EP 219: From X-Games to Real Estate Mogul: Dan Brisse on Building Wealth Beyond Snowboarding

[00:00:02] [SPEAKER_00]: Show.

[00:00:05] [SPEAKER_00]: We're going to show you how to create success in our lives.

[00:00:12] [SPEAKER_00]: This show stands on the shoulders of giants.

[00:00:14] [SPEAKER_00]: Our mission is to empower and inspire our listeners to create the life of their dreams

[00:00:20] [SPEAKER_00]: while it's having a blast in the process.

[00:00:23] [SPEAKER_00]: Let's celebrate life together.

[00:00:25] [SPEAKER_00]: Welcome to the show!

[00:00:29] [SPEAKER_02]: Alright, welcome back to the Gentle Art of Crushing It, podcast.

[00:00:33] [SPEAKER_02]: My name is Randy Smith and I'm your host today.

[00:00:37] [SPEAKER_02]: I am really excited to have Dan Brisse with us.

[00:00:40] [SPEAKER_02]: Dan is the managing partner of Granite Towers, Equity Group.

[00:00:43] [SPEAKER_02]: They've got about 3,000 doors and 350 million in assets on our management.

[00:00:49] [SPEAKER_02]: Primarily focused in DFW at Nashville.

[00:00:52] [SPEAKER_02]: Something kind of fun and interesting is he was a professional snowboard for 15 years

[00:00:56] [SPEAKER_02]: and participated in the X-Games.

[00:00:58] [SPEAKER_02]: So, Dan, welcome to the show!

[00:01:00] [SPEAKER_02]: Excited to have you here.

[00:01:02] [SPEAKER_03]: Thank you Randy.

[00:01:02] [SPEAKER_03]: I'm excited to be here with you.

[00:01:04] [SPEAKER_03]: Thanks for having me on.

[00:01:05] [SPEAKER_02]: Absolutely.

[00:01:06] [SPEAKER_02]: Well, let's jump right in and can you tell the audience a little bit more about yourself

[00:01:10] [SPEAKER_02]: more than the details that I just shared to you?

[00:01:14] [SPEAKER_03]: Yeah, I grew up on a small town in Central Minnesota with a big dream.

[00:01:18] [SPEAKER_03]: I guess looking back, it doesn't feel as big now but back then it seemed big, becoming

[00:01:23] [SPEAKER_03]: a professional snowboarder.

[00:01:25] [SPEAKER_03]: And found it when I was about 13, 14 years old.

[00:01:29] [SPEAKER_03]: Got really into it by the day to 15 or 16.

[00:01:33] [SPEAKER_03]: I pretty much had made a decision I was going to do my best to become a professional

[00:01:38] [SPEAKER_03]: snowboarder.

[00:01:39] [SPEAKER_03]: I didn't really have the app here and said, had any money that I like supply this sort

[00:01:43] [SPEAKER_03]: of dream so it was really on me.

[00:01:44] [SPEAKER_03]: I started working odd job in the summer and I would snowboard as much as I could at

[00:01:48] [SPEAKER_03]: the local resort called Powder Ridge in Central Minnesota.

[00:01:51] [SPEAKER_03]: I graduated from high school.

[00:01:53] [SPEAKER_03]: I moved to Salt Lake City.

[00:01:54] [SPEAKER_03]: That's where if you want to be a professional snowboarder, Salt Lake City is a place

[00:01:57] [SPEAKER_03]: to be.

[00:01:59] [SPEAKER_03]: And I lived there and I had a route awakening.

[00:02:01] [SPEAKER_03]: Thought I'd be a professional within a year or two and then they're taken four years before

[00:02:05] [SPEAKER_03]: I actually had a little time in my first deal with a actual both a brand.

[00:02:10] [SPEAKER_02]: So yeah, what did you probably started making tons of money from day one?

[00:02:14] [SPEAKER_02]: Is a professional snowboarder, right?

[00:02:15] [SPEAKER_02]: Yeah, very little.

[00:02:17] [SPEAKER_03]: Yeah, it was a slow process moving up.

[00:02:20] [SPEAKER_03]: So and never, you never actually make a ton of money as a professional snowboarder.

[00:02:24] [SPEAKER_03]: I bet I shouldn't say it.

[00:02:25] [SPEAKER_03]: It depends what you think the ton is, but you're not making like professional football

[00:02:28] [SPEAKER_03]: and basketball money.

[00:02:29] [SPEAKER_03]: You're making 500 million a year if you're lucky and you know, how long I'm at last

[00:02:34] [SPEAKER_03]: unknown for sure depends on, you know, your, you're like your career.

[00:02:38] [SPEAKER_03]: But, and it's a, yeah, having a, a good run at some contest, I want to, went to the

[00:02:44] [SPEAKER_03]: ask an open.

[00:02:45] [SPEAKER_03]: I couldn't go to the, this is a kind of good story for you.

[00:02:47] [SPEAKER_03]: I couldn't go to the contest because I'm the money, but my buddy who believed that

[00:02:51] [SPEAKER_03]: I could do well was like, I'll drive you there.

[00:02:53] [SPEAKER_03]: I'll pay for your entry fee and ended up paying for me to be in and it was an open.

[00:02:57] [SPEAKER_03]: Anyone doesn't open can go you pay two, three or box and you can get in.

[00:03:01] [SPEAKER_03]: Yeah, it's two runs and if you do well, you, you know, podium and then you're winning.

[00:03:06] [SPEAKER_03]: So that was the beginning of, yeah, of my career.

[00:03:08] [SPEAKER_03]: They were like 250 guys out there and from that point on, I ended up having a pretty healthy

[00:03:13] [SPEAKER_03]: snowboarding career almost 15 years and it was just fun.

[00:03:17] [SPEAKER_02]: And so what, what it has to do with snowboarding because I know there's all different

[00:03:20] [SPEAKER_02]: types of snowboarding where you, one of these small, um, snowboarders or the trick guys

[00:03:24] [SPEAKER_02]: or the halfpipe guys.

[00:03:26] [SPEAKER_03]: Yep, I was in slope style first, which is like jumps and handrails.

[00:03:31] [SPEAKER_03]: Um, then I transitioned more to urban and I shouldn't say a transition.

[00:03:35] [SPEAKER_03]: I always was an urban rider coming out of Minnesota.

[00:03:38] [SPEAKER_03]: That's what we had.

[00:03:39] [SPEAKER_03]: That's what we got here.

[00:03:39] [SPEAKER_03]: You know, grew up riding.

[00:03:41] [SPEAKER_03]: So I was always an urban guy and X games came out with an event called Real Snow.

[00:03:45] [SPEAKER_03]: And there was an event in dirt bike called Real Motto, real street for skateboarding and

[00:03:49] [SPEAKER_03]: real snow for snowboarding.

[00:03:51] [SPEAKER_03]: And I ended up being invited to that the first year it came out and I was a part of

[00:03:54] [SPEAKER_03]: that six times.

[00:03:55] [SPEAKER_03]: So as an X games six times, you've just got to, I'd say the pinnacle of the career.

[00:04:00] [SPEAKER_03]: Uh, you know, yeah, ended up winning a couple of gold medals, a couple silver medals.

[00:04:03] [SPEAKER_03]: And that was, that was kind of the peak.

[00:04:06] [SPEAKER_02]: So so from there were you, like, were you thinking what am I going to do with this is all over?

[00:04:12] [SPEAKER_02]: Clearly you see guys around you that, I mean, you don't do this in the 40s and 50s.

[00:04:16] [SPEAKER_02]: Obviously.

[00:04:17] [SPEAKER_02]: So there's got to be another plan.

[00:04:19] [SPEAKER_02]: Did you start thinking about halfway through the 15 years or what did that look like?

[00:04:23] [SPEAKER_03]: Yeah, no, yeah, but by year five is pretty much terrified of it.

[00:04:27] [SPEAKER_03]: And they my career was like, I saw my buddies who became, you know, growing up in Minnesota.

[00:04:32] [SPEAKER_03]: They were my heroes.

[00:04:33] [SPEAKER_03]: And then I moved to Salt Lake City and was around enough.

[00:04:35] [SPEAKER_03]: I started to get to know some of these guys.

[00:04:37] [SPEAKER_03]: Yeah, I sort of arrived and traveled with them and they became like friends.

[00:04:40] [SPEAKER_03]: You know, and they were five to 10 years ahead of me.

[00:04:43] [SPEAKER_03]: And their careers were winding down and I'd hear the stories right.

[00:04:45] [SPEAKER_03]: See it firsthand and it scared the crap out of me.

[00:04:48] [SPEAKER_03]: You know, people losing their homes, drug addictions.

[00:04:51] [SPEAKER_03]: I mean, one guy he ended up getting paid 2 million bucks, travel the world for two years with his buddies

[00:04:55] [SPEAKER_03]: party and came back with tattoos, all over his face and said money, room to me.

[00:04:59] [SPEAKER_03]: So seeing that, you know, first hand, I was like, I just don't want to have that be me.

[00:05:04] [SPEAKER_03]: So I started reading every book I could get my hands on financially speaking sort of listen to a bunch

[00:05:09] [SPEAKER_03]: of different podcasts and to go into a bunch of different, you know, real estate investing seminars

[00:05:15] [SPEAKER_03]: throughout the country.

[00:05:16] [SPEAKER_03]: And I would do this during my free time in the summer.

[00:05:18] [SPEAKER_03]: You know, it was not much of a summer.

[00:05:21] [SPEAKER_03]: Sure.

[00:05:21] [SPEAKER_03]: So I started doing that and then, you know, one thing led to another and eventually ended

[00:05:24] [SPEAKER_03]: up buying my first dueplex in Longview, Washington and then about a nineplex in Chalice,

[00:05:30] [SPEAKER_01]: Washington.

[00:05:32] [SPEAKER_01]: Are you interested in real estate investing but don't know where to get started or think

[00:05:36] [SPEAKER_01]: you don't have the time or money?

[00:05:38] [SPEAKER_01]: Are you stuck in your W2 because the golden handcuffs make it hard to walk away?

[00:05:42] [SPEAKER_01]: If this sounds like you, check out impactequity.net and schedule some time to talk

[00:05:47] [SPEAKER_01]: with the founder Randy Smith.

[00:05:49] [SPEAKER_01]: Randy went from Massive income to leaving his W2 through passive income and he can help

[00:05:54] [SPEAKER_01]: you do the same.

[00:05:56] [SPEAKER_01]: WWW.impactequity.net.

[00:05:59] [SPEAKER_02]: Okay, so why isn't that right?

[00:06:01] [SPEAKER_02]: You ended up moving up to Washington from Salt Lake.

[00:06:04] [SPEAKER_02]: Yeah, very good.

[00:06:05] [SPEAKER_02]: So you started small, but you didn't actually stay small for long.

[00:06:09] [SPEAKER_02]: So from 2 to 9 and most people start smaller than that.

[00:06:13] [SPEAKER_02]: So were you thinking from the beginning that you were going to try to create a big portfolio

[00:06:18] [SPEAKER_02]: or was there some strategy behind that?

[00:06:21] [SPEAKER_03]: I don't really think that no, I didn't have that as like,

[00:06:25] [SPEAKER_03]: hey, let's go and start buying bigger property.

[00:06:27] [SPEAKER_03]: It was really just how can I create passive income?

[00:06:30] [SPEAKER_03]: What can I do to somehow create some residual income from different assets?

[00:06:35] [SPEAKER_03]: That would come in no matter what.

[00:06:37] [SPEAKER_03]: So when the snowboard and career ended, not if it went, right?

[00:06:40] [SPEAKER_03]: Guarantee coming to a close.

[00:06:41] [SPEAKER_03]: What can I do?

[00:06:42] [SPEAKER_03]: So I'm not back being a buster at TJ Friday or working a blockbuster.

[00:06:48] [SPEAKER_03]: So that was really what it was is multiple streams of income.

[00:06:53] [SPEAKER_03]: And what can I do to reduce my tax build legally through depreciation?

[00:06:58] [SPEAKER_03]: So those were the two real motivators for me is

[00:07:02] [SPEAKER_03]: to minimize paying the less in tax for a lot less in tax legally.

[00:07:06] [SPEAKER_03]: And how can I create streams of income so that one of my career ended?

[00:07:09] [SPEAKER_03]: I wasn't back to zero.

[00:07:11] [SPEAKER_02]: Interesting.

[00:07:11] [SPEAKER_02]: So now were you able to kind of blend real estate with your career,

[00:07:17] [SPEAKER_02]: where you were a particular advantage of the tax benefits with the earnings

[00:07:20] [SPEAKER_02]: that you might have been making?

[00:07:21] [SPEAKER_02]: Is no wording as well?

[00:07:23] [SPEAKER_03]: Yeah.

[00:07:24] [SPEAKER_03]: Being I got married at 22 or 23 or somewhat young for being a snowboard.

[00:07:30] [SPEAKER_03]: My wife was also a matter at a restaurant and she just didn't like work in there.

[00:07:36] [SPEAKER_03]: So she ended up being a real estate professional for us for a few years where she spent the time.

[00:07:41] [SPEAKER_03]: Yeah, working on the properties and managing and helping with the data

[00:07:45] [SPEAKER_03]: deactivity and the accounting she actually did by accounting for us with the

[00:07:49] [SPEAKER_03]: the bookkeeping which is kind of funny to think back to.

[00:07:52] [SPEAKER_03]: Sure.

[00:07:53] [SPEAKER_03]: Yeah.

[00:07:53] [SPEAKER_03]: So that's how we linked that up.

[00:07:56] [SPEAKER_03]: Yeah, one thing just led to another and after after buying the nine plaques I ended up buying a 24-unit deal.

[00:08:03] [SPEAKER_03]: And then about that time I now business partner,

[00:08:06] [SPEAKER_03]: the lifetime pretty much lifelong friend.

[00:08:08] [SPEAKER_03]: He was a snowboarder as well.

[00:08:09] [SPEAKER_03]: He went to college and he and his wife came out and were like hey, what you've been up to lately

[00:08:14] [SPEAKER_03]: and I said I'm buying an apartment and he was in the process of buying single family home to

[00:08:18] [SPEAKER_03]: Bunch.

[00:08:18] [SPEAKER_03]: He was running by like 100 single family homes by the time it was 30.

[00:08:22] [SPEAKER_03]: And the Jesse we buy an apartment together and we bought one and then we bought it

[00:08:25] [SPEAKER_03]: another and then we ended up starting our company a few years later.

[00:08:28] [SPEAKER_02]: Fantastic.

[00:08:29] [SPEAKER_02]: Okay, so granite granite terrace was was born.

[00:08:32] [SPEAKER_02]: You and a buddy from like from high school from college or when did you guys?

[00:08:37] [SPEAKER_02]: Yeah, yeah, I see.

[00:08:38] [SPEAKER_03]: But neighboring high school but we met snowboarding at the local resort.

[00:08:41] [SPEAKER_03]: He was a snowboarder as well.

[00:08:43] [SPEAKER_02]: Okay, yeah, very cool.

[00:08:44] [SPEAKER_02]: Yeah, so coming from northern Michigan, I didn't even realize first of all that there was

[00:08:48] [SPEAKER_02]: that there was a lot of ski in Minnesota.

[00:08:50] [SPEAKER_02]: A lot of people don't realize they're skiing in Michigan either.

[00:08:52] [SPEAKER_02]: And they're I mean comparatively to what we see out here.

[00:08:55] [SPEAKER_02]: It's not really skiing but that's interesting to hear that you came from that area.

[00:09:02] [SPEAKER_02]: So very good.

[00:09:03] [SPEAKER_02]: So yeah, so very interesting.

[00:09:04] [SPEAKER_02]: So you guys both had real estate ambitions and we're both going to kind of

[00:09:09] [SPEAKER_02]: down your different path.

[00:09:11] [SPEAKER_02]: A lot of folks go down that path as single family.

[00:09:13] [SPEAKER_02]: I was the same way.

[00:09:14] [SPEAKER_02]: I decided I was going to need a hundred single family homes.

[00:09:17] [SPEAKER_02]: Either that or 50 paid off to kind of support the lifestyle that I wanted.

[00:09:21] [SPEAKER_02]: And the thought of doing that after doing just a handful of them, um, you figure out pretty

[00:09:26] [SPEAKER_02]: quickly that that is not a way to scale.

[00:09:29] [SPEAKER_02]: So so you guys decided to come together.

[00:09:32] [SPEAKER_02]: Did you go out and buy a big property to start that business or did you kind of stay in

[00:09:37] [SPEAKER_02]: that middle-rich?

[00:09:38] [SPEAKER_03]: We were in the lower smaller range.

[00:09:40] [SPEAKER_03]: So we've got 20 units.

[00:09:42] [SPEAKER_03]: He myself and one other buddy from my school actually.

[00:09:45] [SPEAKER_03]: Then yeah, then we ended up getting some education on how to actually

[00:09:51] [SPEAKER_03]: complete a syndication, a real syndication and how to raise capital.

[00:09:56] [SPEAKER_03]: And after going through some significant training with that mentor, we started to look at

[00:10:01] [SPEAKER_03]: bigger deals.

[00:10:01] [SPEAKER_03]: We've got a 45-minute deal after that.

[00:10:04] [SPEAKER_03]: That was in River Falls with Wisconsin.

[00:10:06] [SPEAKER_03]: And now it's not sold that deal yet.

[00:10:09] [SPEAKER_03]: And then we ended up buying a larger deal, a hundred or no, 86 units, not much larger.

[00:10:14] [SPEAKER_03]: 86 units in Kleber and Texas, which is our second syndication.

[00:10:17] [SPEAKER_03]: It's first time we raised over a million bucks.

[00:10:19] [SPEAKER_03]: I think it was a $2.1 million raise.

[00:10:22] [SPEAKER_03]: Yeah, I think back to the time just being like, how is this actually going to come

[00:10:26] [SPEAKER_03]: to fruition?

[00:10:27] [SPEAKER_03]: Which is pretty cool.

[00:10:28] [SPEAKER_03]: And then you just kept going from there.

[00:10:31] [SPEAKER_03]: I think after that we ended up buying a 101 unit deal in New Mexico.

[00:10:36] [SPEAKER_03]: And sounds like we're all over the place which would be something for your listeners right now.

[00:10:40] [SPEAKER_03]: I would not do it like that again.

[00:10:42] [SPEAKER_03]: We were at a home-dend on one or two markets and really just got deep in that market

[00:10:47] [SPEAKER_03]: to become an expert in that market.

[00:10:48] [SPEAKER_03]: You're not spending your time traveling and having different management companies and different

[00:10:53] [SPEAKER_03]: vendors and different parts of the world, it just makes it more complicated.

[00:10:57] [SPEAKER_02]: Yeah, yeah, I was going to ask that as well.

[00:10:59] [SPEAKER_02]: So I'm assuming you guys are not property managing these yourself.

[00:11:03] [SPEAKER_02]: You're using third property property management?

[00:11:05] [SPEAKER_03]: Yeah, that's correct.

[00:11:06] [SPEAKER_03]: We use third-party management.

[00:11:07] [SPEAKER_03]: We would do the asset management with them.

[00:11:10] [SPEAKER_03]: And it's somewhat time intensive as well.

[00:11:13] [SPEAKER_03]: You know, we'll buy a deal.

[00:11:14] [SPEAKER_03]: We're over here creating a vision.

[00:11:17] [SPEAKER_03]: We're creating a blueprint if you will.

[00:11:19] [SPEAKER_03]: Of where we're buying the deal and how we're going to move the needle with a value at play.

[00:11:24] [SPEAKER_03]: Yeah, we're building that out before we close.

[00:11:27] [SPEAKER_03]: And we're building that based off the debt based off of the VALCAPX budget.

[00:11:31] [SPEAKER_03]: And then when we close it's our job to educate and assist the property management company

[00:11:38] [SPEAKER_03]: to execute the play as we see fit based off our value as strategy.

[00:11:41] [SPEAKER_03]: No, we're not doing the day-to-day management.

[00:11:44] [SPEAKER_03]: But we are overseeing the big cap-ax jobs and just kind of the KPI, you know, weekly, weekly overview of the deal.

[00:11:52] [SPEAKER_02]: So now I know a lot of times generally we see partnerships come together.

[00:11:55] [SPEAKER_02]: One might focus on acquisitions.

[00:11:57] [SPEAKER_02]: One might be the asset manager.

[00:11:59] [SPEAKER_02]: Do you guys do the at the responsibilities amongst yourself or are you both involved?

[00:12:03] [SPEAKER_02]: Pretty heavily with all aspects?

[00:12:05] [SPEAKER_03]: Yeah, we've sent in the last six months have really split in two roles.

[00:12:10] [SPEAKER_03]: And it just kind of ended up happening due to our interests and how we behave as the business

[00:12:17] [SPEAKER_03]: grew.

[00:12:18] [SPEAKER_03]: I'm more of what do we have take care of it?

[00:12:22] [SPEAKER_03]: I feel is a sense of like, my gosh, we have it take care of it protected.

[00:12:27] [SPEAKER_03]: And I feel like Mike's more of a blazer of like let's keep going and bring in some new product.

[00:12:32] [SPEAKER_03]: And so fit pretty well.

[00:12:33] [SPEAKER_03]: So Mike's been more of the acquisition.

[00:12:35] [SPEAKER_03]: Finding the next deal with that part of our company.

[00:12:37] [SPEAKER_03]: I've been working more with our company of what do we got?

[00:12:40] [SPEAKER_03]: How do we take care of it?

[00:12:41] [SPEAKER_03]: How do we, you know, execute our business plan some of that?

[00:12:44] [SPEAKER_03]: So more asset management on the day to day,

[00:12:46] [SPEAKER_03]: more acquisitions for Mike.

[00:12:48] [SPEAKER_02]: Okay.

[00:12:49] [SPEAKER_02]: And then so in what's the what's the team look like today?

[00:12:52] [SPEAKER_02]: Is it just the two of you guys or is there a broader team behind granditaires?

[00:12:57] [SPEAKER_03]: Yes.

[00:12:57] [SPEAKER_03]: So we have a full-time account.

[00:12:59] [SPEAKER_03]: We have one full-time asset manager.

[00:13:02] [SPEAKER_03]: We have one full-time director of relations for investors.

[00:13:06] [SPEAKER_03]: We have one full-time business developer development officer.

[00:13:10] [SPEAKER_03]: And we have a couple VAs and the Philippines that help with the back office work.

[00:13:15] [SPEAKER_03]: And then we have one gentleman out of college who's kind of an intern who's helping out with some

[00:13:20] [SPEAKER_03]: marketing.

[00:13:21] [SPEAKER_03]: So that's kind of our setup right this moment.

[00:13:23] [SPEAKER_03]: We are actually looking to hire a few more people here in the next six, 12 months.

[00:13:28] [SPEAKER_03]: Okay.

[00:13:29] [SPEAKER_03]: But we're relatively small still.

[00:13:31] [SPEAKER_03]: Okay.

[00:13:32] [SPEAKER_02]: Yeah, very good.

[00:13:32] [SPEAKER_02]: So you guys were buying your buying assets kind of all over the place in

[00:13:37] [SPEAKER_02]: center like Wisconsin to have you backscaled the Texas.

[00:13:41] [SPEAKER_02]: And it seems like he's home din on national and DFW.

[00:13:44] [SPEAKER_02]: What was it about those two markets that really drew your attention?

[00:13:49] [SPEAKER_03]: Yeah.

[00:13:50] [SPEAKER_03]: Exactly.

[00:13:50] [SPEAKER_03]: Yes, so Dallas Fort Worth and Nashville.

[00:13:52] [SPEAKER_03]: They're the only two markets we're looking to buy in right now.

[00:13:55] [SPEAKER_03]: Number one, both markets that are easy to get to.

[00:13:59] [SPEAKER_03]: We don't mind visiting.

[00:13:59] [SPEAKER_03]: We like to visit, you know, where they're a lot.

[00:14:02] [SPEAKER_03]: We're in Dallas a lot already just with the relationships we have.

[00:14:07] [SPEAKER_03]: Nashville's great city to visit.

[00:14:09] [SPEAKER_03]: Great to get to.

[00:14:11] [SPEAKER_03]: So really that was the beginning of it.

[00:14:13] [SPEAKER_03]: And then after that, you know, landlord friendly business friendly states.

[00:14:18] [SPEAKER_03]: Great job growth, massive population growth and just overall

[00:14:24] [SPEAKER_03]: in certain pockets and really strong demand for apartments that,

[00:14:29] [SPEAKER_03]: you know, can use some good value added strategy.

[00:14:32] [SPEAKER_03]: So it fits our model really well.

[00:14:34] [SPEAKER_02]: Yeah, I like I like that you say that you shared these areas that you like to visit.

[00:14:39] [SPEAKER_02]: My wife and I when we started buying, we bought in Kansas City in Atlanta,

[00:14:43] [SPEAKER_02]: we just we really enjoyed Atlanta.

[00:14:45] [SPEAKER_02]: It helped that, you know, all the metrics were pointing to a thriving market there.

[00:14:50] [SPEAKER_02]: But if you're going to be traveling to these markets over and over and over and over again,

[00:14:55] [SPEAKER_02]: it makes sense to be here.

[00:14:56] [SPEAKER_02]: It is where you want to be hanging out, especially if, you know, yeah, I mean,

[00:15:01] [SPEAKER_02]: these are lifestyle businesses necessarily but certainly you want to enjoy

[00:15:06] [SPEAKER_02]: where you're visiting while you're doing the work.

[00:15:07] [SPEAKER_02]: So yeah, thanks for sharing that.

[00:15:10] [SPEAKER_02]: I've personally invested quite a bit in Dallas and Nashville, I've invested in one deal.

[00:15:17] [SPEAKER_02]: And would like to do more there as well because just all of the metrics are pointing

[00:15:21] [SPEAKER_02]: in the right direction for everything there.

[00:15:24] [SPEAKER_02]: So very good.

[00:15:24] [SPEAKER_02]: Yeah, you know.

[00:15:25] [SPEAKER_02]: So let's see here over, so you're 3,000 doors now, which is a significant, obviously,

[00:15:33] [SPEAKER_02]: organization that should built.

[00:15:35] [SPEAKER_02]: And rather lean it sounds like from the headcount standpoint.

[00:15:40] [SPEAKER_02]: When you're looking at the current point for like you are a little more spread out.

[00:15:44] [SPEAKER_02]: So I'm curious when been through some challenges over the last couple of years with interest rates

[00:15:49] [SPEAKER_02]: and, you know, expenses just exploding, how is the current portfolio performing today?

[00:15:55] [SPEAKER_02]: Performing is planned or there, you know, some other nuances there that you hear to share.

[00:16:00] [SPEAKER_03]: Yeah, biggest lessons for sure are, you know, with your debt.

[00:16:05] [SPEAKER_03]: What debt are you going to be using?

[00:16:07] [SPEAKER_03]: And do you have the pockets to withstand what we've gone through, which you got into bridge

[00:16:13] [SPEAKER_03]: debt variable rate debt, those interest rates have moved massively.

[00:16:18] [SPEAKER_03]: And if you bought rate caps and they're tight enough spread,

[00:16:21] [SPEAKER_03]: you're probably just fine as long as you've got deep enough deep enough pockets.

[00:16:24] [SPEAKER_03]: He keep buying, keep extending as long as the lender will work with you.

[00:16:28] [SPEAKER_03]: But that's been our, I would say my biggest lesson in the last two years is just,

[00:16:32] [SPEAKER_03]: you know, what's your model and where are you in the real estate cycle?

[00:16:36] [SPEAKER_03]: And if you don't know where you are about and I'm not saying you're going to know exact.

[00:16:39] [SPEAKER_03]: Like this is exactly where we are on the real estate cycle.

[00:16:42] [SPEAKER_03]: Same now.

[00:16:43] [SPEAKER_03]: But you're saying you have a good understanding of based off of the US real estate cycle.

[00:16:47] [SPEAKER_03]: Where are we and what might be coming?

[00:16:49] [SPEAKER_03]: And then set your debt up based off of that.

[00:16:51] [SPEAKER_03]: That's at least how we've done it, that's how you've, that's our new principle,

[00:16:54] [SPEAKER_03]: I guess model.

[00:16:56] [SPEAKER_03]: And you know, we like five and seven year debt, seven years pretty much ideal in our book.

[00:17:00] [SPEAKER_03]: And yeah, you might hold the longer.

[00:17:01] [SPEAKER_03]: You may have a little bit more of a prepayment penalty.

[00:17:04] [SPEAKER_03]: But it just helps me sleep better at night, you know?

[00:17:07] [SPEAKER_03]: And fiduciary role like we're in and where we've got hundreds and hundreds of investors.

[00:17:12] [SPEAKER_03]: And like 125 million of capital that we're managing,

[00:17:16] [SPEAKER_03]: that's just what makes me feel good.

[00:17:18] [SPEAKER_03]: And I would always say that, you know, I got into the multi-family game.

[00:17:23] [SPEAKER_03]: Like I said in the beginning for passive income and appreciation.

[00:17:26] [SPEAKER_03]: And nothing's really changed.

[00:17:27] [SPEAKER_03]: I'm a long passive income and the flip idea of in and out in two years or three years can be profitable.

[00:17:34] [SPEAKER_03]: Sure if you hit the market right, you get the debt right.

[00:17:36] [SPEAKER_03]: And you've got to upwards cycle.

[00:17:38] [SPEAKER_03]: You could potentially move the deals pretty quickly.

[00:17:41] [SPEAKER_03]: But our plays a little longer term.

[00:17:43] [SPEAKER_03]: Think five, seven years.

[00:17:45] [SPEAKER_03]: You know, if you get a pop early and you've got to pre the pay the prepayment penalty.

[00:17:48] [SPEAKER_03]: Because someone's going to overpay for your deal.

[00:17:50] [SPEAKER_03]: Oh, good.

[00:17:50] [SPEAKER_03]: You can read, readjust your capital at that time.

[00:17:53] [SPEAKER_03]: But what really ends up happening is that you're constantly this in transaction or every deal.

[00:17:57] [SPEAKER_03]: You buy a deal.

[00:17:58] [SPEAKER_03]: You flip it.

[00:17:58] [SPEAKER_03]: Now you got a bunch of cash which is draped.

[00:18:00] [SPEAKER_03]: Not all investors are happy about that by the way.

[00:18:03] [SPEAKER_03]: And you've got to find something and you got to go straight back to the drawing board.

[00:18:07] [SPEAKER_03]: So, you know, a little slow it down a little bit was be my perspective.

[00:18:11] [SPEAKER_03]: And everyone did so well in 2020 and 2021 into early 2022 because the cycle was peaking.

[00:18:16] [SPEAKER_03]: And every thought that their genius isn't really, it wasn't that your genius.

[00:18:19] [SPEAKER_03]: It was that the market was gone into a bubble.

[00:18:22] [SPEAKER_03]: And when it was bubbling, you thought you were smart when really you were just in the right

[00:18:25] [SPEAKER_03]: part of cycle timing.

[00:18:27] [SPEAKER_03]: So I think that'd be the biggest lesson and yeah, coming back to like location.

[00:18:32] [SPEAKER_03]: We bought a deal in New Mexico in a location that's oil driven and gosh,

[00:18:39] [SPEAKER_03]: the one oil is good that the oil is doing good.

[00:18:41] [SPEAKER_03]: Like right now the deal is doing good because oil is in steady demand.

[00:18:44] [SPEAKER_03]: And it's great spot.

[00:18:46] [SPEAKER_03]: But when we bought it went through COVID, I mean, our occupancy went from 100% occupied to, you know,

[00:18:51] [SPEAKER_03]: these major rent bumps to 50% occupied.

[00:18:54] [SPEAKER_03]: And so yeah, you just have to understand the different markets will dictate what your

[00:19:02] [SPEAKER_03]: asset will do and we can only control the asset.

[00:19:05] [SPEAKER_03]: I can't control the sub market.

[00:19:06] [SPEAKER_03]: And you hear that all the time, that's just a truth.

[00:19:09] [SPEAKER_03]: So just do your day and due diligence on the sub market and make

[00:19:12] [SPEAKER_03]: sure you understand what jobs will be there in a recession and who your demographic profile is

[00:19:19] [SPEAKER_03]: living at your apartments and what will happen during a recession.

[00:19:22] [SPEAKER_03]: And it's been amazing to watch, you know, over the last five, seven years, it's been

[00:19:26] [SPEAKER_03]: we've had a front row seat because we do weekly calls on every single deal we own in every part of

[00:19:30] [SPEAKER_03]: the country.

[00:19:31] [SPEAKER_03]: Sure.

[00:19:32] [SPEAKER_03]: You could see during COVID, yeah, our new Mexico deal flopped while meanwhile some of our

[00:19:37] [SPEAKER_03]: Dallas deals went bananas.

[00:19:39] [SPEAKER_03]: And so it's just location market and that reveals different and you just got to know

[00:19:42] [SPEAKER_03]: your market and you got to know what's coming.

[00:19:45] [SPEAKER_02]: Yeah, I love it.

[00:19:45] [SPEAKER_02]: I heard somebody at another podcast say let's, let's be careful not to confuse

[00:19:49] [SPEAKER_02]: brains with a bear market.

[00:19:52] [SPEAKER_02]: And you know, there were a lot of people out there that were walking around with really,

[00:19:55] [SPEAKER_02]: really big egos because they happen to be at the right place at the right time.

[00:19:59] [SPEAKER_02]: But, you know, as they say is the times go out, we'll see whose who's swimming without,

[00:20:04] [SPEAKER_02]: without swim trunks essentially.

[00:20:06] [SPEAKER_02]: And there's, there's a lot of folks out there that are doing that.

[00:20:09] [SPEAKER_02]: So yeah.

[00:20:09] [SPEAKER_02]: So very good.

[00:20:11] [SPEAKER_02]: Yeah, I think it's an awesome journey.

[00:20:13] [SPEAKER_02]: How many years have you guys been in the space?

[00:20:15] [SPEAKER_02]: When did you start buying multi-family yourself?

[00:20:18] [SPEAKER_03]: So I bought my first deal in 2012, 2013.

[00:20:22] [SPEAKER_03]: But our company was originated in 2017.

[00:20:26] [SPEAKER_03]: So we've been after pretty heavily since 2017 and, you know, looking back, you

[00:20:32] [SPEAKER_03]: could have been great, supos buying in 2021 and to early 2022.

[00:20:35] [SPEAKER_03]: And for exit, most deals at that time.

[00:20:39] [SPEAKER_03]: And then now you're coming back into the market anytime now.

[00:20:41] [SPEAKER_03]: I think you're in a pretty safe spot.

[00:20:43] [SPEAKER_03]: That's reset.

[00:20:44] [SPEAKER_03]: You know, cap rates are high.

[00:20:46] [SPEAKER_03]: You're buying in a totally different market.

[00:20:48] [SPEAKER_03]: And that's something that I think listeners need to really hear right now is that if you're

[00:20:52] [SPEAKER_03]: investing today, looking at how your deals were two years ago, you're missing the boat,

[00:20:56] [SPEAKER_03]: you can't be doing that.

[00:20:57] [SPEAKER_03]: You know, and you're, really, the scary time to be investing was in 2021 and 22, which

[00:21:02] [SPEAKER_03]: is when everybody was having this huge capital gains because these deals were turning.

[00:21:06] [SPEAKER_03]: So they have throwing everything back in, expecting it to continue to go.

[00:21:09] [SPEAKER_03]: That was the most dangerous time to be buying.

[00:21:12] [SPEAKER_03]: Period.

[00:21:12] [SPEAKER_03]: A question about it.

[00:21:13] [SPEAKER_03]: People's Peter Thickel.

[00:21:15] [SPEAKER_03]: So as things have been resetting and insurcerated going back up.

[00:21:18] [SPEAKER_03]: Now if you think insurcerates are going to continue to rise from here quite significantly,

[00:21:22] [SPEAKER_03]: then you may want to hold.

[00:21:24] [SPEAKER_03]: But if you think rates are getting to the top, ish, and you see economists are going to slow

[00:21:27] [SPEAKER_03]: down and job reports or certain come in like we're seeing.

[00:21:31] [SPEAKER_03]: It's likely that, you know, the bottom or the peak of rates is likely in and cap rates

[00:21:36] [SPEAKER_03]: have had adjusted pretty significantly already.

[00:21:38] [SPEAKER_03]: They may do a little bit more over the next three to six months, maybe a year.

[00:21:42] [SPEAKER_03]: But I think you're pretty dang close to be able to open up the, you know, back

[00:21:45] [SPEAKER_03]: the truck and start buying.

[00:21:47] [SPEAKER_02]: So what are your thoughts on?

[00:21:48] [SPEAKER_02]: I know everybody's talking about, you know, the Fed's potentially going to be dropping

[00:21:53] [SPEAKER_02]: the interest rates 25 to 50 basis points.

[00:21:57] [SPEAKER_02]: Obviously that ties to 10 year in the loans that that you guys can be getting on these

[00:22:03] [SPEAKER_02]: assets.

[00:22:04] [SPEAKER_02]: But a lot of people don't talk about the fact like when the Fed actually starts to cut

[00:22:08] [SPEAKER_02]: rates generally, that's because bad things are going on in the economy, which have

[00:22:12] [SPEAKER_02]: so cascading effects into multi-family as well.

[00:22:16] [SPEAKER_02]: So I'm curious what are your thoughts?

[00:22:18] [SPEAKER_02]: Well, we're all hoping to see the rates come down for refinances, but what kind of consequences

[00:22:22] [SPEAKER_02]: is kid we see because of what's driving the need to drop the rates.

[00:22:27] [SPEAKER_03]: Now, you get all the pen massively for location and who your demographic is.

[00:22:33] [SPEAKER_03]: You know, and are you in an A class deal with a bunch of product coming online right now?

[00:22:37] [SPEAKER_03]: Potentially could affect your A class deals.

[00:22:40] [SPEAKER_03]: It just depends.

[00:22:40] [SPEAKER_03]: Real estate is local, you know, to say a blanket across the country of this is how it's

[00:22:45] [SPEAKER_03]: going to be really difficult in possible in my book to be able to say yeah, that's how

[00:22:50] [SPEAKER_03]: it's going to go.

[00:22:50] [SPEAKER_03]: When I look at our portfolio, you know, I look at deal by deal basis.

[00:22:54] [SPEAKER_03]: Who's our demographic?

[00:22:56] [SPEAKER_03]: What's the occupancy of the sub market and what are the main jobs?

[00:23:00] [SPEAKER_03]: I love that sub market.

[00:23:01] [SPEAKER_03]: And if I feel and we can see that everyone's 96% occupied, the Lincoln sees low and they're

[00:23:07] [SPEAKER_03]: still handling rent bumps right now.

[00:23:09] [SPEAKER_03]: I would hope over the next 12 to 24 months as we see whatever comes and, you know, construction

[00:23:14] [SPEAKER_03]: starts to pick back up and building starts happening and which is the only thing I could

[00:23:19] [SPEAKER_03]: see happening because we're going to have this leg come right all this new product

[00:23:22] [SPEAKER_03]: up built and it's coming online.

[00:23:24] [SPEAKER_03]: And then there's not much new product.

[00:23:25] [SPEAKER_03]: So that's just the cycle.

[00:23:27] [SPEAKER_03]: And when that cycle happens, did you underwrite occupancy and the Lincoln see correct

[00:23:32] [SPEAKER_03]: for pull back?

[00:23:34] [SPEAKER_03]: Do you have enough cash if you have some lean months or lean year to get you through it

[00:23:38] [SPEAKER_03]: before you can start raising rent?

[00:23:40] [SPEAKER_03]: So biggest thing for me is your dang sub market.

[00:23:42] [SPEAKER_03]: What's that occupancy like?

[00:23:44] [SPEAKER_03]: Who's your demographic and then what's your debt leverage?

[00:23:47] [SPEAKER_02]: Yeah.

[00:23:47] [SPEAKER_02]: And I think the demographic thing is such a big thing.

[00:23:49] [SPEAKER_02]: You're we're seeing all of the headlines about layoffs now, but layoffs are occurring

[00:23:53] [SPEAKER_02]: with large Fortune 100 200 companies they're occurring in technology.

[00:23:57] [SPEAKER_02]: They're probably not renters in your B minus maybe even B asset classes.

[00:24:04] [SPEAKER_02]: So you know, I think it's possible that those people are getting hit now who knows what

[00:24:08] [SPEAKER_02]: that'll bring in the coming months if we see employment continue to weaken.

[00:24:13] [SPEAKER_02]: But yeah, I think in that B class value head space that is that is the smart place

[00:24:18] [SPEAKER_02]: to be the A's are getting hit or seen it.

[00:24:21] [SPEAKER_02]: So okay.

[00:24:22] [SPEAKER_02]: So you guys are I suspect in based on what you shared here today.

[00:24:26] [SPEAKER_02]: You guys are in acquisition mode.

[00:24:28] [SPEAKER_02]: So what do you guys see now to the market place?

[00:24:30] [SPEAKER_02]: Are you starting to see some distressed properties or distressed operators?

[00:24:35] [SPEAKER_02]: Hit the market people have been talking about this for two years.

[00:24:38] [SPEAKER_02]: When's it going to come?

[00:24:39] [SPEAKER_02]: You know, our bank still extending a pretending or we start to see.

[00:24:42] [SPEAKER_02]: So stuff at the market.

[00:24:44] [SPEAKER_03]: For my perspective, you're seeing all of it already.

[00:24:47] [SPEAKER_03]: You know, you were buying from people who need to get out of bridge debt or you're

[00:24:50] [SPEAKER_03]: getting broker calls saying hey, they'll take it for the debt.

[00:24:53] [SPEAKER_03]: You know, like why the equity just take it for what the debt is and you're getting that

[00:24:57] [SPEAKER_03]: stuff coming online and that's in the hey, we'll take it for less than the debt even.

[00:25:00] [SPEAKER_03]: So if you're seeing that already in the market and you've got huge firms coming in and

[00:25:05] [SPEAKER_03]: buy a massive massive portfolios, black rock I just read put 10 billion in but was it was

[00:25:12] [SPEAKER_03]: 76 apartment complex is so you know, the window for buying is open if you've got a reputation and

[00:25:19] [SPEAKER_03]: if you can be a firm that can close deals the challenge most people have right now.

[00:25:23] [SPEAKER_03]: I from my perspective and what I'm hearing is just raising the equity, which is too bad because

[00:25:28] [SPEAKER_03]: you know, for from what we're seeing when we're raising capital we just got done raising capital

[00:25:31] [SPEAKER_03]: our most recent deal we're closing on next week is that a lot of the folks are investing now are

[00:25:38] [SPEAKER_03]: people who are wealthier and the mom and pop folks who were investing, you know because they had a

[00:25:43] [SPEAKER_03]: bunch of deals turning now around the sidelines so it's it's hard to see a little bit for me coming

[00:25:49] [SPEAKER_03]: from that middle class, you know, where I grew up is that the people who have extra cash now

[00:25:55] [SPEAKER_03]: or the ones who are getting into some of but I think maybe the best deals you'll see over the next

[00:26:00] [SPEAKER_03]: you know three to five years. So but doesn't mean you can't, you know, have a dealer to turn

[00:26:05] [SPEAKER_03]: in and get in. Oh, it's not it's not going to I only is going to happen quick. It's this real

[00:26:09] [SPEAKER_03]: state's a slow cycle takes a while takes years and just get prepared best you can and just keep

[00:26:15] [SPEAKER_03]: watching and keep getting familiar with the right general partners and pick the right deal and

[00:26:19] [SPEAKER_03]: and get back in and you're ready. So I buy things exciting exciting time. I love the where the

[00:26:24] [SPEAKER_03]: leverage is at. We're not competing with other people buying bridge deck has really difficult right now

[00:26:29] [SPEAKER_03]: with bridge. I haven't looked at a lot of bridge lately but last I heard that rates were

[00:26:34] [SPEAKER_03]: challenging and it was difficult to make numbers work with bridge. So most of it is at

[00:26:38] [SPEAKER_03]: Fanny Freddie debt which is what you know we've been using. Yeah and so I'm curious on that

[00:26:44] [SPEAKER_02]: on the five or seven year, minor standing on the seven the pre payment penalty or the

[00:26:49] [SPEAKER_02]: yield meet in set year four quite often can make sense if the numbers are right because you only have

[00:26:54] [SPEAKER_02]: one year of of yield meet inside believe or pre payment that you got to deal with is that

[00:26:59] [SPEAKER_02]: kind of what you're seeing as well would you agree with that scheme into?

[00:27:01] [SPEAKER_03]: Yeah totally will depend what rates do after you close so you know if you buy and rates drop

[00:27:08] [SPEAKER_03]: your payment pre payment penalty of the yield meet is going to go up and depending on

[00:27:12] [SPEAKER_03]: much time you have. So it all depends I you know going back to what I'm looking for with our

[00:27:19] [SPEAKER_03]: investors and for me is a little longer term play and if you get an early pop because someone's

[00:27:24] [SPEAKER_03]: aggressive and buying and you can handle the pre payment penalty, all good. Part I don't want to

[00:27:29] [SPEAKER_03]: get in and I don't enjoy being in as hey we've got to do a capital call here to extend this or

[00:27:35] [SPEAKER_03]: hey we're going to have to sell early for you know potentially you know just your money back

[00:27:40] [SPEAKER_03]: or a loss. So yeah those are those are the scenarios that I'd rather just be in a position where

[00:27:45] [SPEAKER_03]: you can choose to sell instead of be forced to sell and that means maybe a little less gain on

[00:27:49] [SPEAKER_03]: some deals so be it but you know stay at student clear of the of the I've got to sell now and

[00:27:55] [SPEAKER_02]: I'm in a tough spot. Yeah I think it makes a lot of sense people got really used to those two or three

[00:28:00] [SPEAKER_02]: or turns and that's just not how generally if you take a look historically that's not how people

[00:28:06] [SPEAKER_02]: grow wealth over time. Those are kind of fun situations to be in with them I asked but

[00:28:13] [SPEAKER_02]: a lot of people got burdened that area as well so yeah well very good. Yeah I'm trying to think

[00:28:19] [SPEAKER_02]: your career portfolio seems to be performing well certainly you've had had some challenges with

[00:28:24] [SPEAKER_02]: some assets just like everybody did who bought during that time period but I think you mentioned

[00:28:28] [SPEAKER_02]: something that was really important. Working with operators that have deep pockets that can kind

[00:28:33] [SPEAKER_02]: of weather that storm can be the difference is to whether you see capital calls or whether you

[00:28:37] [SPEAKER_02]: see deals going back or getting put on the market so I think it's really important to work with

[00:28:43] [SPEAKER_02]: folks that have been in the space for some time and certainly yourself being around for a decade

[00:28:48] [SPEAKER_02]: plus that certainly is helped so now you guys are you is there anything that's on the table I know

[00:28:57] [SPEAKER_02]: you're working the five or six beer in us so we can't certainly talk about details but

[00:29:02] [SPEAKER_02]: do you expect to have some new offerings that are coming to the market here soon?

[00:29:06] [SPEAKER_03]: Yeah I hope by before your end we have one more okay only we only have bought one deal this year

[00:29:12] [SPEAKER_03]: which is you know it's just been there's been some challenges to buy or have been

[00:29:17] [SPEAKER_03]: challenges with saying yeah this is something we'll go after or there's a difference of what

[00:29:23] [SPEAKER_03]: fires are willing to pay and sellers are willing to sell that so that gap can be a little bit

[00:29:28] [SPEAKER_03]: challenging to get around right now but I do hope that we have one more before your end and

[00:29:33] [SPEAKER_03]: you know for folks that do want to invest step one as you gotta get to know us you got to be

[00:29:41] [SPEAKER_03]: a personal relationship these are all folks that Mike and I have gotten know or someone on our team has

[00:29:45] [SPEAKER_03]: gotten know that it works at granite towers but you know getting connected with us we can

[00:29:50] [SPEAKER_03]: leave you can listen to our podcast but a phone call or a couple emails just to be understand

[00:29:54] [SPEAKER_03]: who you are and what you're looking to do is is the the safest way to go for sure.

[00:30:00] [SPEAKER_02]: And in transparently the reason the reason data and I actually were talking today

[00:30:05] [SPEAKER_02]: and actually it had previous conversations over last week or two as I was introduced to him

[00:30:09] [SPEAKER_02]: by somebody that I know like and trust so certainly connect with Dan do your own due diligence

[00:30:16] [SPEAKER_02]: but he comes well referred to me which is why I'm trying to build a relationship because I think

[00:30:21] [SPEAKER_02]: there's some option for impact equity to be working with in the future so well Dan this has been

[00:30:27] [SPEAKER_02]: a lot of fun thanks for coming out and allowing us to get to know you a little bit more

[00:30:32] [SPEAKER_02]: yeah I appreciate everything that you shared for sure. Yeah glad to be on I appreciate you

[00:30:36] [SPEAKER_02]: having me again Randy. Awesome well we do have a few questions I like to ask everybody if you

[00:30:41] [SPEAKER_02]: got a few more minutes so we'll run through those real quick and get to know you a little bit more.

[00:30:45] [SPEAKER_02]: That let's go. All right so as you know this podcast is geared towards the new or the newer

[00:30:52] [SPEAKER_02]: pastime investor and we're always trying to educate and inspire the new pastime investor so

[00:30:57] [SPEAKER_02]: are there special educational resources that you would suggest to the newer newer pastime investor

[00:31:04] [SPEAKER_03]: to either start or continue their journey? Yeah there are several you know there's several podcasts

[00:31:12] [SPEAKER_03]: but specifically speaking for a passive investor I would what I would do is I would get to know

[00:31:19] [SPEAKER_03]: some general partners by this through this podcast and I'd start to do research on them

[00:31:25] [SPEAKER_03]: you know and get to know them get to know their track record ask for referrals ask ask for the

[00:31:30] [SPEAKER_03]: folks who've invested with them like how have you done how had how has it been you know what what

[00:31:35] [SPEAKER_03]: has gone well what hasn't gone well and hopefully those referrals will just open up for you

[00:31:40] [SPEAKER_03]: and tell you the truth because that's all you're looking for is a place that takes care of capital

[00:31:44] [SPEAKER_03]: and helps to make it grow. We do have a book on our website at granitarrazacraewoop.com it's the

[00:31:49] [SPEAKER_03]: four steps to successful passive investing it's just a basic thing to be our ideas to be looking at

[00:31:55] [SPEAKER_03]: and yeah again I would I would be all over these podcasts people you're having on randy if you

[00:32:00] [SPEAKER_03]: get to know your listeners get to know you and you you do do diligence on these team members then

[00:32:05] [SPEAKER_03]: like you just said a second ago don't go and do your own do diligence and just see if the track record

[00:32:11] [SPEAKER_03]: lines up with what you're looking for and build that relationship out the biggest thing for sure

[00:32:16] [SPEAKER_03]: is your relationship with these folks and that you've got experience educated good on as people

[00:32:22] [SPEAKER_03]: are doing the best they can nothing's worse than putting your capital and something that

[00:32:26] [SPEAKER_03]: A the market shortage against you now you got some general partner she were doing something illegal

[00:32:29] [SPEAKER_03]: I mean that's just unacceptable unfortunately it does happen in this industry and you've got to

[00:32:34] [SPEAKER_03]: do the due diligence to make sure that your investment through right people.

[00:32:38] [SPEAKER_02]: Yeah I say it's time and time again like get to know the operators that you're working with

[00:32:42] [SPEAKER_02]: spend time with them watch them like overtime consistently anybody can show up for one podcast or

[00:32:49] [SPEAKER_02]: one interview or one presentation but watching people consistently over time they're going to show

[00:32:54] [SPEAKER_02]: their true self which which is always the best way I think so yeah another point that I thought

[00:33:01] [SPEAKER_03]: of as you're talking randy is you can get on our mailing list or I'm sure several other folks and

[00:33:06] [SPEAKER_03]: you can watch a few of their deals like you don't have to invest right out of the gate you can watch

[00:33:10] [SPEAKER_03]: of some of our investors watch three four five deals come through the pipeline and they see every

[00:33:14] [SPEAKER_03]: deals similar and after enough time of our podcast or phone calls or due diligence you start to

[00:33:20] [SPEAKER_03]: get the field like okay I'm ready to give it a shot so not that there's always another bus

[00:33:25] [SPEAKER_03]: coming this isn't the last deal there always be another deal coming yeah and actually I would caution

[00:33:29] [SPEAKER_02]: people from if it feels like it's the last last bus that may be run because the guy who's pushing

[00:33:34] [SPEAKER_02]: too hard for this deal right now for somebody that's not ready to move forward that's always

[00:33:39] [SPEAKER_02]: red flag for you as well so Dan any any podcast that you're listening today maybe

[00:33:46] [SPEAKER_02]: either for fun or for business growth that you're using yourself man I haven't been

[00:33:52] [SPEAKER_03]: listening to a ton of podcasts recently I do have a few audiobooks that I've been listening to

[00:33:58] [SPEAKER_03]: but I would say the podcast that I've listened to probably the most would be Ken Macaroys podcast

[00:34:03] [SPEAKER_03]: or his YouTube panel I was enjoyed what Ken's had to say and and can see some similarities

[00:34:11] [SPEAKER_03]: of his focus and what I what I value as far as passive and coming a little longer term

[00:34:15] [SPEAKER_03]: will go so Ken's got great YouTube channel yeah and he's he's a conservative

[00:34:21] [SPEAKER_02]: 17 year-deck guy that has been around for decades so yeah that's used to match very closely

[00:34:27] [SPEAKER_02]: with what you're doing so okay we spent a lot of time talking about due diligence on curious are

[00:34:32] [SPEAKER_02]: they're due diligence questions that maybe are not you know something you'd find in a google

[00:34:37] [SPEAKER_02]: search of top 10 questions are there some that people should be asking that they're not

[00:34:42] [SPEAKER_03]: when they're doing due diligence on operators or deals well if you're an operator like we are

[00:34:47] [SPEAKER_03]: you should just be doing such a thorough inspection of the entire asset inside and out

[00:34:53] [SPEAKER_03]: and the financial inspection inside and out but if you're a passive investor you know if I'm

[00:35:00] [SPEAKER_03]: looking at a deal I'm first doing due diligence on the general partners and maybe that's your

[00:35:06] [SPEAKER_03]: question are you geared more towards that of what do diligence do you want to general partner or

[00:35:10] [SPEAKER_02]: do you mean on a deal either either or so the passive investor that's looking at the partners deal

[00:35:16] [SPEAKER_03]: yeah yeah if I'm a passive investor I'm first doing my due before we've been considering a deal

[00:35:21] [SPEAKER_03]: I'm just doing due diligence on that group on that on that general partner and three to six months of

[00:35:27] [SPEAKER_03]: diligence is not out of question in my book get on their mailing lists see what content they're pushing

[00:35:32] [SPEAKER_03]: out watch a few deals talk to a bunch of referrals watch a couple of deals that would be step one for

[00:35:37] [SPEAKER_03]: me then once I feel enough trust is created with the general partner then I would you know potentially

[00:35:44] [SPEAKER_03]: win watching their webinar if I have any concerns it would be just how much capx did they account for

[00:35:49] [SPEAKER_03]: and if I talked to the general partner you know tell me exactly what you did to due diligence so you

[00:35:54] [SPEAKER_03]: guys know better than the owners because of them the day when you're buying a deal we know that

[00:35:58] [SPEAKER_03]: deal better than the owners do because we just went through everything inside and out sure they haven't

[00:36:03] [SPEAKER_03]: done that probably three to five years so we have the best picture of the asset and you should be

[00:36:09] [SPEAKER_03]: a lancer pretty much any question about anything what plumbing fixtures like interior foundation

[00:36:15] [SPEAKER_03]: windows roof you know landscaping any of that you should know it perfect and you should have

[00:36:20] [SPEAKER_03]: a number of what that's going to cost over the next five years and if you need to put money into

[00:36:25] [SPEAKER_03]: it as you budget it right there before you go in so that you're not caught with your pants down so

[00:36:30] [SPEAKER_03]: um well I would be tuning into is once I've decided on the general partnership group then I would

[00:36:35] [SPEAKER_03]: understand what their process is like and I might even be figuring that out when I'm doing

[00:36:39] [SPEAKER_02]: due diligence on the general partnership group. Love it yeah great great feedback thank you

[00:36:44] [SPEAKER_02]: all right so a couple of fun questions to wrap it up one do you have a recent bucket list item

[00:36:51] [SPEAKER_02]: that you've checked off your list or when you're hoping to in your future? Reesh recent bucket list

[00:36:56] [SPEAKER_03]: item I I don't know if it was a bucket list item necessarily we're in Alaska okay and we want

[00:37:01] [SPEAKER_03]: fishing with Rod and Real for salmon and it was my two boys and I and it was just a blast

[00:37:07] [SPEAKER_03]: fantastic you know yeah it was a great member they had a great time that we we all caught two fish

[00:37:11] [SPEAKER_03]: maxed our limit I was only one they have a broken leg right now so I couldn't get out the

[00:37:15] [SPEAKER_03]: repeatedly but man if we were when we go back up next on my wife got family up there we're going

[00:37:19] [SPEAKER_03]: to go fishing consecutively after day for a week or so very nice it sounds like a bucket list item

[00:37:26] [SPEAKER_02]: to me definitely awesome very cool and then last question if Dan you had 100 grand you had to

[00:37:32] [SPEAKER_02]: invest in the next week of your own money and you could not put it into whatever your deals

[00:37:37] [SPEAKER_02]: where would you put that capital? Pride Bitcoin Bitcoin okay I don't get that a lot so your

[00:37:46] [SPEAKER_02]: your fan of Bitcoin and where it's going in the next handful of words yeah I'm not a fan of

[00:37:53] [SPEAKER_03]: where our currency goes and I love that it's decentralized and no one controls it and that makes me

[00:38:01] [SPEAKER_03]: feel better and now keep in mind I would do the 100 grand based off of my net worth and liquidity but

[00:38:08] [SPEAKER_03]: I wouldn't do that if this was all I had or it was my last 100 grand so you know that I want to make sure

[00:38:14] [SPEAKER_03]: that's heard that this would be more of a this would be more of a speculative play and I've got

[00:38:22] [SPEAKER_03]: some funds already invested in some very I would call safe assets with sure so yeah I think that

[00:38:29] [SPEAKER_03]: out pretty quick without any context but that's yeah based on where I'm at that's probably what I do

[00:38:34] [SPEAKER_03]: or I maybe do like you know half of it in the Bitcoin and the other half in the golden silver

[00:38:38] [SPEAKER_02]: I'm like gold silver too okay yeah no I like the answer and I think in thanks for adding the color

[00:38:43] [SPEAKER_02]: as well because a lot of people they're playing with different size buckets so I like to look at

[00:38:48] [SPEAKER_02]: allocation percentage and percentage exposure to certain markets and asset classes so that all makes

[00:38:54] [SPEAKER_02]: it so yeah thank you for that I haven't heard that and I don't know anything about Bitcoin

[00:38:59] [SPEAKER_02]: other than what I hear which is literally nothing so I have not gotten down that path at all so

[00:39:06] [SPEAKER_02]: we're very good Dan well this has this has been a lot of fun it's been good to get to know you more

[00:39:10] [SPEAKER_02]: I'm sure we're going to be talking more and more actually I think we might be talking tomorrow

[00:39:14] [SPEAKER_02]: for another something else on our calendar but yeah thanks so much for coming on the show

[00:39:18] [SPEAKER_03]: this has been a lot of fun yeah thanks for having me again Randy appreciate your time

[00:39:22] [SPEAKER_02]: awesome all right and to the audience as always we encourage you to continue your education journey

[00:39:28] [SPEAKER_02]: in passing investing more important than that we actually encourage you to make the decision to

[00:39:32] [SPEAKER_02]: make your first pass to investment both Dan and I are convinced that once you do you will wish

[00:39:37] [SPEAKER_02]: you would have started that much sooner so thanks again for joining us again today and be sure to

[00:39:43] [SPEAKER_02]: join us again next Thursday for another great episode well there you have it ladies and gentlemen

[00:39:48] [SPEAKER_00]: another episode of the gentle art of crushing it it was an amazing episode we know we

[00:39:54] [SPEAKER_00]: sure learned a lot and we hope you did as well we want to take a second and thank you so much for

[00:40:00] [SPEAKER_00]: viewing or listening to this episode and please just know that we only ask for one favor

[00:40:05] [SPEAKER_00]: and that is to make this life magnificent thank you and have a wonderful day