How To Earn Respect From Your Investors

So I didn't grow up in a very wealthy household, right. I wasn't taught a lot of these principles. I didn't understand that you could really control your money instead of having other people control your money. And when I started looking at these comparisons, people invest in a mutual fund, but the fees go off the top and then they make money versus investing in one of our deals where they make money first and then it, we have it, it's on us to make our own money so we get paid last. So we really have to work the deal properly. We have to make sure that it makes money because otherwise we don't make anything and I like that. I think the interests are aligned with our investors so much more because we get paid last, I love that, we're the last, right. The good thing about apartments is that gets housing and the type of stuff that we tend to bind is the working man's type of property.

Now same for self-storage, like you're building the self-storage, that's easy. People that need self-storage no matter what, like no matter what income level you're at, someone usually has the self-storage and once they get one, they keep it for life. The places that we're putting our money in our investments is Orlando, second fastest growing city in the country. No basements, high water table, so the people need storage, they don't have a basement. The student housing complex is that we're buying, they're really good metrics there, student housing isn't going anywhere, colleges aren't going anywhere. Our B and C assets that we're adding some value to the people need a place to live, so even during the recession, I just heard this, that so 5% mortgage default rate in the last recession 0.4% multifamily default rate in the reform.

Bridge loaning interest only bridge loans into nothing. They had a bridge to nowhere is what we call it. Where the complex that we're doing right now, it's a five-year interest only, but guess what, it cash flows day one fully amortized. So you know, we might get some additional cash flow during that interest only period, but then it's going to convert and it's still going to have a heavy cash flow component. So you really have to underwrite these deals conservatively. We underwrite really conservatively, we get into a deal and then all of a sudden it starts cash flow and it's like, why is this better? Oh because we been super conservative and our investors love it. Cause they're like, we're winning, they looked at us like, wow, this property is doing really good. You sat there and expectations and you know, really this the trick is always to set the floor. You set the floor, that's the only thing that you present on is the floor and then when you beat it, it just earns everybody's competence and respect and then honestly the referral.

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