Follow The Plan: Interview With Ivan Barratt from Wheelbarrow Profits

 Follow the Plan with Ivan Barratt

Note: this is a video transcription using voice to text technology. Please watch the video for the full effect.

00:06

Hey everybody this is Jake Stanziano, host of the podcast here with my co host the multifamily mentor the coach chef the father six the best selling author, the G Daddy, Gino Barbra Jean. How’s it going,

00:17

Mr. stanziano? I’m doing good. How are you doing bro?

00:20

I’m trying to make it happen we’re having lighting issues on my end we got two more weeks of construction and then we’re back in the office so bear with us folks. two more weeks but the good news is you got two more weeks to secure your seat. Your ticket for the live event in October October 6 and seventh in Nashville multifamily mastery to Gino What are folks going to pick up

00:43

First of all for all YouTubers I’m going to call Jake the Prophet today because he looks angelic as our guest said so other youtubers you see the light shimmering down on him so he’s being prophetic today so I think I’m gonna let him run with the show

00:57

Give me that d3 baby give you that d3 I’m soaking it up right now

01:01

5000 I use a day birth anyway at the multifamily mastery live to it’s just like last year on steroids buy write, manage write and finance right we got some fantastic speakers there as always, it is not a run to the back of the room grew show for sure we’ve got to have our entire team there. We’re gonna be taking down a deal we got our first syndication in the hopper so we’re gonna be teaching about our syndication and walking you through that. I think it’s just a great place to network to meet people you’re going to find you’re gonna meet your partner there, you’re gonna meet your accountability partner there, you’re going to raise a lot of money in that room, you’re gonna meet all of our vendors. I mean, what else do you want? But say you missed the profit.

01:38

Do the profit says actionable content. All right, this is not this not about sales is about you getting there and learning for two days networking and growing your business period. And that’s it. So further ado, we have a very special guest today Ivan Barrett. He is a multifamily owner syndicator and specializes in FHA and agency finance projects since 2015. Ivan has raised nearly 30 million in equity. Currently his company’s managed well over 150 million in assets compromising nearly 3000 units so further ado Ivan, welcome to the show.

02:15

Hey guys, it’s so good to be here hanging out with you guys for a little while I’m really excited to chat real estate with both of you How are you doing? I’m doing fantastic brother You guys go back and forth I forgot to get on the ground and do some push ups and like get myself give myself a little winded here because I’m all jacked up

02:35

you can’t get energy on this show you’re not gonna find anywhere my friend nowhere

02:39

nowhere I’m gonna put the coffee down I’m going to drink a little water I’m ready to roll with you guys

02:44

well well let’s get into it then you went you just told me a minute ago you went from a duplex to 3000 units Something happened in between there you want to at least tell me how that got started?

02:54

Well you know it all depends on where you guys want to go I mean between a duplex and where we’re at today i think i i hit every branch tripped over every rock you know fell over every route in the forest just tried to not fall over or hit the same one twice. But very lucky. My my father is an attorney and he owned a bunch of rental properties growing up I had an uncle that owned a little apartment complex that he ran sort of mom and pop style and when I graduate high school my dad gave me Rich Dad Poor Dad and told me not to be a lawyer because that’s what I thought I wanted to be said Don’t be like me be better be an entrepreneur and hire great attorneys. You don’t think in Hey, this real estate thing sounds pretty cool. You just have a bunch of rent checks come in and I don’t have to work what you know what could be better than that. So it turns out it’s a real job you know, learn some lessons the hard way but in 2010 I started my own business there Asset Management we call it BAM now we’re the BAM fam. Hey, we today we manage several 1000 units. And we we focused on larger apartment communities. We’re vertically integrated, we’ve got team all in house and every aspect of real estate and you know things are things are getting fun. Things are getting fun. Where did you start buying your assets. So I’m in Indianapolis, Indiana, when I graduated college, where I actually went to the business school, you know, back in the in the late 90s, early 2000s they let anybody into business school I still don’t know how I got in there compared to today, but walked out with you know, some knowledge on how to work in Excel sheets and basic fundamentals of real estate. My dad says hey, all all max you on your downpayment. If you buy a duplex and live in one side and run out the other, you go buy a single family house or on your own from like okay, I’ll give that a try. So he sort of pushed me into house hacking a little bit and at the same time Time started working for a real estate developer at the time that’s what I thought I wanted to be I wanted to do big speculative deals build it sell it you know I’m rich (cursing) flipping flipping real estate right?

05:12

So what (cursing)

05:14

on your show yeah whatever you want man bring the pain be real my friend

05:20

you know and in 2007 2008 comes along it ends up being the biggest gift of my life because that young stupid cowboy that’s all real estate was easy got slapped in the face and had to hit the reset button on everything and again that’s that’s when I started the property management company first and worked on scaling that managing effectively for other people. So I could start buying my own properties as well

05:47

what was the biggest lesson from that and that slapped down

05:51

well you know that there’s a lot to unpack there the biggest lesson would probably be you know what can go wrong in real estate if you miss judge or miss time the market and when you’re doing development when you’re flipping deals or doing ground up construction you know if you screw up one thing your equity can go poof and so when everything’s going well it seems great it seems sexy there’s these big returns but you’re not playing the cashflow game at all You’re playing the capital gains game and I’ve forgotten that that that lesson in Rich Dad Poor Dad and and got first hand exposure to what can happen in real estate if you don’t have that cash flow you don’t have that income property and you’re just betting on the come

06:37

Ivan you didn’t forget it there just wasn’t that there back in Oh 708 the risk premiums cap rates were five the T T bonds were three or 4% whatever they were there was no cash flow back then correct I mean so it was all speculative. It was all like hey, you know what, I bought it for this I’m a flipper to this and it was time to be correct.

06:56

Yeah, you were absolutely correct. I remember getting on loop net and underwriting deals just just to say okay, what would make this a deal and the delta between what I could pay for a property cashflow income apartment unit versus what other people were paying for it was was enormous. And you’re absolutely right people. People that suck in the fundamentals were unable to purchase a lot of property in those in those days.

07:22

I think Jake loves the book Ray Dalio I always talk about it. He talked about two things blind spots and egos right I think back then if you’ve been a little bit older a little bit wiser you’d have seen that hey, listen, I got to put pull the brakes the brake and a lot of people missed it right because like I said there’s no cash flow the prices are crazy Jake and I like to focus on by right managed right finance right? What what gems do do do you think is most important and multis? Yeah, well,

07:49

you just reminded me my old mentor would still say today in real estate what you don’t know that you don’t know will effing kill you and that’s a that’s a big lesson there in your question was by right What do I do to buy right managed right today?

08:09

What is your biggest thing is Jake we love to teach you have to buy the asset properly. You have to manage your property. Yeah, that’s why it’s a wheel barrel managing is and going and finance right? Which one of those three or all three do you think is what is most important in real estate?

08:24

You know, it’s it’s a trifecta, right? If you fail to execute management, you can take a great deal and screwed up in a week. And if you’ve got a really great management team, you can take what would have been a mediocre deal and eke out a very solid return. For us right now on the on the buy right? aspect, we’re looking at 200 opportunities to find one. And so when I when I talked to newer real estate entrepreneurs, one of the first things I say Listen, if you haven’t underwritten a couple 100 deals yet it’s not certain that you don’t have a good deal on the line. But it’s a big red flag if you think you got a deal and you haven’t done that much underwriting

09:06

so what do you look for in a deal as far as buy right what are the parameters you’re looking for to market and the actual returns on the deal?

09:12

Yeah, so today we were a little bit different than we were a couple years ago we were less cap rate chasers. So now we don’t we don’t really chase the cap rate going in we’re more concerned with what’s the cap rate going to be in 12 months, 24 months 36 months and we are staying away from heavy value add deals all those deals are in the hood right now. They’re good value add deals are being bid up to a price that doesn’t justify the risk. And so we’re finding value in higher class assets. B plus a minus assets in a in a locations a sub markets, and there’s equity out there that would take a slightly reduced return. If you can take most of the risk off the table, and then we end to do that we marry those deals right out of the gate to long term financing, we stay away from the banks in almost every one of our deals.

10:11

So on your deals, you syndicating your deals and raising private money to the deals.

10:15

Yeah, so it’s all syndication. So we keep our LPs in the loop every step of the way, we’ve got about 80 LPs Now, over half of them have done two or more deals with me. And we’re typically oversubscribed, finding equity, for me is not the problem right now as much as finding the right opportunities, because the quickest way to lose my investors is to do a mediocre deal just to get the fees out of it. And we built this company out of the ashes of the Great Recession, to be patient to be disciplined. And that’s why we we started the management company first. I’ve got almost 70 employees now, and I don’t have to buy a deal, or sell a deal or refinance a deal to make payroll. And I like being in that position. And I like to be able to put food on the table without having to having to get too aggressive on the acquisition side because i think that’s that’s where a lot of this is going and we’re gonna see a correction. some point down the road winter always comes no matter what

11:17

a

11:18

lifetime. Yeah, Jon Snow on you right now he’s bringing

11:23

john john snow stole that from a great book called The fourth turning. And it talks about how nobody knows how cold it’s going to get, how long it’s going to be, how fierce it’s going to be, or if it’s going to be mild. But winter always comes

11:39

into your point, these guys that are buying these deals right now that that are the 80s vintage and they’re they’re really jacking up the price on them because that’s what they’re comfortable with. And they keep compressing the returns, they’re even reaching into sub markets now and paying what they’d pay in a primary market. And that’s that’s what scares me because we’re looking at a deal right now. We’re right there, it’s probably $400,000 too much real damn close. But I know that little extra reach up, you know, once you start going there, it’s gonna it’s gonna put over the top and if it does happen to turn and we get caught, that’s gonna wipe all the value off the off the table on this thing. So you just got to you got to be patient, be persistent on this stuff.

12:17

Yeah, the we the way we play that because we’re in tertiary markets. We’re in secondary markets, Indianapolis, we love big 10 cities about several workforce housing deals in big 10 College cities, where you got a university, you got a hospital, diversified employment, lots of service jobs, and you can typically get more yield there. But yeah, you’re absolutely right, returns are being compressed. The key is, though, equity is still demanding of an income producing asset. So for us, in order to minimize that risk, like you talked about, we will go straight out of the gate with agency or even HUD financing, which a lot of people don’t know this HUD, finances, ABC, and D assets. So you can get your shiny new assets finance through HUD, and that pushes out our maturity. So we like a really long maturity, you know, you might not be able to cash out as quick or, or refinance as quickly. But my investors, their first rule is don’t lose money. Their second rule is remember rule number one. And the third rule is how do we get yield. And so we’ll go out and buy a really solid B plus asset A minus asset in some of these secondary and tertiary markets. Only if we can fix the downside.

13:35

You’re going out 40 years on these things. 3540 how long you going out?

13:38

HUDs 35? And then Fannie, we’re going out in between 12 and 15. Yeah, the only the only thing that would keep me up at night on these short term deals is if we see a 2007 eight again, capital markets freeze up. If you can’t roll over that debt guys, as you as you to know, you’re screwed.

13:55

We were looking at a deal is that it was a 4040 the other day, and I was just like, cuz the guy developed it. So when you’re actually building this stuff, you can actually go out even further than that, versus you like you typically

14:06

like before construction is a 40 year and

14:10

that’s and I’m like, because sometimes you look at how the hell does this work? And then you add that extra five years on to the app and it’s like, okay, starts to starts to make more sense that

14:17

That’s so crazy how the government actually can actually control the market and actually create a product out of nothing that would never work with a 30 year em, and then you look at a 35 year with a 2.9% interest rate. It’s like, dude, you’re giving money away to these guys for free. They’re subsidizing the builders. But I can understand why because it’s an asset. You got to get cluster creation out of it. You’re getting investors out of it. You didn’t get jobs out of it, you can get a beautiful asset out of it. But yeah, look at it. It’s like holy, I mean, I can’t believe they don’t look

14:45

remember guys, let’s remember, you know, we have a shortage of affordable market rate workforce housing in this country. And if HUDs not financing it, you know, there’s going to be a real lack of property of real property that people Can can live in you know that we’re not they’re not building any more of it everything getting built right now for the most parts shiny new class A assets yep so we see this this demand in the market and we still see rent growth at least in the Midwest for that for that segment

15:16

let walk us through your first syndication I mean what What did it look like what were the splits what was the raise what was the deal what

15:22

was the first indication oh man What a mess

15:26

good that’s what we’re gonna hear we like messes here.

15:29

Yeah my first true syndication was 60 units probably paid a little too much for it. didn’t do enough due diligence. And I you know, I just had a few friends and involved but I had to raise about 600,000 bucks. We got the 60 unit deal. We still got it we refinanced it on a Freddie Mac small balance loan. It’s a great little cash flow deal for us now. You know, the cautionary tale there is, if you’re a visionary entrepreneur like I am, you need an integrator on your team. You need a grinder. You need a guy that’s just got his nose on the grindstone. He’s

16:05

gone EOS on SG now. He’s going EOS right now, oh, yeah. Big time, man,

16:09

you need that integrator. I, you know, and I was just lucky, my, my partner, I’ve been together for three years. And he is that that guy’s the CEO of my company. He’s the peanut butter to my jelly sandwich. And I tell you what I would have been, I would have screwed it up, you know, royally. And irrevocably? If I didn’t have the right the right partner on my team, who can who can fill in that other half? From from my weakness standpoint, he’s, he’s 10 times smarter than I am. Maybe almost as good looking. But But definitely 10 times smarter.

16:42

So let me ask you, what was the of the other pain points mean? Was it it was hard to raise the money? Was it hard to find the deal? What did you like about the deal?

16:51

Yeah, you know, in those days, I liked it, because it was a 16 a deal that I could get for a good price and good cash flow. This was this would have been early. Excuse me, late 13. When we got that under contract, workforce housing, great school district. demand in the market, lots of nice homes in the area. That’s what we liked about it, raising the money. I had already done a couple of deals where I just brought in one partner. Oftentimes, I’ll recommend, you know, you can do like a syndication light if you’re doing a small deal, and you’ve got some existing relationships. But no, the raising the money for me was not too hard party than then. Because we had a good way a good business plan, we had good projections, we had dotted most of the i’s and cross most of the T’s least we thought we had. And you know, those early deals, you’re going to hit bumps in the road, and your investors want to see how you respond to that. And I tell you what, every one of those investors has done more deals with me because of how I reacted to the bumps in the road, how we stayed transparent. Right? And and we’ve just continued to up our game.

18:04

So what what are give me a couple tips for raising private money, since you seems that seems like you have that skill set any any big tips for the listeners,

18:13

my biggest tip is, as an entrepreneur, a capital raiser, my biggest tip would be spend a lot of time listening to great content, on developing business in developing yourself, because raising capital has a lot to do with selling yourself. And so the good news is, sales is not something that we’re either good or bad you’re born with, it can be learned. And you have to be able to convey an idea and get buy in from a potential investor. And that’s more about selling yourself and learning how to how to sell just as much as it is understanding the real estate. I love that. So for me, I and I raised that 30 million, I would say, somewhere between 25 and 27 million is all through networking. It’s all through referrals. It’s there getting to know people, establishing relationships, finding common ground, staying in front of people, you know, crowdfunding can be a great idea. Getting on bigger pockets, advertising, your deals, that kind of thing. But I think a lot of people fail to realize just how much money is in their own network that they didn’t even know is there. Right? Like there’s no way I’m going to go to my doctor’s office and get a checkup or go to my dentist’s office and get a checkup and not find some way to get the to get the conversation on real

19:42

estate and what I do, why is everyone everyone getting these physicals and asking the doctor for money, like

19:49

the money you don’t ask for me but make sure they know what you do every listen everybody wants to be in real estate.

19:55

For you, Doc it’s a funny recurring thing. We’ve heard a bunch At times guy would be like, yeah, yeah, he was down there making sure that everything was good. And then I looked him in the eye. And I said, ever thought about real estate

20:09

doc? I haven’t tried that sales approach yet. I haven’t.

20:12

There’s the Prophet of the Prophet says that you got to try it right?

20:16

You look him in the eye, and you ever thought about real estate friend?

20:22

Hey, listen, don’t knock the profit until you’ve tried it.

20:25

You got to go there, man. And that’s when you can get when you can get comfortable with someone at that level, and you know each other that intimately. There’s no way he’s not giving you money, right? You’re halfway there, the best

20:33

thing you can do is get one, get one doctor and treat them very well. And he will tell all his friends. Yeah. And most people are like that, if you treat them well, and you give them a good deal. They’re gonna tell everybody. Yep. And that you can really build some great momentum just by getting to know people getting them in your deal treating them well. They’re going to tell a friend or two.

20:54

I love it, Ivan, what are your typical splits on deals, LP GP structure fees, and all that.

21:00

Man, you guys like to get deep here, I

21:01

love it. He’s looking down the pants, man, he’s like, it’s like the agency wants to see the full picture, I feel something

21:06

down here. I think it depends on the asset of vintage. But typically we’re paying a press between seven and 8%. And we’re typically splitting deals 7030 there’ll be a scenario where we start doing IRR hurdles, because we’ve had a couple deals where we hit it out of the park and the split should have gotten a little bit better for us. So that’ll that’ll change as we get a track record. And we we we get a little better for the more complex fee structure we typically roll in or acquisition fee back into the deal is deferred as a deferred profits interest, which allows us to get a return on that cash from day one. So it’s like me investing hard cash, as well as real cash we put in, you got to have real money in the game, or you’re not going to attract smart people. And then from there, you know, we’re typically charging asset property management fees because we’re we’re vertically integrated. And that’s that’s really about it, we try to keep it as simple as possible.

22:09

It’s funny, I haven’t you said, your partner with you or your partner is smarter than you. I’ve learned syndication on the show, I’ve learned from multiple guys, how they structure their deals. And it’s sort of very similar a lot of guys, but a lot of guys aren’t vertically integrated like you so you can control the asset and you can drive the performance of the property. I think that’s a huge advantage that you have a lot of other syndicators

22:30

Yeah, I’m not going to get a call from my property management company and telling me that they’ve they’ve transferred the property manager that I’m in love with to a different property because they need her somewhere else. We sign those checks. And our property management company is a loss leader, it doesn’t make a lot of money. What it does do is it builds a phenomenal machine. And then we take whatever little profit we have, and we reinvest that in our people and our tools. And just between YouTube and me, just between us. You pay people more money, you tend to attract better people who tend to stick around longer and do a better job. And that’s the key. That’s the key to property management. You got to treat your people like gold, you got to find ways to make it more fun. Interesting, because it’s still gonna say it’s still fucking property management. It’s hard. It’s hard work hard man. And the people that do it. The people that do it have to work really hard to get it done, right. And so we, we just try to be mindful of that and figure out ways to keep our culture fun. And it could it’s not always going to be that way.

23:32

I love that. I’ve been able to build your systems, your teams up from, you know, a couple of a couple duplexes to managing 1000s of units now. Yeah, it’s all about the

23:43

team. I and I took way too long trying to do it all myself in the beginning, when I started my company, I had a bookkeeper and I was everything else. leasing agent, maintenance coordinator, property manager.

23:55

We’re here what he’s about to get a diamond mentality right now. Oh,

23:59

yeah, I waited way too long to start hiring people. And I’ve made every mistake in the book on hiring people. But eventually you tinker with it. You don’t give up you stay persistent, you start finding better people. And And now, the machine. The culture here has its own momentum. And it’s it’s really fun to watch the founder.

24:20

Well, you know, that takes time though. I mean, because when you’re first starting out, it’s just like buying deals, right? You don’t know or like I like to sell kids you have your first kid you don’t know what you’re doing. By the time

24:30

you know why you’re gonna get it right. It’s gonna go you’re gonna do it and figure it out.

24:34

Yeah, and you have to have that leap of faith. By the time you’re, you know, you’re hiring the new guys out, you’re like, Okay, I’m gonna figure out where I have to generate revenue to pay this guy and then then it’ll just appear but I think it’s the leap of faith. I think you need to have a partner push you to do that. Because if not, you won’t you won’t get off your ass and do it because that’s the bottom line. You’re just like, I’m comfortable. Having the bookkeeper. I’m comfortable being the maintenance guy and the leasing agent. So I’m from there. When you start building that out, I mean, what platforms do you like to use that you guys use that folio of? What kind of software and stuff do you guys use? Yeah,

25:09

when I was managing the small stuff, I started out on propertyware. And then we made the switch to AppFolio A few years ago, my, my team loves it more. And then somewhere down the road as we get more institutional will go up with one of the big boy platforms. But absolutely, it does a lot and it does it very well. Yeah, for us, we have to have a counting in house some accounting, because of the compliance with HUD, they don’t just give you the money and say good luck for 35 years, there’s a lot of brain damage. And I read this great book A while back, it was the founder of FedEx Mark garofolo. I probably butchered his name, but he’s got a book called copy this. And the basic premise of the book was anybody can do this job better than me. And using that, and then a line from Tim Ferriss, they’ll repeat a lot is you have to learn to let little bad things happen. You have to learn to hire people, let them screw up a little bit, let them let them know that you’re not going to be upset about it. Right? And let them learn and grow. Otherwise you’re gonna end up just being a micromanager and the whole thing tends to fall apart

26:13

issues board right and see issues board from from Dalio basically you cannot try to suppress this stuff because if you don’t, you got to get it out, put it on the issues board and try not to let it happen again and learn from each one that takes place because if you try to like come down on people the first time they make a mistake, you’re gonna kind of sweep it under the rug and then that’s when the shits gonna really exacerbate and blow.

26:31

Yeah, yeah, you’ve got to build that environment where they know that they can they can screw up and come forward to Hey, I screwed up, right, but this is how we’re going to do better next time Absolutely. wins. Ray Dalio, his other book coming out, I’m waiting for that one.

26:44

I saw something that he’s got, like some some economics book coming out. But I don’t know when, you know, I think that’s something different than what you’re asking about. No,

26:52

that’s what that’s about. He’s gonna come out with economics and also his investment decision, like how we make decisions, how he views the how he views investments, which I think should be pretty exciting as well.

27:02

Yeah, I saw some ad for today and LinkedIn or whatever, but I think good ones coming. Yeah,

27:07

we must be getting close. Did I love Ray Dalio fan? Love him. Yeah.

27:13

One last question. Before we go to the short ones, what is your best real estate investing advice or tip for the listeners?

27:22

This, this game is really about just being persistent and don’t quit. And I would say it’s a lot like working out, it’s the little things that you do every day to move the chains or move the needle, right? You’re not going to go to a one day thing. And all of a sudden, you’ve got everything you need, go to a seminar, get education, right, get that foundation, and then it just follow the plan. Right. And if you plan to change, you can change it later. But, you know, stop, look at all these shiny objects, if you want to do multifamily, get some gratification and then just start doing the little things every day that take you that direction. And don’t worry about looking up at the top of the mountain just focus on putting one foot in front of the other.

28:06

And on the personal side of things, what would you say your best habit for success is something you do on a daily or weekly basis that that helps you get in the right state of mind. And yeah, in TV,

28:17

I fill my brain with content, it’s less real estate focus now because I’m up and running on the real estate, and it’s more self improvement, self enhancement, and even still, I had my first sales job at age 15 I had to get on a bus because I didn’t have a car yet to go sell shoes at the mall. And I still listen to sales training, business development books, and that keeps me motivated. It keeps me sharp, it doesn’t let me it doesn’t let me relax on what I know I need to be doing and so in the car, washing the dishes, you know getting up in the morning whatever it is, even if it’s only 15 minutes in a day I’m getting that content in every day.

28:57

I’m really with you on that because we speak so much on the podcast to different guys so we’re getting that content you know all the time I’m more focused on personal development personal growth I’d rather you know read Ray Dalio three times and pick up another real estate book at this point here so with that being said what’s something that you’ve you know gravitated towards the last year or so that you’re like man I gotta I gotta let people know about this from this book has really impacted me and I want to share it

29:25

man a book just in the last two years

29:28

yeah it’s something I mean cuz everyone throws that I read rich dad and it was a greatest thing ever and we kind of touched on that and that’s that’s a cop out right? So what’s something that it could be on the personal growth side of things? what’s what’s something that you want to recommend at this point? So

29:40

the books that I’ve read the most in the last few years, I’ve listened to it five times now? That book Yeah, that book right there? Well, yeah. If you’re not first you’re last by Grant Cardone.

29:50

If you’re not Fred, no, don’t know that’s, that’s like Ricky Bobby man.

29:54

Dude. It’s the story of Ricky Bobby. Ricky Bobby I don’t know what to watch I do have my hands here guys

30:04

did your naked Ricky Bobby come up

30:08

get the hands show from the from Talladega Nights but I’m doing it right now for your listeners it’s a phenomenal book on just lots of cat information on just how to hustle the right way and how to get shit done it’s awesome man I think it’s his best book personally

30:24

have to have to check that one out and I think that’s you know going to that point it’s like guys like grant and guys like Gary Vee you know on those days where you may have got hit in the gut a few times you put that to reset because you are going to get those punches you’re going to get that stupid you know personal injury case where they just slip and fall bullshit right? Or the ass

30:43

green is here man. It comes with the territory that’s what insurance right?

30:47

You get exactly you gotta build take a few gut shots and then and then reset and get your mind right to keep pushing

30:51

forward so you

30:53

have to man I got awarded 60 million in assets this quarter so and we might have one more deal so I gotta I gotta check my own self from the guy cuz it’s fourth quarter sprint time

31:05

Yeah, no, it’s real man. So what about a value add strategy I love asking people this you know a lot of people like oh well we love rubs we love doing like dog parks at the bottom of the garden units what’s what’s one strategy that’s your bread and butter it’s your it’s your your eye right dive you know hot hot hot man What are you what are you going to you’re on the you’re on the one yard line. What are you punching in man?

31:24

We really finding deals where we don’t have to do shit. We just raise the rents

31:28

Yeah, no, that’s easy. We

31:30

work really hard for that. That’s our favorite. That’s one of the few 100 opportunity deals know what’s what’s our Hartley’s yeah yeah so it’s not rocket science guys we’re going in you know we’re upgrading the things that are easy to upgrade with our without a lot of downtime and without a lot of hard work. So countertops, lighting, door, hardware, flooring, those kinds of things that are easy to turn, and easy to get that unit backup. amenity wise we’re typically looking to upgrade in a minute or two whether it’s new gym equipment, bark parks, you know now, nationally, the highest rated amenities are pet amenities, so pet amenities are actually surpassing human amenities in apartments.

32:22

says it all my friend

32:23

Yes. And you got to get that puppy scooper right that the green puppy scoop gone you know

32:28

you can’t go wrong with the green puppy scoop whatever the heck that is. Did you know The

32:33

green puppy scoop the back comes out yeah your maintenance guys love it.

32:36

So that’s below my pay grade now.

32:42

So what project excited about right now working folks get a hold you

32:48

we we’ve got 90 million in assets in our pipeline to close this year. So we’re super excited. They’re they’re cash flowing right out of the gate. They’re gonna have some great debt on them. And thanks to the man in the White House, there’s a lot of bad things we could say. But the accelerated depreciation in the first year losses are off the charts. Even with the positive cash flows I’m sure you guys know I’m really easy to find if you can spell my last name correctly. Ba ra TT Ivan Barrett. I’ve been very calm bear data management calm. My assistant who runs my calendar and news is happy to put anyone on a phone call with me is 317-762-2625 you can’t text her gotta call her 317-762-2625 and I’m happy to talk more about that. And I love talking to young entrepreneurs and delivering a little bit of value in hopes they don’t make the same mistakes I did.

33:45

Amen brother keep the party going if you keep buying the depreciation keeps rolling just don’t quit right? That’s right, man. Just keep rolling. Gee, Dad, what else you got?

33:53

Um, I love the profit. Roll this one up. I mean, it’s a great quality and I like we got down in his pants a little bit. He said we got to get a man. On the knee. We that’s we like to do I mean, we like to bring content, it’s actionable. I’m hoping that Ivan can make it to our live event in October natural things be great addition. I think I love strategy, I think sorry for duplex. I like his dad saying don’t become a lawyer. I’m actually going to real estate. sales training is wonderful it sales is a skill that we all need to learn. We’re all selling ourselves every single day. So I think that’s very vital. And the fact that he’s built a behemoth and he’s got a vertically integrated company. Because a lot it’s not about how much money making the property management is but it’s about how you can actually scale up these assets and actually control your business and the more controlling your business, the more money you’re going to make.

34:46

Yeah, and a lot of guys you know, out there, syndicating and they’re not doing the vertical integration route and we did it a little bit differently as our listeners know where we just we bought our own assets. We’re vertically integrated. Now we’re kind of getting into the syndication realm of things. It’s It feels good knowing that you’re in total control. And I think that’s the one thing at the end of the day, having having the property management, having the brokerage going, having the education, having having the marketing arm of the company, when you’re in full control, you’re not reliant on anyone else to do anything for you. And therefore the investors are gonna see that and know that when a change needs to be made. And you need to pull that manager out of there, you’re putting the new person in. And if you need to shift them around, for whatever reason, take one from here to play chess with it, you’re the one doing that for the better of the organization and that investors want to see the returns not not another guy that’s in you know, a different market or something who’s invested in other deals that that does a great point that you brought up. And I do really think that you know, when you start to partner with folks on deals from, from a capital standpoint, you want to get with the guys that are in total control. And

35:46

I really appreciate bringing that up. And we’ve got a deal right now where we it’s one of our earlier bigger deals, turned 37 units, and we misjudged the rehab, there’s a lot more deferred maintenance, even after doing all the due diligence than we thought there would be. And because I’ve got those guys on my payroll, I’ve cut our margin out of the renovation project. And so now we’re literally just doing it at cost. Or normally, I’ve got some margin in there for project management because it does take project management wouldn’t be able to do that, right? If we weren’t vertically integrated, so it’s harder, but I have to stress how much it’s worth it. If you’re gonna go big and you’re you want to be around a while.

36:30

Yeah, guys clap. classic example. We, you know, we’re going through major rehabs right now, we got decks that are being constructed, we’re not paying fees on top of that our guys are doing it and then and to his point, that’s the kind of stuff that saves money because at the end of the day, this game is about income versus expenses when you really get down to it. And if you can control the process and reduce that expense side of the equation, you’re going to be so much further ahead of the next guy who subs everything out who just got into the game to be a syndicator. So, like what you’re doing, man, amen. Amen prophet. Thanks. Thanks, guys. Appreciate it. Take care, guys. Thank you. Great. Thank you guys really appreciate being here.