Podcast appearances and mentions of james can

**Hi sweet peeps around the world❤

This week Hagsploitation month is killing it with another amazing flick, 1964's "Lady in a Cage"! Olivia de Haviland is amazing as a white woman realizing she hasn't done a thing for society. She is locked in a sensual elevator with  a buch of animals attcking her house! We also get gret value Shelly Winters, hot as hell James Can, a hobo, a Mary Son and the most dramatic ending ever!Plus, we find out Minnie Mouse is saving herself for marragie and Clarabell Cow is the Disney verson of Shellt Duvall!Lady in a Cage is avalible for rental everywhere! Follow us on Instagram:@Gaspatchojones@Homewreckingwhore@QualityHoegramming@Mullhollanddaze@The_Miseducation_of_DandG_PodCheck Out Our WebsiteIf you love the show check out our Teepublic shop!Right Here Yo!

Patrick starts the show reminiscing about last night's Family Rosary Across America and how important it is to pray every day Bill - Are Protestants invincibly ignorant? William - What is the difference between the Protestant and Catholic view of Communion? Patrick recommends “The Hidden Manna” by Fr. James T. O'Connor Lydia - Some younger women were wondering if they could wear sandals to Church. How do I explain it is not reverent? Paul - At Mass yesterday the priest talked about the Gospel of Thomas and how Anne was also immaculately conceived. Matthew – Do you have any hand-size book recommendations I could hand out for evangelizing? Patrick recommends Pillar of Fire, Pillar of Truth at Catholic Answers Abraham - What is your opinion on tambourines at Mass? James - Can people in purgatory pray for each other?

Swanner and Judd talk about Challenge; RuPaul; Trixie Motel; Orville; Only Murders; Snowflake Mountain; Big Brother; Pinocchio; James Can; Trevor: The Musical; and more! Left Click To Listen, Right Click Here To Download

Mark starts off this fast paced episode talking about his desire to ride solo, "solo patrol" no guest this week. Mark mentions that it's been a goal of his that he has chickened out on several times, calling friends at the last minute to sit in. Luckily Mark took the chance and didn't make any last minute calls this week because its a wonderful episode. Mark starts off the show talking about his Fourth of July at a secret NYC beach where the women go topless. Mark follows the funny intro with a story about two different things he noticed the last time he was at the NYPD Police Academy mind and it affects recruiting. Mark talks about the new physical fitness requirements for recruits. Is it really important for young Cops to be in shape? Them Mark dives in to mind blowing story of a NYC Bodega Clerk who is sitting on Rikers Island Jail held on 250K bail for killing an irate customer who dared to come behind the deli's counter to assault the Clerk. It's just more evidence that Manhattan DA Alvin Bragg is working to destroy NYC. Fear of being indicted himself the father of the Parkland Mass Shooter Robert Crime II is distancing himself from co-signing for sons gun purchase. Great actor James Can has passed away. A tribute to Detroit Police Officer Loren Court who was ambushed and killed responding to a shots fired call. A Brittany Griner update. Mark closes the show with a film review of the new Elvis movie. It's a great episode. Although Mark prefers chatting with guest he can definitely go "solo patrol" and never lose a beat or a laugh.

Today on the Good Day Download:A 16 year old is hailed a hero after saving 4 people from drowning, remembering screen legend James Can, the assassination of Japan's former Prime Minister, and the health benefits of blueberries. We discuss. Paul Rudd continues to be America's sweetheart. We discuss that, too, and so much more. Additional information available on GoodDayShow.com. Follow us on social media. Facebook & Instagram - @GoodDayRadioShowTwitter - @GoodDayOnAir

Does Covid diminish you… and what's the difference between soreness and weakness?  We bid farewell to James Can and by the way:  How's Your Traffic?  A few fireworks mishaps and watch out for that rooster.

THURSDAY 7/7/22: Political ads continue to go off the rails. “America's Stonehenge” get attacked. James Can dies. A new hangover cure may not be as fun as it sounds. Florida's coast is running into a pungent problem.

Dan has a rollicking conversation with the great Gianni Russo, best known for playing Carlo Rizzi in "The Godfather," which is celebrating its 50th anniversary. Gianni talks about everything — his relationship to organized crime, his disdain for James Can, killing a pedophile when he was 11 years old and, of course, his love of wine. Our host has dubbed this interview an instant classic. Not to be missed. Also on the show, our favorite wine expert Claire Coppi of SommTV shares some big news, and friend of the show, Academy Award-winning director Steven Soderbergh, offers his thoughts on Francis Ford Coppola's mafia masterpiece. Learn more about your ad choices. Visit megaphone.fm/adchoices

What's up, Rockstars! This week I've teamed up with champion CEO Liam Morrin and James Can (the man with the plan!) For the kick-ass complementary PART TWO of last week's session. This time around we focused on the controversial statement “You Are Worthy Enough” (Spoiler: it should not be controversial at all!) So take the next deep dive with us and let`s figure out exactly when you stopped feeling worthy of success, how it`s holding your business back and how it's holding YOU back. Hope you guys enjoy this episode, and we`ll see you in the flip, ciao!

This week I`ve teamed up with champion CEO Liam Morrin and James Can (the man with the plan!) to talk about the benefits of personal mindset coaching. Specifically our tendency to be less than present in our everyday lives. Why are we always thinking about the future, how is it holding us back and more importantly: HOW DO WE FIX IT? We took a deep dive into the hustler mindset, small day to day habits that hinder your growth process (and what your body may be trying to get from them) healthy hyperfocus and self awareness, among many other cool things your mind can do both for and against you. Hope you enjoy this episode and see you guys in the flip!

A story about sweat, garbage, terrible jokes, and a third arm. Listen in as me and my guest, Kenny, talk through this star-studded, greasy little oddball flick. Written and directed by Adam Rifkin (The Chase, Detroit Rock City, The Last Movie Star), this film has been lauded as a "pitch-black fable of show business at this sleaziest" by the Los Angeles Times, while also considered "a new low in cinematic ineptitude" by Rolling Stone. What is the truth? You'll have to watch and decide for yourself, but until then we take look at some of the more memorable and affecting elements of this film which has, in my mind, hands down THE best production design I've ever seen. You can just feel the oily condensation of the film's world. It tells the story of garbage man-by-day and amateur comedian-by-night Marty Malt, played by Judd Nelson, and his smarmy, fame-seeking buddy Gus, played by Bill Paxton with his typically awesome bravado. The two casually move trash around during the day, but when the sun sets Marty takes the stage and tells some truly awful jokes, with piss poor timing to boot. All while Gus yucks it up and howls his support. One day, hot shot agent Jackie Chrome (Wayne Mr. Goddamn Vegas himself Newton) offers to check out Marty's show which sets the two friends aflutter with excitement that their train has finally come in. Unfortunately things don't go quite as planned... But all is not lost, for shortly thereafter Marty wakes up to find a third arm growing inexplicably from his back. To Jackie Chrome THAT is a talent! Did we mention that this film also features Lara Flynn Boyle, James Can, and Rob Lowe? This movie is so delightfully weird that it cannot be missed. The film is currently available on DVD.

Moritz Seibert joins us today to discuss the benefits of ‘system diversification', the case for buying at all-time highs, how classical Trend Following is performing this year, the optimal amount of sample size for an effective backtest, the best ways to monitor risk levels, some tips for starting a new Trend Following business, some recommended backtesting software for retail traders, and how to navigate around your broker's negative interest rates. In this episode, we discuss: Why diversifying among systems can be beneficial Why buying at all-time highs can be difficult, but very profitable Classical Trend Following's recent performance versus newer methods Some good measures for monitoring risk Some tips for starting a new business based around Trend Following investing Suitable backtesting software for retail investors How to approach negative interest rates with your broker Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website). Follow Moritz on https://twitter.com/moritzseibert (Twitter). IT's TRUE

The presenter is James Thurston, G3ict, who is joined by Chris Misra, University of Massachusetts, Amherts.  SPEAKER: Please welcome James Thurston and Chris Misra.  James is the Vice President for G3ict, where he leads the design and implementation of new worldwide advocacy strategies and programs to scale up G3ict's global impact. G3ict is the global Initiative for Inclusive Information and Communication Technologies promoting the rights of Persons with Disabilities in the Digital Age.   Chris is the Vice Chancellor and CIO at the University of Massachusetts – Amherst.  At the University of Massachusetts Amherst, information technology plays a crucial role in many key areas, including but not limited to student success and engagement, research competitiveness, and multi-modal education.   Today they will be looking at how leveraging accessibility and inclusion can provide an adaptive and accessible multi-modal IT ecosystem to support campuses. Chris will review findings, digital inclusion gaps, next steps for improvements at the University of Massachusetts – Amherst and more!   JAMES: Our goal with this session is to share with all of you some detail about how the U Mass approach to being more accessible, more inclusive through technology. Through its technology assets and deployments and Chris and I over the next hour want to surface and share with you, I think, what are some valuable and actionable experiences from U-mass, that will hopefully apply to your own accessibility journey in your higher education institution. This particular session is the third in the IAAP higher ed series. It's also the first of the next three sessions, which relate to, and are sort of sourced from, G3ict's work with universities and higher education institutions, using our smart university digital inclusion maturity model tool. And I'm just going to briefly give you a little bit of information on that, just so it will make a little bit more sense as Chris and I start to have a conversation about our work with Chris and what Chris has been leading and driving there at the University of Massachusetts model. The smart university digital inclusion maturity model tool, it's an assessment tool and a benchmarking tool. And it's really to help universities better understand how their digital transformation, how they're using technology, how their use of data is either supporting accessibility inclusion of people with disabilities or potentially presenting barriers to the inclusion of people with disabilities, including faculty, staff and students. And even, really, the broader community where the university might sit. So, the tool itself, the assessment tool, it's made up of 28 variables, we call them enablers, and they define what it really means to be an inclusive smart university. They enable accessibility and enable inclusion. These variables, or enablers, contribute to the university's building up the capabilities that we know support greater inclusion in accessibility at a university. And these capabilities, and with the tool we're able to look at the role of things like leadership, the existence of a digital inclusion strategy or not, we look at the accessibility of the university's engagement channels, how it's pushing information out, getting information back, are those accessible, we look at things like the culture of diversity, is the university employing people with disabilities, is it training on disability and accessibility. We look at things like procurement, what systems does the university have in place to make sure that its investments in technology and its deployments of technology are accessible. So, a whole range of issues that we know are pretty critical to a university becoming increasingly accessible, increasingly inclusive. And, of course, we do dig into technology and data, which are the backbone and the life blood of a smart university. And the way that we use these variables, these 28 enablers, these 18 capabilities, is in a three-step process. That is pretty straightforward. We do some analysis of documents, I.T. strategies, digital inclusion strategies, budgets, accessibility statements. We do some analysis of those. We make available to the university an online self-assessment where they sort of write themselves across these variables. And then we actually do an expert site visit where we curate a team of global experts on inclusion and accessibility and bring them in to engage with the university, dig into some of these variables, and hopefully, at the same time, provide some help and assistance on pain points, issues that the university might be experiencing. And then the final step is we deliver a road map, which includes a set of scores for each of these variables and a set of priorities and recommendations for moving forward. So, if you're at a level 2 on a scale of 1 to 5 for procurement, these are the kinds of things you might think about doing to get to levels 3, 4 and 5. So pretty straightforward. The process with U Mass, we'll be talking -- jumping in with Chris in just a minute. We, I think, started that process last spring and sort of did the site visit, I think, in early summer this past year. And in that process, we reviewed probably more than 20 documents, these budgets, these strategies, these org charts, policy statements. We talked with more than 40 U Mass faculty and staff over ten different listening sessions. And then we delivered the road map. And in the road map, U Mass, I think, had real relative strengths in the area of leadership and other areas identified where there's an opportunity to really make some steps to have some improvements in the capabilities and ultimately in the accessibility and inclusion there. So that's a little bit of a background on how G3ict came to be working with U Mass. I thought it might be useful to sort of frame our conversation. And with that, I'm really excited now, and I've been I've been looking forward to this discussion, Chris, for quiet a while, of jumping in with you and hearing a little bit about the U Mass Amherst journey, where you are, where you're headed but maybe we can start, if you can tell us a little bit about the University of Massachusetts Amherst, give us a general sense of the university and how you're deploying technology there. CHRIS: Sure, thanks, James. So, U-Mass Amherst, for those of you who aren't familiar with Massachusetts geography, I grew up in Massachusetts, so I know, we're about 90 minutes west of Boston, 175 miles north northeast of New York City. It's a relatively rural area, but it's a significant institution. We have about 24,000 undergraduate students, about 7,500 graduate students. About 1,500, instructional faculty. Largest state institution in New England, research one, $233 million, $1.3 billion budget, big. 1500-acre campus, which is the biggest thing is trying to find your way around the campus. Our journey of accessibility came about really through just conversations and advocacy within the campus in terms of this has to be a key responsibility for us. Our technology platform is really very traditional, higher education. We migrated many of our services to the Cloud, excessive use of Zoom recently, Google, exchanging out platforms, and the challenge with the campus of this size is really just managing the breadth and depth of both a campus and a highly decentralized institution. JAMES: Great, thanks, Chris. We probably started having conversations about a year ago, actually, just as we were coming into the pandemic and universities, in particular, I think, we're scrambling to try to figure out, okay, how do we fulfill our mission in this environment. Can you talk a little bit about sort of what that looked like as we were coming into the pandemic from a CIO perspective, the kinds of things that you were thinking about and needing to take steps on? CHRIS: Sure. There were sort of two interesting aspects. I mean, aside from it's amongst the longest days of my career in the past and probably ever going forward just in terms of how do you migrate an institution that size to an online education. We made a very early determines, we were one of the early schools who decided to go remote, we thought it would be two weeks, we took a double spring break. We quickly ramped up the technology portfolio. We were fortunate that we already had tools like Zoom, we had pretty good practice of online education, fairly robust online education school, but not a lot of digitally native capacity to teach instructionally remote. So, there's really two principal areas of impact. There's a principal area of impact in academics, and the impact in administration. Since we extended out the spring break for an extra week, we actually had two weeks to figure out how we were going to do these academics. But that meant we had to move the administration into an online world in a very short order of time. From the basic things, how are we going to pick up the mail to how are we going to communicate, how do staff meetings work, and recognizing that institutionally we were a face-to-face campus, our staff meetings were face to face, our one-on-one meetings were face to face and we had to comport all of that. So, the social change was actually significant, and that led quickly to substantial change in the academic side as well. We saw increases of -- astounding increases in Zoom utilization. One of my favorite statistics on Zoom utilization is in the first week of -- I'm sorry -- in the first day of the first week when we brought our academics online, we used more Zoom time the entire month previously. So, each day in April, we used the same number of Zoom hours in the entire month of February. And that pace continued through the balance of the spring semester. JAMES: Chris, I remember that data point as well. And I often use it myself because I think it is a really easy, compelling example of this accelerated digital transformation. Can you talk a little bit about where -- how accessibility fits into I.T. and into the university in general? I know, you've got a really great I.T. strategy, accessibility is embedded in there. I don't think that there's a specific digital inclusion or necessarily accessibility strategy, but maybe a little bit about strategy and organizational structure, just so we understand how accessibility fits in. CHRIS: Absolutely. So, we've actually been fortunate from an I.T. perspective, we've had staff supporting accessibility but a very modest staff. I think when James did the assessment, we had a single staff member, at a high point we had two staff, and we're in the process of transitioning that as well. So, our overall accessibility strategy comes multi fold. My team is responsible for the information technology, and that's across the board. That means we support students' technology use in the classroom, we support faculty's technology use, we provide general technology use for administration. We do not have responsibility for accessibility accommodations per se, we have a disability services team on campus, it's organized in our student affairs area. So, really, it's a key partnership working between student affairs, working with my central I.T. organization. I will say from a maturity perspective, though, we had staff, it was very much more about boutique service, solving discrete individual accommodations, and it hadn't crossed the line of being generalizable to most of our day-to-day normal use of population technology. It was very much targeted at a subset population that had self-disclosed a need for an accommodation. JAMES: And I know as part of this conversation, we'll get into a bit later, a discussion of these issues of silos and coordination and collaboration, which we had a lot of conversation about when we were working with you. So, maybe we can jump in now a little bit into this sort of notion of accelerated accessibility that happened for U Mass for sure but probably for most universities around the world because of the pandemic and what that looks like. And how -- maybe start with a little bit about how does the university deploy technology assets that are accessible and really are working for everyone, and what did it look like to have this sort of intensified effort to include a focus on accessibility as you were becoming more and more -- using technology more and more to do all of your services, both administrative and academic and teaching? CHRIS: Sure. So I'll say the structural change that really occurred was, I think, originally we treated accessibility as meeting the needs of identified individuals who had to have accommodations and making sure our web content was accessible, doing basic accessibility reviews, it was basic, W3CG, not a lot of detailed work and it was not invested across the board in terms of we had a lot of natively accessible tool set but it was really natively delivered accessible tool set, there wasn't a lot of work and push for us to drive an institutional priority around making sure our content was natively accessible, except where there was either liability or like I say, a dedicated accommodation. As we went into the pandemic, that really had to pivot because we realized, we no longer had the mechanism, we couldn't deploy a notetaker for a student in a classroom because there wasn't a classroom. We couldn't make point by point accommodations on either technology or use case basis. So, we had to start generalizing. We were fortunate that we were in the midst of a transition of our strategic plan, so we were actually at a point of making that type of pivoting. Of identify digital inclusion as a core property going forward. And, so, we had a lot of the substrate work, but I'd say the pandemic really drove us to recognize it wasn't solely about a compliance obligation but much more about reaching our community where they're at. JAMES And as you were making that shift, were you -- some of what we had talked about in the past, when you were in the middle of all this, is there some -- much like what you would probably do on the security side of your work, any sort of risk rating system, and trying to make these decisions about where are we going to prioritize and focus first and those types of decisions when it comes to accessibility? CHRIS: Absolutely, yeah. So, one of the things, for me, I consider fortunate is prior to my role as a CIO I've been in a number of roles at U Mass. I came from a very technical background. But I spent many years in a security role. So, I was responsible for information security at the organization. Within the information security field, it's very much a derivative of risk management field that works very heavily on risk and concepts like maturity models play very heavily there. So, when you're assessing implementation of controls to mediate security risk, you have to assess what is the cost of control, what is the value, what is the return. The easiest way to assess that is against a maturity model so I had a lot of familiarity with the concept of maturity models. One of the things that made me very excited about the engagement of G3ict was the application of this discipline-type technology of applying a maturity model to a domain like accessibility because I had not seen that done before, but I had a lot of experience.   What's nice about that, it gives you an abstract way of measuring your progress, although there can be a metric and a rating, it also talks about where you are legitimately relative to your peers but what steps you can take, and gives you a better mechanism to start prioritizing resource allocations. So, as I moved out of information security, into a CIO role, I changed from being responsible for compliance to be responsible for budget, priority and allocation. So being able to have a document like a maturity model that can help guide investment and show return relative to cost was a better framework for us to make ongoing decision making and I felt more at home in that security field, like oh, we know this is a high risk, let's apply a resource here, even if the resource is fairly modest, it's going to get us significant return against that issue. JAMES: Can you -- if you're able, can you talk a little bit about some of those areas where you were making decisions at the time in this accelerated period of focus on accessibility in addition to a lot of other things? Where you are identifying risk and taking some steps specifically around improving the accessibility of your technology assets? CHRIS: Sure. And in some cases, what's interesting with the technology assets is our first task, because we are technologists, is let's just fix the technology.  What it really came down to in many cases it's about the business process as well. So, when we started going through the assessment process, we realized the first and foremost, we have a 24,000 student population moving remote. We had to get in front of the faculty and instructors to explain why this was relevant. So, it wasn't so much about, hey, don't put a poorly scanned PDF up on your website, we'd already been providing those types of instructions, but it really had to pivot to, is your course content accessible natively. And in that case, it is still digital accessibility, but it may be, have you applied alt tags to your PowerPoints, have you made sure you're not doing poorly rendered PDFs, is your content screen reader able. It was these sorts of things that are actually technology related but it was about the business process behind it. What we did, we formed a working group between my team, our university library, our center for teaching and learning, and our instructional designers, we call our ideas group, it's a big long acronym I can never remember, but we put those together as ideas is the support resource, faculty primary interact with. Library is a resource that provides a lot of the supplementary external materials, I.T. is a lot of times the bridging infrastructure. So, it was really about forming a coalition within campus, identifying priorities, it was helped inform by the maturity model where those risk areas are, and providing guidance, which wasn't just apply technology, but help individuals creating content to make the content accessible natively, because the incremental cost to them was much smaller than us throwing lots of money at making the technology do it for them. JAMES: You touched on a really important point that I think would resonate with any university around the world, which is the sort of decentralized structure of universities, we'll dig into that more deeply in a minute. But I'm just wondering, as you were partnering, and leading this accelerated digital transformation during the pandemic and focus on accessibility as part of that, how was that received? I recall in part of our conversations, for example, there was, with the faculty, there may have been some incentives around going digital, maybe even going digital and accessible at the same time. But, in general, how would you say this accelerated accessibility was received? CHRIS: So I would say it was received well. I was actually somewhat surprised at how well it was received. Those of you who have been at universities, especially in large universities, they're very decentralized power structures, recognize that change comes slowly. The ship turns slowly, as we like to say, right? It will get there eventually but it turns slowly. I was tremendously impressed with the empathy and the caring shown by the faculty and the instructors involved in supporting students at a distance, but they recognized an individual obligation. And, really, our role as technologists was to reduce that barrier to them to make their content accessible. So, there was some financial structure incentives, as we went into our subsequent semester that helped faculty teaching online to build hybrid instruction. What we did, we developed a series of standards to make sure as our content went out, it met these standards, that was sort of the condition of the incentivising. So rather than make it a big deal, like hey, you all have to do accessibly, it was really embedded into an existing incentivization structure, but we added the accessibility obligations as additional compliance checks to go to an accessible by default role. I was concerned about the uptake we'd see from faculty, you but I was very surprised. The other thing with decentralized higher education, as much as the ship turns slowly, once everybody gets where you're going, they generally get on board. So, we took this more adapt to the culture of the campus, adapt to the change culture of the campus, and tie into those change mechanisms that are effective, that's what really helped us be more successful, I believe, that and the empathy of the faculty and the instructors. SPEAKER: The International Association of Accessibility Professionals membership consists of individuals and organizations representing various industries including the private sector, government, non-profits, and educational institutions. Membership benefits include products and services that support global systemic change around digital and the built environment. United in Accessibility, join I.A.A.P. and become a part of the global accessibility movement. JAMES: So, maybe take a little bit of a step back, but still thinking about the deployment of accessible, inclusive technology assets. Can you talk a little bit about your thinking, U-Mass' thinking and approach to incident management? How do you remediate issues, how does that happen? And then the other piece that I'd love to hear a little bit more is about testing, when it comes to accessibility, automated user testing? CHRIS: Sure.  So, two-fold. On the testing piece, we've employed students both in our help desk and our accessibility office to do some of the testing. We actually are just launching another program to do more broad usability testing, which includes accessibility testing, working in concert with some faculty in our writing program. They tend to have a good degree of expertise in there. So, the other advantage of a higher education institution is students are fresh, motivated, focused and quite inexpensive labor and they like the work. It's great experience, it's great value to them, it's great value to us institutionally. So, we've really tied into that, this is something we've done for many, many years, tie into a workforce that's motivated, it's interesting. We've definitely seen the awareness of our student body around accessibility issues is much greater in the last five and ten years than it has been previously. I've been asked about making sure content is accessible from a course perspective, I've been -- there's been a shift and the challenge is, that shift isn't necessarily as strongly perceived at the faculty that are instructing them because they tend to be a little bit older. So, using the students to help motivate that work has really helped improve the accessibility piece of it because we've embedded the testing more into the core processes when we role out new applications, whether it's a PeopleSoft application or a new web application, we're commissioning that testing as part of launches of applications, as well as new web properties. JAMES: Chris, Mark Nichols is asking a question. If the standards that you're talking about, before content goes out, or even other standards that you're looking at and testing on really to -- related to accessibility, are they in-house standards or are you using global standards like WCAG? CHRIS: They are in-house standards developed off WCAG. But I will get James and Yulia a link afterwards. We posted up our academic standards and it referred to those suggestions, it was built off of WCAG. One thing, just amongst everybody here, accessibility is not my first language. I'm an info set guy, I was a technologist, I was a Linux assist Admin. I know the acronyms, I know the space, but it's not quite my domain of expertise, I'm fortunate to have well-trained staff who understand this both on my team and the disability services team so we can absolutely share those standards. They're academic standards we posted for the fall semester for 2020. JAMES: So, Chris, I know, as I recall from our previous conversations and work, there were sort of nine legacy platforms that you guys had deployed. And I'm wondering if over the course of the many months since we've worked together, how you're thinking about incident management has changed or evolved or how you're approaching that and dealing with that, how much of an issue -- accessibility issues have become in this accelerated period? CHRIS: I mean, the challenge has been, before -- I believe we started talking about the accessibility review before the pandemic. I had high hopes that we would be able to make significant progress in some of our core administrative systems in the shorter term. And then the pandemic hit and next thing I knew, we were running COVID testing sites for the western part of the state. We were running vaccination programs. We were one of the earliest vaccination programs for first responders. So, unfortunately, a lot of the resources I'd have to help make accessibility improvements to our core applications really got put aside for new application deployment. What I will say, we've been strong about implementing accessibility standards for the new applications as we roll them out. So, at this point my hope is to get us back, likely as we refactor some of our applications to do a more detailed review. It's definitely a goal, it's an asserted goal, it's part of the road map and strategy going forward. It's just with the pandemic, the resource allocation tipped everything so sideways. I'm a little further behind than I hoped to be there. Legacy platforms, we haven't made as much progress as I was hoping to. We've certainly made progress. What we've made significant progress in is in the awareness and the accountability that accessibility is an issue that has to be accommodated at deployment or at refresh for an application. That was a huge improvement that we hadn't been able to make as successfully in the past. JAMES: You've shared, at least with me, what I think are some really interesting facts about how you as a CIO had to evolve into using technology to support a dramatically increased public health role of the university for the state during the pandemic, which is pretty amazing. There's another question from Peter, who decides the threshold for compliance? It's never 100%. CHRIS: And, so, again, this is where I'm going to go a little bit on my information security soap box, right? The definition of compliance is just bending the wheel to another. So, yeah, it's never 100%. It's not going to be 100%. Really what we do is use a risk-based model, understanding where the risk is. Usually that started historically, with either liability of the institution or legal accommodation requirements. That's a barrier to cross, that's a legal obligation to cross, but it's really not meeting this notion of digital inclusion as a core value of the campus. So, the threshold is really handled generally on a case-by-case basis. There isn't an arbitrary threshold. What we focus on, these are the recommendations to make your course content accessible, to make your web property accessible. These are the standards. From a web property perspective, we do actually have a compliance check less, we actually have a team inside our university relations group that will run through both automated testing and some hand-based testing to look at, does the content render in a screen reader, does it provide appropriate alt image tags and things like that. My goal with compliance is always making sure that we're investing the right amount of resource to ensure that we meet the largest degree of population as effectively as we can. Information security is a risk management game. Accessibility and compliance become a risk management game. And it's hard sometimes to think of it in those terms, but one of the challenges, I think, that I've seen working with some of my staff is, staff come with a tremendous degree of accessibility concern are passionate, profound and focused. The challenge is also balancing those resources against the other resource needs of campus, right? How much time can I spend on ensuring my web properties are accessible if, at the same time, I have to take those same resources to allocate them to make sure we're setting up a COVID vaccination clinic. It's really a continuum of resource allocations. For me, thinking about how can I make sure there's always a guarantee of resource allocation towards accessibility, recognizing that that might not be core to our mission. What can be core to our mission is deploying accessible applications on an going forward basis. But our core mission is instructing students, performing research, being a land grant institution. We always have to balance that resource allocation to make sure we're moving the ball forward in these different fronts, but serving, first and foremost, what is it we're core here to do, instruct students. Accessibility is a component of that, but it can't be the dominating component. It has to be an absolutely key component, but the dominating is us delivering students with a path to their future. JAMES: Thanks, Chris. Before we go on to the next topic, briefly, if you can talk about thinking about your staff, the technology staff at the university even more broadly, perhaps, the skill and training on accessibility and how you think about that and approach that. CHRIS: Yeah, I think there's three aspects of that. So, the first aspect was, we've had some staff transition, in our accessibility staff. Making sure we have the appropriate professional training for folks who are doing the accommodation work or engagement and consultation work. That's always been a fairly straightforward, that's an institutional investment. That makes good sense. Where the real value we've seen, both from a leadership perspective, raising accessibility as a topic of concern at senior levels at the institution. So, raising this concept, our provost is fluid with the concept of accessibility, right? He's not going to go out and do a WCAG review, but he gets the concept that he can instruct his Deans that this is going to have to be a key component of the content their faculty deliver on a go forward basis. From a training perspective, there's a lot of low-cost effort that we can put in place to raise accessibility on the radar from a leadership perspective, discuss it with a broad team of not just executive but operational, manager and cross-functional teams, we've also been very successful in engaging our students about accessibility conversations, what does that mean to you. Because my concept of accessibility is how big is the font is, a student's concept of accessibility may be how does it render on a cell phone. That's a very different problem set, depending on what technology you apply to that. It doesn't have to be, but we need to collect those voices in terms of understanding what that means and a lot of that does not involve a lot of out-of-pocket cost. JAMES: And just one more question, then we'll move on to one of my favorite topics, which is sort of collaboration across departments. From Kathy, how do you decide what to test? Do you do spot checks of certain course websites and more checking of applications used by larger populations? CHRIS: Sure. So let me break up the administrative from the academic side of things. So, from the administrative side of things, we actually have a review process for our web properties in conjunction between our I.T. team and our university relations team that's responsible for our web properties. So, there's actually a checkoff evaluative process for our core web properties. I'm fully confident there's probably some research lab websites or some individual P.I. websites that were created by word press that probably don't meet the testing. We focus on the high-visibility targets to make sure the information that's most relevant to a large population gets out there. From a course perspective, we do have a couple of very large enrollment courses. We tend to focus most of our resources on ensuring the platform is accessible natively. There is always compliance issues, right? There's always some faculty member that wants to take their PDF from 1982, turned it 10 degrees and scan it and hope it will work. We do spot checks, especially on the large enrollment course, but generally we focus on ensuring the platforms are natively compliant, and then providing strong guidance to the faculty to ensure they have the guidance and parameters of what are those steps that they can take that's relatively die minimums, relatively incremental burden for them but provides a more inclusive experience natively. JAMES: Thanks so much. Now let's shift gears a little bit, Chris, and get into the issues of collaboration, coordination, working across departments at a big university on a big campus. One of the things -- one of the other things that stuck in my mind that you said early on when we started working together was how at the University of Massachusetts Amherst, there are some really amazing, I give you full credit for this term, these pockets of heroic effort. Which I think will resonate with anyone who's doing work in the accessibility field, any kind of organization, that there are really good practices happening in parts of the university. And I think some of the ones that had come up, U Mass were around UDL, instructional design, and some other areas that the Assistive Technology Center, some really good resources and practices. But siloed and not scaled because they are siloed in departments. And even some departments, I think, that may have been a little ahead of others in terms of academic departments in terms of their approach to inclusion and accessibility. I know that since we last worked together, and during this -- these last several months, the accelerated accessibility period, that you've done some work on greater collaboration and coordination. Can you talk a little bit about that, including maybe some description of what it felt like before taking some improving steps? CHRIS: Sure. I mean, for those of you who have spent time, and this is true of both large and small higher education, but higher education tends to be a very siloing structure, at least in my experience. There's a couple of exceptions but there tends to be a lot of belief that faculty are experts in their domain, by virtue of experts in their domain, that there's a lot of notions of self-rule, self governance and that sometimes extends out to administration. I will avoid pining too deeply on that. But there are some challenges that come from that. There's communication, there's logistical challenges. What you end up seeing is subcultural development about, this is important. And what I've observed, and I've seen this both in technology fields as well as accessibility is and let me take it out of the accessibility domain, my email team for many years thought they delivered the best email application out there. They understood how it worked, nobody else understood how it worked but it made a lot of sense to them, and they thought they were doing great. And, so, within their minds, they were providing heroic effort but the impact from a user perspective was not the heroic effort they thought it was going to be. I've observed similar challenges within accessibility at the campus as well. There are these pockets of brilliance, pockets of heroes that are out there working with good empathy this. The challenge is, they don't always have, or they have not been provided the degree of leadership to have these conversations more broadly. So, why is it that one of the very small questions that came up had to do with a resource allocation around providing captioning for course materials for students that had defined accessibilities -- defined accommodations and it became this substantial issue that the costs were decentralized out to each of the departments? And many of our departments, by virtue of being academic, tend to run on very thin budgets. So, when we stopped this conversation, we went into the pandemic, said, what is the net budget impact can here? I can't remember what the number was. Let's say it was $40,000 across the campus. You know, when I brought it up to the right degrees of leadership, they're, like, we're arguing over this? $1.3 billion budget. Don't get me wrong, $40,000 is real money but that's not the thing we should be arguing. By virtue of us decentralizing decision making to that being 40 decisions of $1,000 each, it became much more difficult to get the resource allocation. So the key observation I'd say is, clearly articulating why this is important, clearly articulating that when we marshal our resources collectively, we can make changes that don't seem so big when you're working in a larger context and it really involves that collaboration between and amongst groups and I've actually been very pleased, I think, going through the review with G3ict, certainly delivered us a road map, it certainly delivered us a maturity model, it gave us a sense of where we sat, but it actually opened up conversations amongst teams that have worked and sat together for many, many years but those conversations weren't as effective. You know, we always joke, my background, like I said, is information security with auditors. If the audit doesn't tell you what you want to know, you did something wrong, right? I will say, I have been very pleased with James, had a very objective, and the team he brought in was excellent, but it told us what we wanted to hear, you've got some pockets of brilliance but there's some coordination, there's some logistics, alignment you need to do. Having a third party assert that brought more credibility to this notion of accessibility than any empathetic call from staff on campus could have. JAMES: Thank you for that, Chris. And I think to your credits, and we've done a good number of these reviews of universities and of smart cities as well, I think one of the things that you did was pretty courageous, I think, you involved an enormous number of people from both the academic side of the university and the administrative side in a large number of conversations. I think over these ten conversations that our expert team had with your university community, there were 200 participants, 40 unique individuals, I think, but they were heavily attended, some of the discussions were quite passionate, I will say, because the passion was there. Can you talk a little bit about where -- recognizing and wanting to make even more progress on collaboration and breaking down some of these silos and amplifying some of these heroic efforts. Either where some of these -- what are some of these pockets that you would love to see replicated and I'd also be curious to hear a little bit about what are some of the groups that can help promote this kind of collaboration? We had talked, in particular, in our conversations with U Mass, the faculty Senate actually had been pretty engaged on these issues of accessibility. There is an academic advisory committee, I think, on accessibility. Are there any sort of areas that or groups that can help you as the CIO promote this collaboration? CHRIS: Yeah, you know, that's a great question, James. One of the key things, and one of the things that I found sort of helpful to me in my career, both in the CIO role I'm in, and previously in the information security role, is identifying those governance structures and where they have efficacy. That's one of the things that I've observed at least in some of the accessibility staff I've worked with. They have passion, they have technical focus, they have deep empathy and deep caring, but they don't have the experience with how universities govern themselves or what the governance structures are, where decision authority really rests. It's great to think, you know, I've had staff that think I have all sorts of decision authority, I have responsibility for my $30 odd million of budget, but sort of the extent of the responsibility I have, I have responsibility for standards, as we get into decision making, I have to tie into bodies like our faculty Senate, I have the information technology advisory council, some of these academic advisory councils. We have other both faculty and administration, leadership groups, task forces that are focused on the shared governance structure of universities, we have administrative focus units. So working with accessibility teams to identify where those power structures exist, how change occurs in an institution, and how you can be effective at making this case amongst all the other many cases, that was one of the key things, which again, I was fortunate to have a lot of this experience in information security, I observed many of my peers in information security, other institutions, come in and try to win the day of information security solely on technical merit. Like, well, we're going to go to this, we're going to spend another $100,000 on this new antivirus thing, because it's incrementally better than this other thing. And quite honestly, when you're making that case to a CFO or to a Chancellor or Provost, that's $100,000 for a technical thing I don't understand. Whereas, if you can turn it into a conversation about, either mediating institutional risk, delivering institutional benefit, understanding how change actually occurs on a campus, when you make that case in business terms, it becomes more rational and plausible amongst the thousand other things the Provost or the Chancellor or the CFO has been asked in the last day. So that's the key transition for me, how do you find those power structures, how do you identify those governance structures, how do you make it a business value proposition, not solely a technical or empathetic proposition. JAMES: That's actually a perfect segue, Chris, into a topic that I know you feel passionately about and that we recognize as well in our assessment tool, the maturity model is really pretty critical to an increasing commitment and capability on accessibility, inclusion. And that is what we call, you know, the business case for accessibility. Moving beyond, particularly here in the United States, every university has a legal requirement to be accessible and inclusive, in other countries as well, but you and I are sitting or standing here in the U.S. today. But we'd like to sort of move the conversation beyond risk avoidance and legal compliance to what is the business case? As you say, the why or the value proposition, of accessibility. Based on your experience, either over the past year as a result of or as part of this assessment, or just in general, can you talk a little bit more about that, that key issue of how you are trying to tap into the why and the value proposition at U Mass? CHRIS: Absolutely. So, one of the key value conversations we have on a regular basis, and this is not a conversation unique to U Mass, it's not a conversation even unique to the northeastern United States, but within the United States, there is a significant decline coming in college-age students in the coming years based off of just changes in birth rates, patterns like that. What you're seeing is increasing competition within the field for high-qualified students, you've seen this manifest through, U Mass was deeply involved in the closure of mount IDO, we actually took over parts of the campus, we inherited some of the students from there, you know, recently, I know Becker college in Worcester announced that it is intending to close as well. One of the key things that drives university budgets is attracting, retaining strong students to maintain competitiveness. And if the population is shrinking, one way from a business value perspective is to make sure that you're delivering a natively accessible education to appeal to as broad a population of students as possible. If we are, by virtue of not providing accessible content, unintentionally excluding some arbitrary percentage, say, even 5% or 10% of our students. That's 10% of a student population that will not become paying students, high-quality students. We're excluding a portion of our population that could engage. And that's based on a conjecture of 10%. If the conjecture is much higher, we could be unintentionally avoiding potential population when we know there's going to be restrictions in that. So from a very raw perspective, if budgets are driven at institutions through a combination of both undergraduate, graduate tuition, and research education, if we're not strongly positioned, meeting the market demand, and that can either be meeting market demand because there's a growth or being more competitive and approachable to a larger population, if there's a reduction in that student -- potential student population. We are not tied into the strategic mission of the institution to provide our role as a land grant, to provide instruction to residents of the commonwealth and to create a workforce for the commonwealth. We have over 250,000 living alumni from U Mass, vast majority of them stay in Massachusetts. At U Mass, we graduate more students than the top eight private institutions from the state of Massachusetts combined. That means we're tied deeply to the workforce. So, if we cannot find a way to make our content accessible and approach that, we're not only risking our own potential economic future, but we're actually risking issues of workforce development and long-term competitiveness of the state potentially. JAMES: Yeah. A couple thing in there that I would love to follow up on. One is, you've talked about the role of students, the diversity of students as a driver for the competitiveness of U Mass in fulfilling your many roles as a land grant state university. As you're thinking about the why and the value proposition, are you having discussions or thinking about, we certainly discussed this as part of our engagement, the technology assets you're deploying, the accessibility of them, it also impacts faculty and staff, is that part of the calculus as well? CHRIS: It absolutely is. Because, again, that same, you know, rubric holds, as we remain a competitive institution, we have to be competitive in our hiring practices. And that means approaching as broad a population of the available talent pool out there. If we are not delivering natively accessible experiences, whether that is directly instructional or it's, you know, pedantic as H.R. forms, right, everybody's got to do an H.R. form somewhere, but if we're delivering, and we've had our challenges in the institution of three copy, carbon forms that, you know, our vice Chancellor of human resources loves to say, he shut off the last -- he got rid of the last typewriter not that many years ago, right? There's clearly some substantial issues that we've had. If we're not competitive with the potential workforce, both at the highly skilled faculty level, at the highly skilled technical level, but at all levels of the organization, we're going to potentially compromise the available resource pool as well. So, again, if it comes back to business case, I see a compelling business case to make sure accessibility is core to our digital transformation because it allows our long-term access to a larger candidate pool. With the move to remote work, we're having very serious conversations, what does that mean, long term, right? We've had staff working remotely, we're going to struggle, like every other public and private institution is now, what does it mean for workforces returning, if the pandemic slows as we're hoping? Would we accept this notion of more broad remote work? Does that increase our potential labor pool? Those are all interesting questions that are going to have to be worked out. But if we cannot position our institution to be natively digitally inclusive, we're excluding a portion of our population that may have accessibility accommodations that we're just turning our back to from the get-go. And that's a challenge. That's a loss both to us and it's a loss of potentially high talented, high-skill individuals that could make this university stronger. JAMES: So, Chris, I would imagine that with your expertise and experience in the information security space, you've sort of tackled this issue of the value proposition, the why of security. How is the starting conversations, advancing conversations about the business case, the why and the value proposition, of accessibility, how is that being received? Where is it being received well, where is it a bit more of a struggle? CHRIS: I'd say it's being received well at the high level when I talk about this notion of making sure we're finding the most accessible pool, we're making -- ensuring we're going to remain competitive, tying to workforce. I think the value proposition, executive level, is very strong there. We've always been very successful at the value proposition at a very operational level, for our students and our staff that are providing accessibility accommodations, who are working with students on a one-to-one basis, for our help desk who are taking calls. Where the challenge is, and I think we've had a path to move forward, is for people who do not have either the high-level strategy, do not have the day-to-day blocking and tackling is trying to make the value proposition of why is this one more thing they should do, why should you take ten more minutes to ensure accessibility, alt image tags, why should you take two more minutes to turn on the captioning features in Zoom or PowerPoint? So, I ended up teaching again this fall, I taught for many years at U Mass, I took a number of years off. When I taught this fall, I taught entirely remotely, I taught entirely by Zoom. Zoom's native captioning feature wasn't there. So, I elected to use PowerPoint, use Office 365, turn on the captioning when I lectured. I use Zoom to record the lecture. And it put the captions into it. It's not perfect. It wasn't great.  But the cost to me was thinking to do it, clicking a check box on Office 365 on PowerPoint and making sure I hit play and record. So, the incremental burden to me of applying captioning to course content, and I've taught this course material for 20 years, this is the first year I did that. So, there is two minutes of clicking, it took me about ten minutes going through each of my slide decks to apply alt image tags. That investment of my time as an instructor is absolutely worth it to make sure that content is more accessible. And that's the value proposition I think we have to hit that middle portion of the population, if we can move that population, the impact is going to be tremendous. SPEAKER: With the adoption of WCAG 2.1 in many countries, there is an increased demand for web developers, designers and other professionals with knowledge of web accessibility standards and guidelines. With this growth comes the need for an objectively verified level of expertise. The Web Accessibility Specialist exam will provide individuals and employers with the ability to assess web accessibility competence. Complete the WAS and CPACC exam to earn the special designation of Certified Professional in Web Accessibility! 

Grey wings Venice Beach Homeless in hotels Marijuana vs tobacco Hotel Marijuana Rabbit conservative Rabid conservative = boring and quiet? Do you see the racism? Hispanics are moving conservative Shop classes "Rape the land and exploit your works" BSA Girl Scouts Venice Beach clears the homeless off the beaches Vaccine "Rights" Trump - States on their own for pandemic response Churches step in where the State fails NFL is no longer a non profit James bullies the NFL Homeless 'actors' keep tourists out of Venice Beach Christopher doesn't know Soylent Green Christopher: "Did you watch the Basketball game?" James: "I didn't even know we had a basketball team." Phoenix Suns theme Suns's ape mascot (so naturally Christopher loves them) James rates "the sports" "A bunch of guys going at it..." Hooves over feet Christopher watches Soccer and is not impressed Soccer players scream like little babies Christopher says 'shit' on the show James kicks Christopher in the shins "They're not men, they're soccer players" James: "Can we talk about the Tour de France?" Christopher: "No" "Don't say 'American' football, you communist" Video gaming is racists? No. "Who knows why reporters do what they do." You were killed by Noble Kitty Kat Christopher trolls the homophobes You may be paranoid about how much Facebook knows about you, but the truth is much worse No phone + a mask = totally invisible A house made of coffee

1. The Devonns - Blood Red Blues (Protest Song) 2. Moanin' And Groanin' - Bill Withers 3. Dojo Cuts / Carlton Jumel Smith - Here We Are 4. Durand Jones & The Indications - Don't you know 5. The Black Exotics - What am I Waiting For 6. The Invisible Session - Ideas Can Make the World 7. Jungle Fire - Quémalo 8. Ishkero - Tonik Gin 9. Setenta - Permiso 10. 79rs Gang - Brand New Day 11. Marcos Resende / Index - praça da alegria 12. James Mason - The Love Song 13. Eddie Harris - Funkaroma 14. Kenny Barron - Sunday Morning 15. - Two Bass Hit 16. Diogo Strausz - Emancipacao (7 Inch Mix) 17. Dego - Good Morning (feat. Samii) 18. Sunni Colon - Supernova 19. Anka Foh - Tâtâ 20. 4 Hero feat. Vanessa Freeman - Won't You Open Up Your Senses 21. Cool Affair - Genarator 22. Michael White - The Blessing Song 23. Lionel Hampton - Happiness 24. John Lee & Gerry Brown - Talkin' 'Bout The Right One 25. Millie Jackson - It Hurts So Good 26. Daryl Hall & John Oates - She's Gone 27. Sons of the James - Can't Believe You Love Me 28. Rasa - When Will the Day Come 29. Willie Hutch - Sunshine Lady

In this episode Lockoutmen Park And Politic with James “ Can’t Stop” Burgess, A graduated with a Bachelor of Science in Industrial Technology and a Master of Science in Transportation. In 2014 James started his own company JCB Transport LLC hauling cars – hot shot style. In 2015 he bought his first truck (semi) and went back to pulling tankers. Let’s get to more about James “ Can’t Stop” Burgess and how she landed a trucking career.

1. Jonas Thinks It's Not Hard For Women To Find Sex

01. Sinner & James - Can't Stop (Original Mix) 02. Sorley - Deadeye (Extended Mix) 03. Sllash & Doppe - I Want You Too (Original Mix)  04. Ninetoes - Volar La Pluma (Andrea Oliva Extended Remix) 05. CASSIMM - Caravan (Original Mix)  06. 21 Souls -Rhyme  (Original Mix)  07. Chris Lake, Solardo - Free Your Body (Noizu Remix) 08. Jake Would - Pump It (Original Mix)  09. Kodewerk - Wonderful One (Extended Mix) 10. Cele Jaime Soeiro - Real Funky (Original Mix)  11.  Brokenears - Discone (Original Mix)  12. Yenk - Nava Hero (Extended Mix)

01. Lee Pennington - Control Freak 02. Moreno Pezzolato - Beat (Original Mix) 03. Sinner & James - Can't Stop (Original Mix) 04. Eyes Everywhere - Coupla Blues (Original Mix) 05. Dario Nunez 2LOVERS - Mapogo 06. DONT BLINK - ACID HOUSE (Original Mix) 07. Danny Howard - Beat Control (Extended Mix) 08. Cele - The Frog (Original Mix) 09. Eddy M - Dropping 10. Hannah Wants - Love Somebody (Eskuche Extended Mix) 11. Nasser Baker - Bodytude (Original Mix) 12. Alexey Romeo - Azul 13. Space Motion - Right On (Original Mix)

01. S.A.M . - Fury's Laughter (Norman Doray Remix) 02. Tonix, Felix - I Want Your Body (Original Mix) 03. Bratt - Don't Stop (Original Mix) 04. Claude VonStroke - All My People In The House 05. Sinner & James - Can't Stop (Original Mix) 06. Lexa Hill - Know It's Love (Extended Mix) 07. Chedey Garcia - Baby Don't Stop (Original Mix) 08. Miguel Bastida - Tipys And Tipys (Original Mix) 09. Alexey Romeo - Apocalypse 10. Sono - Keep Control (ARTBAT Remix) 11. Space Food - Ahsen (Original Mix) 12. Leftwing - Kody feat. Camden Cox - Without You (Extended Mix) 13. Kaiser Waldon, Analog Sol - True to Yourself (Original Mix)

James: Hey, audience and listeners, this is James Kandasamy from Achieve Wealth True Value-add Real Estate Investing podcast. Last week we had Kevin Bupp who's an awesome syndicator and a sponsor in the mobile home park space. And he gave a lot of insight on why did he choose mobile home park and what happened during 2008. And you know, how he rebounded in his real estate career and a lot of other things. So you guys want to check out that episode.  Today we have Todd Dexheimer. Hey Todd, welcome to the show.   Todd: How are you doing?   James: Good. Good. Very good. Very good. So Todd owns almost 550 units and he has been buying in Minnesota, Wisconsin, Kentucky, Ohio, Tennessee. Is that right, Todd? I mean, is this all that you're focusing, which is completely different from the usual guests that we get who buys in Florida and Texas, right? So I want to really dive into these States, which is not the usual focus or not the usual point of discussion that you know, a lot of multi-families syndicators and investors have. So let's talk, you know, Todd, why not you introduce yourself in case I missed out something?   Todd: Yeah, sure. I mean, you know, a little bit about my background. I started doing this business actually right when the crash happened. I started in 2008 so the timing was great. At the time people were telling me I was stupid and crazy because the sky was falling, you know, but luckily I didn't listen to them. I, you know, buck the Trendon instead of running away, I ran headfirst in. So started buying single families, did a lot of fix and flips, did a bunch of them, probably 150 or so, and was really, they'll want you to focus on rentals at the whole time. So while I didn't have any money as I flipped, I would just keep a little bit of that cash that I would get from the flip and buy some rentals. And that's how I was able to build up my rental portfolio.    Bought a lot of one to four families, some small apartments, did that all locally in the twin cities. And I got up to maybe close to a hundred units just under that at one point in time before I kind of transitioned them. Yeah. Out of the flips, out of that smaller one to four family stuff and into apartments, I've since sold a few buildings in the twin cities, but I've been buying in mostly out of state; in Cincinnati, Kentucky area Tennessee. That's been my main focus now is just buying... I went from buying kind of 20 to 30 unit type buildings to then now and buying larger hundred-plus unit buildings. So that's my main focus now is looking at a hundred plus unit buildings and doing value add syndication.   James: Awesome. Awesome. I mean, looking at your bio, you also have done some office, some ski resorts, some mobile home park. And finally, I think now you're focusing a lot on, I mean, you have been focusing a lot on apartments, right? And why is that? I mean, didn't the other businesses make a lot more money than apartments?   Todd: Yeah, I mean, everything made plenty of money. They all make sense. And that's the beautiful thing about real estate and the confusing thing about real estate is it all make sense, right? I mean, you know, I can make a lot of money in office, I can make a lot of money in retail and warehouses and all kinds of stuff, and I can make money in development and owning land and mobile home parks. I mean, you talked about Kevin Bob, he's a fantastic guy. He's making a lot of money, I'm assuming, in mobile home parks. And so that's the beautiful thing about real estate, but you got to pick your focus, right? And so, yeah, I did some development, I did some land, like you said, I owned a ski resort, which is just super random.   James: Do you still own it?   Todd: I don't, I sold it. It was a distraction. It was a beautiful place. Look, it was like 190 acres or something like that. It was beautiful. A really nice river ran through one of the edges of the property. It was nice hills and it was an amazing property, but you know, it was a distraction and you've got to get focused. And I actually talked to my...   James: Can you hold on? Sorry, my dog is disturbing. Hey, Todd so it looks like you have done, you know, quite different types of business, right? Like an office, some ski resort and some mobile home park and you know, you started with smaller common, complex and all that. But finally you ended up focusing a lot on a common complexes. Right. And why is that?   Todd: Yeah. because apartments make you a lot of money. No, the answer is I needed to focus on one main thing. And I could've chosen office, I could've chosen retail and warehouse or buying, you know, distressed land, like the ski resort and I did all that. But there's just no focus when you're doing just random stuff like that. And I wanted to really focus and I wanted to build something big. And so ultimately, it was a choice of, okay, what do I really enjoy and what do I really want to focus on? You know, the beautiful thing about real estate, there's so many different options, every way makes money.   And I've gotten friends that do note buying. I've got friends that, you know, flip houses that wholesale, that do land development, everything. And they all make a lot of money if they focus on it and they do it well. So that's why; I just had to focus. I just had to have one niche that I picked and ultimately I was most attracted and most led to multifamily.   James: Awesome. Awesome. So looking at the States that you have invested right now, I'm not sure whether, you know, like the popular state, I would say like Texas, Florida, Las Vegas, Arizona, Phoenix and all that, right? I mean, how is the market different compared to this populous state? How's the market in Minnesota, Wisconsin, Kentucky, Ohio, Tennessee, different from the other markets that a lot of people know?   Todd: Yeah. So first of all, Minnesota is a totally different market than all of them. Minnesota is a extremely competitive market. You and I talked offline. I mean, it's a super competitive market. There's very little inventory, very competitive. Cap rates are extremely compressed. almost impossible to find deals. Not that you can't, but I mean, extremely hard. There's just not a lot of deals that sell, especially when you're talking a hundred-plus unit deals, just not a lot of deals itself.   James: The twin cities are there, right?   Todd: Yup. This is Minneapolis and St Paul, the twin cities. You know, if you go way out state, it's a different story, but you don't want to invest there cause nobody lives there. So if you're going to remain populous, which is Minneapolis, St Paul or the Rochester area, which is where the male clinic has...a lot of people know what the male clinic is. It's one of the best hospitals in the US, those are the two areas of most people are investing in and it's next to impossible to find a deal.   James: What is so special about these twin cities? I mean, now it's like what Phoenix and Las Vegas, but past three, four years, I mean, I used to read Marcus and Millichap report and they always say the top city to invest in is twin cities. And I can never Google it. And now you're telling me that it is the twin city, right? What's the real definition of it, where it's located and what is so special? Why is it the top city?   Todd: Yeah, well, look, I mean I think we're the 16th largest Metro in the US, if I'm correct and I think we've got 3.8 million people in the whole Metro area, which we called the twin cities. We have a large portion of Fortune 500 companies are based here. It went down recently because there have been some mergers, but they're essentially still here. It's just a couple of companies that merged. So we've got a very large amount of Fortune 500 companies. It's just a stable, steady place, right? We're never going to have big population gains, but we don't have population loss and our rents never go skyrocket up. I mean, they've skyrocketed recently, but we call skyrocketing three and a half percent increase, you know, that's skyrocketing for the twin cities as far as rent goes.    But we're going to see, you know, that just stable, that really stable, it's never that up and down. It's not like a Phoenix, it's not like a Florida, it's not like that. Just that roller coaster ride, we're just straight. And so people like that. Our occupancy rate in the twin cities is, I mean, I think we've now come down a little bit, but we're at about 97% occupancy up until fairly recently.   James: On average. Wow, that's really good.   Todd: That's amazing. People couldn't find places to live. I mean, if you were an okay landlord, you were full. The only people that weren't full were just the slum Lords and even they were close to being full.   James: And that probably could be the reason why, you know, you can't find inventory, right? Just there's no inventory. Right.    Todd: Yeah. Yeah, it's good. So the difference, that's one market. And then, the other markets that I'm really focused on are going to be like Cincinnati. Now as you start to really look, Cincinnati's in some of the lists now, market is to be looking at, and I just looked up the other day, like the cities with the best population growth, job growth, and Cincinnati was on there. So you're starting to see the markets that I'm invested in beyond those lists and they weren't on there before. So basically what it was is through my research, I wanted to find markets that hit all the criteria that I'm looking for. That's job growth. That's population growth, that's strong government and independent support for businesses, bringing in businesses. That's good rent affordability. That was huge on my list. I wanted cities that had good rent affordability, opportunity to purchase assets that were cash flowing with decent cap rates.    I wasn't necessarily looking for like a 10 cap, but I want decent cap rates. I wanted a market that I didn't feel like compressed to the point of where when we do see whatever recession is coming next, that they're gonna go way back up. And so those were the markets that I really tried to focus on. And that's what I feel like I've found. Now, since I found them, they have definitely compressed a lot more. You know, it's challenging, but when I first started in those markets, there's a lot of opportunities and there still is.   James: Got it. Got it. So how was your experience from going from buying and flipping houses into syndication, right? Why did you make that leap into syndication?   Todd: Yeah, flipping houses suck. It's a lot of work.   James: I mean, I've tried two times and I promised myself I'm not going to do it again.    Todd: Yes. It's just so much head damage in flipping houses. And can you make some good money? Yeah, I made some good money. I'm not gonna say I didn't, but there's just a lot of liability, a lot of head damage. You're dealing with a lot of contractors and you're in use always, and homeowners and emotions and it's just...you're always grinding. You're never...not that like I care about it, I enjoy grinding. I mean, I do it in multifamily right now, but I feel like I'm actually getting somewhere; where with the flips I felt like I was on that hamster wheel or I got to buy one and I got to immediately find another one and I'm always like running in a circle. And so that was kind of the reasoning that I wanted to get out of it.   Plus I'm paying, you know, short term capital gains or ordinary income, I just didn't like that. Now multifamily syndication made a lot of sense because I had a lot of investors. When I was doing flips, I was bringing in private money to my flips. I wasn't using hard money. I was using just private money. People I've met that wanted to invest in my deals and that's how I got them involved. And so when I wanted to transition into multifamily, it was pretty easy to say, Hey, this is what I'm doing. If you want to come on board or not. And all my investors said, yeah, let's do it.    Ultimately that was what James I wanted to do from the very start. When I first started this real estate journey back in 2007 when I started reading books, before I ever bought anything, I read several multifamily books, one by David Lindel called multifamily millions and another one by Ken McElroy called ABC's of real estate investing and I loved those books and that said, this is where I want to go. And I had always been kind of obsessed with it, but I had no clue how I was going to take down $1 million-plus building. And so, I just kinda got scared and let it fall by the wayside.   James: So how did you take that leap? Who helped you and was it like a aha moment? One day you wake up and you bought it or?   Todd: I had a business partner and ultimately it was time for us to kind of separate and go our own ways. I wanted to do something different than the flips and wanted to take this multifamily leap. I started by buying some smaller, you know, as I said, 10 to 20 to 30 unit buildings and that was making a big step there. And then just started like listening to people on podcasts and going, no, why am I doing this? I hired a business coach too and I remember talking to him and going, I think he said, like, what? Why are you buying another 20 unit? And I said, well, you know, like I got to keep on buying these and then eventually I'll get up to, you know, hundred-plus unit buildings. Why not do it now? And I'm like, Oh yeah, why not do it now? So it's just like somebody just needed to tell me like, what are you doing? Let's just do it now. Like, and it wasn't like, Oh wow, that's a scary thing. When he said it, I was like, well, yeah, yeah, let's just do it now. You're right. Yeah. So I don't know, sometimes you just gotta be told like, what are you doing? Just go do it.    James: Just go do it. Yeah. You just need someone to, I mean...   Todd: Just a little kick in the pants sometimes.   James: A little kick or a knock on the head, hey, you can do it now. Right. Why not you do it? Right. So that's very interesting. So what are the things that you when you started syndication, right? I mean, when you look at a deal, when you get a deal, I mean, first of all, you're already finding it hard to find inventory, right? But whenever you find an inventory that comes to you, what kind of things do you look at?   Todd: I'm sure kind of the same as most people. I'm looking, you know, beyond the city and the neighborhood, which I already kind of mentioned. I'm looking for that population growth, that job growth, I'm really digging into the neighborhood too. And I want the neighborhood to have the same fundamentals that I'm looking for in the city. I want that specific neighborhood to have too and low crime and that growth is what I'm looking for. So beyond that though, as property-specific, I'm looking for an opportunity that has something wrong with it. And it might have really high expenses that I can take down. You know, utilities are a big one where people aren't, you know, we can put some like led stuff and we can put low flow toilets and we can do energy-efficient stuff that's really going to cut down on our bills and increase our ROI.   We can do RUBS which is ratio utility billing and where we're charging back to the tenants,  those people who don't know. And then potentially, you know, depending on how the property is being run, there might be some other potential small things that we can do. And then of course on the income side, we're looking at can we raise rents by doing improvements to the property? We don't like to raise rents just to raise rents, I like to provide something good for my tenant base. And then, you know, there might be other things, like there might be a just occupancy issues that the other management company or other owner just wasn't on top of things, collection issues. Potentially. there are crime issues or there's other just management issues at the property where they have the wrong tenant basin and we can correct those problems that are happening.   James: Got it, got it. I mean, out of these five cities, five states that you invest in, is there any difference in landlord friendliness within this city?   Todd: You know, they're actually all fairly similar as far as this landlord friendliness. They all have different quirks to them. You know, some of them might have to give a like a five-day notice to the tenant before you can evict them. Some of them, you can't set their stuff out on the curb right away, you have to give them, you know, like in Minneapolis, if you evict a tenant and they leave stuff at the property, you have to hold onto that stuff for 28 days. That doesn't have to stay in the property. You can put it in storage or whatever. They have time, it used to be 60 days but they have time to be able to get their belongings. So they're all a little bit different. But I would say, all in all, they're kind of probably less right in the middle.   You know, I hear some other States are being better. For instance, Texas I hear is really good. But yeah, you just kind of raised your eyebrows and rolls your eyes a little bit and I've heard that too by other people. And I think what happens is, you know, and not saying every state is the same cause there are some states that I'm sure are really hard on landlords, but I think if you know and understand the laws and understand what you can and can't do to get your tenants out and that type of stuff, most States are just fine. Like it's not that difficult to move tenants. So, for instance, Minnesota, a lot of people have that kind of misunderstanding. I don't know where it comes from that you can't kick a tenant out in the winter and that's not true.    My company just evicted one of our tenants and there's date to be sat out is, I think December 12th. You know, so you can, you know, it's winter here. I mean, December 12th is...next week is going to be zero degrees out. So, you know, you just have to understand it and if you understand the landlord laws, the tenant laws, you're going to be just fine. So get the right people around you, surround yourself with the right people.   James: Got it. Got it. And also, I see in your bio that you have a passion to teach undeserved youth and adults on how to create financial independence. So can you explain about that?   Todd: Yeah. You know, so I've volunteered for a nonprofit called Junior Achievement, a lot of people know that and my passion and I don't know exactly where I'll take it, but my passion is just to continue to do that and raise awareness, raise money and for people who don't have the opportunity to have what we have and do what we do. A lot of people don't even know a business or being a business owner, being an entrepreneur is even like a possibility for them. And it's possible for everybody. Cause there's a lot of people that come from nothing especially, you know, I see people from different countries come here that have nothing or start with nothing and they do amazing things. And there are people living in this country that just don't even think it's possible. Like they don't know that it's there. So I want to just really educate people.    The other thing is I love to figure out somehow how to get financial education into the schools. And that's a tall task, I know, and it may never happen, but that's one of the things I really want to do. I used to be a high school teacher. I really think it's important to teach our youth about how to be responsible financially and just about the amazing opportunities that there are out there.   James: Yeah, absolutely. Especially in the US right. Where it's a capitalist country, right? Anybody can, you know, make a lot of money, as long as they're willing to work hard, you find the right people to be coached on, right. You're on the right path, you work hard, you should be able to make a lot of money. I mean, it's completely different from a lot of other countries out there. I mean, people may not appreciate how much freedom to create wealth in the US unless you have travel outside and you have lived in other countries, right? So a lot of people did not know that, so that's really good. Yeah. I mean, a lot of people take it for granted and a lot of people do think that somebody else owes them something.   Todd: Yeah. It's a hard mindset to change. I mean one of my very first tenants, and this is partly where it came from, one of my very first tenants in a single-family house, she moved in. She had section eight and she said, "You know, I'm not going to have this section eight for very long so could you take me when I drop out of section eight?"  I said, "Oh, absolutely, yeah, as long as your income and you meet the requirements, no problem."  "Okay, I'm going to do that. I'm getting my real estate license. I'm going to get out of this. My mom had section eight, my grandma had section eight and I don't want to be part of this circle." She never got out of section eight. I had to actually evict her because she wasn't even paying her portion of the rent and I don't know where she is at today. I'm hoping she's out of section eight but my guess, my gut is she's probably still in section eight and never learned really what to do and how to get out of it. And I'd like to be able to help end that cycle.   James: Yeah, that's a very good thing that you're doing because I think sometimes they need someone in the business circle to go back and, you know, just tell the possibilities out there in the business world. So, yeah, that's very important. So, Todd, when you look at the multifamily apartment, I'm presuming you're doing a lot of value add deals, right? Is there anything that you find in terms of what the most valuable value add when you're doing all this turnaround?   Todd: I mean, it's different for every project, but one of the things I like the most is trying to find expense, just expenses that we can cut but efficiently cut. Like I don't want to just cut repairs and maintenance because those are going to come back. And they're going to probably come back and bite me because I tried to cut those and be cheap. But now if we can do things, we can cut down by buying in bulk, by buying the right materials, by being efficient at our scheduled repairs versus just randomly doing it when it finally breaks. If we get into a more of a rhythm and a schedule, we can actually cut expenses, which a lot of people don't understand. Like how is that possible? Cause we're always on the property and always scheduling things.   But preventative maintenance is actually going to save you money versus having something that breaks, I mean, think about a furnace, right? If you go and you change the furnace filters, every month, you're going to extend the life of your furnace by potentially 10 or more years just by doing something like that. So that's one big thing. The other big thing with expenses and this is my favorite one, and I already mentioned this, is the utilities and cutting back on a lot of the utility costs by doing, there's a lot of different things we can do. We can replace the toilets with the low flows, we can put on a water reading system where it can tell and it can send us a rating if we have a water leak. You know, just silly things like that that seem like they shouldn't, you know, save you that much money, end up saving you a ton of money.    And the reason why this stuff is my favorite, the expense reduction is my favorite is because this is a recession-proof system, right? If we cut our expenses and a recession whacks us, guess what? Our expenses are gonna go way up. But if we jack our rents up today and a recession happens, what happens with our rents? They go back down. Right? And they do, and I don't care what people tell you that multifamily rents don't go down, they do. And so, so raising rents while I like that, and I'm not going to tell you we don't raise rents, but we know that by cutting expenses down, as long as we do it the right way and not just cut to cut because we want to be cheap, but if we do it the right way, that's recession-proof and that's going to continue to keep our NOI high during the recession.   James: That's a very interesting perspective because yeah, you're right. I mean, rents can go up and down, right? But once you optimize your expenses, you're probably going to be, you know, sticking to it, right? So you could invest on your expenses. That's a very interesting perspective. That's good. So Todd, let's go to a bit more personal side of it. So do you have any secret sauce to success? I mean on your personal side?   Todd: You know, I mean, there's no secret sauce, right? It's all out there. It's all about yeah, several different...if you can do the few things, focus, following one course until success...keeping yourself completely focused that's extremely difficult, right? But because we got so many distractions out there, but limiting those as much as we can. You know, never giving up, always pushing on, always continuing to persevere, being consistent and persistent. Those are all really big. I mean, it's very easy in this industry and in any industry to get kind of discouraged. You know, you get beat out on 10, 20, 30, 40 properties and you don't get one and you get discouraged. Look, I haven't bought a property since May. Do you think I'm excited that I haven't bought a property since May? No. I would love to have a property right now under contract, but I don't.    But I'm not discouraged. I'm going to keep on going and keep on pushing on and keep on putting on offers until I get one. So I think those are just really important things to focus on. I think obviously you need to be clear, you need to have goals, you need to understand where you're trying to go with this business. Those are all so important. So there's no secret. I wish there was and I found it, but you know, it's hard work. Being an entrepreneur can be lonely. That's out there all alone. You're getting your butt kicked in but it's a fun business at the same time, there's a lot of reward in the end when you're building something bigger than yourself.   James: Yeah. It's interesting. And even on the previous podcast, we were talking about how the world has changed compared to like past five to six years to now. Because now with social media you feel a lot of FOMO, right? Because you start seeing people are closing deals and doing deals and you are like, Oh, I didn't buy since March. You know, so you have to really, really control your fear of missing out. Especially when you can see everybody, what's happening.   Todd: Stop comparing yourself to others. For one, you don't know what others are doing. You don't know what type of ownership structures they have or anything like that. And when I look at my properties and I really probably dive into them, I have a really good ownership structure on my properties and some people that have three times the amount of units, four times the amount of units than I do, they probably have less ownership, less overall, whatever you want to call it, equity than I potentially have. And so if you want to compare yourself to others, you're always going to be disappointed. You just have to look at yourself and go, I'm happy where I'm at today. You know, where are the goals that I have for myself in the future and where am I today and what do I need to do to keep on pushing on? That's how you gotta look at it. If I look at what you're doing and what everybody else is doing, what Kevin Bop is doing, I'm going to be disappointed in myself. I'm going to want to buy these properties and I'm going to end up doing stupid stuff.    James: Correct. Yeah. I mean sometimes it's surprising. Sometimes people can claim they own a half a billion dollars in assets, but he may be poorer than the guy who owns a hundred units on his own. Cause they had half a billion, they probably own like a what, 10-20% out of it and out of the 20% they probably own like...   Todd: Or half a percent.   James: 30% out of it. And out of that 30% they probably gave so much money for all the capital raises that they are hiring.  And they probably wouldn't do the 0.001 of that billion. Right. So you know, I mean just audience, I mean, you guys really want to make sure that you don't get caught in all this marketing hype that you're seeing in Facebook or LinkedIn. So the real guys are really working. So you'll be able to identify the real guys just by talking to them in terms of what are they doing and how are they portraying themselves? And, you know, talking to their passive investors.   Todd: Yeah, yeah. I mean, there's a lot of noise, like you said.   James: It's a lot of noise and sometimes the rise of social media, I mean, you have a Facebook group. I have a Facebook group. Sometimes they know the amount of I mean just in general, Facebook itself, there's so much of noise out there that it creates a lot of FOMO in a lot of people, so you have to be really watching out for that. Yeah. Was there any proud moment in real estate that you think I'm really, really proud of that moment? I'm really proud that I did something that's gonna stay with you for a long time?   Todd: Boy. you know, I guess just getting started from the beginning is probably what I'm most proud of is that well, like I said at the beginning, everybody goes 2008 that was an amazing time. you're a lucky guy. But at the same time ask yourself this, did you invest in 2008? You know, most everybody listening has to say no because they were either, well, maybe too young or they're running the other way. And I was young in 2008 but I just took that risk, I believed in it and I saw what was possible. And so that's probably what I'm most proud of when everybody else was running the other way, I ran right to the fire hydrant.   James: Yeah, yeah, that's true. I mean, even now it's hard to find deals. I mean, it was the same thing in 2008, it's hard to find deals. Even in 2010, it's hard to find deals, all the time. It's always hard to find deals.   Todd: Well that's the thing is, and you said it, that's perfect right there. And I'm glad you said that because it's always hard to find deals. It's always easy to say there was a lot of deals back then. We might be saying in 2025 that every deal in 2019 and 2020, we should have bought. We don't know right now, but in 2011, 2008, you know, all those years while it was happening, there was not a lot of great deals to buy because the market was totally different than it is today. And you didn't know where it was going to go. You just didn't know. You have to buy on today's fundamentals. You can't buy on to tomorrow's fundamentals because we don't know where that's going.   James: Yes, absolutely. Absolutely. Hey Todd, why don't you tell our audience how to get hold of you?   Todd: Yeah, so I've got several things. If they want to listen to my podcasts, they can definitely listen to that. It's Pillars of Wealth Creation. They can reach out to me if they want to learn more about my company and invest in that kind of stuff. They can reach out to me at my websites venturedproperties.com or they can email me, todd@venturedproperties.com. And then I do coaching as well, run some mastermind groups and coaching. And if they want to learn more about that, they can either email me at the email address or they can go to my website, which is coachwithdex.com as well.   James: Awesome. Todd, thanks for coming on the show, you added tons of value. Give us a lot of perspective of different markets that I'm not familiar with and I'm sure a lot of listeners are not familiar with and how did you, you know, came up in life and you know, you have been giving back as well. So really happy for that. Thank you. Todd: Yeah, definitely. Lots of fun. Appreciate you having me on.   

01. Block & Crown - Ya Don't Stop (Club Mix) 02. 2 Sides Of Soul - Hot For Your Love (Original Mix) 03. Tonix, Felix - I Want Your Body (Original Mix) 04. Bratt - Don't Stop (Original Mix) 05. Sinner & James - Can't Stop (Original Mix) 06. Sante Sansone - Musically (Original Mix) 07. Lexa Hill - Know It's Love (Extended Mix) 08. Agar, Jay de Lys - Bling Bling (Original Mix) 09. Miguel Bastida - Tipys And Tipys (Original Mix) 10, Wan Roux - Glow (Original Mix) 11. Duke Dumont, Zak Abel - The Power (Extended Mix) 12. Alexey Romeo - Azul 13. Hosh & 1979 feat. Jalja - Midnight (The Hanging Tree) (Original Mix)

[OUT NOV 01TH, 2019] FRIDRIKH In The House #419 OUT NOV, 2019 Hour One: 01.HP Vince, Danny Cruz - Sexy Music (Danny Cruz Disco Reprise) [Cruise Music] 02.Eli & Nomi - Dance 4 Love '99 (Club Mix) [Classic Music Company] 03.Dirty Doering - High Rider [MoNSTER] 04.Twism, Wavy Dot. - Do You Want It_ (Original Mix) [Soulful Legends] 05.Fiorious - I'm Not Defeated (Catz 'n Dogz Extended Pride Mix) [Defected] 06.Pete Tong, Moss Kena, Jules Buckley, HER-O - Show Me Love [UMC (Universal Music Catalogue)] 07.Frank Latanika - Sometimes (Original Mix) [Etznab] 08.Nine Lives - The Panacea [Nurvous Records] 09.Sebastian Zara Feat. Maximo, Sebastian Zara, Maximo - Ain't Nobody [New State Music] 10.Adana Twins - Spaceman (Original Mix) [TAU] 11.Moscow Noir & Night Vision [ca] - Silence to My Madness (Daniel Bortz Rmx) [Get Physical Music] 12.Oliver Koletzki, Fran - Arrow And Bow (Marek Hemmann Remix) [Stil Vor Talent] 13.Riton & Gucci Soundsystem - Mr Todd Terry [Ministry of Sound] 14.Dom Dolla, Walker & Royce - San Frandisco (Walker & Royce Extended Remix) [Sweat It Out] 15.Softmal, Nytron - HOT (Original Mix) [Prison Entertainment] 16.Frederick & Kusse, Frankco - In My Strutt feat. Frankco (Extended Mix) [Etiquette] 17.Clubland, Grant Nelson - Let's Get Busy 2019 (Grant Nelson Club Mix) [BTECH] 18.DJ T. - Ready to Shine [Get Physical Music] Hour Two: 01.Luca Vera - Nelson (Original Mix) [Valkea Music] 02.Tina Says - Elevate (James Curd Extended Remix) [Tinted Records] 03.DJ Oliver, Alvaro Smart - My Brother (Extended Mix) [DFTD] 04.Dennis Ferrer - Transitions (Mihalis Safras Clubby Remix) [King Street Sounds] 05.Detroit Grand Pubahs - Surrender (Martin Landsky Remix) [Detelefunk Revisited] 06.Jamian - Happiness (Original Mix) [Level E] 07.Chuck Roberts, GotSome - The Message (Extended Mix) [Ultra] 08.Vanilla Ace, Jean Bacarreza, Blaktrash - Damn Hot! (Original Mix) [Safe Music] 09.Sinner & James - Can't Stop (Original Mix) [CUFF] 10.Soulfeed - Do You Like It (David Keno Remix) [Take Away] 11.Nasser Baker - Bodytude [Relief] 12.RSPK - Kone (Mi-8 Rmx) [Heartbeat Records] 13.Camelphat Ft. Jem Cooke - Rabbit Hole (Extended Mix) [RCA Records Label] 14.Christian Lepah, Alin Prandea - Skyfall [Logarhythm Records] 15.CamelPhat, Jake Bugg - Be Someone (Extended Mix) [RCA Records Label] 16.Claptone & Nathan Nicholson - Abyss of Love (Dario D'attis Rmx) [Musicpark Records] 17.Dalida - Mamy Blue (Vinyl A1 Rmx) 18.Peggy Gou - Starry Night (Original Mix) [Gudu Records]

In 1990, an unstoppable Rob Reiner set his directorial sights on his second Stephen King adaptation: Misery. Featuring a canny performance by James Caan as the bestselling novelist-turned-hostage, and a legendarily bravura turn by Kathy Bates as his psychotic "number one fan," Misery is a tense, compact thriller with equal measures of silliness and horror. In this episode, we argue and agree as usual--but really you just want to hear us talk about *that scene*, don't you? You know the one. 

James: Yeah listeners, this is James Kandasamy from Achiever Wealth Podcast.  Achieve Wealth podcast focuses on commercial real estate investing; across all asset classes. Today I have Kathy Fettke from real wealth network. Hey Kathy, you want to introduce yourself?  Kathy: Hi there, sure. I'm the founder and CEO of Real Wealth Network. We've been around since 2003 actually. And we've been helping people, mainly in high priced markets, find cash flow properties nationwide. And then over the past 10 years or so, we've helped people get into syndication; a lot of our members just wanted totally passive. So we partnered with developers and we build single family homes, one to four units, and then also some apartments and now the opportunity zones, so we're excited about that.  James: Oh, cool. Yeah, Kathy runs one of the top podcasts in the nation and what's the podcast name, Kathy?  Kathy: Real Wealth Show and then I have a news show that's just seven minutes for busy people, but loaded with information; The Real Estate News podcasts.  James: Yeah, I've listened to both real estate news, which I like, because it's pretty short and it just give me the high level things; sometimes we're really just so busy. And I've listened to [01:25 inaudible] So let's go a bit more details into, how do your company or your group helps the investors? Let's start with investors, so are lot of them passive investors or do they still manage the property at all in single family?  Kathy: Well, you know, most of our members are busy Silicon Valley workers or their Hollywood people in the industry, that is pretty unforgiving. Both industries, Hollywood and Silicon Valley, you're working a lot; sometimes people are working 70, 80 hour weeks. Even if you're making a lot of money, what you don't have is a lot of time. So they can't be, managing their own properties or flipping; people who try to flip when they're that busy, it’s just tough to do a good job at it when you've got all these other things. And then to add a family or just trying to be healthy and exercise; there’s only so much you can do. So, we really decided about 15 years ago, both my husband and I decided we wanted to invest where there was cash flow and we couldn't find it in California.  So I had the Real Wealth Show then and Robert Kiyosaki was on it back then and he said, I'll tell you what, I am selling everything I own in California because it's a bubble. This was in 2006 when nobody else could see that; everybody thought it was just going to be this incredible boom forever. And he said, no, no, these loans are going to melt down and he was selling everything and exchanging it for a high cash flow, low cost properties in Texas because that's where the jobs in the population and we're going; so we did that   I talked about it on my show, on the Real Wealth Show, and our listeners wanted to do it; so we said, well, you can use all the team that we set up. You can use the property manager, they're great, and you can use the agent that we use, the contractors; and then we realized, this is really a need; we can make this a business. And that's really what real wealth network became; it's just finding these different resources nationwide to help people find deals that you just couldn't find on your own; and have them managed for you.    James: So is it a fund, or is it like a property, buy property or how does it work?   Kathy: We have both. I mean, for the first five to seven years it was basically brokering. We have a real estate brokerage, helping people sell their California properties and exchange them for really high cash flow.  I had a woman come to me back in 2007, somewhere around then, and she was desperate to retire; she had bought these three properties in Stockton thinking that would be her ticket and they were just a pain; always needing repairs. They were old properties and not very good parts of Stockton. And all the cash flow was just going to repairs, so she wasn't able to retire; her dream of real estate was turning into a nightmare.   And she listened to my show and I said, well look, let's sell these; they were $420,000 each. They rented each for $1,200, not a good deal. So we helped her sell those three properties at the peak and then buy in Texas at basically the beginning of their boom; we got her nine brand new homes in Rockwall, Texas. It was an hour outside of Dallas but we knew a new freeway was coming that would make it just a 20 minute, 30 minute drive to downtown. And she ended up quintupling her cash flow.  She was able to walk in and hand that resignation letter to her boss; she was able to retire. And about 18 months later, the market crashed; the home she sold for $420,000 each, these little dumpy homes, they were worth about $75,000 after. So she saved herself from complete disaster and in fact, her properties in Texas have tripled in value since she bought them. So ever since then, that's really what we do. We help people see; look, you need an asset that's performing, whether there's going to be a market collapse or not; a $420,000 piece of junk in Stockton that rents for $1,200 a month, is not a deal. We've been helping people understand the fundamentals of investing. James: It's so crazy because I think a lot of people thinks that, oh the house price is going up and they're getting richer. Actually, you're not getting richer? It's a dead equity; your equity is trapped in your house.  And I see a lot of people with a lot of money, who buys properties in high class neighborhood where they want to live. Which is completely opposite from how the whole cash flow should be; because the rent doesn't really jump up by that much, compared to your price on the house.  And it's just so crazy, they don't realize it and they keep on buying two or three houses in their neighborhood and they say; I have all these houses. Some people have gotten used to that appreciation play rather than a cash flow play.    Question for you is, I know every market has cycles. So I know from California to Texas in 2008 was an awesome, brilliant move. So what about today? Where would you invest? And where do you think both California and Texas market is?  Kathy: Excuse me.  I didn't mean to cough at the question but it's a big question... So it would appear that today is very similar to 2006; prices have gone up dramatically, in some cases they've doubled in value, tripled in value since rate recession. So people have made a lot of money and they've heard other people have made a lot of money by buying a property and doing nothing with it. So, it's tempting to think that that will continue, that is just not possible. You have to understand the metrics and people can only afford a property that's about three times their income. So if your monthly income is $5,000; you can only afford a property around $1,300 a month with the mortgage and the taxes and insurance.  So, there's only so high prices can go. Prices were very depressed for the past 10 years, they’re not anymore, they're way past their last peak; salaries are not going up as quickly. So to buy a property thinking that you're just going to get a bunch of equity gain,  I think you missed that. However, will there be another housing crash? That's what people want to know, right? My answer is, I don't think so, because in the last 10 years you have had people have to really qualify for a loan. They also got very low interest rates, some as low as 2% over the last 10 years; and values have gone up.  So they're locked into low interest rates, they have equity, salaries are going up. Even if we had a recession and jobs were lost, I don't think people are going to rush to dump their properties, when they're locked into low payments, just so they can pay more in rent; I don't see it happening. Plus 10 years ago there was no Airbnb, you didn't know that you could just rent out half your house, I did. Rich and I actually did that when we were having a tough time back in 2003. We rented out a bunch of rooms in our house to get by; we had to use Craig's list and that was crazy, you never know who you're getting, very different today. And, add to it that households are forming, yet we're not building enough supply. Where anything that we're building, that builders and developers are building, is higher end because permit fees have gone up, labor costs have gone up. You cannot build the same house today for the same price, certainly not for the price that most people own their property; they couldn't rebuild it. I live in Malibu where there are a bunch of fires and people are not able to rebuild their houses for what they had an insurance; so make sure you have really good insurance. So no, I don't think there's going to be a housing crash. There's just not enough supply, there's so much demand. We've had 10 million more renters in the last decade than we have before; we have probably another 10 million over the next decade. There's again, not enough supply in the affordable rang, so even though you're probably not going to see a lot of appreciation over the next 10 years, you're going to see a lot of cash flow.  James: Okay. Just because of the demographic shift, I guess, that you’re seeing in terms of the renters and all of that? Do you think it will continue in Texas? Because you’re looking at it from California; at that time when you bought in Texas, Texas was early part of the whole cycle. I came during the downturn and I didn't really feel there was an economic downturn here.  But now it has gone up so much, do you think that taxes will continue to grow?     Kathy: Well, it is very scary when you look at a chart and you look at the home prices in Dallas, it just goes, whew, and that is scary. But you have to understand that when we were buying in Texas, it was 26% undervalued, so that the houses were so cheap compared to income. So just to bounce back, the most important metric to look at is affordability and what we know is that there's just a massive amount of jobs in the Dallas, Fort Worth region. I don't think prices are ever going to go back to where they were, it’s the new reality there. Will they go up much more? It just depends on salaries and jobs. I certainly don't see any kind of crash or decline there. But we were never buying in Texas for appreciation, we got it and that was wonderful; but that's not why we were buying.    It all comes down to cash flow and there are parts of Dallas where we still think there's opportunity for cash flow and appreciation. But it's getting harder and harder to find, like it's harder and harder to find anywhere. There are still deals, especially in the opportunities zones. These are areas that are going to be gentrified, there may be higher crime, not as good as schools, but a lot of that is going to be changing; there's going to be more jobs coming in because of all the tax incentives. So, whether or not you’re getting those tax incentives, if you invest in those opportunities zone areas, you could see some appreciation along with cash flow.    James: Yeah, opportunities and some new incentive, compared to the 1031 and some other gentrification that's happening. So, you talk about Dallas, what about other markets in Texas, what are the other markets that you're excited?  Kathy: Well, one of the people I follow for my economic advice is John Burns. He does consulting for builders and we have developments all across the country and he's advised us on quite a few of them. He does an economic analysis annually, probably quarterly, he's constantly consulting. And one of the slides he showed recently was where the jobs are going. A lot of my California members of real wealth network say, what about Portland? What about Seattle? And based on the graphs that John Burns shows, that is the area that is having the least job growth in the country. So that should give you the answer you need. In addition to that, you've got all this rent control stuff happening in Portland and Seattle; it's like, no. If you're going to own a rental property, you don't want to be in a place where people hate landlords.   So I would skip the northwest, I'd skipped the west coast entirely, in my opinion, for that reason. Because whenever housing gets expensive, it's on the west coast where they decide it's our fault, when it's not; it's the fault of politicians who don't allow you to build anything, so it's frustrating. But where we're seeing the growth go 100% is the southeast. That's in Florida, Georgia, Texas certainly; these are no income tax or low income tax states. When you've got 10,000 people turning 65 every day, trying to figure out how they're going to retire, they're going to go to areas where they don't have to pay a lot of state tax. So that's one reason, plus the jobs are going, I believe the Orlando area, central Florida area is the fastest growing area in the country at this time. So yeah, we’re all over it, we’re building houses there and we're renovating houses and we're providing lots of done-for-you ,rental properties to our members.  James: So what about Phoenix and Las Vegas? I know that seems to be the last leg of boom, I guess. Because they are the ones who's recovering the last, but it seems to be a lot of people trying to look at that market as well.  Kathy: You know, I always get a little sick to my stomach when I think about Phoenix and Las Vegas because....   James: Positive experience, right?   Kathy: I had the opportunity, we were in contract on two properties before the collapse and we got out of them in time and got our money back. But oh boy, we would have been pretty upset. But no, I'm more upset that I didn't take action after the crash in Phoenix, there were so many foreclosures that just freaked me out, but obviously it would've been good to buy.  So it's hard to buy today when prices have doubled, if not tripled, from when we were able to buy; but at the same time, Las Vegas and Phoenix continue to grow, they will probably continue to grow for a long time. The problem is the cash flow is not quite as good as in some of the other areas in the south east, so I haven't been active in those markets. But if we had a really good team there and they were able to find us good deals and renovate them, and get them rented, and good property management; we'd probably still go in.    The problem with the Las Vegas is you have very low paying jobs, so the rents kind of cap there. But that could change if different kinds of jobs come in, but you've got a lot of people in the hospitality industry, who don't make a lot of money.  James: And also I would say a luxury, it's basically depends on luxury, right? If the economy tanked, nobody is going to go to Las Vegas to spend all their money and that's where the swing will come, I guess.  Kathy: Lots of people are moving there for affordability. My sister just bought her first house; she's 57 and bought her first house. But it’s in the Phoenix area because she could afford it.  They bought it, they rent it out and they hope to retire in it in 10 years. So you're seeing a lot of that type of thing.  James: Okay. Got it, so when you say cash flow, you're talking about single family turnkey cash flow, am I right?  Kathy: For a lot of our members, they want to max out that 10 conventional loans that you can get through Fannie and Freddie.  So even though they might invest in multifamily and other people's deals and syndication, they definitely invest in our syndication. Nothing really compares, in my opinion, to maxing out those Fannie and Freddie loans that you can get at 5%, five and a half percent. Are you kidding? Fixed for 30 years and you could get one to four units. We have a lot of our clients buying four-plexes in Florida and so you can get 40 units with those 10 year loans; and you're locked in at that rate for 30 years. You know rents are going up, I know a lot of people aren't fans of single family, but to me it just makes so much sense.  You can take all that cash flow and pay off the first loan, the second loan, the third loan; You could have all 10 loans paid off from the cash flow in 12 years, so many of our members do that. Then they have 10 properties free and clear, cash flowing. Again, multifamily is great; it's just a different animal. I think having a good mix of both because it's so easy to get in and out; a single family, it can be challenging, I've had massive challenges. We had a 92 unit building in Indiana that had a gas leak, in the middle of the night and the city required everybody to move out. We had to pay, we had an empty building, and we went from fully occupied to empty overnight literally, because of a gas leak.  And then we had to pay these people off to go find a new place, we had to fix; multifamily can have the same problems that a single family can have, only times a hundred.   Don't think that there are no problems, but it's a different animal; there’s different upside, there's different downsides. But, for people starting out,  just getting into some single family rental homes; just single, one to four unit, it's a great way to start to really wrap your hands around it and understand it and lock in those low 30 year fixed rate loans.  James: Yeah, you make a good point.  I'm a multifamily guy but I started in single family. So the cash flow in single families is unbeatable. I usually buy really good deals, so I usually make 30, 40% cash on cash, on single family. I buy by direct marketing and we rent it out. And we have that equity and you have that Fannie Mae loan, you just can't beat it. The biggest problem that we have in our single families is the 10 loan limit. That’s the limit, after that where do I go?  Kathy: That's as far as you can go, unless you both, you and your spouse can qualify; you can each get 10 but yeah, then you're stuck. Then you got to get to commercial, [20:19 inaudible] or something, you’re going to run out of money. But, for people just starting out or if you've got one property in the Silicon Valley that you bought for $400,000 and now it's worth 2 million; you might want to take that and do something else with it.  James: Yeah, correct.  I think the biggest challenge in single families is managing the property. So we were managing it, it takes up a lot of time, especially in the first few years because things are being stabilized. So once you get a renter, which doesn't leave, then everything is cash flow. So, does your company provide turnkey property management for single family?  Kathy: Yes. So what we've done is basically what we did in Texas. We'll go to an area where we think there's a lot of growth, a lot of job growth, a lot of population growth and it's landlord friendly and low taxes; Texas isn't low taxes, but we still have. And there we'll find people, like you said, people who know how to wholesale, they know how to get these deals. They do direct marketing and then they'll maybe look at a hundred deals to find one; but then they'll find that one deal that has a lot of potential. They'll fix it and get a tenant in place, have property management in place and sell it ready-to-go rental, to somebody who's busy and doesn't have the time to do all of that.  But we ask that there's still be some equity in there, it's getting harder and harder to do because prices have gone up and there's so much competition. There are E-buyers everywhere [21:58 inaudible] an E-buyer now; E-buyer meaning that they've raised billions of dollars to buy a house, sight unseen; instantly, instant offer. So, that's making it a little tougher on wholesalers but with that said, we still have boots on the street in 15 different markets that have either really high cash flow and prices are still undervalued; like Detroit and Cleveland, or in areas where there's just massive growth and people want to get in the path of progress and watch the sun rise.  James: Got it. I want to go back to the 92 units multifamily, because I think it's a very interesting story. Everybody tells all the good stuff about multifamily, how much they make? And there are a lot of people who doesn't tell all the bad stuff or deals that are losing money or what deals are under water. Kathy: Nobody wants to talk about it, I'll talk about it.  James: Yeah, I want to talk about that because I think it's a very good learning. So, you talked about 92 units where there was a gas leak, the city said you have to leave and you went from a 100% to 0%.  So what was the key learning from that experience?  Kathy: The key learning would be to make sure you've got the right insurance in place. A lot of people get their insurance policy but maybe don't really understand it; so, get an attorney to read it through and make sure you’ve got everything you need for that kind of situation. If you have the right insurance, then you can get through a situation like that. Unfortunately, in our case, the city made us do all kinds of things that were not necessary, before we could get a certificate of occupancy and  bring people back in; so, it took years to be able to occupy it again. And on top of that, when you have a vacant building and you got vandalism, so we'd have vandalism. And again, insurance can cover that, but it was hard, it was really hard.   So have plenty of reserves, really good insurance. Make sure that somebody, a professional, has looked at that insurance, to make sure that it will cover everything. And then you can get through those hard times. And if you're syndicating, if you brought in other investors into your deal, make sure that you have key man insurance or D and O insurance; because you’re responsible for your investors' dollars. I was able to go to the lender because we were sitting there vacant, no income and still having to pay that mortgage. And it was just cleaning me out, it was so difficult. It was so difficult; so we just stopped making the loan payments and I didn't know what to do. I had a million and a half of investor funds in there. So I just went to the bank, I flew out to Indiana, I met with the president of the bank and just said, here's the keys;  it's empty, it's vandalized, the city won't let us do anything with it, you can have it. And we were probably $1 million in arrears. And they say, I kind of knew they were going to do this, but I didn't know for sure, and it was a really scary moment; but they are like, you can have it. They cut the loan by over a million and it was still very difficult.    And so I think it's important that people understand the risk because there are so many young investors syndicating deals. They don't have the experience, they're taking other people's money and I literally talk to these young people and they are like, what's the big deal? It's easy, it's easy.  But their Performas are  only accounting for rents going up,  what if they don't, you know?  James: Correct.    Kathy: You just don't know. So you've got to have run that stress test on your Performa, understand that rear-ends can stabilize. That if there's a recession, a class property is the hardest to fill because people have lost their jobs; so they start discounting and then now someone's got the choice to live in a or a B class property for the same price, they're going to go with the A. So then to get tenants, you've got to lower your prices on the B property and that trickles down to the C. Whereas nobody's really accounting for that and I don't want to say nobody, a lot of new investors aren't accounting for the possibility of that scenario.     James: Yeah. And I can bet you that none of the gurus out there teaching about key man insurance and D and D, and E and O insurance, which you just mentioned this now. Because I know a lot of gurus and even they do not know because they just do teaching, a lot of them.   Kathy: There's a lot that going on and it's kind of terrifying. On the one hand, I feel like wow, there could be a whole lot of really good deals in about five years, but I don't want to think that way.  I wish everyone success, if you're really young and you're following a guru, so to speak, who's telling you how easy it is, just make sure you have someone on your team who's a little seasoned, who's got a little gray hair; you don't want to jump into an airplane with two young guys. If you're going to jump into an airplane and you know that it's blue skies, okay, fine. A couple of inexperienced pilots might be okay, but if you know you're flying into a storm, don't you want that old guy?    Just know that we are in turbulent territory right now, this is not the beginning of an expansion, and this is the middle or the end. So it's, it's, it's different. It's not as easy. So it's, different, it's not as easy; there's clouds, there's potentially a storm coming. Get that person with experience, who knows how to ride through storms, to be a part of your team, whether they're on it in an advisory position or you give them a little bit of shares so that they're invested in it. But just get that wise person with experience to help guide you.  James: Yeah. It's, interesting on how much deal is being done at this peak market cycle. Actually, if you look at the latest data by Dr. Glenn Mueller, we are in hyper supply state nationwide for apartments, we already passed the expansion cycle.   Kathy: Really? Oh, I haven't heard that. You know, I hear so many different things, I've heard that we're over supplied in Seattle and maybe Dallas and New York. James: Yeah, I mean that is national data, national data and then there's another data which shows each cities and where they are. And if you look at a lot of cities, a lot of cities are in hyper supply stage And the last batch of cities, which is at the last part of expansion, there's like 10 different cities, which is the last part of expansion; so even that cities is going to go into hyper supply. So, that's the data that is being published, I think we are [29:03 inaudible] if I remember correctly, Dr. Glenn Mueller is like 50 or 30 years, who has been doing analyses, research, on all commercial real estate asset classes. I follow him closely and since last June, we already in hyper supply, nationally.    Kathy: That's terrifying but I guess there could be deals for you and me in about 2 or 3 years James: Well, I still have my properties, but I usually buy value, that way we can try to push income. So if you're buying at  low prices, we are pushing income so that we have buffers, so in case it turns down, hopefully, that buffer is not eaten up.  But there are a lot of people who are buying deals which doesn't have any buffer, there's no real value added component to it. They just buy because they're getting a good loan, cash flowing, there are a lot of investors who want to invest; and there are a lot of gurus out there also telling that there're still deals out there and people are just jumping, it's fear of missing out.  Is it a similar sentiment that you see in 2006, 2007?  Kathy: The thing that feels similar, is a whole bunch of people giving other people advice,  who don't have any experience and people with no money and no experience, doing deals; that's what scary. And lenders coming in and so much money, they'll just lend on just about anything, so that feels familiar. What's different is that there are fewer people who can afford a property; you really have to qualify, to live in a home. I don't see a single family housing collapse. In multifamily, there's just going to be rental demand for years to come. So it's really only the people who make bad decisions, who buy the wrong property, who don't calculate the repairs adequately or overestimate rent increases; those are the people who get hurt. They over leverage, anyone who over leverages that's concerning. or in ballooning short...  James:: Short term loans, Like bridge loans and all that, got it; so coming back to that insurance issue on the 92 units. So I'm trying to understand the root cause; I know we didn't get the right insurance, there's something were not covered. What was your insurance selection process in the beginning? Did someone recommend you to this insurance?  Kathy: I trusted my partner. I didn't have enough experience; everything I'm teaching is really from my own experience. I certainly didn't know how to look at a multifamily insurance policy and know that it was enough; I should have run it by an expert and I do that now on everything, we have experienced experts that look at it. But at the time I didn't know and  insurance companies are always going to take advantage when they can, so it's difficult to know what to look for; especially when you'd never in a million years expect something like that. If you're buying an older building, which many people are because they're doing the value adds, these are things that can happen. You have old pipes, the city ended up making us replace all the water lines, all the gas; it was, like having to build a whole new building. It was just a nightmare.    James: Yeah, and what kind of loan did you take? Was it an agency loan or was it a small bank loan kind of thing?    Kathy: Small bank, yeah…    James:   I recently had one of my buildings under fire. So, I did look at insurance in the beginning when we bought it, but there are so many details behind that policy coverage.    Kathy: Yeah, how could you know? No you can't   James: I didn't know, until the fire happened when I was talking to the adjuster, he said, oh the good thing is I have really good solid insurance.  But the amount of details in terms of coverage, it's just shocks me, that so many things that cannot be covered if we don't get it.   And in multifamily, just for the listeners education, the insurance is one thing that people can play around with, you can't play around with taxes because taxes by  the county and all the expenses is pretty small. Payroll is something it's a bit hard for you to control; you need good staff to run the property. So you have to budget it properly, taxes, you have to budget properly. But the insurance is, yeah you can pick around here and there; get slightly lower premium and that contributes to your LTV; which is how much loan they're going to give or how much loan proceeds. So, sometimes it's very tempting to do deals to get higher proceed by compromising insurance. And insurance is one thing that always comes at the end of the whole loan commitment process.  Let's say you're closing in two weeks, the bank is going to give you a loan commitment and insurance is the last one that comes, as the final price. And if the insurance agent messed up or if the syndicators or the sponsor messed up, in estimating that amount; the deal can fall through at the end. So what happened is people, there's a lot of possibility that people take shortcuts in insurance because they didn't want to deal to fall through, so it’s crazy.  Kathy:  It is just so important to have good insurance.  I have a friend who is a big fund manager, a multimillion dollar fund and he's savvy,  very smart investor and he owned a bunch of buildings, commercial buildings, I believe apartments in Houston before the floods. I don't know if you know this, but if your insurance doesn't specifically say it covers named storms, and of course what hurricane doesn't have a name, if that's not specified, then it's not covered. And he did not have, I don't know specifically, but he was not covered in that storm. Which again is, an insurance company is going to do what’s best for them? So make sure you've got an attorney who specializes. I've got a neighbor who that’s his job; He’s a specialist in making sure your insurance is what you think it is, because it would be just so easy to change one little word. James: That's interesting, I didn't know that. Good thing I don't have anything in Houston, but it can happen anyway, whole Texas.. So, did you try to hire a public adjuster and tried to fight for you and they gave up on it just because it's not covered?  Kathy: We hired an attorney to help us find it and it didn't get anywhere. I think we got money for the vandalism, but even that, you have to make sure when you have a vacant building, whether it's a single family or multifamily, you have to make sure your insurance company is aware of that and there's a different policy for that. So, there's just a lot to understand, when managing these properties. But, now I know what it's like to manage other people's money and be in a situation like that; I couldn't sleep for years.  I think you could probably hear me on the balcony crying. I would have investor calls where I would just burst out in tears halfway through and these lovely people just worked with me through it, because they knew it wasn't my fault; but I will never go through that again, that's the worst feeling, it's terrible.    Nobody sued me, but they could have maybe, I don't know. They've been very understanding. But today when I do syndications, we eliminate as many risks as is possible. One of them is we do a lot of building subdivisions and it was really the builders and developers who got wiped out in the last downturn. Because a few banks just failed, they couldn't pay their construction loans; even if you had $20 million construction loan to finish your project that was gone. So, you literally couldn't finish your project, so builders just went out of business left and right, and land became dirt cheap, cheap as the dirt that it was on. We were able to buy a lot of that land because I was just getting into syndications back in 2010, we bought some incredible land; 4,200 lots in Tampa for a 10 cents on the dollar and things like that.  But we didn't want to be on the other side of that this time around. So the way that we have handled all of our developments is we raise all the money, believe it or not, we raise all the money to acquire the land, and title it, get a horizontal construction, the utilities, the roads and everything and build the first phase. We raise all the money for that, we don't take any bank financing because we do not want to get stuck in that situation; which again, took down the biggest of builders. National builders went down because of their loans, because they're financing. So we just own it with cash, we take all the money from the first phase, use that to build the second phase and our investors get a nice 15% preferred return in a situation where there's no leverage.    Now I love leverage, I love leverage. And it's different on a multifamily and certainly on one to four units; I’m all about leverage. Just make sure that it's the kind of leverage that you could live with. On a single family home, just make sure, again, you've got the right insurance on that property too. I do know somebody who owned a single family home in Houston, didn't have that named insurance, their house flooded and insurance didn't cover it. So even for a single family up to a big multifamily, you really need advice on your insurance.     James: Interesting,  I just learned something new, that construction loan and how the builders, because we always wonder how did the building not happen. So now it makes sense because the construction loan, the bank doesn't have the money and they just said, no more, already done.    Kathy: You're done. You had everything you need, it all lined up. But even people who had their money in the bank, they couldn't access it. For a lot of people our equity lines, they were just gone. In 2009, I had a developer come to me with somebody who actually listens to the real wealth show and he said, you're just not going to believe the kinds of things I can pick up from the banks, from the REO departments. And these asset managers don't know what they've got; they don't know how to value it. But there were these subdivisions one after another that literally could not be completed because the loans were gone. And I didn't know that I could raise money, but I tried it and we raised $3 million dollars in one event. And we were able to buy 27 waterfront town homes in Portland, in the Pearl district, the hottest part of Portland. They were 70% complete, they were totally built; the only thing that wasn't done was the interior. All we had to do is put in the kitchens and the bedrooms and the carpets and finish it off; and, so we were able to buy it for $3 million, all 27 units, when the loan alone had been 13 million. And then we just finished them off because the builder couldn't do it.  James: That's the opportunity you get in the downturn I guess, if you've got the cash and you know how to do it kind of thing, very Interesting. So, let's go to a more personal side, Cathy because you have a big network of investors and you have a big presence on the radio and also on the podcast side of it. So why do you what you do? I mean, what's your big why in your whole venture?  Kathy: That's a great question. It started out more self focused. My husband was told in 2003 that he had melanoma, that it had spread, and the doctor thought it spread to his liver and metastasize and told my husband he had six months to live. No one should put a timeline on your life and the doctor was wrong, and Rich is fine today. However, 16 years later, he is fine. Although he gets regular checks, make sure his skin is okay because he's a surfer and a rock climber; and he's still out there in the sun. So in the beginning it was like, I got to figure out how to make money. I don't believe the doctor is right but if he is, I've got two kids, I've got a house, I've got to figure this out. So I just changed my radio show to, how to make money. So in the beginning it was a passionate desire to take care of my husband and my children and learn the secrets of the wealthy and that's how the real wealth show started.  Then when I learned the secrets, and found out that people are willing to share them, people like Robert Kiyosaki, he was willing to come on my show and tell me his secrets; that's how we ended up investing in Texas.  I just couldn't believe what I was hearing; I just couldn't believe that there was this way to build wealth that no one had told me.  I just couldn't believe it and all the ins and outs of how to get loans and how to clean up your credit and the tax benefits and the leverage; there’s no other way to build wealth. I just couldn't believe it.   So it opened my eyes, gave me hope. We followed, we made mistakes, but even with mistakes and even with losing our money and other people's money in the beginning, we got back up on our feet and it works. And now when I help people, I see, I have people who've been following me since then. And I just had someone on my show last week who said, I did everything you said and I'm retired now, it worked, it worked; 10 years later. So I know it works and  so I'm passionate about helping other people who were in the same situation I was in, which was absolute terror. How was I going to take on the payments of our big house and raise these two little children as a single mother, if the doctor was right? We blew through our medical bills. What was I going to do? I wasn't going to go get a job and be away from my kids for 10 hours a day. So to learn the secrets of the wealthy, to learn passive income and to be able to share that with other people and see their light bulbs go on and like, oh my gosh, this is incredible, how is this possible?  I don't know, I don't know why we're not taught it in school? That’s my why.  James: Yeah. I realized with my first single family, when I start getting that monthly cash, [44:07 inaudible] actually, this really works.  Kathy: It works, it works. James: Yeah. Somebody else paying for your mortgage and cash flows and you buy it right, all kinds of things, it definitely works. It's amazing. Correct.    Kathy: I got my daughter, when she was 24; she got a job right out of college, worked for two years, was making pretty good money. She lived in Chico, which is northern California, and  you know the  home prices there aren't totally inflated like they are today, but they weren't two years ago when she bought. She's only 24 years old, and she came to me and said, hey mom, I'm going to buy a new car. I said, no, no; before you buy a car, because that's going to affect your debt to income ratios, let's just talk about buying a house. Oh Mom, I'm too young, I'm too young to buy a house. I'm like; do you know who your mother is? We need to talk. So we went to a mortgage broker and sure enough, she could qualify for a house up to $300,000; she was blown away.    It turns out that her payment was less than what she was paying in rent for a two bedroom; she could get a three bedroom. So we went house shopping, she found a house that needed a little bit of work, so she got a good deal on it right across from Bidwell Park, amazing location. And then when she bought it, she realized there was a lot of work and then she got real mad at me for about six months. She's like, mom, I'm 24 I'm too young for all this, I don't want to be settled down, I'm a millennial. I'm not supposed to be settling down, it’s too much, I hate this house. I said, honey, just trust me.  Well then the fires happened, right? And Paradise got completely wiped out an entire city, suddenly. She had put her house on Airbnb to rent out a couple of rooms on certain holidays and so forth. All of a sudden her Airbnb app was just blowing up with people saying, I'll pay $4,000 a month for your place. And her rent is $1,600, not her rent, her mortgage, PITI, taxes and insurance, $1,400 and she was getting people willing to rent for 4,000. So she took that offer, she rented it to a very nice family who lost their home and she went cash flowing incredibly. And she's like, I get it now, mom, this is better than a car, I get it.    James: And she can buy a car with that money, right? And be comfortable paying for it too.   Kathy: That's right, she can buy a car.   James: Can you name a few of your secret sauces that you have grown this big, in terms of popularity and getting known by people? What's your secret sauce? Kathy: You know, everybody has their thing. I happen to love broadcasting, that's my background. I went to school in broadcasting, so radio and podcasts that was just something I love to do.  I love to write, I love to educate, so I just followed my passion.  I know a lot of people want to start podcasts right; maybe they're not suited for that. For me, it was just passion and bullishness and desire to learn. And I think because I was on a major San Francisco station, I got invited to speak at a lot of [47:29 inaudible] before I knew anything about the business. It was terrible; I'd stand in front of the room, I don't know what I'm talking about. But that's when I realized, a lot of people don't know what they're talking about.  So I just made it my mission to understand and to read as many books and to truly become an expert because I started to see that people who were being treated as experts, really weren't, and that was upsetting because they were guiding people in the wrong direction. So I guess you could say that's part of what... another thing is, I'm just really bullish. If I want to go to an event and I don't want to pay $2,000 for it, I'll just call and ask if I could be a speaker and a lot of times they'll say yes; sometimes it was just for personal reasons.  James: Okay, that's interesting. When I hear you on your podcast, it's like a newscaster, like Fox or CNN, you know? Its like, is that Kathy? Oh, it sounds really good. You have a really good voice and a presence on the radio and podcasts, that's awesome. Is there any proud moments in your life that you think it's going to be with you until the end? Do you think, I am very proud of this moment, related to business? Kathy: Related to business? Wow, there's been a few.  I would say it's our ability to raise money.  I'll tell you one, a developer that we love came to us and said he'd been working on entitlements on this land for 10 years; it had been very difficult to get the entitlements, but he wouldn't bring us in, until he had them. Which was great and we wouldn't do the deal until he had them. Well, he got them, but he was in a hard money loan because it took so long. It was actually a friend of his, lent him the money for six months and he was at the five month mark, and he thought his friend would extend it and his friend said, no. The loan was for 4 million, the property was worth 9 million. So this friend lent the money for six months, knowing that he would probably foreclose and take the 4 or 5 million in equity, from his friend. So he came to us and said, I just can't believe he's doing this, can you raise the money in a month? And I said, I don't know? So we did, we did an event, we raised the money, we paid off that hard money loan the day it was due. And that guy already had come to the property telling everybody he was their new boss.  James: Wow. So he was really wanting to take it, I guess  Kathy: He was a shark, yeah. And so to be able to come in and save this developer, because we had built a network of people who are willing to write a check so quickly, it really meant a lot. He invited us to a dinner once we closed and he had 50 employees there, all who would have lost their jobs, if we hadn't been able to do that. So, I would say that was a moment that I was very proud of; and our investors are going to be the ones who benefit from all that equity, not this guy who is just a shark.  James: Got It. That's very interesting. I can't resist asking you one question because you raise a lot of money from investors. So, who would you invest with? What kind of sponsor or syndicator that you would look for? What are their characteristics? You don't have to have no names, but what are the character types or characteristic that you would look for, if you want to invest. Because you have seen the whole gamut of our real estate cycle and what people do and all that.   Kathy: Well,  and I am investing in other people's deals. What I look for is kind of what I told you. Track record, experience, a deal that favors, I don't want to say favors the investor, but is very fair, investor friendly. I don't like seeing deals where they're fees here  and fees there, so you get a piece of the profit, but there's no profit at the end because they've charged so many fees along the way, there's nothing for you. So just investor friendly projects, but mainly it would be people with a tremendous track record and who has been through several cycles, at least someone on the team has several decades of experience. At this point, I think a lot of people are looking for cash flow, though a lot of our deals have been development, it's not cash flow, we just get a big check at the end once the project's done. But the ongoing cash flow, there’s only a few that really know how to keep that cash flow going in any kind of cycle. So those are the people for my retirement that I would want to be investing with.  James: Okay, awesome. All right, Kathy thanks for coming on the show. Can you tell the listeners how to get hold of you?  Kathy: Sure. You can go to Real Wealth Network. Real as in real estate, wealth as in your money and network as the network we have nationwide; Real Wealth Network.com. You can join for free and it just opens up all these portals in our website. It gives you data on different cities, where the job growth is, the demographics; you get a session with one of our investment counselors and ongoing education. It's all for free@ realwealthnetwork.com And then of course, my podcast, Real Wealth Show.  James: Awesome. It's really nice to have you on the show and I'm sure you add tons of value, so happy to have you here.  Kathy: Thank you so much.    James: Thank you.    Kathy: Take care. Bye.

James: Hey listeners, this is James Kandasamy. Welcome to Achieve Wealth Podcast. Achieve Wealth Podcast focuses on value at real estate investing across different commercial asset class and we focus on interviewing a lot of operators so that you know, I can learn and you can learn as well. So today I have Omar Khan who has been on many podcasts but I would like to go into a lot more details into is underwriting and market analysis that he has. So Omar is a CFA, has more than 10 years investing across real estate and commodities. He has experience in the MNA transaction worth 3.7 billion, Syndicated Lodge a multi-million deal across the U.S. and he recently closed a hundred thirty plus something units in Jacksonville, Florida. Hey Omar, welcome to the show.  Omar: Hey, thank you James. I'm just trying to work hard to get to your level man. One of these days.  James: That's good. That's a compliment. Thank you Omar. So why not you tell our audience anything that I would have missed out about you and your credibility. Omar: I think you did a good job. If I open my mouth my credibility might go down.  James: Yes, that's good. That's good. So let's go a bit more details. So you live in Dallas, right? I think you're, I mean if I've listened to you on other podcasts and we have talked before the show you came from Canada to Dallas and you bought I think you have been looking for deals for some time right now. And you recently bought in Jacksonville. Can you tell about the whole flow in a quick summary?  Omar: Oh, yes. Well the quick summary is man that you know, when you're competing against people who's operating strategy is a hope and a prayer, you have to look [inaudible01:54] Right?  James: Absolutely.  Omar: I mean, and hey just to give you a full disclosure yesterday there was actually a smaller deal in Dallas. It's about a hundred and twenty something units. And I mean we were coming in at 10-point some million dollars. And just to get into best and final people were paying a million dollars more than that, and I'm not talking just a million dollars more than I was trying to be cheap. The point was, at a million dollar more than that there is freaking no way you could hit your numbers, like mid teens that are already 10% cash-on-cash. Like literally, they would have to find a gold mine right underneath their apartment. So my point is it's kind of hard man. But what are you going to do about it? Right?  James: Yes. Yes. Omar: Just have to keep looking. You have to keep finding. You have to keep being respectful of Brokers' times. Get back to them. You just keep doing the stuff. I mean you would do it every day pretty much.  James: Yes. Yes. I just think that there's so much capital flow out there. They are a lot of people who expect less, lower less return. Like you say you are expecting mid teen IRR, there could be someone there out there expecting 10 percent IRR and they could be the one who's paying that $1,000,000. Right? And maybe the underwriting is completely wrong, right? Compared to-- I wouldn't say underwriting is wrong. I mean, I think a lot of people-- Omar: Well you can say that James you don't have to be a nice person. You can say it.  James: I'm just saying that everybody thinks, I mean they absolutely they could be underwriting wrong, too or they may be going over aggressively on the rent growth assumption or property tax growth assumption compared to what you have. At the same time they could have a much lower expectation on-- Omar: Yes. I mean let's hope that's the case because if they have a higher expectation man, they're going to crash and burn. James: Absolutely. Omar: I hope, I really hope they have a low expectation.  James: Yes. Yes. I did look at a chart recently from Marcus and Millichap the for Texas City where they show us how that's like a San Antonio, Austin, Dallas and Houston and if you look at Dallas, you know, the amount of acceleration in terms of growth is huge, right? And then suddenly it's coming down. I mean all markets are coming down slightly right now, but I'm just hopefully, you know, you can see that growth to continue in all this strong market. Omar: No, no, don't get me wrong, when I said somebody paid more than 1 million just to get into best and final, that has no merits on, that is not a comment on the state of the Dallas Market. I personally feel Dallas is a fantastic Market. Texas overall, all the big four cities that you mentioned are fantastic but my point is there is nothing, no asset in the world that is so great that you can pay an infinite price for it. And there's nothing so bad in the world that if it wasn't for a cheap enough price, you wouldn't want to buy it. James: Correct, correct.  Omar: I mean that that's what I meant. I didn't mean it was a comment on the state of the market.  James: Got it. Got it. So let's come to your search outside of the Texas market, right? So how did you choose, how did you go to Jacksonville?  Omar: Well, number one the deal is I didn't want to go to a smaller city. I'm not one of those guys, you know in search of [inaudible05:11] I find everybody every time somebody tells me I'm looking for a higher cap rate, I was like, why do you like to get shot every time you go to the apartment building? You want to go to the ghetto? Do you want somebody to stab you in the stomach? Is that because that's-- James: That's a lot of deals with a higher cap rate. Omar: Yes. There's a lot because I was like man, I can find you a lot of deals with really high cap rates.  James: Yes. Omar: But you might get stabbed. Right?  James: And they are set class 2 which has higher cap rate.  Omar: Oh, yes, yes, yes.  James: So I think people just do not know what a cap rate means or how-- Omar: Yes and people you know, all these gurus tell you today, I mean let's not even get into that right. So specifically for us like I wanted to stand at least a secondary, tertiary market [inaudible 05:48] I mean like, any City over at least eight, nine hundred thousand at least a million, somewhere in that range, right?  James: Okay. Omar: And specifically look, after Texas it was really Florida. Because look, you could do the whole Atlanta thing. I personally, I love Atlanta but it's a toss-up between Atlanta and say either of the three metros in Florida or Jackson. Lords in Central Florida, Jacksonville, Tampa, Orlando. You know based on my [inaudible06:11] experience I was doing this stuff portfolio management anyways, I kind of ran smaller factor model for all the cities where I took in different sort of factors about 30 different factors. And then you know, you kind of just have to do all the site tours and property visits to make all those relationships. And what I see across the board was, I mean Tampa has a great Market, but for the same quality product for the same demographic of tenant, for the same say rent level, Tampa was 20 to 25% more expensive on a per pound basis.  James: Okay. Omar: Let's say a Jacksonville, right? Orlando is kind of in the middle where the good deals were really expensive or rather the good areas were a bit too dear for us and the bad areas were nicely priced and everybody then tells you, "Oh it's Florida." right? James: No, no. Omar: But what they don't tell you is there's good and bad parts of Florida-- James: There's submarket. Yes Yes. Omar: Right? So you got to go submarket by submarket. And then lastly what we were basically seeing in Jacksonville was, it was very much a market which like for instance in Atlanta and seeing parts of say Orlando and Tampa, you can have to go block by block street by street. But if you're on the wrong side of the street, man you are screwed, pretty much. James: Absolutely. Omar: But Jacksonville to a certain degree, obviously not always, was very similar to Dallas in the sense that there is good areas and then there's a gradual shift into a not as a [inaudible07:29] Right? So basically what you kind of had to do was name the submarket properly and if you had a higher chance of success than for instance [inaudible07:38] right down to the street corner, right? And then like I said the deals we were seeing, the numbers just made more sense in Jacksonville for the same level of demographic, for the same type of tenant, for the same income level, for the same vintage, for the same type of construction. So Jacksonville, you know, we started making relationships in all the markets but Jacksonville is where we got the best bang for our buck and that's how we moved in.  James: Okay. So I just want to give some education to the listener. So as what Omar and I were talking about, not the whole city that you are listening to is hot, right. So, for example, you have to really look at the human capital growth in certain parts of the city, right? So for example in Dallas, not everywhere Dallas is the best area to invest. You may have got a deal in Dallas but are you buying in it in a place where there's a lot of growth happening? Right? Like for example, North Dallas is a lot of growth, right? Compared to South Dallas, right? In Atlanta that's I-20 that runs in between Atlanta and there's a difference between, you cross the I-20 is much, you know a lot of price per pound or price per door. It's like a hundred over door and below Atlanta is slightly lower, right? So it's growing, but it may grow it may not grow. I mean right now the market is hot, everything grows. So you can buy anywhere and make money and you can claim that, hey I'm making money, but as I say market is-- Omar: [inaudible09:03] repeatable [inaudible09:04] By the way I look at it, is hey is this strategy repeatable? Can I just rinse and repeat this over and over and over? James: Correct. Correct. I mean it depends on sponsor's cases. While some sponsors will buy because price per dollar is cheap, right? But do they look at the back end of it when the market turns, right? Some sponsors will be very very scared to buy that kind of deal because we always think about, what happens when the market turns, right? So. Omar: Yes, James and the other thing that I've seen is that, look, obviously, we're not buying the most highest quality product. James: Correct. Omar: But what I've seen is a lot of times when people focus on price per unit, say I will go for the cheapest price per unit. Well, there's a reason why it's cheap because you know, there's a reason why Suzuki is cheaper than a Mercedes. Now, I'm not saying you have to go buy a Mercedes because sometimes you only need to buy a Suzuki. Right? I mean that's the way it is, but you got to have to be cognizant that just because something is cheap doesn't mean it's more valuable and just because something is more expensive doesn't mean it's less than.  James: Correct. Correct. Correct. And price per door is one I think one of the most flawed metrics that people are talking about. Price per door and also how many doors do people own? Omar: And also cap rate, man. [inaudible 10:09]  James: Cap rate, price per door and-- Omar: How many doors have you got? James: How many doors do you have? Three metrics is so popular, there is so much marketing happening based on these three metrics. I mean for me you can take it and throw it into the trash paper, right? Omar: The way I look at it is I would much rather have one or two really nice things, as opposed to 10 really crappy things.  James: Correct. Correct. Correct. Like I don't mind buying a deal in Austin for a hundred a door compared to buying a same deal in a strong Market in another-- like for example, North Atlanta, right? I would rather buy it in Austin. It's just different market, right? So. Absolutely different. So price per door, number of doors and cap rate, especially entry cap rate, right? I went back and cap rate you can't really predict, right? So it's a bit hard to really predict all that. But that's-- Omar: Yes but my point is with all of these things you have, and when people tell me cap rate I'm like, look, are you buying stabilized properties? Because that's the only time you can apply this. James: Correct. Correct. Omar: Otherwise, what you really going to have to look at is how much upside do I have because at the end of the day, you know this better than I do. Regardless of what somebody says, what somebody does, everything is valued on [inaudible11:15] James: Correct. Omar: Pretty much. You can say it's a low cap rate and the broker will tell you, well yes the guy down the street bought it for a hundred and fifty thousand a unit so you got to pay me a hundred fifty, right? And then that's the end of the conversation.  James: Yes. Omar: Literally, I mean that is the end of the conversation, right? What are you going to do about it?  James: Yes. Correct. I mean the Brokers they have a fiduciary responsibility to market their product as much as possible, but I think it's our responsibility as Sponsor to really underwrite that deal to make sure that-- Omar: Oh yes. James: --what is the true potential. Omar: And look, to be honest with you sometimes the deal, that is say a hundred and fifty thousand dollars a unit might actually be a better deal-- James: Oh absolutely. Omar: [inaudible 11:51] fifty thousand dollars a unit. I mean, you don't know till you run the numbers. James: Correct. Absolutely. Absolutely. I've seen deals which I know a hundred sixty a door and still have much better deal than something that you know, I can buy for 50 a door, right? So. You have to underwrite all deals. There's no such thing as cap rate or no, such thing as price per door. I mean you can use price per door to a certain level.  Omar: [inaudible 12:15] in this market what is the price per door? That's the extent of what you might potentially say, in the submarket.  James: Correct. Omar: All the comps are trading at 75,000 a door. Why is this at 95 a door?  James: Yes. Omar: That's it.  James: I like to look at price per door divided by net square, rentable square footage because that would neutralize all measurements. Omar: Yes, see, you know we had a little back and forth on this, I was talking to my Analyst on this but my point is that I would understand [inaudible 12:46] at least to my mind. Okay. I'm not, because I know a lot of Brokers use it.  James: Sure. Omar: In my mind that would apply to say, Commercial and Industrial properties more. But any time I've gone to buy or say rent an apartment complex, I never really go and say like, hmm the rent is $800. It's 800 square feet. Hmm on a per square foot basis. I'm getting one dollar and then I go-- James: No, no, no, I'm not talking about that measurement. I'm talking about price per door divided by square footage rentable because that would neutralize between you have like whether you have a lot of smaller units, or whether you have a larger unit and you have to look-- but you have to plot it based on location. Right? So. Omar: Yes, so you know as you get into those sort of issues right? Well, is it worth more than that corner?  James: Yes. Yes. You're right. Yes. You have to still do rent comes and analyze it.  Omar: Yes. James: So let's all-- Omar: I mean look, I get it, especially I think it works if you know one or two submarkets really well. Then you can really-- James: Correct. Correct. That's like my market I know price because I know the market pretty well. I just ask you this information, just tell me price per door. How much average square feet on the units and then I can tell you very quickly because I know the market pretty well. Omar: Because you know your Market, because you already know all the rents. You already know [crosstalk13:57] James: [crosstalk13:57] You have to know the rent. I said you have to build that database in your mind, on your spreadsheet to really underwrite things very quickly. So that's good. So let's go back to Jacksonville, right? So you looked-- what are the top three things that you look at when you chose Jacksonville at a high level in terms of like the macroeconomic indicators? Omar: Oh see, I wasn't necessarily just looking at Jackson. What I did is I did a relative value comparison saying what is the relative value I get in Jacksonville versus a value say I get in a Tampa, Atlanta or in Orlando and how does that relatively compare to each other?  James: So, how do you measure relative-- Omar: What I did is for instance for a similar type of say vintage, right? Say a mid 80s, mid 70s vintage, and for a similar type of median income which was giving me a similar type of rent. Say a median income say 40 Grand a year or 38 to 40 Grand a year resulting in an average rate of about $800. Right? And a vintage say mid 70s, right? Board construction. Now what am I getting, again this is very basic maths, right? This is not I'm not trying to like make up.  James: Yes. Absolutely. Omar: A model out of this, right? So the basic math is, okay what is the price per unit I'm getting in say, what I have a certain crime rating, I have a certain median income rating and I have a certain amount of growth rating. And by growth I mean not just some market growth, [inaudible 15:21] are Elementary Schools nearby? Are there shopping and amenities nearby? Is Transportation accessible, you know, one or two highways that sort of stuff. Right? So for those types of similar things in specific submarkets, [inaudible 15:33] Jacksonville had three, Tampa had two and Orlando had three and Atlanta had four, right? What is the average price per unit I'm facing for similar type of demographics with a similar type of rent profile? With similar type of growth profile I mean you just plot them on a spreadsheet, right? And with the similar type of basically, you know how they performed after 2008 and when I was looking at that, what I was looking at again, is this precise? No, it's not a crystal ball. But these are just to wrap your head around a certain problem. Right? You have to frame it a certain way.  James: Okay. Omar: And what I was seeing across the board was that it all boils down to when you take these things because at the end of the day, all you're really concerned is what price am I getting this at, right? Once you normalize for all the other things, right? James: Correct. Correct. Omar: Right? And what I was seeing was just generally Jacksonville, the pricing was just like I said compared to Tampa which by the way is a fantastic market, right? But pricing was just 15 to 20% below Tampa. I mean Tampa pricing is just crazy. I mean right now I can look at the flyer and tell you their 60s and mid 70s vintage is going for $130,000 $120,000 a unit in an area where the median income is 38 to 40 Grand. James: Why is that? Omar: I don't know. It's not one of this is that the state Tampa is actually a very good market, okay. Let's be [inaudible 16:47] it's very good market. It's a very hot market now. People are willing to pay money for that. Right? So now maybe I'm not the one paying money for it, but there's obviously enough people out there that are taking that back. So. James: But why is that? Is it because they hope that Tampa is going to grow because-- Omar: Well, yes. Well if Tampa doesn't grow they're all screwed James. James: No, but are they assuming that growth or are they seeing something that we are not seeing? Because, if people are earning 30, 40 thousand median household income and the amount of apartment prices that much, they could be some of the metrics that they are seeing that they think-- Omar: Well, yes. Tampa's growth has been off the charts in the past few years, right? James: Okay. Okay. Omar: So what look-- first of all this is the obvious disclaimer is I don't know what I don't know. Right? So I don't know what everybody else is looking at. Our Tampa's growth has been off the charts, there is a lot of development and redevelopment and all that stuff happening in the wider metro area. So people are underwriting five, six, seven, eight percent growth.  James: Okay. So the growth is being-- Omar: No, the growth is very-- look the growth has been very high so far. James: Okay. Got it. Omar: My underlying assumption is, as I go in with the assumption that the growth must be high but as soon as I get in the growth will go down.  James: But why is that growth? I mean that is specific macroeconomic.  Omar: Oh yes, yes. There's first of all, there's a port there, number one. The port -- James: In Tampa. Okay. You're talking about Jacksonville or Tampa right now? Omar: No, I'm talking Tampa. James: Okay. Omar: Jacksonville also has it, but Tampa also has it, okay. James: Okay. Got it. Got it. Omar: Tampa is also fast becoming, Tampa and Orlando by the way are connected with this, what is it? I to or I for whatever, it's connected by. So they're faster like, you know San Antonio and Austin how their kind of converging like this? James: Correct. Correct. Omar: Tampa and Orlando are sort of converging like this. James: Got it. Got it. Omar: Number one. Number two, they're very diversified employment base, you know all the typical Medical, Government, Finance, Healthcare all of that sort of stuff, right? Logistics this and that. And plus the deal is man, they're also repositioning themselves as a tourist destination and they've been very successful at it. James: Okay.  Omar: Because there's lots to do you know you have a nice beach. So, you know that kind of helps all this, right? Have a nice beach. James: Correct. Correct. Omar: Really nice weather, you know. So they're really positioning it that way and it also helps that you've got Disneyland which is about 90 minutes away from you in Orlando. So you can kind of get some of the acts things while you come to Tampa you enjoy all the stuff here. Because Orlando relative to Tampa is not, I mean outside of Disneyland there's not a lot to do though. But a lot of like nightlife and entertainment and all that.  James: But I also heard from someone saying that like Orlando because it is more of a central location of Florida and because of all the hurricane and people are less worried about hurricane in the central because it you know, it has less impact. Omar: James. James. James: Can you hear me? Omar: When people don't get a hurricane, they are not going to be the people who get the hurricane. Other people get hurricanes. Not us. James: Correct, correct. Omar: But that's not always the case but that's the assumption.  James: Okay. By Tampa is the same case as well? Like, you know because of-- Omar: I don't know exactly how many hurricanes they've got but look man, they seem to be doing fine. I mean if they receive the hurricane they seem to be doing very fine after a hurricane.  James: Okay. Okay. So let's go to Jacksonville, that's a market that did not exist in the map of hotness, of apartment and recently in the past three, four years or maybe more than that. Maybe you can tell me a lot more history than that. Why did it pop out as a good market to invest as an apartment? Omar: Well, because Jackson actually, we talk to the Chamber of Commerce actually about this. And the Chamber of Commerce has done a fantastic job in attracting people, number one. Because first of all Florida has no state income tax. What they've also done is a very low otherwise state a low or minimum tax environment [inaudible20:29] What they've also done is, they reconfigured their whole thing as a logistical Center as well. So they already had the military and people always used to say, oh Tampa, Jacksonville's got a lot of military, but it turns out military's only 11% of the economy now. James: Okay. Okay. Omar: So they've reposition themselves as a leading Health Care Center provider, all that sort of, Mayo Clinic has an offshoot there by the way, just to let you know. It's a number one ranked Hospital.  James: Oh Mayo Clinic. Okay. Okay. We always wonder what is Mayo Clinic, but now you clarified that. Omar: Right? So Mayo Clinic is in Rochester I think. One of my wise colleagues is there actually. Think it's in Rochester Minnesota. It's one of the leading hospitals in the world. James: Okay. Got it. Omar: And now they've actually had an offshoot in basically Jacksonville, which is the number one ranked Hospital in Florida. Plus they've got a lot of good healthcare jobs. They've really repositioned themselves not only as a great Port because the port of Jacksonville is really good and they're really expanding their ports. You know Chicon, the owner of Jacksonville Jaguars, man he's going crazy. He is spending like two or three or four billion dollars redeveloping everything.  James: Got it. Got it. Omar: [inaudible 21:32] what they've done is because of their location, because they're right, I mean Georgia is about 90 minutes away, Southern Georgia, right? And now you have to go into basically, Florida and basically go to the Panhandle. What they've also done is because of their poor, because of their transportation Network and then proximity to the East Coast they repositioned themselves as a Logistical Center as well.  James: Got it. That's what I heard is one of the big drivers for Jacksonville. And I also heard about the opening of Panama Canal has given that option from like importing things from China. It's much, much faster to go through Panama Canal and go through Jacksonville. Omar: Oh, yes. James: Makes it a very good distribution centre. Omar: Because the other board right after Jacksonville in which by the way is also going through a big redevelopment and vitalization is Savannah, Georgia.  James: Okay. Yes. Omar: [inaudible 22:17] big enough and I think Jacksonville does something like, I mean don't quote me on this but like 31% of all the cars that are imported into the U.S. come through the Jacksonville Port. So there's a lot of activity there, right? But they've really done a good job. The Government there has done a fantastic job in attracting all this talent and all these businesses.  James: Okay. Okay. Got it. So let me recap on the process that you came to Jacksonville and going to the submarket. So you looked at a few big hot markets for apartments and looked at similar characteristics for that submarket that you want like for closer to school, in a good location and you look at the deal flow that you are getting from each of these markets. And then you, I mean from your assessment Jacksonville has a good value that you can go and buy right now for that specific demographic of location I guess, right? Omar: Look I love Atlanta as well. I was actually in Atlanta a few weeks ago looking at some, touring some properties. So that doesn't mean Atlanta isn't good or say Tampa or Orlando is good. We were just finding the best deals in Jacksonville.  James: Okay. Okay. So the approach you're taking is like basically looking at the market and shifting it to look for deals in specific locations of submarket where you think there is a good value to be created rather than just randomly looking at deals, right? Because-- Omar: Because man it doesn't really help you, right? If you really go crazy if you try to randomly look at deals.  James: Yes. Yes. I think a lot of people just look at deals. What, where is the deal? What's the deal that exist? Start underwriting the deals right? So-- Omar: Oh I don't have that much free time and I have a son who's like 18 months old man My wife is going to leave me if I start underwriting every deal that comes across my desk.  James: Yes, I don't do all the deals that comes across. Omar: I'm going to kill myself trying to do all that. Yes man it's very surprising I see a lot of people especially on Facebook posting. I mean I get up in the morning and I see this, [inaudible 24:05] who loves to underwrite deals? And I'm like, dude it's 1 a.m. Go get a beer. Why are you underwriting a deal at 1 a.m., man?  James: Yes. Yes. Yes I think some people think that you can open up a big funnel and make sure you know out of that funnel you get one or two good deals, right? But also if you have experience enough you can get the right funnel to make sure you only get quality data in, so that whatever comes in is more quality. Omar: My point is man, why do you want to underwrite more deals? Why don't you underwrite the right deal and spend more time on that deal or that set of deals. James: Correct. Omar: Because there's just so many transactions in the U.S. man. There's no way I can keep up man. James: Correct. Correct. Correct. So let's go to your underwriting Jacksonville because I think that's important, right? So now you already select a few submarkets in Jacksonville, right and then you start networking with Brokers, is that what you did?  Omar: Yes. Yes but you know with Brokers also, you kind of have to train them, right? Because what happened is every time what are you looking at? All that after all that jazz, wine and dining and all that stuff. We had to train Brokers [inaudible25:08] here are only specific submarkets we're looking at. So for instance Jacksonville, it was San Jose, San Marcos, it's the beaches, it was Mandarin and orange [inaudible25:16]  James: Okay. Omar: And Argyle Forest was certainly, right? If it's anything outside of that, unless I don't know it's like the deal of the century, right? Literally, somebody is just handing it away. We don't want to look at it. Don't waste my time. And invariably what the Brokers will do, because it's their job they have to do it. They'll send you deals from other submarkets because they want to sell. Hey, I think this is great. You will love this. James: Yes. Omar: And you have to keep telling them, hey man I really appreciative that you send me this stuff, not interested. Not interested. So, but what that does is you do this a few times and then the Broker really remembers your name when a deal in your particular submarket does show up. Because then you go to the top of the pile. James: Correct. Because they know that you asked specifically for these right now.  Omar: Yes. [inaudible25:58] You know the deal. Right? So that's kind of what we get, right? James: So let's say they send a deal that matches your location. So what is the next thing we look at? Omar: So what I basically look at is what are the demographics. Median income has got to be at the minimum 38 to 40 thousand dollars minimum. James: What, at median household income? Omar: Median household income. Right? James: Got it. Got it. Why do you think median household income is important? Omar: Because look, again this is rough math I didn't do a PhD in [inaudible 26:27]  James: Sure, sure, sure. Go ahead. Omar: Typically, you know, where [inaudible 26:30] everybody says BC but really everybody is doing C. Okay, you can just-- I think people just say B to sound nice. Right? It's really C. Okay, let's be honest. Right? Typically with a C if you're going to push [inaudible 26:41] within one or two years, in these submarkets at least, I don't know about other areas. Typically you want to push the rents to around a thousand dollars a month, give or take. Average rate. I'm just talking very cool terms, right? Which basically means that if you're pushing it to a thousand dollars a month and the affordability index is it should be 33%, 1000 times 12 is 12, 12 times 3 is 36. So I just added an extra 2,000 on top or 4000 on top just to give a margin of safety.  James: Okay. Omar: Right? It's very simple math, right? There's nothing complex in it. Right?  James: Correct. Omar: Because my point is if you're in an area where the average income is 30,000, man you can raise your rent all you like. Nobody's going to pay you. James: Yes. Yes, correct. So I think we can let me clarify to the listeners, right? So basically when you rent to an apartment, we basically look for 3x income, right? So that's how it translates to the household income, average household income and if you want to do a value-add or where deals, you have a margin of buffer in our site and you're buying it lower than what the median household income, that's basically upside. That means you can find enough renters to fill up that upside, right?  Omar: Yes. James: Just to clarify to the listeners. So go ahead. So you basically look up median household income. What is the next step do you look for? Omar: Then I basically look at crime. Basically, I just-- I mean look, there's going to be a level of crime, what I'm really looking at is violent crime. Right? James: Violent crime. Okay. How do you look for which tools to use?  Omar: Well, you can go to crime map, crime ratings, you can subscribe to certain databases and they can give you neighborhood Scout is one by the way.  James: Okay. Okay. Omar: You can use that. And then on top of that because it's harder to do this for Texas, but you can do this in other states like Florida, Georgia and all of that. But for instance, what you can do is see what the comps in the submarket are. Right? And that kind of helps you in determining basically, look if all the properties for a certain vintage around you have traded for a certain amount of money, then if something is up or below that there's got to be a compelling reason for that. Now I'm not saying if it's above it's a bad reason and don't do it. There's got to be a compelling reason. Now they might be actually a very good reason. Right? James: Got it. Omar: So, you know that's like a rough idea and then basically I'm looking at rent upside. Basically look at co-stars and see what the average rents are for this property. What is roughly the average rent upside and you can also seek [inaudible29:04] place that I had a few contacts in Jacksonville and you can also call those up. Right? Again, rough math kind of gives you hey, do I send five hundred two hundred dollars and then basically see what is the amount of value [inaudible29:16]. Because for instance, if all the units have been renovated which by the way happened yesterday. Yesterday we came across [inaudible29:22] in Jackson where I know the Broker and I mean he sent me the email. You know, the email blast out and basically what we saw was the location was great, there's a lot of rent up, supposedly there's rent upside, but when I called the guy up, we know each other. He's like, bro, all the units have been renovated. There's maybe 50, 75, I know you so I'm going to tell you there's only 50, 75 so the price isn't going to be worth it. James: Yes, and they'll ask you to do some weird stuff, right? Like go there, washer, dryer, rent the washer dryer out. Omar: Yes. Yes. James: But charge for assigned parking, right? So very small amount in terms of upside, right? Omar: My point is if it was so easy why don't you do it? James: Yes. Correct. Omar: That's the way I look at it.  James: Yes, usually I mean when I talk to the Brokers I will know within the few seconds whether it's a good deal or not. They'll be really excited if it matches what we are looking for, right? Especially-- Omar: Yes because I think the other deal is if you develop a good relationship with Brokers and they know what you're specifically looking for, good Brokers can kind of again look they have to sell but they can also give you some guidance along the way. James: Correct. Correct. Omar: Right? They can do a lot bro, it doesn't really work for you I think, but I'm just going to be honest with you, and look you still have to take it with a grain of salt but it is what it is.  James: Correct, correct. Okay. So look for rent upside by looking at rent comps and you said in Texas which is a non-disclosure state it's hard to find sales comp but…  Omar: Yes, but look, you know if you're in a market you're going to know who the people are doing deals. Which people are doing deals.  James: Okay. Omar: And even if you don't know it, say your property manager kind of knows it, or your  loan broker or lender knows kind of what deals have traded in the market. You got me. You can pick up a phone and call some people, right? Maybe you don't get all the information but you can get, I mean if you're in submarket or sometimes even in Texas, you can't know.  James: Yes, exactly. Exactly. So when do you start underwriting on your Excel sheet?  Omar: Oh bro after I've done the property tour because if these don't even pass this stuff why you even bothering to underwrite it.  James: Oh really? So okay. So you basically look at market-- Omar: [inaudible 31:28] My point is, if it passes all these filters and then I have a conversation, I talk to my property manager, I talk to the Broker, I talk to my local contacts there and if it's all a go and these are all five-minute conversations or less. It's not like a two hour long conversation if it passes through all this they're just going to [inaudible 31:45] property door, man.  James: Okay, so you basically-- but what about the price? How do you determine whether the price they asking is reasonable or not. Omar: Well, obviously because I can do a rough math and compare it against the comps, right?  James: Okay. Okay. Got it. Got it. So you basically do [inaudible 31:59]  Omar: Oh, yes. Yes, because my point is why waste myself? Because look, the price could make sense, all the Brokers pictures we all know look fantastic. It looks like you're in like Beverly Hills, you know. So the pictures you know are kind of misleading, right? And the location might be really good but hey, you might go there and realize you know, the approach is really weird. Or for instance we were touring this one property and then 90% of I think the residents were just hanging out at 12:00 noon. James: Correct. Omar: Outside smoking.  James: At 12 o'clock. Wow. Omar: I said, well what the hell is this. Right? So my point is some things you only know when you do tour a property, there's no amount of videos and photos because the Broker isn't going to put a bad photo on.  James: Yes. Yes. Their Excel spreadsheets are going to tell you that, right?  Omar: Yes. James: So basically, you know, you have to go. What about what else do you look for when you do a property tour other than…  Omar: So you know when they're doing a property tour, like obviously I'm taking a lot of notes, I'm taking a lot of pictures, a lot of times the Broker will say one thing and then you kind of turn back around and ask the same question a different way just to kind of see. But what I also like to do is I also like to tour the property. On the property tour I like to have the current property manager and look I'm not stupid enough to say that the Broker hasn't coached the property manager. The broker has obviously coached the property manager that's his job. But a lot of times you'll realize that they haven't been coached enough. So if you ask the right questions the right way you can get some level of information. Again you have to verify everything and another trick I also figured out is. You should also try to talk to the maintenance guy and have him on the property tour and then take these people aside and so the Broker can be with somebody else. Ideally you should tour with two people. So if one guy takes care of the Broker and you take care of the property manager or the other way around. Because then you can isolate and ask questions, right? So especially if you take like say a maintenance guy and you ask him, hey man so what kind of cap X you think we should do? What do you think about the [inaudible 33:54]? A lot of times those people haven't been coached as much or at all. James: Correct.  Omar: And to be honest with you, man, we are in a high trust society. Most people aren't going to completely just lie to your face. They might lie a little bit but people aren't going to say red is blue and blue is purple. James: Correct. Omar: You know you can see that. You know when somebody says it, you can feel it. Come on. James: You can feel, yes. That's what I'm coming. You can actually see whether they are trying to hide stuff or not. But you're right, asking the maintenance guy is a better way than asking the property managers or even the other person is like leasing agent.  Omar: Yes. James: Who were assigned to you. They probably will tell you a lot more information. Omar: And that's why I feel like it's better to have two people like you and a partner touring. James: Okay. Omar: Because then different people, like one because look, and there is nothing wrong. The Broker has to do this. The Broker always wants to be with you to see every question is answered the way he wants it to be answered. So then one of your partners or you can tackle the Broker and the other person can tackle somebody else. James: Got it. Got it. So let's go to, okay so now you are done with the property tour. Now you're going to an [inaudible35:01] underwriting, right? So, how do you underwrite, I mean I want to talk especially about Jacksonville because it's a new market for you and you are looking at a new, how did you underwrite taxes, insurance and payroll because this-- Omar: Taxes was very easy to do. You talk to a tax consultant and you also see what historically the rate has been for the county. Right? James: Okay. Omar: But again, just because your new doesn't mean you don't know people. James: Correct. But how do you underwrite tax post acquisition? Because I mean in taxes is always very complicated-- Omar: No but taxes is harder, right? But [inaudible 35:32] in Florida it's easier because the sale is reported. They already know what price it is. James: So do they, so how much let's say how many percent do they increase it to after-- Omar: Typically in Duval County where we bought, it's about 80 to 85% [inaudible35:46]  James: Okay. Okay. That's it.  Omar: But the tax rate is low, right? Just to give you an idea the tax rate is [inaudible35:51] in Texas a tax rate is higher. So you understand there's lots of things and for instance in Florida there's an early payment discount. So if you pay in November, so it's November, December, January, February, right? So if you pay in November, which is four months before you should be paying you get 4% off your tax return.  James: Oh, that's really good. Omar: And if you pay in December you get 3% off, if you pay January you get well, whatever 2% off. In February you get 1% off. James: So what is the average tax rate in Florida?  Omar: I don't know about Florida. I know about Douval. It was like 1.81.  James: Wow, that's pretty low. Yes compared to-- Omar: Yes, but you also have to realize you have the percentage of assessed value is higher, right? Depending on which county you are in. You're in San Antonio and Austin where Bear county is just crazy. James: Bear Travis County, yes. Omar: Yes. Bear and Travis are just crazy but there are other counties in for instance Texas where the tax might be high but percentage of assessed value is really low.  James: Correct.  Omar: No, I mean it balances out. Right? My point is-- James: Yes. So but what about the, do you get to protest the tax and all that in the Duval County in Jacksonville? Omar: I think you can. No you were not, I think I know you can because we're going to do it. But you need to have a pretty good reason, right?  James: Okay. Okay. Omar: Right? And obviously look, you can show that yea, look I bought it for this price, but my income doesn't support this tax or this or that. I mean you have to hire the right people. I'm not going to go stand and do it myself.  James: So basically they do bump up the price of the acquisition, but it's very easy to determine that and 80 to 85% of whatever.  Omar; Yes. Yes. Yes. James: That's-- Omar: But look man, on the flip side is that when you go in, you kind of have a better control of your taxes in Texas where taxes can just go up and you [inaudible37:29]  James: Yes. Yes. You have no control in Texas. So we usually go very very conservative to a hundred percent. So which-- Omar: Look my point is it's good and bad, right? It depends where you are. So now people will say, oh the tax person knows all your numbers and like, yes but I can plan for it.  James: Yes, yes, correct. But it also gives you an expectation difference between buyer and seller because the buyer is saying this is my cap rate whereas the seller is saying, this is what, I mean the seller is going to say this is one of the cap rate whereas the buyer is going to say this is my cap rate will be after acquisition because-- Omar: Yes. Of course. James: So when it's smaller [inaudible38:03] between these two, the expectation is more aligned compared to in Texas because you know, it can jump up a lot and there's a lot of mismatch of expectations. Right? Omar: Well actually a deal in Houston, it's near Sugar Land and yesterday I was talking to this guy who wanted me on the deal and the other deal isn't going anywhere because the taxes were reassessed at double last year. Now he has to go to this the next week to fight it. Man, there's no way you're going to get double taxes in Florida or Georgia where there's our disclosure state, right? James: Correct. Correct, correct. So that's a good part because the buyer would be saying that's not my, the seller would be saying that's not my problem and buyer is going to say I have to underwrite that, right? So. Omar: I mean man, you can have a good case, right? Because it's not like somebody is saying something to you like, look man this is the law.  James: Yes, correct. So let's go back to Insurance. How do you underwrite Jacksonville Insurance? Because I know in Florida there is a lot of hurricane and all that-- Omar: [inaudible 38:58] just to give you an idea that is a complete myth because Jacksonville has only had one hurricane in the past eight years.  James: So is it lower than other parts of Florida? Or it just-- Omar: Yes. So the first it only depends where you are in Florida. Number one, right? Number two, it depends if you're in a flood plain or not, but that's in Texas as well. Right? And number three, it also depends a lot of times, well how many other claims have happened in your area? Right? Because that kind of for the insurance people that's kind of like a you know, how risky your area is quote unquote for them. So yes, so in Jacksonville, and apparently I did not need to know this information but we were told this information. Like the coast of Florida where Jacksonville is the golf coast is really warm where Jacksonville is, not golf courses on the other side, it's the Atlantic side. These are really warm waters relatively speaking. So apparently there's like some weather system which makes it really hard for hurricanes to come into Jacksonville. So that's why it's only had one hurricane in the 80 years.  James: So when you get your insurance quote, when you compare that to other parts of other markets-- Omar: Oh yes, Tampa was way higher, man. James: What about like Houston and Dallas?  Omar: I don't know about Houston because I haven't really lately looked at something in Houston. Right? So I can't really say about Houston and Dallas was maybe like say $25, $50 less maybe. James: Oh really. Okay.  Omar: Yes. It wasn't because that was a big question that came up for everybody. I was like look man, literally here's all the information and you don't even have to take my word for it because I'm giving you sources for all the information. Right? [crosstalk40:24] James: [crosstalk40:25] rate at different markets? Omar: Sorry? James: Are you talking about the insurance rate for-- Omar: Yes. Yes. Yes. Because a lot of guys from Chicago, I had a few investors they were like, but Florida has real hurricanes. I was like, yes but Jacksonville doesn't. James: Okay, got it. So you basically got a code from the insurance guy for the-- Omar: Oh yes man, I wasn't just going to go in and just put my own number that has no basis in reality.  James: Correct, correct. So, what about payroll? How did you determine the payroll?  Omar: So the payroll is pretty easy man. You know how much people get paid on per whatever hour. You know, you can have a rough idea how many people you are going to put on site and then you know what the load is, so then it gets pretty easy to calculate what your payroll is going to be. James: What was the load that you put in? Omar: So the load in this particular case was like 40% which is very high. James: Okay-- Omar: Yes it is pretty high. But the-- James: That is pretty high is very high. Omar: No. No. No. But hold on. They put our wages really low, right?  James: Oh really? Okay. Omar: Then you have got to [inaudible41:16] around. I was paying roughly the same that I was paying in [inaudible41:19]  James: Really? So why is that market…  Omar: I have no idea man, and I tried to check I asked multiple people. We did all that song and dancing. It's all kind of the same.  James: So you looked at the current financials and looked at the payroll? Omar: No. No, I was talking about my payroll would be going forward. I don't really care what the guy before me paid. Why do I care? James: So you got that from your property management?  Omar: Yes. Yes. Yes. And then I verified it with other property managers and blah blah blah blah blah checked everything, you know did all the due diligence. James: Got it. Yes. It's interesting that because 40% is really high. I mean usually-- Omar: Yes but [inaudible41:52] basis was really low. Like people salaries are really lower.  James: Is that a Jacksonville specific? Omar: I don't know what it is specifically. I think it's a Florida-based thing relatively speaking. But yes, that's what I mean. I thought it was kind of weird too. But then I mean I checked with other people.  James: So the deal that you're doing, I presume is a value ad deal. Is that right? Omar: Oh yes, all the deals-- James: How deep is the value at? I mean roughly at high level, how much are you putting in? Omar: Man, nothing has been touched for ten years. In fact, let's put it this way. We have enough land we checked with the city that we have enough land at the back to develop 32 more units.  James: That's really good because it's hard to find deals now, you know. Like ten years not touched, right? All deals are being flip right now, right? So within a couple of years. So that's good. That should be a really good deal. And what is the-- Omar: A hundred percent we could do basically.  James: What was your expense ratio that you see based on income divided by your expenses? I mean first-- Omar: Hold on man, let me just take it out. I don't even have to tell you. Hold on.  James: Okay. Omar: Why even bother you know?  James: Because usually like 50 to 55% is common in the [inaudible 42:59] industry. Omar: Oh no in basically in Jacksonville. You can get really lower expense ratios.  James: Okay.  Omar: It depends if it's submarket [inaudible43:05]  James: Yes, and I know like in Phoenix, I think it was like 45, or 40% which was surprising to me [crosstalk43:13]  Omar: [crosstalk43:13] this right now. Hold on let me open this model I can tell you right now. I don't want to give you something [inaudible 43:21] then variably one person's going to be like, I looked at your deal your numbers--Like, yes I'm sorry. I don't like have like numbers with second decimal points. Because people always do that to try to catch you. Right? And they're like, yes it's off by like $2 man. So hold on, divided by, oh yes so it was operating at 52 and yes first year we're going to be at 56 because you know we are repositioning-- James: Yes. First year of course, it will be higher-- Omar: And then we just go down.  James: Okay. Okay, okay that's interesting, that's good. So, and then as the income grows and your expenses stabilize, I think that expenses should be-- Omar: That's the only reason why the expense ratio goes down. Right? Because you're basically your top Line growth is way higher than your basically your expense growth.  James: Got it. Got it. Got it. Okay, that's really good. And you look for mid teens IRR. Omar: Mid teens IRR, a 10% cash flow and stabilized, all that jazz. James: Got it. Got it. Got it. Okay, that sounds good in terms of the underwriting. So-- Omar: Am I giving you all my secrets James?  James: Yes, absolutely. I will be very specific to Jacksonville. Right? I like to see you know, how each market is being underwritten and so that a business can learn and you know, it's very specific to people who do a lot of analysis on the market because I think that's important, right? You can't just go and buy any deal out of the gate right there, right? So it's good to know that. And these three things like payroll, insurance and taxes are very tricky when you-- Omar: Oh yes. James: --in different markets. So it's good to understand how does that county or that particular city or state determines their property taxes? Because we have different things in taxes here where I buy so it's good to understand. That's good. What is the most valuable value ad that you think that you're going to be doing to this deal? Omar: Oh well look man, because nothing had been touched. I think everything is valuable.  James: Okay. Omar: Hold on but that we lucked out also, right? There's a part of this is work and preparation. Or part of this is luck also. I mean you can't just take that portion away, right? James: Oh yes yes. Absolutely. Omar: All my hard work. Right? James: Absolutely. Absolutely. Omar: Because there's lots of people-- James: It's really hard to find that kind of deals nowadays, right? So how much was your rehab budget?  Omar: So rehab is about a million dollars. James: A million dollars. So let's say your million-dollar today become 500,000 right? I'm showing million dollar you're bringing into your exterior everything upgrade. Right? So let's say then-- Omar: Your exterior is roughly split 70/30. Interior [inaudible46:01]  James: Okay. Okay. So between interior and exterior which one do you think is more important?  Omar: I think if you only had a few dollars, exterior. James: Exterior, okay. Omar: Because people make a-- again this doesn't mean you should ignore the interior. Just to add a disclaimer. The point is, my point is a lot of times we as humans make decisions on first impressions. So if you come into a property and the clubhouse looks [inaudible 46:28] the approach looks [inaudible 46:29] the trees are trimmed, the parking lot is done nicely, then you go to an apartment which may, I mean I'm not saying it should be a complete disaster, but it might not be the best apartment in the world. You can overcome that. Right? But if you come in and the approach looks like you know, somebody got murdered here, right and the clubhouse looks like you know fights happen here, then no matter how good your indeed a renovation is, there's a good chance people will say well, I mean, it looks like I might get killed to just get into my apartment. James: Yes. Omar: Right? So it's the first impression thing more than anything else. It's like any other thing in life I feel. James: Absolutely. So let's say you are 300,000 for exterior. Right? Let's say that 300,000 become a 150,000, what are the important exterior renovation that you would focus on? Omar: So we did all the tree trimming because man, there's first of all living in Texas you realize how much a mystery still [inaudible 47:26] right? So first of all, tree trimming. Trees hadn't been trimmed for 10 years man. They were beautiful Spanish [inaudible 47:34] oak trees with Spanish moss on them. But they just hadn't been trimmed. James: Okay. Okay. Omar: So doing all the tree trimming, all the landscaping, then basically resealing the driveway and then making sure all the flower beds and all the approach leading up to all of that was done properly and the monument signage.  James: Okay, got it. So this is what you would focus on. And what about-- Omar: But also putting a dog park by the way. [inaudible 47:57] you said if my $300,000 budget went to 150 what I do and that's-- James: Yes. Dog park is not very expensive. Omar: Yes. But I'm saying it's stuff like dog park and [inaudible 48:06] to your outdoor kitchen, you're swimming pool, put a bigger sign in. You know [inaudible48:11]  James: Yes and dog park is one of the most valuable value ad because you spend less on it, but a lot of people want it, right? So for some reason, I mean people like pets and all that. So what about the interior? You have 700,000, how much per door are you planning to put for each-- Omar: So roughly say I can do the math roughly. There was six something. Right? So and James: [inaudible48:32]  Omar: Yes, so we're not even-- so we're planning on doing roughly say 75% of the unit's right? So I think that's  104 units if you go 700 divided by 104, roughly we were going to be around $6500 per unit. James; Okay. That's a pretty large budget.  Omar: Yes, man you should see some of these units man, I was like why God how do people even live here?  James: Yes. Omar: Because it's a very affluent. I mean relatively middle class, upper middle class submarket, right? They just haven't done anything.  James: So are you going to be using the property management company to do the renovations? Omar: They have a very fantastic reputation and they were highly recommended a few of our other contacts also use them so that's why. James: Okay. Omar: Because we were seeing problems with a lot of other people's property managers. Either they didn't have the right staff or didn't have the right professionals and this and that indeed these guys were properly integrated across the value chain. James: So at high level, what are you doing on the interiors? Omar: High level Interiors, it's a typical, [inaudible 49:29] back splashes, change the kitchen appliances, countertops, medicine cabinets, lighting packages. The other small little thing which we realized was a very big value add but was cost us less than two dollars and fifty cents per outlet was the [inaudible 49:45] Yes it was the biggest value add-- James: Yeah, biggest value add; that is the most valuable value add. Right? Omar: Yes. James: Like I've never done it in any of my properties but I was telling my wife, Shanti and I said, hey, you know, we should do these, you know, because it's so cheap and a lot of people, a lot of-- Omar: Yes, it was like two dollars or whatever, it was cheaper than that and people cannot get over the fact that they have so many USB out, I was like, everywhere there is a plug there's got to be a USB outlet. James: So do you put for every outlet? The USB? Omar: Not for every, I was dramatizing but I mean for the ones that are accessible say around the kitchen, living room. James: Okay interesting I should steal that idea.  Omar: I didn't invent the idea go for it man.  James: Yes. Omar: [inaudible 50:25] USB port so take it.  James: I know a few other people who do it mentioned that too but I'm not sure for some reason we are not doing it. But that should be a very simple-- Omar: People love it man. And I don't blame them man. Like it's freaking aggravating sometimes, you know, when you got to put like a little thing on top of your USB and then you plug it in. James: Yes, imagine how much you know, this life has changed around all this electronic [crosstalk50:46] devices and all that. So interesting. So did you get a lot of advice from your property management companies on how to work and what are the things to renovate and all that? Or how-- Omar: Yes, and no because we had been developing a relationship with them six months prior to this acquisition. So we had a good relationship with not just them but with other vendors in the market. And especially luckily for us the regional we have for this property right now, actually in an earlier life and with an earlier employer had actually started working on this asset 15 years ago as a property manager. This is sheer dumb luck. This is not by design. So she really knew where all the [inaudible51:24]  James: Yes. Yes, that's interesting. Sometimes you get people who have been in the industry for some time. They say yes, I've worked on that property before they, which is good for us because they know. Got it. Got it. So let's go to a more personal side of things. Right? So you have been pretty successful now and you're doing an apartment syndication now and all that, right? So why do you do what you do? Omar: James, I know a lot of people try to say they have a big "why" and they have a really philosophical reason James, my big "why" is James, I really like-- my lifestyle is very expensive James. So all these nice suits. James: Okay. Omar: All these nice vacations man, they're not cheap. Okay. Real estate is a pretty good way to make a lot of money man.  James: Okay.  Omar: I want to give you a philosophical reason, I know a lot of people say they have the Immigrant success story, Oh I came from India or I came from Pakistan, I ate out of a dumpster, I worked in a gas station and no I had five dollars in my pocket, and everybody tells me that and I say, okay what did you do man? I don't know did you just swim from India, you had two dollars in your pocket you need to get on a plane buddy.  James: You can't be here, right?  Omar: No Indian shows up to America and [inaudible 52:37] Are you kidding me? All the Indians are educated. Everybody's an engineer or doctor or lawyer. You kidding me. He shows up with five dollars, man. So no I didn't show up to this country with five dollars James. I didn't eat out of a dumpster. I didn't work at a gas station, and I'm very grateful for that. Right? I've always had a very good lifestyle and I don't need to have a philosophical reason to say I'm doing this to, I don't know, solve world hunger or poverty or whatever. I have a pretty good lifestyle. I'm very grateful and very blessed. And the biggest thing in my life is being that, look I moved to Texas man I didn't know anybody. Right? But people have been so generous, people have been so kind to me. I'm not just saying investing with us, which is very nice, which I'm very grateful but also connecting me with other people, right? Hey, hey just opening a door. They didn't have to do it, but people have been so generous and so kind, So I quite enjoy the fact man that it's a good way to  make an honest living, right? I have a very expensive lifestyle that needs to get financed and that's just the way it is. And I didn't show up with two dollars in my pocket. So I'm very  grateful for that.  James: That sounds good. So, can you give some, do you have any daily habits that you think makes you more successful? Omar: No man, I just get up every day and I try to put one step after the other but consistently work in the same direction. So every day I'm reaching out to people and that's a lot of small little tasks. First of all, I never like getting up early but I've always known the value of getting up early. So I get up in the morning, right? 5:45, 550 ish I kind of up. Most days not always, right? I read a lot of books man. I reach out to Brokers all the time. I'm always looking at deals, coordinating with my team to do stuff and a lot of these like you do in your business there are a lot of small little tasks there's no one task that is, oh my God, you do this and [inaudible 54:33] But it's just small little tasks that you do daily, every single day in and day out. So even if you're feeling sick, even if your head is hurting you just do it.  James: So can you give a few advice to people who want to start in this business? Omar: Regularly communicating. So in my particular case, I don't know like when you're starting out specifically everybody has a different pain point, right? So in my particular case for instance on a daily, I can't say about weekly I can tell you, staying in touch with my marketing people, emailing Brokers, emailing investors, following up with people I've had conversations with, especially leads, you know people who use this stuff. A lot of word of mouth and just doing the stuff over and over and over. But it's not like I have a 9:00 to 5:00 now, right? It's not like oh Friday, I'm done and Saturday, Sunday I'm relaxing. I mean I could relax on a Monday now, but Saturday and Sunday I'm working. Right? So that's a good-- but it's like the same as you were doing with your business, right?  James: Yes. Absolutely. Absolutely. Well, Omar it has been really a pleasure to have you on this podcast. Is there anything that you have never mentioned in other podcasts that you want to mention? Omar: No James, I don't want to go down that route man.  James: Is there something that you want to tell, you know people who listen to you that you think that would be a good thing to talk about? Omar: Yes, what I want to tell people is listen, I don't think you should take words of wisdom for me. But what I should tell people is guys, honestly, I don't l

In this Episode of the #AskPJBraun Podcast, PJ and Josh start the show with a story about Blackstone and SARMs, then they get into questions regarding integrating OTC supplements with HRT, Keto, and more. Towards the end there's some information about ISO-CREAM and new apparel. Submit your questions to askpjbraun@blackstonelabs.com Subscribe on iTunes, Soundcloud, Google Play, Stitcher, and more! 10:07 - Phillip - Any advice for training shoulders while avoiding long-term injury? 11:20 - Jasmine - Is it possible to maintain a Keto diet as a long distance runner? 14:20 - Jonathan - As someone just starting out, do you have any advice on what will/wont work for me in the gym? What supplements should I take? 17:46 - Tyler - Just like you I'm a UCONN Alumni. How did it affect your training and nutrition? Did you have any mentors at UCONN? 21:26 - Sway - Lost 10lbs during BeatPJ, looking to drop another 5lbs before clean bulking. How should I adjust my training/diet? 22:34 - James - Can/should I take Cialis and Citrulline in combination as a PWO? 23:59 - Ruben - One of your previous diets had you doing 300g of carbs in one day, then cutting down to 25g/day for a week while pulling all the fats. Can you go into more detail on this diet? Also, Should I incorporate creatine or recomp into the BeatPJ Fat Loss diet? 26:49 - Beau - Trying out Anavar for the first time. Can you give me advice on dosage and timing? 28:19 - Mike - How much would you charge for an outline for someone looking to drop 20-25lbs while on deployment in PR for disaster relief? 30:56 - Martin - Would I benefit from adding Chosen1 to an HRT protocol? 33:08 - Dragon Izumi - I'm on the Elite DHEA stack and I know I can get better results from double/triple dosing, but I have a question about AIs. I know Eradicate and Metha-Quad both contain Arimistane. Is it necessary to take both since they have a similar dosage? 43:12 - News and Announcements (ISO-CREAM, New Apparel News)

Another episode of tales at sea. Following on from the mysterious tales of the Dark Gentleman, we find another curious passenger on board…although will they turn out to be any less disturbing to the crew? Music: Creepy — Bensound.com.   Andrew: Here are some Totally Made Up Tales, brought to you by the magic of the internet. This week: The Stowaway. James: Martin, the First Mate, thought he knew everything about this ship, as First Mates really ought to. Andrew: It was not the largest ship the world had ever seen, but nevertheless it contained many nooks and crannies and corners that men who had served on it across journeys of several months had still not managed to explore. James: Martin, however, knew them all. But something was not quite right. Andrew: There was a strange energy on board the ship, that was quite different to the masculine peace that settled aboard the boat once the shore was safely left behind. James: It reminded him of the one or two times when they'd transported families from Southampton across to the New World looking for a new life. Andrew: It was not as strange as the time when the famous occultist traveled with them and disappeared halfway across the ocean, but it was still something not quite right. James: Martin didn't like it when things weren't quite right, it upset the smooth running of the ship and it made the men grumble, and that was one of the worst things to contend with. Andrew: He decided that he would determine for himself whether there was anything untoward going on, on the ship, but he would do it in a subtle and determined manner. James: He drew up a schedule where he could regularly walk every turn and every corner of every deck, both above and below. Andrew: He began his exploration and very soon began to have an even more acute sense that there was something either just ahead of him or just behind him, but it was as if, whenever he turned his head, the thing it was that was following him or that he was following — and he could not be sure which it was — had disappeared, and he was left once more alone. James: He had first had the sense a day or two out of port, and it continued for a full week, gradually making him more and more frustrated, until one day, Timothy, the old cook, came to him. Andrew: Timothy was a grumpy man, perpetually red in the face with irritation, and missing his right leg. He had adapted his kitchen galley successfully so that he could navigate his way around, but in all other areas of the deck he moved on traditional sailor's wooden crutches. James: He came to Martin with a complaint about theft. Andrew: An entire barrel of biscuits, which he had been intending to use later that week, had disappeared from the kitchen, lock, stock, and barrel. James: Martin knew that none of the men would have tried to secrete an entire barrel anywhere else about the ship, it was a ridiculous and foolhardy notion that you could even get away with it, and so he continued his pacing about the decks until he discovered the barrel, now empty, in one of the smaller holds. Andrew: Scattered on the floor around the barrel here and there were biscuity crumbs. James: Martin spent some time checking the rest of the hold, looking behind the crates and boxes, and underneath the tarpaulins, but he could not find any indication, other than the barrel and the crumbs, that anything was amiss. Andrew: Later that day, in the evening, he sat down with the Captain for dinner, and the Captain turned to him with his customary question and said, "Well then, First Mate, what are the news?" James: He recounted how Timothy had come to him and his investigation and what he'd discovered, and the Captain looked at him with suspicion crossing his face, "Have you felt a presence onboard ship?" he asked. Andrew: "Well sir, as it happens," Martin replied, "I have felt a rather different atmosphere on the ship than usual… it has seemed that there has been something here." "What do you make of… this?" said the Captain. He opened the draw of his work desk and took out a piece of paper covered in a strange childish scrawl, and laid it out in front of the First Mate. James: "Was that? It looks like it was drawn by a child, sir." Andrew: "Yes, it could be a child or possibly a madman, or I'm not entirely sure. I dismissed it entirely of course, read it through for me." James: "I can't make it out at all, sir. It doesn't seem to be written in English, or indeed any other language as I recognise." Andrew: "Yes, I thought that," said the Captain. "But here, look, when you hold it up to a mirror, now try." James: "Oh my word," said Martin. "You're right. It's a diary." Andrew: "Yes, that's right. A page from a diary. A diary that's been kept while on this ship. I found it fluttering along the passage outside the door to the hold." James: "Do you really think so sir? We have a stowaway?" Andrew: "I think we should consider the possibility. Nothing has been quite right on this ship since the time that mysterious man disappeared after saving us from pirates, and I wonder if the forces of the occult have returned to haunt us." James: "I shall organise the men to do a thorough inspection, sir. I'm sure we will catch them." And indeed Martin was sure that he would catch the stowaway. Andrew: Duly assembled, the men set out in groups of two around the various passages of the ship in search of the mysterious diary writer. James: Creeping down the passageways, hunting through the holds, peering into the dark corners, the men gradually covered every inch of the ship. Andrew: Each pair in their turn, returned from their searching to the main deck to report to the First Mate, and came back empty handed. Not a sign, not a scrap, not the slightest clue as to the writer of the diary had been found. James: Two by two, Martin ticked them off in his head until there were five pairs still out, then four, then three, then two. The last pair that had gone down into the holds below reported that they could see nothing out of the ordinary, and he was just wondering how the other pair was getting along when the sound of a struggle came from the cabins that they had been searching. Andrew: The cries and thuds muffled by the several layers of decking nevertheless could be heard and stirred an immediate call to action in the First Mate. He grabbed two of the pairs nearest him, his trustiest men, and set off down the hatches to go and investigate for himself. James: He burst in, the men hard behind him, on an amazing scene. Andrew: Inside the passengers' cabin, standing quietly and unassumingly in the centre of the passenger cabin was a small elfin faced girl with close cropped hair, beaming at them with her hands on her hips. Lying on the ground of the cabin in front of her were the two burly sailors, out for the count. James: A thought flashed through Martin's mind, wondering how on each how such a small child had managed to overcome such large men, but he was too well trained to voice this concern. "Seize her!" he cried. Andrew: The men who had come down with him and to whom his order was addressed looked at the girl, looked at their fallen comrades, looked nervously at each other, and hesitated upon the threshold. "Didn't you hear me, men?" said the First Mate, "in and seize her!" James: Greg looked at Harry, and Harry looked at Greg, and neither of them wanted to be the one to make the first move. So Martin reached forward and grabbed the girl by the scruff of the neck. Andrew: At once, she burst into tears, and paying no heed to her bawling, Martin dragged her through the passageway, dragged her up onto the deck, into the Captain's cabin, where he threw her roughly to her knees in front of the ship's commander. James: "Good work, Martin," said the Captain. "And what are you, eh?" Andrew: The little girl looked at him, sobbing, wide eyed, and said, "oh please sir, please, have mercy on me." James: Martin nudged her with his foot. "Captain asked you a question," he said. Andrew: "Oh, oh, I am ..." The girl took a deep breath in and looked directly at the Captain imploringly and said, "I am but a poor child, sir. My father was a sailor of many years standing and spent his life at sea and one day in a tragic accident was killed when his ship caught fire. My mother was unable to support herself, me and my brother, and my brother signed up to sail to the New World in the Navy and I decided that the only way forward for me was to follow him and so I ended up here on the first ship I was told was sailing to the New World and I hid in the hold." James: The Captain looked at her sternly. "I cannot just let stowaways use my ship as free transport between the continents." He said. "We cannot throw you overboard, we're in the middle of the sea, but if you are to remain here, you must work to earn your keep." Andrew: "We have no use for you on deck, this is man's work requiring a man's strength, but the kitchen is short of a boy, you shall serve there for the remainder of the voyage. Go, at once. You will be directed by Timothy the cook." James: And so Martin took her down to the galley, and introduced her to Timothy, and Timothy immediately put her to work scrubbing the Brodie stove to keep it clean or at least as clean as Timothy deemed necessary for basic sanitary food production purposes. Andrew: With a dedication and an application and a thoroughness that seemed uncharacteristic for someone that looked outwardly so delicate, the little girl scrubbed at the stove, scrubbed and polished and shined. Bucket after bucket of dirty water was emptied over the rail into the sea, until the Brodie stove was as good as new. She turned to the cook and said, "sir, I have scrubbed the stove. What would you have me do next?" Tim looked at her and said, "sir? I'll have no sir in my kitchen! I'm Tim the cook, and what's your name?" James: In a small voice, Elsie introduced herself and told her story of how she had come to be on the boat. In return, Timothy gave her a history of the vessel, including some of the rare goods that they had transported and the confusing and perplexing tale of the Master of the Dark Arts, who had recently bought passage with them to the New World. Andrew: Over the days that followed, Tim and Elsie built up an extraordinary rapport. The cook, who was usually one of the grumpiest and least sociable fellows aboard the ship, had taken a shine to this little girl, and she to him. The atmosphere in the kitchen changed from one of shouting and swearing to one of laughter and camaraderie, and the quality of the food rose remarkably as a result, raising the morale of the rest of the crew. James: Over dinner one night at the Captain's table, the Second Mate, Will, turned to the First Mate, Martin, and mentioned sotte voce that perhaps they should have a stowaway on every voyage. Andrew: They laughed, looking at their empty plates wiped clean by freshly baked bread, when suddenly they were interrupted by a cry from the lookout tower. "Ship ahoy!" James: Coming onto the deck, the Captain looked at the lookout, who was pointing hard astern. Behind, somewhere in the darkness, there was a light. Andrew: A half a mile off or so it seemed, there was a ship shaped object bobbing backwards and forwards with the motion of the waves with an eerie glow that seemed almost otherworldly. James: Slowly, the shadowy shape was gaining on them. Andrew: The Captain summoned the crew to their action stations, called for the sails to be hoisted full up, and observed the mysterious shape still gaining on them. James: The faster they went, the faster it pursued. As the spectre came closer, the lanterns from their own ship, and the light inside it, gradually made the shape clearer. Andrew: The First Mate turned to the Second Mate and, furrowing his brow, said, "this is going to sound like a very strange thing to say, but does that look to you like a ship made out of smoke?" James: "Not any ship," said the Captain. "That is the ship that we saw burn to the waterline." And it was true, the superstructure looked identical, the rigging, the position of the masts and sails. It was the pirate ship that had chased them so recently. Andrew: And as it came closer, the mysterious glow that had revealed it when it was at a distance to the lookout resolved into the flickering embers of the final burning pieces of wood floating on the water underneath the smoky shape. James: "Can we even fight that, sir?" asked the Second Mate. Andrew: "Do we need to fight it, sir?" said the First Mate. "What's its intention? It's just smoke." James: "It's evil," said the Captain. "Prepare the cannon." Andrew: "How do you know it's evil, sir?" said Will. James: "I just have a feeling," said the Captain. "The feeling that evil has been dogging us ever since that ship burned." Andrew: The cannon trundled forward on its heavy wheels to the ship's rail and was being loaded by the men responsible for it. They turned to the Captain and said, "Ready to fire, sir", and the Captain said, "Very well, fire at —" But before he could finish the command, a small tug on his elbow revealed that Elsie had come up to the deck and was looking at him with a serious face. "Please sir," she said, "don't fire on the vessel, it's me that it's come for. Please let me go and speak to it." James: Agog, the Captain let her pass. Elsie walked right up to the rail and held her hand out towards the ship that was now only a few dozen feet away. Andrew: Out of the swirling mass of smoke that made up the shape of the ship, with its amorphous and shifting edge, there seemed to solidify an additional shape of a man standing opposite Elsie, face to face, where the rail of that ship would be if it had a rail, and it seemed to that an arm came out from his smoky body and extended across the water and gently, gently, gently made its dark tendrily way to her hand until it touched it. James: As soon as it did, the smoky ship started to dissolve and waft away on the fresh breeze coming in from the ocean behind it. "Daddy," she called out gently. And in response, a deep thrumming sound seemed to make the word "Elsie" from across the water. Andrew: With the contact between the two having been made, the form of the smoke ship dissolved and it became once more the mists that roll over the seas at night and ceased to have any shape or solidity. James: And as it dissolved, so too did Elsie's form gradually fade away until the Captain, the First and Second Mate and the crew members could see plain through her. Andrew: As she was on the verge of disappearing before their very eyes, she turned looking at the crew in turn and taking them all in with her penetrating gaze, finally her eyes rested on the Captain and she said, "thank you" — and vanished. There came from the hatch leading down to the galley a sobbing which caused the First Mate to turn and there to his surprise he saw Tim with his face buried in his cook's apron, uncharacteristically emotional. James: The crew were quiet for the rest of the journey, less banter and less grumbling than usual. In the Captain's cabin, a number of hushed conversations over dinner attempted to discern just what Elsie had been and where she had gone — but without coming to any conclusions. Andrew: The only thing that everybody could agree on was that the quality of the food had improved, and from that day forward it remained the best on the high seas.