[j_scott]: too big doing acquisitions is a full
time job
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[casey_]: yep
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[j_scott]: doing fund raising full time job doing
asset management is more than a full time
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[j_scott]: job and so so really in multi
family you have to have a really good
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[j_scott]: team around you and you have to
be really knowledgeable about what you're od at
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[j_scott]: and what you're not good
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[casey_]: yep
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[j_scott]: at and you have to be honest
with yourself about what you're good at and
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[j_scott]: not good at and so that first
year was actually a really good opportunity for
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[j_scott]: me to figure out one what am
i good at what am i not good
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[j_scott]: at what do i enjoy doing i
not enjoyed doing so that i could figure
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[j_scott]: out how if i was goin t
become part of ashley's team how i could
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[j_scott]: best insert myself into her team
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[casey_]: yeah
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[j_scott]: or if i were going to start
my own company how i could best kind
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[j_scott]: of carve out a role in my
own company and then bringing other people to
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[j_scott]: supplement me
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[casey_]: yep
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[j_scott]: and so what i realized was and
one of the reasons why ashley and i
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[j_scott]: are now full time partners what i
realized was we had a lot of very
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[j_scott]: complimentary skills she was really good on
the acquisition side she was really good on
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[j_scott]: the asset management side he as really
good at everything that was day to day
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[j_scott]: property related i on the other hand
i was really good at the accounting i
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[j_scott]: was really good at the h r
i was really good at the underwriting and
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[j_scott]: the math and the processes and the
systems and it was really good because i
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[j_scott]: had a large network and following i
was really d at the fund raising and
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[j_scott]: equity side of things so once we
realized that we had these complimentary set of
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[j_scott]: skills the next natural step was hey
maybe there's an opportunity for us to work
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[j_scott]: together so we kind of looked at
what parts of the business would i be
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[j_scott]: good at running what parts of the
business would should be good at running and
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[j_scott]: when we realize that was that between
the two of us we basically covered the
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[j_scott]: entire spectrum of the business and that's
what i kind of took to the next
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[j_scott]: level as partners now the first deal
i'm sorry i kind of got off topic
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[casey_]: oh
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[j_scott]: there
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[casey_]: yeah
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[j_scott]: but you asked about the first deal
the first deal was about
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[casey_]: all of that
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[j_scott]: nine
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[casey_]: to
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[j_scott]: months
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[casey_]: me has
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[j_scott]: after
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[casey_]: to do with how the first deal
plugs in anyway i mean the back story
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[j_scott]: yep
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[casey_]: and then because i would want to
point out too for the listeners
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[j_scott]: yeah
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[casey_]: especially when you start talking about the
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[j_scott]: ah
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[casey_]: between single family and multi family a
lot of people you know where you could
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[casey_]: do a hundred single families a year
multi families you might do two or three
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[casey_]: because you're right there's
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[j_scott]: yep
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[casey_]: a lot of there's a lot pockets
and a lot of corners that need to
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[casey_]: be scraped out so that you can
see what you're what you're doing there rather
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[casey_]: than in single family basically you're like
an inspection a pest inspection and financing away
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[j_scott]: yep
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[casey_]: from closing multi family your sewer pipes
and electrical nd roofs
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[j_scott]: yeah
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[casey_]: and h so yeah um um but
anyway go ahead yeah first deal
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[j_scott]: so for the first deal it was
a few months into kind of working with
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[j_scott]: with ashley and her team and being
mentored and we found a deal in houston
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[j_scott]: texas
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[casey_]: yeah
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[j_scott]: and at the time it wasn't really
clear to me like what i was good
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[j_scott]: at and what i should be doing
so i kind of participated in each piece
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[j_scott]: of of the deal so on the
acquisition side i was i was kind of
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[j_scott]: involved in kind of deciding on the
areas and
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[casey_]: yeah
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[j_scott]: in our by box for that area
i helped out with the underwriting i helped
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[j_scott]: out with the due diligence once we
go under contract i helped out with with
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[j_scott]: the debt piece and working with our
mortgage broker and figuring out the right debt
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[j_scott]: product for us i raised some money
so i helped out with the equity side
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[j_scott]: of things um on that deal i
don't remember if i acted as a key
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[j_scott]: principle or k p or not but
we certainly talked about that and so i
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[j_scott]: really had the opportunity to kind of
get my my my fingers each piece of
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[j_scott]: the business and it was like as
soon as we closed on that deal it
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[j_scott]: was pretty obvious to me what i
liked doing what i was good at doing
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[j_scott]: and what just wasn't in my wheelhouse
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[casey_]: sure
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[j_scott]: and so for the next deal we
bay ikey decided okay i'm goin t help
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[j_scott]: manage the underwriting side of things i'm
going to help i'm going to do all
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[j_scott]: of the fund raising and manage the
investor relations that i would manage the the
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[j_scott]: capital staff the equity and the debt
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[casey_]: yes
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[j_scott]: and leave kind of everything else to
the rest of the team and so really
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[j_scott]: that first experience where i kind of
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[casey_]: oh
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[j_scott]: did a little bit of everything it
really helped me figure out what i wanted
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[j_scott]: to be doing what i was good
at doing on future deals and after that
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[j_scott]: deal i really i plugged myself in
on on one piece of the business or
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[j_scott]: a couple o pieces the business and
then for the last four years i've just
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[j_scott]: been focused on those pieces of the
business
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[casey_]: awesome now so i want to go
back and talk a little bit about the
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[casey_]: team building part of of that so
so first off i guess the biggest problem
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[casey_]: i think a lot of people have
with the team building part is is they're
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[casey_]: not really aware or
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[j_scott]: yeah
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[casey_]: or knowledgeable about what pieces they're going
to act we need help with right like
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[casey_]: defining hey these are the things like
you said these are the things that i'm
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[casey_]: good at
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[j_scott]: m
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[casey_]: now what
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[j_scott]: yeah
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[casey_]: do i need to hire out and
what can what things can one person do
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[casey_]: all of or what things does it
take one person to do just that does
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[casey_]: that make sense
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[j_scott]: absolutely
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[casey_]: so i'd like to know a little
bit or like to hear a little bit
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[casey_]: about how you transition or how you
kind of started bringing that team on and
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[casey_]: how you define what you needed to
help specie call with and then where you
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[casey_]: found them
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[j_scott]: i'm gonna answer that second question first
where
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[casey_]: yeah
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[j_scott]: i found him because this is i
think a big sticking point for a lot
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[j_scott]: of new real estate investors and certainly
a lot of new investors who are doing
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[j_scott]: big stuff that need a team around
them a lot of us get into the
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[j_scott]: business and we assume one of two
things we either need to do it all
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[j_scott]: ourselves which
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[casey_]: hm
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00:14:13,999 --> 00:14:18,746
[j_scott]: again can't do that in large multi
family or two you need to hire a
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00:14:18,787 --> 00:14:22,493
[j_scott]: bunch of staff for a lot of
us that's just daunting
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[casey_]: yep
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[j_scott]: i mean in the corporate world i
managed literally hundreds of people but the interviewing
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[j_scott]: and hiring in boarding was always really
different to do it even though i had
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[j_scott]: a large company and hundreds of people
around me to help the idea of having
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00:14:37,938 --> 00:14:42,446
[j_scott]: to hire ten or twenty or thirty
people not only from a financial standpoint did
265
00:14:42,506 --> 00:14:46,633
[j_scott]: it seem crazy but just from a
jistic standpoint doing that seem crazy and a
266
00:14:46,673 --> 00:14:51,161
[j_scott]: lot of people assume that those are
basically the two options either do everything yourself
267
00:14:51,241 --> 00:14:55,368
[j_scott]: or you hire a whole bunch of
people and so what we realized was or
268
00:14:55,408 --> 00:14:59,234
[j_scott]: what i realized was that there are
actually other ways of doing things so certainly
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[j_scott]: there are pieces you can do yourself
and there are pieces where you're goin to
270
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[j_scott]: want to hire full time but then
there are other ways to do things one
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00:15:06,005 --> 00:15:09,852
[j_scott]: you can hire part time employes so
literally you hire somebody to come in and
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[j_scott]: work for a few hours a week
so early on i knew i needed a
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[j_scott]: personal assistant or an executive assistant didn't
really know what i wanted them to do
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[j_scott]: but i was doing a lot of
busy work so bringing in a part executive
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[j_scott]: assistant made sense for me
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[casey_]: so
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[j_scott]: and it was easy to hire a
part time person because i didn't have anybody
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[j_scott]: quitting their job for me i didn't
have to find full time
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[casey_]: sure
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[j_scott]: work for them if they worked five
hours a week great so part time was
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00:15:31,127 --> 00:15:34,112
[j_scott]: one way to do it another way
to do his partners so there are plenty
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[j_scott]: of people out there who do things
that they're really good at but they don't
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[j_scott]: have their own company or they don't
want to be doing it for themselves or
284
00:15:42,606 --> 00:15:45,251
[j_scott]: they only don't want to be doing
it for one person so they can come
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[j_scott]: in and they can help so for
example we have a mortgage broker that we've
286
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[j_scott]: worked with a number of deals and
he is not only a mortgage broker who
287
00:15:52,342 --> 00:15:56,089
[j_scott]: knows the equity side of things he
does deals himself so he's a great consultant
288
00:15:56,610 --> 00:16:00,276
[j_scott]: we deal that that he comes in
we give him g p equity we give
289
00:16:00,316 --> 00:16:05,745
[j_scott]: him equity in the partnership because he's
just a great consultant and he's also really
290
00:16:05,785 --> 00:16:09,912
[j_scott]: good on the debt side so he
reads all of our loan ox he takes
291
00:16:09,992 --> 00:16:13,618
[j_scott]: care of finding the right loan products
for us and working through all the debt
292
00:16:13,698 --> 00:16:18,346
[j_scott]: stuff so we don't pay him a
salary we don't have to on board him
293
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[j_scott]: we don't have to deal with pay
and all that stuff
294
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[casey_]: and
295
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[j_scott]: but
296
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[casey_]: he's
297
00:16:21,878 --> 00:16:21,939
[j_scott]: we
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[casey_]: got
299
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[j_scott]: still
300
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[casey_]: a stake
301
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[j_scott]: have the best
302
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[casey_]: and he's got a stake
303
00:16:24,030 --> 00:16:24,050
[j_scott]: a
304
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[casey_]: so
305
00:16:24,271 --> 00:16:24,674
[j_scott]: devastik
306
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[casey_]: it's all beneficial for everybody
307
00:16:27,630 --> 00:16:32,538
[j_scott]: exactly so so partners is another way
to go another way to go is commission
308
00:16:32,999 --> 00:16:36,945
[j_scott]: so we wanted to scale into new
markets and so we need to do that
309
00:16:37,045 --> 00:16:41,373
[j_scott]: we needed acquisition people because the acquisition
s part a large multi family can be
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[j_scott]: a really time consuming piece i mean
reaching out to brokers and making phone calls
311
00:16:45,860 --> 00:16:50,167
[j_scott]: and having lunch and sending emails i
mean literally it can be a full time
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00:16:50,268 --> 00:16:54,274
[j_scott]: job for several just before you start
getting deal flow and so because we didn't
313
00:16:54,294 --> 00:16:59,082
[j_scott]: want to hire people five different people
for five different markets we didn't want to
314
00:16:59,122 --> 00:17:02,969
[j_scott]: spend the pay roll take all the
time hiring somebody we found people in those
315
00:17:03,009 --> 00:17:06,835
[j_scott]: markets we're already finding deals and we
said look bring us a deal and in
316
00:17:06,915 --> 00:17:10,201
[j_scott]: return we'll give you a hundred thousand
dollars if you bring us a good deal
317
00:17:10,401 --> 00:17:13,626
[j_scott]: or we'll give you g p equity
for bringing us a good deal basically work
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00:17:13,707 --> 00:17:14,167
[j_scott]: on commission
319
00:17:14,278 --> 00:17:14,421
[casey_]: yeah
320
00:17:14,869 --> 00:17:19,556
[j_scott]: and so between the doing everything yourself
and hiring full time people there's part time
321
00:17:19,596 --> 00:17:23,323
[j_scott]: there's commission people there's partners and there's
lots of other ways that you can bring
322
00:17:23,363 --> 00:17:27,009
[j_scott]: in a team where you're not spending
a ton of time on boarding you're not
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00:17:27,049 --> 00:17:32,498
[j_scott]: spending that sarily a ton of time
doing pay roll and you're not necessarily using
324
00:17:32,598 --> 00:17:38,989
[j_scott]: all of your resources manage those people
and so basically to this day our team
325
00:17:39,109 --> 00:17:42,034
[j_scott]: consist of we do have a bunch
of employes we have seven or eight employes
326
00:17:42,935 --> 00:17:45,860
[j_scott]: but in addition we have a number
of partners that we work with on deals
327
00:17:45,940 --> 00:17:48,905
[j_scott]: we have a number of park time
people and then we have a number of
328
00:17:49,005 --> 00:17:53,273
[j_scott]: commission base people that that especially on
the quisition side of things that do that
329
00:17:53,353 --> 00:17:57,740
[j_scott]: for us and so that's how we
kind of structure our team in a way
330
00:17:57,880 --> 00:18:01,707
[j_scott]: that each piece of the puzzle we
have the right person in the job without
331
00:18:01,767 --> 00:18:05,552
[j_scott]: again having to do it all ourselves
are high so now going back to your
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00:18:05,612 --> 00:18:10,139
[j_scott]: first question which was what are those
pieces of the puzzle the big pieces for
333
00:18:10,279 --> 00:18:14,607
[j_scott]: us number one is acquisitions so you
have to get that deal flow we like
334
00:18:14,647 --> 00:18:18,694
[j_scott]: to have a dedicated person r market
that we're in because what we found is
335
00:18:19,635 --> 00:18:25,845
[j_scott]: for single family for small multi family
there's not much of an allegiance for brokers
336
00:18:26,006 --> 00:18:30,513
[j_scott]: to buyers so if i'm going to
buy a single family house a real estate
337
00:18:30,593 --> 00:18:34,440
[j_scott]: agent or a broker they don't care
if i've ever bought from them before if
338
00:18:34,480 --> 00:18:38,587
[j_scott]: i've ever bought before because they don't
lose much if the deal falls through
339
00:18:38,550 --> 00:18:38,755
[casey_]: trot
340
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[j_scott]: but in multi family the most important
piece to any broker who is selling a
341
00:18:45,759 --> 00:18:47,942
[j_scott]: deal is getting it to close
342
00:18:48,028 --> 00:18:48,149
[casey_]: yep
343
00:18:48,463 --> 00:18:51,648
[j_scott]: because if i'm if i'm a seller
and i hire a broker to sell my
344
00:18:51,789 --> 00:18:57,538
[j_scott]: fifty million dollar property um and they
find me as a buyer let's say and
345
00:18:57,638 --> 00:19:00,964
[j_scott]: i come in and i say yeah
i can buy this fifty million dollar property
346
00:19:01,084 --> 00:19:03,989
[j_scott]: well as soon as we go under
contract i'm gonna have to walk the property
347
00:19:04,009 --> 00:19:07,715
[j_scott]: which means i'm gonna have to see
every unit in that property which means every
348
00:19:07,795 --> 00:19:11,021
[j_scott]: tenant is gonna have to be out
of the heir unit for hour two or
349
00:19:11,081 --> 00:19:13,725
[j_scott]: three number two i'm goin t want
to do a lease on it so i'm
350
00:19:13,745 --> 00:19:18,193
[j_scott]: gonna be sitting in the leasing office
probably for week with with my folks going
351
00:19:18,213 --> 00:19:23,982
[j_scott]: through literally every lease asking questions about
every tenant and so it's a lot of
352
00:19:24,062 --> 00:19:28,009
[j_scott]: hustle for a seller to sell a
property if that deal then falls through in
353
00:19:28,049 --> 00:19:29,952
[j_scott]: the cell has to start that process
over
354
00:19:29,938 --> 00:19:30,060
[casey_]: yeah
355
00:19:30,273 --> 00:19:33,478
[j_scott]: well most likely i'm going to fire
that broker for bringing a buyer that couldn't
356
00:19:33,578 --> 00:19:33,919
[j_scott]: close
357
00:19:33,829 --> 00:19:33,970
[casey_]: yeah
358
00:19:34,680 --> 00:19:39,889
[j_scott]: so brokers are very protective about insuring
that a deal is going to close and
359
00:19:39,969 --> 00:19:43,375
[j_scott]: the best way they do that is
they like to work with buyers who they've
360
00:19:43,415 --> 00:19:44,136
[j_scott]: worked with before
361
00:19:43,948 --> 00:19:44,337
[casey_]: correct
362
00:19:44,436 --> 00:19:48,884
[j_scott]: who've proven that they can close and
so any time you're doing acquisitions in a
363
00:19:48,944 --> 00:19:54,213
[j_scott]: new market you can spend months or
years building relationships with these brokers to prove
364
00:19:54,273 --> 00:19:57,859
[j_scott]: to them that you're serious that you
can really close the deal and if you
365
00:19:57,899 --> 00:20:01,385
[j_scott]: can't build that relationship if you don't
take the time to build that relationship you're
366
00:20:01,425 --> 00:20:03,047
[j_scott]: never going to get any deal flow
in that market
367
00:20:03,128 --> 00:20:03,532
[casey_]: that's true
368
00:20:03,608 --> 00:20:08,017
[j_scott]: so so having dedicated people on the
acquisition side to every market is really important
369
00:20:08,209 --> 00:20:08,352
[casey_]: yeah
370
00:20:08,719 --> 00:20:12,286
[j_scott]: number two once you get that deal
you need a team of people who can
371
00:20:12,366 --> 00:20:16,955
[j_scott]: then vet the deal and that involves
doing due diligence going to the property walking
372
00:20:17,115 --> 00:20:23,065
[j_scott]: the deal finding contractors that can put
together a scope of work finding property management
373
00:20:23,125 --> 00:20:28,354
[j_scott]: company that can do least audits basically
going through the underwriting to make sure that
374
00:20:28,414 --> 00:20:30,578
[j_scott]: you've you've crossed your teas and dotted
your eyes
375
00:20:30,458 --> 00:20:30,579
[casey_]: yep
376
00:20:30,898 --> 00:20:35,105
[j_scott]: basically you're underwriting in your due diligence
team part of that is going to be
377
00:20:35,826 --> 00:20:39,973
[j_scott]: being able to work with your contracts
attorney part of it's gonna be going to
378
00:20:40,013 --> 00:20:45,242
[j_scott]: be working with a security attorney attorney
too basically structure the deal if you're doing
379
00:20:45,282 --> 00:20:49,028
[j_scott]: a indication and you're raising equity and
so that could be one big team or
380
00:20:49,048 --> 00:20:52,955
[j_scott]: that can be multiple so we have
an underrating team and an analyst team and
381
00:20:53,035 --> 00:20:56,701
[j_scott]: a de diligence team when we started
out it was kind of one group of
382
00:20:56,741 --> 00:21:00,127
[j_scott]: people doing everything but now we've kind
of broken down the task because we have
383
00:21:00,167 --> 00:21:03,953
[j_scott]: more deal flow and we're doing bigger
dea then you have the whole fund raising
384
00:21:04,234 --> 00:21:04,474
[j_scott]: side of
385
00:21:04,478 --> 00:21:04,658
[casey_]: yeah
386
00:21:04,514 --> 00:21:04,775
[j_scott]: things
387
00:21:05,299 --> 00:21:05,500
[casey_]: that's
388
00:21:05,376 --> 00:21:05,476
[j_scott]: so
389
00:21:05,600 --> 00:21:06,762
[casey_]: the that's the
390
00:21:07,078 --> 00:21:07,219
[j_scott]: yeah
391
00:21:07,303 --> 00:21:11,349
[casey_]: go ahead on into that because that's
there's more questions
392
00:21:11,082 --> 00:21:11,185
[j_scott]: ah
393
00:21:11,429 --> 00:21:15,095
[casey_]: on that side i guess than there
is anything now everything you've provided so far
394
00:21:15,256 --> 00:21:16,798
[casey_]: is spot on
395
00:21:16,650 --> 00:21:16,853
[j_scott]: oh
396
00:21:17,680 --> 00:21:18,261
[casey_]: and you can tell
397
00:21:18,183 --> 00:21:18,326
[j_scott]: yep
398
00:21:18,341 --> 00:21:22,027
[casey_]: that it's coming from experience so i
can only assume that the fund raising side
399
00:21:22,087 --> 00:21:25,733
[casey_]: is probably going to be equally as
interesting as what you've gone through this far
400
00:21:25,833 --> 00:21:28,097
[casey_]: so definitely yes just move right on
into the
401
00:21:28,070 --> 00:21:28,130
[j_scott]: ye
402
00:21:28,137 --> 00:21:28,883
[casey_]: fund sing side
403
00:21:29,960 --> 00:21:32,524
[j_scott]: yeah and let me start with it's
not just fun raising i like to think
404
00:21:32,564 --> 00:21:34,187
[j_scott]: of it as the capital stacks it's
both
405
00:21:34,069 --> 00:21:34,210
[casey_]: yeah
406
00:21:34,267 --> 00:21:37,913
[j_scott]: the debt and the equity and too
many people think about like the fun raising
407
00:21:37,993 --> 00:21:40,758
[j_scott]: side and raising money but they're not
thinking about the debt side and wat they
408
00:21:40,778 --> 00:21:44,983
[j_scott]: don't realize is if seventy percent or
ceventy five per cent of of the money
409
00:21:45,003 --> 00:21:48,206
[j_scott]: that you're bringing in is debt as
a loan from a bank or a loan
410
00:21:48,346 --> 00:21:55,836
[j_scott]: from from a government agency that every
quarter point in interest or every every hundred
411
00:21:55,896 --> 00:21:59,682
[j_scott]: thousand dollars are spending on a rate
cap can have a significant impact on the
412
00:21:59,722 --> 00:22:03,128
[j_scott]: deal and so too many people don't
think about the debt side of things they'll
413
00:22:03,168 --> 00:22:06,293
[j_scott]: stick some some numbers into their underwriting
that i think i can get at seventy
414
00:22:06,354 --> 00:22:06,834
[j_scott]: five per cent
415
00:22:06,891 --> 00:22:07,054
[casey_]: yeah
416
00:22:06,935 --> 00:22:10,040
[j_scott]: l t v and i think this
interest rate and then they go and they
417
00:22:10,100 --> 00:22:14,627
[j_scott]: actually spend weeks talking to lenders and
figuring what their debt products are and they
418
00:22:14,687 --> 00:22:18,672
[j_scott]: realize they were off by a quarter
here fifty thousand dollars there and the projects
419
00:22:18,752 --> 00:22:19,053
[j_scott]: blown
420
00:22:19,138 --> 00:22:19,280
[casey_]: yep
421
00:22:19,553 --> 00:22:23,878
[j_scott]: so number one when we talk about
raising money we have to think about the
422
00:22:23,978 --> 00:22:25,199
[j_scott]: debt as well as the equity
423
00:22:25,409 --> 00:22:29,691
[casey_]: i always say that the banks or
even the government agencies
424
00:22:29,430 --> 00:22:30,090
[j_scott]: yeah
425
00:22:29,771 --> 00:22:33,837
[casey_]: or whoever the gatekeeper is of those
they're the biggest investor in your deal right
426
00:22:34,618 --> 00:22:34,838
[casey_]: i mean
427
00:22:35,031 --> 00:22:35,655
[j_scott]: absolutely
428
00:22:35,499 --> 00:22:37,022
[casey_]: it's again like
429
00:22:36,930 --> 00:22:36,950
[j_scott]: m
430
00:22:37,102 --> 00:22:37,883
[casey_]: you said everybody
431
00:22:37,540 --> 00:22:38,070
[j_scott]: hm
432
00:22:37,983 --> 00:22:39,166
[casey_]: focuses on the private
433
00:22:39,164 --> 00:22:39,348
[j_scott]: yes
434
00:22:39,226 --> 00:22:43,593
[casey_]: equity part and bringing the equity to
the table but then it's
435
00:22:43,590 --> 00:22:43,610
[j_scott]: m
436
00:22:43,633 --> 00:22:46,338
[casey_]: like it's like all of a sudden
everybody
437
00:22:46,260 --> 00:22:46,682
[j_scott]: uh
438
00:22:46,378 --> 00:22:48,082
[casey_]: is like well well you just go
get the debt
439
00:22:48,069 --> 00:22:48,090
[j_scott]: h
440
00:22:48,203 --> 00:22:49,405
[casey_]: when now that that guy's got
441
00:22:49,430 --> 00:22:49,552
[j_scott]: yeah
442
00:22:49,465 --> 00:22:50,869
[casey_]: to be sold or that lady's got
to
443
00:22:50,895 --> 00:22:50,998
[j_scott]: so
444
00:22:50,909 --> 00:22:53,655
[casey_]: be sold more than just about anybody
so go ahead
445
00:22:54,820 --> 00:22:58,786
[j_scott]: yeah we literally have somebody on the
team and again he's a partner of ours
446
00:22:58,907 --> 00:23:03,053
[j_scott]: that his sole job is to know
whenever we're doing a deal what the current
447
00:23:03,154 --> 00:23:07,882
[j_scott]: debt terms look like and then going
out and finding that right lender for us
448
00:23:07,999 --> 00:23:08,241
[casey_]: okay
449
00:23:08,603 --> 00:23:11,247
[j_scott]: so that's really important but then we
get into the fund raising side of piece
450
00:23:11,608 --> 00:23:16,316
[j_scott]: the fund raising side of things and
a lot of people think that like okay
451
00:23:16,396 --> 00:23:19,361
[j_scott]: now that we have the deal we
can start raising money and what they realize
452
00:23:19,441 --> 00:23:23,427
[j_scott]: is especially if you're raising i mean
the deals we're doing we're raising anywhere from
453
00:23:23,708 --> 00:23:28,556
[j_scott]: ten to thirty million dollars this isn't
something we can like say okay let's start
454
00:23:28,656 --> 00:23:30,660
[j_scott]: today and we'll have thirty million dollars
tomorrow
455
00:23:30,508 --> 00:23:30,651
[casey_]: yeah
456
00:23:31,261 --> 00:23:35,053
[j_scott]: um if we're going to raise ten
or twenty million dollars we probably needed to
457
00:23:35,154 --> 00:23:36,418
[j_scott]: start a year ago
458
00:23:36,518 --> 00:23:36,641
[casey_]: yeah
459
00:23:37,330 --> 00:23:41,797
[j_scott]: two years ago five years ago so
the best fund raisers the teams that that
460
00:23:41,858 --> 00:23:43,861
[j_scott]: do best at raising money are the
ones
461
00:23:43,868 --> 00:23:44,131
[casey_]: oh
462
00:23:43,921 --> 00:23:47,847
[j_scott]: that have spent the last several years
building a brand and building name recognition and
463
00:23:47,948 --> 00:23:52,615
[j_scott]: building trust and gettin their name out
there and and really building a network of
464
00:23:52,716 --> 00:23:55,981
[j_scott]: potential investors that once you have a
deal you can go to them and say
465
00:23:56,101 --> 00:24:00,849
[j_scott]: okay all this time we've been building
a relationship between us now i actually have
466
00:24:00,889 --> 00:24:03,974
[j_scott]: a d for you to look at
and let me tell you something you think
467
00:24:04,295 --> 00:24:08,502
[j_scott]: you might have twenty million dollars out
there but the reality is if whatever you
468
00:24:08,662 --> 00:24:12,028
[j_scott]: think you can raise on that very
first deal you're probably going to raise ten
469
00:24:12,068 --> 00:24:17,036
[j_scott]: percent of it if you're lucky maybe
twenty percent of it after you've like done
470
00:24:17,116 --> 00:24:20,161
[j_scott]: things for a long time and you've
built up a great reputation and you have
471
00:24:20,201 --> 00:24:23,787
[j_scott]: a brand and you have investors you
still might only be at fifty or seventy
472
00:24:23,847 --> 00:24:27,714
[j_scott]: five per cent always those investors that
will tell you that they're going to invest
473
00:24:27,774 --> 00:24:30,699
[j_scott]: maybe they ven think they're going to
invest but for one reason or another they're
474
00:24:30,779 --> 00:24:30,959
[j_scott]: not
475
00:24:32,021 --> 00:24:32,122
[casey_]: ah
476
00:24:32,342 --> 00:24:36,188
[j_scott]: so i like to tell people no
matter how optimistic you are about raising money
477
00:24:36,589 --> 00:24:39,272
[j_scott]: you've probabl started too late and you're
probably too optimistic
478
00:24:39,158 --> 00:24:39,300
[casey_]: yep
479
00:24:39,693 --> 00:24:43,818
[j_scott]: so so for anybody out there that's
looking to get into indication and looking to
480
00:24:43,878 --> 00:24:47,264
[j_scott]: raise money even if you think you're
a year or two from doing a deal
481
00:24:47,825 --> 00:24:55,833
[j_scott]: focus on the building your brand building
trust building relationships umnandbasically getting those investors ready
482
00:24:55,933 --> 00:24:57,618
[j_scott]: to invest today
483
00:24:57,488 --> 00:24:57,690
[casey_]: yes
484
00:24:58,159 --> 00:24:59,101
[j_scott]: because that process
485
00:24:59,009 --> 00:24:59,090
[casey_]: it
486
00:24:59,182 --> 00:25:00,665
[j_scott]: can take months or even years
487
00:25:00,528 --> 00:25:02,351
[casey_]: well and let's talk about that real
488
00:25:02,310 --> 00:25:03,068
[j_scott]: ye
489
00:25:02,491 --> 00:25:08,954
[casey_]: quick about the fact because i think
there is some
490
00:25:09,405 --> 00:25:09,508
[j_scott]: ah
491
00:25:11,248 --> 00:25:18,348
[casey_]: i don't know what the best way
to say like there's some misconceptions about i
492
00:25:18,408 --> 00:25:19,069
[casey_]: know when i first
493
00:25:18,921 --> 00:25:19,042
[j_scott]: ah
494
00:25:19,129 --> 00:25:24,297
[casey_]: started several years or well few years
ago and you're like okay do you go
495
00:25:24,378 --> 00:25:28,464
[casey_]: through a soft commitment because there's it's
like either you get soft commitments or you
496
00:25:28,545 --> 00:25:32,611
[casey_]: get hard commitments but as soon as
you get the what i'm saying hard commitment
497
00:25:32,651 --> 00:25:36,338
[casey_]: i mean some sign the documents send
the money money is there ready to go
498
00:25:36,939 --> 00:25:41,286
[casey_]: the problem is as obviously you're paying
a press which is typically higher than your
499
00:25:41,326 --> 00:25:48,070
[casey_]: banker at on money as soon as
it lands versus the soft commitment where they're
500
00:25:48,110 --> 00:25:48,696
[casey_]: saying hey yeah
501
00:25:48,810 --> 00:25:49,033
[j_scott]: yeah
502
00:25:48,857 --> 00:25:51,170
[casey_]: i'll commit amount of dollars to it
503
00:25:51,429 --> 00:25:51,450
[j_scott]: m
504
00:25:51,951 --> 00:25:52,452
[casey_]: and then
505
00:25:52,560 --> 00:25:53,490
[j_scott]: oh
506
00:25:53,014 --> 00:26:01,378
[casey_]: there's also the in between there where
how do you keep a soft commitment moving
507
00:26:01,478 --> 00:26:01,859
[casey_]: forward
508
00:26:01,892 --> 00:26:02,074
[j_scott]: yeah
509
00:26:01,919 --> 00:26:05,505
[casey_]: because obviously a soft commitment you call
and you're like hey man i need to
510
00:26:05,545 --> 00:26:08,330
[casey_]: borrow ten books to go buy this
thing and i say
511
00:26:08,280 --> 00:26:08,485
[j_scott]: yeah
512
00:26:08,370 --> 00:26:11,315
[casey_]: all right cool j here you go
i mean no problem an just all just
513
00:26:11,495 --> 00:26:14,320
[casey_]: just let me know when you're ready
and i'll i'll send you the ten bucks
514
00:26:14,440 --> 00:26:18,266
[casey_]: right and then you call me like
two weeks our like hey man i'm ready
515
00:26:18,306 --> 00:26:21,732
[casey_]: for that tin box i'm like damn
jay shoot dude i just went and bought
516
00:26:21,792 --> 00:26:23,535
[casey_]: my kid in new yo yo i
don't have
517
00:26:23,339 --> 00:26:24,172
[j_scott]: hm yep
518
00:26:24,156 --> 00:26:26,682
[casey_]: i don't have that any it's the
same scenario
519
00:26:26,552 --> 00:26:26,654
[j_scott]: ah
520
00:26:26,762 --> 00:26:30,812
[casey_]: of site on a bigger scale but
the question is is
521
00:26:31,050 --> 00:26:32,850
[j_scott]: yeah yeah
522
00:26:33,098 --> 00:26:37,685
[casey_]: i think that that's where a lot
of confusion comes into the game because people
523
00:26:37,745 --> 00:26:40,109
[casey_]: are like well hey i don't i
don't want to just get a soft clam
524
00:26:40,149 --> 00:26:43,976
[casey_]: and i want to take the money
but then so at what point and how
525
00:26:45,319 --> 00:26:45,440
[casey_]: do
526
00:26:45,420 --> 00:26:46,140
[j_scott]: yeah
527
00:26:45,681 --> 00:26:52,821
[casey_]: you keep that river flowing up until
they're like up until they actually hit
528
00:26:52,950 --> 00:26:53,238
[j_scott]: oh
529
00:26:52,982 --> 00:26:56,408
[casey_]: send on that wire yeah
530
00:26:56,461 --> 00:27:02,851
[j_scott]: so and my partner actually and i
we we vehemently disagree on how to do
531
00:27:02,931 --> 00:27:07,179
[j_scott]: this so it just goes to show
that people that are experienced are gonna
532
00:27:07,162 --> 00:27:07,263
[casey_]: oh
533
00:27:07,199 --> 00:27:07,439
[j_scott]: have very
534
00:27:07,363 --> 00:27:07,484
[casey_]: it's
535
00:27:07,539 --> 00:27:08,464
[j_scott]: differn opinion how do
536
00:27:08,450 --> 00:27:08,570
[casey_]: it's
537
00:27:08,504 --> 00:27:10,153
[j_scott]: you do things there's there's no right
or wrong
538
00:27:09,988 --> 00:27:13,133
[casey_]: no and it's about a fifty fifty
divide i mean i think i think
539
00:27:13,120 --> 00:27:13,242
[j_scott]: yep
540
00:27:13,273 --> 00:27:17,500
[casey_]: the fact that you to both have
separate opinions about it i think is
541
00:27:17,430 --> 00:27:18,570
[j_scott]: oh
542
00:27:17,761 --> 00:27:22,929
[casey_]: is the bulk of people that are
in this business i think half people are
543
00:27:22,989 --> 00:27:27,016
[casey_]: like hey you know you take joe
fales for example he's a he's a wire
544
00:27:27,216 --> 00:27:28,759
[casey_]: now kind of guy he's a wire
545
00:27:28,910 --> 00:27:29,013
[j_scott]: yep
546
00:27:28,939 --> 00:27:31,944
[casey_]: now i'll start paying per f the
next the first day of the
547
00:27:31,980 --> 00:27:32,161
[j_scott]: oh
548
00:27:31,984 --> 00:27:35,231
[casey_]: next month well if you send it
on the tenth obviously he's got
549
00:27:35,250 --> 00:27:35,394
[j_scott]: oh
550
00:27:35,291 --> 00:27:38,659
[casey_]: twenty days to place the capital if
you said it on the twenty ninth i
551
00:27:38,719 --> 00:27:40,383
[casey_]: think he's taking a little risk there
and the
552
00:27:40,320 --> 00:27:40,464
[j_scott]: yeah
553
00:27:40,523 --> 00:27:41,586
[casey_]: capital could cost him
554
00:27:42,150 --> 00:27:42,414
[j_scott]: oh
555
00:27:42,428 --> 00:27:47,324
[casey_]: a little bit but nevertheless go ahead
a
556
00:27:47,320 --> 00:27:51,247
[j_scott]: hundred percent and it's funny i've had
this conversation with joe he invests in ideals
557
00:27:51,307 --> 00:27:55,754
[j_scott]: i invest in his deals we've had
this discussion because we're both very different on
558
00:27:55,794 --> 00:27:55,995
[j_scott]: how we
559
00:27:56,018 --> 00:27:56,301
[casey_]: yes
560
00:27:56,055 --> 00:28:00,623
[j_scott]: approach this as well so like in
our camp so ashley is a big proponent
561
00:28:00,683 --> 00:28:05,110
[j_scott]: of soft commits figure out how much
money is out there get people like invested
562
00:28:05,170 --> 00:28:09,577
[j_scott]: in the deal and then then we're
ready to literally raise the money will raise
563
00:28:09,597 --> 00:28:14,467
[j_scott]: the money and the checker the wire
the money i'm more of a i don't
564
00:28:14,587 --> 00:28:18,174
[j_scott]: want to spin people up too many
times if the deal is not going to
565
00:28:18,215 --> 00:28:18,736
[j_scott]: go through
566
00:28:18,789 --> 00:28:19,109
[casey_]: that's
567
00:28:19,076 --> 00:28:20,018
[j_scott]: i don't want to spin people up
568
00:28:20,571 --> 00:28:22,334
[casey_]: that's it right there
569
00:28:22,200 --> 00:28:22,445
[j_scott]: yeah
570
00:28:22,794 --> 00:28:23,335
[casey_]: that's it
571
00:28:23,510 --> 00:28:25,255
[j_scott]: so exactly
572
00:28:25,398 --> 00:28:25,858
[casey_]: diligence
573
00:28:25,696 --> 00:28:25,776
[j_scott]: and
574
00:28:25,939 --> 00:28:26,219
[casey_]: falls
575
00:28:26,077 --> 00:28:26,198
[j_scott]: so
576
00:28:26,279 --> 00:28:29,483
[casey_]: apart and you call em hey man
remember that fifty grand now you can go
577
00:28:29,563 --> 00:28:31,486
[casey_]: buy your kid of yo yo we're
out
578
00:28:31,894 --> 00:28:36,306
[j_scott]: ay so and but here's the thing
that happens in hard commits also we had
579
00:28:36,366 --> 00:28:41,013
[j_scott]: a deal that that we were doing
that we were literally we had a closing
580
00:28:41,074 --> 00:28:46,122
[j_scott]: date and we had we had like
i think it was twelve of the twenty
581
00:28:46,162 --> 00:28:50,169
[j_scott]: million committed just a couple of weeks
ago and the deal fell apart and now
582
00:28:50,289 --> 00:28:54,035
[j_scott]: i have like forty five investors that
i have to say thank you but no
583
00:28:54,155 --> 00:28:58,382
[j_scott]: thank you and we're dealing with it
our investor understand in fact if you're smart
584
00:28:58,443 --> 00:29:01,728
[j_scott]: you spin it the right way you're
like look we're not doing this deal because
585
00:29:01,768 --> 00:29:04,232
[j_scott]: we found things during de diligence that
added risk to
586
00:29:04,191 --> 00:29:04,416
[casey_]: there's
587
00:29:04,272 --> 00:29:06,075
[j_scott]: the deal we're not going to take
extra risk
588
00:29:06,088 --> 00:29:06,229
[casey_]: yep
589
00:29:06,496 --> 00:29:10,943
[j_scott]: and our investors actually really that but
you certainly don't want to be doing that
590
00:29:11,104 --> 00:29:15,251
[j_scott]: like every month when you think you
have a deal coming and you don't really
591
00:29:15,291 --> 00:29:19,558
[j_scott]: have a deal coming so there are
actually ways that are that are kind of
592
00:29:19,738 --> 00:29:23,785
[j_scott]: in between so again actually and i
disagree in the whole soft commit thing but
593
00:29:23,825 --> 00:29:28,412
[j_scott]: what we do agree on is you
do need to communicate with your investors you
594
00:29:28,573 --> 00:29:32,219
[j_scott]: do need to keep them engaged because
one thing i found is we do a
595
00:29:32,299 --> 00:29:35,725
[j_scott]: lot or deals than a lot of
other sindicators
596
00:29:35,639 --> 00:29:35,801
[casey_]: sure
597
00:29:35,805 --> 00:29:40,312
[j_scott]: so so well we do between zero
and six deals a year
598
00:29:40,469 --> 00:29:40,489
[casey_]: a
599
00:29:40,973 --> 00:29:45,441
[j_scott]: um and so last year we did
zero deals this year we've already three but
600
00:29:45,982 --> 00:29:48,766
[j_scott]: we invest a lot of our own
money in our deals and so we're not
601
00:29:48,786 --> 00:29:51,611
[j_scott]: going to do a deal unless we
really really like it which means we could
602
00:29:51,651 --> 00:29:56,479
[j_scott]: go six or twelve months without doing
a deal on on occasion but if you
603
00:29:56,519 --> 00:30:00,967
[j_scott]: don't if your investors don't hear from
you for six months they're gonna invest elsewhere
604
00:30:00,987 --> 00:30:03,631
[j_scott]: they're going to forget about you and
then you have to re spin up that
605
00:30:03,711 --> 00:30:08,800
[j_scott]: relationship so what i found is instead
of the soft commit what we lay to
606
00:30:08,860 --> 00:30:13,307
[j_scott]: do is we like to just constantly
communicate so i do a monthly newsletter to
607
00:30:13,387 --> 00:30:18,095
[j_scott]: all of my investors we do a
sorry weekly news letter to all of our
608
00:30:18,135 --> 00:30:22,202
[j_scott]: investors which is basically i'll write an
article very week if i do a podcast
609
00:30:22,242 --> 00:30:26,309
[j_scott]: i'll probably put this podcast in one
of our weekly news letters on a monthly
610
00:30:26,369 --> 00:30:30,696
[j_scott]: basis we do a monthly newsletter that
has bigger announcements from the company where we'll
611
00:30:30,736 --> 00:30:35,444
[j_scott]: talk about each of our projects and
how it's in for existing investors um and
612
00:30:35,484 --> 00:30:39,872
[j_scott]: then once a month i will do
a survey of our investors on how much
613
00:30:39,952 --> 00:30:43,818
[j_scott]: capital they have to invest and win
and what types of returns they're looking for
614
00:30:43,898 --> 00:30:48,043
[j_scott]: so once a month have less three
or four or five question survey literally takes
615
00:30:48,203 --> 00:30:52,967
[j_scott]: fifteen seconds for them to just click
boxes but they can tell us we have
616
00:30:53,247 --> 00:30:54,068
[j_scott]: x number of dollars
617
00:30:53,918 --> 00:30:54,240
[casey_]: you have
618
00:30:54,128 --> 00:30:54,609
[j_scott]: to invest
619
00:30:54,301 --> 00:30:54,825
[casey_]: somebody that
620
00:30:54,709 --> 00:30:54,869
[j_scott]: in the
621
00:30:54,905 --> 00:30:55,127
[casey_]: does
622
00:30:54,909 --> 00:30:55,109
[j_scott]: next
623
00:30:55,187 --> 00:30:57,932
[casey_]: the survey i want to dig back
into
624
00:30:57,882 --> 00:30:57,903
[j_scott]: i
625
00:30:57,992 --> 00:30:58,192
[casey_]: that
626
00:30:58,004 --> 00:30:58,084
[j_scott]: do
627
00:30:58,413 --> 00:30:58,975
[casey_]: you do that
628
00:31:00,331 --> 00:31:03,607
[j_scott]: so this is something that it's probably
not
629
00:31:03,938 --> 00:31:04,246
[casey_]: oh
630
00:31:04,360 --> 00:31:08,126
[j_scott]: something i should be doing myself but
when it comes to my investors i am
631
00:31:08,326 --> 00:31:12,774
[j_scott]: so protective when it comes to communicating
my investors so i don't necessarily write all
632
00:31:12,814 --> 00:31:17,061
[j_scott]: of our communications but i read every
word of the community tiens that go to
633
00:31:17,121 --> 00:31:19,705
[j_scott]: our investors because i want to know
what they're being told i want to make
634
00:31:19,745 --> 00:31:23,491
[j_scott]: sure things are being said in the
right way it's just i'm just i'm very
635
00:31:23,552 --> 00:31:26,857
[j_scott]: controlling that way when it comes to
investors because that is the heart of our
636
00:31:26,917 --> 00:31:31,105
[j_scott]: business when it comes to these surveys
i'm very particular about the way things are
637
00:31:31,145 --> 00:31:34,171
[j_scott]: written in what questions we're asking and
if if they're going to have to take
638
00:31:34,251 --> 00:31:36,836
[j_scott]: twenty five seconds versus fifteen that's too
639
00:31:36,759 --> 00:31:36,999
[casey_]: well
640
00:31:36,916 --> 00:31:37,357
[j_scott]: long they're
641
00:31:37,179 --> 00:31:37,260
[casey_]: and
642
00:31:37,377 --> 00:31:37,457
[j_scott]: not
643
00:31:37,380 --> 00:31:37,540
[casey_]: see
644
00:31:37,497 --> 00:31:37,617
[j_scott]: going
645
00:31:37,580 --> 00:31:37,640
[casey_]: and
646
00:31:37,637 --> 00:31:37,677
[j_scott]: to
647
00:31:37,700 --> 00:31:37,941
[casey_]: that's
648
00:31:37,738 --> 00:31:38,219
[j_scott]: engage
649
00:31:38,041 --> 00:31:43,690
[casey_]: the that's a big that's for for
somebody that's been in the business like let's
650
00:31:43,730 --> 00:31:45,593
[casey_]: say a year and you've built up
651
00:31:45,600 --> 00:31:46,350
[j_scott]: yeah
652
00:31:45,654 --> 00:31:49,360
[casey_]: a little base of investors reason i
dig in on that survey part is because
653
00:31:50,363 --> 00:31:52,988
[casey_]: hunter thompson for example he's i'm in
654
00:31:53,040 --> 00:31:53,060
[j_scott]: m
655
00:31:53,048 --> 00:31:55,113
[casey_]: his master mind and
656
00:31:55,110 --> 00:31:55,212
[j_scott]: yep
657
00:31:56,416 --> 00:32:04,362
[casey_]: what he always pushes and it's like
almost to the manner you're really talking about
658
00:32:04,382 --> 00:32:07,490
[casey_]: this again is surveying your audience and
i
659
00:32:07,490 --> 00:32:07,611
[j_scott]: yep
660
00:32:07,650 --> 00:32:14,016
[casey_]: think that as as for the person
that's between a whole heartedly all in just
661
00:32:14,738 --> 00:32:21,545
[casey_]: blood down marketer and the person that's
a business capital raiser studying l l c
662
00:32:21,745 --> 00:32:28,889
[casey_]: agreements blab blah in between there somebody
has to figure out okay how do we
663
00:32:28,990 --> 00:32:34,414
[casey_]: survey our audience and figure out what
what are they finding that they like that
664
00:32:34,474 --> 00:32:39,040
[casey_]: we can do more of what are
they finding that man this really sucks what
665
00:32:39,281 --> 00:32:44,124
[casey_]: of those things there so that's why
i jump in on that survey part just
666
00:32:44,164 --> 00:32:44,405
[casey_]: because
667
00:32:45,692 --> 00:32:45,773
[j_scott]: ah
668
00:32:46,329 --> 00:32:47,913
[casey_]: just it's such a big part
669
00:32:47,700 --> 00:32:48,360
[j_scott]: yeah
670
00:32:48,033 --> 00:32:49,376
[casey_]: of the relations business
671
00:32:50,570 --> 00:32:55,018
[j_scott]: yeah we know at any given time
based on the last survey we did do
672
00:32:55,098 --> 00:32:59,104
[j_scott]: we have ten million waiting to be
deployed or thirty million waiting to be deployed
673
00:32:59,124 --> 00:33:02,009
[j_scott]: and again you have to slash that
because people say they have money and the
674
00:33:02,230 --> 00:33:05,916
[j_scott]: don't but if i if this month
i have ten million next month i have
675
00:33:05,956 --> 00:33:09,041
[j_scott]: thirty million even though i don't know
if i have ten or thirty i do
676
00:33:09,101 --> 00:33:10,944
[j_scott]: know that i have a lot more
now than i did last
677
00:33:10,939 --> 00:33:11,082
[casey_]: yeah
678
00:33:11,004 --> 00:33:15,392
[j_scott]: month um and so that tells me
i can probably be and after larger deals
679
00:33:15,452 --> 00:33:18,497
[j_scott]: or maybe we find somebody else to
partner with at the same time i can
680
00:33:18,597 --> 00:33:22,303
[j_scott]: ask basically what are you looking for
right now you're looking for cash flow or
681
00:33:22,383 --> 00:33:28,233
[j_scott]: you're looking for for total return and
so gives me some idea of the types
682
00:33:28,313 --> 00:33:32,340
[j_scott]: of deals my investors are looking for
i know my investors pretty well but we
683
00:33:32,400 --> 00:33:36,046
[j_scott]: have a wide variety of investors one
of our partners used to be a professional
684
00:33:36,126 --> 00:33:38,610
[j_scott]: athlete and so we have a number
of professional let that are
685
00:33:38,618 --> 00:33:38,840
[casey_]: yes
686
00:33:38,630 --> 00:33:41,776
[j_scott]: investors i used to be in the
tech world in silicon valley so we have
687
00:33:41,796 --> 00:33:47,926
[j_scott]: a number of like young tech guys
and girls that that are investors who they
688
00:33:48,026 --> 00:33:51,933
[j_scott]: know nothing about real estate they have
high risk tolerances but then i also have
689
00:33:51,973 --> 00:33:56,261
[j_scott]: a bunch of real estate investors in
my network that invest with us
690
00:33:56,378 --> 00:33:56,584
[casey_]: yeah
691
00:33:56,762 --> 00:34:00,328
[j_scott]: and there are a whole lot different
they understand the deals they know exactly what
692
00:34:00,368 --> 00:34:03,433
[j_scott]: they want and they can tell me
to the dollar or to the per cent
693
00:34:03,874 --> 00:34:08,101
[j_scott]: what return they need to get a
deal done i know at their risk tolerances
694
00:34:08,401 --> 00:34:11,426
[j_scott]: and so by doing these surveys i
kind of get an idea of should i
695
00:34:11,486 --> 00:34:15,713
[j_scott]: be doing these high rest deals that
that are generating no cash flow but lots
696
00:34:15,794 --> 00:34:20,381
[j_scott]: of total returns in the back end
or my investors right now looking for cash
697
00:34:20,501 --> 00:34:22,465
[j_scott]: flow and security and low risk
698
00:34:22,528 --> 00:34:23,288
[casey_]: yeah
699
00:34:22,865 --> 00:34:27,072
[j_scott]: and so because that's going to change
over time especially as the economy changes i
700
00:34:27,152 --> 00:34:30,318
[j_scott]: can modulate the types of deals i'm
looking for in the deals i'm putting out
701
00:34:30,358 --> 00:34:32,602
[j_scott]: there based on my investors are telling
me
702
00:34:32,718 --> 00:34:32,840
[casey_]: yeah
703
00:34:32,982 --> 00:34:37,229
[j_scott]: so the surveys are great the other
thing that i love about surveys is my
704
00:34:37,329 --> 00:34:41,496
[j_scott]: wife and i wrote a book and
negotiating as well for real estate investors and
705
00:34:41,757 --> 00:34:48,027
[j_scott]: from negotiating standpoint any time you get
somebody to physically write down yes i'm looking
706
00:34:48,087 --> 00:34:52,855
[j_scott]: to invest a hundred thousand dollars with
your company in the next ninety days they've
707
00:34:52,935 --> 00:34:55,540
[j_scott]: now made if not a hard commitment
on their mind and
708
00:34:55,568 --> 00:34:55,691
[casey_]: yep
709
00:34:55,620 --> 00:34:58,665
[j_scott]: they've made at least a soft commitment
in their mind of investing with you
710
00:34:58,798 --> 00:34:58,942
[casey_]: yep
711
00:34:59,246 --> 00:35:02,211
[j_scott]: you forced them to really think through
the fact that they're going to vest with
712
00:35:02,251 --> 00:35:06,819
[j_scott]: you they've told you and now they
have this again not a hard obligation but
713
00:35:06,839 --> 00:35:09,324
[j_scott]: they have this have soft obligation in
their mind that when you
714
00:35:09,382 --> 00:35:09,603
[casey_]: well
715
00:35:09,404 --> 00:35:10,226
[j_scott]: come to them and say
716
00:35:10,147 --> 00:35:10,268
[casey_]: it's
717
00:35:10,326 --> 00:35:10,446
[j_scott]: hey
718
00:35:10,348 --> 00:35:10,791
[casey_]: a seed
719
00:35:10,526 --> 00:35:17,197
[j_scott]: we've got a deal exactly and so
we really like this idea of of the
720
00:35:17,237 --> 00:35:21,004
[j_scott]: surveys and we really like the idea
of one going communication i used to be
721
00:35:21,064 --> 00:35:26,273
[j_scott]: a big believer that that you can
over communicate that if i send weekly emails
722
00:35:26,353 --> 00:35:31,081
[j_scott]: to my investors or if we have
a deal and i send every day i
723
00:35:31,201 --> 00:35:34,987
[j_scott]: say hey just a reminder about this
deal or every other day i used to
724
00:35:35,047 --> 00:35:39,775
[j_scott]: think like that's gonna piss off my
investors and they're gonna like unsubscribe from my
725
00:35:39,895 --> 00:35:43,561
[j_scott]: list and what i found is that
it's kind of just the opposite
726
00:35:43,318 --> 00:35:43,462
[casey_]: yeah
727
00:35:43,882 --> 00:35:48,289
[j_scott]: if i go too long between sending
messages i get a lot of unsubscribes because
728
00:35:48,470 --> 00:35:52,220
[j_scott]: those investors are either no longer interested
they don't remember who i am they don't
729
00:35:52,300 --> 00:36:01,339
[j_scott]: remember what we do but if i
send more more more constant communication what i
730
00:36:01,639 --> 00:36:04,724
[j_scott]: see is a whole lot more engagement
certainly there are some people that don't like
731
00:36:04,764 --> 00:36:07,309
[j_scott]: to be bothered every day but those
are people that weren't going to invest with
732
00:36:07,369 --> 00:36:08,170
[j_scott]: us every anyway
733
00:36:08,418 --> 00:36:08,560
[casey_]: yeah
734
00:36:08,750 --> 00:36:14,736
[j_scott]: so so i've now kind of gone
on this this this this other track of
735
00:36:14,996 --> 00:36:17,859
[j_scott]: over communicating because i found that it
works
736
00:36:19,240 --> 00:36:24,830
[casey_]: and you know and i think that
everybody thinks there's a fine line there and
737
00:36:25,350 --> 00:36:30,660
[casey_]: the fine line actually exists not in
not in how often you commun okay but
738
00:36:30,720 --> 00:36:31,662
[casey_]: what you're communicating
739
00:36:31,320 --> 00:36:31,684
[j_scott]: oh
740
00:36:31,722 --> 00:36:33,385
[casey_]: about and when you're ommunicating
741
00:36:33,273 --> 00:36:33,640
[j_scott]: exactly
742
00:36:33,466 --> 00:36:37,664
[casey_]: about so when you're trying to offer
somebody a chance
743
00:36:37,500 --> 00:36:38,100
[j_scott]: oh
744
00:36:37,744 --> 00:36:39,818
[casey_]: to make money a
745
00:36:40,951 --> 00:36:41,116
[j_scott]: yeah
746
00:36:41,100 --> 00:36:48,813
[casey_]: man you could tell them every hour
and especially after they've invested after they've invested
747
00:36:49,374 --> 00:36:50,155
[casey_]: man something
748
00:36:50,220 --> 00:36:50,363
[j_scott]: yeah
749
00:36:50,235 --> 00:36:51,638
[casey_]: changes they want to know
750
00:36:51,890 --> 00:36:52,014
[j_scott]: yep
751
00:36:52,218 --> 00:36:56,566
[casey_]: because the thing is is that these
people that are investing fifty hundred two hundred
752
00:36:56,646 --> 00:37:01,474
[casey_]: two fifty a million whatever in your
deal they've obviously done something to make that
753
00:37:01,554 --> 00:37:02,976
[casey_]: money initially right
754
00:37:03,590 --> 00:37:03,714
[j_scott]: yep
755
00:37:03,859 --> 00:37:11,736
[casey_]: all know what that making of that
money boils down to is control they've controlled
756
00:37:11,896 --> 00:37:18,407
[casey_]: something to an extent long enough to
make this pile of money right
757
00:37:18,821 --> 00:37:18,942
[j_scott]: yep
758
00:37:19,129 --> 00:37:25,495
[casey_]: so when they invest it with you
they want to feel like hey i have
759
00:37:25,596 --> 00:37:27,943
[casey_]: some say so here i have
760
00:37:27,990 --> 00:37:28,650
[j_scott]: oh
761
00:37:28,003 --> 00:37:36,078
[casey_]: some so the control part of it
i think is everything in my tin
762
00:37:36,050 --> 00:37:42,101
[j_scott]: and here's the other thing we use
our communication to educate as well and so
763
00:37:42,340 --> 00:37:42,646
[casey_]: shit
764
00:37:42,562 --> 00:37:46,949
[j_scott]: a lot of our investors a lot
of our investors also want to do sindication
765
00:37:47,010 --> 00:37:49,414
[j_scott]: themselves they're looking for a place to
put their money but they also want to
766
00:37:49,434 --> 00:37:54,963
[j_scott]: be active and so we use a
lot of our communications to educate not just
767
00:37:55,063 --> 00:37:59,570
[j_scott]: on the deals we're doing but we'll
talk about like we'll dig into the underwriting
768
00:37:59,611 --> 00:38:04,939
[j_scott]: of the deal we'll dig into the
opportunities on the deal things that typical investor
769
00:38:05,000 --> 00:38:09,587
[j_scott]: might not be interested in but somebody
who is actually looking to become an active
770
00:38:10,449 --> 00:38:14,195
[j_scott]: on this indication side themselves they're gonna
be like oh this is really good information
771
00:38:15,116 --> 00:38:20,005
[j_scott]: and if i send ten emails in
a week and three of them are educational
772
00:38:20,085 --> 00:38:24,071
[j_scott]: or and seven of them are pitching
a deal those investors those people are going
773
00:38:24,091 --> 00:38:27,397
[j_scott]: to keep opening the deals even if
they don't care about the deals or opening
774
00:38:27,417 --> 00:38:30,442
[j_scott]: the emails even if they don't care
about the deals because they know that a
775
00:38:30,562 --> 00:38:31,063
[j_scott]: few of them are
776
00:38:31,028 --> 00:38:31,193
[casey_]: yeah
777
00:38:31,083 --> 00:38:34,069
[j_scott]: going to contain good information good education
and so
778
00:38:33,999 --> 00:38:34,142
[casey_]: yeah
779
00:38:34,129 --> 00:38:37,555
[j_scott]: they're looking for those and then one
day they may be ready to invest in
780
00:38:37,636 --> 00:38:39,178
[j_scott]: a deal and they're still open in
the emails
781
00:38:39,338 --> 00:38:44,567
[casey_]: and the thing is the education and
all of that and the information is coming
782
00:38:44,667 --> 00:38:46,290
[casey_]: from the surveys the survey
783
00:38:46,730 --> 00:38:46,916
[j_scott]: yes
784
00:38:46,851 --> 00:38:49,495
[casey_]: edformation education survey information education
785
00:38:49,140 --> 00:38:49,243
[j_scott]: yep
786
00:38:49,896 --> 00:38:54,804
[casey_]: now one thing that found interesting we're
kind of running close we're running shore on
787
00:38:54,864 --> 00:38:59,652
[casey_]: time but it's been very interesting discussion
because i feel like you're right in you're
788
00:38:59,692 --> 00:39:04,039
[casey_]: right in the glut of where a
lot of our listeners want to be at
789
00:39:04,160 --> 00:39:04,941
[casey_]: some point but
790
00:39:04,890 --> 00:39:05,910
[j_scott]: yeah
791
00:39:04,981 --> 00:39:07,966
[casey_]: you're still enough of you're still early
792
00:39:07,894 --> 00:39:07,914
[j_scott]: i
793
00:39:08,046 --> 00:39:12,514
[casey_]: enough in the actual syndication part to
be able to to freshly tell us how
794
00:39:12,594 --> 00:39:17,051
[casey_]: these are the things that we did
to get traction right but one thing that
795
00:39:17,071 --> 00:39:17,172
[j_scott]: oh
796
00:39:17,091 --> 00:39:18,433
[casey_]: i found interesting in some
797
00:39:18,510 --> 00:39:18,692
[j_scott]: yeah
798
00:39:18,514 --> 00:39:25,625
[casey_]: of the surveys and i've actually talked
to several investors that were in past deals
799
00:39:25,726 --> 00:39:29,211
[casey_]: other deals matter of fact a doctor
was in to deal with a guy in
800
00:39:29,292 --> 00:39:33,358
[casey_]: new jersey right and this so i
just remember this i just this is the
801
00:39:33,438 --> 00:39:37,806
[casey_]: example i'm going to use but um
you know the deal lost money and this's
802
00:39:37,826 --> 00:39:41,452
[casey_]: been he was in it it was
several years ago and you know the funny
803
00:39:41,512 --> 00:39:47,682
[casey_]: thing about it when i started talking
to him and asking inquisitive questions was he
804
00:39:47,762 --> 00:39:52,370
[casey_]: wasn't even mad about losing the money
i mean he didn't lose it all but
805
00:39:52,410 --> 00:39:53,893
[casey_]: he wasn't even mad about the investment
806
00:39:53,713 --> 00:39:53,857
[j_scott]: yep
807
00:39:53,993 --> 00:39:58,491
[casey_]: losing money you know what pissed him
off he didn't tell him like they didn't
808
00:39:58,511 --> 00:39:58,672
[casey_]: tell
809
00:39:58,681 --> 00:39:58,802
[j_scott]: yep
810
00:39:58,732 --> 00:40:00,956
[casey_]: him till he was over and he
was like
811
00:40:00,800 --> 00:40:00,942
[j_scott]: yep
812
00:40:02,528 --> 00:40:06,635
[casey_]: do you mean he lost twenty per
cent of my money and and instead of
813
00:40:06,975 --> 00:40:09,660
[casey_]: like like he was like he was
like i went into a real estate deal
814
00:40:09,720 --> 00:40:12,925
[casey_]: i knew there was a chance right
it was a little bit this out of
815
00:40:12,965 --> 00:40:18,014
[casey_]: the other but the to the matter
is is everything went on
816
00:40:17,963 --> 00:40:18,168
[j_scott]: yeah
817
00:40:18,054 --> 00:40:20,438
[casey_]: and went on and went on and
went on and went on and then when
818
00:40:20,478 --> 00:40:25,987
[casey_]: it came time to cash out he
was everybody ever like hay sorry and that's
819
00:40:26,087 --> 00:40:31,009
[casey_]: what them off that's what made him
mad and it was just like that that
820
00:40:31,050 --> 00:40:36,534
[casey_]: could not that he probably would have
likely came back on another deal but at
821
00:40:36,574 --> 00:40:39,457
[casey_]: the same time there's a better chance
that he would have right
822
00:40:41,910 --> 00:40:46,918
[j_scott]: yeah and i'll tell you i'm i'm
big on one of our urrcorepillers and our
823
00:40:46,978 --> 00:40:52,387
[j_scott]: company is transparency we are always going
to be completely transparent with our investors and
824
00:40:52,428 --> 00:40:56,875
[j_scott]: our investors know it there are times
when like my partner cringes a little bit
825
00:40:56,935 --> 00:40:59,559
[j_scott]: because i'll say things that she's like
i can't believe you said that to an
826
00:40:59,579 --> 00:41:04,748
[j_scott]: investor but it's like i would rather
tell an investor like the potentially bad thing
827
00:41:04,788 --> 00:41:09,736
[j_scott]: that could happen now um so that
if it does happen um i can say
828
00:41:09,917 --> 00:41:12,902
[j_scott]: we talked about this and let's now
let's talk about what we're going to do
829
00:41:12,922 --> 00:41:13,903
[j_scott]: in mitigate it and fix
830
00:41:14,028 --> 00:41:14,150
[casey_]: yeah
831
00:41:14,044 --> 00:41:18,331
[j_scott]: it um i mean i will often
jump on zoom calls with potent all investors
832
00:41:18,731 --> 00:41:22,658
[j_scott]: um for a deal and i'll say
let me tell you about the three things
833
00:41:22,738 --> 00:41:26,024
[j_scott]: on this deal that keep me up
at night and i'm investing my own money
834
00:41:26,084 --> 00:41:30,111
[j_scott]: on the passive side so i know
how you're feeling so let me tell you
835
00:41:30,191 --> 00:41:33,740
[j_scott]: those three things and let me tell
you if each of these three things or
836
00:41:33,800 --> 00:41:36,547
[j_scott]: any of these three things happened let
me tell you what we're planning to do
837
00:41:36,648 --> 00:41:40,144
[j_scott]: about it so that way if one
of those things happens on the deal i
838
00:41:40,184 --> 00:41:42,768
[j_scott]: can go back to my investors and
say hey you remember we talked about this
839
00:41:42,848 --> 00:41:42,971
[casey_]: yeah
840
00:41:43,109 --> 00:41:47,075
[j_scott]: it sucks but it happened and just
like we talked about this is what we're
841
00:41:47,176 --> 00:41:51,141
[j_scott]: doing about it and our investors love
the fact that when they talk to me
842
00:41:51,341 --> 00:41:54,725
[j_scott]: i'm not all yeah this deal is
fantastic and nothing can go wrong and you're
843
00:41:54,765 --> 00:41:57,487
[j_scott]: goin t make lots of money i'm
pretty cynical
844
00:41:57,458 --> 00:41:57,959
[casey_]: hey and
845
00:41:57,988 --> 00:41:58,068
[j_scott]: and
846
00:41:58,019 --> 00:41:58,260
[casey_]: that's
847
00:41:58,128 --> 00:41:58,869
[j_scott]: i'm going to tell them
848
00:41:59,062 --> 00:42:03,433
[casey_]: yeah i mean and that's the way
that that you have to be and because
849
00:42:03,894 --> 00:42:04,616
[casey_]: at the end of the day
850
00:42:04,472 --> 00:42:05,222
[j_scott]: it builds trust
851
00:42:05,538 --> 00:42:09,564
[casey_]: yeah yeah hey listen hey this may
go good this may go bad listen we
852
00:42:09,604 --> 00:42:13,371
[casey_]: hope it goes good but it goes
bad this is the list of things that
853
00:42:13,451 --> 00:42:17,878
[casey_]: may happen or going to happen or
whatever now real quick before we we move
854
00:42:17,938 --> 00:42:21,746
[casey_]: into the last phase of the of
this but i don't want to know where
855
00:42:22,718 --> 00:42:27,951
[casey_]: where is your stream of investors or
potential investors or even people to have calls
856
00:42:28,051 --> 00:42:28,733
[casey_]: with coming from
857
00:42:30,971 --> 00:42:35,518
[j_scott]: so i have been fortunate enough over
the last fifteen years that i've built a
858
00:42:35,619 --> 00:42:41,108
[j_scott]: pretty good brand a lot of your
listeners are probably familiar with bigger pocket so
859
00:42:41,629 --> 00:42:46,817
[j_scott]: i got in with bigger pockets really
early i've written four books soon to be
860
00:42:46,897 --> 00:42:51,225
[j_scott]: five books for them i was the
host of one of the bigger pockets podcasts
861
00:42:51,325 --> 00:42:55,512
[j_scott]: up until last year and so a
lot of peopl that that are part of
862
00:42:55,532 --> 00:43:02,234
[j_scott]: the bigger pockets community know me through
that and so i pretty active on social
863
00:43:02,275 --> 00:43:05,961
[j_scott]: media i post a lot on facebook
i write a lot of articles i'm pretty
864
00:43:06,001 --> 00:43:11,530
[j_scott]: well known for just the education that
i put out there and i basical spent
865
00:43:11,550 --> 00:43:16,418
[j_scott]: the last fifteen years kind of building
a brand and putting information out there without
866
00:43:16,478 --> 00:43:19,403
[j_scott]: asking for anything in return and so
i get a lot of people who say
867
00:43:19,463 --> 00:43:23,229
[j_scott]: to me i've been following you for
ten years and and now you finally lie
868
00:43:23,550 --> 00:43:23,670
[j_scott]: have
869
00:43:23,678 --> 00:43:24,022
[casey_]: oh
870
00:43:23,690 --> 00:43:27,016
[j_scott]: something i can invest in i really
want to invest with you even though i've
871
00:43:27,036 --> 00:43:29,280
[j_scott]: never invested anything before because i feel
like i know
872
00:43:29,338 --> 00:43:29,460
[casey_]: yeah
873
00:43:29,340 --> 00:43:35,109
[j_scott]: you and so so what i would
tell anybody out there that's looking to build
874
00:43:35,149 --> 00:43:39,617
[j_scott]: a and then build up an investor
list start by offering value giving value without
875
00:43:39,677 --> 00:43:44,906
[j_scott]: asking for anything in return build those
relationships build that trust so that way a
876
00:43:44,986 --> 00:43:48,872
[j_scott]: year or two or five down the
road when you ready to start raising money
877
00:43:49,273 --> 00:43:53,420
[j_scott]: people are like wow you've been giving
to me for the last three years you've
878
00:43:53,460 --> 00:43:58,508
[j_scott]: never asked or anything in return i'm
thrilled to invest with you because like i
879
00:43:58,568 --> 00:43:59,209
[j_scott]: feel like i know you
880
00:43:59,848 --> 00:44:04,596
[casey_]: yeah awesome man that's that's that's great
and i think that there's a that that
881
00:44:04,737 --> 00:44:09,464
[casey_]: that carries a lot of value to
the people who are trying to figure out
882
00:44:09,545 --> 00:44:10,206
[casey_]: how to dig in
883
00:44:10,290 --> 00:44:10,472
[j_scott]: ye
884
00:44:10,506 --> 00:44:14,951
[casey_]: so awesome all right we'll listen j
so we always end that each episode with
885
00:44:15,031 --> 00:44:17,613
[casey_]: a couple of questions there's no right
or wrong answer but the first of those
886
00:44:17,653 --> 00:44:22,797
[casey_]: questions is what is the best book
that you've recently read or are currently reading
887
00:44:24,530 --> 00:44:28,297
[j_scott]: so my favorite book and i like
to pick this one because my guest is
888
00:44:28,377 --> 00:44:32,604
[j_scott]: nobody else's on your show has suggested
this book but it's a book called the
889
00:44:32,704 --> 00:44:32,984
[j_scott]: goal
890
00:44:33,298 --> 00:44:33,481
[casey_]: okay
891
00:44:33,706 --> 00:44:41,278
[j_scott]: go a l and it's all about
basically process improvement and creating
892
00:44:41,648 --> 00:44:41,854
[casey_]: yeah
893
00:44:42,140 --> 00:44:48,310
[j_scott]: optimal systems and processes in your business
books like forty years old written by a
894
00:44:48,410 --> 00:44:54,661
[j_scott]: process engineer but it applies to real
estate investors it applies to business owners whoever
895
00:44:54,721 --> 00:44:58,507
[j_scott]: you are and it's just for anybody
out there that's looking to build and scale
896
00:44:58,547 --> 00:45:00,420
[j_scott]: of business i highly recommend that welcome
897
00:45:00,388 --> 00:45:05,325
[casey_]: awesome awesome what is a dream vacation
that you have either taken or hoped to
898
00:45:05,385 --> 00:45:05,566
[casey_]: take
899
00:45:07,556 --> 00:45:14,348
[j_scott]: um so we've been trying to do
alaska for the last couple of years
900
00:45:14,629 --> 00:45:14,972
[casey_]: ovid let
901
00:45:15,029 --> 00:45:15,109
[j_scott]: we
902
00:45:15,032 --> 00:45:15,093
[casey_]: me
903
00:45:15,149 --> 00:45:15,309
[j_scott]: were
904
00:45:15,153 --> 00:45:15,375
[casey_]: guess
905
00:45:15,369 --> 00:45:16,872
[j_scott]: supposed to go just before covid
906
00:45:16,908 --> 00:45:17,070
[casey_]: yep
907
00:45:16,912 --> 00:45:20,378
[j_scott]: and then covid hit and then we're
supposed to go last year and covid gotten
908
00:45:20,398 --> 00:45:24,102
[j_scott]: the way again and so we've bee
trying to schedule this alaska trip with our
909
00:45:24,163 --> 00:45:26,946
[j_scott]: two boys we have eleven and twelve
year old boys for a couple of years
910
00:45:27,026 --> 00:45:29,729
[j_scott]: now so hopefully hopefully this winter we'll
be able to do that one
911
00:45:29,828 --> 00:45:33,734
[casey_]: awesome awesome all right well listen so
how can the listeners reach out and get
912
00:45:33,754 --> 00:45:37,180
[casey_]: in touch with you if there's something
they heard which i know there was i
913
00:45:37,240 --> 00:45:40,546
[casey_]: know there is questions they may have
or things they want to know more
914
00:45:40,530 --> 00:45:40,713
[j_scott]: yeah
915
00:45:40,606 --> 00:45:42,954
[casey_]: about how and then reach out and
get in touch with you
916
00:45:44,280 --> 00:45:48,747
[j_scott]: if anybody wants to find out how
to how to connect with me or anything
917
00:45:48,848 --> 00:45:53,976
[j_scott]: that that i'm doing just go to
one place w w w dot connect with
918
00:45:54,337 --> 00:45:58,973
[j_scott]: j scott dot com just letter j
connect with j scott dot com and that
919
00:45:58,993 --> 00:45:59,877
[j_scott]: will link you out to everywhere
920
00:46:00,159 --> 00:46:03,365
[casey_]: awesome man that's great well thank you
so much j i know you're busy man
921
00:46:03,746 --> 00:46:06,953
[casey_]: you all got it's obvious with the
phone rings and the dings and everything that
922
00:46:07,213 --> 00:46:07,353
[casey_]: you've
923
00:46:07,340 --> 00:46:07,360
[j_scott]: i
924
00:46:07,414 --> 00:46:07,514
[casey_]: got
925
00:46:07,460 --> 00:46:08,061
[j_scott]: apologize
926
00:46:07,594 --> 00:46:08,015
[casey_]: going on
927
00:46:08,162 --> 00:46:08,482
[j_scott]: for that
928
00:46:08,436 --> 00:46:08,676
[casey_]: man
929
00:46:09,024 --> 00:46:10,968
[j_scott]: i always have to put it on
on silence
930
00:46:10,968 --> 00:46:14,714
[casey_]: but hey listen that's part of that's
part of the business we're in and and
931
00:46:15,035 --> 00:46:18,661
[casey_]: you know when those investors call and
people reach out you know we we we
932
00:46:18,721 --> 00:46:21,445
[casey_]: may hit the decline button one time
an you know dan you're goin to call
933
00:46:21,485 --> 00:46:24,250
[casey_]: him back when you when we get
all figured so thank you so much for
934
00:46:24,290 --> 00:46:29,419
[casey_]: your time and listeners as always please
head down and leave us a review leave
935
00:46:29,459 --> 00:46:35,268
[casey_]: us a five star review and we
will most certainly appreciate that and also while
936
00:46:35,368 --> 00:46:39,295
[casey_]: you're there hit to subscribe but so
that you can be notified when we release
937
00:46:39,355 --> 00:46:44,884
[casey_]: new episodes new content and with that
i want to thank you for your time
938
00:46:44,984 --> 00:46:48,621
[casey_]: and again j thank you for your
time i hope everybody has a wonderful rest
939
00:46:48,681 --> 00:46:49,004
[casey_]: of the day
940
00:46:50,541 --> 00:46:50,783
[j_scott]: cassy