State of the Market & Commercial Real Estate Opportunities | Real Estate Notes Show

hey everybody this is dave putz from jkp holdings here uh we're gonna get started here in just a second uh as we have some awesome information to share with you guys um together well jack here is gonna share some great information about what's going on the state of the market uh what's been happening in his world um what he expects from the upcoming uh turn of events we have a lot going on right now we're not sure exactly what's happening so i want to make sure that we cover a lot of the information that you guys are all excited about doing um but before we get started i just want to uh go ahead and play our introductional video that we uh got started for everyone here and uh let me just make sure it's working sure boom let me know if you have any problems hearing or seeing it this is dave putz from jkp holdings before we get started i just want to cover some housekeeping items to show you how we reach out to the community and how the community can reach out to us as most you're aware we have a large private facebook group that was established back 2014.

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a product that we provided you guys that defines different headers what they're used for what they mean our better informed investor it also shows you what you should be having in your bid calculator and why and lastly we have our nda we have just over 100 available assets right now from first to seconds to reos to cfds fill this out you get a confirmation email and you'll have access to our nba form once you have that you'll fill it out electronically sign it and then send it to us we will then give you access to our entire inventory of available assets now get ready for some great content all right everyone let's stop that share and get on to uh the good content tonight so um i want to introduce you to a man i've known for quite a while um very intelligent very experienced from all different kinds of worlds jack groupie thanks for joining me jack i appreciate you coming on tonight it's great to finally do this thanks for having me no problem man so jack's been in all different kinds of area of real estate so i want to quickly give a small background of what he's in and then let him jump in and explain a little bit more feel free to post any questions on the facebook live feed and we're going to do our best to kind of juggle that uh information with that jack starting traditional real estate i'm sure a lot of you guys have either started in you know brick and mortar rentals or fixman flips and whatnot and made your transition into notes or other real estate jack did a similar thing um in 2010 or so he transitioned to starting his own company started buying notes uh onesie twozies to branching out he then large that fund grew into immense size uh a little over i believe it's 30 000 loans at one point about three billion dollars which is amazing uh abilities to go from where he was um now he's on his own um so if you're looking for different avenues of exploring and asking larger questions that some people in our space can't answer jack's the person to reach out to so he's now created we call the fund of funds so jack can you feel us in a little bit about what you've been doing where you came from and a little more experienced about what you've done uh sure sure thanks for that dave um so as far as how i got into real estate um it started in 2001 i had just graduated college during the dot com crash and uh have a degree in information technology so um you know it was uh i had a job but i wasn't really happy and you know there that was there were a number of years where uh the it industry wasn't exactly uh what it's what it's become in recent years so i actually went to vegas and uh bought uh uh was that it was just you know i saw vegas i saw the money and the glitz and the glamour and i bought a book on real estate at hudson news before my flight home and it was i think it was called how to make a million dollars in real estate it was one of those little 20 paperbacks and got back and i was living in rochester new york still right after college even though i'm from new jersey um same town as you uh dave as some many people know um and i called my college landlord and uh you know at the times of 2001 2002 and he he had about 18 properties with renting to college students and flipping houses and uh back then if you could fog a mirror you can get a mortgage so um you know 20 21 22 year old kid got uh within a couple weeks i bought a two-family house and a couple months later i had another one and within a couple years and uh had uh 18 doors and uh quit my full-time job and was then wholesaling flipping houses i ended up getting my broker's license and uh um you know really just uh kind of jumped in head first with uh with real estate um 2008 i definitely took some hits uh you know the business uh lending froze it just became very difficult to operate so i ended up moving down toward back to new york city and ended up at a private equity fund that was buying non-performing mortgages so um i basically my first put into the non-performing world space was at a fund and they needed real estate people at the time so um i learned a business from the inside um handling incoming short sale inquiries uh deeds into a foreclosure modifications and loan sales um and some of the people i'm still in touch with today were some of the other early adopters that that i met through selling loans to them in 2000 2008 at the height of the financial crisis um fast forward a few years i left that and had my own firm gemini i know some people still remember we were early in buying and selling non-performing loans uh and uh in 2014 we partnered with a private equity fund and um you know it started off uh it was just a random meeting off of the linkedin inquiry um it wasn't something we sought out it just sort of happened organically and uh it was a fund that it historically did in other parts of the distressed debt space and credit cards and they wanted to get into mortgages and um we uh we did what they call the 5 million science experiment and uh that five turned into ten turned into 50 turned into a hundred um we emerged them in 2015 and uh became a majority owned subsidiary but i still maintain some ownership and uh you know over the next uh five plus years did three billion dollars in transactions and it was uh um it was pretty pretty amazing ride the business is a different business i mean get into it later at that size and scale it's a completely different business than what uh you know what it was in 2012 2013 when i was buying five loans from condor uh and you know trading with granted and and you know it's a completely different world um you know being an entrepreneurial guy i um you know left in 2019 um took some time i did an executive mba at uh kellogg i did their global program so i spent most of last year traveling including hong kong singapore tel aviv japan korea i really just saw the world and took a number of classes with a bunch of amazing executives and also relocated to puerto rico which has some amazing tax benefits and uh depending on what happens next tuesday uh you know some of you may want to join me down here in puerto rico um and then sorry this is taking is a long intro but uh um so what what i'm doing now is uh you know the last three or four years i've been investing in real estate syndications on um you know with my own personal money and uh you know these are you know middle market apartment buildings 100 to 300 units that are generally too big for the average uh individual investor but still too small for reits and private equity funds and it's a super super inefficient market because everybody raises money deal by deal and generally has 30 days to do it so um you know and what i found is people i knew a couple other people that you had to make a choice you put 50 or 100 000 in a deal in charlotte do you put it in atlanta do you put it in phoenix do you use one operator that you might know or do you um you know have you know do you try someone new and so what i decided to do is create you know somewhat of a fund of funds it's really a fund of syndications or a fund of joint ventures where uh it's called the diversified real estate fund and we actually aggregate capital and invest uh into various uh various syndication projects and so far we're in a deal in augusta georgia jacksonville florida soon to be lawrenceville georgia and phoenix arizona and uh when all said and done we'll probably have 10 to 15 different projects in different markets with multiple operators so you have a lot of diversity and it's something i'm really excited about it's a good fit for my you know kind of the next step of my my life and career because i've always been an evangelist for the real estate industry you know first rentals then notes uh non-performing loans and now this is sort of i'm not out of not performing by any means i still consult in the space but uh you know it's it's a natural progression i'm pretty excited about you know also launching this is uh the next step in my business it's amazing you came from someone who just got into real estate read a book on for a plane flight and now where you're at is tremendous so let's talk to both spectrums of the investor here you have the person who's just getting in and the person has done five six seven million dollars for the person getting in what's your real quick one piece of advice for that person um i mean you you've got a network you know you you have to you have to find a mentor you have to find trading partners and you have to be uh um you know you just have to you have to you have to give value and get value if you're new you know most people that are new are probably not completely new to real estate at all usually usually non-performing loans so usually it's the second step usually somebody's done something first like flipped a house or been a wholesaler or do something so um figure out what you're good at and if your skill set is sort of uh due diligence you know if you're not uh if you're more analytical and not someone who's gonna you know shake a hundred hands at a conference which during covet might uh you know pay the conferences don't happen live anyway but you know if you're if you're more analytical partner up with someone and do some due diligence offer to work for free um offer to you know collaborate and if you're more of the outgoing hustler and you have deal sources but you your eyes blaze over five minutes into an excel spreadsheet um you know find someone uh you know that uh that needs help sourcing deals and that's willing to pay finders fees to uh you know to people who can shake some trees and get product uh you know get some loans in front of them so now you've done you know you may hold 100 200 300 500 notes um or rentals what is the next step for that person to to make that move in transition you know it's an interesting time in the market uh you know to be honest i had a conversation earlier today about about diversifying um you know back in 2009 2010 a lot of people were diversifying into loans because the reo markets were being invaded by uh you know uh blackstone uh you know uh invitation homes uh colony american almost for rent and uh you know a business that had been sort of a mom-and-pop business for 20 30 50 years and turned into an institutionalized business um you know to some extent that happened in the loan market too um and when we talk about what what what the next you know what happens over the next year or two it's a different market than 2008 and i don't think 2008 is going to repeat itself at least to that level on the residential side so there's a lot of sophisticated players and at the larger scale it's a very competitive market and uh you know the returns in some cases get worse if you buy larger and larger deals so for the average investor that's you know certainly non-institutional that's using their own money or friends and family money um you know it's still going to be there's still product out there but what we're getting is the yeah we're getting kind of the fallout of the of of the institutional trades the um the stuff that that doesn't necessarily uh you know fit the box for a securitization for example or is a lower balance or has usually there's some hair on i think i could quote i think bill by mel i think in one of his presentations said you got to be prepared for hair which uh which offended me a little bit i was triggered by that but uh um it was uh yeah i think it was a very very valid point so i guess the point is you've got to be flexible um you know right now given giving foreclosure moratoriums some of the best pricing on deals may be to buy in new york or new jersey uh a lot of people just have these hard investors i don't touch new jersey i don't touch new york and you know certainly there's some there's some value to being very careful in those markets but uh um you know you need to be flexible um institutions can't touch contract for needs i haven't had the greatest experience of them but i know some people who have um and lower balance loans where you know you have to be a little more careful because sometimes there's a minefield uh but a lot of times there's good quality loans for 30 40 50 000 as well um but you know don't expect you're just going to be handed a penthouse in in fort lauderdale for 50 cents on a dollar i think that that that was 2009 2010 it's not 2018.

um so be adaptable is the uh i guess the shortest answer so let's just get an understanding for those who may not know what you did for the fund what kind of loans you're buying where are you buying from were you buying from other funds where you buy directly from the government where was that fund doing and how are you what was your role in that funnel so you know i i was uh you know i was one of the founders of the company that merged in with with the fund so we were we were in charge of all loan acquisitions uh you know in the us uh we started out small those smaller deals when i said the first five million we were buying from some of the same groups that uh that uh you know people in this group buy with uh i'm just i'm gonna be careful with some of the names just because you know there were ndas in place you know but a lot of the names are aren't secret um and then it it grew from there and uh gradually started buying up the food chain to larger broker dealers um you know i can speak because it's public record uh we did a number of trades directly with fannie mae that's published on on their website and um you know other trades through you know consortiums with large broker dealers that would buy the entire fading a portfolio and you know sell hundreds of millions to to us and various other larger groups so it really did progress it was um you know it took it took three or four years to really build up i mean you know 2014 you know we did a lot of small trades 2015 we did three trades over 100 million uh with one major counterparty and it just kind of grew from there um and look it was a you know it was a right place right time uh with the right group that was looking to deploy capital and it was not it was nothing i expected or nothing i set out to do um you know i um it was literally uh you know i was we were selling loans off of linkedin and i connected with uh with the cio of this fund and uh yeah took a meeting took a meeting in a hotel lobby because they were in from out of town and uh didn't know whether they wanted to buy two loans or or or what but it turned into something uh um you know something something special so there's no secret sauce on how it how it happens other than like if you put yourself out there and you're um you know you're active in your marketing and you you know you uh create some level of uh content and thought leadership people sometimes people come out of the woodwork and and seek you out you have some fans saying hello to you i see bill my mail jumping in here and willie as well um so let's pause for a second on what you've done i know a lot of people who are on this uh webinar probably know who you are what you what you spoke about we're in a weird time right now um i know we talked about this previously you know where where do you think you're bullish on what do you think is the golden ticket right now where are you transitioning to uh where you may have not been three four years ago what do you see is gonna be in the next six eight months what are you expecting sure sure so i want to start by quoting howard marks the founder of oak tree capital um post some you know very solid articles and does a quarterly newsletter kind of like warren buffett does and uh i read his last book called cycles and he repeatedly says history may not repeat itself but it does rhyme and uh you know that that's really the basis of what i think is gonna happen next i'm actually very bullish on residential housing i do not think we're gonna have a 2008 type crash on the residential sector um i do think there'll be foreclosures and addictions and you know we've got moratoriums for months and months and uh you know eventually you know they'll have to go through the system but you know unlike 2008 you know more most of these loans were actually underwritten to with some level of standards um you know i'm actually buying a condo myself right now and it's uh you know it's not easy they're you know they're running me through the wringer and i'm you know i've got you know a reasonable amount of income and assets at this point it's still uh still a hassle um and i think you know there was not the level of sophisticated capital to buy loans in 2008 there's a lot of people figuring it out you know some of the even some of the major firms that were in that space beforehand had too much exposure to subprime and were losing money and it was really new firms or new divisions of bigger firms set up to acquire non-performing loans post 2008 so you're saying that the the those people buying loads back then were much smaller pond than they are now that these people now built out to much larger operations yes yeah also the loans that were in foreclosure in 2008 a lot of them should never have been written you know in this situation even if there is a i mean there's going to be a kick up in foreclosures and delinquencies but many of these people just got caught up in the in the in the code in something they lost their job they they owned already owned restaurants um and and coven also disproportionately hit i think a group that probably a less of them were actually homeowners as well um which is one of the reasons we're avoiding sort of the class c apartments which we'll get to get to later but yeah i think hey the the reason for default is different and as the you know vaccine progresses or the the virus kind of hurt immunity approaches um there's there's you know the people that lost a job because of this you know virus pandemic uh in the economic impact of it uh you know are likely to to get some type of job and maybe even get a job that's more remote and have more flexibility and location to find find some gainful employment so there'll be foreclosures there'll be some evictions but the loans that go on performing there's a number of sophisticated buyers with a lot of capital that are chasing you know fight need yield and opportunity so the loans will be absorbed by the market i do think there'll be loans there'll be a lot of loans that do trickle down but what i think is the housing prices i do not expect a crater i think they'll there'll be more non-performing loans to buy more re-performing sub-performing loans to buy by the secondary market by all of us that buy loans but i'm actually overall very bullish on housing because there's never been the supply never caught up after the last crisis and until until the vaccine until until covet is really done and over with and starting to be forgotten less people who wants to list their house for sale and have strangers walking through and sneezing and coughing and uh yeah so so i think there'll be a continued limit of supply and uh i think uh it's hard to you know it's hard to find a single family house i know a number of people that are you know i knew hey we know a lot of realtors that are handling reo's that they they sell very quickly and and uh it's very competitive i have friends trying to buy that are putting multiple you know there's multiple offers on those houses they look at so so overall very bullish on residential um commercial retail office um that's where the opportunities will be this time around and um the thing about that is that's also a potentially a lot more decentralized of a market um a lot of the residential loans you know there were some smaller banks that held loans on their on their books but a great majority of the residential loans were sold into either fannie freddie hud they went they went to wall street um community banks hold a lot more commercial paper um fannie mae on the multi-family side there's still a lot of fannie mae freddie mac but you know if you have a you know a random strip mall in ohio much more of a chance with the community bank so those deals and some of them are going to go to dedex and the big brokers that uh that but there's also there's going to be some opportunities to to find unique opportunities either in your local market or through through kind of hustling and finding you know finding sources that are available um you know those deals take a little bit more creativity in some cases um you know there's talk of turning you know turning vacant department stores into you know amazon warehouses or something like industrial there's a lot more that goes into it um turning an office building or mixed use building into more of a planned community mixed use you know knock down a you know knock down a well-located uh office building and build five apartments or eight apartments so there's gonna be lots of opportunities but um you know they're gonna be they're gonna require more ingenuity but the the the way i've always made the most money with non-performing loans though is working with the borrower and getting loans reperforming so to the extent you could buy a loan on a half half vacant office building readjust the terms so that the owner could actually afford to cash flow it half vacant and let them let them do the work of figuring out the new normal and where you know where rents are in that market uh and that's probably and especially if you're out of your own area and you're not you know experienced in office leasing which i you know i am not so you know that's it's really the same concept is the point is uh you know modify the load work with the borrower so you know you bring up the notes commercial notes in my experience i don't see a lot of commercial nodes trickling down um where do you suggest if people want to try that avenue and have experience is there a place to go find those commercial notes you know i mean there are a couple brokerages i mean i mentioned dead x before um but it's a it's a much more uh you know it's it's it's a wider market there there's a there's a few brokerages some of those are going to actually go to the other brokerages too you might see those at the same firms that sell commercial real estate because they have the relationships um so you know check out the the the local you know jll or the local cbre uh you know some of these deals might be too small for those guys too but uh um you know that's where i know for years people are asking me about calling community banks so that's like a waste of time you know it's it's really they don't really for the residential side they may service the loan even but they don't own it it's a fannie mae loan and in this case it's probably gonna actually pay some dividends to actually to you know actually do some marketing dial for dollars um the other thing is you could actually back into it through property research too um on the residential side that didn't really work because you know the assignment would be to some random trust that um you know really to most wouldn't make a lot of sense but you know if the loan is owned by a credit union or uh you know a small community bank you could actually pull the assignment records of all the less penances and uh you know actually back into you know who owns loans so um you know and and a lot of deals are going to come from just standard networking too other brokers wholesalers people that are people that are hustling those deals and trying to figure out how to chase a short sale um you might find you might find somebody trying to work the traditional angle that has no clue you could buy non-performing loans and if you're not performing loan experience you might be able to work at a different angle and uh you know make make more money than trying to try to do with the traditional real estate way and guys feel free to keep the comments and questions coming um we'll do our best to answer them as we go along um i know that pricing of housing is extremely high which is odd right you know back in 2008 2009 prices dropped and i think that's why we're kind of more bullish on the residential side of it where the defaults will be different um the crash the housing crash is not going to be what it was we're not going to see foreclosures in every block i don't think um so let me point out one other thing too this is something that came up in uh this was more a stock related but uh you know i took a value investing course at kellogg when i was doing my mba last year and uh just some of the statistics about dollar cost averaging in and this was stock market related but if you started putting money in in 1929 if you put all your money in the day before the stock market crash it would take you 11 years to get your money back however if you put your money in over a course of six months before the 1929 crash and six months after you break even in roughly three years wow so for for those that are worried about coded and worried about the end of the world or you know even if even if there is a recession even if prices do back up if you're consistently looking for deals and and putting capital to work over the next one to two years regardless of if there is a more of a slowdown if there's a second or third wave if there's a shutdown and you know prices do decline if you're if you're buying good deals along the way and you have a long-term mentality you're gonna do okay so bill asked the question what do you foresee the terms of of the government coming in and you know intervening in the market by extending all these you know different programs and whatnot yeah i mean you know i've heard some i've heard some you know a little bit of ominous uh rumors or something about like certain certain plans on the uh you know on the democratic side um and you know you know a lot of us including you know bill got our start right post 2008 and lived through hamp and harp and some of the programs like i can't imagine some indefinite moratorium on foreclosures or evictions but i can imagine some other government programs and if they're gonna extend eviction moratoriums there's probably gonna be some type of of like forced program or some type of structured program where where the landlord also gets some compensation or some major tax write-offs uh for writing off the rent um you know i can't imagine it's gonna be so so one-sided and right now maybe some of the rhetoric is that way but once once it gets down to uh once it gets down to it i mean it's a you know it's a systemic risk and when we when we were talking uh or i was talking to someone in you know this probably march or april and i'd heard uh i think it was uh barry sterling was on cnbc and was talking about they were talking about bailing out commercial landlords and and he made a valid point you're not bailing out commercial landlords you're ultimately bailing out main street because some of those largest commercial deals they have cnbs loans commercial mortgage-backed security you know who owns a lot of commercial mortgage-backed securities pension funds and pension funds is now main street now it's now it's everyone else so you're really you're really not just bailing out uh you know the biggest commercial landlords so at the end of the day you know there's got to be some type of of support or assistance or something that's doesn't completely keep the mortgage holders and uh and and landlords holding the bag and i know you've said to me before about inflation being you know real estate being that balance for it where do you see inflation in the next 12 months with everything going on yeah i mean look i can't tell you that 12 months um but i can tell you when you're printing trillions of dollars um you know it can't uh you know i can't imagine you know and this is maybe in this crisis we might get more of a pass than normal because a lot of other countries are also providing some level of stimulus but just overall over a five ten year period i mean i can't see a situation where where we stop this cycle of just printing money and running running a deficit um you know i think what the u.s has maybe had two or three years of a surplus in the last thirty uh and and both parties are doing it so uh it'll probably take some type of larger crisis in the u.s dollar or or something where there's more resistance to being the the the world's reserve currency no i'm no economist either this is just uh um but i'm also in puerto rico now and i'm surrounded by a lot of bitcoin uh you know bitcoin uh and other cryptocurrency stores that are you know very worried about the us dollar long term and and and want to hedge against uh against issues but uh holding hard assets holding real estate um you know like technically i guess if you own the debt technically that debt's worth less but if property values do go up because of uh you know because of inflation then you know more likely your debt gets paid off faster which will yield to a higher return um one of the reasons though i pivoted more into you know in into commercial into multi-family real estate is you know first that i am bullish on the multi-family asset class and if there's a shortage of single-family houses there'll be more people in apartments too just because they can't find an affordable deal on a single-family house uh secondly is locking in that low rate financing uh most of my most of my assets in my holding the last 10 years were all mortgage related um but over the last few years i did start investing in syndications and leveraged real estate is a very good hedge against inflation what do you especially when you could borrow at uh some three percent and um you know if i think rates will stay low for for a while but uh you know if there is more significant inflation housing prices will go up and you've locked in fixed rate uh fixed rate debt how about compliance on commercial how does that compare to the residential states um i think on there's different intricacies on if you're buying a commercial loan i mean there's certainly some more intricacies you need to be worried more about environmental um phase one you know and uh potentially other things and i want to be careful like this is you know there's way there's potentially more to it it just i'm not yeah don't go jack said get a phase one and everything else is okay but uh you know there's certainly some other things to look at but at the same time you're also uh dealing with a commercial borrower so there's actually less less on the servicing side because you're dealing with a you know you're dealing with a company there's less servicing regulations on uh you know than you have on the owner occupant side and um you know there's you know a business that in some cases there may be personal guarantees in some cases the actual borrower may have a lot of other assets and really something to lose so in some cases they may come to the table and uh you know be willing to make some type of deal because they're more motivated than just to uh you know hide and and just delay delay delay as long as possible so so there's pros and cons and uh you know it's something i'm you know i'm continuing to look into as well it's not it's not like i'm not saying i'm the commercial expert by any means on no i mean it's definitely a good a different angle than we're used to seeing and investing in just to kind of say with real quick back and we're going to bounce back to commercial someone brought up the question of where residential is starting to get more and more compliance issues and whatnot someone asked what your thoughts are with debt collector licenses um statute limitations um and becoming more borrower friendly um i know uh that's something that i we're seeing a lot of that you know a lot of states are more and more getting into the fact that borrowers debt licenses need to be required what's your thoughts on limitations and that kind of stuff kind of regulate um sure well on the licensing thing first i mean you know it's definitely different than 2008 nine 10 11 i mean there's a bit of the wild wild west then i mean i'd even talk to borrowers on the phone myself uh you know some of the early times i mean at this stage i mean i would say 100 use a third-party loan servicer um you know whether or not you're gonna use the limited service thing where you might actually do some of the collections yourself i mean that's sort of a that's a personal decision but uh you know i lean more and more towards you know relying on the servicer to do more when possible relying on foreclosure council to to get the borrower's attention and not uh you know not put yourself in a spot where you put yourself at risk um you know as far as the individual states i mean yeah i mean it's it's concerning and uh um you know i mean early on i think you know there was the georgia thing where if you own more than five loans you need to actually register i know there's a few other states and uh yeah it's just something you're just gonna have to people are gonna have to add to the checklist you know it's one of those things where if you're you know the people hurts the most are kind of in that growing middle ground if you're small enough most states if you own three loans or you know you could kind of just stay under the radar um and if you get big enough then you can basically pay for the infrastructure to to set up you know set up a statutory trust where you basically rent a license from one of the larger banks so um yeah i mean it's it's actually it's unfortunate and it's like yeah it's the middle it's that growing pains area where you have to you know make sure you don't get kind of caught where you're getting big enough to catch you know to get on the radar but not big enough to have the proper infrastructure to to do it the way the big guys do it well and the statute of limitations i mean new york is definitely um i think the the biggest risk there you know at the same time the pricing is you know that the pandemic and other problems going on i mean the pricing in new york is probably the you know the cheapest of of any state and you just have to have good due diligence um it's worth the price to have an attorney look at the file uh and just got to be you know you got to be careful but uh you know there's money to be made it's amazing because you know we've never really got into commercial there wasn't the influx of you know data tapes of commercial when i got started with you and now we're segue into commercial space for those who are kind of curious what avenues you suggest or what you're exploring um what what different class levels are you are you going in a's or c's or where are you getting started at uh sure so yeah so when i'm talking about this commercial like we're actually buying into properties at this point i mean you know commercial debt is certainly something on the table but you know what i've pivoted to is uh buying into middle market syndications um and you know class a is the nicest departments those are the highest end they've got gyms and pools and saunas uh class b i'd refer to as workforce housing um you know middle class apartments uh you know often they're you know built in the 70s to the mid 80s so they're a little older but still nice maybe there's a pool um the ideal ones we like to buy or ones that are you know the same ownerships had it for 20 years and they you know they they paint but they're they haven't really been you know improving the property they just sort of you know riding it out collecting everything they can and they're not managing it efficiently to get every dollar out of it they bought it a long time ago and they they own it for cheap and then class c is generally minimal to no amenities generally lower income area much more likely to have section 8 you know maybe some uh you know kind of more more challenging uh you know either either very either way more rural and just sort of low lower end or potentially an area has some crime and uh you know we we generally avoid those so what our primary focus has been is a class b and more importantly a value-add um something where that would i described with a rents or below market where if you can spend five thousand dollars to renovate an apartment it's gonna raise the rent by a hundred dollars a month and if you do that over a hundred apartments and you're buying a building at a six uh you know six percent cap rate that that raises the value of the building by you know each unit renovates renovating empire up of raising the value by fifty thousand dollars in some cases you do that over 50 units you've forced depreciation in that building um you've got low uh very low financing right now so you're locking in with longer term fannie mae debt um and uh the other thing that really and i was aware of it because i owned rentals when i was younger but you know it's it's all different now that um you know i actually have to have some assets some other income is is the depreciation factor um you know you own a two family house you're you're gonna get the depreciation over 27 years and um you know that's it it's a nice little you know offset some of your rental income on these larger buildings and we we generally been using doing 100 to 300 unit buildings uh in joint ventures um you can do accelerated depreciation you hire an engineer you get a study and they look at all the fixtures and they basically allocate in many cases 20 of the value of the improvements in your first year so there's a deal we're doing right now that's going to close uh probably next week that for every 100 thousand we invest we're gonna get a fifty six thousand dollar depreciation tax loss for for the first year where we've owned the asset you know a month and a half and that could offset all other passive income it cannot offset active income if you're you know if you work as a lawyer you make 200 grand 300 probably you know more judging by some of the crazy hourly billings i've seen um but uh you know you can offset you can't all set your current you know w-2 full-time incomplete full-time job but if you have stocks bonds dividends uh other passive income you could offset all of the passive income and if you don't have that passive income you could accrue a a loss which you can then carry forward against future passive income including the capital gains on on selling the building um you know there is some uh recaptured appreciation but net net it's it's a it's a huge benefit and uh you know it's something that you know as i've kind of migrated my my career and now you know most of us you know we have some assets we you know are investing we're very conscious of all this stuff the taxes become a very important issue and it could become much more of an important issue in five days well said um you know you use the word fund of funds can you describe what that looks like or what does somebody that sounds like a bunch of words what's that look like sure so so yeah i created um and by the way this is the first time all these years i've always had sort of one large backer so so this is the first time that i've actually been able to take outside uh money myself and uh you know i'm very excited about it because i had so many people over the years saying hey can we invest in your fund and we had big pension funds and institutions and just it was it was something wasn't even my division so i couldn't i couldn't do it so um you know because it's the first time and i've seen i've seen it go poorly for some people that you know especially with the sec regulations we decided to set it up and do everything um completely uh completely legitimate right away so we did a regulation b 506 c offering um which allows us to do advertising however we only can work with accredited investors and um you know we have a private placement we have a portal um from the website from the jcam investments website uh people can view our private placement and our strategy and uh we actually already own uh as of next week we'll have four apartment buildings in the fund already and um you know you can review our offering docs and share costs uh we have a fixed return at ten percent or we have an equity return that pays a six percent preferred return and uh we do a 70 30 profit split 70 percent of the investors 30 percent uh once everyone's gotten their money back uh myself and a few partners uh you know get 30 of the profits and we're expecting to do a mid mid teens return uh overall on that fund and uh you know the fund of funds is you know we're not swinging hammers um you know i've been investing myself in some multi-family deals as a you know as a partner but uh you know the the key is that the the whole market is inefficient when you have 30 days to raise money even if you've been around for 20 years you know it's it's it's always a hustle and these operators are always looking for somebody who can be there consistently and write larger checks so we actually use that to negotiate better terms so if if there's an investor who is going to decide between putting 50 000 into our fund or 50 000 directly into a project we we strive to get either a higher preferred return or a piece of the back end a piece of their general partnership a piece of their 70 30 split so that it all sets some of our fees and that an investor who has a decision on what one or the other is is actually getting better terms to go into the project through our fund and we give the diversity so we're in four different markets right now and by the time the fund is done we'll be in 15 probably 10 or 15 different projects and uh you know we all we also may do a few ground up construction projects they're very very um very you know very uh legit and we feel we feel good about it but a majority of what we're going to do is cash flowing value ads so that we have the consistent cash flow with the upside and um you know i i look at it as a wealth management plan at this point i've always been an evangelist and you know those who know my personality i'm a connector i'm i enjoy talking real estate and uh i enjoy you know helping strong sponsors and operators you know i sponsor an operator independently a sponsor is a deal sponsor and they're generally the operators actually on site doing the work they're signing on the mortgage and uh they're the general partner of the deal and uh you know i enjoy helping guys like that get to their goals and i enjoy helping investors i think there's more of a need in this industry for people to have exposure to alternative assets i think way too many people have their money stuck in a bank earning four percent and uh you know it's it's not uh frankly it's not fair to them so it sounds to me as you're looking you're open for two different kind of people to approach you one they may have a large deal to look and get funded right and two somebody who's looking to get a good return their money where they can get different rates of return based on the risk level of the uh of the investment um to me it sounds like both avenues what you're looking for can you explain a little bit more about that yeah absolutely so you know we're always looking for limited partners and investors in the fund i mean that's that's obvious i know a lot of you may also be raising money for your own funds or maybe mostly active yourself but uh um you know real estate's a team sport so you know i know in many cases uh you know if you're an active investor but you you know you're having a hard time finding deals and you have an extra 50 000 under the couch cushions that you're unlikely to invest or find a deal for the next year or two um you know diversify a bit and you know we'd be happy to have you um on the operations side i mean we're you know we're always looking for interesting opportunities you know a lot of what we're doing right now is is is multi-family um you know i like the risk return profile at the moment but as things develop over the next couple years we're always looking for interesting distressed opportunities and uh you know definitely want to be on the call list of anyone who has anything um available you know if it's a fit for our fund you know there's a chance we would actually be that co-sponsor with you and do a joint venture and uh you know use some of our funds money along with your money and actually take take a project on a project by project basis if uh if it's not a fit for us but there's you know maybe another another group or fund or an individual investor that's more you know more hands-on especially for smaller deals the likelihood of deals we would more than pass on is like a bit small if it's like a you know we're probably not going to flip a two unit property um you know we we can do some bridge or hard money lending but at the same time there's also a lot of you know hard money lenders out there now and that that's a market that you used to be able to lend at 12 and 2 or 13 and three and now it's like ten and you know ten and two so um you know a lot of these markets it's another market that turned institutional and the capital got a lot cheaper so so but yeah you hit the nail on the head on yeah we wanna talk to investors we wanna talk to uh um operators um you know and i want to catch up i mean the greatest part about the last month or dude i've caught up with so many people that i've you know met at a conference five years ago or you know sold a loan to five years ago and you know the last few years i kind of disappeared because we were you know institutional and uh it was kind of a different different world and different business so i am looking forward to reconnecting uh with uh with everyone and uh i know you have a um you know a forum for anyone who wants to get on the mailing list for both of our um you know both of our companies so um yeah i'd encourage everyone to either sign up on my website sign up on uh you know dave's gonna have a custom forum yeah post it on there if you want to get jack's information the website informational stuff just put a form we just want to get contact information so jack can hit you up via email um so he's not getting a million emails at once uh he'll just definitely do that and i'll share the email address but not i just posted the uh the comment on the thread here for you guys um we have a question from uh to maine's asking what other types of alternative real estate investing are you looking are then large multi-family um sure so um you know self-storage and mobile home parks are our assets we look at those are you know similar um self storage was very recession resistant during 2008 um a little more cautious of self storage now with as many malls and you know kmarts and sears going uh going under that there could be maybe maybe more of a supply opportunity on self storage than before um the next other alternative we're likely to do is a senior living facility um we have an operator that we've uh been introduced to that's uh been doing this for a number of years and they build 100 120 bed uh facilities in the midwest they're on their sixth or seventh uh i think yes it's six going on seventh project right now and um you know when i first heard was talking then i was like oh what about cove and what about cove isn't this a terrible time to be having a senior living complex but it turns out because they're new construction they build them with all the advanced hvac systems so the rooms have negative pressure and they're actually you know almost safe you know safer than a hospital uh or safe at the hospital with all the technology and um you know they build them in markets that are just underserved to the point where there's waiting lists at other facilities where they they're they're generally close to full before uh before before they complete and uh those deals are roughly 30 annual returns so starting to approach the level of uh i'm sure there's some seconds folks on the call every you know i don't go a day without someone asking me about buying seconds and uh you know it's a challenge there's not a lot of supply anymore they stopped making them after two thousand yeah it's amazing that's what you started out at where you started with the second space and converted over the first um we got a couple more questions for you regarding your ppm does your ppm have a limit um uh living you to only multi-family or would you consider investing in debt i guess the question for marco is you know would you help fund a note investor to buy a portfolio of performing assets um so the ppm itself has a pretty broad mandate um it's it's safer to have it's safer to write in all the possible things you can do because it becomes much more challenging to to adapt it and notify it so i have the ability to buy any type of real estate um we can do hard money lending we can buy loans um we we have we have pretty broad discretion um you know with that said so far we've we've put most of the money into multi-family and part of the reason too is you know a lot of funds get in trouble because of cash drag so you know people raise money they can't find deals then they either have to return money and they don't get their returns or they or worse they don't return the money and they buy something stupid um so at least to build an asset base we we've literally had multi-family deals and put you know already knew what we were we were going to invest in and then raise the money so the money has been very efficiently invested so far um and and so we have a pretty broad discretion um would we do a a no jv you know we we could um you know full disclosure i still have a consulting relationship with uh with a ppr note company at dave van horn's group in philadelphia so anything of a large scale that's like a multi-million dollar deal um you know they you know i work with them um you know they're maybe buy and sell opportunities with them over time but i'm um you know on on the right deal if it's commercial or separate yes on a random five and five loan non-performing deal probably a little too small for for what we're uh going for at this point we would also though potentially buy small pools we'd be most likely to maybe buy reperforming ourselves what i'm not doing is recreating another active business um part of the reason for the fund of funds is to to um you know have have a have a little bit of a more controlled lifestyle at this point and not uh what i don't want to do is create myself a job i hate so uh you know i'm being very cautious to to you know that's part of the reason i'm doing larger projects is it's easy you know in some cases it's easier to have a hundred unit building than a two unit building it's easier to manage a couple thousand loans in some cases when you actually have a servicer that calls you back and really cares when you're when you're a significant client and that's that's happened a lot too i've made referrals to various service providers that have taken very very good care of me and my company and then sometimes when you're like a guy with two loans you're not going to get the same level of attention so yeah so it's a question regarding are you focused in certain parts of the country or are you buying nationwide um it tends to be south the southeast the southeast the you know the the midwest you know tennessee um yeah i like denver um i like most of colorado uh we're in a deal in phoenix um so it's generally the southeast through the midwest up sort of on the west coast um probably not you know california just because of the cap rates there's just so much demand for california that unless there's you know i mean unless prices drop to the point where it is like 2009 um you know i just doubt we'll compete in california i'd rather have um you know a higher cap rate and a double-digit cash on cash return in a solid you know mid mid upper teens return than than then you know stretch to buy something and i think it was the same with new york city i'm not expecting we're gonna be heavy in you know in new york new jersey i think just the the cap rates are too low the taxes are too high um unless unless everybody moves to florida and then the prices in new jersey and new york get down to a you know a level um i mean a lot of people made money in new york buying in the 70s and 80s when new york was uh you know not what new york became and uh you know new york is kind of going uh backtracking a little bit right now so it's getting it's getting its edge as bill burr said on saturday live it's getting its edge again um someone asked about a little bit more about um ppr um what's the relationship for the uh who is it with uh can you explain a little bit about what ppr does and what your relationship is with them um sure so i mean and i would ppr has been around a long time you know they uh i think dave david horn they've got a great reputation in history of buying loans and i'm just uh i'm a consultant i do business development for them uh i help source loan portfolios and i've actually set up a joint venture or two so so basically as you know management consultant business development uh um guy and uh you know they're they're um you know they're a well-known group it's got a great reputation they you know buy it sell sell loans so it's really the reason i'm not doing more direct loan investing myself because they're you know they're very established and uh yeah we've got a great relationship and uh you know i'm not gonna try to recreate the wheel at this point uh if i do a loan if i do a significant loan deal i'm gonna do it through them we have a mike bridges who i guess is giving a shout out for a couple years ago you bought a note from his sons a few years ago when he was a scott carson group so yeah i remember mike how's it going great uh great to reconnect i think i have a different email address than the last time you connected so yeah please uh reach back out make sure we uh we stay and uh stay in closer touch yeah it's amazing this space is transitioning very quickly um and covert change everything we've talked many times of what's going to be the next curve and what's in a closet and this left field thing happens those people are sitting on the sideline right now and waiting for all the crumble and the deal flow to come down what is your advice to them should they just be sitting back or should they be jumping in right now i'd say if you're that scared put some money in my fund and i'll handle it um in all seriousness i mean i i go back to the kind of you know dollar cost averaging i mean if you're getting a reasonable deal and it's well researched at this time you know you're not gonna you know it's very hard to time the market it's very hard to time the exact bottom um you know look i mean you know who knows after after two you know we have three things happen next tuesday trump wins by the wins or we have like a year 2000 and we'll be hearing about hanging chads for the next couple months uh i mean you know but one way or another i mean there's likely to be stimulus one way or the other um you know at some point in the next 12 months you know the virus is likely to you know be somewhat under control or run its course and you never know maybe a meteor strikes maybe maybe there's now an ebola outbreak i mean things can go wrong and it seems to happen every 10 or 15 years recently but you know you you uh you know fi find a niche and uh you know dive in and and and you know network and research and and go for it or again if you're if you're more passive i mean i know a lot of people um that i've met at conferences that you know think they want to do it themselves and then after a while end up finding kind of the you know the hungry aggressive um you know deal deal maker that maybe doesn't have the capital yet that that's the really good uh but but has the ambition and sometimes sometimes you're better off being uh being the jb partner um you know i'm at a stage in my life in career too where like i said i don't want to create myself as operationally intensive business so i purposely set up you know my business as a company at this point where i could be you know the wealth manager the tour guide the the connector and and you know but i'm able to do that in safe deals that i feel comfortable with and i'm not going to lose sleep on that over rather than the most aggressive deal so yeah um the answer is you know just figure out what angle you want to take and be honest with yourself on it too i know a lot of people sort of have this inner inner feel that they have to be a certain way even though it makes them uncomfortable they you know maybe aren't cut out to do that and there's there's space for everyone in the in the real estate business there's plenty of angles and plenty of plenty of uh there's no one right way to do it yeah plenty of wrong ways to do it but there's no way to do it yeah and i've definitely done some wrong ways myself during over the years over the years we had a question regarding can they 1031 into your funds um not directly into the fund but we also have an advisory practice so you can 1031 potentially into a deal that we would be investing in and there's there's situations where we can help facilitate those so you know for example we might be putting a half a million or a million into a into a three million dollar total raise and if you have a 1031 for another million dollars or half a million dollars you can set it up as a tenant in common um there needs to be it needs to be enough of a 1031 to to make it make sense like if you're if you're 10 30 wanting a single family house for 50 grand it's the legal fees will out uh well we'll strip it but uh you know if it's if it's close to a million bucks uh then yeah you could definitely do it and um you know the i'm i'm not a not a lawyer that you know at that size you hire the lawyers they they take care of it the intermediaries and lawyers but yes we can definitely be facilitating projects like that um you know if if there's needs arise i'd say reach out sooner than later too like if you think you're going to sell a property next year and uh you know you want to get to know some of the projects that we're doing the operators you know start now so that when the time comes and you have 45 days to pull the trigger that you know you're comfortable with uh you know the types of deals we're doing and you get it you're you're not going to hesitate uh yeah because it's going to be a big decision um there's a question regarding i guess uh christian if you can explain a little bit more about um using it uh your self-directed iras regarding your investment she asks can you can comment on the uh self-directed funds especially since tax advantages don't apply for those with regards to your investments am i exactly sure what she's asking but i gotta say it's probably the ubid issue yeah i will say with with our fund um you know any time you're using an ira and you have assets that have leverage in them um you know you do need to be concerned with ubit um i i don't i can't give an exact number i know if you put 50 000 in with what we have it's going to cost you this much in ubit um but um that's the kind of thing that i would want to have a talk directly with you know either our cpa for the fund or your cpa and uh you know i will advise anyone using self-directed to be to make sure that's being checked out before before they uh just blindly send money in for the for the fun because like what i don't want to do is be in a spot where you make a you make a great return and then all of a sudden it ends up you know half the return because of the taxes like i you know i'm in puerto rico i definitely don't like to pay taxes uh you know not not at least more than i have to so those who don't know why puerto rico you like the women what's that what's going on down there what's happening down there yeah so um happily married the uh the happiest uh three year three years of my life we've been together for 15.

no that's a joke but we've been together somewhere for three all right yeah um so yeah no laughter that's what i'm used to hearing um so puerto rico has this amazing tax incentive called uh act 20 and act 22. they've actually renamed the program now act 60. um so act 20 if you have a consulting business pretty much most businesses if you're getting a 1099 um but basically the key is you're making money from the mainland you make money outside of puerto rico and you live in puerto rico they charge four percent tax and puerto rican residents do not pay federal income tax so uh essentially you know any consulting business you can pay four percent and there's also no short-term or long-term capital gains so um stocks bonds anything that's on puerto rico sourced income now real estate however is still taxed in the u.s because real estate is where the property is um but managing fees and some of the other extra fees do get sourced in puerto rico um and yeah it's incredible there's a couple thousand of us that move down here so there's a great community uh it's almost like a mini silicon valley i mean you have you have bitcoin millionaires here you've got stock traders you've got internet marketing you've got uh like real estate fund advisors you've got you know a whole slew of interesting people that have all moved down here and you know there's a brief hurricane you know that we did have the bad hurricane in 2017 that was before i got here but otherwise it generally never gets hotter than 85 never gets colder than 75 and uh you know the food is great i'm trying to watch my carbs so i'm not really having much rice and beans uh but uh you know it's uh it's great it's like uh you know and it's like three different yeah you could live in a golf course if you want or you could live in condada which is like living in you know it's like living in south beach in like the 80s before they cleaned it up i got a private question from somebody that asked me they asked me can you share with your craziest note deal that you've been involved with something some crazy story you know keep it sure but what would be something you um you've been involved with there just was wild so i mean i'll give a quick inspirational one and then i'll give the you know let me start with the one okay yeah i mean there's been some like loophole after loophole fights where the borrower was just obviously stalling as long as possible um you know we've had deals where they they deeded one percent of the property to a new florida llc and then they filed bankruptcy on the florida llc um you know we've had deals where uh they you know the husband files bankruptcy and the white files bankruptcy then the wife's company files in a different district i mean you know we've seen all the you know so there's been ones that dragged out for for a number of years you know we had doctors in in a very high-end town in new jersey that you know on actually the trump golf course uh that was just delay and delay and delay this was like a beautiful house that we thought was worth a million five and turned out if we sold it as is it would have been worth like 800 or 700 grand so actually that was a deal that uh you know myself and i think i know if tim's on here we were there personally and we actually had a high school friend who's a great general contractor came in and did a ton of renovation work and you know we were renovating houses you know there's a lot of them that you put 10 or 20 grand into and it's like a pretty cookie cutter rehab but this is like you know very high end and another high school friend that's a realtor so it's literally like the jackson the jackson memorial high school team of rehabbers he could have had like a reality show and i know jen's on the call as well tonight well it's awesome yeah i i i accidentally i didn't i don't have the facebook stream up because i when your video was playing i accidentally like started playing a different video and i closed it to panics now um as far as like a really good stories uh you know i bought a non-performing loan in maryland um this was probably 2012.

the house was worth 500 when he bought it or at least it praised for 500. when we bought it at a 275 000 appraisal bpo and i think we paid we paid 170 for it it was newly reperforming i mean this pricing you don't get anymore but uh yeah newly performing and we paid kind of higher than we normally did i think we paid almost 70 percent of the current vpo value for you know a freshly performing loan it was very very underwater and uh you know uh turned out the guy was like a military veteran was now a government contractor it kind of between got in between contracts and uh you know just kind of had a little blip and uh but eventually you know had a decent job and was paying and you know we talked to him at the time they had a a uh fha i think 10 23 program where you could basically do a short refinance and forgive principal so i told him you know if you pay for 12 months keep on track you know we'll refer you a mortgage banker and we'll see if we can get you uh get your own paid off um you know i can't tell you exactly how much you'll save but whatever the house currently appraises at um and you know minus closing costs we'll probably take care of it for you um you know six eight months later the uh he had had swallowed consequence we got we got uh you know real estate values were improving in maryland and uh the house appraised for 390 grand so after uh you know after closing costs um yeah we ended up taking like a 370 ish payoff and his payment dropped by like almost a thousand dollars a month and and we had we we had done a forbearance with him as well so he wasn't paying the same as he was on the radio 500 and we saved him over 100 000 in principle we made 200 000 ourselves and it was a win-win-win military veteran and uh you know i was saying at the time that i wish we could have like made a made like a little movie clip or commercial and like you know if the cmb cfpb ever came knocking on the door let's just go show a testimonial of like some of the the good things the good things we do in this industry too because uh you know i'll still like mention you know this you know at an airport someone's like what do you do and i would tell them to buy non-performing lows and they just assume you're like this vulture capitalist and i was like no no we actually you know help people most of the time yeah the big banks give a real bad name to what we do or you know what we invest in um you know it's amazing this space is what we are and then the connections and everyone saying hello jen just said hi as well um if you have any guys any final questions i want to wrap it up pretty soon but if you have anything regarding his fund um we're gonna again i'm gonna post the uh form link just provide some information i'll get you on certain mailing lists and whatnot and reach out to so you did mention the word credit investor for your fund um can you just kind of briefly sum up for those who may not know what a credit investor is what that falls into um sure so yeah this is a rule that's been around since like the 20s i think uh after the the original stock market crash so the credit investor you need you need to make 200 000 a year for the last two years or if you're married you combine 300 000 and or have a million dollar net worth um that excludes your primary residence so you can't use the equity in your house however retirement accounts do count towards your net worth so uh even if you're not using your retirement account for the investment if you have enough in your retirement account and you want to use your non-retirement account money which um you know because of the hubid thing you know this is definitely better this is better suited for non-retirement money just because of the depreciation um although you know it can still make sense for the retirement side um that's really it and since we do the 506 c um we use a third-party company called verify investor so someone didn't want to invest with the fund um you don't i don't need to see your tax returns i can't see the president's i don't need to see yours um and uh we um we use it's actually owned by attorneys so you could actually either send a cpa letter from your accountant that just says you're credited and that's good enough or you could just literally upload a you know a bank statement or tax return to the uh and you can wait out your account number but you can just upload it to the verify investor portal and they'll confirm that you're in compliance and an accredited investor awesome it's amazing uh how things have changed over the years and the direction you're going right now is exciting i think uh you're heading in a direction and we all kind of follow suit on your education um your experience with vast amount of notes and real estate your successes and your failures um i'm gonna if no one has any more additional questions i want to wrap up um we asked you a question you know with everything going on there's a lot of investors on the call who really don't know where to go when to go is there a way for you to assist them or consult with them or give them a direction of what they should do when they get stuck is there any good reading material or podcasts or whatever that you can suggest to them that they can turn to for some good ideas um yeah i think uh i mean i'm always listening to just different new podcasts because i've been diving so deep into uh into you know the multi-family side and i've actually done a couple of them so i mean whitney sewell has a daily podcast on real estate syndication so if something i said triggered and you want to learn more about that side of it that's a key one um on the note side i mean these forums the group that you run i think you do better in the forum where you get live live feedback uh in many cases than uh you know then then just uh podcasts um you know networking with uh um you know as the virtual conferences you know come around just you know listening to the other speakers that bill was on before um you know bill puts out a lot of good content too um you know there was a bunch of two or three different conferences in the last couple weeks you just gotta most of it comes from interacting um and being out there and talking one-on-one and building building uh you know a team of people that you can communicate with ask questions and speak freely and you know they're willing to help each other and uh you know there's it's not really competition there might be occasional time where you know somebody did somebody you know might have got a loan oh i saw that when i would have wanted that one but most of the time it's it's cooperation there's enough deals to go around and uh you know a rising tide uh raises all ships i've always had that mentality you know it's like the you sign an nda for the for the compliance of it but you know it's not really you know enforceable so like i was often i was not you know because it almost seems like you're the broker chain guy if you start so i don't get so caught up on on other stuff other than doing it for compliance purposes it's like you know there's deals i've kind of done on a figure out if somebody's actually gonna make money on a deal first before you start figuring out and use you know most people if you're providing value they're gonna you know you're gonna you're gonna work out a fair a fair deal so you mentioned a name someone missed the name uh you mentioned the name again of the podcast um oh uh whitney sewell is the the real estate syndication show the daily real estate syndication show i'm on december 11th um apparently it's a hundred thousand downloads so we'll see if uh we'll see if it works i've always been told i have a face for podcasting so yeah so people want to know about puerto rico though what area are you in puerto rico and um what are you worried about my address is no um i live in condado um condado is a suburb of san juan it's uh right on the beach it's uh you know there's a strip of nice hotels um if you want to live in a golf course community like dorado is out about 30 minutes east and then there's a bunch of areas i'm sorry what 30 minutes west there's a bunch of areas 30 minutes east and then there's rincon as far on the west coast that's like more like hippie california surfer area um yeah there's something for everybody there there's rainforests and there's a there's a zip line i actually was invited to go on i think the longest zip line in puerto rico on on sunday but we've replaced it even though i've lost 50 pounds i'm still uh i'm still a little bit close to the weight limit for the zip line so i uh i declined uh wait for a punch line that one's uh no no here's okay you you have to you may have to believe this but my friend was pushing me to go and uh i said i i can't you know really the reason i'm not gonna go is i have a medical condition he goes oh yeah what's that i guess i'm a all right oh all righty yeah on that note [Music] you have some people saying hello to you as well on here i know you're not tuning in on it um you hit by hurricanes and if someone asks questions of hurricanes and floods are you dealing with any of that kind of stuff down there there was the bad hurricane in 2017 hurricane maria after that there hasn't been anything significant um you know there's there's there's little low-lying areas i mean you know that just like miami sometimes the roads i mean we don't have the same drainage you do in like uh you know new york but there's parts of new jersey that'll get a flood on a really heavy rain yeah um but yeah no overall i mean there's a costco there's a walmart um 95 time i think i'm you know just think i'm in miami because like you know people speak spanish and english um and then five percent of the time i'm you know think i'm in you know a third world country and real quick you didn't mention it but i know this from talking with you do you have to be there 365 days a year no it's 183 days um in general i mean there are other you know there's a closer connection test i mean you know i tell people you generally you know have to make the commitment to move here yeah yeah it's not a kind of thing where you literally get on a plane monday morning you leave everything else in your life the wife the kids the dog on a plane monday through thursday counting your days that that doesn't work but i mean if you're if you're substantially moving here and you're here six months in a day but you spend you know a couple months in the states visiting you know it's and you gotta consult attorneys i mean yeah there's tons of good if anyone's if anyone seriously wants to look into it i know it there's a number of resources i could direct you to um accounts attorneys and uh you know i certainly encourage anyone who's really think of it come down and visit and hey it's one of the only tropical vacation spots you can get into right now because uh um you know it's u.s territory so you don't need a passport you don't need to go through customs just uh get on a plane and show up yeah um you know i'm sure your wife won't mind all of us coming over there and say hello uh one quiet quest asked the question how'd you lose 50 pounds um keto low carb um i also quit drinking for like three months uh during the lockdown um but yeah the low carb keto diet um i i love that i feel good i still i still keep low carb and uh you know after three days it was uh you know it wasn't much keto flu it took a couple days to adjust and then it was it was great i was off to the races yeah that's cool stuff man i mean no when going back forward with you privately about that stuff it was a huge concern you had that you just finally made the gut wrenching decision and kovac kind of helped out with that i'm sure um i appreciate it if if there's anything i can give out to the people too jack does have some deals that he has some slideshow i can definitely you fill the form out i'll repost the form link i kind of put it together real quickly earlier today i don't have the automatic email set up like i normally do but if you uh do want to get on there i will uh i can sing you his powerpoint jack that's okay for me to send out um i'll i can do that and allow people to uh you know get your powerpoint what deals you got going on um yeah they're not the one i sent you is like i i that's that's actually that's like the entire slide deck that's not that's sort of like a internal date so but i have a i have a better i have a more condensed one you can send a link out and there's actually a corporate overview on the website too uh yeah if you go to the corporate overview page that is sort of the high level one but yeah we could put together a custom one to send out actually for people who sign up that there's just some slides that are just old on the on the one i sent you that uh you know some of them yeah share that one i'll just hook up with you later and figure that out um i thought people have done 75 pounds recently um i series on uh he's on two months on keto now and that's 75 pounds right um which is awesome i mean it's you know i didn't mean to turn us into a weight loss competition but uh you know it's been it's been fun to see you uh get healthier i think we all get healthier 75 is impressive i mean you know i started at 316 pounds though so 50 was like throwing a deck chair off a cruise ship um you know this last 20 or 30 is gonna be the hard uh you know the harder ones i'm starting to work i'm starting to hit the gym and uh hopefully if we do this again in a couple months hopefully i'm as thin as you are um yeah well my wife is appreciative of the little competition we had to uh you get us down a little bit away i think i'm down 20 something pounds myself um so it's good to see uh hopefully you continue your weight loss and your healthy eating habits what not um it's getting close to 6 30 here i know this absolutely a happy hour um i'm sure you guys are all having a little bit of drinks on the side here but jack i appreciate you tuning in and spend an hour of your time to share your state of the market what's going to real estate in your mind your your ideas from your experience but a little bit about where you're at now because a lot of investors who saw you speaking at all these new conferences over the years um wonder where you went so i know that that's been a big thing um so i'm glad you kind of tuned in let's just pick your brain for a little while um and go from there so if you guys have any additional questions feel free to post it here and i'll uh i'll make sure to get it to jack or whatever um goes on um but again group i appreciate you joining us a little bit and uh let us know if any you uh guys need to know about we'll pass along awesome thanks for having me again dave this was fun we could do it again sometime if you want and uh you know enjoy the rest everyone should enjoy the rest of your friday night and your weekends all right guys appreciate it.